SEMIANNUAL REPORT
February 28, 1995
INVESCO VALUE TRUST
INVESCO FUNDS
<PAGE>
Market Overview March 1995
Perversely, to the securities markets, strong economic growth can be viewed
as a negative, a harbinger of inflation. Some analysts are worried about the
figures for late 1994: Gross domestic product (GDP) rose 4.6% for the fourth
quarter. That was the sixth straight quarter in which the GDP growth rate was
2.7% or better, and current indications are that growth will be as much as 3% in
the current quarter. Corporate earnings growth continued strong throughout the
fourth quarter for industries as diverse as airlines, entertainment, and
packaging. And 1994 showed the biggest leap in corporate profits for at least
two decades.
Recently we have seen signs that economic growth is slowing, though. For
instance, hourly wages and hours worked remained flat or dropped through
February. These factors work together in relieving pressure for increases in
wages and benefits -- key contributors to rising inflation. In fact,
employer-paid health care costs actually decreased about 1% last year.
Another encouraging sign, relative to inflation, is industrial production. The
output at U.S. factories and mines grew at just 0.4% in January, half the rate
of each of the two preceding months. New factory orders slowed even more.
Finally, consumer confidence -- and spending plans -- are also lessening.
There are still legitimate concerns regarding inflation. The most widely used
index, the CPI, rose 0.3% in January. Moreover, unemployment surprisingly
dropped to 5.4% in February. As a consequence of these and other signs, the next
few months may bring additional modest increases in the Fed Funds rate.
By increasing short-term rates, the Federal Reserve is attempting a "soft
landing" -- that is, to moderate the current economic expansion before inflation
heats up. Over the past twelve months, the Fed has doubled short-term rates.
Particularly during the first half of 1994, the markets reacted poorly to
these increases -- the Lehman Government/Corporate Bond Index had a total return
of negative 4.36% over the six months ended 6/30/94. Bond prices made up some of
the lost ground during the latter half of 1994; still, for all of 1994, the
Lehman Index dropped 3.53%. Last year was the worst performance ever by bonds, a
strong contrast to normal fixed-income returns over the past 50 years.
Stocks took the initial increases to interest rates poorly, and the S&P 500
lost 3.35% over the first six months of 1994. But they rebounded, gaining 4.87%
over the following six months.
While inflation is not likely to approach the eight percent-plus levels seen
in the early 1980s, it will probably be higher than the 2.5% to 3% range seen
during recent years. The INVESCO economic forecast calls for steadily increasing
inflation. We anticipate that consumer prices could rise as much as 3.5% to 4.0%
year-over-year by the fourth quarter of 1995; that compares to an increase of
just 2.7% in 1993 and 2.8% in 1994.
In 1994, the markets' performance reflected concern that the Fed would
overshoot its goal, bringing growth lower than the 2.5% target -- or worse,
induce a recession. Now, however, investors appear to be gaining confidence that
interest rates are stabilizing. Investors should keep in mind that any inflation
surprises, or a spate of disappointing corporate earnings reports, could trigger
corrections.
One final factor to bear in mind is the decline of the U.S. dollar against
major world currencies. It works in favor of U.S. companies exporting goods and
services, but it simultaneously discourages foreign investment in U.S.
fixed-income securities -- and may encourage the Federal Reserve Board to
increase short-term interest rates.
Intermediate Government Bond Fund
The line graph on page 2 illustrates the value of a $10,000 investment in
INVESCO Intermediate Government Bond Fund, plus reinvested dividends and capital
gain distributions, for the period from inception (5/86) through 2/28/95. (Of
course, past performance is not a guarantee of future returns.)*
The chart and other total return figures cited reflect the fund's operating
expenses, but the index does not have expenses, which would have lowered its
performance.
For the six months ended 2/28/95, INVESCO Intermediate Government Bond Fund
had a total return of 3.02%. During the same period, the Lehman Government
Bond-Intermediate Index had a total return of 2.64%. (Of course, past
performance is not a guarantee of future results.)*
During the first half of 1994, we adopted a somewhat defensive posture to help
protect against rising interest rates. Bond duration was maintained at around
three years, the lower end of the intermediate maturity scale.
Since September, however, our strategy has changed. As interest rates rose, we
found better values at the longer end of the intermediate yield curve. By
2/28/95, we had extended bond duration to over seven years. This is near the
maximum end of our range since most of the securities within the portfolio are
typically three to five years in maturity. This change occurred as yields rose
to levels where they represented good value given inflation trends.
Intermediate Government Bond Fund
Average Annualized Total Return*
12/31/94 2/28/95
1 Year -1.68% 2.62%
5 Years 7.16% 8.05%
Since inception (5/86) 6.53% 6.87%
One other strategic shift should be noted. We have taken the allocation to
government agency bonds down, in favor of direct Treasury obligations. The
reason is the difference between yields on these two types of issues. For
instance, at present the spread is relatively narrow between a Treasury note and
a GNMA with a similar maturity. Under these circumstances, the returns of GNMAs
tend to underperform Treasuries. Conversely, when spreads are wide, we may
invest as much as 70% of assets in government agency securities.
Intermediate Government Bond Fund is managed by James O. Baker. Before
joining INVESCO, he was associated with Willis Investment Counsel, Morgan
Keegan, and Drexel Burnham Lambert. Mr. Baker holds a BA from Mercer University.
Ralph H. Jenkins, Jr. assists in managing the fund. He began his investment
career in 1969 and is both a Chartered Financial Analyst and Chartered
Investment Counselor. He earned his MA at the University of Alabama and a BBC
from Auburn University.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Intermediate Government Bond Fund to the value
of a $10,000 investment in the Lehman Intermediate Government Bond Index,
assuming in both cases reinvestment of all dividends and capital gain
distributions, for the period from inception (5/86) through 2/28/95.
Total Return Fund
The line graph on page 3 illustrates the value of a $10,000 investment in
INVESCO Total Return Fund, plus reinvested dividends and capital gain
distributions, for the period from inception (9/87) through 2/28/95. (Of course,
past performance is not a guarantee of future returns.)*
The chart and other total return figures cited reflect the fund's operating
expenses, but the indices do not have expenses, which would, of course, have
lowered their performance.
For the six months ended 2/28/95, INVESCO Total Return Fund had a total return
of 3.55%. During the same period, the S&P 500 achieved a total return of 3.96%,
while the Lehman Government/Corporate Bond Index had a total return of 3.09%.
(Of course, past performance is not a guarantee of future results.)*
Graph: Total Return Fund Diversification by Value of Net Assets
This graph reflects the allocation of the Total Return Fund's portfolio by
value of net assets in basic materials, capital goods and construction,
consumer cyclical, consumer staples, diversified, energy, finance,
technology, transportation and services, utilities, fixed income, and cash
and equivalents securities as of 2/8/94, 8/31/94 and 2/28/95.
Over the past six months, the managers have executed a significant change in
fund strategy. As the bar chart illustrates, we increased the portfolio
weighting of fixed-income to 39.57% of net assets, up from 33.52% at 8/31/94.
The shift was accomplished by closing eight equity positions, with most of the
proceeds being reinvested on the bond side -- where we find securities more
attractively priced.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Total Return Fund to the value of a $10,000
investment in the Lehman Government/Corporate Bond and S&P 500 Indexes,
assuming in each case reinvestment of all dividends and capital gain
distributions, for the period from inception (9/87) through 2/28/95.
At the same time, we have substantially lengthened bond duration. Our
reasoning was similar to that which guided the managers of Intermediate
Government Bond Fund: We are now finding better values at the longer end of the
yield curve. By 2/28/95, we had extended bond duration to over seven years.
Bond quality remains high, with all holdings rated A or better. The majority,
of course, are direct Treasury obligations, which are attractively valued and
have negligible credit risk.
Three areas within equities produced particularly well for us over the past
six months -- consumer staples, technology, and basic materials. In some cases,
we believe the stocks have peaked. Consequently, we have taken profits, and
closed or trimmed a number of holdings.
Total Return Fund
Average Annualized Total Return*
12/31/94 2/28/95
1 Year 2.52% 7.01%
5 Years 9.51% 11.16%
Since inception (9/87) 10.85% 11.30%
Our sole new equity position is Shaw Industries. This is a classic value
stock. Shaw is the world's largest carpet manufacturer, whose price was battered
in 1994 along with housing stocks. But with its strong fundamentals and dominant
market position, this firm fits well in our stable of undervalued holdings with
promising long-term prospects.
Total Return Fund is managed by Edward C. Mitchell, Jr., President of
INVESCO Capital Management, Inc. He began his investment career in 1969. He
holds an MBA from the University of Virginia and a BA from the University of
Colorado. Mr. Mitchell is a Chartered Financial Analyst. He is assisted in the
fund's management by David S. Griffin, who is also a CFA. Mr. Griffin is a
twelve-year veteran of the investment business, and holds an MBA from the
College of William and Mary, as well as a BA from Ohio Wesleyan University.
Value Equity Fund
The line graph on the next page illustrates the value of a $10,000 investment
in INVESCO Value Equity Fund, plus reinvested dividends and capital gain
distributions, for the period from inception (5/86) through 2/28/95. (Of course,
past performance is not a guarantee of future returns.)*
Graph: Value Equity Fund Diversification by Value of Net Assets
This graph reflects the allocation of the Value Equity Fund's portfolio by
value of net assets in basic materials, capital goods and construction,
consumer cyclical, consumer staples, diversified, energy, finance,
technology, transportation and services, utilities, and cash and
equivalent securities as of 2/28/94, 8/31/94 and 2/28/95.
The chart and other total return figures cited reflect the fund's operating
expenses, but the indices do not have expenses, which would, of course, have
lowered their performance.
For the six months ended 2/28/95, INVESCO Value Equity Fund had a total return
of 4.72%. During the same period, the S&P 500 achieved a total return of 3.96%.
(Of course, past performance is not a guarantee of future results.)*
Value Equity Fund
Average Annualized Total Return*
12/31/94 2/28/95
1 Year 4.04% 8.74%
5 Years 9.07% 11.62%
Since inception (5/86) 10.46% 10.99%
Over the past six months, the markets have evinced concern about some sectors
which are cyclical in nature. At the same time, investors have favored companies
offering stable dividends and strong fundamentals -- the type of value stocks
which are featured throughout our holdings. This market sentiment aided the
portfolio as it outperformed the index. Substantial exposure to health-care
issues was another positive factor.
Our portfolio strategy relies on selection of individual stocks, rather than
concentrating on particular industry sectors. Hence, over the past six months we
have taken new positions in a variety of market segments, including energy,
consumer cyclicals, finance, and capital goods & construction.
For instance, Fleming Companies is a new holding in consumer staples. This is
a very traditional value stock: it offers a high dividend yield as well as high
cash flow, and yet in the recent past the market has expressed relatively low
expectations for price appreciation. We expect over time that strong
fundamentals will be rewarded by price advances.
Maytag Corp, on the other hand, is undergoing a "mini-restructuring" which we
believe will increase its value. New management has been brought in, who are
committed to reducing debt and focusing on their core domestic markets.
The defense industry is seeing accelerated consolidation, which tends to have
a positive effect on stock prices. We recently opened a new position in
E-Systems Inc, which is often rumored to be a takeover candidate.
While financial stocks as a group suffered in 1994, that retreat has opened
room for price advances in the coming months. We chose to add to the portfolio
Wachovia Corp, a high quality bank in the southeast. This firm has strong
fundamentals allied to conservative management, and the depressed price is a
buying opportunity. On the other hand, we closed our position in First of
America Bank, because we felt management there has diluted value by too many
acquisitions.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the INVESCO Value Equity Fund to the value of a $10,000
investment in the S&P 500 Index, assuming in both cases reinvestment of
all dividends and capital gain distributions, for the period from
inception (5/86) through 2/28/95.
Value Equity Fund is managed by Michael C. Harhai. Mr. Harhai began his
investment career in 1972; before joining INVESCO, he served as a portfolio
manager with Citizens & Southern Investment Advisors, Inc., and later as head of
the equity balanced group with Sovran Capital Management Corp. He holds a BA
from the University of South Florida and an MBA from the University of Central
Florida. Mr. Harhai is a Chartered Financial Analyst, as is Terrence Irrgang,
who assists in managing the fund. Mr. Irrgang is a 13-year veteran of the
investment business, and holds an MBA from Temple University, as well as a BA
from Gettysburg College.
*Total return assumes reinvestment of dividends and capital gain distributions.
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 Bond Index is an unmanaged index considered representative
of the broad bond market, while the Lehman Government Bond-Intermediate Index is
an unmanaged index of government bonds with average maturities under 10 years.
INVESCO Fund Codes
These two-digit codes appear after your account number on Investment Summaries
and confirmations. You may also use them to request information about specific
funds on PAL, your Personal Account Line.
Value Trust
47 Intermediate Government Bond
48 Total Return
46 Value Equity
Money Market Funds
44 U.S. Government Money Fund
25 Cash Reserves
40 Tax-Free Money Fund
Tax-Exempt Funds
36 Tax-Free Intermediate Bond
35 Tax-Free Long-Term Bond
Income Funds
33 Short-Term Bond
32 U.S. Government Securities
30 Select Income
31 High Yield
Multiple Asset Funds
71 Balanced
70 Multi-Asset Allocation
Equity-Income Funds
15 Industrial Income
58 Utilities
Growth Funds
10 Growth
20 Dynamics
74 Small Company
60 Emerging Growth
Sector Funds
50 Energy
59 Environmental Services
57 Financial Services
51 Gold
52 Health Sciences
53 Leisure
55 Technology
38 Worldwide Capital Goods
39 Worldwide Communications
International Funds
49 International Growth
56 European
37 European Small Company
34 Latin American Growth
54 Pacific Basin
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
<PAGE>
INVESCO Value Trust
Ten Largest Common Stock Holdings
February 28, 1995
Description Value
TOTAL RETURN Fund
International Business Machines $5,267,500
Computer Associates International 5,187,000
Lilly (Eli) & Co 5,025,000
American Home Products 4,647,500
Ford Motor 4,571,875
Philip Morris 4,556,250
Heinz (H J) Co 4,331,250
Merck & Co 4,237,500
Anheuser-Busch Cos 4,228,125
American Brands 4,111,250
VALUE EQUITY Fund
Disney (Walt) Co $2,668,750
PepsiCo Inc 2,535,300
Pitney-Bowes Inc 2,353,650
General Re 2,344,500
Philip Morris 2,308,500
Textron Inc 2,299,500
Exxon Corp 2,257,600
Raytheon Co 2,256,000
McDonald's Corp 2,227,750
CINergy Corp 2,190,375
*Composition of holdings is subject to change.
<PAGE>
INVESCO Value Trust
Statement of Investment Securities
February 28, 1995
UNAUDITED
Shares or
Principal
Description Amount Value
INTERMEDIATE GOVERNMENT BOND Fund
FIXED INCOME SECURITIES 94.26%
US Government Obligations 88.10%
US Treasury Notes
8.500%, 7/15/1997 $5,000,000 $5,178,125
8.500%, 2/15/2000 $5,000,000 5,296,875
7.375%, 5/15/1996 $4,000,000 4,036,244
6.375%, 7/15/1999 $5,000,000 4,876,555
6.375%, 8/15/2002 $3,000,000 2,857,500
5.125%, 3/31/1998 $4,000,000 3,801,244
US Treasury Bonds
9.375%, 2/15/2006 $3,000,000 3,464,058
8.125%, 8/15/2019 $5,000,000 5,284,375
US Treasury Security Stripped
Interest Payment, Generic Tint
Payment, 11/15/2004 $2,000,000 988,778
-------------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $35,801,055) 35,783,754
-------------
US Government Agency Obligations 6.16%
Government National Mortgage
Association I, Modified
Pass-Through Certificates
7.000%, 10/15/2008 $844,785 818,866
6.500%, 10/15/2008 $896,865 848,882
6.000%, 11/15/2008 $905,504 836,513
-------------
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,721,160) 2,504,261
-------------
TOTAL FIXED INCOME SECURITIES
(Cost $38,522,215) 38,288,015
-------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 5.74%
Repurchase Agreement with State Street Bank & Trust Co dated 2/28/1995 due
3/1/1995 at 5.500%, repurchased at $2,330,356 (Collateralized by US Treasury
Notes due 10/31/1996 at 6.875%, value $2,378,389)
(Cost $2,330,000) $2,330,000 2,330,000
-------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $40,852,215)
(Cost for Income Tax Purposes
$40,856,738) $40,618,015
=============
TOTAL RETURN Fund
COMMON STOCKS 56.26%
AEROSPACE & DEFENSE 2.22%
Boeing Co 75,000 $3,459,375
Lockheed Corp 50,000 3,881,250
-------------
7,340,625
-------------
AUTOMOBILE RELATED 1.38%
Ford Motor 175,000 4,571,875
-------------
BANKING 3.31%
First of America Bank 100,000 3,387,500
NationsBank Corp 50,000 2,493,750
SunTrust Banks 29,000 1,562,375
Wachovia Corp 100,000 3,475,000
-------------
10,918,625
-------------
CHEMICALS 1.83%
Dow Chemical 50,000 3,350,000
Imperial Chemical
Industries PLC ADR 60,000 2,677,500
-------------
6,027,500
-------------
COMPUTER RELATED 5.33%
Compaq Computer* 90,000 3,105,000
Computer Associates International 91,000 5,187,000
Hewlett-Packard Co 35,000 4,025,000
International Business Machines 70,000 5,267,500
-------------
17,584,500
-------------
DIVERSIFIED COMPANIES 8.00%
du Pont (E I) de Nemours 50,000 2,806,250
Hanson PLC Sponsored ADR 200,000 3,750,000
Loews Corp 30,000 2,913,750
Minnesota Mining & Manufacturing 60,000 3,285,000
National Service Industries 76,200 2,047,875
Norsk Hydro AS Sponsored ADR 100,000 3,775,000
Philip Morris 75,000 4,556,250
Textron Inc 60,000 3,285,000
-------------
26,419,125
-------------
FINANCE RELATED 1.17%
Dun & Bradstreet 75,000 3,871,875
-------------
FOOD PRODUCTS & BEVERAGES 3.33%
Anheuser-Busch Cos 75,000 4,228,125
Heinz (H J) Co 110,000 4,331,250
Unilever NV New York Shrs 20,000 2,430,000
-------------
10,989,375
-------------
FOOD STORES - WHOLESALE 0.43%
SuperValu Inc 55,600 1,431,700
-------------
HEALTH CARE FACILITIES 0.68%
Columbia/HCA Healthcare 53,862 2,228,540
-------------
INSURANCE 1.86%
American General 80,000 2,530,000
Provident Life & Accident
Insurance of America Class A 37,100 844,025
SAFECO Corp 50,000 2,750,000
-------------
6,124,025
-------------
INVESTMENT BROKERS 1.22%
Morgan Stanley Group 60,000 $4,042,500
-------------
MEDICAL RELATED - DRUGS 6.84%
Abbott Laboratories 100,000 3,550,000
Allergan Inc 48,300 1,394,663
American Home Products 65,000 4,647,500
Lilly (Eli) & Co 75,000 5,025,000
Marion Merrell Dow 150,000 3,731,250
Merck & Co 100,000 4,237,500
-------------
22,585,913
-------------
METALS 0.55%
Alcan Aluminium 75,000 1,818,750
-------------
OIL & GAS RELATED 2.87%
Amoco Corp 60,000 3,555,000
Repsol SA Sponsored ADR 125,000 3,578,125
Royal Dutch Petroleum
5 Gldr Shrs 21,000 2,354,625
-------------
9,487,750
-------------
PAPER & PAPER PRODUCTS 0.90%
Westvaco Corp 75,000 2,962,500
-------------
POLLUTION CONTROL RELATED 0.94%
Browning-Ferris Industries 100,000 3,112,500
-------------
RETAIL 5.15%
K mart Corp 200,000 2,550,000
McDonald's Corp 100,000 3,325,000
Melville Corp 125,000 4,062,500
Rite Aid 150,000 3,712,500
Tandy Corp 75,000 3,356,250
-------------
17,006,250
-------------
TEXTILES & APPAREL MANUFACTURERS 1.56%
Liz Claiborne 125,000 2,015,625
Shaw Industries 200,000 3,125,000
-------------
5,140,625
-------------
TOBACCO 1.25%
American Brands 110,000 4,111,250
-------------
TOOLS 1.03%
Snap-On Inc 100,000 3,400,000
-------------
UTILITIES 4.41%
Centerior Energy 100,000 975,000
NYNEX Corp 75,000 2,943,750
Telefonica de Espana SA
Sponsored ADR 100,000 3,750,000
Texas Utilities 100,000 3,287,500
U S WEST 27,000 1,046,250
Unicom Corp 100,000 2,550,000
-------------
14,552,500
-------------
TOTAL COMMON STOCKS
(Cost $154,211,772) 185,728,303
-------------
FIXED INCOME SECURITIES 39.57%
US Government Obligations 34.78%
US Treasury Notes
8.750%, 8/15/2000 $10,000,000 10,743,750
8.250%, 7/15/1998 $8,000,000 $8,307,488
8.000%, 1/15/1997 $4,000,000 4,086,244
7.875%, 1/15/1998 $1,750,000 1,794,294
7.875%, 11/15/1999 $7,100,000 7,326,313
7.375%, 5/15/1996 $3,300,000 3,329,901
6.375%, 7/15/1999 $3,000,000 2,925,933
6.375%, 8/15/2002 $10,000,000 9,525,000
US Treasury Bonds
9.375%, 2/15/2006 $14,000,000 16,165,604
9.250%, 2/15/2016 $15,000,000 17,592,165
8.125%, 8/15/2019 $13,000,000 13,739,375
7.250%, 8/15/2022 $20,000,000 19,287,500
-------------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $112,034,367) 114,823,567
-------------
US Government Agency Obligations 1.85%
Federal National Mortgage
Association, Gtd Mortgage
Pass-Through Certificates
7.500%, 8/1/2007 $2,349,107 2,323,382
Government National Mortgage
Association I, Modified
Pass-Through Certificates
7.000%, 10/15/2008 $1,298,271 1,258,438
6.500%, 10/15/2008 $1,345,297 1,273,323
6.000%, 11/15/2008 $1,358,256 1,254,769
-------------
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Cost $6,480,224) 6,109,912
-------------
Corporate Bonds 2.94%
AUTOMOBILE RELATED 0.23%
Ford Motor, Notes
7.500%, 11/15/1999 $750,000 745,177
-------------
BANKING 0.34%
NationsBank Corp, Sr Notes
5.375%, 4/15/2000 $1,250,000 1,130,071
-------------
FINANCE RELATED 1.01%
Associates Corp of North America, Notes
4.750%, 8/1/1996 $1,200,000 1,162,354
Beneficial Corp Medium-Term Notes
5.350%, 10/8/1998 $800,000 744,354
International Lease Finance, Notes
5.625%, 3/1/1998 $1,500,000 1,426,000
-------------
3,332,708
-------------
FOOD PRODUCTS & BEVERAGES 0.46%
PepsiCo Inc, Deb
7.750%, 10/1/1998 $1,500,000 1,519,500
-------------
RETAIL 0.22%
Wal-Mart Stores, Notes
5.500%, 3/1/1998 $750,000 714,680
-------------
UTILITIES 0.22%
Union Electric, 1st Mortgage
6.750%, 10/15/1999 $750,000 $726,496
-------------
WASTE MANAGEMENT 0.46%
Waste Management, Notes
7.875%, 8/15/1996 $1,500,000 1,518,862
-------------
TOTAL CORPORATE BONDS
(Cost $10,108,465) 9,687,494
-------------
TOTAL FIXED INCOME SECURITIES
(Cost $128,623,056) 130,620,973
-------------
SHORT-TERM INVESTMENTS 4.17%
Commercial Paper 1.51%
MEDICAL RELATED - DRUGS
1.51% Warner-Lambert Co
5.900%, 3/15/1995
(Cost $4,988,528) $5,000,000 4,988,528
-------------
Repurchase Agreements 2.66%
Repurchase Agreement with
State Street Bank & Trust Co
dated 2/28/1995 due 3/1/1995
at 5.500%, repurchased at
$8,766,339 (Collateralized by US
Treasury Notes due 10/31/1996
at 6.875%, value $8,949,712)
(Cost $8,765,000) $8,765,000 8,765,000
-------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $13,753,528) 13,753,528
-------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $296,588,356)
(Cost for Income Tax Purposes
$296,603,016) 330,102,804
=============
VALUE EQUITY Fund
COMMON STOCKS 89.80%
AEROSPACE & DEFENSE 3.13%
Boeing Co 25,000 $1,153,125
E-Systems Inc 26,700 1,168,125
Lockheed Corp 22,000 1,707,750
-------------
4,029,000
-------------
AGRICULTURAL 0.79%
Pioneer Hi-Bred International 30,000 1,012,500
-------------
AUTOMOBILE RELATED 1.12%
Ford Motor 55,000 1,436,875
-------------
BANKING 3.70%
Boatmen's Bancshares 53,000 1,643,000
NBD Bancorp 50,000 1,556,250
Wachovia Corp 45,000 1,563,750
-------------
4,763,000
-------------
CHEMICALS 3.47%
Dow Chemical 30,000 2,010,000
Imperial Chemical
Industries PLC ADR 25,000 $1,115,625
Nalco Chemical 39,000 1,340,625
-------------
4,466,250
-------------
COMPUTER RELATED 4.92%
Automatic Data Processing 17,000 1,045,500
Compaq Computer* 39,000 1,345,500
Computer Associates International 31,000 1,767,000
Hewlett-Packard Co 19,000 2,185,000
-------------
6,343,000
-------------
DIVERSIFIED COMPANIES 9.24%
General Electric 27,000 1,481,625
Hanson PLC Sponsored ADR 102,000 1,912,500
Minnesota Mining & Manufacturing 30,000 1,642,500
Philip Morris 38,000 2,308,500
Paytheon Co 32,000 2,256,000
Textron Inc 42,000 2,299,500
-------------
11,900,625
-------------
ELECTRICAL EQUIPMENT 1.33%
Emerson Electric 26,000 1,719,250
-------------
FINANCE RELATED 1.20%
Dun & Bradstreet 30,000 1,548,750
-------------
FOOD PRODUCTS & BEVERAGES 5.32%
Anheuser-Busch Cos 23,000 1,296,625
Heinz (H J) Co 35,000 1,378,125
PepsiCo Inc 64,800 2,535,300
Tyson Foods Class A 67,000 1,649,875
-------------
6,859,925
-------------
FOOD STORES - WHOLESALE 0.75%
Fleming Cos 49,900 973,050
-------------
HEALTH CARE 2.59%
Columbia/HCA Healthcare 45,000 1,861,875
Manor Care 50,000 1,481,250
-------------
3,343,125
-------------
HOUSEHOLD APPLIANCES 1.34%
Maytag Corp 104,500 1,724,250
-------------
INSURANCE 7.32%
American General 57,000 1,802,625
American International Group 19,000 1,971,250
General Re 18,000 2,344,500
Jefferson-Pilot Corp 29,050 1,655,850
SAFECO Corp 30,000 1,650,000
-------------
9,424,225
-------------
INVESTMENT BROKERS 2.46%
Morgan Stanley Group 31,000 2,088,625
Salomon Inc 30,000 1,080,000
-------------
3,168,625
-------------
MEDICAL RELATED - DRUGS 8.43%
Abbott Laboratories 57,000 2,023,500
American Home Products 26,000 1,859,000
Bristol-Myers Squibb 30,000 1,860,000
Lilly (Eli) & Co 32,000 2,144,000
Merck & Co 48,000 $2,034,000
Schering-Plough Corp 12,000 940,500
-------------
10,861,000
-------------
OFFICE EQUIPMENT 1.83%
Pitney-Bowes Inc 66,300 2,353,650
-------------
OIL & GAS RELATED 7.07%
Amoco Corp 35,000 2,073,750
Atlantic Richfield 18,000 1,973,250
Exxon Corp 35,275 2,257,600
Repsol SA Sponsored ADR 43,000 1,230,875
Royal Dutch Petroleum
5 Gldr Shrs 13,976 1,567,059
-------------
9,102,534
-------------
PAPER & PAPER PRODUCTS 1.31%
Westvaco Corp 42,700 1,686,650
-------------
POLLUTION CONTROL RELATED 1.57%
Browning-Ferris Industries 18,500 575,813
WMX Technologies 55,000 1,450,625
-------------
2,026,438
-------------
PUBLISHING 0.88%
Donnelley (R R) & Sons 33,000 1,130,250
-------------
RECREATION SERVICES 2.07%
Disney (Walt) Co 50,000 2,668,750
-------------
RETAIL 7.80%
Dillard Department Stores
Class A 57,000 1,567,500
Giant Food Class A 64,000 1,520,000
Home Depot 34,000 1,525,750
K mart Corp 125,800 1,603,950
McDonald's Corp 67,000 2,227,750
Russell Corp 34,500 1,043,625
Toys "R" Us* 20,000 557,500
-------------
10,046,075
-------------
TEXTILES & APPAREL MANUFACTURERS 1.66%
Liz Claiborne 60,000 967,500
Shaw Industries 75,000 1,171,875
-------------
2,139,375
-------------
TOBACCO 1.45%
American Brands 50,000 1,868,750
-------------
TRANSPORTATION 0.95%
Hunt (J B) Transport Services 63,000 1,228,500
-------------
UTILITIES 6.10%
CINergy Corp 88,500 2,190,375
SCEcorp 93,000 1,522,875
Southern New England Telecommunications 46,000 1,523,750
Telefonos de Mexico SA de CV Sponsored ADR
Representing Ord Series L Shrs 58,000 1,602,250
Unicom Corp 40,000 1,020,000
-------------
7,859,250
-------------
TOTAL COMMON STOCKS
(Cost $105,123,484) 115,683,672
-------------
SHORT-TERM INVESTMENTS 10.20%
Commercial Paper 6.49%
AGRICULTURAL 0.77%
Cargill Inc
5.900%, 3/16/1995 $1,000,000 $997,542
-------------
MEDICAL RELATED - DRUGS 3.10%
Warner-Lambert Co
5.900%, 3/15/1995 $4,000,000 3,990,822
-------------
PUBLISHING 2.62%
Donnelley (R R) & Sons
6.030%, 4/17/1995 $3,400,000 3,373,233
-------------
TOTAL COMMERCIAL PAPER
(Cost $8,361,597) 8,361,597
-------------
Repurchase Agreements 3.71%
Repurchase Agreement with
State Street Bank & Trust Co dated 2/28/1995 due 3/1/1995 at 5.500%,
repurchased at $4,785,731 (Collateralized by US Treasury Notes due 10/31/1996
at 6.875%, value $4,884,923)
(Cost $4,785,000) $4,785,000 4,785,000
-------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $13,146,597) 13,146,597
-------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $118,270,081)
(Cost for Income Tax Purposes
$118,463,396) $128,830,269
=============
*Security is non-income producing.
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Assets and Liabilities
February 28, 1995
UNAUDITED
<TABLE>
<CAPTION>
Intermediate
Government Total Return Value Equity
Bond Fund Fund Fund
<S> <C> <C> <C>
ASSETS
Investment Securities:
At Cost $40,852,215 $296,588,356 $118,270,081
========================================
At Value $40,618,015 $330,102,804 $128,830,269
Cash 0 83,999 82,978
Receivables:
Investment Securities Sold 0 0 1,492,531
Fund Shares Sold 138,679 2,064,146 989,400
Dividends and Interest 329,531 1,600,738 422,057
Prepaid Expenses and Other Assets 17,286 56,010 35,629
----------------------------------------
TOTAL ASSETS 41,103,511 333,907,697 131,852,864
----------------------------------------
LIABILITIES
Payables:
Custodian 5,549 0 0
Distributions to Shareholders 4,228 100,122 33,051
Investment Securities Purchased 0 0 4,571,372
Fund Shares Repurchased 656,898 185,081 64,175
Accrued Expenses and Other Payables 4,648 20,203 12,270
----------------------------------------
TOTAL LIABILITIES 671,323 305,406 4,680,868
----------------------------------------
Net Assets at Value $40,432,188 $333,602,291 $127,171,996
========================================
NET ASSETS
Paid-in Capital $41,638,607 $299,573,000 $115,886,944
Accumulated Undistributed Net
Investment Income (Loss) 0 (36,789) 36,992
Accumulated Undistributed Net
Realized Gain (Loss) on
Investment Securities (972,219) 551,632 687,872
Net Appreciation (Depreciation) of
Investment Securities (234,200) 33,514,448 10,560,188
----------------------------------------
Net Assets at Value $40,432,188 $333,602,291 $127,171,996
========================================
Shares Outstanding* 3,324,969 17,761,893 7,249,124
Net Asset Value, Offering and Redemption
Price per Share $12.16 $18.78 $17.54
=======================================
<FN>
*The Trust has one class of shares, which may be divided into different series,
each representing an interest in a separate Fund. At February 28, 1995, there
was an unlimited number of authorized Fund shares.
See Notes to Financial Statements
</FN>
</TABLE>
<PAGE>
INVESCO Value Trust
Statement of Operations
Six-Months Ended February 28, 1995
UNAUDITED
<TABLE>
<CAPTION>
Intermediate
Government Total Return Value Equity
Bond Fund Fund Fund
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $0 $2,665,172 $1,520,836
Interest 1,182,568 4,932,990 272,310
----------------------------------------
TOTAL INCOME 1,182,568 7,598,162 1,793,146
----------------------------------------
EXPENSES
Investment Advisory Fees 96,941 1,139,967 407,810
Transfer Agent Fees 66,875 185,892 77,534
Administrative Fees 7,423 27,799 13,378
Custodian Fees and Expenses 3,190 12,731 4,386
Professional Fees and Expenses 6,802 16,840 9,982
Registration Fees and Expenses 12,828 27,307 18,071
Reports to Shareholders 5,707 20,753 5,803
Trustees' Fees and Expenses 4,215 13,801 7,295
Other Expenses 2,435 6,402 2,863
----------------------------------------
TOTAL EXPENSES 206,416 1,451,492 547,122
----------------------------------------
NET INVESTMENT INCOME 976,152 6,146,670 1,246,024
----------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on Investment
Securities (946,533) 1,838,599 3,676,609
Change in Net Appreciation of
Investment Securities 1,035,745 3,224,909 985,043
----------------------------------------
NET GAIN ON INVESTMENT SECURITIES 89,212 5,063,508 4,661,652
----------------------------------------
Net Increase in Net Assets from
Operations $1,065,364 $11,210,178 $5,907,676
========================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Intermediate Government
Bond Fund Total Return Fund
Six-Months Year Six-Months Year
Ended Ended Ended Ended
February 28 August 31 February 28 August 31
1995 1994 1995 1994
UNAUDITED UNAUDITED
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income $976,152 $2,058,207 $6,146,670 $8,343,044
Net Realized Gain (Loss) on Investment
Securities (946,533) 620,157 1,838,599 2,193,169
Change in Net Appreciation
(Depreciation) of Investment Securities 1,035,745 (2,854,227) 3,224,909 7,456,021
-----------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS 1,065,364 (175,863) 11,210,178 17,992,234
-----------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (976,152) (2,052,118) (6,183,459) (8,343,044)
In Excess of Net Investment Income 0 (6,095) 0 (1,271,098)
Net Realized Gain on Investment Securities 0 (1,054,005) (778,408) (2,193,169)
In Excess of Net Realized Gain on
Investment Securities 0 0 0 (1,987,157)
-----------------------------------------------------
TOTAL DISTRIBUTIONS (976,152) (3,112,218) (6,961,867) (13,794,468)
-----------------------------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 15,840,946 14,705,799 93,084,964 132,448,414
Reinvestment of Distributions 942,135 2,969,516 6,766,624 13,327,958
-----------------------------------------------------
16,783,081 17,675,315 99,851,588 145,776,372
Amounts Paid for Repurchases of Shares (8,300,650) (21,910,324) (63,262,196) 77,433,579)
-----------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 8,482,431 (4,235,009) 36,589,392 68,342,793
-----------------------------------------------------
Total Increase (Decrease) in Net Assets 8,571,643 (7,523,090) 40,837,703 72,540,559
NET ASSETS
Beginning of Period 31,860,545 39,383,635 292,764,588 220,224,029
-----------------------------------------------------
End of Period $40,432,188 $31,860,545 $333,602,291 $292,764,588
======================================================
Accumulated Undistributed Net Investment
Income (Loss) Included in Net
Assets at End of Period $0 $0 $(36,789) $0
FUND SHARE TRANSACTIONS
Shares Sold 1,322,530 1,154,467 5,067,956 7,264,152
Shares Issued from Reinvestment
of Distributions 78,788 235,197 368,416 728,959
-----------------------------------------------------
1,401,318 1,389,664 5,436,372 7,993,111
Shares Repurchased (695,477) (1,743,095) (3,463,029) (4,260,757)
-----------------------------------------------------
Net Increase (Decrease) in Fund Shares 705,841 (353,431) 1,973,343 3,732,354
=====================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
Value Equity Fund
Six-Months Year
Ended Ended
February 28 August 31
1995 1994
UNAUDITED
<S> <C> <C>
OPERATIONS
Net Investment Income $1,246,024 $1,802,411
Net Realized Gain on Investment Securities 3,676,609 5,051,741
Change in Net Appreciation of Investment Securities 985,043 2,024,162
---------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 5,907,676 8,878,314
DISTRIBUTIONS TO SHAREHOLDERS ---------------------------
Net Investment Income (1,209,032) (1,802,411)
In Excess of Net Investment Income 0 (239,803)
Net Realized Gain on Investment Securities (7,115,174) (5,176,510)
---------------------------
TOTAL DISTRIBUTIONS (8,324,206) (7,218,724)
---------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 43,655,952 106,482,312
Reinvestment of Distributions 8,242,235 7,097,380
---------------------------
51,898,187 113,579,692
---------------------------
Amounts Paid for Repurchases of Shares (34,159,492) (85,303,387)
---------------------------
NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS 17,738,695 28,276,305
---------------------------
Total Increase in Net Assets 15,322,165 29,935,895
NET ASSETS
Beginning of Period 111,849,831 81,913,936
---------------------------
End of Period $127,171,996 $111,849,831
===========================
Accumulated Undistributed Net Investment Income
Included in Net Assets at End of Period $6,992 $0
FUND SHARE TRANSACTIONS
Shares Sold 2,519,652 6,026,761
Shares Issued from Reinvestment of Distributions 491,957 405,056
---------------------------
3,011,609 6,431,817
Shares Repurchased (1,936,182) (4,861,383)
---------------------------
Net Increase in Fund Shares 1,075,427 1,570,434
===========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Notes to Financial Statements
UNAUDITED
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES. INVESCO Value Trust (the "Trust") is
registered under the Investment Company Act of 1940 (the "Act") as a
diversified, open-end management investment company. The Trust is organized
under the laws of the Commonwealth of Massachusetts and consists of three
separate funds: Intermediate Government Bond Fund ("Government Bond") and Value
Equity Fund ("Value Equity") which commenced investment operations on May 19,
1986 and Total Return Fund ("Total Return") which commenced investment
operations on September 22, 1987. The Trust's fiscal year-end was changed from
December 31 to August 31 in 1993. The following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of its
financial statements. A. SECURITY VALUATION - Equity securities traded on
national securities exchanges or in the over-the-counter market are valued at
the last sale price in the market where such securities are primarily traded. If
last sale prices are not available, securities are valued at the highest closing
bid price obtained from one or more dealers making a market for such securities
or by a pricing service approved by the Trust's trustees. Debt securities are
valued at evaluated bid prices as determined by a pricing service approved by
the Trust's trustees. If evaluated bid prices are not available, debt securities
are valued by averaging the bid prices obtained from one or more dealers making
a market for such securities. If market quotations or pricing service valuations
are not readily available, securities are valued at fair value as determined in
good faith by the Trust's trustees. Short-term securities are stated at
amortized cost (which approximates market value) if maturity is 60 days or less,
or at market value if maturity is greater than 60 days. B. REPURCHASE AGREEMENTS
- - - Repurchase agreements held by the Trust are fully collateralized by U.S.
Government securities and such collateral is in the possession of the Trust's
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for on the trade date and dividend income is recorded
on the ex dividend date. Interest income, which may be comprised of stated
coupon rate, market discount and original issue discount is recorded on the
accrual basis. Discounts on debt securities purchased are amortized over the
life of the respective security as adjustments to interest income. Cost is
determined on the specific identification basis. Investments in securities of
governmental agencies may only be guaranteed by the respective agency's limited
authority to borrow from the U. S. Government and may not be guaranteed by the
full faith and credit of the United States. D. FEDERAL AND STATE TAXES - The
Trust has complied with the provisions of the Internal Revenue Code applicable
to regulated investment companies and, accordingly, has made or intends to make
sufficient distributions of net investment income and net realized capital
gains, if any, to relieve it from all federal and state income taxes and federal
excise taxes. Government Bond incurred and elected to defer post-October 31 net
capital losses of $31,563 to the period ended August 31, 1994. To the extent
future capital gains are offset by such deferred losses, these gains will not be
distributed to shareholders. Dividends paid by the Trust from net investment
income and distributions of net realized short-term capital gains are, for
federal income tax purposes, taxable as ordinary income to shareholders. E.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - For Value Equity and Total Return
Funds dividends and distributions to shareholders are recorded on the ex
dividend/distribution date. All of Government Bond net investment income is
distributed to shareholders by dividends declared daily and paid monthly.
Reinvestment of dividends is effected at the month-end net asset value. The
Trust distributes net realized capital gains, if any, to its shareholders at
least annually, if not offset by capital loss carryovers. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for mortgage-backed
securities, market discounts, nontaxable dividends, net operating losses,
expiring capital loss carryforwards and deferral of wash sales. F. EXPENSES -
Each of the Funds bears expenses incurred specifically on its behalf and, in
addition, each Fund bears a portion of general expenses, based on the relative
net assets of each Fund. NOTE 2 - INVESTMENT ADVISORY AND OTHER AGREEMENTS.
INVESCO Funds Group, Inc. ("IFG") serves as the Trust's investment adviser. As
compensation for its services to the Trust, IFG receives an investment advisory
fee which is accrued daily at the applicable rate and paid monthly. The fee is
based on the annual rate of each Fund's average net assets as follows:
AVERAGE NET ASSETS
%0 to $500 Million over
$500 to $1 $1
Fund Million Billion Billion
Government Bond 0.60% 0.50% 0.40%
Total Return 0.75% 0.65% 0.50%
Value Equity 0.75% 0.65% 0.50%
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Capital
Management, Inc. ("ICM"), an affiliate of IFG, investment decisions of the Trust
are made by ICM. Fees for such sub-advisory services are paid by IFG. In
accordance with an Administrative Agreement, each Fund pays IFG an annual fee of
$10,000, plus an additional amount computed at an annual rate of 0.015% of
average net assets to provide administrative, accounting and clerical services.
The fee is accrued daily and paid monthly. IFG receives a transfer agent fee at
an annual rate of $14.00 for Total Return Fund and Value Equity Fund, and $20.00
for Government Bond Fund per shareholder account, or per participant in an
omnibus account. IFG may pay such fee for participants in omnibus accounts to
affiliates or third parties. The fee is paid monthly at one-twelfth of the
annual fee and is based upon the actual number of accounts in existence during
each month. NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the
six-months ended February 28, 1995, the aggregate cost of purchases and proceeds
from sales of investment securities (excluding all U.S. Government securities
and short-term securities) were as follows:
Fund Purchases Sales
Total Return $17,480,440 $13,489,977
Value Equity 42,389,385 29,720,017
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities were as follows:
Fund Purchases Sales
Government Bond $31,924,831 $24,184,727
Total Return 109,798,906 79,379,837
NOTE 4 - APPRECIATION AND DEPRECIATION. At February 28, 1995, the gross
appreciation of securities in which there was an excess of value over tax cost,
the gross depreciation of securities in which there was an excess of tax cost
over value and the resulting net appreciation (depreciation) by Fund were as
follows:
Net
Gross Gross Appreciation
Appreciation Depreciation (Depreciation)
Government Bond $317,881 $556,604 $(238,723)
Total Return 39,390,842 5,891,055 33,499,788
Value Equity 13,471,621 3,104,748 10,366,873
NOTE 5 - TRANSACTIONS WITH AFFILIATES. Certain of the Trust's officers and
trustees are also officers and directors of ICM or IFG. The Trust has adopted an
unfunded noncontributory defined benefit pension plan covering all independent
trustees of the Trust who will have served as an independent trustee for at
least five years at the time of retirement. Benefits under this plan are based
on an annual rate equal to 25% of the retainer fee at the time of retirement.
Pension expenses for the six-months ended February 28, 1995, included in
Trustees' Fees and Expenses in the Statements of Operations, prepaid pension
costs and accrued pension liability included in prepaid expenses and accrued
expenses, respectively, in the Statement of Assets and Liabilities were as
follows:
Prepaid Accrued
Pension Pension Pension
Fund Expenses Costs Liability
Government Bond $32 $1,608 $1,640
Total Return 297 14,924 15,221
Value Equity 122 6,113 6,235
<PAGE>
INVESCO Value Trust
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six-Months Year Period
Ended Ended Ended
February 28 August 31 August 31 Year Ended December 31
1995 1994 1993 1992 1991 1990
UNAUDITED (Note 1)
<S> <C> <C> <C> <C> <C> <C>
Intermediate Government Bond Fund
PER SHARE DATA
Net Asset Value-- Beginning of Period $12.16 $13.25 $12.68 $12.89 $12.13 $12.07
------ ------ ------ ------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.36 0.70 0.48 0.90 0.89 1.00
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.00 (0.75) 0.57 (0.16) 0.77 0.05
------ ------ ------ ------------------------------
Total from Investment Operations 0.36 (0.05) 1.05 0.74 1.66 1.05
------ ------ ------ ------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ 0.36 0.70 0.48 0.90 0.90 0.99
Distributions from Capital Gains 0.00 0.34 0.00 0.05 0.00 0.00
------ ------ ------ ------------------------------
Total Distributions 0.36 1.04 0.48 0.95 0.90 0.99
Net Asset Value-- End of Period $12.16 $12.16 $13.25 $12.68 $12.89 $12.13
====== ====== ====== ==============================
TOTAL RETURN 3.02%* (0.37%) 8.38%* 6.03% 14.16% 9.08%
RATIOS
Net Assets-- End of Period ($000 Omitted) $40,432 $31,861 $39,384 $29,649 $24,385 $18,380
Ratio of Expenses to Average Net Assets# 0.63%* 1.07% 0.96%~ 0.97% 0.93% 0.85%
Ratio of Net Investment Income to
Average Net Assets# 3.00%* 5.58% 5.48%~ 6.38% 7.28% 8.16%
Portfolio Turnover Rate 76%* 49% 34%* 93% 51% 31%
<FN>
+Distributions in excess of net investment income for the year ended August 31,
1994 aggregated less than $0.01 on a per share basis.
*These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
#Various expenses of the Fund were voluntarily absorbed by IFG for the year
ended December 31, 1990. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 0.96% and ratio of net
investment income to average net assets would have been 8.05%.
~Annualized
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INVESCO Value Trust
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Six-Months Year Period
Ended Ended Ended
February 28 August 31 August 31 Year Ended December 31
1995 1994 1993 1992 1991 1990
UNAUDITED (Note 1)
<S> <C> <C> <C> <C> <C> <C>
Total Return Fund
PER SHARE DATA
Net Asset Value-- Beginning of Period $18.54 $18.27 $17.18 $16.43 $14.21 $15.08
------ ------ ------ ------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.36 0.69 0.40 0.66 0.71 0.74
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.29 0.60 1.09 0.93 2.78 (0.80)
------ ------ ------ ------------------------------
Total from Investment Operations 0.65 1.29 1.49 1.59 3.49 (0.06)
------ ------ ------ ------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.36 0.60 0.40 0.65 0.72 0.75
In Excess of Net Investment Income 0.00 0.09 0.00 0.00 0.00 0.00
Distributions from Capital Gains 0.05 0.17 0.00 0.19 0.55 0.06
In Excess of Capital Gains 0.00 0.16 0.00 0.00 0.00 0.00
------ ------ ------ -----------------------------
Total Distributions 0.41 1.02 0.40 0.84 1.27 0.81
------ ------ ------ -----------------------------
Net Asset Value-- End of Period $18.78 $18.54 $18.27 $17.18 $16.43 $14.21
====== ====== ====== =============================
TOTAL RETURN 3.55%* 7.22% 8.72%* 9.84% 24.96% (0.35%)
RATIOS
Net Assets-- End of Period ($000 Omitted) $333,602 $292,765 $220,224 $137,196 $82,219 $54,874
Ratio of Expenses to Average Net Assets 0.47%* 0.96% 0.93%~ 0.88% 0.92% 1.00%
Ratio of Net Investment Income to
Average Net Assets 2.01%* 3.31% 3.51%~ 4.06% 4.62% 5.22%
Portfolio Turnover Rate 32%* 12% 19%* 13% 49% 24%
<FN>
*These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year.
~Annualized
</FN>
</TABLE>
<PAGE>
INVESCO Value Trust
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Six-Months Year Period
Ended Ended Ended
February 28 August 31 August 31 Year Ended December 31
1995 1994 1993 1992 1991 1990
UNAUDITED (Note 1)
<S> <C> <C> <C> <C> <C> <C>
Value Equity Fund
PER SHARE DATA
Net Asset Value-- Beginning of Period $18.12 $17.79 $16.91 $16.57 $13.88 $15.32
------ ------ ------ ------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.19 0.36 0.24 0.36 0.40 0.44
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.59 1.20 0.88 0.45 4.54 (1.33)
------ ------ ------ ------------------------------
Total from Investment Operations 0.78 1.56 1.12 0.81 4.94 (0.89)
------ ------ ------ ------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.19 0.31 0.24 0.34 0.40 0.47
In Excess of Net Investment Income 0.00 0.04 0.00 0.00 0.00 0.00
Distributions from Capital Gains 1.17 0.88 0.00 0.13 1.85 0.06
------ ------ ------ ------------------------------
Total Distributions 1.36 1.23 0.24 0.47 2.25 0.53
------ ------ ------ ------------------------------
Net Asset Value-- End of Period $17.54 $18.12 $17.79 $16.91 $16.57 $13.80
====== ====== ====== ==============================
TOTAL RETURN 4.72%* 9.09% 6.65%* 4.98% 35.84% (5.80%)
RATIOS
Net Assets-- End of Period ($000 Omitted) $127,172 $111,850 $81,914 $78,608 $39,741 $29,825
Ratio of Expenses to Average Net Assets# 0.49%* 1.35% 1.00%~ 0.91% 0.98% 1.00%
Ratio of Net Investment Income to
Average Net Assets# 1.11%* 2.42% 2.07%~ 2.19% 2.39% 3.00%
Portfolio Turnover Rate 11%* 53% 35%* 37% 64% 23%
<FN>
*These amounts are based on operations for the period shown and, accordingly are
not representative of a full year.
#Various expenses of the Fund were voluntarily absorbed by IFG for the year
ended December 31, 1990. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 1.04% and ratio of net
investment income to average net assets would have been 2.96%.
~Annualized
</FN>
</TABLE>
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INVESCO FUNDS
To receive general information and prospectuses on any of INVESCO's funds
or retirement plans, or to obtain current account or price information.
Call toll-free: 1-800-525-8085
To reach PAL, your 24-hour Personal Account Line, call: 1-800-424-8085
Or write to:
INVESCO Funds Group, Inc., Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied by a current prospectus.
