<PAGE>
February 24, 1997
Dear INVESCO Advisor Fund Shareholder:
We are quite pleased to provide this 1996 Annual Report detailing another
year of strong results. We hope that you will take a few minutes to review
this information which will give you additional perspective on the capital
markets as well as how INVESCO manages the money you have entrusted to us.
The economic environment in 1996 continued to be almost picture perfect for
financial assets. The economy grew fast enough to create jobs but not so fast
as to raise inflationary concerns. Corporate profits remained surprisingly
strong as the technology driven private sector demonstrated the benefits of
productivity enhancements. Moreover, the status quo was preserved in Washing-
ton after the national elections and the government's budget deficit declined
to less than 2% of national income.
Following on the heels of a nearly 38% return in 1995, the S&P 500 closed
1996 with a 23% total return. Large growth stocks again dominated small stocks
and foreign securities. The best performing major asset class in 1996 was real
estate with the NAREIT (National Association of Real Estate Investment Trusts)
Index up over 35%. The S&P 500 has completed its 8th consecutive quarter of
positive returns--a rare circumstance which has happened only five times since
1926. Additionally, having two years back-to-back where the market is up more
than 20% in each year is equally rare, happening only six times prior to the
1995-96 period. In each of the years following these periods, the market re-
turn was either negative or only modestly positive.
Despite this historical backdrop, and with the caveat that a correction can
occur at any time, our valuation discipline indicates the stock market is
still priced to provide a long term return of 10%. Assuming inflation stays in
check and interest rates do not rise significantly from current levels, the
stock market may continue to confound the skeptics and produce another good
year in 1997.
In unusually strong markets, such as we have had for the past two years, it
is easy to become carried away with investment performance and forget about
risk levels. Sometimes it takes a difficult market to remind us that it is
even more important to protect capital in down markets than to outperform in
up markets. Based on our heritage of handling very risk-averse institutional
accounts, we will continue to follow our disciplines which for 25 years have
helped to provide consistent returns with a high degree of stability.
INVESCO's discipline avoids concentrating our portfolios into a few overpriced
equities. This should help us minimize the portfolios' downside risk should
the market enter a more difficult period.
As you know, INVESCO and AIM Management Group, Inc. have agreed to merge and
the merger should be finalized later this quarter. We are very excited about
the prospects for the combined organization which will have approximately $150
billion in assets under management. In the coming months we will examine how
best to organize the new combined company to ensure that we are making avail-
able to you the best possible selection of investment products and services.
Most importantly, however, there will be no change in how your mutual fund is
managed. The portfolio managers and investment disciplines of the INVESCO Ad-
visor Funds will remain exactly the same.
Once again, let me say how much we appreciate the confidence which you have
placed in INVESCO by allowing us to manage your assets in the INVESCO Advisor
Funds. If you have any questions at all, please call our Shareholder Services
toll-free line at (800) 554-1156 or feel free to contact me directly.
Sincerely,
/s/ Hubert L. Harris, Jr.
- -------------------------------
Hubert L. Harris, Jr.
President
<PAGE>
INVESCO ADVISOR FLEX FUND
MARKET PERSPECTIVE
Large capitalization stocks posted another exceptional year in 1996. The S&P
500 finished the year with a 23% total return, but bonds lagged significantly
with the Lehman Government/Corporate Index up only 3.1% for the year. The wide
20% margin by which stocks outperformed bonds in 1996 has been exceeded only
twice in the past 24 years (1975 and 1980).
PORTFOLIO COMMENTS
The INVESCO Advisor Flex Fund closed out 1996 with a 13.6% total return
which exceeded the Lipper Balanced Average of 13.0%. Performance in the Flex
Fund is driven by three components: asset allocation, stock selection, and
bond strategy. Although the bond market was poor for the entire year, the fund
benefited from good stock selection and an asset allocation policy which fa-
vored equities throughout the year. At December 31, 1996 the Flex Fund's allo-
cation was 68% stocks, 30% bonds, and 2% cash.
INVESCO utilizes a "bottom up" approach to stock selection which avoids at-
tempts to forecast the economy or interest rates. Our discipline evaluates
each company's historical profitability relative to its current price. Hold-
ings include large and medium sized, high quality companies. The equity
portion of the fund is well-diversified to reduce risk and provide for partic-
ipation in the long-term growth of the equity markets.
The sectors which added the most value relative to the S&P 500 were finan-
cial services, consumer non-durables, utilities, energy and capital goods.
Sector weightings are a residual of our "bottom up" stock selection process.
Retailing stocks, however, have been pressured by a difficult environment and
are priced at significant discounts to the overall market. Therefore, this
group is showing up as particularly attractive. Financial stocks also continue
to be favored due to a significant increase in profitability and quality over
the last few years. Some of the top performing stocks in the fund were Philip
Morris, Telefonica de Espana, IBM, Reebok and Minnesota Mining and Manufactur-
ing. The fund reflects a high quality, value bias. The conservative nature of
INVESCO's equity component is illustrated by its higher than average dividend
yield of 2.7% and lower than market price/earnings ratio of 17.4x.
In the fixed income component of the Flex Fund, INVESCO evaluates interest
rates relative to underlying inflation. Extremely high or low yields relative
to normalized inflation triggers shifts in the maturity profile of the bond
component. In addition to evaluating overall yield levels, the corporate and
mortgage sectors of the market are monitored for relative attractiveness. The
average maturity of the fixed income component is 6.5 years compared to the
Government/Corporate Index at 9.2 years. In other words the fund is more
defensive than the market and offers more protection in down or bearish mar-
kets when interest rates are rising and bond prices are falling.
FLEX FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Advisor Flex Benchmark CPI Treasury Bill
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4/1/88 25,000 25,000 25,000 25,000
1988 26,113 26,925 25,708 26,249
1989 30,620 33,532 26,875 28,535
1990 30,105 34,086 28,732 30,836
1991 37,571 42,539 29,546 32,595
1992 40,472 45,772 30,445 33,758
1993 44,713 50,528 31,245 34,836
1994 45,000 50,214 32,067 36,385
1995 57,285 65,258 32,911 38,503
1996 65,081 74,812 34,013 40,528
- ---------------------------------------------------------------------------
</TABLE>
INVESCO Advisor Flex Fund's average annual total returns for the periods ended
December 31, 1996 are:*
1 year: 13.61%; 3 years: 13.33%; 5 years: 11.62%;
and, since inception: 11.30%
The line graphs on this page, and hereafter, illustrate the value of a $25,000
investment in the INVESCO Advisor Funds, plus reinvested dividends and capital
gains distributions, for the periods through 12/31/96. Fund performance does
not reflect any charges, that may be applicable, upon redemption. (Of course,
past performance is not a guarantee of future returns.) The charts and other
total return figures cited reflect each fund's operating expenses, but the in-
dices do not have expenses, which would, of course, have lowered their perfor-
mance. Please refer to page 6 for information about specific indices.
INVESCO ADVISOR EQUITY FUND
MARKET PERSPECTIVE
Large capitalization stocks once again dominated small stocks and foreign
securities. The S&P 500's return was concentrated, however, in a few stocks
and sectors. Five stocks: Intel, General Electric, Coca-Cola, Microsoft and
IBM accounted for about one-fourth of the S&P's
2
<PAGE>
return in 1996. The technology sector far surpassed all others with a 41.3%
return followed by financial services, capital goods and multi-industry.
PORTFOLIO COMMENTS
While 1996 was another very good year in terms of absolute returns, it was
also frustrating in terms of relative performance. The INVESCO Advisor Equity
Fund was up 17.2% for the year compared to the Lipper Growth/Income Average of
20.7%. While growth managers outperformed value managers for the second year
in a row, few of either group were able to beat the market averages.
Investment results lagged the market due to stock selection in the technol-
ogy sector and an overweighting in the retail sector. Retail stocks were par-
ticularly weak in December when holiday sales did not meet expectations. Some
of the top performing stocks in the fund were Philip Morris, IBM, MMM, First
Chicago and Exxon.
The INVESCO Advisor Equity Fund utilizes a "bottom up" approach to stock se-
lection which avoids attempts to forecast the economy or interest rates. Our
discipline evaluates each company's historical profitability relative to its
current price. Holdings include large and medium sized, high quality compa-
nies. The portfolio is well diversified to reduce risk and provide for partic-
ipation in the long term growth of the equity markets.
We continue to maintain a conservative value bias in the fund. Relative to the
market, the fund has higher quality securities, a higher dividend yield, and a
lower price/earnings ratio. This will help the portfolio weather a difficult
market.
EQUITY FUND
TOTAL REVENUE PERFORMANCE*
[LOGO OF CHART A APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Advisor S&P 500 CPI Treasury Bill
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1986 25,000 25,000 25,000 25,000
1987 26,800 31,053 26,239 26,550
1988 30,558 36,211 27,300 28,438
1989 37,219 47,784 28,539 30,915
1990 35,827 46,303 30,511 33,407
1991 47,861 60,411 31,375 35,313
1992 50,178 65,014 32,330 36,573
1993 54,774 71,550 33,179 37,741
1994 56,247 72,471 34,052 39,420
1995 73,279 99,619 34,948 41,714
1996 85,861 122,491 36,119 43,908
- ----------------------------------------------------------------------------
</TABLE>
INVESCO Advisor Equity Fund's average annual total returns for the periods
ended December 31, 1996 are:*
1 year: 17.17%; 3 years: 16.17%; 5 years: 12.40%;
and, 10 years: 13.13%
INVESCO ADVISOR MULTIFLEX FUND
MARKET PERSPECTIVE
Real Estate was the top performing asset class in 1996. Boosted by strong
fourth quarter return performance of 18.9%, equity REITs were up 35.3% for the
year. Large capitalization stocks turned in another exceptional year with a
total return of 23% and small capitalization stocks, while trailing their
larger counterparts, still were up 16.5% for the year. International markets
and bonds were the laggards producing only 6.1% and 2.9% returns respectively.
PORTFOLIO COMMENTS
The INVESCO Advisor MultiFlex Fund registered another year of solid results
in 1996. The total return for the fund was 17.0% which exceeded the 16.8%
MultiFlex benchmark*. The outperformance was due to two main reasons. First,
equities were emphasized over bonds because of above average expected return
spreads compared to historical norms. Additionally, stock selection has been
particularly strong in real estate, international stocks and small capitaliza-
tion stocks with all three of these asset classes outperforming their respec-
tive benchmark. Our international stocks have been particularly strong because
of an overweighted position in several strong European countries (Germany,
Switzerland and the Netherlands) and an underweighting in the Japanese market
which was in negative return territory for the year.
The LARGE CAPITALIZATION STOCK portion of the MultiFlex Fund was up 20.2%
for the year. The fund was underweighted in technology stocks which resulted
in a slight underperformance relative to the market. The solid value charac-
teristics of the large capitalization component, however, should aid results
in any market correction. The REAL ESTATE COMPONENT of the fund outperformed
the NAREIT (National Association of Real Estate Investment Trust) Equity In-
dex, 40.7% versus 35.2%. Office REITs lead the charge as the recovery from the
cyclical low in occupancy during the early '90s continued in most markets. The
INTERNATIONAL EQUITY component exceeded the EAFE (Europe, Australia, Far East)
Index by a wide margin, 24.3% versus 6.4% due to good country allocation as
noted above and also due to good stock selection. The SMALL CAPITALIZATION
PORTION of the fund beat the Russell 2000 Index 17.8% versus 16.5%. This is
the third year in a row of
3
<PAGE>
small cap underperformance which has made this group more attractive on a val-
uation basis. The FIXED INCOME component was slightly below the benchmark due
to our more conservative maturity decision and the lower level of income gen-
erated by the portfolio relative to the index. At December 31, 1996 our target
asset allocation was: small capitalization stocks, 26.0%; international
stocks, 20%; real estate securities, 20%; large capitalization stocks, 17.5%
and fixed income 16.5%.
MULTIFLEX FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Advisor MultiFlex Benchmark* CPI Treasury Bill
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------
11/93 25,000 25,000 25,000 25,000
12/93 25,115 25,613 25,050 25,065
12/94 24,858 26,050 25,709 26,180
12/95 30,226 31,810 26,385 27,703
12/96 35,373 33,137 27,269 29,161
- ----------------------------------------------------------------------
</TABLE>
INVESCO Advisor MultiFlex Fund's average annual total returns for the periods
ended December 31, 1996 are:*
1 year: 17.03%; 3 years 12.09%; and, since inception: 11.75%
INVESCO ADVISOR INTERNATIONAL VALUE FUND
MARKET PERSPECTIVE
European stocks generally kept pace with the U.S. market, returning better
than 20% for the year. Japan continued to lag substantially, however, falling
by 15% in 1996 due to sluggish demand and a meaningful fall in the yen. Al-
though the more developed markets of Southeast Asia returned over 20%, the
EAFE (Europe, Australia, Far East) Index, weighted heavily in Japan, managed
to gain only 6%.
PORTFOLIO COMMENTS
The International Value Fund was up 21% in 1996, exceeding the EAFE bench-mark
by a wide margin. Approximately half of the overperformance was due to good
country allocation and about half to good stock selection. As a "bottom-up"
value oriented manager, INVESCO's emphasis is on security selection and we focus
on being well diversified by both country and industry sector in order to reduce
overall risk.
The fund was overweighted in several European countries such as the Nether-
lands, Germany, Switzerland and Spain. Stocks such as Nestle, Unilever, Bayer,
BASF, and Repsol were exceptional performers for the year. The International
Value Fund was significantly underweighted in Japan. While Japanese stocks were
down about 15% for the year, INVESCO's Japa-nese stocks including Fuji, Toyota
and Canon were actually up about 3% in 1996.
European markets were bolstered by very strong bond markets in 1996, owing
to the financial world's increasing focus on the impending European Monetary
Union. The rally in Continental bonds was especially impressive given the sub-
par year in fixed income performance in the United States. Beleaguered invest-
ors in Japanese equities suffered in 1996 even in the face of a very strong
rally in government bonds, which fell to an all-time low yield of 2.4% at
year-end. Recovering economic activity was no panacea for what continues to be
a difficult operating environment for most of corporate Japan. The Pacific Rim
markets excluding Japan were a much more positive picture. Hong Kong and Ma-
laysia played their traditional role as regional leaders, with returns of 33%
and 26%, respectively. Clearly market sentiment has taken a more optimistic
view of Hong Kong's approaching reversion to China, which was quantified by a
rise in luxury apartment values on the island of over 30% during the year.
INTERNATIONAL VALUE FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH GOES HERE]
<TABLE>
<CAPTION>
Invesco Advisor EAFE CPI Treasury Bill
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------
5/95 25,000 25,000 25,000 25,000
12/95 27,818 27,295 25,302 25,811
12/96 33,657 28,949 26,150 27,168
- ----------------------------------------------------------------
</TABLE>
INVESCO Advisor International Value Fund's average annual total return for the
period ended December 31, 1996 is:* 1 year: 20.99%; and, since inception (May
1, 1995): 19.47%
4
<PAGE>
INVESCO ADVISOR REAL ESTATE FUND
MARKET PERSPECTIVE
Boosted by strong fourth quarter return performance of 18.9%, 1996 was an
exceptional year for the REIT market. Total return for the year of 35.3%, as
reported by the NAREIT Equity Index, exceeded all other broad measures of
stock performance. The exceptional performance may in part be explained by in-
vestor interest in the diversification benefits of REITs relative to the S&P
500. During July's broader market volatility, the S&P 500 and the Russell 2000
(small capitalization stocks) Index declined by -4.4% and -8.7%, respectively.
In contrast, REITs were up a modest 0.4% during July. Real estate securities
are tending to perform more like their underlying real estate earnings and
less like the general stock market.
PORTFOLIO COMMENTS
Total return for the INVESCO Advisor Real Estate Fund was 36.4% for 1996.
During the year, the fund benefited from being appropriately overweighted in
the hotel and industrial/office sectors. Since inception (5/1/95), the Real
Estate Fund has produced an average annual return of 26.9%.
During 1996, following a pattern similar to that of 1995, REITs, which oper-
ate in the office (+51.8%) and hotel (+49.2%) sectors, were again the star
performers. Another strong sector, regional mall REITs (+44.6%) recovered from
a dismal 1995. Returns are generally reflecting the improved real estate fun-
damentals being experienced by REITs which operate in these property sectors.
We believe there are four primary reasons which continue to make REITs wor-
thy of investment consideration. The first reason is a high dividend yield.
The second factor that makes REITs a worthy consideration is solid real estate
fundamentals. The third factor is portfolio diversification. And finally,
long-term REIT industry growth is quite favorable.
REAL ESTATE FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Advisor Real Estate Fund NAREIT CPI Treasury Bill
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
05/1/95 25,000 25,000 25,000 25,000
12/95 27,282 28,859 25,302 25,811
12/96 37,220 39,034 26,150 27,168
- --------------------------------------------------------------------------------------
</TABLE>
INVESCO Advisor Real Estate Fund's average annual total returns for the period
ended December 31, 1996 is:*
1 year: 36.43%; and, since inception (May 1, 1995): 26.89%
INVESCO ADVISOR INCOME FUND
MARKET PERSPECTIVE
The Lehman Government/Corporate Index return was a lackluster 2.9% in 1996
as interest rates generally rose. The bond market was a roller coaster ride
during the year with long treasury bonds starting out at 5.9%, and then going
to 7.2% in June before settling back to 6.6% at year-end. Not surprisingly,
this pattern was similar to that of Gross Domestic Product growth rates. The
latest Consumer Price Index figures are also causing a bit of concern to bond-
holders, rising to a 3.3% rate after bottoming at 2.3% in May, 1994.
PORTFOLIO COMMENTS
The INVESCO Advisor Income Fund posted a return of -1.2% for 1996. Because
of poor returns in the first half of the year when interest rates were rising,
the fund trailed the broader fixed income benchmarks.
The fund's investment discipline revolves around three factors: the portfo-
lio's average maturity, the sector allocation, and individual security selec-
tions. The fund's maturity strategy is slightly defensive, which means that
its average maturity (currently 6.7 years) is a little shorter than the mar-
ket's. This strategy generally provides more protection in down or bearish
markets where interest rates are rising and bond prices are falling. The sec-
tor allocation is
5
<PAGE>
determined by the relative attractiveness of corporate bonds and mortgage secu-
rities compared with U.S. Treasury
Securities. The fund is primarily invested in high quality, government bonds.
INCOME FUND
TOTAL RETURN PERFORMANCE*
[LOGO OF GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Invesco Adviser LBG/CBI CPI Treasury Bill
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
12/31/86 25,000 25,000 25,000 25,000
1987 24,775 25,573 26,239 26,550
1988 26,160 27,511 27,300 28,438
1989 28,548 31,428 28,539 30,915
1990 30,781 34,030 30,511 33,407
1991 34,616 39,519 31,375 35,313
1992 36,257 42,515 32,330 36,573
1993 38,936 47,145 33,179 37,741
1994 38,236 45,472 34,052 39,420
1995 46,311 54,220 34,948 41,714
1996 45,742 55,787 36,119 43,908
- -----------------------------------------------------------------------
</TABLE>
INVESCO Advisor Income Fund's average annual total returns for the periods
ended December 31, 1996 are:*
1 year: -1.23%; 3 years: 5.52%; 5 years: 5.73%;
and, 10 years: 6.23%
*Total return assumes reinvestment of dividends and capital gain distribu-
tions. Past performance is not a guarantee of future results. Investment return
and principal value will vary so that, when redeemed, an investor's shares may
be worth more or less than when purchased. The S&P 500 is an unmanaged index of
common stocks considered representative of the broad market. The Lehman
Government/Corporate Index (LBG/CBI) is an unmanaged index considered represen-
tative of the broad bond market. Consumer Price Index (CPI) is a representative
index of inflation in the economy. European Australian, Far East (EAFE) Index
is an unmanaged index of stocks considered representative of foreign markets.
National Association of Real Estate Investment Trust (NAREIT) Index is an un-
managed index of common stocks of all tax-qualified equity REITs listed on ma-
jor U.S. exchanges or OTC. Flex Benchmark is 60% S&P 500 and 40% LBG/CBI.
MultiFlex Benchmark is 20% S&P 500, 20% LBG/CBI, 20% Russell 2000 Index (an in-
dex of the 2,000 smallest common stocks), 20% NAREIT and 20% EAFE.
INVESCO Advisor Funds, Inc.
STATEMENT OF INVESTMENT SECURITIES
December 31, 1996
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR FLEX FUND
COMMON STOCKS 68.17%
BASIC MATERIALS 2.53%
Dow Chemical Co........................................ 60,000 $ 4,702,500
Imperial Chemical Industries PLC, ADR.................. 50,000 2,600,000
Imperial Tobacco Group PLC, ADR*....................... 87,500 1,129,030
Westvaco Corp.......................................... 135,000 3,881,250
------------
12,312,780
------------
CAPITAL GOODS 7.07%
Boeing Co.............................................. 60,000 6,382,500
COMPAQ Computer Corp.*................................. 100,000 7,425,000
General Electric Co.................................... 75,000 7,415,625
Lockheed Martin Corp................................... 70,000 6,405,000
Snap-On Tools Corp..................................... 60,000 2,137,500
Whirlpool Corp......................................... 100,000 4,662,500
------------
34,428,125
------------
CONSUMER CYCLICAL 9.39%
Deluxe Corp............................................ 150,000 4,912,500
Ford Motor Co.......................................... 175,000 5,578,125
Gannett Co., Inc....................................... 50,000 3,743,750
K Mart Corp.*.......................................... 250,000 2,593,750
Liz Claiborne, Inc..................................... 100,000 3,862,500
McDonald's Corp........................................ 110,000 4,977,500
Penney (J.C.) Co., Inc................................. 85,000 4,143,750
Reebok International, Ltd.............................. 100,000 4,200,000
Rite-Aid Corp.......................................... 75,000 2,981,250
Tandy Corp............................................. 60,000 2,640,000
V.F. Corp.............................................. 90,000 6,075,000
------------
45,708,125
------------
CONSUMER STAPLES 17.28%
Abbott Laboratories.................................... 100,000 5,075,000
American Brands, Inc................................... 110,000 5,458,750
American Home Products Corp............................ 100,000 5,862,500
Anheuser-Busch Cos., Inc............................... 150,000 6,000,000
Archer-Daniels-Midland Co.............................. 300,000 6,600,000
Columbia/HCA Healthcare, Inc........................... 150,000 6,112,500
Fleming Cos., Inc...................................... 100,000 1,725,000
Genuine Parts Co....................................... 100,000 4,450,000
Heinz (H.J.) Co........................................ 150,000 5,362,500
Lilly (Eli) & Co....................................... 90,000 6,570,000
Mylan Laboratories, Inc................................ 350,000 5,862,500
Philip Morris Cos., Inc................................ 65,000 7,320,625
Schering-Plough Corp................................... 100,000 6,475,000
</TABLE>
6
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR FLEX FUND (CONTINUED)
SuperValu, Inc......................................... 150,000 $ 4,256,250
Unilever N.V........................................... 40,000 7,010,000
------------
84,140,625
------------
DIVERSIFIED 4.89%
Cognizant Corp......................................... 75,000 2,475,000
Hanson PLC, ADR........................................ 350,000 2,362,500
Minnesota Mining & Manufacturing Co.................... 70,000 5,801,250
National Service Industries, Inc....................... 100,000 3,737,500
Phelps Dodge Corp...................................... 70,000 4,725,000
Textron, Inc........................................... 50,000 4,712,500
------------
23,813,750
------------
ENERGY 4.80%
Amoco Corp............................................. 50,000 4,025,000
Exxon Corp............................................. 50,000 4,900,000
Repsol AS, ADR......................................... 200,000 7,625,000
Royal Dutch Petroleum Co............................... 40,000 6,830,000
------------
23,380,000
------------
FINANCE 12.07%
American General Corp.................................. 110,000 4,496,250
Dun & Bradstreet Corp.................................. 75,000 1,781,250
First Chicago NBD Corp................................. 150,000 8,062,500
First of America Bank Corp............................. 100,000 6,012,500
First Union Corp....................................... 50,000 3,700,000
Marsh & McLennan Cos., Inc............................. 50,000 5,200,000
Morgan Stanley Group, Inc.............................. 110,000 6,283,750
NationsBank Corp....................................... 65,000 6,353,750
Ohio Casualty Corp..................................... 150,000 5,325,000
SAFECO Corp............................................ 150,000 5,915,625
Wachovia Corp.......................................... 100,000 5,650,000
------------
58,780,625
------------
TECHNOLOGY 3.76%
Computer Associates International, Inc................. 100,000 4,975,000
Hewlett-Packard Co..................................... 100,000 5,025,000
International Business Machines Corp................... 55,000 8,305,000
------------
18,305,000
------------
TRANSPORTATION & SERVICES 0.94%
Browning-Ferris Industries, Inc........................ 175,000 4,593,750
------------
UTILITIES 5.44%
Edison International Corp.............................. 350,000 6,956,250
GPU Corp............................................... 175,000 5,884,375
NYNEX Corp............................................. 90,000 4,331,250
Telefonica de Espana, ADR.............................. 75,000 5,193,750
Telefonos de Mexico, "L", ADR.......................... 125,000 4,125,000
------------
26,490,625
------------
TOTAL COMMON STOCKS
(Cost $227,149,703)................................... 331,953,405
------------
PREFERRED STOCKS 0.98%
TRANSPORTATION & SERVICES 0.98%
Illinois Central Corp. (Cost $3,843,152)............ 150,000 $ 4,800,000
------------
TOTAL COMMON & PREFERRED STOCKS
(Cost $230,992,855)................................ 336,753,405
------------
FIXED INCOME SECURITIES 29.67%
U.S. GOVERNMENT OBLIGATIONS 22.60%
U.S. TREASURY NOTES
6.750%, 02/28/1997................................. $ 8,000,000 8,012,504
6.125%, 03/31/1998................................. 10,000,000 10,021,880
7.125%, 10/15/1998................................. 5,000,000 5,100,000
8.875%, 02/15/1999................................. 11,250,000 11,900,396
6.750%, 06/30/1999................................. 5,000,000 5,087,500
6.375%, 07/15/1999................................. 10,000,000 10,093,750
8.750%, 08/15/2000................................. 14,000,000 15,172,500
7.875%, 08/15/2001................................. 7,000,000 7,461,566
7.500%, 05/15/2002................................. 4,500,000 4,758,750
6.500%, 08/15/2005................................. 5,000,000 5,034,375
9.375%, 02/15/2006................................. 8,000,000 9,625,000
9.250%, 02/15/2016................................. 9,000,000 11,418,750
7.250%, 08/15/2022................................. 6,000,000 6,346,878
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $107,619,851)................................ 110,033,849
------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS 5.12%
FEDERAL HOME LOAN MORTGAGE CORP. GOLD
6.500%, 07/01/2001, Pool #G50362................... 3,901,506 3,895,431
8.000%, 10/01/2010, Pool #G10518................... 2,934,034 3,019,306
------------
6,914,737
------------
FEDERAL NATIONAL MORTGAGE ASSN.
8.500%, 03/01/2010, Pool #313136................... 2,905,382 3,022,506
6.500%, 06/01/2011, Pool #250579................... 2,923,135 2,870,154
6.500%, 08/01/2026, Pool #313097................... 4,924,348 4,698,138
------------
10,590,798
------------
GOVERNMENT NATIONAL MORTGAGE ASSN.
6.500%, 10/15/2008, Pool #354668................... 1,432,577 1,413,774
7.000%, 10/15/2008, Pool #372807................... 1,263,648 1,268,782
6.000%, 11/15/2008, Pool #365945................... 1,465,885 1,415,495
7.500%, 03/15/2026, Pool #417287................... 3,338,349 3,340,435
------------
7,438,486
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $25,009,362)................................. 24,944,021
------------
CORPORATE BONDS 1.95%
FINANCE 0.51%
NationsBank Corp., 5.375%, 04/15/2000............... 1,550,000 1,502,550
</TABLE>
7
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR FLEX FUND (CONTINUED)
National City Corp., 7.200%, 05/15/2005................ $ 1,000,000 $ 1,007,485
------------
2,510,035
------------
INDUSTRIAL 0.83%
ConAgra, Inc., 9.750%, 11/01/1997...................... 1,000,000 1,030,537
Ford Motor Co., 7.500%, 11/15/1999..................... 750,000 770,165
Rockwell International, Inc., 6.625%, 06/01/2005....... 1,500,000 1,477,484
Wal-Mart Stores, Inc., 5.500%, 03/01/1998.............. 750,000 746,197
------------
4,024,383
------------
UTILITIES 0.61%
Pennsylvania Power & Light Co., 6.875%, 02/01/2003..... 1,000,000 1,000,402
Pennsylvania Power & Light Co., 6.550%, 03/01/2006..... 1,900,000 1,826,729
Union Electric Co., 6.750%,
10/15/1999............................................ 150,000 151,531
------------
2,978,662
------------
TOTAL CORPORATE BONDS
(Cost $9,731,554)..................................... 9,513,080
------------
TOTAL FIXED INCOME SECURITIES
(Cost $142,360,767)................................... 144,490,950
------------
SHORT TERM INVESTMENTS 1.18%
United Missouri Bank, Money Market Fiduciary+ 4.900%... 5,737,117 5,737,117
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $5,737,117)..................................... 5,737,117
------------
TOTAL INVESTMENTS
(100.00%) (Cost $379,090,739#)........................ $486,981,472
============
INVESCO ADVISOR EQUITY FUND
COMMON STOCKS 94.76%
BASIC MATERIALS 2.88%
Great Lakes Chemical Corp.............................. 20,000 $ 935,000
Imperial Chemical Industries PLC, ADR.................. 33,200 1,726,400
Westvaco Corp.......................................... 45,000 1,293,750
------------
3,955,150
------------
CAPITAL GOODS 9.95%
Boeing Co.............................................. 28,400 3,021,050
Emerson Electric Co.................................... 12,000 1,161,000
Lockheed Martin Corp................................... 35,860 3,281,190
Pitney Bowes, Inc...................................... 25,700 $ 1,400,650
Raytheon Co............................................ 39,400 1,896,125
Unifi, Inc............................................. 40,000 1,285,000
WMX Technologies, Inc.................................. 50,000 1,631,250
------------
13,676,265
------------
CONSUMER CYCLICAL 12.29%
Circuit City Stores, Inc............................... 54,000 1,626,750
Cooper Tire & Rubber Co................................ 62,000 1,224,500
Disney (Walt) Co....................................... 30,400 2,116,600
Gap, Inc............................................... 50,000 1,506,250
Mattel, Inc............................................ 50,000 1,387,500
Maytag Corp............................................ 86,900 1,716,275
McDonald's Corp........................................ 53,400 2,416,350
Penney (J.C.) Co., Inc................................. 40,000 1,950,000
Russell Corp........................................... 56,000 1,666,000
Shaw Industries, Inc................................... 109,000 1,280,750
------------
16,890,975
------------
CONSUMER STAPLES 21.19%
Abbott Laboratories.................................... 50,400 2,557,800
American Home Products Corp............................ 42,000 2,462,250
Columbia/HCA Healthcare, Inc........................... 70,200 2,860,650
Giant Food, Inc., Cl. A................................ 60,000 2,070,000
Heinz (H.J.) Co........................................ 58,350 2,086,013
Kimberly-Clark Corp.................................... 20,000 1,905,000
Lilly (Eli) & Co....................................... 35,400 2,584,200
Merck & Co., Inc....................................... 41,900 3,320,575
Mylan Laboratories..................................... 77,000 1,289,750
PepsiCo, Inc........................................... 85,000 2,486,250
Philip Morris Cos., Inc................................ 28,300 3,187,287
Schering-Plough Corp................................... 35,600 2,305,100
------------
29,114,875
------------
DIVERSIFIED 8.25%
American Brands, Inc................................... 50,000 2,481,250
Cognizant Corp......................................... 40,000 1,320,000
General Electric Co.................................... 29,000 2,867,375
Minnesota Mining & Manufacturing Co.................... 20,000 1,657,500
Textron, Inc........................................... 32,000 3,016,000
------------
11,342,125
------------
ENERGY 6.53%
Amoco Corp............................................. 24,600 1,980,300
Exxon Corp............................................. 22,000 2,156,000
Repsol AS, ADR......................................... 60,000 2,287,500
Royal Dutch Petroleum Co............................... 14,900 2,544,175
------------
8,967,975
------------
FINANCE 18.96%
American General Corp.................................. 60,000 2,452,500
American International Group, Inc...................... 23,100 2,500,575
Boatmen's Bancshares, Inc.............................. 35,000 2,257,500
Chubb Corp............................................. 25,000 1,343,750
</TABLE>
8
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR EQUITY FUND (CONTINUED)
Dun & Bradstreet Corp.................................. 60,000 $ 1,425,000
Federal National Mortgage Assn......................... 40,000 1,490,000
First Chicago NBD Corp................................. 53,800 2,891,750
First of America Bank Corp............................. 40,000 2,405,000
First Union Corp....................................... 30,000 2,220,000
General RE Corp........................................ 13,500 2,129,625
Jefferson-Pilot Corp................................... 24,000 1,359,000
Morgan Stanley Group, Inc.............................. 37,000 2,113,625
SAFECO Corp............................................ 37,000 1,459,187
------------
26,047,512
------------
TECHNOLOGY 9.66%
COMPAQ Computer Corp.*................................. 32,000 2,376,000
Computer Associates International, Inc................. 55,000 2,736,250
Hewlett-Packard Co..................................... 56,000 2,814,000
International Business Machines Corp................... 18,000 2,718,000
Xerox Corp............................................. 50,000 2,631,250
------------
13,275,500
------------
UTILITIES 5.05%
CINergy Corp........................................... 61,000 2,035,875
Southern New England Telecommunications Corp........... 60,000 2,332,500
Telefonos de Mexico, "L", ADR.......................... 40,800 1,346,400
Texas Utilities Co..................................... 30,000 1,222,500
------------
6,937,275
------------
TOTAL COMMON STOCKS
(Cost $86,731,704).................................... 130,207,652
------------
PREFERRED STOCK 1.08%
TRANSPORTATION & SERVICES 1.08%
Illinois Central Corp.................................. 46,500 1,488,000
------------
TOTAL PREFERRED STOCK
(Cost $1,451,774)..................................... 1,488,000
------------
SHORT TERM INVESTMENTS 4.16%
COMMERCIAL PAPER 1.51%
Kellogg Co., 5.650%, 01/06/1997........................ $ 1,070,000 1,069,161
Gannett Co., 5.350%, 01/07/1997........................ 1,000,000 999,108
------------
TOTAL COMMERCIAL PAPER
(Cost $2,068,269)..................................... 2,068,269
------------
OTHER SECURITIES 2.65%
United Missouri Bank, Money Market Fiduciary+ 4.900%... 3,646,494 3,646,494
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $5,714,763)..................................... $ 5,714,763
------------
TOTAL INVESTMENTS
(100.00%) (Cost $93,898,241#)......................... $137,410,415
============
INVESCO ADVISOR MULTIFLEX FUND
COMMON STOCKS 78.81%
LARGE CAPITALIZATION EQUITIES 17.21%
Abbott Laboratories..................................... 17,650 $ 895,738
Air Products & Chemicals, Inc........................... 3,400 235,025
American Brands, Inc.................................... 13,000 645,125
American General Corp................................... 18,200 743,925
American Home Products Corp............................. 11,000 644,875
American International Group, Inc....................... 6,950 752,337
Amoco Corp.............................................. 4,000 322,000
Archer-Daniels-Midland Co............................... 37,800 831,600
Atlantic Richfield Co................................... 3,900 516,750
Boatmen's Bancshares, Inc............................... 16,600 1,070,700
Boeing Co............................................... 3,400 361,675
Bristol-Myers Squibb Co................................. 8,950 973,313
Chubb Corp.............................................. 2,900 155,875
Circuit City Stores, Inc................................ 14,000 421,750
Columbia/HCA Healthcare, Inc............................ 22,828 930,241
COMPAQ Computer Corp.*.................................. 11,400 846,450
Computer Associates International, Inc.................. 10,400 517,400
Comsat Corp............................................. 6,200 152,675
Cooper Tire & Rubber Co................................. 22,300 440,425
Disney (Walt) Co........................................ 5,000 348,125
Dover Corp.............................................. 10,850 545,212
Dow Chemical Co......................................... 6,200 485,925
DTE Energy Co........................................... 23,000 744,625
Dun & Bradstreet Corp................................... 14,100 334,875
Emerson Electric Co..................................... 8,800 851,400
Exxon Corp.............................................. 8,700 852,600
Federal National Mortgage Assn.......................... 24,300 905,175
First Chicago NBD Corp.................................. 17,000 913,750
Ford Motor Co........................................... 16,600 529,125
Gannett Co., Inc........................................ 7,000 524,125
General Electric Co..................................... 5,500 543,813
General RE Corp......................................... 3,800 599,450
Great Lakes Chemical Corp............................... 13,000 607,750
Heinz (H.J.) Co......................................... 19,000 679,250
Hewlett-Packard Co...................................... 18,400 924,600
International Business Machines Corp.................... 4,700 709,700
Jefferson-Pilot Corp.................................... 2,600 147,225
Johnson & Johnson....................................... 10,800 537,300
Kimberly-Clark Corp..................................... 9,100 866,775
Lilly (Eli) & Co........................................ 7,500 547,500
Lockheed Martin Corp.................................... 9,616 879,864
Marsh & McLennan Cos., Inc.............................. 4,025 418,600
Mattel, Inc............................................. 17,000 471,750
McDonald's Corp......................................... 16,000 724,000
Merck & Co., Inc........................................ 9,100 721,175
Minnesota Mining & Manufacturing Co..................... 9,000 745,875
Morgan Stanley Group, Inc............................... 9,000 514,125
Norfolk Southern Corp................................... 3,500 306,250
</TABLE>
9
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
Penney (J.C.) Co., Inc................................. 13,375 $ 652,031
PepsiCo, Inc........................................... 28,350 829,237
Phelps Dodge Corp...................................... 8,500 573,750
Philip Morris Cos., Inc................................ 9,750 1,098,094
Pitney Bowes, Inc...................................... 9,600 523,200
Ralston Purina Group................................... 12,100 887,838
Raytheon Co............................................ 20,000 962,500
Rite Aid Corp.......................................... 18,000 715,500
Royal Dutch Petroleum Co............................... 6,900 1,178,175
Russell Corp........................................... 5,100 151,725
SAFECO Corp............................................ 26,300 1,037,206
Salomon, Inc........................................... 13,000 612,625
Schering-Plough Corp................................... 15,050 974,488
Shaw Industries, Inc................................... 13,000 152,750
Southern Co............................................ 12,500 282,813
Southern New England
Telecommunications Corp............................... 23,350 907,731
Texas Utilities Co..................................... 11,000 448,250
Textron, Inc........................................... 10,000 942,500
Vulcan Materials Co.................................... 11,000 669,625
Wachovia Corp.......................................... 10,000 565,000
Wal-Mart Stores, Inc................................... 10,500 240,187
Westvaco Corp.......................................... 18,000 517,500
Whirlpool Corp......................................... 11,500 536,188
WMX Technologies, Inc.................................. 22,500 734,062
Xerox Corp............................................. 14,500 763,062
------------
46,393,855
------------
SMALL CAPITALIZATION EQUITIES 23.94%
Access Health, Inc.*................................... 4,100 183,475
ACX Technologies, Inc.*................................ 10,200 202,725
Advanced Technology Laboratories, Inc.*................ 12,500 387,500
Albank Financial Corp.................................. 15,840 496,980
Alberto-Culver Co., Cl. B.............................. 4,900 235,200
AMC Entertainment, Inc.*............................... 11,800 169,625
AMERCO*................................................ 400 14,000
American Bankers Insurance Group, Inc.................. 5,800 296,525
American Management Systems, Inc.*..................... 15,500 379,750
AmeriSource Health Corp., Cl. A*....................... 4,900 236,425
Amylin Pharmaceuticals, Inc.*.......................... 17,500 227,500
AptarGroup, Inc........................................ 6,700 236,175
Arvin Industries, Inc.................................. 5,800 143,550
Ashland Coal, Inc...................................... 8,300 230,325
Aspen Technologies, Inc.*.............................. 4,800 385,200
Associated Group, Inc., Cl. A*......................... 5,100 156,825
Astoria Financial Group Corp........................... 29,600 1,091,500
Baldor Electric Co..................................... 6,900 169,912
Ballard Medical Products............................... 14,200 264,475
Barr Laboratories, Inc.*............................... 6,200 $ 157,325
Belden, Inc............................................ 4,800 177,600
Bell Industries, Inc.*................................. 11,720 250,515
Bergen Brunswig Corp., Cl. A........................... 7,700 219,450
Bindley Western Industries, Inc........................ 18,900 366,188
Bio-Rad Laboratories, Inc., Cl. A*..................... 6,450 193,500
Black Box Corp.*....................................... 4,200 173,250
Blount International, Inc.............................. 5,100 195,712
BMC Industries, Inc.................................... 5,900 185,850
Boole & Babbage, Inc.*................................. 18,000 450,000
Borders Group, Inc.*................................... 3,600 129,150
Borg-Warner Automotive, Inc............................ 21,800 839,300
Cablevision Systems Corp.*............................. 5,500 168,437
Cabot Oil & Gas Corp., Cl. A........................... 20,100 344,213
CACI International, Inc., Cl. A*....................... 13,900 291,900
Cal Fed Bancorp, Inc.*................................. 9,700 237,650
Camco International, Inc............................... 7,700 355,162
Carlisle Cos., Inc..................................... 4,900 296,450
Carmike Cinemas, Inc., Cl. A*.......................... 7,100 180,163
Carson Pirie Scott & Co.*.............................. 7,800 196,950
Carter-Wallace, Inc.................................... 22,400 350,000
CCB Financial Corp..................................... 5,100 348,075
Centex Construction Products, Inc...................... 9,400 169,200
Centex Corp............................................ 16,500 620,812
Central Louisiana Electric Co., Inc.................... 1,300 35,913
Central Maine Power Co................................. 16,000 186,000
Central Newspapers, Inc., Cl. A........................ 9,900 435,600
Chesapeake Corp........................................ 23,200 727,900
CILCORP, Inc........................................... 1,700 62,262
Citrix Systems, Inc.*.................................. 400 15,625
CKE Restaurants, Inc................................... 14,900 536,400
CMAC Investment Corp................................... 6,200 227,850
Coast Savings Financial, Inc.*......................... 15,700 575,013
Commerce Group, Inc.................................... 20,300 512,575
Commercial Federal Corp................................ 5,800 278,400
Commonwealth Energy Systems............................ 10,400 244,400
Community First Bankshares, Inc........................ 10,600 291,500
Cullen Frost Bankers, Inc.............................. 26,000 864,500
Dallas Semiconductor Corp.............................. 300 6,900
Davox Corp.*........................................... 5,100 210,375
Dexter Corp............................................ 28,800 918,000
Dionex Corp. *......................................... 9,100 318,500
Dynatech Corp.*........................................ 3,400 150,450
Earthgrains Co......................................... 8,600 449,350
Energen Corp........................................... 5,200 157,300
Energy Ventures, Inc.*................................. 6,000 305,250
E'town Corp............................................ 5,100 161,287
Evans & Sutherland Computer Corp.*..................... 19,000 475,000
Fair Isaac & Co., Inc.................................. 6,000 234,750
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
FINOVA Group, Inc...................................... 5,400 $ 346,950
First Commercial Corp.................................. 3,142 116,647
First Midwest Bancorp, Inc............................. 11,500 375,187
Foamex International, Inc.*............................ 10,400 171,600
Fremont General Corp................................... 6,930 214,830
Frontier Insurance Group, Inc.......................... 10,810 413,482
Fuller (H.B.) Co....................................... 5,000 235,000
Furniture Brands International, Inc.*.................. 18,000 252,000
G & K Services, Inc., Cl. A............................ 10,900 411,475
Gerber Scientific, Inc................................. 22,900 340,638
Giddings & Lewis, Inc.................................. 20,400 262,650
Gilead Sciences, Inc.*................................. 17,700 442,500
Guarantee Life Cos., Inc............................... 7,600 140,600
Harland (John H.) Co................................... 9,200 303,600
Harnischfeger Industries, Inc.......................... 7,100 341,687
Hawaiian Electric Industries, Inc.......... ........... 13,100 473,238
Health Management Systems, Inc.*....................... 10,800 151,200
Heartland Express, Inc.*............................... 8,850 215,719
Hooper Holmes, Inc..................................... 300 5,213
Horace Mann Educators Corp............................. 13,200 532,950
IDEX Corp.............................................. 12,800 510,400
IES Industries, Inc.................................... 8,800 262,900
Illinois Central Corp.................................. 18,000 576,000
Imperial Credit Industries, Inc.*...................... 14,800 310,800
Integrated Systems, Inc.*.............................. 14,200 369,200
International Multifoods Corp.......................... 11,600 210,250
Interstate Power Co.................................... 9,300 269,700
Invacare Corp.......................................... 10,200 280,500
Ionics, Inc.*.......................................... 4,700 225,600
JLG Industries, Inc.................................... 9,100 145,600
JP Foodservice, Inc.................................... 7,100 197,912
Kellwood Co............................................ 11,300 226,000
Kinder Care Learning Centers, Inc.*.................... 41,900 785,625
Lands' End, Inc.*...................................... 13,000 344,500
Lawyers Title Corp..................................... 13,700 268,863
Lennar Corp............................................ 15,100 411,475
Level One Communications, Inc.*........................ 10,400 371,800
Lincare Holdings, Inc.*................................ 7,800 319,800
Logicon, Inc........................................... 5,200 189,800
Louis Dreyfus Natural Gas Corp.*....................... 200 3,425
Luby's Cafeterias, Inc................................. 10,400 206,700
Magna Group, Inc....................................... 12,200 359,900
Measurex Corp.......................................... 15,200 364,800
Medusa Corp............................................ 8,800 302,500
Meredith Corp.......................................... 12,300 648,825
Methode Electronics, Inc., Cl. A....................... 26,300 532,575
Miller (Herman), Inc................................... 11,400 645,525
Minnesota Power & Light Co............................. 8,300 228,250
Molecular Dynamics, Inc.*.............................. 18,600 199,950
Multicare Cos., Inc.*.................................. 25,250 511,312
NAC Re Corp............................................ 6,600 $ 223,575
National Data Corp..................................... 5,700 247,950
Nautica Enterprises, Inc.*............................. 10,100 255,025
Newpark Resources, Inc.*............................... 13,300 495,425
NeXstar Pharmaceuticals, Inc.*......................... 11,900 178,500
Norrell Corp........................................... 13,500 367,875
NVR, Inc.*............................................. 21,000 273,000
OEC Medical Systems, Inc.*............................. 21,700 325,500
Oneida, Ltd............................................ 29,700 534,600
Oneok, Inc............................................. 10,200 306,000
Orion Capital Corp..................................... 4,600 281,175
Palmer Wireless, Inc., Cl. A*.......................... 15,700 164,850
Periphonics Corp.*..................................... 26,600 778,050
PHH Corp............................................... 24,500 1,053,500
Poe & Brown, Inc....................................... 18,200 482,300
Precision Castparts Corp............................... 5,950 295,269
Presidential Life Corp................................. 19,300 232,806
Primadonna Resorts, Inc.*.............................. 26,500 450,500
Prime Hospitality Corp.*............................... 13,000 209,625
Protective Life Corp................................... 13,100 522,362
Provident Bancorp, Inc................................. 1,750 59,500
Pulitzer Publishing Co................................. 6,400 296,800
Quanex Corp............................................ 32,500 889,687
Quick and Reilly Group, Inc............................ 6,450 192,694
Raymond James Financial, Inc........................... 10,900 328,362
Reliance Group Holdings, Inc........................... 18,200 166,075
Renaissance Communications Corp.*...................... 23,200 829,400
Rexall Sundown, Inc.*.................................. 4,100 111,469
Riser Foods, Inc., Cl. A............................... 9,700 307,975
Robbins & Myers, Inc................................... 23,100 577,500
Rock-Tenn Co., Cl. A................................... 9,460 186,835
Ross Stores, Inc....................................... 11,400 570,000
Santa Fe Energy Resources*............................. 39,500 548,062
SCI Systems, Inc.*..................................... 3,800 169,575
Scotsman Industries, Inc............................... 9,000 212,625
Sequa Corp., Cl. A*.................................... 5,500 215,875
Shopko Stores, Inc..................................... 15,400 231,000
SIGCORP, Inc........................................... 7,300 252,762
Smith (A.O.) Corp...................................... 6,000 179,250
Snyder Oil Corp........................................ 39,700 689,788
Springs Industries, Inc., Cl. A........................ 11,400 490,200
St. John Knits, Inc.................................... 19,600 852,600
Stanley Furniture Co., Inc.*........................... 20,400 405,450
Stone & Webster, Inc................................... 14,900 469,350
Stratus Computer, Inc.*................................ 7,700 209,825
SunGard Data Systems, Inc.*............................ 7,200 284,400
Symbol Technologies, Inc.*............................. 10,100 446,925
Synopsys, Inc.*........................................ 5,700 263,625
Tech Data Corp.*....................................... 12,300 336,712
Texas Industries, Inc.................................. 4,100 207,563
The Sports Authority, Inc.*............................ 12,700 276,225
Thermo Ecotek Corp.*................................... 600 9,150
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
Tiffany & Co........................................... 6,200 $ 227,075
Transaction Systems Architects, Inc., Cl. A*........... 9,500 315,875
Tredegar Industries, Inc............................... 17,500 702,187
U. S. Bioscience, Inc.*................................ 18,100 228,513
U. S. Home Corp.*...................................... 10,800 280,800
UNC, Inc.*............................................. 21,600 259,200
United Stationers, Inc.*............................... 13,700 267,150
Universal Corp......................................... 11,300 363,012
Universal Health Services, Inc., Cl. B*................ 16,800 480,900
VideoServer, Inc.*..................................... 7,000 297,500
Waban, Inc.*........................................... 11,700 304,200
Washington National Corp............................... 16,900 464,750
Watson Pharmaceuticals, Inc.*.......................... 4,500 202,219
Werner Enterprises, Inc................................ 18,300 331,688
West Co., Inc.......................................... 19,100 539,575
WestAmerica Bancorp.................................... 15,500 895,125
Westpoint Stevens, Inc.*............................... 9,100 271,863
Wind River Systems*.................................... 1,800 85,275
Wisconsin Central Transportation Corp.*................ 4,800 190,200
Wolverine Tube , Inc.*................................. 5,200 183,300
World Fuel Services Corp............................... 28,200 627,450
Wynn's International, Inc.............................. 2,100 66,413
Yellow Corporation*.................................... 17,800 255,875
Zale Corp.*............................................ 9,400 179,775
20th Century Industries................................ 43,700 737,438
------------
64,515,776
------------
INTERNATIONAL EQUITIES 17.66%
ABN-AMRO Hldgs N.V., ADR............................... 12,000 779,771
AEGON N.V., ADR........................................ 30,000 1,897,500
Akzo Nobel N.V., ADR................................... 11,400 769,500
Amcor Ltd., ADR........................................ 25,000 637,500
Associated British Foods PLC, ADR...................... 115,000 953,488
Astra AB, ADR.......................................... 25,000 1,225,000
Banco Santander AS, ADR................................ 20,900 1,327,150
BASF AG, ADR........................................... 32,000 1,230,906
Bayer AG, ADR.......................................... 27,400 1,116,544
British Airways PLC, ADR............................... 10,000 1,027,500
British Telecommunications PLC, ADR.................... 10,000 686,250
Carlton Communications PLC, ADR........................ 20,000 890,000
Compagnie Cervecerias, ADR............................. 20,000 322,500
CRA Ltd., ADR.......................................... 15,000 941,100
CS Holding, ADR........................................ 30,000 768,030
Development Bank of Singapore, Ltd.,
ADR................................................... 8,000 432,320
Elsevier N.V., ADR..................................... 25,000 843,750
Empresa Nacional de Electridad AS, ADR................. 12,000 840,000
Fuji Photo Film Co., Ltd., ADR......................... 44,000 $ 1,452,000
Glaxo Wellcome PLC, ADR................................ 35,000 1,111,250
Groupe Danone, ADR*.................................... 18,000 500,659
Hitachi Ltd., ADR...................................... 12,000 1,110,000
Hong Kong Electric Holdings, ADR....................... 200,000 664,500
HSBC Holdings PLC, ADR................................. 5,000 1,069,813
Kirin Brewery Co., Ltd., ADR........................... 9,000 886,500
Konica Corp., ADR*..................................... 12,000 795,240
Koninklijke Ahold N.V., ADR............................ 27,300 1,685,775
LVMH (Moet-Hennessey Louis Vuitton), ADR............... 20,000 1,120,000
Marui Ltd., ADR........................................ 15,600 562,692
Matsushita Electric Industrial Co., Ltd., ADR.......... 6,000 979,500
National Australia Bank, Ltd., ADR..................... 25,000 1,471,875
Nestle AS, ADR......................................... 22,000 1,177,235
Novartis AG, ADR....................................... 26,666 1,522,095
Novo-Nordisk AS, ADR*.................................. 27,300 1,276,275
PowerGen PLC, ADR...................................... 20,000 790,000
Repsol AS, ADR......................................... 20,000 762,500
RWE Aktiengesellschaf AG, ADR.......................... 27,000 1,142,292
Sekisui House Ltd., ADR................................ 6,600 672,012
Shell Transport & Trading Co., ADR..................... 12,500 1,279,688
Societe Generale, ADR.................................. 30,000 647,463
South China Morning Post, ADR.......................... 150,000 620,550
Stet Societa Finanziaria Telefonica, ADR............... 15,000 665,625
Sun Hung Kai Properties, Ltd., ADR..................... 85,000 1,041,208
TDK Corp., ADR......................................... 12,100 795,575
Telefonica de Espana, ADR.............................. 15,000 1,038,750
Telefonos de Mexico, "L", ADR.......................... 15,000 495,000
Total, ADR............................................. 30,000 1,207,500
Toyota Motor Corp., ADR................................ 8,000 460,000
Unigate PLC, ADR....................................... 100,000 711,040
Unilever N.V........................................... 6,700 1,174,175
Vitro Sociedad Anonima, ADR............................ 1,160 6,380
------------
47,583,976
------------
REAL ESTATE EQUITIES 20.00%
American General Hospitality Corp...................... 58,400 1,387,000
Arden Realty Group, Inc................................ 77,400 2,147,850
Bay Apartment Communities, Inc......................... 55,300 1,990,800
Beacon Properties, Inc................................. 47,500 1,739,688
Cali Realty Corp....................................... 58,800 1,815,450
CarrAmerica Realty Corp................................ 38,400 1,123,200
CBL & Associates Properties, Inc....................... 62,400 1,614,600
Chelsea GCA Realty, Inc................................ 27,700 959,113
Duke Realty Investments, Inc........................... 46,600 1,794,100
Equity Residential Properties Trust--SBI............... 19,400 800,250
Essex Property Trust, Inc.............................. 36,100 1,060,438
FelCor Suite Hotels, Inc............................... 65,800 2,327,675
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
First Industrial Realty Trust, Inc.................... 69,800 $ 2,120,175
Gables Residential Trust--SBI......................... 74,100 2,148,900
Highwoods Properties, Inc............................. 43,900 1,481,625
Horizon Group, Inc.................................... 40,320 801,360
JDN Realty Corp....................................... 50,000 1,381,250
JP Realty, Inc........................................ 28,700 742,612
Kimco Realty Corp..................................... 48,050 1,675,744
Koger Equity, Inc.*................................... 107,300 2,011,875
Liberty Property Trust--SBI........................... 63,300 1,629,975
Meditrust Inc.--SBI................................... 27,100 1,084,000
Meridian Industrial Trust, Inc........................ 64,800 1,360,800
Merry Land & Investment Co., Inc...................... 57,000 1,225,500
MGI Properties........................................ 67,500 1,485,000
Nationwide Health Properties, Inc..................... 70,900 1,719,325
OMEGA Healthcare Investors, Inc....................... 6,100 202,825
Patriot American Hospitality, Inc..................... 45,000 1,940,625
Public Storage, Inc................................... 98,000 3,038,000
Regency Realty Corp................................... 29,000 761,250
RFS Hotel Investors, Inc.............................. 88,500 1,747,875
Security Capital Industrial Trust..................... 26,500 566,437
Shurgard Storage Centers, Inc......................... 19,500 577,688
Simon DeBartolo Group, Inc............................ 51,100 1,584,100
Spieker Properties, Inc............................... 30,600 1,101,600
Starwood Lodging Trust................................ 18,900 1,041,862
Sun Communities, Inc.................................. 27,100 934,950
Winston Hotels, Inc................................... 56,500 769,813
------------
53,895,330
------------
TOTAL COMMON STOCKS
(Cost $166,441,000).................................. 212,388,937
------------
FIXED INCOME SECURITIES 15.72%
U.S. GOVERNMENT OBLIGATIONS 7.70%
U.S. TREASURY NOTES
5.625%, 08/31/1997................................... $ 1,080,000 1,078,313
5.500%, 09/30/1997................................... 2,400,000 2,394,000
5.750%, 09/30/1997................................... 1,550,000 1,549,031
5.375%, 05/31/1998................................... 2,500,000 2,481,250
5.875%, 08/15/1998................................... 2,500,000 2,496,875
5.875%, 10/31/1998................................... 2,500,000 2,496,875
6.875%, 07/31/1999................................... 800,000 816,250
7.750%, 12/31/1999................................... 1,655,000 1,730,509
6.250%, 05/31/2000................................... 900,000 903,938
6.250%, 02/15/2003................................... 1,525,000 1,523,571
8.750%, 05/15/2017................................... 2,695,000 3,286,216
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $20,603,728)................................... 20,756,828
------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS 4.05%
Federal Home Loan Bank
6.075%, 01/22/1999................................... $ 2,000,000 $ 1,999,062
Federal Home Loan Mortgage Corp., 1393-C PAC, 6.000%,
01/15/2004........................................... 1,000,000 996,540
Federal Home Loan Mortgage Corp., Pool #380070,
9.000%, 01/01/2005................................... 345,030 360,233
Federal Home Loan Mortgage Corp., FHR 185-E PAC,
9.000%, 08/15/2006................................... 1,000,000 1,030,790
Federal Home Loan Mortgage Corp., Pool #554938,
8.000%, 08/01/2017................................... 382,419 389,709
FHA/VA, Pool
#140283 6.500%, 08/01/2003........................... 422,337 418,351
Federal National Mortgage Assn., FHR 1992-152 J PAC,
7.000%, 05/25/2006................................... 810,000 817,306
Federal National Mortgage Corp.,
92-24 H PAC, 7.500%, 11/25/2006...................... 1,000,000 1,018,800
Federal National Mortgage Assn., Pool #337190, 6.000%,
04/01/2011........................................... 674,193 648,279
Federal National Mortgage Assn., Pool #190723, 6.000%,
04/01/2024........................................... 1,538,528 1,428,428
Government National Mortgage Assn., 1996-13 G, 7.000%,
01/16/2007........................................... 1,000,000 1,008,590
Government National Mortgage Assn., Pool #398551,
6.500%, 04/15/2026................................... 838,221 799,716
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $10,925,718)................................... 10,915,804
------------
ASSET BACKED SECURITIES 1.30%
ContiMortgage Home Equity Loan Trust, 1995-4 A4,
6.330%, 10/15/2010................................... 500,000 498,805
NationsBank Auto Owner Trust, 6.375%, 07/15/2006...... 1,000,000 1,006,260
Olympic Automobile Receivables Trust, 1996-AA3,
5.700%, 04/15/2000................................... 1,000,000 997,160
Premier Auto Trust,
1996-4 A3 6.200%, 11/06/2000......................... 1,000,000 1,003,140
------------
TOTAL ASSET BACKED SECURITIES
(Cost $3,492,617).................................... 3,505,365
------------
CORPORATE BONDS 2.67%
Associates Corp., 7.750%, 02/15/2005.................. 800,000 855,421
BellSouth Telecommunications,
5.850%, 11/15/2045................................... 1,000,000 987,282
Beneficial Corp., 8.400%, 05/15/2008.................. 1,000,000 1,135,272
General Electric Capital Corp., 5.800% (Variable
Rate), 04/01/2008.................................... 1,100,000 1,182,712
</TABLE>
13
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR MULTIFLEX FUND (CONTINUED)
GTE Corp., 10.250%, 11/01/2020.......................... 620,000 $ 706,382
Motorola, Inc., 8.400%, 08/15/2031...................... 735,000 861,773
US West Capital Funding Corp., 6.310%, 11/01/2005....... 675,000 666,176
WMX Technologies, Inc., 6.220%, 04/30/2004.............. 750,000 801,366
------------
TOTAL CORPORATE BONDS
(Cost $7,061,450)...................................... 7,196,384
------------
TOTAL FIXED INCOME SECURITIES
(Cost $42,083,513)..................................... 42,374,381
------------
SHORT TERM INVESTMENTS 5.47%
United Missouri Bank, Money Market Fiduciary+ 4.900%.... 14,728,538 14,728,538
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $14,728,538)..................................... 14,728,538
------------
TOTAL INVESTMENTS
(100.00%) (Cost $223,253,051#)......................... $269,491,856
============
INVESCO ADVISOR INTERNATIONAL VALUE FUND
COMMON STOCKS 95.58%
BASIC MATERIALS 5.68%
BASF AG, ADR............................................ 30,000 $ 1,153,974
Cemex AS, "B", ADR...................................... 70,000 544,201
CRA Ltd., ADR........................................... 20,000 1,254,800
------------
2,952,975
------------
CONSUMER CYCLICAL 5.48%
Canon, Inc., ADR........................................ 8,000 880,000
Elsevier N.V., ADR...................................... 20,000 675,000
Marui Ltd., ADR......................................... 12,000 432,152
Toyota Motor Corp., ADR................................. 15,000 862,500
------------
2,849,652
------------
CONSUMER STAPLES 19.47%
Amcor Ltd., ADR......................................... 35,000 892,500
Associated British Foods PLC, ADR....................... 130,000 1,077,856
Dai Nippon Printing Co. Ltd., ADR....................... 5,000 874,472
Glaxo Wellcome PLC, ADR................................. 35,000 1,111,250
Groupe Danone, ADR*..................................... 20,000 556,288
J. Sainsbury PLC, ADR................................... 40,000 1,062,400
Kirin Brewery Co., Ltd., ADR............................ 8,000 788,000
Koninklijke Ahold N.V., ADR............................. 10,000 617,500
LVMH (Moet-Hennessey Louis Vuitton), ADR................ 20,000 1,120,000
Nestle AS, ADR......................................... 18,000 $ 963,193
Unilever N.V........................................... 6,000 1,051,500
------------
10,114,959
------------
DIVERSIFIED 14.55%
Bayer AG, ADR.......................................... 30,000 1,222,494
Elf Aquitaine, ADR..................................... 25,000 1,131,250
Kyocera Corp., ADR..................................... 7,000 854,000
Norsk Hydro AS, ADR.................................... 25,000 1,340,625
Novo-Nordisk AS, ADR*.................................. 25,000 1,168,750
RWE Aktiengesellschaf AG, ADR.......................... 21,000 888,449
Swire Pacific Ltd., ADR................................ 100,000 953,450
------------
7,559,018
------------
ENERGY 4.14%
Repsol AS, ADR......................................... 25,000 953,125
Royal Dutch Petroleum Co............................... 7,000 1,195,250
------------
2,148,375
------------
ELECTRONICS 7.60%
Carlton Communications PLC, ADR........................ 25,000 1,112,500
Fuji Photo Film Co., Ltd., ADR......................... 30,000 990,000
Hitachi Ltd., ADR...................................... 10,000 925,000
TDK Corp., ADR......................................... 14,000 920,500
------------
3,948,000
------------
FINANCE 15.96%
AEGON N.V., ADR........................................ 20,000 1,265,000
Banco Santander AS, ADR................................ 15,000 952,500
Development Bank of Singapore, ADR..................... 20,000 1,080,800
Den Danske Bank, ADR................................... 10,000 805,233
HSBC Holdings PLC, ADR................................. 5,000 1,069,813
ING Groep N.V., ADR.................................... 30,000 1,078,776
National Australia Bank, Ltd., ADR..................... 20,000 1,177,500
Societe Generale Paris, ADR............................ 40,000 863,285
------------
8,292,907
------------
PHARMACEUTICALS 5.49%
Astra AB, ADR.......................................... 25,000 1,225,000
Novartis AG, ADR*...................................... 28,466 1,624,996
------------
2,849,996
------------
REAL ESTATE & HOUSING 3.73%
Sekisui House Ltd., ADR................................ 7,000 711,639
Sun Hung Kai Properties Ltd., ADR...................... 100,000 1,224,950
------------
1,936,589
------------
TELECOMMUNICATIONS 7.60%
British Telecommunications PLC, ADR.................... 15,000 1,029,375
Stet Societa Finanziaria Telefonica, ADR............... 25,000 1,109,375
Telefonica de Espana, ADR.............................. 19,000 1,315,750
Telefonos de Mexico, "L", ADR.......................... 15,000 495,000
------------
3,949,500
------------
</TABLE>
14
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR INTERNATIONAL VALUE FUND (CONTINUED)
TRANSPORTATION & SERVICES 1.98%
British Airways PLC, ADR............................... 10,000 $ 1,027,500
------------
UTILITIES 3.90%
Empresa Nacional de Electridad AS, ADR................. 12,000 840,000
PowerGen PLC, ADR...................................... 30,000 1,185,000
------------
2,025,000
------------
TOTAL COMMON STOCKS
(Cost $42,538,247).................................... 49,654,471
------------
SHORT TERM INVESTMENTS 4.42%
United Missouri Bank, Money Market Fiduciary+ 4.900%... $ 2,294,787 2,294,787
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $2,294,787)..................................... 2,294,787 2,294,787
------------
TOTAL INVESTMENTS
(100.00%) (Cost $44,833,034#)......................... $ 51,949,258
============
</TABLE>
The Fund's Portfolio of Investments at December 31, 1996, was concentrated in
the following countries:
<TABLE>
<CAPTION>
% OF MARKET
COUNTRY INVESTMENT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
Australia................................................ 6.40% $ 3,324,800
Denmark.................................................. 2.25% 1,168,750
France................................................... 7.07% 3,670,823
Germany.................................................. 6.28% 3,264,917
Great Britain............................................ 16.70% 8,675,694
Hong Kong................................................ 3.91% 2,034,250
Italy.................................................... 2.14% 1,109,375
Japan.................................................... 18.22% 9,463,213
Mexico................................................... 0.95% 495,000
Netherlands.............................................. 12.87% 6,688,259
Norway................................................... 2.58% 1,340,625
Spain.................................................... 8.87% 4,605,576
Sweden................................................... 2.36% 1,225,000
Switzerland.............................................. 4.98% 2,588,189
United States............................................ 4.42% 2,294,787
------ -----------
TOTAL.................................................... 100.0% $51,949,258
====== ===========
</TABLE>
<TABLE>
<S> <C> <C>
INVESCO ADVISOR REAL ESTATE FUND
COMMON STOCKS 94.95%
DIVERSIFIED 4.78%
Glenborough Realty Trust, Inc........................... 23,000 $ 405,375
MGI Properties.......................................... 26,000 572,000
------------
977,375
------------
HEALTHCARE 4.35%
Meditrust, Inc.--SBI.................................... 6,000 240,000
Nationwide Health Properties, Inc....................... 26,800 649,900
------------
889,900
------------
INDUSTRIAL 12.94%
Duke Realty Investments, Inc............................ 15,250 587,125
First Industrial Realty Trust, Inc...................... 24,900 756,338
Liberty Property Trust--SBI............................. 23,150 596,112
Meridian Industrial Trust, Inc.......................... 24,400 512,400
Security Capital Industrial Trust....................... 9,000 192,375
------------
2,644,350
------------
OFFICE 20.30%
Arden Realty Group, Inc................................. 30,800 854,700
Beacon Properties, Inc.................................. 22,050 807,581
Brandywine Realty Trust--SBI............................ 1,800 35,100
Cali Realty Corp........................................ 26,700 824,363
CarrAmerica Realty Corp................................. 12,000 351,000
Highwoods Properties, Inc............................... 9,050 305,437
Koger Equity, Inc.*..................................... 29,600 555,000
Spieker Properties, Inc................................. 11,600 417,600
------------
4,150,781
------------
RECREATION 17.42%
American General Hospitality Corp....................... 28,500 676,875
FelCor Suite Hotels, Inc................................ 21,300 753,488
Patriot American Hospitality, Inc....................... 15,800 681,375
RFS Hotel Investors, Inc................................ 36,100 712,975
Starwood Lodging Trust.................................. 7,200 396,900
Winston Hotels, Inc..................................... 24,900 339,263
------------
3,560,876
------------
RESIDENTIAL 15.26%
Bay Apartment Communities, Inc.......................... 19,500 702,000
Equity Residential Properties Trust--SBI................ 6,400 264,000
Essex Property Trust, Inc............................... 22,200 652,125
Gables Residential Trust--SBI........................... 25,250 732,250
Merry Land & Investment Co., Inc........................ 25,800 554,700
Sun Communities, Inc.................................... 6,200 213,900
------------
3,118,975
------------
RETAIL 14.23%
CBL & Associates Properties, Inc........................ 18,550 479,981
Chelsea GCA Realty, Inc................................. 6,200 214,675
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Shares or
Principal
Description Amount Value
- -------------------------------------------------------------------------------
<S> <C> <C>
INVESCO ADVISOR REAL ESTATE FUND (CONTINUED)
Horizon Group, Inc................................ 19,400 $ 385,575
JDN Realty Corp................................... 13,600 375,700
JP Realty, Inc.................................... 10,400 269,100
Kimco Realty Corp................................. 9,450 329,569
Regency Realty Corp............................... 10,600 278,250
Simon DeBartolo Group, Inc........................ 18,600 576,600
------------
2,909,450
------------
SELF-STORAGE 5.67%
Public Storage, Inc............................... 29,700 920,700
Shurgard Storage Centers, Inc..................... 8,050 238,481
------------
1,159,181
------------
TOTAL COMMON STOCKS
(Cost $15,036,894)............................... 19,410,888
------------
SHORT TERM INVESTMENTS 5.05%
United Missouri Bank, Money Market Fiduciary+
4.900%........................................... $ 1,031,486 1,031,486
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,031,486)................................ 1,031,486
------------
TOTAL INVESTMENTS
(100.00%) (Cost $16,068,380#).................... $ 20,442,374
============
INVESCO ADVISOR INCOME FUND
FIXED INCOME SECURITIES 98.45%
U.S. GOVERNMENT OBLIGATIONS 70.14%
U.S. TREASURY NOTES
8.500%, 07/15/1997............................... $ 2,000,000 $ 2,028,750
6.125%, 03/31/1998............................... 2,100,000 2,104,595
8.000%, 08/15/1999............................... 1,000,000 1,047,188
6.375%, 01/15/2000............................... 2,000,000 2,017,500
7.500%, 11/15/2001............................... 1,750,000 1,842,423
6.375%, 08/15/2002............................... 1,600,000 1,610,501
6.250%, 02/15/2003............................... 1,900,000 1,898,219
10.750%, 08/15/2005.............................. 1,250,000 1,603,125
9.375%, 02/15/2006............................... 1,000,000 1,203,125
9.250%, 02/15/2016............................... 1,200,000 1,522,500
7.250%, 08/15/2022............................... 1,100,000 1,163,594
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $18,091,484)............................... 18,041,520
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 18.03%
FEDERAL HOME LOAN MORTGAGE CORP.
Pool #20009, 12.000%, 04/01/2000 ................ 6,709 $ 7,198
Gold Pool #G50362, 6.500%, 07/01/2001 ........... 487,688 486,929
Gold Pool #G10518, 8.000%, 10/01/2010 ................ $ 733,508 $ 754,826
------------
1,248,953
------------
FEDERAL NATIONAL MORTGAGE ASSN.
6.000%, 01/01/2009 Pool #50973........................ 71,753 68,995
6.000%, 04/01/2024 Pool #190723....................... 91,580 85,026
------------
154,021
------------
GOVERNMENT NATIONAL MORTGAGE ASSN.
6.500%, 10/15/2008 Pool #354668....................... 807,652 797,051
6.000%, 10/15/2008 Pool #360191....................... 490,314 473,460
7.000%, 10/15/2008 Pool #366622....................... 786,011 789,205
6.000%, 11/15/2008 Pool #370907....................... 352,466 340,350
7.500%, 03/15/2026 Pool #417287....................... 834,587 835,109
------------
3,235,175
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $4,743,781)..................................... 4,638,149
------------
CORPORATE BONDS 10.28%
FINANCE 3.83%
Commercial Credit Co., 5.550%, 02/15/2001.............. 500,000 481,460
National City Corp., 7.200%, 05/15/2005................ 500,000 503,742
------------
985,202
------------
INDUSTRIAL 6.45%
Waste Management, Inc., 6.375%, 07/01/1997............. 500,000 501,788
Ford Motor Credit Co., 9.250%, 06/15/1998.............. 35,000 36,486
Ford Motor Credit Co., 7.500%, 11/15/1999.............. 500,000 513,443
Rockwell International, Inc., 6.625%, 06/01/2005....... 500,000 492,494
GTE Corp., 10.250%, 11/01/2020......................... 100,000 113,933
------------
1,658,144
------------
TOTAL CORPORATE BONDS
(Cost $2,676,145)..................................... 2,643,346
------------
TOTAL FIXED INCOME SECURITIES
(Cost $25,511,410).................................... 25,323,015
------------
SHORT TERM INVESTMENTS 1.55%
United Missouri Bank, Money Market Fiduciary+ 4.900%... 397,689 397,689
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $397,689)....................................... $ 397,689
------------
TOTAL INVESTMENTS
(100.00%) (Cost $25,909,099#)......................... $ 25,720,704
============
</TABLE>
16
<PAGE>
<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 95.37%
St. Paul Cos., Inc. 01/02/1997....................... 6.500 700,000 $ 699,874
Exxon Imperial, Inc. 01/06/1997...................... 5.270 900,000 899,341
Great Lakes Chemical Corp. 01/06/1997................ 5.350 500,000 499,628
Temple-Inland, Inc. 01/06/1997....................... 5.430 900,000 899,321
Disney (Walt) Co. 01/06/1997......................... 5.250 900,000 899,344
Cargill, Inc. 01/07/1997............................. 5.400 720,000 719,352
General Electric Co. 01/07/1997...................... 5.300 900,000 899,205
Idaho Power Co. 01/07/1997........................... 5.400 900,000 899,190
Motorola, Inc. 01/07/1997............................ 5.300 900,000 899,205
Ford Motor Credit Co. 01/09/1997..................... 5.360 900,000 898,928
Questar Corp. 01/09/1997............................. 5.700 504,000 503,362
Greenwich Funding Corp. 01/10/1997................... 5.450 900,000 898,774
Southern California Edison Co. 01/10/1997............ 5.270 900,000 898,814
Chubb Capital Corp. 01/13/1997....................... 5.370 900,000 898,389
Siemens Corp. 01/14/1997............................. 5.350 900,000 898,261
Monsanto Co. 01/16/1997.............................. 5.300 900,000 $ 898,013
Minnesota Mining & Manufacturing Co. 01/17/1997...... 5.290 900,000 897,884
Questar Corp. 01/17/1997............................. 5.350 300,000 299,287
DuPont (E.I.) de Nemours Co. 01/22/1997.............. 5.260 900,000 897,238
-----------
TOTAL COMMERCIAL PAPER
(Cost $15,303,410).................................. 15,303,410
----------
OTHER SECURITIES 4.63%
United Missouri Bank, Money Market Fiduciary+
(Cost $742,317)..................................... 4.900% 742,317 742,317
----------
TOTAL INVESTMENTS
(100.00%) (Cost $16,045,727#)....................... $16,045,727
===========
</TABLE>
*SECURITY IS NON-INCOME PRODUCING.
ADR REPRESENTS AMERICAN DEPOSITARY RECEIPTS.
+PRINCIPAL AND INTEREST ARE PAYABLE ON DEMAND.
#ALSO REPRESENTS COST FOR FEDERAL INCOME TAX PURPOSES.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
<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................ $379,090,739 $ 93,898,241 $223,253,051 $44,833,034 $16,068,380 $25,909,099 $16,045,727
==============================================================================================
At value............... $486,981,472 $137,410,415 $269,491,856 $51,949,258 $20,442,374 $25,720,704 $16,045,727
Cash.................... 0 0 14,768 23,855 0 0 321
Receivables:
Investment securities
sold.................. 0 0 3,821,193 0 0 0 0
Fund shares sold....... 591,018 33,357 166,376 343,698 21,320 0 1,997
Dividends and interest. 3,634,366 274,377 1,165,328 83,278 147,982 528,260 1,478
Other assets............ 14,718 4,387 7,091 0 0 1,193 273
----------------------------------------------------------------------------------------------
TOTAL ASSETS............ 491,221,574 137,722,536 274,666,612 52,400,089 20,611,676 26,250,157 16,049,796
----------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Distributions to share-
holders............... 0 0 0 0 0 0 16,957
Investment securities
purchased............. 0 0 7,099,507 268,125 0 0 0
Fund shares repur-
chased................ 361,860 38,977 184,532 114,882 8,035 52,404 68,680
Other.................. 941,776 267,813 539,441 101,106 37,160 35,443 17,854
----------------------------------------------------------------------------------------------
TOTAL LIABILITIES....... 1,303,636 306,790 7,823,480 484,113 45,195 87,847 103,491
----------------------------------------------------------------------------------------------
NET ASSETS.............. $489,917,938 $137,415,746 $266,843,132 $51,915,976 $20,566,481 $26,162,310 $15,946,305
==============================================================================================
NET ASSETS
Paid-in capital......... $382,140,492 $ 89,619,897 $217,280,424 $44,726,424 $16,117,181 $27,320,347 $15,947,317
Accumulated
undistributed
(overdistributed) net
investment income...... 69,809 (22,215) 124,138 (48,513) 34,884 (39,504) 101
Accumulated net realized
gain (loss) on
investments............ (183,096) 4,305,890 3,199,765 121,841 40,422 (930,138) (1,113)
Unrealized net
appreciation
(depreciation) of
investments............ 107,890,733 43,512,174 46,238,805 7,116,224 4,373,994 (188,395) 0
----------------------------------------------------------------------------------------------
NET ASSETS.............. $489,917,938 $137,415,746 $266,843,132 $51,915,976 $20,566,481 $26,162,310 $15,946,305
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
Shares outstanding...... 7,365,743 1,669,958 5,078,700 967,118 362,274 535,290 15,946,646
NET ASSET VALUE PER
SHARE.................. $ 66.51 $ 82.29 $ 52.54 $ 53.68 $ 56.77 $ 48.87 $ 1.00
===============================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF OPERATIONS
December 31, 1996
<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............... $ 8,280,626 $ 2,895,255 $ 4,940,321 $ 660,894 $ 603,303 $ 0 $ 0
Interest................ 9,912,811 256,332 2,874,260 78,241 34,432 1,967,886 1,036,089
Miscellaneous........... 8,533 0 0 0 0 1,250 0
---------------------------------------------------------------------------------------
TOTAL INCOME........... 18,201,970 3,151,587 7,814,581 739,135 637,735 1,969,136 1,036,089
---------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees
(Note 2)............... 3,351,899 946,203 2,164,778 314,843 102,386 188,085 95,995
Distribution fees (Note
2)..................... 4,469,198 1,261,604 2,164,778 314,843 113,762 173,616 0
Directors fees & ex-
penses (Note 2)........ 38,516 10,958 17,123 1,252 0 2,806 7,493
Operating services fees
(Note 2)............... 2,233,908 630,611 965,775 157,351 56,854 144,644 95,973
---------------------------------------------------------------------------------------
TOTAL EXPENSES......... 10,093,521 2,849,376 5,312,454 788,289 273,002 509,151 199,461
Less: Advisory fee waiv-
er..................... 0 0 0 0 0 (72,341) 0
---------------------------------------------------------------------------------------
NET EXPENSES............ 10,093,521 2,849,376 5,312,454 788,289 273,002 436,810 199,461
---------------------------------------------------------------------------------------
NET INVESTMENT INCOME
(LOSS)................. 8,108,449 302,211 2,502,127 (49,154) 364,733 1,532,326 836,628
---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENT SECURITIES
Net realized gain (loss)
on investments......... 23,531,236 5,485,198 10,629,068 226,482 177,126 893,589 (22)
Change in unrealized net
appreciation
(depreciation) of
investments............ 26,214,708 14,241,394 23,172,870 6,597,676 4,153,030 (2,884,993) 0
---------------------------------------------------------------------------------------
NET GAIN (LOSS) ON IN-
VESTMENTS.............. 49,745,944 19,726,592 33,801,938 6,824,158 4,330,156 (1,991,404) (22)
---------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $57,854,393 $20,028,803 $36,304,065 $6,775,004 $4,694,889 $ (459,078) $ 836,606
=======================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
INVESCO Advisor Funds, Inc.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FLEX FUND EQUITY FUND MULTIFLEX FUND
--------------------------- -------------------------- --------------------------
1996 1995 1996 1995 1996 1995
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income
(loss)................. $ 8,108,449 $ 7,271,892 $ 302,211 $ 616,253 $ 2,502,127 $ 2,175,820
Net realized gain (loss)
on investments......... 23,531,236 1,499,336 5,485,198 1,719,762 10,629,068 2,369,562
Change in unrealized net
appreciation (deprecia-
tion) of investments... 26,214,708 65,472,709 14,241,394 22,774,563 23,172,870 23,626,272
------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM OP-
ERATIONS............... 57,854,393 74,243,937 20,028,803 25,110,578 36,304,065 28,171,654
------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income... (8,041,627) (7,268,905) (326,780) (619,651) (2,400,549) (2,154,064)
Net realized gain on in-
vestments.............. (23,712,747) (1,500,921) 0 (2,931,042) (7,382,073) (631,064)
------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS..... (31,754,374) (8,769,826) (326,780) (3,550,693) (9,782,622) (2,785,128)
------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from sale of
shares................. 107,726,947 128,403,068 19,738,118 25,972,895 80,727,974 58,897,010
Exchange for Net Assets
of Relative Return Bond
Fund................... 0 0 0 0 0 0
Reinvestment of distri-
butions................ 27,317,233 7,435,346 248,270 2,779,410 8,779,155 2,475,012
------------------------------------------------------------------------------------
135,044,180 135,838,414 19,986,388 28,752,305 89,507,129 61,372,022
Amount paid for repur-
chase of shares........ (70,387,939) (45,998,840) (15,845,974) (14,667,568) (23,777,288) (32,386,988)
------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM CAP-
ITAL SHARE TRANSAC-
TIONS.................. 64,656,241 89,839,574 4,140,414 14,084,737 65,729,841 28,985,034
------------------------------------------------------------------------------------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS................. 90,756,260 155,313,685 23,842,437 35,644,622 92,251,284 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........... $489,917,938 $399,161,678 $137,415,746 $113,573,309 $266,843,132 $174,591,848
====================================================================================
Accumulated
undistributed
(overdistributed) net
investment income
included in net assets
at end of period....... $ 69,809 $ 2,987 $ (22,215) $ 2,354 $ 124,138 $ 22,560
- --------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Shares sold............. 1,649,247 2,219,650 263,161 404,616 1,650,164 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 rein-
vestment of distribu-
tions.................. 414,833 126,030 3,271 40,134 173,184 56,127
------------------------------------------------------------------------------------
2,064,080 2,345,680 266,432 444,750 1,823,348 1,435,639
Shares repurchased...... (1,070,366) (802,409) (209,472) (227,468) (482,083) (770,268)
------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN CAPITAL SHARES...... 993,714 1,543,271 56,960 217,282 1,341,265 665,371
====================================================================================
</TABLE>
* For the period from May 1, 1995 (commencement of operations) through December
31, 1995.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL
VALUE FUND REAL ESTATE FUND INCOME FUND CASH MANAGEMENT FUND
------------------------- ------------------------- -------------------------- --------------------------
1996 1995* 1996 1995* 1996 1995 1996 1995
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (49,154) $ 641 $ 364,733 $ 67,605 $ 1,532,326 $ 1,331,872 $ 836,628 $ 839,549
226,482 (1,923) 177,126 (2,531) 893,589 210,848 (22) (211)
6,597,676 518,548 4,153,030 220,964 (2,884,993) 3,759,174 0 0
-------------------------------------------------------------------------------------------------------------
6,775,004 517,266 4,694,889 286,038 (459,078) 5,301,894 836,606 839,338
-------------------------------------------------------------------------------------------------------------
0 0 (332,659) (64,794) (1,549,005) (1,346,768) (836,527) (839,549)
(102,718) 0 (134,173) 0 0 0 0 0
-------------------------------------------------------------------------------------------------------------
(102,718) 0 (466,832) (64,794) (1,549,005) (1,346,768) (836,527) (839,549)
-------------------------------------------------------------------------------------------------------------
37,650,713 9,018,319 10,888,988 5,311,714 4,592,854 9,199,486 35,844,336 33,538,456
0 0 0 0 0 3,327,189 0 0
52,532 0 421,963 56,654 1,278,365 1,098,969 487,618 522,425
-------------------------------------------------------------------------------------------------------------
37,703,245 9,018,319 11,310,951 5,368,368 5,871,219 13,625,644 36,331,954 34,060,881
(1,926,238) (72,902) (537,387) (28,752) (9,686,365) (11,062,245) (40,824,498) (28,833,413)
-------------------------------------------------------------------------------------------------------------
35,777,007 8,945,417 10,773,564 5,339,616 (3,815,146) 2,563,399 (4,492,544) 5,227,468
-------------------------------------------------------------------------------------------------------------
42,449,293 9,462,683 15,001,621 5,560,860 (5,823,229) 6,518,525 (4,492,465) 5,227,257
9,466,683 4,000 5,564,860 4,000 31,985,539 25,467,014 20,438,770 15,211,513
-------------------------------------------------------------------------------------------------------------
$51,915,976 $ 9,466,683 $ 20,566,481 $ 5,564,860 $ 26,162,310 $ 31,985,539 $ 15,946,305 $ 20,438,770
=============================================================================================================
$ (48,513) $ 641 $ 34,884 $ 2,810 $ (39,504) $ (22,825) $ 101 $ 0
-------------------------------------------------------------------------------------------------------------
793,073 214,356 235,928 128,705 92,901 188,718 35,844,336 33,538,456
0 0 0 0 0 64,390 0 0
1,093 0 8,603 1,340 26,073 22,453 487,618 522,425
-------------------------------------------------------------------------------------------------------------
794,166 214,356 244,531 130,045 118,974 275,561 36,331,954 34,060,881
(39,722) (1,682) (11,611) (691) (196,204) (224,859) (40,824,498) (28,833,413)
-------------------------------------------------------------------------------------------------------------
754,444 212,674 232,920 129,354 (77,230) 50,702 (4,492,544) 5,227,468
=============================================================================================================
</TABLE>
21
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. The INVESCO Advi-
sor 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 manage-
ment investment company. The Fund consists of seven separate investment port-
folios, INVESCO Advisor Flex Fund ("Flex"), INVESCO Advisor Equity Fund ("Eq-
uity"), INVESCO Advisor MultiFlex Fund ("MultiFlex"), INVESCO Advisor Interna-
tional 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 consid-
ered 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 transac-
tions are accounted for on trade date and dividend income is recorded on
ex-dividend date. Interest income is recorded on the accrual basis. Dis-
counts on debt securities purchased are accreted over the life of the re-
spective security as adjustments to interest income. Costs used in deter-
mining 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 invest-
ment companies and, accordingly, distributes net investment income and net
realized capital gains, if any, to relieve it from federal income taxes. At
December 31, 1996, Equity had net capital loss carryforwards aggregating
$190,964. These carryforwards expire in 2004. At December 31, 1996, Income
had net capital loss carryforwards aggregating $851,788 of which $29,229
was received from the merger with Relative Return Fund (see Note 8). These
carryforwards expire in 2002. At December 31, 1996, Cash Management had net
capital loss carryforwards aggregating $600. These carryforwards expire in
2000. To the extent future capital gains are offset by capital loss
carryforwards, such gains will generally not be distributed to sharehold-
ers.
22
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
E. NEW SHARE CLASS -- Effective December 31, 1996, INVESCO began to offer a
second class of shares, Class A shares. Class A shares are identical to
Class C shares, except for class specific 12b-1 fees. Income, other ex-
penses and accumulated realized gains and losses of each Fund are allocated
to the respective class on the basis of relative net asset value each day.
On December 31, 1996, 100 Class A shares of each Fund were issued and out-
standing to INVESCO Services, Inc.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Services, Inc.
("ISI"), serves as each investment portfolio's investment adviser. As compen-
sation for its services to each investment portfolio, ISI receives an invest-
ment 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 In-
come, 0.90% of the respective average daily 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 portfo-
lio 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 the average daily net assets of
MultiFlex Fund on the first $500 million of assets and 0.25% of assets in ex-
cess of $500 million. In addition, ISI has entered into a sub-advisory agree-
ment 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, International Value and 0.60% of average daily net assets for Income.
ISI advised the Fund that for the year ended December 31, 1996, it received
approximately $4,449, $36,838, $816, $1,722, $21,071, $4,747 and $1,789 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% (effective December 31,
1996 the annual fee became 0.45%) of daily average net assets for providing or
arranging to provide accounting, legal (except litigation), dividend disburs-
ing, transfer agent, registrar, custodial, shareholder reporting, sub-account-
ing 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
23
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
combined 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.
Effective December 31, 1996, if in any calendar year, the average daily net
assets of Equity or Flex are less than $500 million, expenses shall not exceed
2.20%; on the next $500 million of average daily net assets, expenses shall
not exceed 2.15%; on the next $1 billion of average daily net assets, expenses
shall not exceed 2.10%; and on all average daily net assets over $2 billion,
expenses shall not exceed 2.05%. If in any calendar year, the average daily
net assets of MultiFlex or International Value are less than $100 million, ex-
penses shall not exceed 2.45%; on the next $400 million of average daily net
assets, expenses shall not exceed 2.40%; on the next $500 million of average
daily net assets, 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 average
daily net assets over $2 billion, expenses shall not exceed 2.25%. In any cal-
endar year the expenses of Income may not exceed l.70% of the average daily
net assets. ISI has agreed to reimburse Income for a three-year period begin-
ning October 1, 1995, so that the expenses shall not exceed l.45% per annum of
average daily net assets. In any calendar year the expenses of Cash Management
may not exceed .95% of average daily net assets. If in any calendar year, the
average daily net assets of the Real Estate are less than $500 million, ex-
penses shall not exceed 2.35%; on the next $500 million of net assets, ex-
penses shall not exceed 2.30%; and on all assets over $1 billion, expenses
shall not exceed 2.25%.
At December 31, 1996, 39.07% of the outstanding capital shares of Cash Man-
agement were owned by affiliated parties.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the year ended
December 31, 1996, the aggregate cost of purchases and proceeds from sales of
U.S. Government Securities were:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------------------
<S> <C> <C>
Flex................................................... $ 98,570,099 $55,204,463
MultiFlex.............................................. 58,345,906 45,751,991
Income................................................. 9,359,281 11,764,288
The aggregate cost of purchases and proceeds from sales of all other securi-
ties (excluding all short-term securities) were:
<CAPTION>
PURCHASES SALES
-------------------------
<S> <C> <C>
Flex................................................... $ 74,726,121 $58,780,727
Equity................................................. 24,762,475 22,510,239
MultiFlex.............................................. 128,170,806 81,956,782
International Value.................................... 35,358,541 1,406,306
Real Estate............................................ 12,918,821 2,700,851
</TABLE>
24
<PAGE>
INVESCO Advisor Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4 -- UNREALIZED APPRECIATION AND DEPRECIATION. At December 31, 1996, the
gross unrealized appreciation and depreciation of securities for federal in-
come tax purposes was as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
-------------------------------------------
<S> <C> <C> <C>
Flex................................. $114,039,147 $(6,148,414) $107,890,733
Equity............................... 44,898,484 (1,386,310) 43,512,174
MultiFlex............................ 48,937,373 (2,698,568) 46,238,805
International Value.................. 7,825,291 (709,067) 7,116,224
Real Estate.......................... 4,395,850 (21,856) 4,373,994
Income............................... 308,609 (497,004) (188,395)
</TABLE>
NOTE 5 -- CAPITAL SHARES. The authorized capital stock of the Fund consists of
10,075,000,000 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, Income,
Real Estate and International Value, 20 million to Flex, 15 million to
MultiFlex, and 10 billion to Cash Management.
NOTE 6 -- FOREIGN SECURITIES. Certain Portfolios invest in American Depositary
Receipts of foreign companies. Underlying the American Depositary Receipts are
investments in foreign securities. Foreign securities investments involve spe-
cial risks and considerations not typically associated with those of U.S. ori-
gin. These risks include, but are not limited to re-evaluation of currencies,
adverse political, social and economic developments and less reliable informa-
tion about issuers. Moreover, securities of many foreign companies and markets
may be less liquid and their prices more volatile than those of U. S. compa-
nies 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. Bene-
fits under this plan are based on an annual rate equal to 25% of the retainer
fee (effective July 1, 1996, benefits are based on an annual rate of 40% of
the retainer fee at the time of retirement).
Pension expenses for Flex, Equity, MultiFlex, Income and Cash Management for
the year ended December 31, 1996 of $3,900, $1,138, $1,665, $313 and $551, re-
spectively, are included in Directors' Fees and Expenses in the Statement of
Operations. Unfunded accrued pension costs for Flex, Equity, MultiFlex and In-
come Funds of $14,718, $4,387, $7,091, $1,193, respectively, and $273 for Cash
Management, and pension liabilities of $25,815, $7,751, $12,033 and $2,220,
respectively, and $824 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
Bond Fund of $3,327,189, including $147,389 of unrealized appreciation; com-
bined net assets were $31,571,199 as of the merger date. Shareholders of Rela-
tive Return Bond Fund received .788 shares of Income Fund for each share of
Relative Return Bond Fund. The transaction, which was a tax-free exchange, has
been accounted for by combining the assets and liabilities of each Fund at
their value on the date of the merger. The identified cost of investments were
similarly combined.
25
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
FLEX FUND
YEAR ENDED DECEMBER 31,
--------------------------------------------------
1996 1995 1994 1993 1992
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year........................ $ 62.64 $ 50.50 $ 54.16 $ 51.04 $ 49.35
--------------------------------------------------
INVESTMENT OPERATIONS
Net investment income........ 1.18 1.29 1.26 1.10 1.39
Net gain (loss) on securities
(both realized and
unrealized)................. 7.25 12.38 (0.91) 4.22 2.37
--------------------------------------------------
Total from investment opera-
tions....................... 8.43 13.67 0.35 5.32 3.76
--------------------------------------------------
DISTRIBUTIONS
Dividends (from net invest-
ment income)................ (1.17) (1.29) (1.25) (1.09) (1.35)
Distributions (from capital
gains)...................... (3.39) (0.24) (2.76) (1.11) (0.72)
--------------------------------------------------
Total distributions.......... (4.56) (1.53) (4.01) (2.20) (2.07)
--------------------------------------------------
Net asset value, end of year. $ 66.51 $ 62.64 $ 50.50 $ 54.16 $ 51.04
==================================================
TOTAL RETURN/1/.............. 13.61% 27.30% 0.64% 10.48% 7.72%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's)...................... $489,918 $399,162 $243,848 $274,349 $165,727
Ratio of expenses to average
net assets*................. 2.26% 2.28% 2.25% 2.25% 2.17%
Ratio of net investment in-
come to average net assets*. 1.81% 2.28% 2.32% 2.10% 2.81%
Portfolio turnover rate...... 26% 5% 36% 27% 15%
Average commission rate paid. $ 0.0549 -- -- -- --
</TABLE>
/1Total/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%.
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 year presented.
<TABLE>
<CAPTION>
EQUITY FUND
YEAR ENDED DECEMBER 31,
----------------------------------------------
1996 1995 1994 1993 1992
----------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year........................... $ 70.41 $ 55.83 $ 59.61 $ 63.27 $ 63.38
----------------------------------------------
INVESTMENT OPERATIONS
Net investment income........... 0.18 0.41 0.36 0.41 0.60
Net gain on securities
(both realized and unrealized). 11.90 16.44 1.26 5.40 2.44
----------------------------------------------
Total from investment opera-
tions.......................... 12.08 16.85 1.62 5.81 3.04
----------------------------------------------
DISTRIBUTIONS
Dividends (from net investment
income)........................ (0.20) (0.41) (0.36) (0.41) (0.57)
Distributions (from capital
gains)......................... 0.00 (1.86) (5.04) (9.06) (2.58)
----------------------------------------------
Total distributions............. (0.20) (2.27) (5.40) (9.47) (3.15)
----------------------------------------------
Net asset value, end of year.... $ 82.29 $ 70.41 $ 55.83 $ 59.61 $ 63.27
==============================================
TOTAL RETURN/1/................. 17.17% 30.28% 2.69% 9.16% 4.84%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's)......................... $137,416 $113,573 $77,929 $86,659 $91,146
Ratio of expenses to average net
assets*........................ 2.26% 2.28% 2.25% 2.25% 2.18%
Ratio of net investment income
to average net assets*......... 0.24% 0.64% 0.61% 0.62% 0.90%
Portfolio turnover rate......... 19% 17% 21% 47% 41%
Average commission rate paid.... $0.0590 -- -- -- --
</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 $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% .
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
MULTIFLEX FUND
FOR THE PERIOD
YEAR ENDED DECEMBER 31, NOV. 17, 1993/2/ TO
------------------------------ DEC. 31, 1993
1996 1995 1994
-----------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, begin-
ning of year........... $ 46.71 $ 39.13 $ 40.16 $ 40.00
-----------------------------------------------------
INVESTMENT OPERATIONS
Net investment income... 0.55 0.64 0.62 0.02
Net gain (loss) on secu-
rities (both realized
and unrealized)........ 7.31 7.75 (1.03) 0.16
-----------------------------------------------------
Total from investment
operations............. 7.86 8.39 (0.41) 0.18
-----------------------------------------------------
DISTRIBUTIONS
Dividends (from net in-
vestment income)....... (0.53) (0.64) (0.62) (0.02)
Distributions (from cap-
ital gains)............ (1.50) (0.17) 0.00 0.00
-----------------------------------------------------
Total distributions..... (2.03) (0.81) (0.62) (0.02)
-----------------------------------------------------
Net asset value, end of
year................... $ 52.54 $ 46.71 $ 39.13 $ 40.16
=====================================================
TOTAL RETURN/1/......... 17.03% 21.58% (1.02%) 0.46%#
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(in 000's)............. $266,843 $174,592 $120,220 $12,241
Ratio of expenses to av-
erage net assets....... 2.45% 2.50% 2.49% 2.50%*
Ratio of net investment
income to average net
assets................. 1.16% 1.53% 2.01% 1.09%*
Portfolio turnover rate. 62% 50% 81% 0.53%#
Average commission rate
paid................... $ 0.0577 -- -- --
</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.
28
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
INTERNATIONAL VALUE AND REAL ESTATE FUNDS
INTERNATIONAL VALUE FUND REAL ESTATE FUND
--------------------------- ------------------------------
YEAR ENDED FOR THE PERIOD YEAR ENDED FOR THE PERIOD
DECEMBER 31, MAY 1, 1995/2/ DECEMBER 31, MAY 1, 1995/2/ TO
1996 DEC. 31, 1995 1996 DEC. 31, 1995
--------------------------- ------------------------------
<S> <C> <C> <C> <C>
Net asset value, begin-
ning of year........... $ 44.51 $40.00 $ 43.02 $40.00
--------------------------- ------------------------------
INVESTMENT OPERATIONS
Net investment income
(loss)................. (0.05) 0.00 1.30 0.64
Net gain on securities
(both realized and
unrealized)............ 9.37 4.51 14.06 3.00
--------------------------- ------------------------------
Total from investment
operations............. 9.32 4.51 15.36 3.64
--------------------------- ------------------------------
DISTRIBUTIONS
Dividends (from net in-
vestment income)....... 0.00 0.00 (1.23) (0.62)
Distributions (from cap-
ital gains)............ (0.15) 0.00 (0.38) 0.00
--------------------------- ------------------------------
Total distributions..... (0.15) 0.00 (1.61) (0.62)
--------------------------- ------------------------------
Net asset value, end of
year................... $ 53.68 $44.51 $ 56.77 $43.02
=========================== ==============================
TOTAL RETURN/1/......... 20.99% 11.28%# 36.43% 9.12%#
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (in 000's)........ $51,916 $9,467 $20,566 $5,565
Ratio of expenses to av-
erage net assets....... 2.50% 2.50%* 2.40% 2.40%*
Ratio of net investment
income (loss) to aver-
age net assets......... (0.16%) 0.03%* 3.21% 4.68%*
Portfolio turnover rate. 5% 2%# 25% 7%#
Average commission rate
paid................... $0.0602 -- $0.0601 --
</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.
29
<PAGE>
INVESCO Advisor Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
The table below sets forth financial data for a capital share outstanding
throughout each year presented.
<TABLE>
<CAPTION>
INCOME FUND
YEAR ENDED DECEMBER 31,
----------------------------------------------
1996 1995 1994 1993 1992
----------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year........................... $ 52.22 $ 45.33 $ 48.60 $ 47.41 $ 47.77
----------------------------------------------
INVESTMENT OPERATIONS
Net investment income........... 2.61 2.44 2.40 2.28 2.57
Net gain (loss) on securities
(both realized and unrealized). (3.31) 6.91 (3.27) 1.20 (0.37)
----------------------------------------------
Total from investment opera-
tions.......................... (0.70) 9.35 (0.87) 3.48 2.20
----------------------------------------------
DISTRIBUTIONS
Dividends (from net investment
income)........................ (2.65) (2.46) (2.40) (2.29) (2.56)
----------------------------------------------
Total distributions............. (2.65) (2.46) (2.40) (2.29) (2.56)
----------------------------------------------
Net asset value, end of year.... $ 48.87 $ 52.22 $ 45.33 $ 48.60 $ 47.41
==============================================
TOTAL RETURN/1/................. (1.23%) 21.12% (1.80%) 7.39% 4.74%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's)......................... $26,162 $31,986 $25,467 $42,872 $47,096
Ratio of expenses to average net
assets*........................ 1.51% 2.19% 2.25% 2.25% 2.25%
Ratio of net investment income
to average net assets*......... 5.30% 4.94% 5.09% 4.56% 5.48%
Portfolio turnover rate......... 34% 24% 59% 92% 16%
</TABLE>
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of
the Fund aggregating $72,341, $17,720 and $17,632, for 1996, 1995 and 1993,
respectively. If such expenses had not been absorbed, the ratio of expenses
to average net assets would have been 1.76%, 2.25% and 2.29%, for 1996, 1995
and 1993, respectively. The ratio of net investment income to average net
assets would have been 5.05%, 4.88% and 4.52%, for 1996, 1995 and 1993,
respectively.
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
YEAR ENDED DECEMBER 31,
--------------------------------------------
1996 1995 1994 1993 1992
--------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------
INVESTMENT OPERATIONS
Net investment income............. 0.04 0.05 0.03 0.02 0.03
--------------------------------------------
DISTRIBUTIONS
Dividends (from net investment in-
come)............................ (0.04) (0.05) (0.03) (0.02) (0.03)
--------------------------------------------
Net asset value, end of year...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================
TOTAL RETURN/1/................... 4.48% 5.04% 3.30% 2.20% 3.00%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in
000's)........................... $15,946 $20,439 $15,212 $13,827 $20,431
Ratio of expenses to average net
assets*.......................... 1.04% 1.00% 1.00% 0.95% 0.73%
Ratio of net investment income to
average net assets*.............. 4.36% 4.91% 3.23% 2.17% 2.94%
</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.
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders
of INVESCO Advisor Funds, Inc.
In our opinion, the accompanying statements of assets and liabilities, includ-
ing the schedules of investment securities, and the related statements of op-
erations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of INVESCO Advisor
Flex Fund, INVESCO Advisor Equity Fund, INVESCO Advisor MultiFlex Fund,
INVESCO Advisor International Value Fund, INVESCO Advisor Real Estate Fund,
INVESCO Advisor Income Fund and INVESCO Advisor Cash Management Fund (consti-
tuting INVESCO Advisor Funds, Inc., hereafter referred to as the "Fund") at
December 31, 1996, the results of each of their operations, the changes in
each of their net assets and the financial highlights for each of the respec-
tive periods presented, in conformity with generally accepted accounting prin-
ciples. These financial statements and financial highlights (hereafter re-
ferred to as "financial statements") are the responsibility of the Fund's man-
agement; our responsibility is to express an opinion on these financial state-
ments based on our audits. We conducted our audits of these financial state-
ments in accordance with generally accepted auditing standards which require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and dis-
closures in the financial statements, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall fi-
nancial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1996 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Denver, Colorado
January 30, 1997
31
<PAGE>
INVESCO SERVICES, INC.
Investment Advisor
Manager
Distributor
INVESCO CAPITAL MANAGEMENT, INC.
Sub-Advisor:
INVESCO Advisor Equity Fund
INVESCO Advisor Income Fund
INVESCO Advisor Flex Fund
INVESCO Advisor International Value Fund
INVESCO Advisor Cash Management Fund
INVESCO MANAGEMENT & RESEARCH, INC.
Sub-Advisor:
INVESCO Advisor MultiFlex Fund
INVESCO REALTY ADVISORS, INC.
Sub-Advisor:
INVESCO Advisor Real Estate Fund
FPS SERVICES, INC.
Transfer Agent and Administrator
UMB BANK, N.A.
Custodian
PRICE WATERHOUSE LLP
Independent Accountants
[INVESCO LOGO]
Invesco Services, Inc.
1355 Peachtree Street, N.E.
Atlanta, Georgia 30309
(404) 892-0666
(800) 972-9030
This information must be preceded or
accompanied by a current prospectus.
ANNUAL REPORT
-------------------------------------
December 31, 1996
[INVESCO ADVISOR FUNDS LOGO]
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> INVESCO ADVISORS EQUITY PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 93,898,241
<INVESTMENTS-AT-VALUE> 137,410,415
<RECEIVABLES> 307,734
<ASSETS-OTHER> 4,387
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 137,722,536
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 306,790
<TOTAL-LIABILITIES> 306,790
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 89,619,897
<SHARES-COMMON-STOCK> 1,669,958
<SHARES-COMMON-PRIOR> 1,612,998
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 22,215
<ACCUMULATED-NET-GAINS> 4,305,890
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 43,512,174
<NET-ASSETS> 137,415,746
<DIVIDEND-INCOME> 2,895,255
<INTEREST-INCOME> 256,332
<OTHER-INCOME> 0
<EXPENSES-NET> 2,849,376
<NET-INVESTMENT-INCOME> 302,211
<REALIZED-GAINS-CURRENT> 5,485,198
<APPREC-INCREASE-CURRENT> 14,241,394
<NET-CHANGE-FROM-OPS> 20,028,803
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 326,780
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 263,161
<NUMBER-OF-SHARES-REDEEMED> 209,472
<SHARES-REINVESTED> 3,271
<NET-CHANGE-IN-ASSETS> 23,842,437
<ACCUMULATED-NII-PRIOR> 2,354
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 1,179,308
<GROSS-ADVISORY-FEES> 946,203
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,849,376
<AVERAGE-NET-ASSETS> 126,155,432
<PER-SHARE-NAV-BEGIN> 70.41
<PER-SHARE-NII> .18
<PER-SHARE-GAIN-APPREC> 11.90
<PER-SHARE-DIVIDEND> .20
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 82.29
<EXPENSE-RATIO> 2.26
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> INVESCO ADVISOR INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 25,909,099
<INVESTMENTS-AT-VALUE> 25,720,704
<RECEIVABLES> 528,260
<ASSETS-OTHER> 1,193
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 26,250,157
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 87,847
<TOTAL-LIABILITIES> 87,847
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 27,320,347
<SHARES-COMMON-STOCK> 535,290
<SHARES-COMMON-PRIOR> 612,520
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 39,504
<ACCUMULATED-NET-GAINS> (930,138)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (188,395)
<NET-ASSETS> 26,162,310
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,967,886
<OTHER-INCOME> 1,250
<EXPENSES-NET> 436,810
<NET-INVESTMENT-INCOME> 1,532,326
<REALIZED-GAINS-CURRENT> 893,589
<APPREC-INCREASE-CURRENT> (2,884,993)
<NET-CHANGE-FROM-OPS> (459,078)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,549,005
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 92,901
<NUMBER-OF-SHARES-REDEEMED> 196,204
<SHARES-REINVESTED> 26,703
<NET-CHANGE-IN-ASSETS> (5,823,229)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,823,727)
<OVERDISTRIB-NII-PRIOR> 22,825
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 188,085
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 509,151
<AVERAGE-NET-ASSETS> 28,908,575
<PER-SHARE-NAV-BEGIN> 52.22
<PER-SHARE-NII> 2.61
<PER-SHARE-GAIN-APPREC> (3.31)
<PER-SHARE-DIVIDEND> 2.65
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 48.87
<EXPENSE-RATIO> 1.51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> INVESCO ADVISOR FLEX PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 379,090,739
<INVESTMENTS-AT-VALUE> 486,981,472
<RECEIVABLES> 4,225,384
<ASSETS-OTHER> 14,718
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 491,221,574
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,303,636
<TOTAL-LIABILITIES> 1,303,636
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 382,140,492
<SHARES-COMMON-STOCK> 7,365,743
<SHARES-COMMON-PRIOR> 6,372,029
<ACCUMULATED-NII-CURRENT> 69,809
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (183,096)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 107,890,733
<NET-ASSETS> 489,917,938
<DIVIDEND-INCOME> 8,280,626
<INTEREST-INCOME> 9,912,811
<OTHER-INCOME> 8,533
<EXPENSES-NET> 10,093,521
<NET-INVESTMENT-INCOME> 8,108,449
<REALIZED-GAINS-CURRENT> 23,531,236
<APPREC-INCREASE-CURRENT> 26,214,708
<NET-CHANGE-FROM-OPS> 57,854,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 8,041,627
<DISTRIBUTIONS-OF-GAINS> 23,712,747
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,649,247
<NUMBER-OF-SHARES-REDEEMED> 1,070,366
<SHARES-REINVESTED> 414,833
<NET-CHANGE-IN-ASSETS> 90,756,260
<ACCUMULATED-NII-PRIOR> 2,987
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 1,585
<GROSS-ADVISORY-FEES> 3,351,899
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10,093,521
<AVERAGE-NET-ASSETS> 446,973,527
<PER-SHARE-NAV-BEGIN> 62.64
<PER-SHARE-NII> 1.18
<PER-SHARE-GAIN-APPREC> 7.25
<PER-SHARE-DIVIDEND> 1.17
<PER-SHARE-DISTRIBUTIONS> 3.39
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 66.51
<EXPENSE-RATIO> 2.26
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> INVESCO ADVISOR CASH MANAGEMENT PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 16,045,727
<INVESTMENTS-AT-VALUE> 16,045,727
<RECEIVABLES> 3,475
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<NAME> INVESCO ADVISOR FUNDS, INC.
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<NAME> INVESCO ADVISOR MULTIFLEX PORTFOLIO
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<NAME> INVESCO ADVISOR REAL ESTATE PORTFOLIO
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<NAME> INVESCO ADVISOR INTERNATIONAL VALUE PORTFOLIO
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