<PAGE>
August 28, 1996
Dear Shareholder:
We are pleased to provide this Semi-Annual Report for INVESCO Advisor Funds.
We hope that you will take a few moments to review this report which will give
you some additional insight into the market's performance so far this year as
well as how INVESCO manages your money.
As you will recall, effective January 15, 1996, the EBI Funds, Inc., became
known as INVESCO Advisor Funds, Inc. The INVESCO name continues to become more
recognized by individual and institutional investors alike. Also the term "Ad-
visor" underscores the important role played by brokers, planners and consul-
tants. Completely unchanged are the crucial elements for successful investing:
the portfolio managers, investment disciplines and fund objectives.
Even after an exceptionally good year in 1995, the stock market continued on
its upward climb in the first half of 1996 in spite of rising interest rates.
The S&P 500 has risen in eighteen of the last nineteen months (through June
1996). The impetus for higher stock prices has come from record setting
inflows to mutual funds, better than expected earnings, and a rising demand
for U.S. equities from abroad. However, as the market has risen this year, so
has the volatility. The market's increased volatility reflects the constantly
changing forecasts for the economy, inflation and the consequent Fed response
to the new numbers. The INVESCO Advisor Funds participated nicely in the ris-
ing equity markets.
Regardless of the asset class or fund, it is INVESCO's goal to provide com-
petitive results with below market levels of volatility. This philosophy is in
keeping with our management of a number of large, risk-averse pension plans as
well as conservative individual investors. The INVESCO Advisor Flex Fund, our
"flagship" asset allocation discipline, continued to benefit from its
overweighted position in stocks (61% at June 30th). The 4.8% return for the
six months was in line with the Lipper Balanced Average of 5.1%. The total re-
turn for the INVESCO Advisor MultiFlex Fund also continued to be strong--up
5.4% year-to-date. The second quarter saw solid performance in many equity
benchmarks instead of merely large capitalization stocks which has dominated
results since 1994. A broader equity market plays to the strength of the
MultiFlex discipline. At June 30th, the MultiFlex target allocation was 78% in
equity asset classes: international stocks, small capitalization stocks, large
capitalization stocks and real estate securities.
The INVESCO Advisor Equity Fund produced a total return of 7.7% which lagged
the 10.1% return of the S&P 500. Within the S&P 500, the higher growth compa-
nies and smaller companies produced the highest returns rather than the larg-
er, higher quality value stocks which INVESCO favors. We continue to maintain
a conservative bias in the fund which relative to the market has a higher div-
idend yield, lower price/earnings ratio and higher return on equity. This
should help the portfolio weather a difficult market. The only negative re-
turns for the six month period were found in the bond market where rising in-
terest rates caused price declines. The total return for the INVESCO Advisor
Income Fund was -4.8% for the six month period, but +1.8% for the one year pe-
riod ended June 30, 1996.
Our more specialized funds fared well in the first half of 1996. The INVESCO
Advisor International Value Fund was up 8.5%, almost double the EAFE (Europe,
Australia, Far East) Index. Our emphasis is on stock selection as opposed to
country allocation, and we focus on being well-diversified by both country and
industry sector in order to reduce overall risk. The INVESCO Advisor Real Es-
tate Fund was up 5.2%. INVESCO utilizes both fundamental real estate analysis
as well as security analysis in the Real Estate Fund. We carefully evaluate
each REIT's management, focusing on those which specialize in a particular
property type or region.
We have recently added two new services which will help you stay abreast of
your INVESCO Advisor accounts. Effective June 30, 1996 we are offering consol-
idated mutual fund statements which can combine related accounts on a single
statement. Additionally, we are simplifying your tax paperwork by providing
your cost basis on mutual fund redemptions.
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 Funds, Inc.
STATEMENT OF INVESTMENT SECURITIES
June 30, 1996
(unaudited)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR FLEX FUND
COMMON STOCKS 61.51%
BASIC MATERIALS 2.20%
Dow Chemical Co. ....................................... 50,000 $ 3,800,000
Imperial Chemical Industries PLC, ADR .................. 40,000 1,965,000
Westvaco Corp. ......................................... 135,000 4,033,125
------------
9,798,125
------------
CAPITAL GOODS 5.48%
Boeing Co. ............................................. 60,000 5,227,500
COMPAQ Computer Corp.* ................................. 100,000 4,925,000
General Electric Co. ................................... 75,000 6,487,500
Lockheed Martin Corp. .................................. 70,000 5,880,000
Snap-On Tools Corp. .................................... 40,000 1,895,000
------------
24,415,000
------------
CONSUMER CYCLICAL 10.06%
Deluxe Corp. ........................................... 135,000 4,792,500
Ford Motor Co. ......................................... 150,000 4,856,250
Gannett Co., Inc. ...................................... 50,000 3,537,500
K mart Corp.* .......................................... 250,000 3,093,750
Liz Claiborne, Inc. .................................... 100,000 3,462,500
McDonald's Corp. ....................................... 110,000 5,142,500
Penney (J.C.) Co., Inc. ................................ 85,000 4,462,500
Reebok International, Ltd. ............................. 150,000 5,043,750
Rite-Aid Corp. ......................................... 75,000 2,231,250
Tandy Corp. ............................................ 60,000 2,842,500
V.F. Corp. ............................................. 90,000 5,366,250
------------
44,831,250
------------
CONSUMER STAPLES 14.09%
Abbott Laboratories .................................... 100,000 4,350,000
American Brands, Inc. .................................. 110,000 4,991,250
American Home Products Corp. ........................... 100,000 6,012,500
Anheuser-Busch Cos., Inc. .............................. 70,000 5,250,000
Columbia/HCA Healthcare, Inc. .......................... 100,000 5,337,500
Fleming Cos., Inc. ..................................... 100,000 1,437,500
Heinz (H.J.) Co. ....................................... 150,000 4,556,250
Lilly (Eli) & Co. ...................................... 90,000 5,850,000
Mylan Laboratories, Inc. ............................... 250,000 4,312,500
Philip Morris Cos., Inc. ............................... 65,000 6,760,000
Schering-Plough Corp. .................................. 100,000 6,275,000
SuperValu, Inc. ........................................ 60,000 1,890,000
Unilever N.V. .......................................... 40,000 5,805,000
------------
62,827,500
------------
</TABLE>
<TABLE>
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<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED 4.55%
Hanson PLC, ADR ........................................ 300,000 $ 4,275,000
Minnesota Mining & Manufacturing Co. ................... 70,000 4,830,000
National Service Industries, Inc. ...................... 80,000 3,130,000
Phelps Dodge Corp. ..................................... 65,000 4,054,375
Textron, Inc. .......................................... 50,000 3,993,750
------------
20,283,125
------------
ENERGY 3.36%
Amoco Corp. ............................................ 50,000 3,618,750
Repsol AS, ADR ......................................... 150,000 5,212,500
Royal Dutch Petroleum Co. .............................. 40,000 6,150,000
------------
14,981,250
------------
FINANCE 11.59%
American General Corp. ................................. 100,000 3,637,500
Dun & Bradstreet Corp. ................................. 70,000 4,375,000
First Chicago NBD Corp. ................................ 150,000 5,868,750
First of America Bank Corp. ............................ 100,000 4,475,000
First Union Corp. ...................................... 50,000 3,043,750
Marsh & McLennan Cos., Inc. ............................ 50,000 4,825,000
Morgan Stanley Group, Inc. ............................. 110,000 5,403,750
NationsBank Corp. ...................................... 75,000 6,196,875
Ohio Casualty Corp. .................................... 120,000 4,170,000
SAFECO Corp. ........................................... 150,000 5,306,250
Wachovia Corp. ......................................... 100,000 4,375,000
------------
51,676,875
------------
TECHNOLOGY 3.73%
Computer Associates International, Inc. ................ 80,000 5,700,000
Hewlett-Packard Co. .................................... 50,000 4,981,250
International Business Machines Corp. .................. 60,000 5,940,000
------------
16,621,250
------------
TRANSPORTATION & SERVICES 0.97 %
Browning-Ferris Industries, Inc. ....................... 150,000 4,350,000
------------
UTILITIES 5.48%
Edison International Corp. ............................. 350,000 6,168,750
General Public Utilities Corp. ......................... 160,000 5,640,000
NYNEX Corp. ............................................ 90,000 4,275,000
Telefonica de Espana, ADR .............................. 75,000 4,134,375
Telefonos de Mexico, "L", ADR .......................... 125,000 4,187,500
------------
24,405,625
------------
TOTAL COMMON STOCKS
(Cost $198,257,775) ................................... 274,190,000
------------
PREFERRED STOCKS 0.96 %
TRANSPORTATION & SERVICES 0.96%
Illinois Central Corp. (Cost $3,843,151) ............... 150,000 4,256,250
------------
TOTAL COMMON & PREFERRED STOCKS
(Cost $202,100,926) ................................... 278,446,250
------------
</TABLE>
2
<PAGE>
<TABLE>
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<CAPTION>
Shares or
Principal
Description Amount Value
- ---------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR FLEX FUND (CONTINUED)
FIXED INCOME SECURITIES 36.09%
U.S. GOVERNMENT OBLIGATIONS 29.63%
U.S. TREASURY NOTES
6.750%, 02/28/1997 ..................................... 8,000,000 $ 8,055,000
6.125%, 03/31/1998 ..................................... 10,000,000 10,006,250
5.875%, 08/15/1998 ..................................... 5,000,000 4,970,310
7.125%, 10/15/1998 ..................................... 5,000,000 5,100,000
8.875%, 02/15/1999 ..................................... 11,250,000 11,946,094
6.750%, 06/30/1999 ..................................... 5,000,000 5,059,375
6.375%, 07/15/1999 ..................................... 10,000,000 10,021,870
8.750%, 08/15/2000 ..................................... 14,000,000 15,159,368
7.875%, 08/15/2001 ..................................... 9,000,000 9,531,558
7.500%, 05/15/2002 ..................................... 10,000,000 10,459,370
6.500%, 08/15/2005 ..................................... 10,000,000 9,850,000
9.375%, 02/15/2006 ..................................... 10,250,000 12,162,260
9.250%, 02/15/2016 ..................................... 11,000,000 13,605,625
7.250%, 08/15/2022 ..................................... 6,000,000 6,148,122
------------
132,075,202
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $130,476,951) .................................... 132,075,202
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 4.02%
FEDERAL HOME LOAN MORTGAGE CORP. GOLD
6.500%, 06/01/2001 ..................................... 4,000,000 3,961,252
8.000%, 10/01/2010 ..................................... 3,231,311 3,292,910
------------
7,254,162
------------
FEDERAL NATIONAL MORTGAGE ASSN.
6.500%, 06/01/2011 ..................................... 3,029,999 2,927,737
------------
GOVERNMENT NATIONAL MORTGAGE ASSN.
6.500%, 10/15/2008 Pool #354668 ........................ 1,544,040 1,497,237
7.000%, 10/15/2008 Pool #372807 ........................ 1,377,411 1,362,776
6.000%, 11/15/2008 Pool #365945 ........................ 1,620,660 1,538,614
7.500%, 03/15/2026 Pool #417287 ........................ 3,383,575 3,333,853
------------
7,732,480
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $18,263,191) ..................................... 17,914,379
------------
CORPORATE BONDS 2.44%
FINANCE 0.89%
Associates Corp., North America,
4.750%, 08/01/1996 ..................................... 1,500,000 1,499,057
NationsBank Corp., 5.375%, 04/15/2000 ................... 1,550,000 1,479,134
National City Corp., 7.200%, 05/15/2005 ................. 1,000,000 988,965
------------
3,967,156
------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL 0.90%
ConAgra, Inc., 9.750%, 11/01/1997 ....................... 1,000,000 $ 1,041,221
Ford Motor Co., 7.500%, 11/15/1999 ...................... 750,000 766,336
Rockwell International, Inc.,
6.625%, 06/01/2005 ..................................... 1,500,000 1,449,054
Wal-Mart Stores, Inc.,
5.500%, 03/01/1998 ..................................... 750,000 740,520
------------
3,997,131
------------
UTILITIES 0.65%
Pennsylvania Power & Light Co.,
6.875%, 02/01/2003 ..................................... 1,000,000 981,718
Pennsylvania Power & Light Co.,
6.550%, 03/01/2006 ..................................... 1,900,000 1,780,465
Union Electric Co.,
6.750%, 10/15/1999 ..................................... 150,000 150,166
------------
2,912,349
------------
TOTAL CORPORATE BONDS
(Cost $11,226,800) ..................................... 10,876,636
------------
TOTAL FIXED INCOME SECURITIES
(Cost $159,966,942) .................................... 160,866,217
------------
SHORT TERM INVESTMENTS 1.44%
United Missouri Bank, Money Market Fiduciary 4.040% .... 6,437,829 6,437,829
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $6,437,829) ...................................... 6,437,829
------------
TOTAL INVESTMENTS
(100.00%) (Cost $368,505,697#) ......................... $445,750,296
============
INVESCO ADVISOR EQUITY FUND
COMMON STOCKS 99.71%
BASIC MATERIALS 3.63%
Akzo Nobel N.V., ADR .................................... 13,800 $ 824,550
Great Lakes Chemical Corp. .............................. 10,000 622,500
Imperial Chemical Industries PLC, ADR ................... 33,200 1,630,950
Westvaco Corp. .......................................... 45,000 1,344,375
------------
4,422,375
------------
</TABLE>
3
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR EQUITY FUND (CONTINUED)
CAPITAL GOODS 9.03%
Boeing Co. .............................................. 28,400 $ 2,474,350
Emerson Electric Co. .................................... 12,000 1,084,500
Lockheed Martin Corp. ................................... 35,860 3,012,240
Pitney Bowes, Inc. ...................................... 25,700 1,227,175
Raytheon Co. ............................................ 39,400 2,034,025
WMX Technologies, Inc. .................................. 36,000 1,179,000
------------
11,011,290
------------
CONSUMER CYCLICAL 15.11%
Circuit City Stores, Inc. ............................... 54,000 1,950,750
Cooper Tire & Rubber Co. ................................ 52,000 1,157,000
Disney (Walt) Co. ....................................... 30,400 1,911,400
Donnelley (R.R.) & Sons Co. ............................. 30,000 1,046,250
Ford Motor Co. .......................................... 45,715 1,480,023
Gannett Co., Inc ........................................ 21,000 1,485,750
Maytag Corp. ............................................ 86,900 1,814,038
McDonald's Corp. ........................................ 53,400 2,496,450
Penney (J.C.) Co., Inc. ................................. 40,000 2,100,000
Russell Corp. ........................................... 56,000 1,547,000
Shaw Industries, Inc. ................................... 109,000 1,430,625
------------
18,419,286
------------
CONSUMER STAPLES 27.19%
Abbott Laboratories ..................................... 50,400 2,192,400
American Home Products Corp. ............................ 42,000 2,525,250
Anheuser-Busch Cos., Inc. ............................... 23,200 1,740,000
Archer-Daniels-Midland Co. .............................. 100,000 1,912,500
Columbia/HCA Healthcare, Inc. ........................... 46,800 2,497,950
Giant Food, Inc., Cl. A ................................. 59,000 2,116,625
Heinz (H.J.) Co. ........................................ 58,350 1,772,381
Kimberly-Clark Corp. .................................... 20,000 1,545,000
Lilly (Eli) & Co. ....................................... 50,000 3,250,000
Merck & Co., Inc. ....................................... 41,900 2,707,788
PepsiCo, Inc. ........................................... 70,000 2,476,250
Philip Morris Cos., Inc. ................................ 28,300 2,943,200
Schering-Plough Corp. ................................... 25,600 1,606,400
UST, Inc. ............................................... 54,000 1,849,500
Warner Lambert Co. ...................................... 36,600 2,013,000
------------
33,148,244
------------
DIVERSIFIED 6.58%
General Electric Co. .................................... 29,000 2,508,500
Hanson PLC, ADR ......................................... 111,000 1,581,750
Minnesota Mining & Manufacturing Co. .................... 20,000 1,380,000
Textron, Inc. ........................................... 32,000 2,556,000
------------
8,026,250
------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
ENERGY 6.62%
Amoco Corp. ............................................. 24,600 $ 1,780,425
Exxon Corp. ............................................. 22,000 1,911,250
Repsol AS, ADR .......................................... 60,000 2,085,000
Royal Dutch Petroleum Co. ............................... 14,900 2,290,875
------------
8,067,550
------------
FINANCE 17.12%
American General Corp. .................................. 52,000 1,891,500
American International Group, Inc. ...................... 23,100 2,278,237
Boatmen's Bancshares, Inc. .............................. 35,000 1,404,375
Dun & Bradstreet Corp. .................................. 40,000 2,500,000
Federal National Mortgage Assn. ......................... 40,000 1,340,000
First Chicago NBD Corp. ................................. 53,800 2,104,925
First of America Bank Corp. ............................. 40,000 1,790,000
First Union Corp. ....................................... 30,000 1,826,250
General RE Corp. ........................................ 9,000 1,370,250
Jefferson-Pilot Corp. ................................... 24,000 1,239,000
Morgan Stanley Group, Inc. .............................. 37,000 1,817,625
SAFECO Corp. ............................................ 37,000 1,308,875
------------
20,871,037
------------
TECHNOLOGY 8.59%
Automatic Data Processing, Inc. ......................... 26,000 1,004,250
COMPAQ Computer Corp.* .................................. 32,000 1,576,000
Computer Associates International, Inc. ................. 46,500 3,313,125
Hewlett-Packard Co. ..................................... 28,000 2,789,500
International Business Machines Corp. ................... 18,000 1,782,000
------------
10,464,875
------------
UTILITIES 5.84%
CINergy Corp. ........................................... 61,000 1,952,000
Southern New England Telecommunications Corp. ........... 60,000 2,520,000
Telefonos de Mexico, "L", ADR ........................... 40,800 1,366,800
Texas Utilities Co. ..................................... 30,000 1,282,500
------------
7,121,300
------------
TOTAL COMMON STOCKS
(Cost $84,043,445) ..................................... 121,552,207
------------
SHORT TERM INVESTMENTS 0.29%
United Missouri Bank, Money Market Fiduciary 4.040% .... 348,352 348,352
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $348,352) ........................................ 348,352
------------
TOTAL INVESTMENTS
(100.00%) (Cost $84,391,797#) .......................... $121,900,559
============
</TABLE>
4
<PAGE>
<TABLE>
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<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND
COMMON STOCKS 78.39%
LARGE CAPITALIZATION EQUITIES 18.26%
Abbott Laboratories ..................................... 13,400 $ 582,900
American General Corp. .................................. 14,500 527,437
American Home Products Corp. ............................ 11,000 661,375
American International Group, Inc. ...................... 5,550 547,369
Archer-Daniels-Midland Co. .............................. 30,000 573,750
Atlantic Richfield Co. .................................. 3,900 462,150
Automatic Data Processing, Inc. ......................... 10,000 386,250
Boatmen's Bancshares, Inc. .............................. 16,600 666,075
Boeing Co. .............................................. 3,400 296,225
Bristol-Myers Squibb Co. ................................ 7,500 675,000
CINergy Corp. ........................................... 18,000 576,000
Circuit City Stores, Inc. ............................... 14,000 505,750
Columbia/HCA Healthcare, Inc. ........................... 12,619 673,539
COMPAQ Computer Corp.* .................................. 14,200 699,350
Computer Associates International, Inc. ................. 5,400 384,750
Comsat Corp. ............................................ 6,200 161,200
Cooper Tire & Rubber Co. ................................ 13,100 291,475
Disney (Walt) Co. ....................................... 9,600 603,600
Dow Chemical Co. ........................................ 8,100 615,600
DTE Energy Co. .......................................... 12,000 370,500
Dun & Bradstreet Corp. .................................. 10,500 656,250
Emerson Electric Co. .................................... 7,200 650,700
Exxon Corp. ............................................. 7,000 608,125
Federal National Mortgage Assn. ......................... 30,800 1,031,800
First Chicago NBD Corp. ................................. 9,300 363,862
Fleming Cos., Inc. ...................................... 18,000 258,750
Ford Motor Co. .......................................... 22,000 712,250
Foxmeyer Health Corp.* .................................. 11,400 169,575
Gannett Co., Inc. ....................................... 5,000 353,750
General Electric Co. .................................... 8,000 692,000
General RE Corp. ........................................ 2,800 426,300
Great Lakes Chemical Corp. .............................. 8,500 529,125
Heinz (H.J.) Co. ........................................ 15,000 455,625
Hewlett-Packard Co. ..................................... 8,200 816,925
International Business Machines Corp. ................... 3,500 346,500
Johnson & Johnson ....................................... 15,800 782,100
Kimberly-Clark Corp. .................................... 10,000 772,500
Lilly (Eli) & Co. ....................................... 10,800 702,000
Lockheed Martin Corp. ................................... 8,116 681,744
Loews Corp. ............................................. 5,000 394,375
Manor Care, Inc. ........................................ 11,700 460,688
Marsh & McLennan Cos., Inc. ............................. 5,000 482,500
McDonald's Corp. ........................................ 16,000 748,000
Merck & Co., Inc. ....................................... 12,300 794,887
Minnesota Mining & Manufacturing Co. ................... 10,000 690,000
Morgan Stanley Group, Inc. .............................. 13,400 658,275
Norfolk Southern Corp. .................................. 3,500 296,625
Penney (J.C.) Co., Inc. ................................. 10,700 561,750
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
PepsiCo, Inc. ........................................... 22,000 $ 778,250
Philip Morris Cos., Inc. ................................ 7,500 780,000
Pitney Bowes, Inc. ...................................... 14,000 668,500
Ralston-Ralston Purina Group ............................ 10,000 641,250
Raytheon Co. ............................................ 14,000 722,750
Rite Aid Corp. .......................................... 23,000 684,250
Royal Dutch Petroleum Co. ............................... 6,000 922,500
Russell Corp. ........................................... 5,100 140,888
SAFECO Corp. ............................................ 18,500 654,437
Salomon, Inc. ........................................... 10,000 440,000
Schering-Plough Corp. ................................... 12,800 803,200
Shaw Industries, Inc. ................................... 13,000 170,625
Southern New England Telecommunications Corp. ........... 17,000 714,000
Texas Utilities Co. ..................................... 11,000 470,250
Textron, Inc. ........................................... 10,000 798,750
Toys "R" Us, Inc.* ...................................... 9,000 256,500
Tyson Foods, Inc., Cl. A ................................ 20,000 547,500
USLIFE Corp. ............................................ 2,400 78,900
Vulcan Materials Co. .................................... 11,000 653,125
Wachovia Corp. .......................................... 10,000 437,500
Westvaco Corp. .......................................... 18,000 537,750
Whirlpool Corp. ......................................... 11,500 570,688
WMX Technologies, Inc. .................................. 18,300 599,325
------------
39,428,214
------------
SMALL CAPITALIZATION EQUITIES 23.32%
ACX Technologies, Inc.* ................................. 10,200 202,725
Advanced Technology
Laboratories, Inc.* .................................... 6,800 248,200
Airborne Freight Corp. .................................. 7,900 205,400
Alaska AirGroup, Inc.* .................................. 9,200 251,850
Albank Financial Corp. .................................. 15,840 417,780
Alberto-Culver Co., Cl. B ............................... 4,900 227,237
Alex Brown, Inc. ........................................ 3,100 175,150
AMC Entertainment, Inc.* ................................ 11,800 328,925
America West Airlines, Inc., Cl. B* ..................... 10,800 237,600
American Bankers Insurance Group, Inc. .................. 5,800 253,025
American Safety Razor Co.* .............................. 23,900 241,988
AmeriSource Health Corp., Cl. A* ........................ 4,900 162,925
Angelica Corp. .......................................... 7,700 181,912
Applied Magnetics Corp.* ................................ 19,000 199,500
AptarGroup, Inc. ........................................ 6,700 202,675
Arbor Health Care Co.* .................................. 5,000 136,250
Arvin Industries, Inc. .................................. 5,800 129,050
Ashland Coal, Inc. ...................................... 8,300 214,763
Aspect Telecommunications Corp.* ........................ 2,800 138,600
Astoria Financial Group Corp. ........................... 18,200 493,675
Auspex Systems, Inc. * .................................. 12,300 184,500
Banta Corp. ............................................. 6,000 151,500
Bearings, Inc. .......................................... 16,800 453,600
Belden, Inc. ............................................ 4,800 144,000
</TABLE>
5
<PAGE>
<TABLE>
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<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
Bell Industries, Inc.* ................................. 16,320 $ 273,360
Bio-Rad Laboratories, Inc., Cl. A* ..................... 6,450 231,394
BMC Industries, Inc. ................................... 6,600 189,750
Boole & Babbage, Inc.* ................................. 11,100 266,400
Browning-Ferris Industries, Inc. ....................... 10,000 290,000
Cabot Oil & Gas Corp., Cl. A ........................... 20,100 349,237
California Federal Bankcorp, Inc.* ..................... 9,700 177,025
Camco International, Inc. .............................. 7,700 260,838
Carlisle Cos., Inc. .................................... 4,900 260,312
Carmike Cinemas, Inc., Cl. A* .......................... 7,100 191,700
Carpenter Technology Corp. ............................. 5,600 179,200
Carson Pirie Scott & Co.* .............................. 7,800 208,650
Carter-Wallace, Inc. ................................... 22,400 327,600
Casey's General Stores, Inc. ........................... 7,900 157,013
CCB Financial Corp. .................................... 7,300 374,125
Central Louisiana Electric Co., Inc. ................... 1,300 34,612
Central Maine Power Co. ................................ 16,000 232,000
Central Newspapers, Inc., Cl. A ........................ 16,600 622,500
CILCORP, Inc. .......................................... 1,700 72,675
Cleveland-Cliffs, Inc. ................................. 8,600 336,475
CMAC Investment Corp. .................................. 3,100 178,250
Commerce Group, Inc. ................................... 9,300 194,138
Commonwealth Energy Systems ............................ 10,400 267,800
CompUSA, Inc.* ......................................... 4,500 153,562
Consolidated Products, Inc.* ........................... 8,700 143,550
Cullen Frost Bankers, Inc. ............................. 26,000 721,500
Dexter Corp. ........................................... 6,700 199,325
Digital Systems International, Inc.* ................... 14,800 223,850
DII Group, Inc.* ....................................... 8,000 204,000
Dionex Corp. * ......................................... 9,100 293,475
Domtar, Inc. ........................................... 55,400 401,650
E'town Corp...................... ...................... 7,700 213,675
Energy Ventures, Inc.* ................................. 6,000 195,000
FINOVA Group, Inc. ..................................... 5,400 263,250
First Commercial Corp. ................................. 5,564 171,093
First Financial Caribbean Corp. ........................ 7,100 145,550
First Michigan Bank Corp. .............................. 9,922 312,543
FirstBank Puerto Rico .................................. 8,100 186,300
Foamex International, Inc.* ............................ 10,400 127,400
Fremont General Corp. .................................. 6,930 159,390
Frontier Insurance Group, Inc. ......................... 7,810 269,445
G & K Services, Inc., Cl. A ............................ 10,900 310,650
Genesis Health Ventures, Inc.* ......................... 4,650 145,894
Gerber Scientific, Inc. ................................ 22,900 369,263
Giddings & Lewis, Inc. ................................. 20,400 331,500
Harnischfeger Industries, Inc. ......................... 7,100 236,075
Health Management Systems, Inc.* ....................... 6,800 215,900
Heritage Media Corp., Cl. A* ........................... 7,400 295,075
Horace Mann Educators Corp. ............................ 15,400 488,950
IDEX Corp. ............................................. 6,600 250,800
IES Industries, Inc. ................................... 8,800 262,900
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Illinois Central Corp. .................................. 14,250 $ 404,344
In Focus Systems, Inc.* ................................. 3,800 92,150
Inter Regional Financial Group, Inc. .................... 14,550 378,300
InterDigital Communications Corp.* ...................... 33,700 286,450
Intermet Corp.* ......................................... 4,800 66,900
International Multifoods Corp. .......................... 11,600 211,700
Interstate Power Co. .................................... 9,300 298,762
Invacare Corp. .......................................... 10,200 239,700
JLG Industries, Inc. .................................... 4,900 363,825
Just For Feet, Inc.* .................................... 10,400 549,900
Kennametal, Inc. ........................................ 5,200 176,800
Kent Electronics Corp.* ................................. 4,800 150,000
Kinder Care Learning Centers, Inc.* ..................... 20,100 309,038
Kinetic Concepts, Inc. .................................. 40,600 629,300
Landstar System, Inc.* .................................. 5,500 159,500
Lawyers Title Corp. ..................................... 13,700 246,600
LCI International, Inc.* ................................ 7,200 225,900
Lennar Corp. ............................................ 15,100 377,500
Lincare Holdings, Inc.* ................................. 4,700 184,475
Longs Drug Stores, Inc. ................................. 3,900 174,037
Luby's Cafeterias, Inc. ................................. 13,500 317,250
Lukens, Inc. ............................................ 7,100 169,513
Lydall, Inc.* ........................................... 14,600 321,200
Magainin Pharmaceuticals, Inc.* ......................... 34,700 364,350
Magna Group, Inc. ....................................... 12,200 292,800
Mark Twain Bancshares, Inc. ............................. 6,900 255,300
Marshall Industries* .................................... 10,000 280,000
Measurex Corp. .......................................... 15,200 444,600
Medic Computer Systems, Inc.* ........................... 1,800 146,025
Medusa Corp. ............................................ 8,800 272,800
Mentor Graphics Corp.* .................................. 12,100 196,625
Meredith Corp. .......................................... 11,400 475,950
Methode Electronics, Inc., Cl. A ........................ 15,400 261,800
Miller (Herman), Inc. ................................... 6,700 205,187
Minnesota Power & Light Co. ............................. 8,300 235,513
Moog, Inc., Cl. A* ...................................... 6,000 147,000
Multicare Cos., Inc.* ................................... 8,550 162,450
Mycogen Corp.* .......................................... 36,100 541,500
NAC Re Corp. ............................................ 6,600 221,100
NACCO Industries, Inc., Cl. A ........................... 7,800 431,925
National Data Corp. ..................................... 4,500 154,125
Nautica Enterprises, Inc.* .............................. 10,100 290,375
Network Equipment Technologies, Inc.* ................... 5,200 110,500
NeXstar Pharmaceuticals, Inc.* .......................... 11,900 264,775
OEA, Inc.* .............................................. 8,400 315,000
OEC Medical Systems, Inc.* .............................. 21,700 295,662
Oneida, Ltd. ............................................ 29,700 556,875
Oneok, Inc. ............................................. 10,200 255,000
Orion Capital Corp. ..................................... 8,900 453,900
Outboard Marine Corp. ................................... 21,800 395,125
Patterson Dental Co.* ................................... 4,700 170,375
PennCorp Financial Group, Inc. .......................... 15,800 501,650
</TABLE>
6
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
PHH Corp. ............................................... 10,800 $ 615,600
Poe & Brown, Inc. ....................................... 10,600 262,350
Precision Castparts Corp. ............................... 9,950 427,850
Prime Hospitality Corp.* ................................ 13,000 214,500
Protective Life Corp. ................................... 17,600 618,200
Provident Bancorp, Inc. ................................. 2,150 75,788
Quick and Reilly Group, Inc. ............................ 6,450 209,625
Raymond James Financial, Inc. ........................... 21,800 493,225
Regal Beloit Corp. ...................................... 9,200 181,700
Regis Corp. ............................................. 9,300 290,625
Renaissance Communications Corp.* ....................... 8,000 258,000
Respironics, Inc.* ...................................... 34,200 632,700
Riggs National Corp. .................................... 12,400 150,350
Riser Foods, Inc., Cl. A ................................ 9,700 232,800
Robert Half International, Inc.* ........................ 15,000 418,125
Robert Mondavi Corp., Cl. A* ............................ 5,700 179,550
Ross Stores, Inc. ....................................... 16,000 556,000
Sanifill, Inc.* ......................................... 4,500 221,625
Santa Fe Energy Resources* .............................. 39,500 469,062
SCI Systems, Inc.* ...................................... 6,900 280,313
SEI Corp. ............................................... 6,600 139,425
Showbiz Pizza Time, Inc.* ............................... 6,700 105,525
Siliconix, Inc.* ........................................ 5,000 107,500
Smith International, Inc.* .............................. 8,600 259,075
Sonat Offshore Drilling Co. ............................. 9,100 459,550
Springs Industries, Inc., Cl. A ......................... 5,800 292,900
State Auto Financial Corp. .............................. 6,300 152,775
Steris Corp.* ........................................... 490 15,680
Sterling Software, Inc.* ................................ 2,300 177,100
Stone & Webster, Inc. ................................... 11,100 378,787
Stratus Computer, Inc.* ................................. 7,700 223,300
Structural Dynamics Research Corp.* ..................... 6,700 147,400
SunGard Data Systems, Inc.* ............................. 7,200 288,900
Synopsys, Inc.* ......................................... 10,100 401,475
Tech-Sym Corp.* ......................................... 5,000 148,750
Texas Industries, Inc. .................................. 4,100 281,362
Tiffany & Co. ........................................... 3,100 226,300
Toro Co. ................................................ 12,700 420,688
Tredegar Industries, Inc. ............................... 17,500 529,375
U. S. Bioscience, Inc.* ................................. 18,100 246,612
U. S. Filter Corp.* ..................................... 12,700 441,325
U. S. Home Corp.* ....................................... 10,800 265,950
United Cos. Financial Corp. ............................. 5,500 187,000
Universal Corp. ......................................... 11,300 299,450
Universal Health Services, Inc., Cl. B* ................. 16,800 438,900
Vencor, Inc.* ........................................... 7,833 238,907
Vesta Insurance Group, Inc. ............................. 5,850 195,244
Waban, Inc.* ............................................ 11,700 279,337
Watson Pharmaceuticals, Inc.* ........................... 4,500 170,438
WestAmerica Bancorp ..................................... 15,500 778,875
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Westpoint Stevens, Inc.* ................................ 9,100 $ 217,262
WHX Corp.* .............................................. 12,900 117,713
Wisconsin Central Transportation Corp.* ................. 6,600 214,500
Wolverine Tube , Inc.* .................................. 5,200 182,000
World Fuel Services Corp. ............................... 28,200 511,125
Zale Corp.* ............................................. 16,500 278,437
Zilog, Inc.* ............................................ 7,300 175,200
------------
50,363,010
------------
INTERNATIONAL EQUITIES 18.92%
ABN-AMRO Hldgs N.V., ADR ................................ 12,000 643,945
AEGON N.V., ADR ......................................... 30,000 1,383,750
Akzo Nobel N.V., ADR .................................... 11,400 681,150
Amcor Ltd., ADR ......................................... 20,000 552,500
Associated British Foods PLC, ADR ....................... 100,000 601,320
Astra AB, ADR ........................................... 25,000 1,093,750
Banco Santander AS, ADR ................................. 20,900 969,238
BASF AG, ADR ............................................ 16,000 914,502
Bass PLC, ADR ........................................... 18,300 452,925
Bayer AG, ADR ........................................... 27,400 967,552
British Airways PLC, ADR ................................ 10,000 857,500
British Telecommunications PLC, ADR ..................... 10,000 537,500
Carlton Communications PLC, ADR ......................... 15,000 613,125
Ciba-Geigy AG, ADR ...................................... 25,000 1,523,000
Compagnie Cervecerias, ADR .............................. 20,000 470,000
CRA Ltd., ADR ........................................... 4,000 246,320
CS Holding, ADR ......................................... 15,000 356,532
Elsevier N.V., ADR ...................................... 25,000 759,375
Empresa Nacional
de Electridad AS, ADR .................................. 9,100 569,887
Fuji Photo Film Co., Ltd., ADR .......................... 44,000 1,402,500
Glaxo Wellcome PLC, ADR ................................. 35,000 936,250
Groupe Danone, ADR* ..................................... 18,000 544,745
Hitachi Ltd., ADR ....................................... 12,000 1,125,000
Hong Kong Electric Holding, ADR ......................... 200,000 609,760
HSBC Holdings PLC, ADR .................................. 5,000 755,764
Inchcape Berhad, ADR .................................... 282,200 899,710
Kirin Brewery Co., Ltd., ADR ............................ 9,000 1,116,000
Konica Corp., ADR* ...................................... 12,000 903,600
Koninklijke Ahold N.V., ADR ............................. 27,300 1,477,613
LVMH (Moet-Hennessey Louis
Vuitton), ADR .......................................... 20,000 947,500
Marui Ltd., ADR ......................................... 15,600 691,236
Matsushita Electric
Industrial Co., Ltd., ADR .............................. 4,500 837,000
National Australia Bank, Ltd., ADR ...................... 25,000 1,159,375
Nestle AS, ADR .......................................... 17,400 993,279
Novo-Nordisk AS, ADR* ................................... 27,300 975,975
PowerGen PLC, ADR. ...................................... 15,000 446,250
Repsol AS, ADR .......................................... 20,000 695,000
RWE Aktiengesellschaf AG, ADR ........................... 27,000 1,051,874
Sekisui House Ltd., ADR ................................. 6,600 752,136
</TABLE>
7
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
Shell Transport & Trading Co., ADR ...................... 12,500 $ 1,100,000
South China Morning Post, ADR ........................... 150,000 513,525
Southern Electric PLC, ADR .............................. 16,740 185,715
Sun Hung Kai Properties, Ltd., ADR ...................... 85,000 859,273
TDK Corp., ADR .......................................... 12,100 733,563
Telefonica de Espana, ADR ............................... 15,000 826,875
Telefonos de Mexico, "L", ADR ........................... 15,000 502,500
Total, ADR .............................................. 30,000 1,113,750
Toyota Motor Corp., ADR ................................. 18,100 907,262
Unigate PLC, ADR ........................................ 100,000 618,410
Unilever N.V. ........................................... 6,700 972,338
Vitro Sociedad Anonima, ADR ............................. 1,160 7,975
------------
40,855,624
------------
REAL ESTATE EQUITIES 17.89%
Bay Apartment Communities, Inc. ......................... 62,500 1,617,188
Beacon Properties, Inc. ................................. 47,500 1,217,188
Cali Realty Corp. ....................................... 44,800 1,086,400
CBL & Associates Properties, Inc. ....................... 62,400 1,396,200
CenterPoint Properties Corp. ............................ 21,000 509,250
Chelsea GCA Realty, Inc. ................................ 27,700 879,475
Colonial Properties Trust ............................... 29,600 717,800
Crown American Realty Trust ............................. 95,000 736,250
Duke Realty Investments, Inc. ........................... 53,400 1,615,350
Equity Residential Properties
Trust--SBI ............................................. 41,200 1,354,450
FelCor Suite Hotels, Inc. ............................... 29,900 911,950
First Industrial Realty Trust, Inc. ..................... 44,500 1,045,750
Gables Residential Trust--SBI ........................... 74,100 1,741,350
Glimcher Realty Trust--SBI .............................. 27,300 460,688
Highwoods Properties, Inc. .............................. 43,900 1,212,737
Horizon Group, Inc. ..................................... 40,320 826,560
JDN Realty Corp. ........................................ 50,000 1,118,750
Kimco Realty Corp. ...................................... 48,050 1,357,413
Koger Equity, Inc.* ..................................... 107,300 1,435,137
Liberty Property Trust--SBI ............................. 63,300 1,258,088
Meditrust Inc.--SBI ..................................... 27,100 904,462
Merry Land & Investment Co., Inc. ....................... 49,000 1,029,000
MGI Properties .......................................... 67,500 1,155,938
Nationwide Health Properties, Inc. ...................... 40,000 845,000
Oasis Residential, Inc. ................................. 30,000 656,250
Patriot American Hospitality, Inc. ...................... 66,500 1,970,062
Public Storage, Inc. .................................... 100,500 2,072,812
Regency Realty Corp. .................................... 29,000 609,000
RFS Hotel Investors, Inc. ............................... 72,000 1,116,000
Shurgard Storage Centers, Inc. .......................... 19,500 492,375
Simon Property Group, Inc. .............................. 35,100 859,950
South West Property Trust ............................... 48,800 652,700
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Spieker Properties, Inc. ................................ 16,700 $ 455,075
Starwood Lodging Trust .................................. 42,300 1,538,662
Sun Communities, Inc. ................................... 27,100 728,313
Wellsford Residential Property Trust .................... 46,700 1,050,750
------------
38,634,323
------------
TOTAL COMMON STOCKS
(Cost $142,534,620) .................................... 169,281,171
------------
FIXED INCOME SECURITIES 14.36%
U.S. GOVERNMENT OBLIGATIONS 10.50%
U.S. TREASURY NOTES
4.375%, 08/15/1996 ..................................... 500,000 499,531
5.625%, 08/31/1997 ..................................... 3,080,000 3,069,411
5.750%, 09/30/1997 ..................................... 550,000 548,797
5.375%, 11/30/1997 ..................................... 7,175,000 7,114,457
7.750%, 12/31/1999 ..................................... 2,055,000 2,141,694
7.500%, 11/15/2001 ..................................... 1,000,000 1,043,750
6.250%, 02/15/2003 ..................................... 2,450,000 2,405,594
7.875%, 11/15/2004 ..................................... 2,500,000 2,687,500
8.750%, 05/15/2017 ..................................... 2,665,000 3,162,188
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $22,897,691) ..................................... 22,672,922
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 1.96%
Federal Home Loan Mortgage Corp.,
Pool #380070 9.000%, 01/01/2005 ........................ 403,896 418,411
Federal Home Loan Mortgage Corp.,
Pool #554938 8.000%, 08/01/2017 ........................ 427,283 431,018
FHA/VA Pool #140283
6.500%, 08/01/2003 ..................................... 518,074 507,687
Federal National Mortgage Assn. 1992-152 J PAC 7.000%,
05/25/2006 ............................................. 770,000 772,318
Federal National Mortgage Assn.
Pool #337190 6.000%, 04/01/2011 ........................ 693,999 656,047
Federal National Mortgage Assn.
Pool #190723 6.000%, 04/01/2024 ........................ 1,584,251 1,438,687
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $4,292,915) ...................................... 4,224,168
------------
MORTGAGE SECURITIES 0.22%
The Money Store Home Equity Trust
7.100%, 11/15/2016, 1994-B
Series A-3 ............................................ 472,052 474,341
------------
TOTAL MORTGAGE SECURITIES
(Cost $470,297) ........................................ 474,341
------------
</TABLE>
8
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- ---------------------------------------------------------------------------------
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
<S> <C> <C>
CORPORATE BONDS 1.68%
Bellsouth Telecommunications,
5.850%, 11/15/2045 ..................................... 1,000,000 $ 967,188
GTE Corp., 10.250%, 11/01/2020 .......................... 620,000 707,593
Motorola, Inc., 8.400%, 08/15/2031 ...................... 465,000 519,053
US West Capital Funding Corp.,
6.310%, 11/01/2005 ..................................... 675,000 661,958
WMX Technologies, Inc.,
6.220%, 04/30/2004 ..................................... 750,000 776,430
------------
TOTAL CORPORATE BONDS
(Cost $3,597,367) ...................................... 3,632,222
------------
TOTAL FIXED INCOME SECURITIES
(Cost $31,258,270) ..................................... 31,003,653
------------
SHORT TERM INVESTMENTS 7.25%
United Missouri Bank, Money Market Fiduciary 4.040% .... 15,654,137 15,654,137
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $15,654,137) ..................................... 15,654,137
------------
TOTAL INVESTMENTS
(100.00%) (Cost $189,447,027#) ......................... $215,938,961
============
INVESCO ADVISOR INTERNATIONAL VALUE FUND
COMMON STOCKS 94.98%
BASIC MATERIALS 5.76%
BASF AG, ADR ............................................ 13,000 $ 743,033
Cemex AS, "B", ADR ...................................... 50,000 394,470
CRA Ltd., ADR ........................................... 12,000 738,960
------------
1,876,463
------------
CONSUMER CYCLICAL 6.62%
Canon, Inc., ADR ........................................ 4,000 417,000
Elsevier N.V., ADR ...................................... 20,000 607,500
Marui Ltd., ADR ......................................... 12,000 531,721
Toyota Motor Corp., ADR ................................. 12,000 601,500
------------
2,157,721
------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER STAPLES 23.25%
Amcor Ltd., ADR .......................................... 20,000 $ 552,500
Associated British Foods PLC, ADR ........................ 100,000 601,320
Bass PLC, ADR ............................................ 20,000 495,000
Dai Nippon Printing Co. Ltd., ADR ........................ 4,000 773,148
Glaxo Wellcome PLC, ADR .................................. 25,000 668,750
Groupe Danone, ADR* ...................................... 15,000 453,954
J. Sainsbury PLC, ADR .................................... 25,000 588,750
Kirin Brewery Co., Ltd., ADR ............................. 8,000 992,000
Koninklijke Ahold N.V., ADR .............................. 10,000 541,250
LVMH (Moet-Hennessey
Louis Vuitton), ADR ..................................... 10,000 473,750
Nestle AS, ADR ........................................... 15,000 856,275
Unilever N.V. ............................................ 4,000 580,500
-----------
7,577,197
-----------
DIVERSIFIED 9.83%
Bayer AG, ADR ............................................ 20,000 706,242
Elf Aquitaine, ADR ....................................... 20,000 735,000
Novo-Nordisk AS, ADR* .................................... 15,000 536,250
RWE Aktiengesellschaf AG, ADR ............................ 15,000 584,375
Swire Pacific Ltd., ADR .................................. 75,000 641,910
-----------
3,203,777
-----------
ENERGY 4.49%
Repsol AS, ADR ........................................... 20,000 695,000
Royal Dutch Petroleum Co. ................................ 5,000 768,750
-----------
1,463,750
-----------
ELECTRONICS 8.98%
Carlton Communications PLC, ADR .......................... 15,000 613,125
Fuji Photo Film Co., Ltd., ADR ........................... 30,000 956,250
Hitachi Ltd., ADR ........................................ 8,000 750,000
TDK Corp., ADR ........................................... 10,000 606,250
-----------
2,925,625
-----------
FINANCE 14.33%
AEGON N.V., ADR .......................................... 15,000 691,875
Banco Santander AS, ADR .................................. 12,000 556,500
Den Danske Bank, ADR ..................................... 8,000 536,034
HSBC Holdings PLC, ADR ................................... 5,000 755,764
ING Groep N.V., ADR ...................................... 25,000 745,470
National Australia Bank, Ltd., ADR ....................... 18,000 834,750
Societe Generale Paris, ADR .............................. 25,000 549,717
-----------
4,670,110
-----------
PHARMACEUTICALS 5.69%
Astra AB, ADR ............................................ 15,000 656,250
Ciba-Geigy AG, ADR ....................................... 15,000 913,800
Sandoz AG, ADR ........................................... 5,000 285,824
-----------
1,855,874
-----------
</TABLE>
9
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR INTERNATIONAL VALUE FUND (CONTINUED)
REAL ESTATE & HOUSING 3.92%
Sekisui House Ltd., ADR ................................ 5,000 $ 569,831
Sun Hung Kai Properties Ltd., ADR ...................... 70,000 707,637
------------
1,277,468
------------
TELECOMMUNICATIONS 6.14%
British Telecommunications PLC, ADR .................... 8,000 430,000
Stet Societa Finanziaria Telefonica, ADR ............... 20,000 685,000
Telefonica de Espana, ADR .............................. 10,000 551,250
Telefonos de Mexico, "L", ADR .......................... 10,000 335,000
------------
2,001,250
------------
TRANSPORTATION & SERVICES 1.84%
British Airways PLC, ADR ............................... 7,000 600,250
------------
UTILITIES 4.13%
Empresa Nacional de Electridad AS, ADR ................. 12,000 751,500
PowerGen PLC, ADR ...................................... 20,000 595,000
------------
1,346,500
------------
TOTAL COMMON STOCKS
(Cost $28,896,545) .................................... 30,955,985
------------
SHORT TERM INVESTMENTS 5.02%
United Missouri Bank, Money Market
Fiduciary 4.040% ..................................... 1,636,098 1,636,098
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,636,098) ..................................... 1,636,098
------------
TOTAL INVESTMENTS
(100.00%) (Cost $30,532,643#) ......................... $ 32,592,083
============
</TABLE>
The Fund's Portfolio of Investments at June 30, 1996, was concentrated in the
following countries:
<TABLE>
<CAPTION>
% OF MARKET
COUNTRY INVESTMENTS VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
Australia............................................... 6.52% $ 2,126,210
Great Britain........................................... 16.41% 5,347,959
Denmark................................................. 1.65% 536,250
France.................................................. 6.79% 2,212,421
Germany................................................. 6.24% 2,033,650
Hong Kong............................................... 1.97% 641,910
Italy................................................... 2.10% 685,000
Japan................................................... 21.19% 6,905,337
Netherlands............................................. 13.72% 4,471,378
Spain................................................... 10.07% 3,283,720
Sweden.................................................. 2.01% 656,250
Switzerland............................................. 6.31% 2,055,900
United States........................................... 5.02% 1,636,098
------ -----------
TOTAL................................................... 100.00% $32,592,083
====== ===========
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR REAL ESTATE FUND
COMMON STOCKS 91.63%
DIVERSIFIED 3.71%
Colonial Properties Trust ................................ 8,600 $ 208,550
MGI Properties ........................................... 11,500 196,938
-----------
405,488
-----------
HEALTHCARE 3.36%
Health Care Properties
Investment, Inc. ........................................ 1,800 60,750
Meditrust, Inc.--SBI ..................................... 6,000 200,250
Nationwide Health Properties, Inc. ....................... 5,000 105,625
-----------
366,625
-----------
INDUSTRIAL 13.13%
CenterPoint Properties Corp. ............................. 9,500 230,375
Duke Realty Investments, Inc. ............................ 15,250 461,311
First Industrial Realty Trust, Inc. ...................... 18,600 437,100
Liberty Property Trust--SBI .............................. 15,350 305,081
-----------
1,433,867
-----------
OFFICE 13.13%
Beacon Properties, Inc. .................................. 11,150 285,719
Cali Realty Corp. ........................................ 15,300 371,025
Highwoods Properties, Inc. ............................... 9,050 250,006
Koger Equity, Inc.* ...................................... 24,500 327,688
Spieker Properties, Inc. ................................. 7,300 198,925
-----------
1,433,363
-----------
RECREATION 12.97%
FelCor Suite Hotels, Inc. ................................ 8,200 250,100
Patriot American Hospitality, Inc. ....................... 14,000 414,750
RFS Hotel Investors, Inc. ................................ 28,800 446,400
Starwood Lodging Trust ................................... 8,400 305,550
-----------
1,416,800
-----------
RESIDENTIAL 20.87%
Bay Apartment Communities, Inc. .......................... 19,500 504,563
Equity Residential Properties Trust--SBI ................. 9,600 315,600
Gables Residential Trust--SBI ............................ 20,350 478,225
Merry Land & Investment Co., Inc. ........................ 7,000 147,000
Oasis Residential, Inc. .................................. 8,100 177,188
South West Property Trust ................................ 15,400 205,975
Sun Communities, Inc. .................................... 6,200 166,625
Wellsford Residential Property Trust ..................... 12,600 283,500
-----------
2,278,676
-----------
</TABLE>
10
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR REAL ESTATE FUND (CONTINUED)
RETAIL 18.29%
CBL & Associates Properties, Inc. ....................... 11,150 $ 249,481
Chelsea GCA Realty, Inc. ................................ 6,200 196,850
Crown American Realty Trust ............................. 25,900 200,725
Glimcher Realty Trust--SBI .............................. 11,800 199,125
HGI Realty, Inc. ........................................ 13,700 280,850
JDN Realty Corp. ........................................ 13,600 304,300
Kimco Realty Corp. ...................................... 9,450 266,963
Regency Realty Corp. .................................... 10,600 222,600
Simon Property Group, Inc. .............................. 3,100 75,950
-----------
1,996,844
-----------
SELF-STORAGE 6.17%
Public Storage, Inc. .................................... 26,000 536,250
Shurgard Storage Centers, Inc. .......................... 5,450 137,612
-----------
673,862
-----------
TOTAL COMMON STOCKS
(Cost $9,501,502) ...................................... 10,005,525
-----------
SHORT TERM INVESTMENTS 8.37%
United Missouri Bank, Money Market
Fiduciary 4.040% ...................................... 913,635 913,635
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $913,635) ........................................ 913,635
-----------
TOTAL INVESTMENTS
(100.00%) (Cost $10,415,137#) .......................... $10,919,160
===========
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR INCOME FUND
FIXED INCOME SECURITIES 97.42%
U.S. GOVERNMENT OBLIGATIONS 69.37%
U.S. TREASURY NOTES
6.000%, 07/01/1996 ...................................... 40,000 $ 40,000
8.500%, 07/15/1997 ...................................... 2,000,000 2,051,250
6.125%, 03/31/1998 ...................................... 2,600,000 2,601,625
8.000%, 08/15/1999 ...................................... 1,000,000 1,045,937
6.375%, 01/15/2000 ...................................... 2,700,000 2,699,155
7.500%, 11/15/2001 ...................................... 1,750,000 1,826,563
6.375%, 08/15/2002 ...................................... 1,600,000 1,585,000
6.250%, 02/15/2003 ...................................... 1,940,000 1,904,837
10.750%, 08/15/2005 ..................................... 1,250,000 1,586,328
9.375%, 02/15/2006 ...................................... 1,000,000 1,186,562
9.250%, 02/15/2016 ...................................... 1,700,000 2,102,687
7.250%, 08/15/2022 ...................................... 1,100,000 1,127,156
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $19,927,903) ...................................... 19,757,100
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS 17.02%
FEDERAL HOME LOAN MORTGAGE CORP.
12.000%, 04/01/2000 Pool #200009 ........................ 8,807 9,390
6.500%, 06/01/2001 Gold
Pool #G50362 ........................................... 500,000 495,156
8.000%, 10/01/2010 Gold
Pool #G10518 ........................................... 807,828 823,227
-----------
1,327,773
-----------
FEDERAL NATIONAL MORTGAGE ASSN.
6.000%, 01/01/2009 Pool #50973 .......................... 76,648 72,456
6.000%, 04/01/2024 Pool #190723 ......................... 94,301 85,637
-----------
158,093
-----------
GOVERNMENT NATIONAL MORTGAGE ASSN.
6.500%, 10/15/2008 Pool #354668 ......................... 870,492 844,106
6.000%, 10/15/2008 Pool #360191 ......................... 526,191 499,553
7.000%, 10/15/2008 Pool #366622 ......................... 824,938 816,174
6.000%, 11/15/2008 Pool #370907 ......................... 389,036 369,341
7.500%, 03/15/2026 Pool #417287 ......................... 845,894 833,463
-----------
3,362,637
-----------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $5,031,197) ....................................... 4,848,503
-----------
</TABLE>
11
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR INCOME FUND (CONTINUED)
CORPORATE BONDS 11.03%
FINANCE 5.25%
Associates Corp., North America,
4.750%, 08/01/1996 ...................................... 1,000,000 $ 999,371
National City Corp.,
7.200%, 05/15/2005 ...................................... 500,000 494,482
-----------
1,493,853
-----------
INDUSTRIAL 5.78%
Waste Management, Inc.,
6.375%, 07/01/1997 ...................................... 500,000 501,508
Ford Motor Credit Co.,
9.250%, 06/15/1998 ...................................... 35,000 36,756
Ford Motor Credit Co.,
7.500%, 11/15/1999 ...................................... 500,000 510,891
Rockwell International, Inc.,
6.625%, 06/01/2005 ...................................... 500,000 483,018
GTE Corp.,
10.250%, 11/01/2020 ..................................... 100,000 114,128
-----------
1,646,301
-----------
TOTAL CORPORATE BONDS
(Cost $3,193,290) ....................................... 3,140,154
-----------
TOTAL FIXED INCOME SECURITIES
(Cost $28,152,390) ...................................... 27,745,757
-----------
SHORT TERM INVESTMENTS 2.58%
United Missouri Bank, MoneyMarket
Fiduciary 4.040% ....................................... 735,921 735,921
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $735,921) ......................................... 735,921
-----------
TOTAL INVESTMENTS
(100.00%) (Cost $28,888,311#) ........................... $28,481,678
===========
</TABLE>
<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 99.96%
United Parcel Service of
America, Inc. 07/02/1996 ...................... 5.240 900,000 $ 899,869
Temple-Inland, Inc. 07/03/1996 ................. 5.280 900,000 899,736
Bayshore Fuel Co. 07/08/1996 ................... 5.350 900,000 899,064
MetLife Funding, Inc.
07/08/1996 .................................... 5.300 900,000 899,073
Ameritech Capital Funding Corp.
07/09/1996 .................................... 5.320 1,000,000 998,818
BellSouth
Telecommunications, Inc. 07/09/1996 ........... 5.330 1,000,000 998,816
Nordstrom Credit, Inc.
07/09/1996 .................................... 5.340 900,000 898,932
General Electric Capital Corp. 07/10/1996 ...... 5.310 1,000,000 998,672
St. Paul Cos., Inc. 07/10/1996 ................. 5.320 1,000,000 998,670
Disney (Walt) Co. 07/11/1996 ................... 5.260 900,000 898,685
Alabama Power Co. 07/12/1996 ................... 5.320 1,000,000 998,374
Monsanto Co. 07/12/1996 ........................ 5.330 1,000,000 998,371
Ciba-Geigy Corp. 07/15/1996 .................... 5.320 1,000,000 997,931
Southwestern Bell Capital Corp.
07/16/1996 .................................... 5.300 900,000 898,013
Dupont (E.I.) de Nemours & Co.
07/17/1996 .................................... 5.300 1,000,000 997,644
Cargill, Inc. 07/18/1996 ....................... 5.320 900,000 897,739
Ford Motor Credit Co.
07/19/1996 .................................... 5.360 800,000 797,856
Engelhard Corp. 07/22/1996 ..................... 5.370 1,000,000 996,868
Greenwich Funding Corp. 07/22/1996 ............. 5.350 1,000,000 996,879
Abbott Laboratories 07/25/1996 ................. 5.350 655,000 652,664
Raytheon Co. 07/25/1996 ........................ 5.350 700,000 697,503
McCormick & Co., Inc. 07/30/1996 ............... 5.340 800,000 796,559
-----------
TOTAL COMMERCIAL PAPER
(Cost $20,116,736) ............................ 20,116,736
-----------
</TABLE>
12
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR CASH MANAGEMENT FUND (CONTINUED)
OTHER SECURITIES 0.04%
United Missouri Bank, Money Market
Fiduciary 4.040% (Cost $8,353)....................... 8,353 $ 8,353
-----------
TOTAL INVESTMENTS
(100.00%) (Cost $20,125,089#)........................ $20,125,089
===========
</TABLE>
* Security is non-income producing.
Principal and interest are payable on demand.
# Also represents cost for income tax purposes.
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(unaudited)
<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................ $368,505,697 $ 84,391,797 $189,447,027 $30,532,643 $10,415,137 $28,888,311 $20,125,089
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
At value............... $445,750,296 $121,900,559 $215,938,961 $32,592,083 $10,919,160 $28,481,678 $20,125,089
Cash.................... 0 0 0 0 0 0 2,357
Receivables:
Investment securities
sold.................. 0 0 826,820 0 0 0 0
Investment securities
matured............... 0 4,978,653 0 0 0 0 0
Fund shares sold....... 926,238 122,760 1,231,609 154,871 35,197 92,973 0
Dividends and interest. 4,236,168 284,816 1,157,777 126,614 103,656 581,988 1,070
Other assets............ 7,929 2,453 3,611 0 0 786 0
-----------------------------------------------------------------------------------------------
TOTAL ASSETS............ 450,920,631 127,289,241 219,158,778 32,873,568 11,058,013 29,157,425 20,128,516
-----------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Distributions to
shareholders.......... 301,193 21,849 81,278 50,105 7,282 21,946 25,695
Investment securities
purchased............. 0 345,675 1,203,679 521,602 0 0 0
Fund shares
repurchased........... 458,051 65,813 44,966 0 0 11,259 0
Other.................. 794,142 224,739 412,351 59,652 19,292 35,405 18,808
-----------------------------------------------------------------------------------------------
TOTAL LIABILITIES....... 1,553,386 658,076 1,742,274 631,359 26,574 68,610 44,503
-----------------------------------------------------------------------------------------------
NET ASSETS.............. $449,367,245 $126,631,165 $217,416,504 $32,242,209 $11,031,439 $29,088,815 $20,084,013
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
NET ASSETS
Paid-in capital......... $351,719,526 $ 89,937,308 $185,486,303 $30,062,548 $10,502,757 $30,522,452 $20,084,024
Accumulated
undistributed
(overdistributed) net
investment income...... 25,368 60 22,147 384 (1,415) (26,405) 0
Accumulated net realized
gain (loss) on
investments............ 20,377,752 (814,965) 5,416,120 119,837 26,074 (1,000,599) (11)
Unrealized net
appreciation
(depreciation) of
investments............ 77,244,599 37,508,762 26,491,934 2,059,440 504,023 (406,633) 0
-----------------------------------------------------------------------------------------------
NET ASSETS.............. $449,367,245 $126,631,165 $217,416,504 $32,242,209 $11,031,439 $29,088,815 $20,084,013
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Shares outstanding...... 6,903,938 1,672,172 4,442,663 669,975 247,270 600,770 20,084,444
NET ASSET VALUE PER
SHARE*................. $ 65.09 $ 75.73 $ 48.94 $ 48.12 $ 44.61 $ 48.42 $ 1.00
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
</TABLE>
*Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1996 (unaudited)
<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>
INVESTMENT INCOME
INCOME
Dividends............... $ 4,133,013 $1,413,488 $ 2,520,993 $ 341,338 $219,561 $ 0 $ 0
Interest................ 4,324,659 128,958 1,111,671 38,741 16,605 1,005,002 518,962
Miscellaneous........... 4,783 0 0 0 0 0 0
--------------------------------------------------------------------------------------
TOTAL INCOME........... 8,462,455 1,542,446 3,632,664 380,079 236,166 1,005,002 518,962
--------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees
(Note 2)............... 1,593,416 449,715 968,033 110,966 36,759 96,554 47,948
Distribution fees (Note
2)..................... 2,124,554 599,620 968,033 110,966 40,843 89,126 0
Directors fees & ex-
penses (Note 2)........ 19,872 5,719 8,652 257 0 1,519 3,515
Operating services fees
(Note 2)............... 1,062,277 299,810 436,940 55,483 20,422 74,272 47,948
--------------------------------------------------------------------------------------
TOTAL EXPENSES......... 4,800,119 1,354,864 2,381,658 277,672 98,024 261,471 99,411
Less: Advisory fee waiv-
er..................... 0 0 0 0 0 (37,137) 0
--------------------------------------------------------------------------------------
NET EXPENSES............ 4,800,119 1,354,864 2,381,658 277,672 98,024 224,334 99,411
--------------------------------------------------------------------------------------
NET INVESTMENT INCOME... 3,662,336 187,582 1,251,006 102,407 138,142 780,668 419,551
--------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENT SECURITIES
Net realized gain (loss)
on investments......... 20,379,337 364,343 5,463,350 121,760 28,605 823,128 (11)
Change in unrealized net
appreciation
(depreciation) on
investments............ (4,431,426) 8,237,982 3,425,999 1,540,892 283,059 (3,103,231) 0
--------------------------------------------------------------------------------------
NET GAIN (LOSS) ON IN-
VESTMENTS.............. 15,947,911 8,602,325 8,889,349 1,662,652 311,664 (2,280,103) (11)
--------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $19,610,247 $8,789,907 $10,140,355 $1,765,059 $449,806 $(1,499,435) $419,540
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FLEX FUND EQUITY FUND MULTIFLEX FUND
-------------------------- -------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED
1996 DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income... $ 3,662,336 $ 7,271,892 $ 187,582 $ 616,253 $ 1,251,006 $ 2,175,820
Net realized gain (loss)
on investments......... 20,379,337 1,499,336 364,343 1,719,762 5,463,350 2,369,562
Change in unrealized net
appreciation
(depreciation) of
investments............ (4,431,426) 65,472,709 8,237,982 22,774,563 3,425,999 23,626,272
-----------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS............. 19,610,247 74,243,937 8,789,907 25,110,578 10,140,355 28,171,654
-----------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income... (3,639,955) (7,268,905) (189,876) (619,651) (1,251,419) (2,154,064)
Net realized gain on
investments............ 0 (1,500,921) 0 (2,931,042) 0 (631,064)
-----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS..... (3,639,955) (8,769,826) (189,876) (3,550,693) (1,251,419) (2,785,128)
-----------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from sale of
shares................. 61,496,227 128,403,068 12,456,299 25,972,895 43,123,748 58,897,010
Exchange for Net Assets
of Relative Return Bond
Fund................... 0 0 0 0 0 0
Reinvestment of
distributions.......... 3,091,594 7,435,346 145,067 2,779,410 1,111,307 2,475,012
-----------------------------------------------------------------------------------
64,587,821 135,838,414 12,601,366 28,752,305 44,235,055 61,372,022
Amount paid for
repurchase of shares... (30,352,546) (45,998,840) (8,143,541) (14,667,568) (10,299,335) (32,386,988)
-----------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
CAPITAL SHARE
TRANSACTIONS........... 34,235,275 89,839,574 4,457,825 14,084,737 33,935,720 28,985,034
-----------------------------------------------------------------------------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 50,205,567 155,313,685 13,057,856 35,644,622 42,824,656 54,371,560
NET ASSETS
Beginning of period..... 399,161,678 243,847,993 113,573,309 77,928,687 174,591,848 120,220,288
-----------------------------------------------------------------------------------
End of period........... $449,367,245 $399,161,678 $126,631,165 $113,573,309 $217,416,504 $174,591,848
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Accumulated
undistributed
(overdistributed) net
investment income
included in net assets
at end of period....... $ 25,368 $ 2,987 $ 60 $ 2,354 $ 22,147 $ 22,560
- -------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Shares sold............. 956,483 2,219,650 169,513 404,616 898,195 1,379,512
Shares issued due to
exchange for net assets
of Relative Return Bond
Fund................... 0 0 0 0 0 0
Shares issued from
reinvestment of
distributions.......... 48,027 126,030 1,947 40,134 23,007 56,127
-----------------------------------------------------------------------------------
1,004,510 2,345,680 171,460 444,750 921,202 1,435,639
Shares repurchased...... (472,601) (802,409) (112,286) (227,468) (215,974) (770,268)
-----------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN CAPITAL SHARES...... 531,909 1,543,271 59,174 217,282 705,228 665,371
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CASH
INTERNATIONAL VALUE FUND REAL ESTATE FUND INCOME FUND MANAGEMENT FUND
------------------------- ------------------------- -------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED
1996 DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31, 1996 DECEMBER 31,
(UNAUDITED) 1995* (UNAUDITED) 1995* (UNAUDITED) 1995 (UNAUDITED) 1995
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment
income......... $ 102,407 $ 641 $ 138,142 $ 67,605 $ 780,668 $ 1,331,872 $ 419,551 $ 839,549
Net realized
gain (loss) on
investments.... 121,760 (1,923) 28,605 (2,531) 823,128 210,848 (11) (211)
Change in
unrealized net
appreciation
(depreciation)
of investments. 1,540,892 518,548 283,059 220,964 (3,103,231) 3,759,174 0 0
-----------------------------------------------------------------------------------------------
NET INCREASE
(DECREASE) IN
NET ASSETS FROM
OPERATIONS..... 1,765,059 517,266 449,806 286,038 (1,499,435) 5,301,894 419,540 839,338
-----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment
income......... (102,664) 0 (142,367) (64,794) (784,248) (1,346,768) (419,551) (839,549)
Net realized
gain on
investments.... 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------
TOTAL
DISTRIBUTIONS.. (102,664) 0 (142,367) (64,794) (784,248) (1,346,768) (419,551) (839,549)
-----------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from
sale of shares. 21,641,998 9,018,319 5,208,341 5,311,714 3,169,409 9,199,486 22,215,460 33,538,456
Exchange for Net
Assets of
Relative Return
Bond Fund...... 0 0 0 0 0 3,327,189 0 0
Reinvestment of
distributions.. 52,559 0 129,130 56,654 653,015 1,098,969 263,975 522,425
-----------------------------------------------------------------------------------------------
21,694,557 9,018,319 5,337,471 5,368,368 3,822,424 13,625,644 22,479,435 34,060,881
Amount paid for
repurchase of
shares......... (581,426) (72,902) (178,331) (28,752) (4,435,465) (11,062,245) (22,834,181) (28,833,413)
-----------------------------------------------------------------------------------------------
NET INCREASE
(DECREASE) IN
NET ASSETS FROM
CAPITAL SHARE
TRANSACTIONS... 21,113,131 8,945,417 5,159,140 5,339,616 (613,041) 2,563,399 (354,746) 5,227,468
-----------------------------------------------------------------------------------------------
TOTAL INCREASE
(DECREASE) IN
NET ASSETS..... 22,775,526 9,462,683 5,466,579 5,560,860 (2,896,724) 6,518,525 (354,757) 5,227,257
NET ASSETS
Beginning of
period......... 9,466,683 4,000 5,564,860 4,000 31,985,539 25,467,014 20,438,770 15,211,513
-----------------------------------------------------------------------------------------------
End of period... $32,242,209 $9,466,683 $11,031,439 $5,564,860 $ 29,088,815 $ 31,985,539 $ 20,084,013 $ 20,438,770
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Accumulated
undistributed
(overdistributed)
net investment
income included
in net assets
at end of
period......... $ 384 $ 641 $ (1,415) $ 2,810 $ (26,405) $ (22,825) $ 0 $ 0
- ------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Shares sold..... 468,619 214,356 119,053 128,705 63,624 188,718 22,215,460 33,538,456
Shares issued
due to exchange
for net assets
of Relative
Return Fund.... 0 0 0 0 0 64,390 0 0
Shares issued
from
reinvestment of
distributions.. 1,093 0 2,932 1,340 13,193 22,453 263,975 522,425
-----------------------------------------------------------------------------------------------
469,712 214,356 121,985 130,045 76,817 275,561 22,479,435 34,060,881
Shares
repurchased.... (12,411) (1,682) (4,069) (691) (88,567) (224,859) (22,834,181) (28,833,413)
-----------------------------------------------------------------------------------------------
NET INCREASE
(DECREASE) IN
CAPITAL SHARES. 457,301 212,674 117,916 129,354 (11,750) 50,702 (354,746) 5,227,468
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
</TABLE>
*For the period May 1, 1995 (commencement of operations) through December 31,
1995.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. The INVESCO
Advisor Funds, Inc. (which had 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 Flex Fund ("Flex"), INVESCO Advisor
Equity Fund ("Equity"), INVESCO Advisor MultiFlex Fund ("MultiFlex"), INVESCO
Advisor International Value Fund ("International Value"), INVESCO Advisor Real
Estate Fund ("Real Estate"), INVESCO Advisor Income Fund ("Income") and
INVESCO Advisor Cash Management Fund ("Cash Management"). 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
18
<PAGE>
$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 and Flex, 0.40% of the respective average daily net assets of
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 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 based on annual rates equal to 0.35% of average daily net assets of
MultiFlex Fund 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, Real
Estate and International Value and 0.60% of average daily net assets for In-
come. ISI advised the Fund that for the six months ended June 30, 1996, it re-
ceived approximately $15,814, $2,008, $498, $962, $7,235, $2,068 and $737 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.
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
19
<PAGE>
$100 million, expenses shall not exceed 2.50%; on the next $400 million of av-
erage daily net assets, expenses shall not exceed 2.40%; on the next $500 mil-
lion of average daily net assets, expenses shall not exceed 2.35%; on the next
$1 billion of average daily net assets, expenses shall not exceed 2.30%; and
on all daily average net assets over $2 billion, expenses shall not exceed
2.25%. In any calendar year, the expenses of Income may not exceed 1.75% of
the average daily net assets. ISI has agreed to reimburse Income for a three-
year period beginning October 1, 1995, so that the expenses shall not exceed
1.50% per annum of average daily net assets. 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 as-
sets, 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 billion, expenses
shall not exceed 2.25%.
At June 30, 1996, 42.19% of the outstanding capital shares of Cash Manage-
ment were owned by affiliated parties.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months
ended June 30, 1996, the aggregate cost of purchases and proceeds from sales
of U.S. Government Securities were:
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------
<S> <C> <C>
Flex.................................................... $82,643,849 $32,121,650
MultiFlex............................................... 28,018,808 18,058,708
Income.................................................. 7,830,031 8,845,792
</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.................................................... $39,750,900 $49,749,154
Equity.................................................. 6,777,746 3,544,688
MultiFlex............................................... 56,760,254 38,589,613
International Value..................................... 21,262,938 852,435
Real Estate............................................. 5,416,663 679,186
</TABLE>
NOTE 4 -- UNREALIZED APPRECIATION AND DEPRECIATION. At June 30, 1996, 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
APPRECIATION (DEPRECIATION) (DEPRECIATION)
----------------------------------
<S> <C> <C> <C>
Flex................................. $82,403,511 ($5,158,912) $77,244,599
Equity............................... 38,796,406 (1,287,644) 37,508,762
MultiFlex............................ 29,803,500 (3,311,566) 26,491,934
International Value.................. 2,423,641 (364,201) 2,059,440
Real Estate.......................... 592,573 (88,550) 504,023
Income............................... 280,908 (687,541) (406,633)
</TABLE>
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.
20
<PAGE>
NOTE 6 -- FOREIGN SECURITIES. Certain Funds invest in American Depository
Receipts of foreign companies. Underlying the American Depository 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 (effective July 1, 1996,
40% of the retainer fee at the time of retirement).
Pension expenses for Flex, Equity, MultiFlex, Income and Cash Management
Funds for the six months ended June 30, 1996 of $3,900, $1,138, $1,665, $313
and $272, 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 liabilities of $19,026, $5,817, $8,554 and $1,813, respectively,
and $272 for Cash Management, are included in other assets and liabilities in
the Statement of Assets and Liabilities. There were no pension expenses for
International Value and Real Estate 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.
21
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
FLEX FUND
SIX MONTHS
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
1996 1995 1994 1993 1992 1991
----------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period......... $ 62.64 $ 50.50 $ 54.16 $ 51.04 $ 49.35 $ 42.26
----------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income... 0.54 1.29 1.26 1.10 1.39 1.47
Net gain (loss) on secu-
rities (both realized
and unrealized)........ 2.45 12.38 (0.91) 4.22 2.37 8.90
----------------------------------------------------------------
Total from investment
operations............. 2.99 13.67 0.35 5.32 3.76 10.37
----------------------------------------------------------------
DISTRIBUTIONS
Dividends (from net in-
vestment income)....... (0.54) (1.29) (1.25) (1.09) (1.35) (1.49)
Distributions (from cap-
ital gains)............ 0.00 (0.24) (2.76) (1.11) (0.72) (1.79)
----------------------------------------------------------------
Total distributions..... (0.54) (1.53) (4.01) (2.20) (2.07) (3.28)
----------------------------------------------------------------
Net asset value, end of
period................. $ 65.09 $ 62.64 $ 50.50 $ 54.16 $ 51.04 $ 49.35
================================================================
TOTAL RETURN/1/......... 4.78%# 27.30% 0.64% 10.48% 7.72% 24.80%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (in 000's)........ $449,367 $399,162 $243,848 $274,349 $165,727 $104,204
Ratio of expenses to av-
erage net assets*...... 1.12%# 2.28% 2.25% 2.25% 2.17% 2.21%
Ratio of net investment
income to average net
assets*................ 0.86%# 2.28% 2.32% 2.10% 2.81% 3.12%
Portfolio turnover rate. 20%# 5% 36% 27% 15% 24%
Average commission rate
paid................... $ 0.0596 -- -- -- -- --
</TABLE>
/1/Total return assumes dividend reinvestment and does not reflect the effect of
sales charges.
* 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%.
# Not annualized.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
EQUITY FUND
SIX MONTHS
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1996 1995 1994 1993 1992 1991
------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period......... $ 70.41 $ 55.83 $ 59.61 $ 63.27 $ 63.38 $ 54.70
------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income... 0.12 0.41 0.36 0.41 0.60 0.66
Net gain on securities
(both realized and
unrealized)............ 5.32 16.44 1.26 5.40 2.44 17.63
------------------------------------------------------------
Total from investment
operations............. 5.44 16.85 1.62 5.81 3.04 18.29
------------------------------------------------------------
DISTRIBUTIONS
Dividends (from net in-
vestment income)....... (0.12) (0.41) (0.36) (0.41) (0.57) (0.69)
Distributions (from cap-
ital gains)............ 0.00 (1.86) (5.04) (9.06) (2.58) (8.92)
------------------------------------------------------------
Total distributions..... (0.12) (2.27) (5.40) (9.47) (3.15) (9.61)
------------------------------------------------------
Net asset value, end of
period................. $ 75.73 $ 70.41 $ 55.83 $ 59.61 $ 63.27 $ 63.38
============================================================
TOTAL RETURN/1/......... 7.72%# 30.28% 2.69% 9.16% 4.84% 33.59%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (in 000's)........ $126,631 $113,573 $77,929 $86,659 $91,146 $81,732
Ratio of expenses to av-
erage net assets*...... 1.12%# 2.28% 2.25% 2.25% 2.18% 2.22%
Ratio of net investment
income to average net
assets*................ 0.16%# 0.64% 0.61% 0.62% 0.90% 1.04%
Portfolio turnover rate. 3%# 17% 21% 47% 41% 47%
Average commission rate
paid................... $ 0.0600 -- -- -- -- --
</TABLE>
/1/Total return assumes dividend reinvestment and does not reflect the effect
of sales changes.
* 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% .
# Not annualized.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
MULTIFLEX FUND
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31, FOR THE PERIOD
-------------- ------------------ NOV. 17, 1993/2/ TO
1996 1995 1994 DEC. 31, 1993
------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, begin-
ning of period......... $46.71 $ 39.13 $ 40.16 $ 40.00
------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income... 0.30 0.64 0.62 0.02
Net gain (loss) on secu-
rities (both realized
and unrealized)........ 2.23 7.75 (1.03) 0.16
------------------------------------------------------
Total from investment
operations............. 2.53 8.39 (0.41) 0.18
------------------------------------------------------
DISTRIBUTIONS
Dividends (from net in-
vestment income)....... (0.30) (0.64) (0.62) (0.02)
Distributions (from cap-
ital gains)............ 0.00 (0.17) 0.00 0.00
------------------------------------------------------
Total distributions..... (0.30) (0.81) (0.62) (0.02)
------------------------------------------------------
Net asset value, end of
period................. $48.94 $ 46.71 $ 39.13 $ 40.16
======================================================
TOTAL RETURN/1/......... 5.41%# 21.58% (1.02%) 0.46% #
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (in 000's)........ $217,417 $174,592 $120,220 $12,241
Ratio of expenses to av-
erage net assets....... 1.22%# 2.50% 2.49% 2.50%*
Ratio of net investment
income to average net
assets................. 0.64%# 1.53% 2.01% 1.09%*
Portfolio turnover rate. 30%# 50% 81% 0.53%#
Average commission rate
paid................... $0.0571 -- -- --
</TABLE>
/1/ Total return assumes dividend reinvestment and does not reflect the effect
of sales charges.
/2/ Commencement of operations.
* Annualized.
# Not annualized.
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
INTERNATIONAL VALUE AND REAL ESTATE FUNDS
INTERNATIONAL VALUE FUND REAL ESTATE FUND
---------------------------------------------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED JUNE 30, MAY 1, 1995/2/ TO ENDED JUNE 30, MAY 1, 1995/2/ TO
1996 DEC. 31, 1995 1996 DEC. 31, 1995
---------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, begin-
ning of period......... $ 44.51 $40.00 $ 43.02 $40.00
-------------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income... 0.15 0.00 0.64 0.64
Net gain on securities
(both realized and
unrealized)............ 3.61 4.51 1.59 3.00
-------------------------------------------------------------------
Total from investment
operations............. 3.76 4.51 2.23 3.64
-------------------------------------------------------------------
DISTRIBUTIONS
Dividends (from net in-
vestment income)....... (0.15) 0.00 (0.64) (0.62)
------------------------------------------------------------------
Total distributions..... (0.15) 0.00 (0.64) (0.62)
------------------------------------------------------------------
Net asset value, end of
period................. $ 48.12 44.51 $ 44.61 43.02
------------------------------------------------------------------
------------------------------------------------------------------
TOTAL RETURN/1/......... 8.46%# 11.28%# 5.22%# 9.12%#
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (in 000's)........ $32,242 $9,467 $11,031 $5,565
Ratio of expenses to av-
erage net assts........ 1.24%# 2.50%* 1.19%# 2.40%*
Ratio of net investment
income to average net
assets................. 0.46%# 0.03%* 1.68%# 4.68%*
Portfolio turnover rate. 3%# 2%# 8%# 7%#
Average commission rate
paid................... $0.0604 -- $0.0600 --
</TABLE>
/1/Total return assumes dividend reinvestment and does not reflect the effect
of sales charges.
/2/Commencement of operations.
*Annualized.
#Not annualized.
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
INCOME FUND
SIX MONTHS
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1996 1995 1994 1993 1992 1991
------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period......... $ 52.22 $ 45.33 $ 48.60 $ 47.41 $ 47.77 $ 45.42
------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income... 1.31 2.44 2.40 2.28 2.57 3.03
Net gain (loss) on secu-
rities (both realized
and unrealized)........ (3.80) 6.91 (3.27) 1.20 (0.37) 2.43
------------------------------------------------------------
Total from investment
operations............. (2.49) 9.35 (0.87) 3.48 2.20 5.46
------------------------------------------------------------
DISTRIBUTIONS
Dividends (from net in-
vestment income)....... (1.31) (2.46) (2.40) (2.29) (2.56) (3.11)
------------------------------------------------------------
Total distributions..... (1.31) (2.46) (2.40) (2.29) (2.56) (3.11)
------------------------------------------------------------
Net asset value, end of
period................. $ 48.42 $ 52.22 $ 45.33 $ 48.60 $ 47.41 $ 47.77
============================================================
TOTAL RETURN/1/......... (4.79%)# 21.12% (1.80%) 7.39% 4.74% 12.46%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (in 000's)........ $29,089 $31,986 $25,467 $42,872 $47,096 $39,104
Ratio of expenses to av-
erage net assets*...... 0.75%# 2.19% 2.25% 2.25% 2.25% 2.29%
Ratio of net investment
income to average net
assets*................ 2.61%# 4.94% 5.09% 4.56% 5.48% 6.48%
Portfolio turnover rate. 27%# 24% 59% 92% 16% 37%
</TABLE>
/1/ Total return assumes dividend reinvestment and does not reflect the effect
of sales charges.
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of
the Fund aggregating $37,137, $17,720 and $17,632, for the six months ended
June 30, 1996 and the years ended 1995 and 1993, respectively. If such
expenses had not been absorbed, the ratio of expenses to average net assets
would have been 0.88%, 2.25% and 2.29%, for the six months ended June 30,
1996 and the years ended 1995 and 1993, respectively. The ratio of net
investment income to average net assets would have been 2.49%, 4.88% and
4.52%, for the six months ended June 30, 1996 and the years ended 1995 and
1993, respectively.
# Not annualized.
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
SIX MONTHS
ENDED JUNE 30, YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1996 1995 1994 1993 1992 1991
------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------
INVESTMENT OPERATIONS
Net investment income... 0.02 0.05 0.03 0.02 0.03 0.05
------------------------------------------------------------
DISTRIBUTIONS
Dividends (from net in-
vestment income)....... (0.02) (0.05) (0.03) (0.02) (0.03) (0.05)
------------------------------------------------------------
Net asset value, end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------
------------------------------------------------------------
TOTAL RETURN/1/......... 2.17%# 5.04% 3.30% 2.20% 3.00% 5.08%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (in 000's)........ $20,084 $20,439 $15,212 $13,827 $20,431 $17,730
Ratio of expenses to av-
erage net assets*...... 0.52%# 1.00% 1.00% 0.95% 0.73% 1.00%
Ratio of net investment
income to average net
assets*................ 2.17%# 4.91% 3.23% 2.17% 2.94% 5.04%
</TABLE>
/1/ Total return assumes dividend reinvestment and does not reflect the effect
of sales charges.
* 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.
# Not annualized.
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
INVESCO SERVICES, INC.
Investment Advisor
Manager
Distributor
INVESCO CAPITAL MANAGEMENT, INC.
Sub-Advisor:
INVESCO Advisor Flex Fund
INVESCO Advisor Equity Fund
INVESCO Advisor International Value Fund
INVESCO Advisor Income 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
UMB BANK, N.A.
Custodian
PRICE WATERHOUSE LLP
Independent Accountants
[LOGO OF INVESCO APPEARS HERE]
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
SEMI-ANNUAL REPORT
---------------------------------------
June 30, 1996
[LOGO OF INVESCO APPEARS HERE]
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> EQUITY PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 84,391,797
<INVESTMENTS-AT-VALUE> 121,900,559
<RECEIVABLES> 5,386,229
<ASSETS-OTHER> 2,453
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 127,289,241
<PAYABLE-FOR-SECURITIES> 345,675
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 312,401
<TOTAL-LIABILITIES> 657,076
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 89,937,308
<SHARES-COMMON-STOCK> 1,672,172
<SHARES-COMMON-PRIOR> 1,617,998
<ACCUMULATED-NII-CURRENT> 60
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (814,965)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 37,508,762
<NET-ASSETS> 126,631,165
<DIVIDEND-INCOME> 1,413,488
<INTEREST-INCOME> 128,958
<OTHER-INCOME> 0
<EXPENSES-NET> 1,354,864
<NET-INVESTMENT-INCOME> 187,582
<REALIZED-GAINS-CURRENT> 364,343
<APPREC-INCREASE-CURRENT> 8,237,982
<NET-CHANGE-FROM-OPS> 8,789,907
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 189,876
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 169,513
<NUMBER-OF-SHARES-REDEEMED> 112,286
<SHARES-REINVESTED> 1,947
<NET-CHANGE-IN-ASSETS> 13,057,856
<ACCUMULATED-NII-PRIOR> 2,354
<ACCUMULATED-GAINS-PRIOR> (1,179,308)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 449,715
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,354,864
<AVERAGE-NET-ASSETS> 120,576,719
<PER-SHARE-NAV-BEGIN> 70.41
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 5.32
<PER-SHARE-DIVIDEND> 0.12
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 75.73
<EXPENSE-RATIO> 1.12
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 28,888,311
<INVESTMENTS-AT-VALUE> 28,481,678
<RECEIVABLES> 674,961
<ASSETS-OTHER> 786
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 29,157,425
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 68,610
<TOTAL-LIABILITIES> 68,610
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30,522,452
<SHARES-COMMON-STOCK> 600,770
<SHARES-COMMON-PRIOR> 612,520
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (26,405)
<ACCUMULATED-NET-GAINS> (1,000,599)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (406,633)
<NET-ASSETS> 29,088,815
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,005,002
<OTHER-INCOME> 0
<EXPENSES-NET> 224,334
<NET-INVESTMENT-INCOME> 780,668
<REALIZED-GAINS-CURRENT> 823,128
<APPREC-INCREASE-CURRENT> (3,103,231)
<NET-CHANGE-FROM-OPS> (1,499,435)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 784,248
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 63,624
<NUMBER-OF-SHARES-REDEEMED> 88,567
<SHARES-REINVESTED> 13,193
<NET-CHANGE-IN-ASSETS> (2,896,724)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,823,727)
<OVERDISTRIB-NII-PRIOR> (22,825)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 96,554
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 261,471
<AVERAGE-NET-ASSETS> 29,871,161
<PER-SHARE-NAV-BEGIN> 52.22
<PER-SHARE-NII> 1.31
<PER-SHARE-GAIN-APPREC> (3.80)
<PER-SHARE-DIVIDEND> 1.31
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 48.42
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> FLEX PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 368,505,697
<INVESTMENTS-AT-VALUE> 445,750,296
<RECEIVABLES> 5,162,406
<ASSETS-OTHER> 7,929
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 450,920,631
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,553,386
<TOTAL-LIABILITIES> 1,553,386
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 351,719,526
<SHARES-COMMON-STOCK> 6,903,938
<SHARES-COMMON-PRIOR> 6,372,029
<ACCUMULATED-NII-CURRENT> 25,368
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 20,377,752
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 77,244,599
<NET-ASSETS> 449,367,245
<DIVIDEND-INCOME> 4,133,013
<INTEREST-INCOME> 4,324,659
<OTHER-INCOME> 4,783
<EXPENSES-NET> 4,800,119
<NET-INVESTMENT-INCOME> 3,662,336
<REALIZED-GAINS-CURRENT> 20,379,337
<APPREC-INCREASE-CURRENT> (4,431,426)
<NET-CHANGE-FROM-OPS> 19,610,247
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,639,955
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 956,483
<NUMBER-OF-SHARES-REDEEMED> 472,601
<SHARES-REINVESTED> 48,027
<NET-CHANGE-IN-ASSETS> 50,205,567
<ACCUMULATED-NII-PRIOR> 2,987
<ACCUMULATED-GAINS-PRIOR> (1,585)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,593,416
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,800,119
<AVERAGE-NET-ASSETS> 427,233,210
<PER-SHARE-NAV-BEGIN> 62.64
<PER-SHARE-NII> 0.54
<PER-SHARE-GAIN-APPREC> 2.45
<PER-SHARE-DIVIDEND> 0.54
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 65.09
<EXPENSE-RATIO> 1.12
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> CASH MANAGEMENT PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 20,125,089
<INVESTMENTS-AT-VALUE> 20,125,089
<RECEIVABLES> 1,070
<ASSETS-OTHER> 2,357
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 20,128,516
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 44,503
<TOTAL-LIABILITIES> 44,503
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20,084,024
<SHARES-COMMON-STOCK> 20,084,444
<SHARES-COMMON-PRIOR> 20,439,190
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (11)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 20,084,013
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 518,962
<OTHER-INCOME> 0
<EXPENSES-NET> 99,411
<NET-INVESTMENT-INCOME> 419,551
<REALIZED-GAINS-CURRENT> (11)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 419,540
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 419,551
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 22,215,460
<NUMBER-OF-SHARES-REDEEMED> 22,834,181
<SHARES-REINVESTED> 263,975
<NET-CHANGE-IN-ASSETS> (354,757)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,091)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 47,948
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 99,411
<AVERAGE-NET-ASSETS> 19,290,771
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.02
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.52
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> MULTIFLEX PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 189,447,027
<INVESTMENTS-AT-VALUE> 215,938,961
<RECEIVABLES> 3,216,206
<ASSETS-OTHER> 3,611
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 219,158,778
<PAYABLE-FOR-SECURITIES> 1,203,679
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 538,595
<TOTAL-LIABILITIES> 1,742,274
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 185,486,303
<SHARES-COMMON-STOCK> 4,442,663
<SHARES-COMMON-PRIOR> 3,737,435
<ACCUMULATED-NII-CURRENT> 22,147
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,416,120
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 26,491,934
<NET-ASSETS> 217,416,504
<DIVIDEND-INCOME> 2,520,993
<INTEREST-INCOME> 1,111,671
<OTHER-INCOME> 0
<EXPENSES-NET> 2,381,658
<NET-INVESTMENT-INCOME> 1,251,006
<REALIZED-GAINS-CURRENT> 5,463,350
<APPREC-INCREASE-CURRENT> 3,425,999
<NET-CHANGE-FROM-OPS> 10,140,355
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,251,419
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 898,195
<NUMBER-OF-SHARES-REDEEMED> 215,974
<SHARES-REINVESTED> 23,007
<NET-CHANGE-IN-ASSETS> 42,824,656
<ACCUMULATED-NII-PRIOR> 22,560
<ACCUMULATED-GAINS-PRIOR> (47,230)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 968,033
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,381,658
<AVERAGE-NET-ASSETS> 194,678,979
<PER-SHARE-NAV-BEGIN> 46.71
<PER-SHARE-NII> 0.30
<PER-SHARE-GAIN-APPREC> 2.23
<PER-SHARE-DIVIDEND> 0.30
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 48.94
<EXPENSE-RATIO> 1.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> REAL ESTATE PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 10,415,137
<INVESTMENTS-AT-VALUE> 10,919,160
<RECEIVABLES> 138,853
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11,058,013
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 26,574
<TOTAL-LIABILITIES> 26,574
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,502,757
<SHARES-COMMON-STOCK> 247,270
<SHARES-COMMON-PRIOR> 129,354
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,415)
<ACCUMULATED-NET-GAINS> 26,074
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 504,023
<NET-ASSETS> 11,031,439
<DIVIDEND-INCOME> 219,561
<INTEREST-INCOME> 16,605
<OTHER-INCOME> 0
<EXPENSES-NET> 98,024
<NET-INVESTMENT-INCOME> 138,142
<REALIZED-GAINS-CURRENT> 28,605
<APPREC-INCREASE-CURRENT> 283,059
<NET-CHANGE-FROM-OPS> 449,806
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 142,367
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 119,053
<NUMBER-OF-SHARES-REDEEMED> 4,069
<SHARES-REINVESTED> 2,932
<NET-CHANGE-IN-ASSETS> 5,466,579
<ACCUMULATED-NII-PRIOR> 2,810
<ACCUMULATED-GAINS-PRIOR> (2,531)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 36,759
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 98,024
<AVERAGE-NET-ASSETS> 8,214,206
<PER-SHARE-NAV-BEGIN> 43.02
<PER-SHARE-NII> 0.64
<PER-SHARE-GAIN-APPREC> 1.59
<PER-SHARE-DIVIDEND> 0.64
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 44.61
<EXPENSE-RATIO> 1.19
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> INTERNATIONAL VALUE PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 30,532,643
<INVESTMENTS-AT-VALUE> 32,592,083
<RECEIVABLES> 281,485
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 32,873,568
<PAYABLE-FOR-SECURITIES> 521,602
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 109,757
<TOTAL-LIABILITIES> 631,359
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30,062,548
<SHARES-COMMON-STOCK> 669,975
<SHARES-COMMON-PRIOR> 212,674
<ACCUMULATED-NII-CURRENT> 384
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 119,837
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,059,440
<NET-ASSETS> 32,242,209
<DIVIDEND-INCOME> 341,338
<INTEREST-INCOME> 38,741
<OTHER-INCOME> 0
<EXPENSES-NET> 227,672
<NET-INVESTMENT-INCOME> 102,407
<REALIZED-GAINS-CURRENT> 121,760
<APPREC-INCREASE-CURRENT> 1,540,892
<NET-CHANGE-FROM-OPS> 1,756,059
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 102,664
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 468,619
<NUMBER-OF-SHARES-REDEEMED> 12,411
<SHARES-REINVESTED> 1,093
<NET-CHANGE-IN-ASSETS> 22,775,526
<ACCUMULATED-NII-PRIOR> 641
<ACCUMULATED-GAINS-PRIOR> (1923)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 110,966
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 277,672
<AVERAGE-NET-ASSETS> 22,316,820
<PER-SHARE-NAV-BEGIN> 44.51
<PER-SHARE-NII> 0.15
<PER-SHARE-GAIN-APPREC> 3.61
<PER-SHARE-DIVIDEND> 0.15
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 48.12
<EXPENSE-RATIO> 1.24
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
