ANNUAL REPORT
August 31, 1995
INVESCO
VALUE
TRUST
INVESCO FUNDS
<PAGE>
Market Overview September 1995
The U.S. economy may be close to achieving the "soft landing" analysts have
hoped for. Fearing the long-term, corrosive effects of inflation, the Federal
Reserve Board actively sought to slow the U.S. economy in 1994. Over a period of
12 months, they doubled short-term interest rates.
The plan may have worked. After impressive annualized growth rates of
6.3%, 3.3%, 3.8%, 3.4%, and 5.1% in consecutive quarters, GDP advanced just 2.7%
during the first three months of 1995, and was estimated at 1.3% in the second
quarter. Now that they've reined in the galloping expansion, the Fed will act to
keep it at a sustainable trot. In July, they cut short-term interest rates by
0.25%, and further cuts may be made if additional stimulus is required.
Given the advances in the U.S. equities markets in the first half of 1995,
we're likely to see a period when the market "digests" its gains -- as
technology stocks did in mid-July, for instance. However, we do not anticipate a
significant setback in prices over the fourth quarter.
In our opinion, it's possible interest rates will drop further in 1995.
That will ease inflationary pressure somewhat, as well as have a positive impact
on the bond market. Short-term rates could drop to 5.5% or less, compared to a
6% Fed funds rate as of late June. The benchmark 30-year Treasury bond is now
yielding around 6.6%; we may expect to see that gradually decrease. Overall,
bond prices have advanced strongly since the fourth quarter of 1994.
--------------------------------
The line graphs on the following pages illustrate the value of a $10,000
investment in the INVESCO Value Trust Funds, plus reinvested dividends and
capital gain distributions, for the periods through 8/31/95. (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 indexes do
not have expenses, which would, of course, have lowered their performance.
Value Equity Fund
For the year ended 8/31/95, INVESCO Value Equity Fund had a total return
of 17.84%. During the same period, the S&P 500 index achieved a total return of
21.35%. (Of course, past performance is not a guarantee of future results.)*
Value Equity Fund
Average Annualized Total Return
as of 8/31/95*
1 year 17.84%
-------------------------------
5 years 15.49%
-------------------------------
Since inception (5/86) 11.77%
-------------------------------
During the first half of the fund's fiscal year -- September 1994 through
February 1995 -- the market 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
during this six-month period. Our substantial weighting in health-care issues
was another positive factor.
The six months ended 8/31/95 told a different tale. As fears of recession
and inflation faded, growth stocks returned to favor. Technology and financial
companies especially saw strong price advances. Our portfolio strategy relies on
selection of individual stocks, rather than concentrating on particular industry
sectors; while we hold positions in a wide variety of industries, we do not
utilize a timing strategy that temporarily focuses on particular sectors in
turn. As a result of our diversification policy, the fund underperformed the
broad equity market during this six-month period.
<PAGE>
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the Value Equity Fund to the value of a $10,000 investment in the
S&P 500 Index, assuming in each case reinvestment of all dividends and capital
gain distributions, for the period from inception (5/86) through 8/31/95.
The fund's performance has benefited from its holdings in financial and
technology stocks. For instance, American International Group, General Re, and
Morgan Stanley Group have all performed well since their initial purchase, as
have Compaq Computer, Hewlett-Packard Co, and Computer Associates International.
Over the past months, we have taken positions in stocks in a variety of
industries. These include insurance (Marsh & McLennan), publishing (Gannett Co),
retail (J C Penney Co), and utilities (Southern Corp).
We have closed several positions which no longer met our criteria. These
included firms whose marketing positions or managements, for instance, led us to
downgrade their long-term prospects, such as Pioneer Hi-Bred International
(agriculture), Salomon Inc (investment brokers), and Liz Claiborne (textiles &
apparel manufacturers).
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 an MBA
from the University of Central Florida and a BA from the University of South
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.
Intermediate Government Bond Fund
For the year ended 8/31/95, INVESCO Intermediate Government Bond Fund had
a total return of 10.36%. During the same period, the Lehman Intermediate
Government Bond Index had a total return of 8.95%. We are pleased to note that
in their 2/6/95 issue, U.S. News & World Report placed Intermediate Government
Bond Fund among its "best funds for the long haul." Your fund was rated #8 of
572 medium-term government bond funds.** (Of course, past performance is not a
guarantee of future results.)*
Intermediate Government Bond Fund
Average Annualized Total Return
as of 8/31/95*
1 year 10.36%
----------------------------------
5 years 8.77%
----------------------------------
Since inception (5/86) 7.28%
----------------------------------
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the Intermediate Government Bond Fund to the value of a $10,000
investment in the Lehman Intermediate Government Bond Fund Index, assuming in
each case reinvestment of all dividends and capital gain distributions, for the
period from inception (5/86) through 8/31/95.
Since the summer of 1994, our investment strategy regarding duration 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. This is now
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 on government securities rose to levels where they represented good value
given inflation trends.
<PAGE>
As we mentioned in the semiannual report dated 2/28/95, we have reduced
the allocation to government agency bonds 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.
Total Return Fund
For the year ended 8/31/95, INVESCO Total Return Fund achieved a total
return of 17.54%. During the same period, the S&P 500 had a total return of
21.35%, while the Lehman Government/Corporate Index had a total return of
11.49%. In the issue dated 2/6/95, U.S. News & World Report placed Total Return
Fund among its "best funds for the long haul," rating the fund #8 of 343
balanced/total return funds.** (Of course, past performance is not a guarantee
of future results.)*
Over the first half of the fund's fiscal year, we substantially lengthened
bond duration. At that time, we were finding better values at the longer end of
the yield curve. By 2/28/95, we had extended bond duration to over seven years.
That position reflected our view that "real" interest rates (adjusted for
inflation) were quite high by historical standards.
Simultaneously, we have shifted the bond allocation down in favor of a
higher concentration in equities, which in our opinion enjoy better near-term
prospects for superior total returns.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in the Total Return Fund to the value of a $10,000 investment in the
S&P 500 and Lehman Government/Corporate Indexes, assuming in each case
reinvestment of all dividends and capital gain distributions, for the period
from inception (9/87) through 8/31/95.
We continue to find direct Treasury obligations more attractively valued
than government agency and corporate obligations. As a result, fixed-income
holdings overwhelmingly consist of Treasury bonds and notes.
Among our new common stock holdings, you will find several financial
stocks, such as First Union and NBD Bancorp (banking), Deluxe Corp (finance
related), and Marsh & McLennan (insurance). These stocks fit our profile of
companies with strong past earnings growth, temporarily out of favor with the
market. Other new holdings include General Electric (diversified),
Kimberly-Clark Corp (paper products), and Bristol-Myers Squibb (medical
related-drugs).
Total Return Fund
Average Annualized Total Return
as of 8/31/95*
1 year 17.54%
-------------------------------
5 years 14.47%
-------------------------------
Since inception (9/87) 12.32%
-------------------------------
We have also taken a position in Telefonos de Mexico SA de CV Sponsored
ADR (utilities). In our opinion, this stock was unfairly tarred by the same
brush that took all Mexican stocks down after the peso devaluation last winter.
Over the longer term, we anticipate that the market will recognize and reward
the company's strong fundamentals.
<PAGE>
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
12-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.
*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 Index is an unmanaged index considered
representative of the broad bond market, while the Lehman Government
Intermediate Bond Index is an unmanaged index of government bonds with average
maturities under 10 years.
**U.S. News & World Report 2/6/95, ranking of funds at least three years
old and with assets of at least $25 million. Rankings were based on total return
over the one-, three-, five- and 10-year periods ended 12/31/94 and during the
1990 bear market, plus volatility over the three years ended 12/31/94.
<PAGE>
INVESCO Value Trust
Ten Largest Common Stock Holdings
August 31, 1995
Description Value
- --------------------------------------------------------------------
TOTAL RETURN Fund
Ford Motor $7,656,250
Philip Morris 7,462,500
General Electric 7,359,375
International Business Machines 7,236,250
Dun & Bradstreet 7,234,375
NBD Bancorp 7,150,000
Lilly (Eli) & Co 6,959,375
American Home Products 6,930,000
Bristol-Myers Squibb 6,862,500
Lockheed Martin 6,696,250
VALUE EQUITY Fund
Philip Morris $ 3,731,250
Dun & Bradstreet 3,472,500
Dow Chemical 3,256,000
WMX Technologies 3,055,000
Hewlett-Packard Co 3,040,000
PepsiCo Inc 2,932,200
Pitney-Bowes Inc 2,912,813
Textron Inc 2,877,000
Columbia/HCA Healthcare 2,867,000
Disney (Walt) Co 2,806,250
Composition of holdings is subject to change.
<PAGE>
INVESCO Value Trust
Statement of Investment Securities
August 31, 1995
- ------------------------------------------------------------------------
Shares or
Principal
Description Amount Value
- ------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT BOND Fund
FIXED INCOME SECURITIES 86.00%
US Government Obligations 79.14%
US Treasury Bonds
9.375%, 2/15/2006 $ 3,000,000 $ 3,675,000
8.125%, 8/15/2019 $ 4,000,000 4,622,500
US Treasury Notes
8.500%, 7/15/1997 $ 4,000,000 4,186,244
8.500%, 2/15/2000 $ 4,000,000 4,376,244
6.375%, 7/15/1999 $ 4,000,000 4,045,000
6.375%, 8/15/2002 $ 2,000,000 2,017,500
5.125%, 3/31/1998 $ 5,000,000 4,906,250
US Treasury Security Stripped
Interest Payment, Generic Tint
Payment, Zero Coupon, 11/15/2004 $ 2,000,000 1,113,038
-----------
TOTAL US GOVERNMENT
OBLIGATIONS
(Cost $27,532,826) 28,941,776
-----------
US Government Agency Obligations 6.86%
Government National Mortgage
Association I, Modified
Pass-Through Certificates
7.000%, 10/15/2008 $ 802,003 805,884
6.500%, 10/15/2008 $ 856,674 845,861
6.000%, 11/15/2008 $ 881,566 856,203
-----------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $2,610,936) 2,507,948
-----------
TOTAL FIXED INCOME SECURITIES
(Cost $30,143,762) 31,449,724
-----------
SHORT-TERM INVESTMENTS 14.00%
US Government Obligations 9.68%
US Treasury Notes
7.375%, 5/15/1996
(Cost $3,577,432) $ 3,500,000 3,540,464
-----------
Repurchase Agreements 4.32%
Repurchase Agreement with
State Street Bank & Trust Co
dated 8/31/1995 due 9/1/1995
at 5.250%, repurchased at
$1,580,230 (Collateralized by
US Treasury Notes due 5/31/1999
at 6.750%, value $1,610,976)
(Cost $1,580,000) $ 1,580,000 1,580,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $5,157,432) 5,120,464
-----------
<PAGE>
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $35,301,194)
(Cost for Income Tax Purposes
$35,305,717) $36,570,188
===========
TOTAL RETURN Fund
COMMON STOCKS 60.35%
AEROSPACE & DEFENSE 2.05%
Boeing Co 75,000 $4,781,250
Lockheed Martin 110,000 6,696,250
-----------
11,477,500
-----------
AUTOMOBILE RELATED 1.37%
Ford Motor 250,000 7,656,250
-----------
BANKING 5.42%
First of America Bank 125,000 5,531,250
First Union 132,000 6,616,500
NBD Bancorp 200,000 7,150,000
NationsBank Corp 100,000 6,137,500
Wachovia Corp 125,000 4,968,750
-----------
30,404,000
-----------
CHEMICALS 1.60%
Dow Chemical 50,000 3,700,000
Imperial Chemical
Industries PLC ADR 110,000 5,238,750
-----------
8,938,750
-----------
COMPUTER RELATED 4.55%
Compaq Computer* 125,000 5,968,750
Computer Associates International 91,000 6,324,500
Hewlett-Packard Co 75,000 6,000,000
International Business Machines 70,000 7,236,250
-----------
25,529,500
-----------
DIVERSIFIED COMPANIES 6.49%
du Pont (E I) de Nemours 50,000 3,268,750
General Electric 125,000 7,359,375
Hanson PLC Sponsored ADR 300,000 5,137,500
Loews Corp 30,000 3,941,250
Minnesota Mining & Manufacturing 100,000 5,462,500
National Service Industries 100,000 2,900,000
Norsk Hydro AS Sponsored ADR 100,000 4,225,000
Textron Inc 60,000 4,110,000
-----------
36,404,375
-----------
FINANCE RELATED 1.99%
Deluxe Corp 125,000 3,906,250
Dun & Bradstreet 125,000 7,234,375
-----------
11,140,625
-----------
<PAGE>
FOOD PRODUCTS & BEVERAGES 2.95%
Anheuser-Busch Cos 100,000 5,712,500
Heinz (H J) Co 110,000 4,661,250
Unilever NV New York Shrs 50,000 6,181,250
-----------
16,555,000
-----------
FOOD STORES -- WHOLESALE 0.69%
SuperValu Inc 130,000 3,851,250
-----------
HEALTH CARE FACILITIES 0.96%
Columbia/HCA Healthcare 115,000 $ 5,405,000
-----------
INSURANCE 2.88%
American General 100,000 3,525,000
Marsh & McLennan 75,000 6,178,125
SAFECO Corp 100,000 6,462,500
-----------
16,165,625
-----------
INVESTMENT BROKERS 1.16%
Morgan Stanley Group 75,000 6,515,625
-----------
MEDICAL RELATED -- DRUGS 5.28%
Abbott Laboratories 100,000 3,875,000
American Home Products 90,000 6,930,000
Bristol-Myers Squibb 100,000 6,862,500
Lilly (Eli) & Co 85,000 6,959,375
Merck & Co 100,000 4,987,500
-----------
29,614,375
-----------
METALS 0.44%
Alcan Aluminum 75,000 2,446,875
-----------
OIL & GAS RELATED 3.05%
Amoco Corp 75,000 4,781,250
Repsol SA Sponsored ADR 200,000 6,325,000
Royal Dutch Petroleum
5 Gldr Shrs 50,000 5,962,500
-----------
17,068,750
-----------
PAPER & PAPER PRODUCTS 1.93%
Kimberly-Clark Corp 100,000 6,387,500
Westvaco Corp 100,000 4,412,500
-----------
10,800,000
-----------
POLLUTION CONTROL RELATED 0.60%
Browning-Ferris Industries 100,000 3,362,500
-----------
PRINTING & PUBLISHING 1.19%
Gannett Co 125,000 6,687,500
-----------
RETAIL 5.26%
K mart Corp 300,000 4,087,500
McDonald's Corp 100,000 3,650,000
Melville Corp 150,000 5,006,250
Penney (J C) Co 125,000 5,656,250
Rite Aid 175,000 4,900,000
Tandy Corp 100,000 6,212,500
-----------
29,512,500
-----------
<PAGE>
TEXTILES & APPAREL
MANUFACTURERS 1.61%
Liz Claiborne 200,000 4,550,000
Shaw Industries 300,000 4,500,000
-----------
9,050,000
-----------
TOBACCO 2.46%
American Brands 150,000 6,300,000
Philip Morris 100,000 7,462,500
-----------
13,762,500
-----------
TOOLS 0.89%
Snap-On Inc 122,000 5,002,000
-----------
TRANSPORTATION 1.08%
Roadway Services 110,000 6,050,000
-----------
UTILITIES 4.45%
NYNEX Corp 135,000 $6,075,000
Telefonica de Espana SA
Sponsored ADR 125,000 5,078,125
Telefonos de Mexico SA
de CV Sponsored ADR
Representing Ord Series L Shrs 150,000 4,912,500
Texas Utilities 175,000 6,081,250
Unicom Corp 100,000 2,812,500
-----------
24,959,375
-----------
TOTAL COMMON STOCKS
(Cost $271,776,422) 338,359,875
-----------
FIXED INCOME SECURITIES 28.77%
US Government Obligations 25.83%
US Treasury Bonds
9.375%, 2/15/2006 $15,000,000 18,375,000
9.250%, 2/15/2016 $16,000,000 20,380,000
8.125%, 8/15/2019 $16,000,000 18,490,000
7.250%, 8/15/2022 $20,000,000 21,156,240
6.250%, 8/15/2023 $ 3,500,000 3,281,250
US Treasury Notes
8.750%, 8/15/2000 $15,000,000 16,682,790
8.250%, 7/15/1998 $ 8,000,000 8,475,000
8.000%, 1/15/1997 $ 4,000,000 4,116,244
7.875%, 1/15/1998 $ 1,750,000 1,825,469
7.875%, 11/15/1999 $ 7,100,000 7,568,146
6.375%, 7/15/1999 $ 3,000,000 3,033,750
6.375%, 8/15/2002 $15,000,000 15,131,250
5.750%, 8/15/2003 $ 3,500,000 3,380,776
5.500%, 2/28/1999 $ 3,000,000 2,954,058
-----------
TOTAL US GOVERNMENT
OBLIGATIONS
(Cost $134,197,818) 144,849,973
-----------
US Government Agency Obligations 1.09%
Federal National Mortgage
Association, Gtd Mortgage
Pass-Through Certificates
7.500%, 8/1/2007 $ 2,280,997 2,319,955
<PAGE>
Government National Mortgage
Association I, Modified
Pass-Through Certificates
7.000%, 10/15/2008 $1,237,942 1,243,932
6.500%, 10/15/2008 $1,285,011 1,268,793
6.000%, 11/15/2008 $1,322,349 1,284,304
-----------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $6,250,303) 6,116,984
-----------
Corporate Bonds 1.85%
AEROSPACE & DEFENSE 0.27%
Rockwell International, Notes
6.625%, 6/1/2005 $1,500,000 1,483,411
-----------
AUTOMOBILE RELATED 0.14%
Ford Motor, Notes
7.500%, 11/15/1999 $ 750,000 $ 773,392
-----------
BANKING 0.57%
National City Bank, Sub Notes
7.200%, 5/15/2005 $2,000,000 2,026,374
NationsBank Corp, Sr Notes
5.375%, 4/15/2000 $1,250,000 1,192,836
-----------
3,219,210
-----------
FINANCE RELATED 0.14%
Beneficial Corp
Medium-Term Notes
5.350%, 10/8/1998 $ 800,000 775,887
-----------
FOOD PRODUCTS & BEVERAGES 0.28%
PepsiCo Inc, Deb
7.750%, 10/1/1998 $1,500,000 1,561,703
-----------
RETAIL 0.13%
Wal-Mart Stores, Notes
5.500%, 3/1/1998 $ 750,000 737,880
-----------
UTILITIES 0.32%
Duke Power, 1st & Ref Mortgage
7.500%, 4/1/1999 $1,000,000 1,032,525
Union Electric, 1st Mortgage
6.750%, 10/15/1999 $ 750,000 756,377
-----------
1,788,902
-----------
TOTAL CORPORATE BONDS
(Cost $10,482,629) 10,340,385
-----------
TOTAL FIXED INCOME SECURITIES
(Cost $150,930,750) 161,307,342
-----------
SHORT-TERM INVESTMENTS 10.88%
US Government Obligations 0.60%
US Treasury Notes
7.375%, 5/15/1996
(Cost $3,354,656) $3,300,000 3,338,151
-----------
<PAGE>
Corporate Bonds 0.48%
FINANCE RELATED 0.21%
Associates Corp of
North America, Notes
4.750%, 8/1/1996 $1,200,000 1,186,385
-----------
WASTE MANAGEMENT 0.27%
Waste Management, Notes
7.875%, 8/15/1996 $1,500,000 1,525,103
-----------
TOTAL CORPORATE BONDS
(Cost $2,738,466) 2,711,488
-----------
Commercial Paper 9.58%
AEROSPACE & DEFENSE 0.89%
Raytheon Co
5.690%, 9/8/1995 $5,000,000 4,994,468
-----------
FINANCE RELATED 3.88%
American General Capital
5.850%, 9/1/1995 $1,800,000 1,800,000
Bell Atlantic Financial Services
5.720%, 9/11/1995 $5,000,000 4,992,056
Cargill Inc
5.700%, 9/20/1995 $5,000,000 $ 4,984,958
National Rural Utilities Cooperative
Finance, 5.700%, 9/28/1995 $5,000,000 4,978,625
South Carolina Fuel
5.740%, 9/22/1995 $5,000,000 4,983,258
-----------
21,738,897
-----------
FOOD PRODUCTS & BEVERAGES 0.89%
Campbell Soup
5.700%, 9/29/1995 $5,000,000 4,977,833
-----------
INSURANCE 0.89%
AIG Funding
5.680%, 9/22/1995 $5,000,000 4,983,433
-----------
MEDICAL RELATED -- DRUGS 1.15%
Abbott Laboratories
5.700%, 9/27/1995 $6,500,000 6,473,242
-----------
PRINTING & PUBLISHING 0.99%
Donnelley (R R) & Sons
5.700%, 9/14/1995 $5,600,000 5,588,473
-----------
TELECOMMUNICATIONS 0.89%
AT & T Corp
5.690%, 9/22/1995 $5,000,000 4,983,404
-----------
TOTAL COMMERCIAL PAPER
(Cost $53,739,750) 53,739,750
-----------
Repurchase Agreements 0.22%
Repurchase Agreement with
State Street Bank & Trust Co
dated 8/31/1995 due 9/1/1995
at 5.250%, repurchased at
$1,245,182 (Collateralized
by US Treasury Notes due
5/31/1999 at 6.750%, value
$1,273,190)(Cost $1,245,000) $1,245,000 1,245,000
-----------
<PAGE>
TOTAL SHORT-TERM INVESTMENTS
(Cost $61,077,872) 61,034,389
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $483,785,044)
(Cost for Income Tax Purposes
$483,799,704) $ 560,701,606
=============
VALUE EQUITY Fund
COMMON STOCKS 99.26%
AEROSPACE & DEFENSE 4.24%
Boeing Co 25,000 $ 1,593,750
Lockheed Martin 35,860 2,182,978
Raytheon Co 32,000 2,588,000
-----------
6,364,728
-----------
AUTOMOBILE RELATED 2.39%
Cooper Tire & Rubber 60,000 $ 1,560,000
Ford Motor 66,000 2,021,250
-----------
3,581,250
-----------
BANKING 4.16%
Boatmen's Bancshares 53,000 1,961,000
NBD Bancorp 60,000 2,145,000
Wachovia Corp 53,700 2,134,575
-----------
6,240,575
-----------
CHEMICALS 3.08%
Dow Chemical 44,000 3,256,000
Nalco Chemical 39,000 1,365,000
-----------
4,621,000
-----------
COMPUTER RELATED 6.12%
Automatic Data Processing 20,200 1,313,000
Compaq Computer* 56,000 2,674,000
Computer Associates International 31,000 2,154,500
Hewlett-Packard Co 38,000 3,040,000
-----------
9,181,500
-----------
DIVERSIFIED COMPANIES 6.13%
General Electric 42,100 2,478,637
Hanson PLC Sponsored ADR 128,300 2,197,137
Minnesota Mining & Manufacturing 30,000 1,638,750
Textron Inc 42,000 2,877,000
-----------
9,191,524
-----------
ELECTRICAL EQUIPMENT 1.55%
Emerson Electric 32,700 2,333,962
-----------
FINANCE RELATED 2.31%
Dun & Bradstreet 60,000 3,472,500
-----------
<PAGE>
FOOD PRODUCTS & BEVERAGES 5.18%
Anheuser-Busch Cos 23,000 1,313,875
Heinz (H J) Co 35,000 1,483,125
PepsiCo Inc 64,800 2,932,200
Tyson Foods Class A 79,200 2,039,400
-----------
7,768,600
-----------
FOOD STORES -- WHOLESALE 0.86%
Fleming Cos 44,500 1,296,062
-----------
HEALTH CARE FACILITIES 2.99%
Columbia/HCA Healthcare 61,000 2,867,000
Manor Care 50,000 1,618,750
-----------
4,485,750
-----------
HOUSEHOLD APPLIANCES 1.67%
Maytag Corp 161,700 2,506,350
-----------
INSURANCE 8.49%
American General 67,000 2,361,750
American International Group 28,500 2,297,812
General Re 18,000 2,675,250
Jefferson-Pilot Corp 29,050 1,826,519
Marsh & McLennan 20,000 1,647,500
SAFECO Corp 30,000 1,938,750
-----------
12,747,581
-----------
INVESTMENT BROKERS 1.79%
Morgan Stanley Group 31,000 2,693,125
-----------
MEDICAL RELATED -- DRUGS 10.80%
Abbott Laboratories 57,000 $ 2,208,750
American Home Products 26,000 2,002,000
Bristol-Myers Squibb 30,000 2,058,750
Lilly (Eli) & Co 32,000 2,620,000
Merck & Co 48,000 2,394,000
Schering-Plough Corp 47,400 2,210,025
Warner-Lambert Co 30,000 2,711,250
-----------
16,204,775
-----------
OFFICE EQUIPMENT 1.94%
Pitney-Bowes Inc 71,700 2,912,813
-----------
OIL & GAS RELATED 6.24%
Amoco Corp 40,000 2,550,000
Exxon Corp 35,275 2,425,156
Repsol SA Sponsored ADR 55,400 1,752,025
Royal Dutch Petroleum
5 Gldr Shrs 22,076 2,632,563
-----------
9,359,744
-----------
PAPER & PAPER PRODUCTS 1.25%
Westvaco Corp 42,700 1,884,138
-----------
POLLUTION CONTROL RELATED 2.45%
Browning-Ferris Industries 18,500 $ 622,063
WMX Technologies 104,000 3,055,000
-----------
3,677,063
-----------
<PAGE>
PRINTING & PUBLISHING 1.91%
Donnelley (R R) & Sons 33,000 1,254,000
Gannett Co 30,000 1,605,000
-----------
2,859,000
-----------
RECREATION SERVICES 1.87%
Disney (Walt) Co 50,000 2,806,250
-----------
RETAIL 8.34%
Dillard Department Stores Class A 57,000 1,759,875
Giant Food Class A 64,000 1,992,000
Home Depot 50,800 2,025,650
K mart Corp 125,800 1,714,025
McDonald's Corp 67,000 2,445,500
Penney (J C) Co 34,000 1,538,500
Toys "R" Us* 40,000 1,040,000
-----------
12,515,550
-----------
TELECOMMUNICATIONS 1.03%
Southern New England
Telecommunications 46,000 1,546,750
-----------
TEXTILES & APPAREL
MANUFACTURERS 2.15%
Russell Corp 44,700 1,229,250
Shaw Industries 133,100 1,996,500
-----------
3,225,750
-----------
TOBACCO 3.41%
Philip Morris 50,000 3,731,250
UST Inc 50,800 1,384,300
-----------
5,115,550
-----------
TRANSPORTATION 1.44%
Hunt (J B) Transport Services 63,000 1,008,000
Illinois Central Series A 30,000 1,151,250
-----------
2,159,250
-----------
UTILITIES 5.47%
CINergy Corp 100,700 $2,580,438
SCEcorp 93,000 1,546,125
Southern Co 50,000 1,056,250
Telefonos de Mexico
de CV Sponsored ADR
Representing Ord Series L Shrs 58,000 1,899,500
Unicom Corp 40,000 1,125,000
-----------
8,207,313
-----------
TOTAL COMMON STOCKS
(Cost $124,789,343) 148,958,453
-----------
<PAGE>
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 0.74%
Repurchase Agreement with State Street
Bank & Trust Co dated 8/31/1995 due
9/1/1995 at 5.250%, repurchased at
$1,110,162 (Collateralized by US
Treasury Notes due 5/31/1999 at
6.750%, value $1,132,880)
(Cost $1,110,000) $ 1,110,000 $ 1,110,000
-------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $125,899,343)
(Cost for Income Tax Purposes
$126,092,658) $ 150,068,453
=============
*Security is non-income producing.
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Assets and Liabilities
August 31, 1995
<TABLE>
<CAPTION>
Intermediate
Government Total Return Value Equity
Bond Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Investment Securities:
At Cost~ $35,301,194 $ 483,785,044 $ 125,899,343
=========== ============= =============
At Value~ $36,570,188 $ 560,701,606 $ 150,068,453
Cash 1,741 83,915 3,436
Receivables:
Investment Securities Sold 0 0 2,422,932
Fund Shares Sold 446,625 1,059,923 229,888
Dividends and Interest 325,445 2,197,868 497,341
Prepaid Expenses and Other Assets 12,662 51,061 25,648
----------- ------------- -------------
TOTAL ASSETS 37,356,661 564,094,373 153,247,698
----------- ------------- -------------
LIABILITIES
Payables:
Distributions to Shareholders 5,404 100,481 35,071
Fund Shares Repurchased 7,264 504,085 30,961
Accrued Expenses and Other Payables 4,649 21,317 10,777
----------- ------------- -------------
TOTAL LIABILITIES 17,317 625,883 76,809
----------- ------------- -------------
Net Assets at Value $37,339,344 $ 563,468,490 $ 153,170,889
=========== ============= =============
NET ASSETS
Paid-in Capital $37,002,946 $ 484,925,751 $ 126,093,101
Accumulated Undistributed Net
Investment Income (Loss) 0 (6,527) 12,616
Accumulated Undistributed Net
Realized Gain (Loss) on
Investment Securities (932,596) 1,632,704 2,896,062
Net Appreciation of Investment Securities 1,268,994 76,916,562 24,169,110
----------- ------------- -------------
Net Assets at Value $37,339,344 $ 563,468,490 $ 153,170,889
=========== ============= =============
Shares Outstanding* 2,953,843 26,892,589 7,842,096
Net Asset Value, Offering and Redemption
Price per Share $12.64 $20.95 $19.53
<FN>
~ Investment securities at cost and value at August 31, 1995 include repurchase
agreements of $1,580,000, $1,245,000 and $1,110,000 for Intermediate
Government Bond, Total Return and Value Equity Funds, respectively.
* The Trust has one class of shares, which may be divided into different
series, each representing an interest in a separate Fund. At August 31, 1995,
there was an unlimited number of authorized Fund shares.
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Operations
Year Ended August 31, 1995
<TABLE>
<CAPTION>
Intermediate
Government Total Return Value Equity
Bond Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 0 $ 7,016,050 $ 3,599,838
Interest 2,585,959 11,704,821 573,461
Foreign Taxes Withheld 0 (164,839) (49,319)
----------- ----------- ------------
TOTAL INCOME 2,585,959 18,556,032 4,123,980
----------- ----------- ------------
EXPENSES
Investment Advisory Fees 214,128 2,824,847 974,578
Transfer Agent Fees 130,781 477,373 168,354
Administrative Fees 15,353 66,616 29,713
Custodian Fees and Expenses 6,222 27,232 10,178
Professional Fees and Expenses 14,510 36,669 22,429
Registration Fees and Expenses 24,834 58,964 38,357
Reports to Shareholders 10,544 39,239 12,989
Trustees' Fees and Expenses 9,116 28,146 14,940
Other Expenses 4,232 13,086 5,684
----------- ----------- ------------
TOTAL EXPENSES 429,720 3,572,172 1,277,222
----------- ----------- ------------
NET INVESTMENT INCOME 2,156,239 14,983,860 2,846,758
----------- ----------- ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on
Investment Securities (915,758) 2,916,413 5,886,502
Change in Net Appreciation of
Investment Securities 2,538,939 46,627,023 14,593,965
----------- ----------- ------------
NET GAIN ON INVESTMENT SECURITIES 1,623,181 49,543,436 20,480,467
----------- ----------- ------------
Net Increase in Net Assets from Operations $ 3,779,420 $64,527,296 $ 23,327,225
=========== =========== ============
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Changes in Net Assets
Year Ended August 31
<TABLE>
<CAPTION>
Intermediate Government
Bond Fund Total Return Fund
----------- ------------ ------------ ------------
1995 1994 1995 1994
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income $ 2,156,239 $ 2,058,207 $ 14,983,860 $ 8,343,044
Net Realized Gain (Loss) on
Investment Securities (915,758) 620,157 2,916,413 2,193,169
Change in Net Appreciation (Depreciation)
of Investment Securities 2,538,939 (2,854,227) 46,627,023 7,456,021
----------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 3,779,420 (175,863) 64,527,296 17,992,234
----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (2,147,391) (2,052,118) (14,983,860) (8,343,044)
In Excess of Net Investment Income 0 (6,095) (20,316) (1,271,098)
Net Realized Gain on Investment Securities 0 (1,054,005) (787,737) (2,193,169)
In Excess of Net Realized Gain on
Investment Securities 0 0 0 (1,987,157)
----------- ------------ ----------- -----------
TOTAL DISTRIBUTIONS (2,147,391) (3,112,218) (15,791,913) (13,794,468)
----------- ------------ ----------- -----------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 27,363,047 14,705,799 326,800,315 132,448,414
Reinvestment of Distributions 2,080,851 2,969,516 15,396,556 13,327,958
----------- ------------ ----------- -----------
29,443,898 17,675,315 342,196,871 145,776,372
Amounts Paid for Repurchases of Shares (25,597,128) (21,910,324) (120,228,352) (77,433,579)
------------ ------------ ------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 3,846,770 (4,235,009) 221,968,519 68,342,793
------------ ------------ ----------- -----------
Total Increase (Decrease) in Net Assets 5,478,799 (7,523,090) 270,703,902 72,540,559
NET ASSETS
Beginning of Period 31,860,545 39,383,635 292,764,588 220,224,029
End of Period $ 37,339,344 $ 31,860,545 $ 563,468,490 $292,764,588
============ ============ ============= ============
Accumulated Undistributed Net Investment
Loss Included in Net Assets at
End of Period $ 0 $ 0 $ (6,527) $ 0
------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold $ 2,246,918 $ 1,154,467 $ 16,593,356 $ 7,264,152
Shares Issued from Reinvestment of
Distributions 170,015 235,197 786,039 728,959
----------- ------------ ----------- -----------
2,416,933 1,389,664 17,379,395 7,993,111
Shares Repurchased (2,082,218) (1,743,095) (6,275,356) (4,260,757)
----------- ------------ ----------- -----------
Net Increase (Decrease) in Fund Shares $ 334,715 $ (353,431) $ 11,104,039 $ 3,732,354
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Changes in Net Assets (Continued)
Year Ended August 31
Value Equity Fund
---------------------------
1995 1994
OPERATIONS
Net Investment Income $2,846,758 $ 1,802,411
Net Realized Gain on Investment Securities 5,886,502 5,051,741
Change in Net Appreciation of Investment
Securities 14,593,965 2,024,162
---------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS 23,327,225 8,878,314
---------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (2,834,142) (1,802,411)
In Excess of Net Investment Income 0 (239,803)
Net Realized Gain on Investment Securities (7,116,877) (5,176,510)
---------------------------
TOTAL DISTRIBUTIONS (9,951,019) (7,218,724)
---------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 98,871,021 106,482,312
Reinvestment of Distributions 9,797,324 7,097,380
---------------------------
108,668,345 113,579,692
Amounts Paid for Repurchases of Shares (80,723,493) (85,303,387)
---------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 27,944,852 28,276,305
---------------------------
Total Increase in Net Assets 41,321,058 29,935,895
NET ASSETS
Beginning of Period 111,849,831 81,913,936
---------------------------
End of Period $153,170,889 $ 111,849,831
===========================
Accumulated Undistributed Net Investment
Income Included in Net Assets at
End of Period $12,616 $ 0
FUND SHARE TRANSACTIONS
Shares Sold 5,496,357 6,026,761
Shares Issued from Reinvestment of
Distributions 573,039 405,056
6,069,396 6,431,817
Shares Repurchased (4,400,997) (4,861,383)
Net Increase in Fund Shares 1,668,399 1,570,434
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Notes to Financial Statements
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Value Trust
(the "Trust") is organized under the laws of the Commonwealth of Massachusetts
and consists of three separate funds: Intermediate Government Bond Fund, Total
Return Fund and Value Equity Fund. The Trust is registered under the Investment
Company Act of 1940, (the "Act") as a diversified, open-end management
investment company. 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 dealers making a market for such securities.
Foreign securities are valued at the closing price on the principal stock
exchange on which they are traded. In the event that closing prices are not
available for foreign securities, prices will be obtained from the principal
stock exchange at or prior to the close of the New York Stock Exchange. Foreign
currency exchange rates are determined daily prior to the close of the New York
Stock Exchange.
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 at the time of purchase, or 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. Certain dividends from foreign securities will be
recorded as soon as the Trust is informed of 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.
The Trust may have elements of risk due to concentrated investments in
foreign issuers located in a specific country. Such concentrations may subject
the Trust to additional risks resulting from future political or economic
conditions and/or possible imposition of adverse foreign governmental laws or
currency exchange restrictions.
D. FEDERAL AND STATE TAXES -- The Trust has complied and continues to
comply with the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, has made or intends to make sufficient
distributions of net investment income and net realized capital gains, if any,
to relieve it from all federal and state income taxes and federal excise taxes.
At August 31, 1995, Intermediate Government Bond Fund had $411,995 in net
capital loss carryovers which expire in the year 2003.
<PAGE>
Intermediate Government Bond Fund incurred and elected to defer
post-October 31 net capital losses of $524,072 to the year ended August 31,
1996. To the extent future capital gains are offset by capital loss carryovers
and deferred post-October 31 losses, such 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. Of the ordinary income distributions
declared for the year ended August 31, 1995, 39.09% for Total Return Fund and
63.08% for Value Equity Fund qualified for the dividends received deduction
available to the Trust's corporate shareholders.
Investment income received from foreign sources may be subject to foreign
withholding taxes. Dividend and interest income is shown gross of foreign
withholding taxes in the accompanying financial statements.
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 Intermediate Government Bond Fund's
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, foreign currency transactions,
nontaxable dividends, net operating losses and expiring capital loss
carryforwards. During the year ended August 31, 1995, Intermediate Government
Bond Fund reclassified $8,848 from accumulated undistributed net investment
income to accumulated undistributed net realized gain on investment securities.
During the year ended August 31, 1995, Total Return Fund reclassified $13,789
from paid-in capital to accumulated undistriuted net investment income and
$12,587 from paid-in capital to accumulated undistributed net realized gain on
investment securities. Net investment income and net assets were not affected.
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. s compensation for its
services to the Trust, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. he 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
- ---------------------------------------------------------------------------
Intermediate Government Bond Fund 0.60% 0.50% 0.40%
Total Return Fund 0.75% 0.65% 0.50%
Value Equity Fund 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. he fee is accrued daily and paid monthly.
IFG receives a transfer agent fee at an annual rate of $14.00 for Total
Return and Value Equity Funds, and $20.00 for Intermediate Government Bond Fund
per shareholder account, or per participant in an omnibus account. IFG may pay
<PAGE>
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 year ended August 31, 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 Fund $148,343,238 $ 24,774,702
Value Equity Fund 71,334,113 41,209,341
For the year ended August 31, 1995, the aggregate cost of purchases and
proceeds from sales of U.S. Government securities were as follows:
Fund Purchases Sales
- --------------------------------------------------------------------------------
Intermediate Government Bond Fund $ 34,012,018 $31,192,247
Total Return Fund 135,272,188 79,604,469
NOTE 4 -- APPRECIATION AND DEPRECIATION. At August 31, 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 by Fund were as follows:
Gross Gross Net
Fund Appreciation Depreciation Appreciation
- --------------------------------------------------------------------------------
Intermediate Government Bond Fund $ 1,404,427 $ 139,956 $ 1,264,471
Total Return Fund 80,479,718 3,577,816 76,901,902
Value Equity Fund 26,505,004 2,529,209 23,975,795
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 year ended August 31, 1995, included in Trustees'
Fees and Expenses in the Statement of Operations, and unfunded accrued pension
costs and pension liability included in prepaid expenses and accrued expenses,
respectively, in the Statement of Assets and Liabilities were as follows:
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- --------------------------------------------------------------------------------
Intermediate Government Bond Fund $ 703 $ 1,129 $ 1,832
Total Return Fund 6,527 10,474 17,001
Value Equity Fund 2,674 4,290 6,964
<PAGE>
INVESCO Value Trust
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Period
Ended
Year Ended August 31 August 31 Year Ended December 31
---------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
(Note 1)
Intermediate Government Bond Fund
<S> <C> <C> <C> <C> <C> <C>
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 0.73 0.70 0.48 0.90 0.89 1.00
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.48 (0.75) 0.57 (0.16) 0.77 0.05
-------- -------- -------- -------- -------- --------
Total from Investment Operations 1.21 (0.05) 1.05 0.74 1.66 1.05
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ 0.73 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 0.73 1.04 0.48 0.95 0.90 0.99
-------- -------- -------- -------- -------- --------
Net Asset Value -- End of Period $ 12.64 $ 12.16 $ 13.25 $ 12.68 $ 12.89 $ 12.13
======== ======== ======== ======== ======== ========
TOTAL RETURN 10.36% (0.37%) 8.38%* 6.03% 14.16% 9.08%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 37,339 $ 31,861 $ 39,384 $ 29,649 $ 24,385 $ 18,380
Ratio of Expenses to Average
Net Assets# 1.20% 1.07% 0.96%~ 0.97% 0.93% 0.85%
Ratio of Net Investment Income
to Average Net Assets# 6.04% 5.58% 5.48%~ 6.38% 7.28% 8.16%
Portfolio Turnover Rate 92% 49% 34%* 93% 51% 31%
<FN>
+ Distributions in excess of net investment income for the year ended August
31, 1994, aggregated less than $0.01on 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 and ratio
of net investment income to average net assets would have been 8.05%.
~ Annualized
</FN>
</TABLE>
<PAGE>
INVESCO Value Trust
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Period
Ended
Year Ended August 31 August 31 Year Ended December 31
-------------------- --------- ----------------------------------
1995 1994 1993 1992 1991 1990
(Note 1)
Total Return Fund
<S> <C> <C> <C> <C> <C> <C>
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 0.72 0.69 0.40 0.66 0.71 0.74
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.46 0.60 1.09 0.93 2.78 (0.80)
--------- --------- --------- --------- --------- ---------
Total from Investment Operations 3.18 1.29 1.49 1.59 3.49 (0.06)
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.72 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 0.77 1.02 0.40 0.84 1.27 0.81
--------- --------- --------- --------- --------- ---------
Net Asset Value -- End of Period $ 20.95 $ 18.54 $ 18.27 $ 17.18 $ 16.43 $ 14.21
========= ========= ========= ========= ========= =========
TOTAL RETURN 17.54% 7.22% 8.72%* 9.84% 24.96% (0.35%)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 563,468 $ 292,765 $ 220,224 $ 137,196 $ 82,219 $ 54,874
Ratio of Expenses to Average
Net Assets 0.95% 0.96% 0.93%~ 0.88% 0.92% 1.00%
Ratio of Net Investment Income
to Average Net Assets 3.97% 3.31% 3.51%~ 4.06% 4.62% 5.22%
Portfolio Turnover Rate 30% 12% 19%* 13% 49% 24%
<FN>
+ Distributions in excess of net investment income for the year ended August
31, 1995, 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.
~ Annualized
</FN>
</TABLE>
<PAGE>
INVESCO Value Trust
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
<TABLE>
<CAPTION>
Period
Ended
Year Ended August 31 August 31 Year Ended December 31
-------------------- --------- --------------------------------
1995 1994 1993 1992 1991 1990
(Note 1)
Value Equity Fund
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 18.12 $ 17.79 $ 16.91 $ 16.57 $ 13.88 $ 15.30
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.39 0.36 0.24 0.36 0.40 0.44
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.58 1.20 0.88 0.45 4.54 (1.33)
--------- --------- --------- --------- --------- ---------
Total from Investment Operations 2.97 1.56 1.12 0.81 4.94 (0.89)
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.39 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 1.56 1.23 0.24 0.47 2.25 0.53
--------- --------- --------- --------- --------- ---------
Net Asset Value -- End of Period $ 19.53 $ 18.12 $ 17.79 $ 16.91 $ 16.57 $ 13.88
========= ========= ========= ========= ========= =========
TOTAL RETURN 17.84% 9.09% 6.65%* 4.98% 35.84% (5.80%)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 153,171 $ 111,850 $ 81,914 $ 78,609 $ 39,741 $ 29,825
Ratio of Expenses to Average
Net Assets# 0.97% 1.01% 1.00%~ 0.91% 0.98% 1.00%
Ratio of Net Investment Income
to Average Net Assets# 2.17% 1.80% 2.07%~ 2.19% 2.39% 3.00%
Portfolio Turnover Rate 34% 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>
<PAGE>
Report of Independent Accountants
To the Trustees and Shareholders of
INVESCO Value Trust
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investment securities, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of INVESCO Intermediate Government
Bond Fund, INVESCO Total Return Fund and INVESCO Value Equity Fund (constituting
the INVESCO Value Trust, hereafter referred to as the "Fund") at August 31,
1995, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with 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 disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at August 31, 1995 by
correspondence with the custodian and the application of alternative auditing
procedures for unsettled security transactions, provide a reasonable basis for
the opinion expressed above.
PRICE WATERHOUSE LLP
Denver, Colorado
October 2, 1995
<PAGE>
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(r), 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.
