SEMIANNUAL REPORT
February 29, 1996
INVESCO
VALUE
TRUST
Value Equity
Total Return
Intermediate Government Bond
INVESCO FUNDS
<PAGE>
Economic Overview March 1996
1995 was a banner year for U.S. investors. The S&P 500 achieved a total
return of 37.44%; only the fourth time in fifteen years the broad market
returned over 25%. Fixed-income markets followed suit, with the Lehman
Government/Corporate Bond Index gaining 19.24%.(1) In 1996, however, a repeat
performance appears unlikely.
The strong 1995 results were influenced by a number of positive economic
factors. Inflation was low at a mere 2.8%, unemployment was down, and growth in
Gross Domestic Product slowed to apparently sustainable levels. In addition, the
Federal Reserve Board appeared to take a pro-growth stand, easing rates by .50%
during the second half of 1995.
So far in 1996, volatility in the financial markets has increased
significantly versus last year's historically low levels. While year-to-date the
S&P 500 and the Dow Jones Industrial Average have advanced, these positive
returns have not come without some pain.(1) As an example of just how volatile
the markets have become, the Dow has experienced moves of 50 points or more 24
times during the first two months of 1996 compared to only 29 times for all of
1995.
While the general stock market is up, bonds have been another story. In
January, the Federal Reserve cut the Federal Funds rate by another 0.25%,
providing the impetus for marginally positive returns that month. However,
February's unexpectedly strong employment report and the unwinding of arbitrage
positions produced negative returns as the 30-year Treasury bond yield increased
to the 6.5% level from 6.0% in January. As a result, the Lehman
Government/Corporate Bond Index declined 1.51% for the first two months of the
year.
For the remainder of the year, the markets may continue to experience some
short-term gyrations due to the ongoing budget stalemate, the Presidential
election, and conflicting signals regarding the direction of the economy.
Nevertheless, the markets have experienced such environments before and
generally process information quickly and efficiently. We anticipate a
slow-growth environment for both the economy and securities markets during the
remainder of 1996.
R. Dalton Sim
Chairman and President
INVESCO Trust Company
<PAGE>
INVESCO Value Trust
The line graphs below illustrate the value of a $10,000 investment in each
fund, plus reinvested dividends and capital gains, for the indicated periods
ended 2/29/96.(2) 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.
Strategic Overview
The Fund's subadvisor, INVESCO Capital Management, applies a unique,
value-oriented philosophy:
Equities. Unlike many fund managers, we do not evaluate sectors based on a
forecast of the economy. Instead, we take a "bottom-up" approach which involves
identifying those individual securities which seem most likely to outperform
their peers.
When evaluating a stock, we focus on its price in relation to its
historical earnings power. If the current price is low, and we believe the
company has the resources to continue its historical growth rate, the stock is
considered attractive -- regardless of its sector. General characteristics of
the resulting portfolio usually include a low price/earnings ratio and a
higher-than-average yield.
Fixed-Income. When managing bond portfolios, we rely on a value
methodology based on inflation-adjusted yields. High inflation-adjusted yields
relative to the historical average indicate a low risk bond market environment
which triggers a lengthening of the portfolio's maturity. Conversely, when
inflation-adjusted yields drop below historical averages, a short maturity
profile is called for as the environment is considered to be high risk. In these
situations, yields are at extremely low levels relative to underlying inflation.
As yields drift into a more normal range, we evaluate the current interest rate
climate to determine whether any short-term conditions may influence the extent
to which we lengthen or shorten the portfolio's maturity in the interim.
Combined with the maturity decision is an evaluation of bond market
sectors. The relative attractiveness of corporates and mortgages is monitored
within an historical context to determine if the yields offered by these
securities are attractive versus U.S. Treasuries. This process is very similar
to the maturity discipline as significant exposures to these sectors are only
justified when sufficiently high yields are offered.
<PAGE>
Value Equity Fund
For its three- and five-year risk-adjusted total returns through 2/29/96,
INVESCO Value Equity Fund was awarded four stars by the independent mutual fund
service, Morningstar.(3) The peer group for this fund consists of 505 funds in
the Growth & Income category. The fund achieved a total return of 14.05% for the
six-month period ended 2/29/96,(2) compared to a total return of 15.26% for the
S&P 500 for the same period.(1)
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO 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 2/29/96.
Strategic Overview
In managing Value Equity Fund, we employ a methodology that combines value
analysis, high quality companies, and broad diversification.
Our value analysis includes isolating 250 stocks which appear poised to
provide higher-than-average returns. We determine this by using the equity
strategy described earlier. These 250 stocks are further narrowed by evaluating
each company's current status and analyzing its ability to extend its historical
record. Those high quality names which currently meet this criteria, such as
McDonald's Corp and Hewlett-Packard Co, are then chosen for the portfolio.
Value Equity Fund
Average Annualized Total Return
as of 2/29/96(2)
1 year 28.35%
-----------------------------------
5 years 14.47%
-----------------------------------
Since inception (5/86) 12.64%
-----------------------------------
To reduce risk, we maintain a broadly diversified portfolio. Sector
weightings are a residual of our stock selection process rather than being
determined through a top-down analysis based on an economic forecast.
Based on this methodology as of 2/29/96, many of the best values can be
found in the consumer cyclical and financial sectors. We are underweighted in
the energy, basic materials, and public utility sectors.
<PAGE>
Fund Management
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 Terry 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
Based on risk-adjusted performance, independent mutual fund analyst
Morningstar awarded INVESCO Intermediate Government Bond Fund four stars among
399 Government General Funds measured for the three- and five-year periods ended
2/29/96.(3) The fund had a total return of 3.55% for the six-month period ended
2/29/96,(2) compared to a total return of 3.8% for the Lehman Intermediate
Government Bond Index for the same period.(1)
Strategic Overview
Our "value" methodology means that bonds are also selected using the
long-term strategy described earlier, that seeks to project anticipated market
reactions based on past performance. In the short-term, our value methodology
may cause us to underperform, as we change direction ahead of the market cycle.
Employing this same methodology over the longer-term, however, we seek to
minimize loss during bear markets and participate strongly in bull market
returns for bonds.
As of 2/29/96, the fund had an average duration of 4.4 years (excluding
cash and equivalents), compared with the Lehman Intermediate Government Bond
Index duration of 3.2 years. This current duration strategy is driven by our
evaluation that longer maturity bonds continue to provide superior value when
compared to inflation-adjusted historical returns.
Intermediate Government Bond Fund
Average Annualized Total Return
as of 2/29/96(2)
1 year 10.94%
-----------------------------------
5 years 8.05%
-----------------------------------
Since inception (5/86) 7.28%
-----------------------------------
Additionally, we have focused the portfolio almost exclusively on U.S.
Treasuries. This allocation is based on our recognition that, while investment
grade corporate bonds' and mortgage-backed securities' current returns are
somewhat higher than Treasury certificates, they are not high enough to justify
the somewhat greater risk they entail.
<PAGE>
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Intermediate Government Bond Fund to the value of a
$10,000 investment in the Lehman Intermediate Government Bond Index,
assuming in each case reinvestment of all dividends and capital gain
distributions, for the period from inception (5/86) through 2/29/96.
Our historical analysis tells us that, while the bond market has been
volatile in recent months, there is still cause for optimism over the long-term.
We have maintained an above-average portfolio duration in expectation of
capitalizing on continued bond market strength in the wake of gradual Fed
easing. However, we are carefully monitoring market activity, and are prepared
to act should our models indicate that a change in the long-term trend is
imminent.
Fund Management
Intermediate Government Bond Fund is managed by James O. Baker. Before
joining INVESCO, Mr. Baker was associated with Willis Investment Counsel, Morgan
Keegan, and Drexel Burnham Lambert. He 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 its risk-adjusted performance over the last three- and five-year
periods ended 2/29/96, INVESCO Total Return Fund was awarded four stars by the
independent mutual fund service, Morningstar; the peer group for this fund
consists of 168 funds in the Asset Allocation category.(3)
The fund achieved a total return of 10.48% for the six-month period ended
2/29/96.(2) Since the fund holds both stocks and bonds, its performance was
below the S&P 500's 15.26% return but well above the 4.13% return for the Lehman
Government/Corporate Bond Index.(1)
Strategic Overview
Total Return Fund seeks to add value in three ways: asset allocation,
stock selection, and bond strategy. The fund's objective is to achieve a high
total return on investment through capital appreciation and current income by
investing in a combination of stocks and bonds. The mix of stocks and bonds is
determined by evaluating the relationship of the expected returns from these two
asset classes.
<PAGE>
Over the long-term, stocks generally have provided annual returns 3%
greater than bonds. (Of course, past performance is not a guarantee of future
results.) When the return premium offered by stocks is 3%, the fund's asset
allocation would be 60% stocks and 40% bonds. If stocks are priced to provide
returns in excess of 3% over bonds, then stocks usually represent more than 60%
of the fund. Alternatively, if stocks offer less than 3% versus bonds, stocks
would be less than 60% of the holdings. Total Return Fund generally holds at
least 30% in stocks and 30% in bonds, with the remaining 40% allocated according
to market conditions.
The fund has been weighted more heavily in equities than bonds for more
than a year. This focus has proven beneficial to performance, since stocks have
clearly outperformed bonds. Consistent with our overall philosophy, stock
selection is based upon a "bottom-up, value" process that evaluates a company's
historical profitability relative to its current price. The fund's
best-performing stock sectors in recent months were consumer staples, capital
goods, and energy.
Total Return Fund
Average Annualized Total Return
as of 2/29/96(2)
1 year 25.41%
-----------------------------------
5 years 13.62%
-----------------------------------
Since inception (9/87) 12.87%
-----------------------------------
At 2/29/96, the fund's fixed-income segment was primarily invested in U.S.
Treasuries and investment-grade corporate bonds. Our long maturity profile
enhanced performance through 1995. However, volatile fixed-income markets during
January and February hampered performance.
Like the Value Equity and Intermediate Government Bond Funds, we do not
react to short-term market activity in managing Total Return Fund. We believe
that, over the long-term, our value approach to blending equity and fixed-income
securities may provide conservative investors with potential appreciation
combined with reduced volatility.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Total Return Fund to the value of a $10,000
investment in the S&P 500 Index and Lehman Intermediate Government Bond
Index, assuming in each case reinvestment of all dividends and capital
gain distributions, for the period from inception (9/87) through 2/29/96.
<PAGE>
Fund Management
Total Return Fund is managed by Edward C. Mitchell, the President of
INVESCO Capital Management, Inc. He earned his MBA at the University of Colorado
and a BA from the University of Virginia. Mr. Mitchell began his investment
career in 1969 and is a Chartered Financial Analyst. He is assisted by David S.
Griffin, who began his investment career in 1982. Mr. Griffin is a Chartered
Financial Analyst, holds an MBA from the College of William and Mary, and a BA
from Ohio Wesleyan University.
(1) The S&P 500 and Dow Jones Industrial Average are unmanaged indexes
considered representative of the performance of the broad U.S. stock market. The
Lehman Government/Corporate Index is an unmanaged index representative of the
broad fixed-income market. The Lehman Intermediate Government Bond Index is an
unmanaged index representative of the intermediate term government bond market.
(2) Total return assumes reinvestment of dividends and capital gain
distributions for the periods indicated. Investment return and principal value
will fluctuate so that, when redeemed, an investor's shares may be worth more or
less than when purchased. Of course, past performance is not a guarantee of
future results.
(3) Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 2/29/96, and are subject to change each month. These ratings are
calculated from the fund's 3-, 5-, and 10-year average annual returns (based on
available track records) in excess of 90-day Treasury bill returns. The top 10%
of funds in an investment category receive 5 stars; the next 22.5% receive 4
stars.
<PAGE>
INVESCO Value Trust
Ten Largest Common Stock Holdings
February 29, 1996
Description Value
- ------------------------------------------------------------------------------
TOTAL RETURN Fund
International Business Machines $12,262,500
Hewlett-Packard Co 11,082,500
Philip Morris 10,890,000
First Chicago NBD 10,843,750
Lilly (Eli) & Co 10,478,600
Dow Chemical 10,432,500
Browning-Ferris Industries 10,368,750
Morgan Stanley Group 10,312,500
Lockheed Martin 10,293,750
Ford Motor 10,156,250
VALUE EQUITY Fund
Philip Morris $4,950,000
PepsiCo Inc 4,098,600
Columbia/HCA Healthcare 3,958,425
Lilly (Eli) & Co 3,872,000
Hewlett-Packard Co 3,828,500
Kimberly-Clark Corp 3,818,750
Dun & Bradstreet 3,795,000
Dow Chemical 3,531,000
Pitney-Bowes Inc 3,459,525
Illinois Central Series A 3,352,500
Composition of holdings is subject to change.
<PAGE>
INVESCO Value Trust
Statement of Investment Securities
February 29, 1996
UNAUDITED
Shares or
Principal
Description Amount Value
- ------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT BOND Fund
FIXED INCOME SECURITIES 88.19%
US Government Obligations 82.06%
US Treasury Bonds
9.375%, 2/15/2006 $3,000,000 $3,722,808
8.125%, 8/15/2019 3,400,000 3,996,057
US Treasury Notes
8.500%, 7/15/1997 4,000,000 4,165,000
8.500%, 2/15/2000 2,800,000 3,073,000
7.500%, 11/15/2001 1,500,000 1,614,842
6.375%, 7/15/1999 4,500,000 4,601,250
6.375%, 8/15/2002 3,000,000 3,072,183
5.125%, 3/31/1998 5,000,000 4,968,750
US Treasury Security Stripped
Interest Payment, Generic Tint
Payment, Zero Coupon, 11/15/2004 4,000,000 2,338,836
------------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $29,939,261) 31,552,726
------------
US Government Agency Obligations 6.13%
Government National Mortgage
Association I, Modified
Pass-Through Certificates
7.000%, 10/15/2008 721,879 731,970
6.500%, 10/15/2008 803,556 800,204
6.000%, 11/15/2008 844,355 825,795
TOTAL US GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,434,964) 2,357,96
------------
TOTAL FIXED INCOME SECURITIES
(Cost $32,374,225) 33,910,695
------------
SHORT-TERM INVESTMENTS 11.81%
US Government Obligations 8.49%
US Treasury Notes
7.375%, 5/15/1996
(Cost $3,308,794) 3,250,000 3,265,230
------------
<PAGE>
Repurchase Agreements 3.32%
Repurchase Agreement with
State Street Bank & Trust Co
dated 2/29/1996 due 3/1/1996
at 4.750%, repurchased at
$1,275,168 (Collateralized by
US Treasury Notes due 5/15/1998
at 6.125%, value $1,304,577)
(Cost $1,275,000) 1,275,000 1,275,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $4,583,794) 4,540,230
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $36,958,019) (Cost for Income
Tax Purposes $36,979,769) $38,450,925
============
TOTAL RETURN Fund
COMMON STOCKS 64.47%
AEROSPACE & DEFENSE 2.11%
Boeing Co 100,000 8,112,500
Lockheed Martin 135,000 10,293,750
------------
18,406,250
------------
AGRICULTURAL 0.88%
Archer-Daniels-Midland Co 400,000 7,700,000
------------
AUTOMOBILE RELATED 1.16%
Ford Motor 325,000 10,156,250
------------
BANKING 5.00%
First Chicago NBD 250,000 10,843,750
First of America Bank 210,000 9,187,500
First Union 150,000 9,075,000
NationsBank Corp 100,000 7,375,000
Wachovia Corp 154,000 7,161,000
------------
43,642,250
------------
CHEMICALS 2.02%
Dow Chemical 130,000 10,432,500
Imperial Chemical Industries PLC ADR 130,000 7,231,250
------------
17,663,750
------------
<PAGE>
COMPUTER RELATED 4.77%
Compaq Computer* 175,000 8,859,375
Computer Associates International 136,500 9,384,375
Hewlett-Packard Co 110,000 11,082,500
International Business Machines 100,000 12,262,500
------------
41,588,750
------------
DIVERSIFIED COMPANIES 5.71%
du Pont (E I) de Nemours 110,000 8,415,000
General Electric 127,600 9,633,800
Hanson PLC Sponsored ADR 500,000 7,375,000
Minnesota Mining & Manufacturing 130,000 8,466,250
National Service Industries 200,000 6,975,000
Norsk Hydro A/S Sponsored ADR 100,000 4,262,500
Textron Inc 60,000 4,725,000
------------
49,852,550
------------
FINANCE RELATED 1.86%
Deluxe Corp 250,000 8,031,250
Dun & Bradstreet 130,000 8,222,500
------------
16,253,750
------------
FOOD PRODUCTS & BEVERAGES 2.92%
Anheuser-Busch Cos 102,700 6,919,412
Heinz (H J) Co 250,000 8,500,000
Unilever NV New York Shrs 75,000 10,087,500
------------
25,506,912
------------
FOOD STORES - WHOLESALE 0.48%
SuperValu Inc 130,000 4,192,500
------------
HEALTH CARE FACILITIES 0.74%
Columbia/HCA Healthcare 117,850 6,452,288
------------
INSURANCE 4.20%
American General 225,000 8,184,375
Marsh & McLennan 100,000 9,712,500
Ohio Casualty 236,100 8,794,725
SAFECO Corp 275,000 9,968,750
------------
36,660,350
------------
INVESTMENT BROKERS 1.18%
Morgan Stanley Group 220,000 10,312,500
------------
MACHINERY 0.77%
Snap-On Inc 150,000 6,712,500
------------
<PAGE>
MEDICAL RELATED - DRUGS 5.85%
Abbott Laboratories 150,000 6,262,500
American Home Products 100,000 9,850,000
Bristol-Myers Squibb 110,000 9,363,750
Lilly (Eli) & Co 173,200 10,478,600
Merck & Co 100,000 6,625,000
Schering-Plough Corp 150,000 8,418,750
------------
50,998,600
------------
METALS 1.05%
Phelps Dodge 150,000 9,168,750
------------
OIL & GAS RELATED 3.10%
Amoco Corp 125,000 8,687,500
Repsol SA Sponsored ADR 260,000 9,425,000
Royal Dutch Petroleum 5 Gldr Shrs 65,000 8,953,750
------------
27,066,250
------------
PAPER & PAPER PRODUCTS 1.91%
Kimberly-Clark Corp 100,000 7,637,500
Westvaco Corp 310,000 8,990,000
------------
16,627,500
------------
POLLUTION CONTROL RELATED 1.19%
Browning-Ferris Industries 350,000 10,368,750
------------
PRINTING & PUBLISHING 1.00%
Gannett Co 127,600 8,676,800
------------
RETAIL 4.84%
K mart Corp 500,000 3,500,000
McDonald's Corp 103,200 5,160,000
Melville Corp 200,000 6,375,000
Penney (J C) Co 185,000 8,787,500
Rite Aid 175,000 5,512,500
Sherwin-Williams Co 150,000 6,356,250
Tandy Corp 150,000 6,562,500
------------
42,253,750
------------
TEXTILES & APPAREL MANUFACTURERS 2.23%
Liz Claiborne 200,000 6,275,000
Shaw Industries 400,000 4,550,000
VF Corp 160,000 8,600,000
------------
19,425,000
------------
<PAGE>
TOBACCO 2.29%
American Brands 200,000 9,075,000
Philip Morris 110,000 10,890,000
------------
19,965,000
------------
TRANSPORTATION 1.83%
Caliber System 157,400 6,650,150
Illinois Central Series A 250,000 9,312,500
------------
15,962,650
------------
UTILITIES 5.38%
Edison International 500,000 8,750,000
NYNEX Corp 160,000 8,240,000
Telefonica de Espana SA Sponsored ADR 200,000 9,825,000
Telefonos de Mexico SA
de CV Sponsored ADR
Representing Ord Series L Shrs 300,000 9,150,000
Texas Utilities 190,000 7,671,250
Unicom Corp 104,000 3,328,000
------------
46,964,250
------------
TOTAL COMMON STOCKS
(Cost $441,315,103) 562,577,900
------------
FIXED INCOME SECURITIES 24.24%
US Government Obligations 22.37%
US Treasury Bond
11.250%, 2/15/2015 450,000 678,375
9.375%, 2/15/2006 17,450,000 21,654,333
9.250%, 2/15/2016 20,000,000 25,887,500
8.125%, 8/15/2019 20,000,000 23,506,220
7.250%, 8/15/2022 20,000,000 21,481,220
6.250%, 8/15/2023 4,750,000 4,522,884
US Treasury Notes
8.750%, 8/15/2000 15,000,000 16,757,790
8.250%, 7/15/1998 8,000,000 8,480,000
8.000%, 8/15/1999 200,000 214,687
8.000%, 5/15/2001 4,100,000 4,499,750
7.875%, 1/15/1998 1,750,000 1,824,375
7.875%, 11/15/1999 7,100,000 7,614,750
6.500%, 8/15/2005 15,000,000 15,351,540
6.375%, 7/15/1999 7,000,000 7,157,500
6.375%, 8/15/2002 15,150,000 15,514,524
5.750%, 8/15/2003 16,500,000 16,237,006
5.625%, 8/31/1997 100,000 100,406
5.625%, 1/31/1998 100,000 100,281
5.500%, 2/28/1999 3,000,000 2,995,308
5.125%, 4/30/1998 150,000 149,062
4.750%, 10/31/1998 300,000 294,000
US Treasury Security Stripped
Interest Payment, Generic Tint
Payment, Zero Coupon 8/15/2003 250,000 159,697
------------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $183,541,596) 195,181,208
------------
<PAGE>
US Government Agency Obligations 0.67%
Federal National Mortgage
Association, Gtd Mortgage
Pass-Through Certificates
7.500%, 8/1/2007 1,958,793 2,003,843
Government National Mortgage
Association I, Modified
Pass-Through Certificates
7.000%, 10/15/2008 1,177,656 1,194,119
7.000%, 12/15/2022 256,092 253,836
6.500%, 10/15/2008 1,205,333 1,200,306
6.000%, 11/15/2008 1,266,533 1,238,693
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $5,976,150) 5,890,797
------------
Corporate Bonds 1.20%
AEROSPACE & DEFENSE 0.17%
Rockwell International, Notes
6.625%, 6/1/2005 1,500,000 1,507,140
------------
AUTOMOBILE RELATED 0.09%
Ford Motor, Notes
7.500%, 11/15/1999 750,000 783,427
------------
BANKING 0.37%
National City Bank, Sub Notes
7.200%, 5/15/2005 2,000,000 2,054,958
NationsBank Corp, Sr Notes
5.375%, 4/15/2000 1,250,000 1,213,950
------------
3,268,908
------------
FINANCE RELATED 0.09%
Beneficial Corp Medium-Term
Notes, 5.350%, 10/8/1998 800,000 788,167
------------
FOOD PRODUCTS & BEVERAGES 0.18%
PepsiCo Inc, Notes
7.750%, 10/1/1998 1,500,000 1,568,438
------------
RETAIL 0.09%
Wal-Mart Stores, Notes
5.500%, 3/1/1998 750,000 746,933
------------
UTILITIES 0.21%
Duke Power, 1st & Ref Mortgage
7.500%, 4/1/1999 1,000,000 1,040,150
Union Electric, 1st Mortgage
6.750%, 10/15/1999 750,000 765,055
------------
1,805,205
------------
TOTAL CORPORATE BONDS
(Cost $10,487,910) 10,468,218
------------
TOTAL FIXED INCOME SECURITIES
(Cost $200,005,656) 211,540,223
------------
<PAGE>
SHORT-TERM INVESTMENTS 11.29%
US Government Obligations 0.85%
US Treasury Notes
8.000%, 1/15/1997 4,000,000 4,091,244
7.375%, 5/15/1996 3,300,000 3,315,464
------------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $7,474,031) 7,406,708
------------
Corporate Bonds 0.33%
FINANCE RELATED 0.16%
Associates Corp of North America,
Notes 4.750%, 8/1/1996 1,200,000 1,196,515
Transamerica Financial, Notes
5.850%, 7/15/1996 150,000 150,150
------------
1,346,665
------------
WASTE MANAGEMENT 0.17%
Waste Management, Notes
7.875%, 8/15/1996 1,500,000 1,515,984
------------
TOTAL CORPORATE BONDS
(Cost $2,889,921) 2,862,649
------------
Commercial Paper 9.37%
FINANCE RELATED 3.54%
Ford Motor Credit
5.190%, 3/18/1996 1,000,000 997,549
Greenwich Funding
5.250%, 3/25/1996 15,000,000 14,947,500
PACCAR Financial
5.180%, 3/11/1996 5,000,000 4,992,806
Xerox Credit 5.180%, 3/19/1996 10,000,000 9,974,100
------------
30,911,955
------------
PRINTING & PUBLISHING 1.14%
Donnelley (R R) & Sons
5.180%, 3/8/1996 10,000,000 9,989,928
------------
UTILITIES 4.69%
GTE North, 5.220%, 3/7/1996 5,000,000 4,995,650
Pacific Gas & Electric
5.170%, 4/5/1996 15,000,000 14,924,604
Southwestern Bell Telephone
5.450%, 3/1/1996 21,000,000 21,000,000
------------
40,920,254
------------
TOTAL COMMERCIAL PAPER
(Cost $81,822,137) 81,822,137
------------
<PAGE>
Repurchase Agreements 0.74%
Repurchase Agreement with State Street
Bank & Trust Co dated 2/29/1996 due
3/1/1996 at 4.750%, repurchased at
$6,430,848 (Collateralized by US
Treasury Notes due 5/15/1998 at 6.125%,
value $6,557,986)
(Cost $6,430,000) 6,430,000 6,430,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $98,616,089) 98,521,494
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $739,936,848)
(Cost for Income Tax Purposes
$739,950,173) $872,639,617
============
VALUE EQUITY Fund
COMMON STOCKS 94.90%
AEROSPACE & DEFENSE 4.04%
Boeing Co 25,000 2,028,125
Lockheed Martin 35,860 2,734,325
Raytheon Co 64,000 3,208,000
------------
7,970,450
------------
AUTOMOBILE RELATED 2.77%
Cooper Tire & Rubber 121,800 3,090,675
Ford Motor 76,000 2,375,000
------------
5,465,675
------------
BANKING 5.09%
Boatmen's Bancshares 80,000 3,140,000
First Chicago NBD 60,000 2,602,500
First Union 30,000 1,815,000
Wachovia Corp 53,700 2,497,050
------------
10,054,550
------------
CHEMICALS 2.42%
Dow Chemical 44,000 3,531,000
Nalco Chemical 39,000 1,238,250
------------
4,769,250
------------
COMPUTER RELATED 6.91%
Automatic Data Processing 40,400 1,565,500
Compaq Computer* 56,000 2,835,000
Computer Associates International 46,500 3,196,875
Hewlett-Packard Co 38,000 3,828,500
International Business Machines 18,000 2,207,250
------------
13,633,125
------------
<PAGE>
DIVERSIFIED COMPANIES 5.68%
General Electric 42,100 3,178,550
Hanson PLC Sponsored ADR 188,300 2,777,425
Minnesota Mining & Manufacturing 30,000 1,953,750
Textron Inc 42,000 3,307,500
------------
11,217,225
------------
ELECTRICAL EQUIPMENT 1.29%
Emerson Electric 32,700 2,546,512
------------
FINANCE RELATED 1.92%
Dun & Bradstreet 60,000 3,795,000
------------
FOOD PRODUCTS & BEVERAGES 4.67%
Anheuser-Busch Cos 23,000 1,549,625
Heinz (H J) Co 52,500 1,785,000
PepsiCo Inc 64,800 4,098,600
Tyson Foods Class A 79,200 1,782,000
------------
9,215,225
------------
FOOD STORES - WHOLESALE 1.07%
Fleming Cos 105,500 2,110,000
------------
HEALTH CARE FACILITIES 2.98%
Columbia/HCA Healthcare 72,300 3,958,425
Manor Care 50,000 1,918,750
------------
5,877,175
------------
INSURANCE 8.30%
American General 67,000 2,437,125
American International Group 28,500 2,753,812
General Re 18,000 2,589,750
Jefferson-Pilot Corp 43,575 2,423,859
Marsh & McLennan 30,000 2,913,750
SAFECO Corp 90,000 3,262,500
------------
16,380,796
------------
INVESTMENT BROKERS 1.47%
Morgan Stanley Group 62,000 2,906,250
------------
MEDICAL RELATED - DRUGS 10.22%
Abbott Laboratories 57,000 2,379,750
American Home Products 26,000 2,561,000
Bristol-Myers Squibb 30,000 2,553,750
Lilly (Eli) & Co 64,000 3,872,000
Merck & Co 48,000 3,180,000
Schering-Plough Corp 47,400 2,660,325
Warner-Lambert Co 30,000 2,966,250
------------
20,173,075
------------
<PAGE>
OFFICE EQUIPMENT 1.75%
Pitney-Bowes Inc 71,700 3,459,525
------------
OIL & GAS RELATED 5.85%
Amoco Corp 40,000 2,780,000
Exxon Corp 35,275 2,804,362
Repsol SA Sponsored ADR 80,400 2,914,500
Royal Dutch Petroleum 5 Gldr Shrs 22,076 3,040,969
------------
11,539,831
------------
PAPER & PAPER PRODUCTS 3.40%
Kimberly-Clark Corp 50,000 3,818,750
Westvaco Corp 100,050 2,901,450
------------
6,720,200
------------
POLLUTION CONTROL RELATED 1.50%
WMX Technologies 104,000 2,964,000
------------
PRINTING & PUBLISHING 1.03%
Gannett Co 30,000 2,040,000
------------
RECREATION SERVICES 1.66%
Disney (Walt) Co 50,000 3,275,000
------------
RETAIL 8.71%
Circuit City Stores 108,000 3,199,500
Dillard Department Stores Class A 57,000 1,781,250
Giant Food Class A 64,000 2,104,000
K mart Corp 334,200 2,339,400
McDonald's Corp 67,000 3,350,000
Penney (J C) Co 68,000 3,230,000
Toys "R" Us* 50,000 1,193,750
------------
17,197,900
------------
TEXTILES & APPAREL
MANUFACTURERS 1.87%
Reebok International Ltd 62,400 1,645,800
Russell Corp 44,700 1,251,600
Shaw Industries 70,100 797,388
------------
3,694,788
------------
TOBACCO 3.42%
Philip Morris 50,000 4,950,000
UST Inc 50,800 1,803,400
------------
6,753,400
------------
TRANSPORTATION 1.70%
Illinois Central Series A 90,000 3,352,500
------------
<PAGE>
UTILITIES 5.18%
CINergy Corp 100,700 3,008,413
DTE Energy 66,500 2,369,063
Southern Co 50,000 1,193,750
Southern New England Telecommunications 46,000 1,880,250
Telefonos de Mexico SA de CV
Sponsored ADR Representing Ord
Series L Shrs 58,000 1,769,000
------------
10,220,476
------------
TOTAL COMMON STOCKS
(Cost $142,962,479) 187,331,928
------------
SHORT-TERM INVESTMENTS 5.10%
Commercial Paper 3.02%
UTILITIES 3.02%
Pacific Gas & Electric
5.170%, 4/3/1996
(Cost $5,971,565) 6,000,000 5,971,565
------------
Repurchase Agreements 2.08%
Repurchase Agreement with
State Street Bank & Trust Co
dated 2/29/1996 due 3/1/1996 at
4.750%, repurchased at $4,105,542
(Collateralized by US Treasury
Notes due 5/15/1998 at 6.125%,
value $4,186,387)
(Cost $4,105,000) 4,105,000 4,105,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $10,076,565) 10,076,565
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $153,039,044)
(Cost for Income Tax Purposes
$153,221,345) $197,408,493
============
* Security is non-income producing.
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Assets and Liabilities
February 29, 1996
UNAUDITED
<TABLE>
<CAPTION>
Intermediate
Government Total Return Value Equity
Bond Fund Fund Fund
---------------------------------------------------
ASSETS
Investment Securities:
<S> <C> <C> <C>
At Cost~ $36,958,019 $739,936,848 $153,039,044
===================================================
At Value~ 38,450,925 872,639,617 $197,408,493
Cash 3,967 822,347 0
Receivables:
Investment Securities Sold 0 890,625 0
Fund Shares Sold 68,174 2,265,274 831,521
Dividends and Interest 343,485 2,745,005 454,708
Prepaid Expenses and Other Assets 16,547 106,498 39,675
---------------------------------------------------
TOTAL ASSETS 38,883,098 879,469,366 198,734,397
---------------------------------------------------
LIABILITIES
Payables:
Custodian 0 0 4,030
Distributions to Shareholders 7,916 131,110 33,469
Investment Securities Purchased 0 5,844,601 0
Fund Shares Repurchased 81,801 413,127 248,981
Accrued Expenses and Other
Payables 6,013 22,929 12,587
---------------------------------------------------
TOTAL LIABILITIES 95,730 6,411,767 299,067
---------------------------------------------------
Net Assets at Value 38,787,368 873,057,599 198,435,330
===================================================
NET ASSETS
Paid-in Capital 38,197,598 740,374,084 153,671,847
Accumulated Undistributed
Net Investment Income 0 9,106 1,856
Accumulated Undistributed
Net Realized Gain (Loss)
on Investment Securities
and Foreign Currency
Transactions (903,136) (28,360) 392,178
Net Appreciation of Investment
Securities and Foreign
Currency Transactions 1,492,906 132,702,769 44,369,449
---------------------------------------------------
Net Assets at Value 38,787,368 873,057,599 198,435,330
===================================================
Shares Outstanding* 3,045,975 38,527,980 9,145,195
Net Asset Value, Offering and
Redemption Price per Share $12.73 $22.66 $21.70
===================================================
<FN>
~ Investment securities at cost and value at February 29, 1996 include
repurchase agreements of $1,275,000, $6,430,000 and $4,105,000 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 February 29,
1996, there was an unlimited number of authorized Fund shares.
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Statement of Operations
Six Months Ended February 29, 1996
UNAUDITED
<TABLE>
<CAPTION>
Intermediate
Government Total Return Value Equity
Bond Fund Fund Fund
---------------------------------------------------
INVESTMENT INCOME
INCOME
<S> <C> <C> <C>
Dividends $0 $6,534,976 $ 2,171,409
Interest 1,299,022 9,092,503 224,943
Foreign Taxes Withheld 0 (109,202) (29,568)
---------------------------------------------------
TOTAL INCOME 1,299,022 15,518,277 2,366,784
---------------------------------------------------
EXPENSES
Investment Advisory Fees 114,414 2,607,632 648,375
Transfer Agent Fees 70,032 334,184 107,128
Administrative Fees 7,860 59,428 17,967
Custodian Fees and Expenses 7,353 62,982 17,495
Professional Fees and Expenses 6,846 15,936 9,924
Registration Fees and Expenses 12,460 51,563 22,050
Reports to Shareholders 5,320 28,339 9,827
Trustees' Fees and Expenses 4,971 18,175 8,038
Other Expenses 2,147 30,180 7,992
---------------------------------------------------
TOTAL EXPENSES 231,403 3,208,419 848,796
Fees and Expenses Paid Indirectly (3,510) (37,359) (11,407)
---------------------------------------------------
NET EXPENSES 227,893 3,171,060 837,389
---------------------------------------------------
NET INVESTMENT INCOME 1,071,129 12,347,217 1,529,395
---------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 29,460 2,691,013 583,067
Change in Net Appreciation of
Investment Securities and
Foreign Currency Transactions 223,912 55,786,207 20,200,339
---------------------------------------------------
NET GAIN ON INVESTMENT SECURITIES 253,372 58,477,220 20,783,406
---------------------------------------------------
Net Increase in Net Assets
from Operations 1,324,501 70,824,437 22,312,801
===================================================
</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 29 August 31 February 29 August 31
-------------------------------- --------------------------------
1996 1995 1996 1995
UNAUDITED UNAUDITED
OPERATIONS
<S> <C> <C> <C> <C>
Net Investment Income $1,071,129 $2,156,239 $12,347,217 $14,983,860
Net Realized Gain (Loss) on Investment Securities
and Foreign Currency Transactions 29,460 (915,758) 2,691,013 2,916,413
Change in Net Appreciation of Investment Securitie
and Foreign Currency Transactions 223,912 2,538,939 55,786,207 46,627,023
-------------------------------- --------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 1,324,501 3,779,420 70,824,437 64,527,296
-------------------------------- --------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (1,071,129) (2,147,391) (12,331,584) (14,983,860)
In Excess of Net Investment Income 0 0 0 (20,316)
Net Realized Gain on Investment Securities 0 0 (4,352,077) (787,737)
-------------------------------- --------------------------------
TOTAL DISTRIBUTIONS (1,071,129) (2,147,391) (16,683,661) (15,791,913)
-------------------------------- --------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 10,718,935 27,363,047 320,936,208 326,800,315
Reinvestment of Distributions 1,018,010 2,080,851 16,396,245 15,396,556
-------------------------------- --------------------------------
11,736,945 29,443,898 337,332,453 342,196,871
Amounts Paid for Repurchases of Shares (10,542,293) (25,597,128) (81,884,120) (120,228,352)
-------------------------------- --------------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 1,194,652 3,846,770 255,448,333 221,968,519
-------------------------------- --------------------------------
Total Increase in Net Assets 1,448,024 5,478,799 309,589,109 270,703,902
NET ASSETS
Beginning of Period 37,339,344 31,860,545 563,468,490 292,764,588
-------------------------------- --------------------------------
End of Period 38,787,368 37,339,344 873,057,599 563,468,490
================================ ================================
Accumulated Undistributed (Over distributed) Net
Investment Income Included
in Net Assets at End of Period 0 0 9,106 (6,527)
FUND SHARE TRANSACTIONS
Shares Sold 832,776 2,246,918 14,609,468 16,593,356
Shares Issued from Reinvestment of Distributions 79,184 170,015 732,748 786,039
-------------------------------- --------------------------------
911,960 2,416,933 15,342,216 17,379,395
Shares Repurchased (819,828) (2,082,218) (3,706,825) (6,275,356)
-------------------------------- --------------------------------
Net Increase in Fund Shares 92,132 334,715 11,635,391 11,104,039
================================ ================================
</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 29 August 31
--------------------------------
1996 1995
UNAUDITED
OPERATIONS
<S> <C> <C>
Net Investment Income $1,529,395 $2,846,758
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 583,067 5,886,502
Change in Net Appreciation of Investment Securities
and Foreign Currency Transactions 20,200,339 14,593,965
--------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS 22,312,801 23,327,225
--------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (1,540,155) (2,834,142)
Net Realized Gain on Investment Securities (3,086,951) (7,116,877)
--------------------------------
TOTAL DISTRIBUTIONS (4,627,106) (9,951,019)
--------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 88,453,410 98,871,021
Reinvestment of Distributions 4,526,262 9,797,324
--------------------------------
92,979,672 108,668,345
Amounts Paid for Repurchases of Shares (65,400,926) (80,723,493)
--------------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 27,578,746 27,944,852
--------------------------------
Total Increase in Net Assets 45,264,441 41,321,058
NET ASSETS
Beginning of Period 153,170,889 111,849,831
--------------------------------
End of Period 198,435,330 153,170,889
================================
Accumulated Undistributed Net Investment
Income Included in Net Assets at End of Period 1,856 12,616
FUND SHARE TRANSACTIONS
Shares Sold 4,212,615 5,496,357
Shares Issued from Reinvestment of Distributions 215,301 573,039
--------------------------------
4,427,916 6,069,396
Shares Repurchased (3,124,817) (4,400,997)
--------------------------------
Net Increase in Fund Shares 1,303,099 1,668,399
================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Value Trust
Notes to Financial Statements
UNAUDITED
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Value Trust
(the "Trust") was organized under the laws of the Commonwealth of Massachusetts
and presently consists of three separate Funds: Intermediate Government Bond
Fund, Total Return Fund and Value Equity Fund. The investment objectives of the
Funds are to achieve a high total return on investments through capital
appreciation and current income. The Trust is registered under the Investment
Company Act of 1940 (the "Act") as a diversified, open-end management investment
company.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION -- Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sales
price in the market where such securities are primarily traded. If last
sales 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.
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.
<PAGE>
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 dividend if such
information is obtained subsequent to 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 impositions of adverse foreign
governmental laws or currency exchange restrictions. Net realized and
unrealized gain or loss from investments includes fluctuations from
currency exchange rates and fluctuations in market value.
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.
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.
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 Total Return and Value
Equity 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 expired capital loss
carryforwards.
<PAGE>
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.
Under an agreement between each Fund and the Trust's Custodian,
agreed upon Custodian Fees and Expenses are reduced by credits granted by
the Custodian from any temporarily uninvested cash. Similarly, Other
Expenses, which include Pricing Expenses, are reduced by credits earned by
each Fund from security brokerage transactions under certain
broker/services arrangements with third parties. Such credits are included
in Fees and Expenses Paid Indirectly in the Statement of Operations.
For the six months ended February 29, 1996, Fees and Expenses Paid
Indirectly consisted of the following:
Custodian Fees Other
Fund and Expenses Expenses
- ------------------------------------------------------------------------
Intermediate Government Bond Fund $3,510 $ 0
Total Return Fund 36,512 847
Value Equity Fund 10,238 1,169
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
- -----------------------------------------------------------------------------
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. The fee is accrued daily and paid monthly.
<PAGE>
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
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 29, 1996, 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 $175,589,709 $ 8,600,180
Value Equity Fund 29,297,386 11,707,317
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities were as follows:
Fund Purchases Sales
- ------------------------------------------------------------------------
Intermediate Government Bond Fund $ 4,801,105 $ 2,975,551
Total Return Fund 53,645,092 540,639
NOTE 4 -- APPRECIATION AND DEPRECIATION. At February 29, 1996, 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:
<TABLE>
<CAPTION>
Gross Gross Net
Fund Appreciation Depreciation Appreciation
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Intermediate Government Bond Fund $1,605,388 $ 134,232 $1,471,156
Total Return Fund 141,663,306 8,973,862 132,689,444
Value Equity Fund 47,648,479 3,461,331 44,187,148
</TABLE>
NOTE 5 - TRANSACTIONS WITH AFFILIATES. Certain of the Trust's officers and
trustees are also officers and directors of IFG or ICM.
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.
<PAGE>
Pension expenses for the six months ended February 29, 1996, 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:
<TABLE>
<CAPTION>
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Intermediate Government Bond Fund $202 $834 $1,739
Total Return Fund 2,776 5,774 15,077
Value Equity Fund 824 3,046 6,544
</TABLE>
NOTE 6 -- LINE OF CREDIT. The Trust has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maxium of 10% of the Net Assets at Value of each respective
Fund. Each Fund agrees to pay annual fees and interest on the unpaid principal
balance based on prevailing market rates as defined in the agreement. For the
six months ended February 29, 1996, there were no such borrowings.
<PAGE>
INVESCO Value Trust
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Year Ended Ended
February 29 August 31 August 31 Year Ended December 31
------------- ------------------------------ --------------------------------
1996 1995 1994 1993^ 1992 1991 1990
UNAUDITED
Intermediate Government Bond Fund
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value -
Beginning of Period $12.64 $12.16 $13.25 $12.68 $12.89 $12.13 $12.07
------------- ------------------------------ --------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.36 0.73 0.70 0.48 0.90 0.89 1.00
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.09 0.48 (0.75) 0.57 (0.16) 0.77 0.05
------------- ------------------------------ --------------------------------
Total from Investment Operations 0.45 1.21 (0.05) 1.05 0.74 1.66 1.05
------------- ------------------------------ --------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment
Income+ 0.36 0.73 0.70 0.48 0.90 0.90 0.99
Distributions from Capital Gains 0.00 0.00 0.34 0.00 0.05 0.00 0.00
------------- ------------------------------ --------------------------------
Total Distributions 0.36 0.73 1.04 0.48 0.95 0.90 0.99
------------- ------------------------------ --------------------------------
Net Asset Value - End of Period $12.73 $12.64 $12.16 $13.25 $12.68 $12.89 $12.13
============= ============================== ================================
TOTAL RETURN 3.55%* 10.36% (0.37%) 8.38%* 6.03% 14.16% 9.08%
RATIOS
Net Assets - End of Period
($000 Omitted) $38,787 $37,339 $31,861 $39,384 $29,649 $24,385 $18,380
Ratio of Expenses to Average
Net Asset # 0.60%*@ 1.20% 1.07% 0.96%~ 0.97% 0.93% 0.85%
Ratio of Net Investment Income to
Average Net Assets# 2.80%* 6.04% 5.58% 5.48%~ 6.38% 7.28% 8.16%
Portfolio Turnover Rate 8%* 92% 49% 34%* 93% 51% 31%
<FN>
^ From January 1, 1993 to August 31, 1993, the Fund's new fiscal year-end.
+ Distributions in excess of net investment income for the year ended August
31, 1994, aggregated less than $0.01 on a per share basis.
* 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 and 0.96%
and and ratio of net investment income to average net assets would have
been 8.05%.
@ Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
~ Annualized
</FN>
</TABLE>
<PAGE>
INVESCO Value Trust
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Year Ended Ended
February 29 August 31 August 31 Year Ended December 31
------------- ------------------------------ --------------------------------
1996 1995 1994 1993^ 1992 1991 1990
UNAUDITED
Total Return Fund
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value -
Beginning of Period $20.95 $18.54 $18.27 $17.18 $16.43 $14.21 $15.08
------------- ------------------------------ --------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.35 0.72 0.69 0.40 0.66 0.71 0.74
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.84 2.46 0.60 1.09 0.93 2.78 (0.80)
------------- ------------------------------ --------------------------------
Total from Investment Operations 2.19 3.18 1.29 1.49 1.59 3.49 (0.06)
------------- ------------------------------ --------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ 0.35 0.72 0.60 0.40 0.65 0.72 0.75
In Excess of Net Investment Income 0.00 0.00 0.09 0.00 0.00 0.00 0.00
Distributions from Capital Gains 0.13 0.05 0.17 0.00 0.19 0.55 0.06
In Excess of Capital Gains 0.00 0.00 0.16 0.00 0.00 0.00 0.00
------------- ------------------------------ --------------------------------
Total Distributions 0.48 0.77 1.02 0.40 0.84 1.27 0.81
------------- ------------------------------ --------------------------------
Net Asset Value - End of Period $22.66 $20.95 $18.54 $18.27 $17.18 $16.43 $14.21
============= ============================== ================================
TOTAL RETURN 10.48%* 17.54% 7.22% 8.72%* 9.84% 24.96% (0.35%)
RATIOS
Net Assets -
End of Period ($000 Omitted) $873,058 $563,468 $292,765 $220,224 $137,196 $82,219 $54,874
Ratio of Expenses to Average
Net Assets 0.44%*@ 0.95% 0.96% 0.93%~ 0.88% 0.92% 1.00%
Ratio of Net Investment Income to
Average Net Assets 1.70%* 3.97% 3.31% 3.51%~ 4.06% 4.62% 5.22%
Portfolio Turnover Rate 1%* 30% 12% 19%* 13% 49% 24%
<FN>
^ From January 1, 1993 to August 31, 1993, the Fund's new fiscal year-end.
+ Distributions in excess of net investment income for the year ended August
31, 1995, aggregated less than $0.01 on a per share basis.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
~ Annualized
</FN>
</TABLE>
<PAGE>
INVESCO Value Trust
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Year Ended Ended
February 29 August 31 August 31 Year Ended December 31
------------- ------------------------------ --------------------------------
1996 1995 1994 1993^ 1992 1991 1990
UNAUDITED
Value Equity Fund
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value -
Beginning of Period $19.53 $18.12 $17.79 $16.91 $16.57 $13.88 $15.30
------------- ------------------------------ --------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.18 0.39 0.36 0.24 0.36 0.40 0.44
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.55 2.58 1.20 0.88 0.45 4.54 (1.33)
------------- ------------------------------ --------------------------------
Total from Investment Operations 2.73 2.97 1.56 1.12 0.81 4.94 (0.89)
------------- ------------------------------ --------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment
Income 0.18 0.39 0.31 0.24 0.34 0.40 0.47
In Excess of Net Investment Income 0.00 0.00 0.04 0.00 0.00 0.00 0.00
Distributions from Capital Gains 0.38 1.17 0.88 0.00 0.13 1.85 0.06
------------- ------------------------------ --------------------------------
Total Distributions 0.56 1.56 1.23 0.24 0.47 2.25 0.53
------------- ------------------------------ --------------------------------
Net Asset Value - End of Period $21.70 $19.53 $18.12 $17.79 $16.91 $16.57 $13.88
============= ============================== ================================
TOTAL RETURN 14.05%* 17.84% 9.09% 6.65%* 4.98% 35.84% (5.80%)
RATIOS
Net Assets - End of Period
($000 Omitted) $198,435 $153,171 $111,850 $81,914 $78,609 $39,741 $29,825
Ratio of Expenses to Average
Net Assets# 0.49%*@ 0.97% 1.01% 1.00%* 0.91% 0.98% 1.00%
Ratio of Net Investment Income to
Average Net Assets# 0.88%* 2.17% 1.80% 2.07% 2.19% 2.39% 3.00%
Portfolio Turnover Rate 7%* 34% 53% 35%* 37% 64% 23%
<FN>
^ From January 1, 1993 to August 31, 1993, the Fund's new fiscal year-end.
* 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%.
@ Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
~ Annualized
</FN>
</TABLE>
<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.,(SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
If you're in Denver, pleas visit one of our
convenient Investor Centers:
Cherry Creek, 155-B Fillmore Street;
Denver Tech Center
7800 East Union Avenue, Lobby Level
This information must be preceded or accompanied by an effective prospectus.
