Registration No. 33-19862
Registration No. 811-5460
As filed on April 20, 1995
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
-
Pre-Effective Amendment No.
Post-Effective Amendment No. 14 X
-
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
-
Amendment No. 18 X
_
INVESCO TREASURER'S SERIES TRUST
(Exact Name of Registrant as Specified in Charter)
7800 E. Union Avenue, Denver, Colorado 80237
(Address of Principal Executive Offices)
P.O. Box 173706, Denver, Colorado 80217-3706
(Mailing Address)
Registrant's Telephone Number, including Area Code: (800) 241-5477
Glen A. Payne, Esq.
7800 E. Union Avenue, Suite 800
Denver, Colorado 80237
(Name and Address of Agent for Service)
-------------------
Copies to:
Clifford J. Alexander
Kirkpatrick & Lockhart
1800 M Street NW
Washington, D.C. 20036
-------------------
Approximate Date of Proposed Public Offering: As soon as practicable after
this post-effective amendment becomes effective.
It is proposed that this filing will become effective (check appropriate box)
immediately upon filing pursuant to paragraph (b)
X on April 28, 1995, pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)(1) on ______________,
pursuant to paragraph (a)(1) 75 days after filing pursuant to paragraph
(a)(2) on ______________, pursuant to paragraph (a)(2) of rule 485
If appropriate, check the following:
this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
-------------------
Registrant has previously elected to register an indefinite number of shares
pursuant to Rule 24f-2 under the Investment Company Act of 1940. Registrant's
Rule 24f-2 Notice for the fiscal year ended December 31, 1994 was filed on or
about February 24, 1995.
Page 1 of 100
Exhibit index is located at page 91
<PAGE>
INVESCO TREASURER'S SERIES TRUST
CROSS-REFERENCE SHEET
Form N-1A
Item Caption
Part A Prospectus
1 Cover Page
2 Annual Fund Expenses
3 Financial Highlights; Performance Data
4 Investment Objective and Policies; The Fund and Its
Management
5 The Fund and Its Management; Additional Information
5A Not Applicable
6 Services Provided by the Fund; Dividends, Capital Gain
Distributions, and Taxes; Additional Information
7 How Shares Can Be Purchased; Services Provided by the Fund
8 Services Provided by the Fund; How to Redeem Shares
9 Not Applicable
Part B Statement of Additional Information
10 Cover Page
11 Table of Contents
12 The Fund and Its Management
13 Investment Practices; Investment Policies and Restrictions
14 The Fund and Its Management
15 The Fund and Its Management; Additional Information
16 The Fund and Its Management; Additional Information
17 Investment Practices; Investment Policies and Restrictions
18 Additional Information
19 How Shares Can Be Purchased; How Shares Are Valued;
Services Provided by the Fund; Tax-Sheltered Retirement
Plans; How to Redeem Shares
20 Dividends, Capital Gain Distributions, and Taxes
21 How Shares Can Be Purchased
22 Performance Data
23 Additional Information
Part C Other Information
Information required to be included in Part C is set forth under the
appropriate Item, so numbered, in Part C to this Registration Statement.
<PAGE>
PROSPECTUS
April 28, 1995
INVESCO TREASURER'S SERIES TRUST
INVESCO TREASURER'S MONEY MARKET RESERVE FUND
INVESCO TREASURER'S TAX-EXEMPT RESERVE FUND
7800 East Union Avenue
Denver, Colorado 80237
Telephone: 404/892-0896
800/241-5477
INVESCO Treasurer's Series Trust (the "Trust") is an open-end management
investment company presently consisting of four separate funds, each of which
represents a separate portfolio of investments. This Prospectus relates to the
INVESCO Treasurer's Money Market Reserve Fund and INVESCO Treasurer's Tax-Exempt
Reserve Fund (the "Funds"), two portfolios that are designed especially for
treasurers and financial officers of corporations, financial institutions, and
fiduciary accounts. This Prospectus describes the operations of each of the
Funds, and is used to make a public offering of shares of beneficial interest of
both Funds.
The investment objective of each of the Funds is to achieve as high a level of
current income as is consistent with the preservation of capital and the
maintenance of liquidity. Each of the Funds has separate investment policies.
Each Fund's shares are offered at net asset value, which is expected, but cannot
be assured, to be maintained at a constant $1.00 per share. Shares of the Funds
are neither insured nor guaranteed by the U.S.
Government.
INVESCO CAPITAL MANAGEMENT, INC.
Investment Adviser
INVESCO SERVICES, INC.
Distributor
THIS PROSPECTUS SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE.
This Prospectus is designed to set forth concisely the information that you
should know before investing in either of the Funds. A Statement of Additional
Information (dated April 28, 1995) for the Funds has been filed with the
Securities and Exchange Commission and is incorporated herein by reference. This
Statement is available without charge from INVESCO Services, Inc., 1315
Peachtree Street, N.E., Atlanta, Georgia 30309, telephone number 1-800-241-5477,
outside of Georgia; inside Georgia, 1-404-892-0896.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK OR OTHER FINANCIAL INSTITUTION. THE SHARES
OF THE FUNDS ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
<PAGE>
PROSPECTUS
April 28, 1995
TABLE OF CONTENTS
Page
SUMMARY. .................................................................... 6
ANNUAL FUND EXPENSES......................................................... 10
FINANCIAL HIGHLIGHTS......................................................... 11
THE TRUST.................................................................... 14
INVESTMENT OBJECTIVES AND POLICIES........................................... 14
Money Market Reserve Fund.............................................. 14
Tax-Exempt Reserve Fund................................................ 15
OTHER POLICIES RELEVANT TO THE FUNDS......................................... 17
INVESTMENT RESTRICTIONS...................................................... 20
THE INVESTMENT ADVISER....................................................... 23
THE DISTRIBUTOR.............................................................. 25
COMPUTATION OF NET ASSET VALUE............................................... 25
CAPITALIZATION............................................................... 26
DISTRIBUTIONS AND TAX INFORMATION............................................ 26
Distributions.......................................................... 26
Federal Taxes.......................................................... 27
Automatic Dividend Reinvestment Plan................................... 28
HOW TO BUY FUND SHARES....................................................... 28
Purchase by Wire....................................................... 30
Exchange Privilege..................................................... 30
Purchase by Telephone Orders........................................... 31
REDEMPTION OF SHARES......................................................... 31
SHAREHOLDER REPORTS.......................................................... 34
MISCELLANEOUS................................................................ 34
LEGAL OPINIONS............................................................... 36
APPENDIX A................................................................... 37
<PAGE>
SUMMARY
The Trust:
The Trust is a no-load open-end, diversified management investment company
that was organized under the laws of the Commonwealth of Massachusetts,
presently consisting of four separate funds, the INVESCO Treasurer's Money
Market Reserve Fund (the "Money Fund") and the INVESCO Treasurer's Tax-Exempt
Reserve Fund (the "Tax-Exempt Fund") (collectively, the "Funds"), each of which
represents a separate portfolio of investments. This Prospectus describes the
operations of the Money Fund and the Tax-Exempt Fund. Each of the Funds has
separate investment policies. The Funds are designed especially for
consideration by treasurers and financial officers of corporations, financial
institutions, and fiduciary accounts. The securities offered by this Prospectus
consist of shares of beneficial interests of both Funds. Certain of the terms
used in this Prospectus are defined in Appendix A.
Investment Objectives:
The investment objective of each of the Funds is to achieve as high a
level of current income as is consistent with the preservation of capital, the
maintenance of liquidity, and investing in high quality instruments. A summary
of how each Fund intends to accomplish its objective follows:
INVESCO Treasurer's Money Market Reserve Fund -- This Fund will attempt to
achieve its objective by investing in short-term money market instruments,
consisting of those issued or guaranteed by the U.S. Government or its agencies
or instrumentalities, obligations of financial institutions (such as the
following instruments determined to be readily marketable by the Investment
Adviser: certificates of deposit, time deposits and bankers' acceptances of
domestic and foreign banks, and funding agreements issued by domestic insurance
companies) which may include demand features, commercial paper, corporate debt
obligations other than commercial paper and loan participation agreements.
Corporate debt securities acquired by the Money Fund must be rated by at least
two nationally recognized statistical rating organizations ("NRSROs"), generally
Standard & Poor's Ratings Group ("S&P") and Moody's Investors Services, Inc.
("Moody's"), in one of the two highest rating categories (AAA or AA by S&P or
Aaa or Aa by Moody's), or where the obligation is rated only by S&P or Moody's,
and not by any other NRSRO, such obligation is rated AAA or AA by S&P or Aaa or
Aa by Moody's. The Money Fund will limit purchases of instruments issued by
banks to those instruments issued by a bank that meets the criteria discussed in
the section of this Prospectus entitled "Investment Objectives and Policies."
The Money Fund limits investment in foreign bank obligations to U.S. dollar
denominated obligations of foreign banks that have assets of at least $10
billion and have branches or agencies in the U.S.
Commercial paper acquired by the Money Fund must be rated by at least two
NRSROs, generally S&P and Moody's, in the highest rating category (A-1 by S&P or
P-1 by Moody's), or, where the obligation is rated only by S&P or Moody's, and
not by any other NRSRO, such obligation is rated A-1 or P-1. Money market
instruments purchased by the Money Fund that are not rated must be determined by
the Adviser to be of equivalent credit quality to the rated securities in which
the Money Fund may invest. In the Adviser's opinion, obligations that are not
rated are not necessarily of lower quality than those that are rated but may be
less marketable and typically may provide higher yields. The Fund will invest in
such securities only when such investment is in accordance with the Fund's
investment objective of achieving a high level of current income and when such
investment will not impair the Fund's ability to comply with requests for
redemptions.
<PAGE>
INVESCO Treasurer's Tax-Exempt Reserve Fund -- This Fund will attempt to
achieve its objective by investing in the following instruments: short-term
municipal obligations consisting of tax anticipation notes, revenue anticipation
notes and bond anticipation notes; short-term municipal bonds; tax-exempt
commercial paper; and variable rate demand notes. Under normal market
conditions, this Fund will invest at least 80% of its net assets in municipal
obligations that pay interest free from federal income tax.
Municipal obligations other than municipal notes or commercial paper will
be purchased by the Tax-Exempt Fund only if backed by the full faith and credit
of the United States, or if they meet the rating requirements set forth below.
Municipal bonds must be rated by at least two NRSROs - generally S&P and Moody's
- - in one of the two highest rating categories (AAA or AA by S&P or Aaa or Aa by
Moody's), or where the bond is rated only by one NRSRO - generally S&P or
Moody's - in the single NRSRO's two highest rating categories (AAA or AA by S&P,
or Aaa or Aa by Moody's). Municipal notes or municipal commercial paper must be
rated in the highest rating category by at least two NRSROs, or where the notes
or paper is rated only by one NRSRO, in the highest rating category by that
NRSRO. If a security is unrated, the Fund may invest in such security if the
Adviser determines, in an analysis similar to that performed by Moody's or S&P
in rating similar securities and issuers, that the security is comparable to
that eligible for investment by the Fund.
In order to enhance the liquidity, stability or quality of a municipal
obligation, the Tax-Exempt Fund may acquire a right to sell an obligation to
another party at a guaranteed price approximating par value, either on demand or
at specified intervals. The right to sell may form part of the obligation or be
acquired separately by the Tax-Exempt Fund. These rights may be referred to as
demand features, standby commitments or puts, depending on their characteristics
(collectively referred to as "Standby Commitments"), and may involve letters of
credit or other credit support arrangements supplied by domestic or foreign
banks supporting the other party's ability to purchase the obligation from the
Tax-Exempt Fund.
In fulfillment of their investment objectives, and as part of their
investment strategy, both Funds may enter into repurchase agreements and invest
in bank participation interests and "when issued" securities. Both Funds may
also enter into reverse repurchase agreements, but only for the purpose of
obtaining funds for meeting redemption requests of shareholders. Both Funds may
also hold cash for temporary defensive purposes. (See "Investment Objectives and
Policies.")
Certain of the investments by the Funds may be considered "illiquid
securities." Each of the Funds has adopted an investment policy that prohibits
it from having more than 10% of its total assets invested in illiquid securities
(including restricted securities, repurchase agreements maturing in more than
seven days, time deposits without demand features having a stated maturity
greater than seven days, and funding agreements and participation interests
without demand features or for which there is not a readily available market).
Investment Adviser:
INVESCO Capital Management, Inc., a Delaware corporation and the Trust's
investment adviser (the "Adviser"), acts as investment adviser to other
investment companies and furnishes investment counseling services to private and
institutional clients. As to each Fund, the Trust pays the Adviser an advisory
fee equal to, on an annual basis, 0.25% of the average daily net asset value of
the Fund's net assets.
<PAGE>
Principal Underwriter and Distributor:
INVESCO Services, Inc. (the "Distributor") serves as the principal
underwriter and distributor of shares of the Trust. The Distributor also
furnishes distribution and investment advisory services to one other
investment company consisting of six portfolios.
Purchases:
Each Fund's shares are offered at net asset value, which is expected to be
maintained at a constant $1.00 per share. There is no assurance, however, that a
Fund will be able to maintain a net asset value of $1.00 per share. The minimum
initial purchase of shares required by the Trust is $1,000,000. In determining
the minimum required, subscribers will be given credit for amounts which they
have invested in either of the Funds. Shares must be purchased by good funds (as
defined under "How to Buy Fund Shares"). The Trust reserves the right to reduce
or to waive the minimum purchase requirements in certain cases. Subsequent
investments in any of the Funds may be made in amounts of $100,000 or more at
any time. Shares may be purchased through the Distributor, acting as agent for
the Trust. Purchase orders may also be placed through member firms of the
National Association of Securities Dealers, Inc. ("NASD"), who may charge a
reasonable handling fee. Such handling fees can be avoided by investing directly
with the Trust. There are no charges imposed by the Trust or the Distributor on
purchases of Trust shares.
Redemptions:
The amount paid upon redemption will be the net asset value per share next
determined after the redemption request is received in proper form. If a
redemption request is received by 11:30 a.m. (New York time) proceeds will
normally be wired that day, if requested by the shareholder, but no dividend
will be earned on the redeemed shares on that day. Proceeds on redemption
requests received after 11:30 a.m. (New York time) will be sent the next
business day when net asset value is determined and will earn any dividends paid
on the redeemed shares up to but not including the day on which such shares are
redeemed. There is no charge imposed in connection with the redemption of
shares. The Trust has the right to redeem shareholder accounts that fall below a
minimum level ($500,000 or less) as a result of redemptions of shares. (See
"Redemption of Shares.")
Dividends and Distributions:
The Trust intends to declare dividends daily. All distributions made
to a shareholder will be reinvested automatically in additional Fund shares
pursuant to the Trust's Automatic Dividend Reinvestment Plan unless the
shareholder specifically elects to receive declared dividends and other
distributions in cash. (See "Automatic Dividend Reinvestment Plan.")
<PAGE>
ANNUAL FUND EXPENSES
Money Fund and Tax-Exempt Fund
Shareholder Transaction Expenses
Sales load "charge" on purchases None
Sales load "charge" on reinvested None
dividends
Redemption fees None
Exchange fees None
Annual Operating Expenses of the Money and Tax-Exempt Funds (as a percentage of
average net assets) for the year ended December 31, 1994.
Tax-Exempt
Money Fund Fund
Investment Management Fees and Total
Operating Expenses* 0.25% 0.25%
12b-1 Fee None None
*Pursuant to the Trust's investment advisory agreement, the Trust's investment
adviser is responsible for the payment of all of the Trust's expenses other than
payment of advisory fees, taxes, interest, and brokerage commissions.
Examples:
Money Fund
A shareholder would pay the following expenses on a $1000 investment for
the periods shown, assuming a 5% annual return, and redemption at the end of
each time period:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$3 $8 $14 $32
Tax-Exempt Fund
A shareholder would pay the following expenses on a $1000 investment for
the periods shown, assuming a 5% annual return, and redemption at the end of
each time period:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$3 $8 $14 $32
The purpose of the foregoing tables is to assist investors in
understanding the various costs and expenses that an investor in the Funds will
bear directly or indirectly. For a more detailed description of the investment
management fees, see "The Investment Adviser."
The Examples set forth above assume reinvestment of all dividends and
distributions. The Examples should not be considered a representation of past or
future expenses and actual expenses may be more or less than those shown. The
assumed 5% annual return is hypothetical and should not be considered a
representation of past or future annual returns, which may be greater or less
than the assumed amount.
<PAGE>
FINANCIAL HIGHLIGHTS
(for a Fund Share Outstanding throughout each Period)
The following selected per share data and ratios for the six years ended
December 31, 1994, has been audited by Price Waterhouse LLP, independent
accountants. Prior period information was audited by another independent
accounting firm. This information should be read in conjunction with the audited
financial statements and the Report of Independent Accountants thereon appearing
in the Trust's 1994 Annual Report to Shareholders and in the Statement of
Additional Information, both of which are available without charge by writing
INVESCO Services, Inc. at 1315 Peachtree Street, N.E., Atlanta, Georgia; or by
calling 1-800-241- 5477.
<PAGE>
<TABLE>
<CAPTION>
INVESCO Treasurer's Series Trust
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
For the
Period Ended
Year Ended December 31 December 31
------------------------------------------------------ ---------
1994 1993 1992 1991 1990 1989 1988^
INVESCO Treasurer's Money Market Reserve Fund
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.04 0.03 0.04 0.06 0.08 0.09 0.03
Net Asset Value - End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN 4.13% 2.92% 3.57% 6.04% 8.39% 9.53% 4.37%*
RATIOS
Net Assets - End of Period
($000 Omitted) $93,131 $102,822 $117,711 $173,138 $278,236 $176,917 $64,416
Ratio of Expenses to
Average Net Assets 0.25% 0.25% 0.25% 0.25% 0.25% 0.22% 0.20%~
Ratio of Net Investment Income to
Average Net Assets 4.02% 2.88% 3.54% 5.97% 8.08% 9.03% 8.27%~
^From April 27, 1988, commencement of operations, to December 31, 1988.
*This amount is based on operations for the period shown and, is not
representative of a full year.
<FN>
~Annualized
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INVESCO Treasurer's Series Trust
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
For the
Period Ended
Year Ended December 31 December 31
----------------------------------------------------- ---------
1994 1993 1992 1991 1990 1989 1988^
INVESCO Treasurer's Tax-Exempt Reserve Fund
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.03 0.02 0.03 0.05 0.06 0.06 0.02
Net Asset Value - End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN 2.81% 2.30% 2.88% 4.57% 6.05% 6.53% 2.98%*
RATIOS
Net Assets - End of Period
($000 Omitted) $19,716 $27,261 $60,717 $78,552 $61,981 $67,806 $86,163
Ratio of Expenses to
Average Net Assets 0.25% 0.25% 0.25% 0.25% 0.25% 0.21% 0.20%~
Ratio of Net Investment Income to
Average Net Assets 2.69% 2.28% 2.84% 4.48% 5.90% 6.33% 5.72%~
^From April 27, 1988, commencement of operations, to December 31, 1988.
*This amount is based on operations for the period shown and, is not
representative of a full year.
<FN>
~Annualized
</FN>
</TABLE>
Further information about the performance of the Funds is contained in the
Company's annual report to shareholders, which may be obtained without charge by
writing INVESCO Services, Inc. at 1315 Peachtree Street, N.E., Atlanta, Georgia
30309; or by calling 1-800-241-5477.
<PAGE>
THE TRUST
The Trust is a no-load, open-end, diversified management investment
company. The Trust's address is 7800 East Union Avenue, Denver, Colorado 80237.
The Trust was organized on January 27, 1988, under the laws of the Commonwealth
of Massachusetts as a Massachusetts business trust. The Trust has one class of
shares that may be divided into different series, each representing an interest
in a separate portfolio of investments. Presently, the Trust has four separate
portfolios of investments. This Prospectus describes the INVESCO Treasurer's
Money Market Reserve Fund ("Money Fund") and the INVESCO Treasurer's Tax-Exempt
Reserve Fund ("Tax-Exempt Fund") (collectively, the "Funds").
From time to time the Funds advertise their respective "yield" and
"effective yield." The "yields" shown are based on historical earnings and are
not intended to indicate future performance. Annualized net yields for the seven
days ended December 31, 1994 for the Money Fund and the Tax-Exempt Fund were
5.91% and 5.22%, respectively. The yield of a Fund refers to the net income
generated by the investment in the Fund over a seven-day period (which period
will be stated in the advertisement). This income is then annualized. That is,
the amount of income generated by the investment during that week is assumed to
be generated each week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly but, when annualized,
the income earned by an investment in the Fund is assumed to be reinvested. The
"effective yield" will be slightly higher than the "yield" because of the
compounding effect of this assumed reinvestment.
Average portfolio maturities for the Money Fund and Tax-Exempt Fund were
12 days and 10 days, respectively, at December 31, 1994.
INVESTMENT OBJECTIVES AND POLICIES
The investment objective of each of the Funds is to achieve as high a
level of current income as is consistent with the preservation of capital and
the maintenance of liquidity. Each Fund's assets are invested in securities
having maturities of 397 days or less, and the dollar weighted average maturity
of the portfolio will not exceed 90 days. The Funds buy only securities
determined by the Board of Directors or the Adviser with the approval of the
Board of Directors to be of high quality with minimal credit risk and that are
eligible for investment by the Funds under applicable U.S. Securities and
Exchange Commission ("SEC") rules. See Appendix A for descriptions of the
investment instruments referred to below, as well as discussions of the degrees
of risk involved in purchasing these instruments.
INVESCO Treasurer's Money Market Reserve Fund -- The Money Fund attempts
to achieve its objective by investing in money market instruments, consisting
of: short-term money market instruments issued or guaranteed by the U.S.
Government or its agencies or instrumentalities, obligations of financial
institutions (such as the following instruments determined to be readily
marketable by the Investment Adviser: certificates of deposit, time deposits and
bankers' acceptances of domestic and foreign banks, and funding agreements
issued by domestic insurance companies) which may include demand features,
corporate debt securities, other than commercial paper and loan participation
agreements. Corporate debt securities acquired by the Money Fund must be rated
by at least two NRSROs - generally Standard & Poor's Ratings Group ("S&P") and
<PAGE>
Moody's Investors Services, Inc. ("Moody's") - in one of the two highest
rating categories (AAA or AA by S&P or Aaa or Aa by Moody's), or where the
obligation is rated only by S&P or Moody's, and not by any other NRSRO, such
obligation is rated AAA or AA by S&P, or Aaa or Aa by Moody's. The Money Fund
limits purchases of instruments issued by banks to those instruments which are
rated in one of the two highest categories by a nationally recognized
statistical rating organization, and which are issued by banks which have total
assets in excess of $4 billion and meet other criteria established by the board
of trustees. The Money Fund limits investments in foreign bank obligations to
U.S. dollar denominated obligations of foreign banks which have assets of at
least $10 billion, have branches or agencies in the U.S., and meet other
criteria established by the board of trustees. From time to time, on a temporary
basis for defensive purposes, the Money Fund may hold cash.
Commercial paper acquired by this Fund must be rated by at least two
NRSROs, generally S&P and Moody's, in the highest rating category (A-1 by S&P or
P-1 by Moody's), or, where the obligation is rated by only S&P or Moody's and
not by any other NRSRO, such obligation is rated A-1 or P-1. Money market
instruments purchased by the Money Fund which are not rated by any NRSRO must be
determined by the Adviser to be of equivalent credit quality to the rated
securities in which the Money Fund may invest. In the Adviser's opinion,
obligations that are not rated are not necessarily of lower quality than those
which are rated; however, they may be less marketable and typically may provide
higher yields. The Fund invests in unrated securities only when such an
investment is in accordance with the Fund's investment objectives of achieving a
high level of current income and when such investment will not impair the Fund's
ability to comply with requests for redemptions.
INVESCO Treasurer's Tax-Exempt Reserve Fund -- The Tax-Exempt Fund will
attempt to achieve its objective by investing in short-term instruments exempt
from federal taxation, consisting of: short-term municipal obligations, such as
tax anticipation notes, revenue anticipation notes and bond anticipation notes;
tax-exempt commercial paper; and variable rate demand notes. It is the intention
of this Fund to qualify to pay exempt-interest dividends for federal tax
purposes. There can be no assurance that this Fund will qualify each year to pay
exempt-interest dividends.
It is a fundamental policy of the Fund that, under normal market
conditions, it will have at least 80% of its net assets invested in municipal
obligations that, based on the opinion of counsel to the issuer, pay interest
free from federal income tax. It is the Tax-Exempt Fund's present intention (but
not a fundamental policy) to invest its assets so that 100% of its annual income
will be tax-exempt. This Fund may invest in municipal obligations whose interest
income is specially treated as a tax preference item under the alternative
minimum tax. All tax-exempt income results in an indirect tax preference item
for corporations, which may subject an investor to liability under the
alternative minimum tax depending on its particular situation. This Fund,
however, will not invest more than 20% of its net assets in obligations the
interest from which gives rise to a preference item for the purpose of the
alternative minimum tax and in other investments subject to Federal income tax.
Distributions from this Fund may be subject to state and local taxes.
<PAGE>
Municipal obligations, other than municipal notes or commercial paper,
will be purchased by the Tax-Exempt Fund only if backed by the full faith and
credit of the United States, or if they meet the rating requirements set forth
below. Municipal bonds must be rated by at least two NRSROs - generally S&P and
Moody's - in one of the two highest rating categories (AAA or AA by S&P or Aaa
or Aa by Moody's), or where the bond is rated only by one NRSRO - generally S&P
or Moody's - in the single NRSRO's two highest rating categories (AAA or AA by
S&P, or Aaa or Aa by Moody's). Municipal notes or municipal commercial paper
must be rated in the highest rating category by at least two NRSROs, or where
the note or paper is rated only by one NRSRO, in the highest rating category by
that NRSRO. If a security is unrated, the Fund may invest in such security if
the Adviser determines, in an analysis similar to that performed by Moody's or
S&P in rating similar securities and issuers, that the security is comparable to
that eligible for investment by the Fund.
In order to enhance the liquidity, stability or quality of a municipal
obligation, the Tax-Exempt Fund may acquire a right to sell an obligation to
another party at a guaranteed price approximating par value, either on demand or
at specified intervals. The right to sell may form part of the obligation or be
acquired separately by the Tax-Exempt Fund. These rights may be referred to as
demand features, standby commitments or puts, depending on their characteristics
(collectively referred to as "Standby Commitments"), and may involve letters of
credit or other credit support arrangements supplied by domestic or foreign
banks supporting the other party's ability to purchase the obligation from the
Tax-Exempt Fund. The Tax-Exempt Fund will acquire these rights solely to
facilitate portfolio liquidity and does not intend to exercise such rights for
trading purposes. In considering whether an obligation meets the Tax-Exempt
Fund's quality standards, the Fund may look to the creditworthiness of the party
providing the right to sell or to the quality of the obligation itself. The
acquisition of a Standby Commitment will not affect the valuation of the
underlying obligation which will continue to be valued in accordance with the
amortized cost method of valuation (see "Computation of Net Asset Value"). For
additional information concerning these rights, see Statement of Additional
Information under "Investment Objectives and Policies."
From time to time, on a temporary basis for defensive purposes, the
Tax-Exempt Fund may also hold 100 percent of its assets in cash or invest in
taxable short term investments ("taxable investments") consisting of:
obligations of the U.S. Government, its agencies or instrumentalities;
commercial paper limited to obligations which are rated by at least two NRSROs -
generally S&P and Moody's - in the highest rating category (A-1 by S&P and P-1
by Moody's), or where the obligation is rated only by one NRSRO - generally S&P
or Moody's - in the single NRSRO's highest rating category (A-1 by S&P, or P-1
by Moody's); certificates of deposit of U.S. domestic banks, including foreign
branches of domestic banks meeting the criteria described in the discussion of
the Money Fund; time deposits; and repurchase agreements with respect to any of
the foregoing with registered broker-dealers, registered government securities
dealers or banks meeting the criteria described in the discussion of the Money
Fund.
OTHER POLICIES RELEVANT TO THE FUNDS
The Trust, on behalf of each of the Funds, may enter into
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repurchase agreements and reverse repurchase agreements. (See Appendix A to this
Prospectus for a discussion of these agreements and the risks involved with such
transactions.) The Funds will enter into repurchase agreements and reverse
repurchase agreements only with banks which meet the criteria for banks
discussed above and with registered broker-dealers or registered government
securities dealers which have outstanding either commercial paper or other debt
obligations rated in the highest rating category by at least two NRSROs or by
one NRSRO if such obligations are rated by only one NRSRO. The Adviser will
monitor the creditworthiness of such entities in accordance with procedures
adopted and monitored by the Trustees of the Trust. The Funds will enter into
repurchase agreements whenever, in the opinion of the Adviser, such transactions
would be advantageous to the Funds. Repurchase agreements afford an opportunity
for the Funds to earn a return on temporarily available cash. The Funds will
enter into reverse repurchase agreements only for the purpose of obtaining funds
necessary for meeting redemption requests of shareholders. Interest earned by
the Funds on repurchase agreements would not be tax-exempt, and thus would
constitute taxable income.
The Money Reserve Fund may purchase loan participation interests in all or
part of specific holdings of corporate debt obligations. The issuer of such debt
obligations is also the issuer of the loan participation interests into which
the obligations have been apportioned. The Money Reserve Fund will purchase only
loan participation interests issued by companies whose commercial paper is
currently rated, as determined by the investment adviser, in the highest rating
category by at least two NRSROs, generally S&P and Moody's (A-1 by S&P or P-1 by
Moody's), or where such instrument is rated only by S&P or Moody's and not by
any other NRSRO, such instrument is rated A-1 or P-1. Such loan participation
interests will only be purchased from banks which meet the criteria for banks
discussed above and registered broker-dealers or registered government
securities dealers which have outstanding either commercial paper or other
short-term debt obligations rated in the highest rating category by at least two
NRSROs or by one NRSRO if such obligation is rated by only one NRSRO. Such banks
and security dealers are not guarantors of the debt obligations represented by
the loan participation interests, and therefore are not responsible for
satisfying such debt obligations in the event of default. Additionally, such
banks and securities dealers act merely as facilitators, with regard to
repayment by the issuer, with no authority to direct or control repayment. The
Money Reserve Fund will attempt to ensure that there is a readily available
market for all of the loan participation interests. The Money Reserve Fund's
investments in loan participation interests for which there is not a readily
available market are considered to be investments in illiquid securities.
Each Fund has adopted an investment policy that prohibits each of the
Funds from having more than 10% of its total assets invested in illiquid
securities (including restricted securities, repurchase agreements maturing in
more than seven days, time deposits without demand features having a stated
maturity greater than seven days, and participation interests and funding
agreements without demand features, for which there is not a readily available
market).
The Money Fund, but not the Tax-Exempt Fund, may maintain time deposits in
and invest in U.S. dollar denominated certificates of deposit issued by foreign
banks and foreign branches of U.S. banks.
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The Fund limits investments in foreign bank obligations to U.S. dollar
denominated obligations of foreign banks which have more than $10 billion in
assets, have branches or agencies in the U.S., and meet other criteria
established by the board of trustees. Investments in foreign securities involve
special considerations. There is generally less publicly available information
about foreign issuers since many foreign countries do not have the same
disclosure and reporting requirements as are imposed by the U.S. securities
laws. Moreover, foreign issuers are generally not bound by uniform accounting
and auditing and financial reporting requirements and standards of practice
comparable to those applicable to domestic issuers. Such investments may also
entail the risks of possible imposition of dividend withholding or confiscatory
taxes, possible currency blockage or transfer restrictions, expropriation,
nationalization or other adverse political or economic developments, and the
difficulty of enforcing obligations in other countries.
The Money Fund may also invest in bankers' acceptances, time deposits and
certificates of deposit of U.S. branches of foreign banks and foreign branches
of U.S. banks. Investments in instruments of U.S. branches of foreign banks will
be made only with branches that are subject to the same regulations as U.S.
banks. Investments in instruments issued by a foreign branch of a U.S. bank will
be made only if the investment risk associated with such investment is the same
as that involving an investment in instruments issued by the U.S. parent, with
the U.S. parent unconditionally liable in the event that the foreign branch
failed to pay on the investment for any reason.
Each Fund may purchase securities on a "when-issued" basis, with payment
and delivery to be made at a later date, generally within one month, but in no
event later than 45 days. The price and yield are normally fixed on the date of
the purchase commitment, and the value of the security is thereafter reflected
in the applicable Fund's net asset value computations. During the period between
purchase and settlement, no payment is made by the Fund and no interest accrues
to the Fund. At the time of settlement, the market value of the security may be
more or less than the purchase price. Each Fund will maintain, at all times, a
segregated account holding cash or liquid debt securities in an amount equal to
the aggregate amount due on settlement date for all "when-issued" transactions.
Any securities in such segregated account will be marked to market on a daily
basis. Such segregated securities either will mature or, if necessary, be sold
on or before the settlement date. The Funds will not invest more than 10% of
their respective assets in "when issued" securities.
The Money Fund may also invest in funding agreements issued by domestic
insurance companies. Such funding agreements will only be purchased from
insurance companies which have outstanding an issue of long-term debt securities
rated AAA or AA by S&P, or Aaa or Aa by Moody's. In all cases, the Fund will
attempt to obtain the right to demand payment, on not more than seven days'
notice, for all or any part of the amount subject to the funding agreement, plus
accrued interest. The Fund intends to execute its right to demand payment only
as needed to provide liquidity to meet redemptions, or to maintain a high
quality investment portfolio. The Fund's investments in funding agreements that
do not have this demand feature, or for which there is not a readily available
market, are considered to be investments in illiquid securities.
<PAGE>
Diversification. Since the Trust is a diversified investment company under
the Investment Company Act of 1940, it must have at least 75% of the value of
the total assets of each Fund represented by a combination of cash and cash
items, government securities, securities of other investment companies and other
securities which represent, in the case of any one issuer, no more than 5% of
the value of each Fund's total assets. Moreover, since the Trust values its
portfolio securities under the amortized cost valuation method, these
diversification requirements are applied to 100% of the Money Reserve Fund's
total assets for all securities purchased after June 1, 1991. The Trust may not
change from a diversified to a non-diversified investment company without the
approval of a majority of each affected Fund's outstanding voting securities,
with "majority" defined as described under "Investment Restrictions."
Portfolio Securities Loans. The Trust, on behalf of each of the Funds, may
lend limited amounts of its portfolio securities (not to exceed 20% of a
particular Fund's total assets) to broker-dealers or other institutional
investors. While there may be delays in recovery of loaned securities or even a
loss of rights in collateral should the borrower fail financially, loans will be
made only to firms deemed by the Adviser to be of good standing and will not be
made unless, in the judgment of the Adviser, the consideration to be earned from
such loans would justify the risk. The Adviser will evaluate the
creditworthiness of such borrowers in accordance with procedures adopted and
monitored by the Trustees of the Trust. It is expected that the Trust, on behalf
of the applicable Fund, will use the cash portions of loan collateral to invest
in short-term income producing securities for the Fund's account and that the
Trust may share some of the income from these investments with the borrower. See
"Portfolio Securities Loans" at Appendix A to this Prospectus.
For an additional discussion of each Fund's fundamental
investment policies, see "Investment Restrictions."
General. No assurance is or can be given that any Fund will accomplish its
investment objective, as there is some degree of uncertainty in every
investment. An increase in interest rates will generally reduce the value of
portfolio investments in the Funds, and a decline in interest rates will
generally increase the value of each Fund's portfolio investments.
INVESTMENT RESTRICTIONS
The Trust, on behalf of each of the Funds, has adopted the following
investment restrictions, all of which are fundamental policies and may not be
changed without the approval of the holders of a majority of the Trust's
outstanding voting securities, or if the policy relates only to a specific Fund,
that Fund's outstanding voting securities (which in this Prospectus means, as to
the Trust or each Fund (as applicable), the vote of the lesser of (i) 67% or
more of the voting securities present at a meeting, if the holders of more than
50% of the outstanding voting securities are present or represented by proxy, or
(ii) more than 50% of the outstanding voting securities). The Trust, on behalf
of each of the Funds, may not:
(1) Invest in the securities of issuers (excluding (i) municipal obligations
for the Tax-Exempt Fund only, (ii) bankers' acceptances, time deposits and
certificates of deposit of
<PAGE>
domestic branches of U.S. banks and, as to the Money Fund only, U.S.
branches of foreign banks and foreign branches of U.S. banks, provided
that the U.S. branches are subject to sufficient regulation by government
bodies that they can be considered U.S. banks, and the obligations of the
foreign branches qualify as unconditional obligations of the U.S. parent,
and (iii) U.S. Government obligations) conducting their principal business
activity in the same industry, if immediately after such investment the
value of a Fund's investments in such industry would represent 25% or more
of the value of such Fund's total assets. It should be noted that from
time to time, the Tax-Exempt Fund may invest more than 25% of the value of
its total assets in industrial development bonds which, although issued by
industrial development authorities, may be backed only by the assets and
revenues of the non-governmental users. The Tax-Exempt Fund may invest
more than 25% of the value of its total assets in municipal obligations
which are related in such a way that an economic business or political
development or change affecting one such security also would affect the
other securities; for example, securities the interest upon which is paid
from revenues of similar types of projects, or securities whose issuers
are located in the same state.
(2) As to 75% of the assets of the Tax-Exempt Fund, and 100% of the assets of
the Money Reserve Fund, invest in the securities of any one issuer, other
than U.S. Government obligations, if immediately after such investment
more than 5% of the value of a Fund's total assets, taken at market value,
would be invested in such issuer.
(3) Underwrite securities of other issuers, except insofar as it may
technically be deemed an "underwriter" under the Securities Act of 1933,
as amended, in connection with the disposition of a Fund's portfolio
securities.
(4) Invest in companies for the purpose of exercising control or
management.
(5) Issue any class of senior securities or borrow money, except
borrowings from banks for temporary or emergency purposes not
in excess of 10% of the value of a Fund's net assets (not
including the amount borrowed) at the time the money is
borrowed. The Funds are permitted to borrow money only for
the purpose of meeting redemption requests which might
otherwise require the untimely disposition of securities.
Borrowing is allowed as long as the cost of borrowing is less
than the income which would be lost should securities be sold
to meet the redemption requests. While in a borrowed position
(including reverse repurchase agreements), the Funds may not
make purchases of securities. The Funds may enter into
reverse repurchase agreements only for the purpose of
obtaining funds necessary for meeting redemption requests.
(6) Mortgage, pledge, hypothecate or in any manner transfer as security for
indebtedness any securities owned or held except to secure funds borrowed
and then only to an extent not greater than 10% of the value of the
applicable Fund's total assets.
(7) Make short sales of securities or maintain a short position.
<PAGE>
(8) Purchase securities on margin, except that a Fund may obtain such
short-term credit as may be necessary for the clearance of purchases and
sales of portfolio securities.
(9) Purchase or sell real estate or interests in real estate.
(10) Purchase or sell commodities or commodity contracts.
(11) Make loans to other persons, provided that a Fund may purchase debt
obligations consistent with its investment objectives and policies, may
lend limited amounts (not to exceed 20% of its total assets) of its
portfolio securities to broker-dealers or other institutional investors,
and may enter into repurchase agreements.
(12) Purchase securities of other investment companies except (i)
in connection with a merger, consolidation, acquisition or
reorganization, or (ii) by purchase in the open market of
securities of open-end investment companies involving only
customary brokers' commissions and only if immediately
thereafter (i) no more than 3% of the voting securities of any
one investment company are owned by a Fund, (ii) no more than
5% of the value of the total assets of a Fund would be
invested in any one investment company, and (iii) no more than
10% of the value of the total assets of a Fund would be
invested in the securities of such investment companies.
Subject to these conditions, the Funds intend to invest only
in no-load money market funds not advised by the Adviser or
any company affiliated with the adviser which meet the
requirements of Rule 2a-7 and which do not incur any
distribution expenses. Investors in the Funds should note
that such no-load money market funds will pay an advisory fee
and incur other operational expenses.
(13) Enter into repurchase agreements if more than 10% of the
applicable Fund's net assets will be invested in repurchase
agreements and in participation interests without demand
features, time deposits having a stated maturity greater than
seven days, securities having legal or contractual
restrictions on resale, securities for which there is no
readily available market, or in other illiquid securities.
The term "illiquid securities" includes any security which
cannot be disposed of promptly and in the ordinary course of
business without taking a reduced price. A security is
considered illiquid if a Fund cannot receive the amount at
which it values the instrument within seven days.
Additional investment restrictions adopted by the Trust on behalf of the
Funds and which may be changed by the Trustees at their discretion provide that
the Trust, on behalf of each of the Funds, may not:
(1) Write, purchase or sell puts, calls, straddles, spreads or
combinations thereof. However, in order to enhance the
liquidity of a municipal obligation, the Tax-Exempt Fund may
acquire Standby Commitments. See "Investment Objectives and
Policies."
(2) Purchase or sell interests in oil, gas or other mineral leases or
exploration or development programs. A Fund, however, may purchase or sell
securities issued by entities which invest in such interests.
<PAGE>
(3) Invest more than 5% of a Fund's total assets in securities of companies
having a record, together with predecessors, of less than three years of
continuous operation.
(4) Purchase or sell warrants.
(5) Purchase or retain the securities of any issuer if any individual officers
and trustees/directors of the Trust, the Adviser, or any subsidiary
thereof owns individually more than 0.5% of the securities of that issuer
and if all such officers and trustees/directors together own more than 5%
of the securities of that issuer.
(6) Engage in arbitrage transactions.
THE INVESTMENT ADVISER
The investment adviser to the Trust is INVESCO Capital Management, Inc., a
Delaware corporation (sometimes referred to as the "Adviser"), having its
principal office at 1315 Peachtree Street, N.E., Atlanta, Georgia 30309. The
Adviser is an indirect subsidiary of INVESCO PLC, an English public limited
company which is a global investment manager. The Adviser also has an advisory
office in Coral Gables, Florida and a marketing and client service office in San
Francisco.
The Adviser is the sponsor and will provide general investment advice and
portfolio management to the Trust and the Funds. The Adviser currently manages
in excess of $28.0 billion of assets for its customers, and it believes it has
one of the nation's largest discretionary portfolios of tax-exempt accounts
(such as pension and profit-sharing funds for corporations and state and local
governments). In addition, the Adviser furnishes investment advice to the
following other investment companies: INVESCO Value Trust, INVESCO Variable
Investment Funds, Inc.-Total Return Portfolio, The Target Portfolio Trust-Large
Capitalization Value Portfolio, The Chaconia Growth and Income Fund and EBI
Funds, Inc. The Adviser furnishes investment advice to a total of six investment
companies, consisting of 17 different portfolios. Certain customers of the
Adviser may have similar investment objectives to those of particular mutual
funds. Portfolios are supervised by investment managers who utilize the
Adviser's facilities for investment research and analysis, review of current
economic conditions and trends, and consideration of long-range investment
policy matters.
Under its Investment Advisory Agreement (the "Agreement") with the Trust,
the Adviser, subject to the supervision of the Trustees of the Trust, and in
conformance with each Fund's stated policies, is to manage the investment
operations and portfolios of the Funds. In this regard, it will be the
responsibility of the Adviser not only to make investment decisions for the
Funds, but also to place the purchase and sale orders for the portfolio
transactions of the Funds. (See Statement of Additional Information under
"Brokerage and Portfolio Transactions.") The Adviser is also responsible for
furnishing to the Trust, at the Adviser's expense, the services of persons
believed to be competent to perform all executive and other administrative
functions required by the Trust to conduct its business effectively, as well as
the offices, equipment and other facilities necessary for its operations. Such
functions include the maintenance of the Trust's accounts and records, and the
preparation of all requisite corporate documents such as tax returns and reports
to the Securities and Exchange Commission
<PAGE>
("SEC") and shareholders.
Under the Agreement, the Adviser is responsible for the payment of all of
the Funds' expenses, other than payment of advisory fees, taxes, interests and
brokerage commissions. Such expenses include, without limitation, organizational
expenses, compensation of officers, trustees and employees, legal and auditing
expenses, the fees and expenses of the Trust's custodian and transfer agent, and
the expenses of printing and mailing reports and notices to Trust shareholders.
For the services to be rendered and the expenses to be assumed by the Adviser
under the Agreement, the Trust will pay to the Adviser an advisory fee which
will be computed daily and paid as of the last day of each month on the basis of
each Fund's daily net asset value, using for each daily calculation the most
recently determined net asset value of the Funds. (See "Computation of Net Asset
Value.") On an annual basis, the advisory fee paid by each Fund is equal to
0.25% of the average daily net asset value of the applicable Fund's net assets.
For additional information concerning the Agreement, see Statement of Additional
Information under "The Advisory Agreement."
The following individual serves as portfolio manager for the Funds and is
primarily responsible for the day-to-day management of the Fund's portfolios:
Money Market Reserve Fund and
Tax-Exempt Reserve Fund
George S. Robinson Portfolio manager of the Money Market
Reserve Fund and Tax-Exempt Reserve
Fund since 1988; formerly (1986 to
1987) Vice President of Citicorp
Investment Bank; began investment
career in 1965.
THE DISTRIBUTOR
INVESCO Services, Inc., the Trust's distributor (the "Distributor"), a
Georgia corporation, is the principal underwriter and distributor of the shares
of the Funds under a Distribution Agreement dated as of December 30, 1988. All
of the Distributor's outstanding shares of voting stock are owned by the
Adviser. The Distributor is also the sponsor of, investment adviser to and the
principal underwriter for one investment company consisting of six portfolios.
The Distributor acts as agent upon the receipt of orders from investors. The
Distributor's principal office is located at 1315 Peachtree Street, N.E.,
Atlanta, Georgia 30309.
COMPUTATION OF NET ASSET VALUE
The net asset value per share of each of the Funds is determined daily as
of 11:30 a.m. (New York time) on each day that the New York Stock Exchange is
open for trading and at such other times and/or on such other days as there is
sufficient trading in the portfolio securities of the Fund such that its net
asset value might be affected materially. Net asset value per share is
determined by adding the value of all assets of each Fund, deducting its actual
and accrued liabilities, and dividing by the number of shares outstanding.
Each Fund seeks to maintain a constant net asset value of $1.00 per share
by utilizing the amortized cost method of valuing portfolio securities.
<PAGE>
There can be no assurance that the Funds will be able to maintain a net
asset value of $1.00 per share. Under the amortized cost method of valuation,
securities are valued at cost on the date of purchase. Thereafter, the value of
the security is increased or decreased incrementally each day so that at
maturity any purchase discount or premium is fully amortized and the value of
the security is equal to its principal. As a result of minor shifts in the
market value of a Fund's portfolio securities, the amortized cost method may
result in periods during which the amortized cost value of the securities may be
higher or lower than their market value. This would result in the yield on a
shareholder's investment being higher or lower than that which would be
recognized if the net asset value of a Fund's portfolio was not constant and was
permitted to fluctuate with the market value of its portfolio securities. It is
believed that any such differences will normally be minimal.
CAPITALIZATION
There are no conversion or preemptive rights in connection with any shares
of the Funds, nor are there cumulative voting rights with respect to the shares
of any such Fund. Each issued and outstanding share of each Fund is entitled to
participate equally in dividends and distributions declared by such Fund, and
upon liquidation or dissolution, in the net assets of such Fund remaining after
satisfaction of outstanding liabilities. The Trust's Declaration of Trust
provides that the obligations and liabilities of a particular Fund are
restricted to the assets of that Fund and do not extend to the assets of the
Trust generally.
All issued and outstanding shares of each Fund will be fully paid and
nonassessable and redeemable at net asset value per share. The issuance of
certificates representing shares of the Trust is at the discretion of the
Trustees.
DISTRIBUTIONS AND TAX INFORMATION
Distributions
The net income of each of the Funds is declared daily. The Funds'
dividends and net realized capital gains, if any, will be reinvested monthly in
additional shares (or fractions thereof) of each applicable Fund pursuant to
each Fund's Automatic Dividend Reinvestment Plan. Such reinvestment will take
place on the last business day of each month. Each shareholder may elect to
terminate his participation in such plan and to receive his distributions in
cash. Shareholders who redeem all of their shares at any time during the month
will be paid all dividends accrued through the date of redemption. Shareholders
who redeem less than all of their shares will be paid the proceeds of the
redemption in cash, and dividends with respect to the redeemed shares will be
reinvested in additional shares (unless the shareholder has elected not to
participate in this plan or has elected to terminate his participation in the
plan). (See "Automatic Dividend Reinvestment Plan.")
Federal Taxes
Each Fund intends to continue to qualify for the special tax treatment
afforded regulated investment companies under Subchapter M of the Internal
Revenue Code, as amended (the "Code"). If a Fund qualifies as a regulated
investment company, it will not be subject to federal income taxes to the
<PAGE>
extent that it distributes its ordinary income and net realized capital gains.
With respect to a shareholder that is exempt from federal income taxation
under Section 401(a) or 501(a) of the Code, the distributions made by a Fund
will not constitute unrelated business taxable income (i.e., taxable income
derived by a tax-exempt entity from any unrelated trade or business regularly
carried on by it) and thus will not be taxable. Under Section 512(b)(1) of the
Code, dividends and capital gains are expressly excluded from unrelated business
taxable income. Consequently, a tax-exempt shareholder will not incur any
federal income tax liability as a result of its participation in a Fund.
With respect to a shareholder that is not exempt from federal income
taxation, all distributions from a Fund, except for distributions of
exempt-interest dividends or return of capital distributions, whether received
in cash or in additional shares of a Fund, will be taxable and must be reported
by the shareholder on its federal income tax return. Shareholders of the Trust
are advised to consult their own tax advisers with respect to these matters.
It is intended that the Tax-Exempt Fund will qualify to pay
exempt-interest dividends pursuant to Section 852(b)(5) of the Code, and
shareholders will be notified in writing of any dividend, or portion thereof,
which represents an exempt-interest dividend. Exempt-interest dividends are
excludable from the gross income of a shareholder for federal income tax
purposes, but may be subject to state and local taxes.
Distributions of exempt-interest dividends derived from interest on
certain private activity bonds are specifically treated as a tax preference item
and may subject corporate shareholders to, or increase their liability under,
the corporate alternative minimum tax and may subject individual shareholders
to, or increase their liability under, the alternative minimum tax for
individuals. In addition, because 75% of the difference between adjusted current
earnings and alternative minimum taxable income, all distributions derived from
interest which is exempt from regular federal income tax are included in
adjusted pre-tax book income and may subject corporate shareholders to, or
increase their liability under, the corporate alternative minimum tax.
Information concerning the status of a Fund's distributions for federal
income tax purposes will be mailed to shareholders annually. Such distributions,
including capital gains distributions, may be subject to state and local taxes.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations presently in effect, and is
qualified in its entirety by reference thereto. The Code and these Regulations
are subject to change by legislative or administrative action. For further
discussion of the tax consequences of becoming a shareholder of the Trust, see
Statement of Additional Information under "Tax Information." Shareholders should
consult with their tax advisors concerning the tax consequences of an investment
in the Funds.
Automatic Dividend Reinvestment Plan
For the convenience of the shareholders and to permit shareholders to
<PAGE>
increase their shareholdings in the Funds in which they have invested, the
Fund's transfer agent, INVESCO Funds Group, Inc., ("INVESCO"), is automatically
appointed by the investors to receive all dividends and capital gains
distributions of the respective Funds and to reinvest them on their payment
dates in shares (or fractions thereof) of the Fund at the net asset value per
share next determined after reinvestment.
Shareholders may, however, elect not to participate or to terminate their
participation at any time without penalty in the Automatic Dividend Reinvestment
Plan by notifying INVESCO in writing at the time of investment (for new
investments), or at least 15 days prior to the desired date of termination (for
existing participants). Shareholders may rejoin the plan by notifying the Fund's
transfer agent in writing at least 15 days prior to the payment date on which
such shareholder wishes to rejoin the plan.
Upon termination of a shareholder's participation in the Automatic
Dividend Reinvestment Plan, a check for the market value of any fractional
interest will, at the request of the shareholder, be sent to the shareholder.
All costs of the Automatic Dividend Reinvestment Plan, including those of
registration under applicable securities laws, if any, will be borne by the
Adviser.
HOW TO BUY FUND SHARES
Shares of the Funds are sold at the net asset value per share next
determined after the receipt of the investor's purchase order and payment in
"good funds," as described below. No sales charge is imposed upon the purchase
of shares.
The minimum initial purchase of shares required by the Trust is
$1,000,000. Subscribers will be given credit for amounts that they have invested
in any of the Funds. Subsequent purchases may be made in amounts of $100,000 or
more. The Trustees, acting through the Distributor, reserve the right to reduce
or to waive the minimum purchase requirements in certain cases -- such as
investments involving investors which are affiliated with one another (such as
separate employee benefit plans sponsored by the same employer or separate
companies under common control, for example a parent company and its
subsidiaries or two or more subsidiaries of the same parent company) or where
additional investments are expected to be made on a regular basis in amounts
sufficient to meet the minimum requirement within a reasonable period of time
after the initial investment. The Trustees, acting through the Distributor, also
reserve the right to reject any subscription in whole or in part for any reason
at the time that the subscription is first received. The Trust offers its shares
on a continuous basis; however, the Trust may terminate the continuous offering
of its shares at any time in the discretion of the Trustees.
Following receipt by the transfer agent, INVESCO (sometimes referred to as
the "Transfer Agent"), of a proper purchase order and good funds ("good funds"
means cashier's, certified, personal or federal funds check or wire transfer, as
described below), the investor will be credited with the number of full and
fractional shares of the stated Fund purchased with the subscription amount.
Checks must be made payable to INVESCO Treasurer's Series Trust, and must
include the name of the desired Fund. Purchase orders, for shares of the Funds
should be forwarded to INVESCO Treasurer's Series Trust, P.O. Box 173710,
<PAGE>
Denver, Colorado 80217-3710. Orders sent by overnight courier, including
Express Mail, should be sent to the street address, not Post Office Box, of
INVESCO Funds Group, Inc., 7800 E. Union Avenue, Denver, Colorado 80237. A
confirmation of the investment will be mailed to the investor.
Additional purchase applications are available from the Distributor.
Investors may call INVESCO Services, Inc., for assistance in completing the
required application and any other authorization forms. The toll free telephone
number (except for Georgia) is 1-800-241-5477. In Georgia, call 404-892-0896.
Investors may also arrange to acquire shares through broker-dealers other
than the Distributor. Such broker-dealers, who must be members of the NASD, may
charge investors a reasonable handling fee. The services to be provided and the
applicable fees are established by each broker-dealer acting independently from
the Trust. Such broker-dealers have the responsibility of promptly transferring
investors' purchase orders and funds to the Transfer Agent and custodian,
respectively. Shares acquired through such broker-dealers will be purchased at
the applicable Fund's net asset value per share next determined after the
receipt by the Fund's transfer agent of a proper purchase order and good funds.
Neither the Distributor nor the Trust receives any part of such handling fees
when charged and such handling fees can be avoided by investing directly with
the Trust through the Distributor.
Purchase by Wire
Investors may purchase shares of the Funds by transmitting Federal funds
by bank wire to United Missouri Bank of Kansas City, N.A., ABA Routing
#1010-0069-5, Wire text: credit to account 9870287056, FBO INVESCO Funds for
further credit to (Fund name, account # and $ amount), Treasurer's Money Market
Reserve Fund UMB #740115001, or Treasurer's Tax-Exempt Reserve Fund UMB
#740116009. Instructions for new accounts should specify INVESCO Treasurer's
Series Trust, the name of the desired Fund and should include the name, address
and IRS identification number, if applicable, of each person in whose name the
shares are to be registered. Existing shareholders need only to specify INVESCO
Treasurer's Series Trust, the name of the desired Fund and applicable account
number. The required purchase application or additional shares purchase
application should be forwarded to the Distributor (INVESCO Services, Inc.).
Federal funds transmitted by bank wire to the United Missouri Bank of Kansas
City, N.A., and received prior to 11:30 a.m. (New York time), become available
to the Trust and are invested that day. Federal funds transmitted by bank wire
and received after 11:30 a.m. (New York time) will be available to and deemed
received and invested by the Trust on the next business day. The Trust is not
responsible for delays in any wire transmission.
Exchange Privilege
Shareholders in either of the Funds may exchange shares of their
respective Fund for shares of the other Fund. There is no charge for such
exchanges. Investors should consider the difference in the investment objectives
and portfolio compositions of such Funds, and should be aware that the exchange
privilege may only be available in those states where exchanges may legally be
made, which will require that the shares being acquired are registered for sale
in the shareholder's state of residence.
<PAGE>
An exchange request may be given in writing or by telephone to the
Transfer Agent, and must comply with the requirements for a redemption. (See
"Redemption of Shares.") If the exchange request is in proper order, the
exchange will be based on the respective net asset values of the shares involved
which is next determined after the request is received. The exchange of shares
of one of the Funds for shares of another Fund is treated for federal income tax
purposes as a sale of the shares given in exchange and an investor (other than a
tax-exempt investor) may, therefore, realize a taxable gain or loss. By signing
the Application to Purchase Shares in the Funds, the investor has agreed to
release the Funds, INVESCO, and their affiliates from any and all liability for
acts or omissions done in good faith under the authorizations contained in the
application, including their possibly effecting fraudulent exchange
transactions. The SEC staff currently has under review the propriety of such
releases from liability for effecting fraudulent exchange transactions. The
Trust reserves the right to modify or terminate the exchange privilege at any
time.
Purchase by Telephone Orders
The purchase of shares of the Funds can be expedited by placing telephone
orders, subject to the minimum share purchase requirements currently in effect.
Shares purchased through telephone orders will be issued at the next determined
net asset value after receipt of an investor's telephone instructions. Since the
Funds currently determine their net asset values at 11:30 a.m. (New York time),
investors placing telephone orders for Fund shares that are received prior to
that time will have shares purchased for their account as of that day. Investors
placing telephone orders that are received after that time will have Fund shares
purchased for their accounts as of the next business day. All payments for
telephone orders must be received by the Funds' custodian, the United Missouri
Bank of Kansas City, N.A., in "federal funds" (defined as a federal funds check
or wire transfer in proper form) by the close of business on the business day
that shares are purchased for the investor's account or the order will be
cancelled. In the event of such cancellation, the purchaser will be held
responsible for any decline in the value of the shares. INVESCO Services, Inc.
has agreed to indemnify the Funds for any losses resulting from such
cancellations.
REDEMPTION OF SHARES
A shareholder wishing to redeem all or any portion of his shares may do so
by giving notice of redemption directly to or through any registered securities
dealer to the Distributor or to the Transfer Agent, in the manner set forth
below. The redemption price is the net asset value per share next determined
after the initial receipt by either the registered securities dealer, the
Distributor or the Transfer Agent of proper notice of redemption. (See "How to
Buy Fund Shares.") Each Fund seeks to maintain a constant net asset value of
$1.00 per share (see "Computation of Net Asset Value"). Securities dealers have
the responsibility of promptly transmitting such redemption notices to the
Distributor or the Transfer Agent. Such securities dealers will only assist
investors in redeeming their shares from the Funds, since no securities dealer
is authorized to repurchase such shares on behalf of the Funds.
If a shareholder holds certificates for the shares to be,redeemed, these
must simultaneously be surrendered, properly endorsed with signature(s)
<PAGE>
guaranteed by a member firm of a domestic stock exchange, a U.S. commercial
bank, a foreign correspondent of a U.S. commercial bank, or a trust company, and
the certificates must be forwarded to INVESCO Treasurer's Series Trust, P.O. Box
173710, Denver, Colorado 80217-3710. Redemption requests sent by overnight
courier, including Express Mail, should be sent to the street address, not Post
Office Box, of INVESCO Funds Group, Inc., 7800 E. Union Avenue, Denver, Colorado
80237. The signature on any request for redemption of shares not represented by
certificates, or on any stock power in lieu thereof, must be similarly
guaranteed. In each case, the signature or signatures must correspond to the
name or names in which the account is registered. The signature guarantee is to
prevent fraud and is for the protection of the investor as a shareholder.
Shareholders should be advised that if notice of redemption is received
without information thereon sufficient to determine the applicable Fund or the
value or number of shares involved, no redemption will be effected until such
information becomes available.
If a redemption request is received by 11:30 a.m. (New York time),
proceeds will normally be wired that day, if requested by the shareholder, but
no dividend will be earned on the redeemed shares on that day. Proceeds of
redemption requests received after 11:30 a.m. (New York time) will be based on
the net asset value next determined (which is 11:30 a.m. of the next day that
net asset value per share is determined), will normally be sent on the day such
net asset value per share is determined, but in any event within 7 days, and
will not earn a dividend for that day . Although each Fund attempts to maintain
a constant net asset value per share of $1.00, the value of shares of a Fund on
redemption may be more or less than the shareholder's cost, depending upon the
value of the Fund's assets at the time.
Redemption by Check
Shareholders in the Funds may redeem shares by check in an amount not less
than $100,000. At the shareholder's request, the Fund's custodian will provide
the shareholder with checks drawn on the account maintained for that purpose on
behalf of the Funds by the custodian. These checks can be made payable to the
order of any person and the payee of the check may cash or deposit the check in
the same manner as any check drawn on a bank. When such a check is presented for
payment, the applicable Fund will redeem a sufficient number of full and
fractional shares in the shareholder's account to cover the amount of the check.
Shareholders earn dividends on the amounts being redeemed by check until such
time as such check clears the bank. If the amount of the check is greater than
the value of the shares held in the shareholder's account, the check will be
returned, and the shareholder may be subject to extra charges (presently
estimated to be approximately $15.00 per returned check). The Funds and the
custodian each reserves the right at any time to suspend the procedure
permitting redemption by check.
Redemption by Telephone
Shareholders of the Fund may elect to redeem shares of the Fund by
telephone. Such redemptions are effected by calling the Distributor at
404-892-0896 in Georgia or 800-241-5477, outside of Georgia. The proceeds from a
redemption by telephone will promptly be forwarded according to the
<PAGE>
shareholder's instructions. In electing to use the telephone redemption, the
investor authorizes the Distributor to act on telephone instructions from any
person representing himself to be the investor, and whom the Distributor
reasonably believes to be genuine. The Distributor's and Transfer Agent's
records of such instructions are binding. By signing the new account
Application, a Telephone Transaction Authorization Form, or otherwise utilizing
telephone exchange privileges, the investor has agreed that the Funds, INVESCO,
and their affiliates will not be liable for following instructions communicated
by telephone that they reasonably believe to be genuine. The Funds employ
procedures, which they believe are reasonable, designed to confirm that
telephone instructions are genuine. These may include recording telephone
instructions and providing written confirmation of transactions initiated by
telephone. As a result of this policy, the investor may bear the risk of any
loss due to unauthorized or fraudulent instructions; provided, however, that if
a Fund fails to follow these or other reasonable procedures, the Fund may be
liable. The proceeds of shares redeemed by telephone must be in an amount not
less than $100,000. Investors should be aware that a telephone redemption may be
difficult to implement during periods of drastic economic or market changes.
Should redeeming shareholders be unable to implement a telephone redemption
during such periods, or at any other time, they may give appropriate notice of
redemption to the distributor by mail. The Trust reserves the right to modify or
terminate the telephone redemption privilege at any time.
General
Shareholders subject to federal income taxation should note that if a loss
has been realized on the sale of shares of a Fund, the loss may be disallowed
for tax purposes if shares of the same Fund are purchased within 30 days before
or after the sale.
Under the Investment Company Act of 1940, the date of payment for redeemed
shares may be postponed, or the Trust's obligation to redeem its shares may be
suspended (1) for any period during which trading on the New York Stock Exchange
is restricted (as determined by the SEC), (2) for any period during which an
emergency exists (as determined by the SEC) which makes it impracticable for the
Trust to dispose of its securities or to determine the value of a Fund's net
assets, or (3) for such other periods as the SEC may, by order, permit for the
protection of shareholders.
If the Trustees determine that it is in the best interest of a Fund, a
Fund has the right to redeem upon prior written notice, at the then current net
asset value per share, all shareholder accounts which have dropped below a
minimum level ($500,000 or less) as a result of redemption of such Fund's shares
(but not as a result of any reduction in market value of such shares). An
investor will have 60 days to increase the shares in his account to the minimum
level in order to avoid any such involuntary redemption.
SHAREHOLDER REPORTS
The Trust will issue to each of the Fund's shareholders semiannual and
annual reports containing each Fund's financial statements, including selected
per share data and ratios and a schedule of each Fund's portfolio securities.
<PAGE>
The federal income tax status of shareholder distributions will also be
reported to shareholders after the end of each year.
Shareholders having any questions concerning the Trust or any of the Funds
may call the Distributor. Outside of Georgia, the toll-free telephone number is
1-800-241-5477. In Georgia, the telephone number is 404-892-0896.
MISCELLANEOUS
As a Massachusetts business trust, the Trust is not required to hold
annual shareholder meetings. However, special meetings of shareholders for
action by shareholder vote may be called for purposes such as electing or
removing trustees, changing fundamental policies, approving an advisory contract
or as may be requested in writing by the holders of at least 10% of the
outstanding shares of the Fund or as may be required by applicable law or the
Fund's Articles of Incorporation. Additionally, the Trust will assist
shareholders in communicating with other shareholders as required by the
Investment Company Act of 1940. Each Trust shareholder receives one vote for
each share owned.
United Missouri Bank of Kansas City, N.A. is the custodian of the
portfolio securities and cash of the Funds. The custodian may use the services
of foreign sub-custodians. Such foreign sub-custodians will be selected in
accordance with the provisions of Rule 17f-5 (or any successor rule) promulgated
under the 1940 Act.
The Transfer Agent will maintain each shareholder's account, as to each
Fund, and furnish the shareholder with written information concerning all
transactions in the account, including information needed for tax records. The
Trust has the right to appoint a successor Transfer Agent. INVESCO also serves
as the Dividend Disbursement and Reinvestment Agent and Redemption Agent of the
Funds. INVESCO does not perform any investment management functions for the
Trust, but performs certain administrative services on its behalf pursuant to an
Administrative Service Agreement (see information below). The Adviser pays the
Transfer Agent an annual fee of $50.00 per shareholder account, per Fund, with a
minimum annual fee of $5,000 per Fund. For the fiscal years ended December 31,
1994, 1993, and 1992, the Trust's Funds paid no transfer agency fees to INVESCO,
as those expenses were absorbed and paid by the Adviser, pursuant to its
Advisory Agreement with the Trust. The principal address of INVESCO is 7800 East
Union Avenue, Denver, Colorado 80237.
The Declaration of Trust pursuant to which the Trust is organized contains
an express disclaimer of shareholder liability for acts or obligations of the
Trust and requires that notice of such disclaimer be given in each instrument
entered into or executed by the Trust. The Declaration of Trust also provides
for indemnification out of the Trust's property for any shareholder held
personally liable for any Trust obligation. Thus, the risk of a shareholder
being personally liable as a partner for obligations of the Trust is limited to
the unlikely circumstance in which the Trust itself would be unable to meet its
obligations.
The Trust has entered into an Administrative Services Agreement (the
"Administrative Agreement"), dated as of January 23, 1991, with INVESCO, which
was approved by the Trust's Board of Trustees, including all of the independent
trustees, on January 22, 1991. Pursuant to the Administrative Agreement,
<PAGE>
INVESCO will perform certain administrative and internal accounting
services, including, without limitation, maintaining general ledger and capital
stock accounts, preparing a daily trial balance, calculating net asset value
daily, and providing selected general ledger reports. For such services, the
Adviser pays INVESCO a fee consisting of a base fee of $10,000 per year, per
Fund, plus an additional incremental fee per Fund computed at an annual rate of
0.015% per annum of the net asset value of the applicable Fund. For the fiscal
year ended December 31, 1994, the Funds paid no administrative services fees to
INVESCO, as those expenses were absorbed and paid by the Adviser, pursuant to
its Advisory Agreement with the Trust.
This Prospectus omits certain information contained in the registration
statement which the Trust has filed with the Securities and Exchange Commission
under the Securities Act of 1933 and the Investment Company Act of 1940, and
reference is made to that registration statement and to the exhibits thereto for
further information with respect to the Trust and the shares offered hereby.
Copies of such registration statement, including exhibits, may be obtained from
the Commission's principal office at Washington, D.C., upon payment of the fee
prescribed by the Commission.
LEGAL OPINIONS
The legality of the securities offered by this Prospectus will be passed
upon for the Trust by Kirkpatrick & Lockhart, 1800 M Street NW, Washington, D.C.
20036.
<PAGE>
APPENDIX A
Some of the terms used in the Prospectus and Statement of Additional
Information are described below.
Bank obligations include certificates of deposit which are negotiable
certificates evidencing the indebtedness of a commercial bank to repay funds
deposited with it for a definite period of time (usually from 14 days to one
year) at a stated interest rate.
Bankers' acceptances are credit instruments evidencing the obligation of a
bank to pay a draft which has been drawn on it by a customer. These instruments
reflect the obligation both of the bank and of the drawer to pay the face amount
of the instrument upon maturity.
Bond Anticipation Notes normally are issued to provide interim financing
until long-term financing can be arranged. The long-term bonds then provide the
money for the repayment of the Notes.
Bonds: Municipal Bonds may be issued to raise money for various public
purposes -- like constructing public facilities and making loans to public
institutions. Certain types of municipal bonds, such as certain project notes,
are backed by the full faith and credit of the United States. Certain types of
municipal bonds are issued to obtain funding for privately operated facilities.
The two principal classifications of municipal bonds are "general obligation"
and "revenue" bonds. General obligation bonds are backed by the taxing power of
the issuing municipality and are considered the safest type of municipal bond.
Issuers of general obligation bonds include states, counties, cities, towns and
regional districts. The proceeds of these obligations are used to fund a wide
range of public projects including the construction or improvement of schools,
highways and roads, water and sewer systems and a variety of other public
purposes. The basic security of general obligation bonds is the issuer's pledge
of its faith, credit, and taxing power for the payment of principal and
interest. Revenue bonds are backed by the net revenues derived from a particular
facility or group of facilities of a municipality or, in some cases, from the
proceeds of a special excise or other specific revenue source. Although the
principal security behind these bonds varies widely, many provide additional
security in the form of a debt service reserve fund whose monies may also be
used to make principal and interest payments on the issuer's obligations.
Industrial development revenue bonds are a specific type of revenue bond backed
by the credit and security of a private user and therefore investments in these
bonds have more potential risk. Although nominally issued by municipal
authorities, industrial development revenue bonds are generally not secured by
the taxing power of the municipality but are secured by the revenues of the
authority derived from payments by the industrial user.
Commercial paper consists of short-term (usually one to 180 days)
unsecured promissory notes issued by corporations in order to finance their
current operations.
Corporate debt obligations are bonds and notes issued by corporations and
other business organizations, including business trusts, in order to finance
their long-term credit needs.
Money Market refers to the marketplace composed of the financial
institutions which handle the purchase and sale of liquid, short-term, high-
<PAGE>
grade debt instruments. The money market is not a single entity, but
consists of numerous separate markets, each of which deals in a different type
of short-term debt instrument. These include U.S. Government securities,
commercial paper, certificates of deposit and bankers' acceptances, which are
generally referred to as money market instruments.
Portfolio Securities Loans: The Trust, on behalf of each of the Funds, may
lend limited amounts of its portfolio securities (not to exceed 20% of a
particular Fund's total assets) to broker-dealers or other institutional
investors. Management of the Trust understands that it is the current view of
the staff of the SEC that the Funds are permitted to engage in loan transactions
only if the following conditions are met: (1) the applicable Fund must receive
100% collateral in the form of cash or cash equivalents, e.g., U.S. Treasury
bills or notes, from the borrower; (2) the borrower must increase the collateral
whenever the market value of the securities (determined on a daily basis) rises
above the level of the collateral; (3) the Trust must be able to terminate the
loan after notice; (4) the applicable Fund must receive reasonable interest on
the loan or a flat fee from the borrower, as well as amounts equivalent to any
dividends, interest or other distributions on the securities loaned and any
increase in market value; (5) the applicable Fund may pay only reasonable
custodian fees in connection with the loan; (6) voting rights on the securities
loaned may pass to the borrower; however, if a material event affecting the
investment occurs, the Trust must be able to terminate the loan and vote proxies
or enter into an alternative arrangement with the borrower to enable the Trust
to vote proxies. Excluding items (1) and (2), these practices may be amended
from time to time as regulatory provisions permit.
Repurchase Agreements: A repurchase agreement is a transaction in which a
Fund purchases a security and simultaneously commits to sell the security to the
seller at an agreed upon price and date (usually not more than seven days) after
the date of purchase. The resale price reflects the purchase price plus an
agreed upon market rate of interest which is unrelated to the coupon rate or
maturity of the purchased security. A Fund's risk is limited to the ability of
the seller to pay the agreed upon amount on the delivery date. In the opinion of
management this risk is not material; if the seller defaults, the underlying
security constitutes collateral for the seller's obligations to pay. This
collateral will be held by the custodian for the Trust's assets. However, in the
absence of compelling legal precedents in this area, there can be no assurance
that the Trust will be able to maintain its rights to such collateral upon
default of the issuer of the repurchase agreement. To the extent that the
proceeds from a sale upon a default in the obligation to repurchase are less
than the repurchase price, the particular Fund would suffer a loss.
Revenue Anticipation Notes are issued in expectation of receipt of other
kinds of revenue, such as federal revenues available under the Federal Revenue
Sharing Program.
Reverse Repurchase Agreements: Transactions where a Fund temporarily
transfers possession of a portfolio security to another party, such as a bank or
broker-dealer, in return for cash, and agrees to buy the security back at a
future date and price. The use of reverse repurchase agreements will create
leverage, which is speculative. Reverse repurchase agreements are borrowings
subject to the Funds' investment restrictions applicable to that activity.
<PAGE>
The Trust will enter into reverse repurchase agreements solely for the purpose
of obtaining funds necessary for meeting redemption requests. The proceeds
received from a reverse repurchase agreement will not be used to purchase
securities for investment purposes.
Short-Term Discount Notes (tax-exempt commercial paper) are promissory
notes issued by municipalities to supplement their cash flow. The ratings A-1
and P-1 are the highest commercial paper ratings assigned by S&P and Moody's,
respectively.
Tax Anticipation Notes are to finance working capital needs of
municipalities and are issued in anticipation of various seasonal tax revenues,
to be payable from these specific future taxes.
Time deposits are non-negotiable deposits maintained in a banking
institution for a specified period of time at a stated interest rate. Time
deposits which may be held by the Funds will not benefit from insurance from the
Federal Deposit Insurance Corporation.
U.S. Government securities are debt securities (including bills, notes,
and bonds) issued by the U.S. Treasury or issued by an agency or instrumentality
of the U.S. Government which is established under the authority of an Act of
Congress. Such agencies or instrumentalities include, but are not limited to,
the Federal National Mortgage Association, Government National Mortgage
Association, the Federal Farm Credit Bank, and the Federal Home Loan Bank.
Although all obligations of agencies, authorities and instrumentalities are not
direct obligations of the U.S. Treasury, payment of the interest and principal
on these obligations is generally backed directly or indirectly by the U.S.
Government. This support can range from the backing of the full faith and credit
of the United States to U.S. Treasury guarantees, or to the backing solely of
the issuing instrumentality itself. In the case of securities not backed by the
full faith and credit of the United States, the investor must look principally
to the agency issuing or guaranteeing the obligation for ultimate repayment, and
may not be able to assert a claim against the United States itself in the event
the agency or instrumentality does not meet its commitments.
Ratings of Municipal and Corporate Debt Obligations
The four highest ratings of Moody's and Standard & Poor's for municipal
and corporate debt obligations are Aaa, Aa, A and Baa and AAA, AA, A and BBB,
respectively.
Moody's. The characteristics of these debt obligations rated
by Moody's are generally as follows:
Aaa -- Bonds which are rated Aaa are judged to be of the best quality.
They carry the smallest degree of investment risk and are generally
referred to as "gilt edge." Interest payments are protected by a large or
by an exceptionally stable margin and principal is secure. While the
various protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position
of such issues.
Aa -- Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high grade bonds. They are rated lower than the best bonds
<PAGE>
because margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there
may be other elements present which make the long-term risks appear
somewhat larger than in Aaa securities. Moody's applies the numerical
modifiers 1, 2 and 3 to the Aa rating classification. The modifier 1
indicates a ranking for the security in the higher end of this rating
category; the modifier 2 indicates a mid- range ranking; and the modifier
3 indicates a ranking in the lower end of this rating category.
A -- Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium grade obligations. Factors giving
security to principal and interest are considered adequate but elements
may be present which suggest a susceptibility to impairment sometime in
the future.
Baa -- Bonds which are rated Baa are considered as medium grade
obligations, i.e., they are neither highly protected nor poorly secured.
Interest payments and principal security appear adequate for the present
but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such bonds
lack outstanding investment characteristics and in fact have speculative
characteristics as well.
Moody's ratings for state and municipal notes and other short-term loans
are designated Moody's Investment Grade ("MIG"). This distinction is in
recognition of the difference between short-term credit and long-term credit. A
short-term rating may also be assigned on an issue having a demand feature. Such
ratings are designated as VMIG. Short-term ratings on issues with demand
features are differentiated by the use of the VMIG symbol to reflect such
characteristics as payment upon demand rather than fixed maturity dates and
payment relying on external liquidity.
MIG 1/VMIG 1 -- Notes and loans bearing this designation are of the best
quality, enjoying strong protection from established cash flows of funds
for their servicing or from established and broad-based access to the
market for refinancing, or both.
MIG 2/VMIG 2 -- Notes and loans bearing this designation are of high
quality, with margins of protection ample although not so large as in the
preceding group.
Standard & Poor's. The characteristics of these debt obligations rated by
Standard & Poor's Ratings Group are generally as follows:
AAA -- This is the highest rating assigned by Standard & Poor's to a debt
obligation and indicates an extremely strong capacity to pay principal and
interest.
AA -- Bonds rated AA also qualify as high quality debt obligations.
Capacity to pay principal and interest is very strong, and in the majority
of instances they differ from AAA issues only in small degree.
A -- Debt rated A has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse effects
<PAGE>
of changes in circumstances and economic conditions than debt in higher
rated categories.
BBB -- Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in higher
rated categories.
Standard & Poor's ratings for short-term notes are as follows:
SP-1 -- Very strong capacity to pay principal and interest.
SP-2 -- Satisfactory capacity to pay principal and interest.
SP-3 -- Speculative capacity to pay principal and interest.
A debt rating is not a recommendation to purchase, sell or hold a
security, inasmuch as it does not comment as to market price or suitability for
a particular investor.
Ratings of Commercial Paper
Description of Moody's commercial paper ratings. Among the factors
considered by Moody's Investors Services, Inc. in assigning commercial paper
ratings are the following: (1) evaluation of the management of the issuer; (2)
economic evaluation of the issuer's industry or industries and an appraisal of
the risks which may be inherent in certain areas; (3) evaluation of the issuer's
products in relation to competition and customer acceptance; (4) liquidity; (5)
amount and quality of long-term debt; (6) trend of earnings over a period of ten
years; (7) financial strength of a parent company and the relationships which
exist with the issuer; and (8) recognition by the management of obligations
which may be present or may arise as a result of public interest questions and
preparations to meet such obligations. Relative differences in strength and
weakness in respect to these criteria would establish a rating of one of three
classifications; P-1 (Highest Quality), P-2 (Higher Quality) or P-3 (High
Quality).
Description of Standard & Poor's commercial paper ratings. A Standard &
Poor's commercial paper rating is a current assessment of the likelihood of
timely payment of debt having an original maturity of no more than 365 days.
Ratings are graded into four categories, ranging from "A" for the highest
quality obligations to "D" for the lowest. The "A" categories are as follows:
A -- Issues assigned this highest rating are regarded as having the
greatest capacity for timely payment. Issues in this category are
delineated with the numbers 1, 2, and 3 to indicate the relative degree of
safety.
A-1 -- This designation indicates that the degree of safety
regarding timely payment is either overwhelming or very strong.
A-2 -- Capacity for timely payment on issues with this designation
is strong. However, the relative degree of safety is not as high as
for issues designated A-1.
<PAGE>
A-3 -- Issues carrying this designation have a satisfactory capacity
for timely payment. They are, however, somewhat more vulnerable to
the adverse effects of changes in circumstances than obligations
carrying the higher designations.
<PAGE>
Investment Adviser
INVESCO Capital Management, Inc.
Distributor
INVESCO Services, Inc.
Transfer Agent
INVESCO Funds Group, Inc.
Custodian
United Missouri Bank of Kansas City, N.A.
Independent Accountants
Price Waterhouse LLP
Denver, Colorado
<PAGE>
PROSPECTUS
INVESCO TREASURER'S SERIES TRUST
INVESCO TREASURER'S MONEY MARKET RESERVE FUND
INVESCO TREASURER'S TAX-EXEMPT RESERVE FUND
April 28, 1995
<PAGE>
INVESCO TREASURER'S SERIES TRUST
INVESCO TREASURER'S MONEY MARKET RESERVE FUND
INVESCO TREASURER'S TAX-EXEMPT RESERVE FUND
7800 East Union Avenue
Denver, Colorado 80237
Telephone: 404/892-0896
800/241-5477
INVESCO Treasurer's Series Trust (the "Trust") is an open-end management
investment company presently consisting of four separate funds, each of which
represents a separate portfolio of investments. This Statement of Additional
Information relates to the INVESCO Treasurer's Money Market Reserve Fund and
INVESCO Treasurer's Tax-Exempt Reserve Fund (the "Funds"), two portfolios which
are designed especially for treasurers and financial officers of corporations,
financial institutions and fiduciary accounts. This Statement of Additional
Information describes the operations of each of the Funds. Each of the Funds has
separate investment objectives and investment policies.
INVESCO CAPITAL MANAGEMENT, INC.
Investment Adviser
INVESCO SERVICES, INC.
Distributor
STATEMENT OF ADDITIONAL INFORMATION
This Statement of Additional Information is not a Prospectus but should be read
in conjunction with the Funds' current Prospectus (dated April 28, 1995). Please
retain this Statement of Additional Information for future reference. The
Prospectus is available from INVESCO Services, Inc., 1315 Peachtree Street,
N.E., Atlanta, Georgia 30309.
April 28, 1995
<PAGE>
TABLE OF CONTENTS
Page
INVESTMENT OBJECTIVES AND POLICIES......................................... 48
OFFICERS AND TRUSTEES...................................................... 49
THE ADVISORY AGREEMENT..................................................... 55
THE DISTRIBUTOR............................................................ 58
TAX INFORMATION............................................................ 58
BROKERAGE AND PORTFOLIO TRANSACTIONS....................................... 61
CALCULATION OF YIELD....................................................... 62
MISCELLANEOUS.............................................................. 63
REPORT OF INDEPENDENT ACCOUNTANTS.......................................... 68
FINANCIAL STATEMENTS....................................................... 69
<PAGE>
INVESTMENT OBJECTIVES AND POLICIES
Reference is made to "Investment Objectives and Policies" in the
Prospectus for a discussion of the investment objectives and policies of the
Funds. In addition, set forth below is certain further information relating to
the Tax-Exempt Fund.
Tax-Exempt Fund
In order to enhance the liquidity, stability or quality of a municipal
obligation, the Tax-Exempt Fund may acquire a right to sell the obligation to
another party at a guaranteed price approximating par value, either on demand or
at specified intervals. The right to sell may form part of the obligation or be
acquired separately by the Tax-Exempt Fund. These rights may be referred to as
demand features, standby commitments or puts, depending on their characteristics
(collectively referred to as "Standby Commitments"), and may involve letters of
credit or other credit support arrangements supplied by domestic or foreign
banks supporting the other party's ability to purchase the obligation from the
Tax-Exempt Fund. In considering whether an obligation meets the Tax-Exempt
Fund's quality standards, the Fund may look to the creditworthiness of the party
providing the right to sell or to the quality of the obligation itself.
These transactions improve portfolio liquidity by making available
same-day settlements on sales of portfolio securities. The Tax-Exempt Fund may
engage in such transactions subject to any limitations contained in the rules
under the Investment Company Act of 1940. A Standby Commitment is a right
acquired by the Fund, when it purchases a municipal obligation from a broker,
dealer or other financial institution ("seller"), to sell up to the same
principal amount of such securities back to the seller, at the Fund's option, at
a specified price. The exercise by the Tax-Exempt Fund of a Standby Commitment
is subject to the ability of the other party to fulfill its contractual
commitment.
Standby Commitments acquired by the Tax-Exempt Fund will have the
following features: (1) they will be in writing and will be physically held by
the Fund's custodian; (2) the Fund's rights to exercise them will be
unconditional and unqualified; (3) they will be entered into only with sellers
which in the Adviser's opinion present a minimal risk of default; (4) although
Standby Commitments will not be transferable, municipal obligations purchased
subject to such commitments may be sold to a third party at any time, even
though the commitment is outstanding; and (5) their exercise price will be (i)
the Fund's acquisition cost (excluding the cost, if any, of the Standby
Commitment) of the municipal obligations which are subject to the commitment
(excluding any accrued interest which the Fund paid on their acquisition), less
any amortized market premium or plus any amortized market or original issue
discount during the period the Fund owned the securities, plus (ii) all interest
accrued on the securities since the last interest payment date.
The Trust, on behalf of the Tax-Exempt Fund, expects that Standby
Commitments generally will be available without the payment of any direct or
indirect consideration. However, if necessary or advisable, the Tax-Exempt Fund
will pay for Standby Commitments, either separately in cash or by paying a
higher price for portfolio securities which are acquired subject to the
commitments.
<PAGE>
It is difficult to evaluate the likelihood of use or the potential benefit
of a Standby Commitment. Therefore, it is expected that the Trustees of the
Trust will determine that Standby Commitments ordinarily have a "fair value" of
zero, regardless of whether any direct or indirect consideration was paid. When
the Tax-Exempt Fund has paid for a Standby Commitment, its cost will be
reflected as unrealized depreciation for the period during which the commitment
is held.
Management of the Trust understands that the Internal Revenue Service (the
"Service") has issued a favorable revenue ruling to the effect that, under
specified circumstances, a registered investment company will be the owner of
tax-exempt municipal obligations acquired subject to a put option. The Service
has also issued private letter rulings to certain taxpayers (which do not serve
as precedent for other taxpayers) to the effect that tax-exempt interest
received by a regulated investment company with respect to such obligations will
be tax-exempt in the hands of such company and may be distributed to
shareholders as exempt-interest dividends. The Service has subsequently
announced that it will not ordinarily issue advance ruling letters as to the
identity of the true owner of property in cases involving the sale of securities
or participation interests therein if the purchaser has the right to cause the
security, or the participation interest therein, to be purchased by either the
seller or a third party. The Tax-Exempt Fund intends to take the position that
it is the owner of any municipal obligations acquired subject to a Standby
Commitment and that tax-exempt interest earned with respect to such municipal
obligations will be tax-exempt in its hands. There is no assurance that Standby
Commitments will be available to the Fund nor has the Fund assumed that such
commitments would continue to be available under all market conditions.
OFFICERS AND TRUSTEES
Listed below are the Trustees and executive officers of the Trust,
together with their principal occupations during the past five years. Each
person whose name and title is followed by an asterisk is an "interested person"
of the Trust within the meaning of the Investment Company Act of 1940, as
amended (the "1940 Act").
CHARLES W. BRADY,*+ Chairman of the Board of Trustees. Chief
Executive Officer and Director of INVESCO PLC, London, England, and
of subsidiaries thereof. Chairman of the Board of the EBI Funds,
Inc., and The Global Health Sciences Fund. Address: 1315
Peachtree Street, N.E. Atlanta, Georgia 30309. Born: May 11,
1935.
VICTOR L. ANDREWS, ** Trustee. Mills Bee Lane Professor of
Banking and Finance and Chairman of the Department of Finance at
Georgia State University, Atlanta, Georgia, since 1968. Since
October 1984, Director of the Center for the Study of Regulated
Industry at Georgia State University; formerly, member of the
faculties of the Harvard Business School and the Sloan School of
Management of MIT and Director of the EBI Funds, Inc. Dr. Andrews
is also a director of The Southeastern Thrift and Bank Fund, Inc.
and The Sheffield Funds, Inc. Address: Department of Finance,
Georgia State University, University Plaza, Atlanta, Georgia
30303-3083. Born: June 23, 1930.
BOB R. BAKER,+** Trustee. President and Chief Executive
<PAGE>
Officer of AMC Cancer Research Center, Denver, Colorado, since
January 1989; until mid-December 1988, Vice Chairman of the Board
of First Columbia Financial Corporation (a financial institution),
Englewood, Colorado. Formerly, Chairman of the Board and Chief
Executive Officer of First Columbia Financial Corporation.
Director of the EBI Funds, Inc. Address: 1775 Sherman Street,
#1000, Denver, Colorado 80203. Born: August 7, 1936.
FRANK M. BISHOP*, Trustee. President and Chief Operating
Officer of INVESCO Inc. since February, 1993; Director of INVESCO
Funds Group, Inc. since March 1993; Director (since February 1993),
Vice President (since December 1991), and Portfolio Manager (since
February 1987), of INVESCO Capital Management, Inc. (and
predecessor firms), Atlanta, Georgia. Address: 1315 Peachtree
Street, N.E., Atlanta, Georgia. Born: December 7, 1943.
LAWRENCE H. BUDNER,# Trustee. Trust Consultant; prior to
June 30, 1987, Senior Vice President and Senior Trust Officer of
InterFirst Bank, Dallas, Texas. Director of the EBI Funds, Inc.
Address: 7608 Glen Albens Circle, Dallas, Texas 75225. Born: July
25, 1930.
DANIEL D. CHABRIS,+# Trustee. Financial Consultant;
Assistant Treasurer of Colt Industries Inc., New York, New York,
from 1966 to 1988. Director of the EBI Funds, Inc. Address: 15
Sterling Road, Armonk, New York 10504. Born: August 1, 1923.
FRED A. DEERING,+# Vice Chairman. Chairman of the Executive
Committee and formerly Chairman of the Board of Security Life of
Denver Insurance Company, Denver, Colorado. Director of NN
Financial, Toronto, Ontario, Canada. Director and Chairman of the
Executive Committee of ING America Life, Life Insurance Company of
Georgia and Southland Life Insurance Company. Vice Chairman of the
EBI Funds, Inc. and Trustee of the Global Health Sciences Fund.
Address: Security Life Center, 1290 Broadway, Denver, Colorado
80203. Born: January 12, 1928.
A. D. FRAZIER, JR.,** Trustee. Mr. Frazier is Chief Operating
Officer of the Atlanta Committee for the Olympic Games. Until
1991, Mr. Frazier was Executive Vice President of the North
American Banking Group of First Chicago Bank. Mr. Frazier is also
Director of the Atlanta Chamber of Commerce and Atlanta Symphony
Orchestra. Address: 250 Williams Street, Suite 6000, Atlanta,
Georgia 30301. Born: June 29, 1944.
KENNETH T. KING,** Trustee. Formerly, Chairman of the Board
of The Capitol Life Insurance Company, Providence Washington
Insurance Company, and Director of numerous subsidiaries thereof in
the U.S. Formerly, Chairman of the Board of The Providence Capitol
Companies in the United Kingdom and Guernsey. Chairman of the
Board of the Symbion Corporation (a high technology company) until
1987. Director of the EBI Funds, Inc. Address: 4080 North
Circulo Manzanillo, Tucson, Arizona 85715. Born: November 16,
1925.
JOHN W. MC INTYRE,# Trustee. Mr. McIntyre is retired. He was
formerly Chairman of the Board and Chief Executive Officer of
Citizens and Southern National Bank in Atlanta, Georgia, positions
he held from May 1986 to December 1991. Prior to that, Mr.
McIntyre was Vice Chairman of the Board of The Citizens and
Southern Corporation and Chairman of the Board and Chief Executive
Officer of The Citizens and Southern Georgia Corp. Address: Seven
<PAGE>
Piedmont Center, Suite 100, Atlanta, Georgia 30305. Born:
September 14, 1930.
GEORGE S. ROBINSON, JR.,+ President. President of the Trust
since its inception. Since January 1, 1987, Mr. Robinson has been
an employee of the Adviser and of the Distributor. From August
1986 through December 1987 he was a Vice President of Citicorp
Investment Bank. For more than five years prior to that time, Mr.
Robinson served in various capacities in the securities industry
including that of Investment Officer of Colonial Life and Accident
Insurance Company. Address: 1315 Peachtree Street, N.E., Atlanta,
Georgia 30309. Born: July 26, 1943.
PENELOPE P. ALEXANDER, Treasurer and Secretary. Treasurer and
Secretary of the Trust since its inception. Prior to their
reorganization into separate series of The EBI Funds, Inc. on
December 22, 1989, Ms. Alexander was Treasurer and Secretary of EBI
Equity, Inc., EBI Income, Inc. and EBI Cash Management, Inc.; with
respect to these positions, which she holds in the EBI Funds, Inc.,
Ms. Alexander has been Treasurer since April 1985 and Secretary
since November 30, 1984. Ms. Alexander is also Secretary of
INVESCO Inc. Since June 1983, Ms. Alexander has been associated
with the Distributor, and since May 1984, with the Adviser.
Address: 1315 Peachtree Street, N.E., Atlanta, Georgia 30309.
Born: December 26, 1938.
+Member of the executive committee of the Trust. On occasion, the
executive committee acts upon the current and ordinary business of the Trust
between meetings of the board of trustees. Except for certain powers which,
under applicable law, may only be exercised by the full board of trustees, the
executive committee may exercise all powers and authority of the board of
trustees in the management of the business of the Trust. All decisions are
subsequently submitted for ratification by the board of trustees.
#Member of the audit committee of the Trust.
*These trustees are "interested persons" of the Trust as defined in the
Investment Company Act of 1940.
**Member of the management liaison committee of the Trust.
The Adviser on behalf of the Funds has agreed to pay each of the
disinterested Trustees a regular annual fee of $1,000 per year per Fund plus a
pro-rata share of the remainder of the retainer, plus the Funds' pro-rata share
of a $6,000 quarterly meeting fee for attending regular quarterly Trustees'
meetings. During the fiscal year ended December 31, 1994, the Funds paid no
trustees' fees, as this expense was absorbed and paid by the Adviser pursuant to
its Advisory Agreement with the Trust.
Director Compensation
The following table sets forth, for the fiscal year ended December 31,
1994: the compensation paid by the Trust to its six independent trustees for
services rendered in their capacities as trustees of the Trust; the benefits
accrued as Trust expenses with respect to the Defined Benefit Deferred
Compensation Plan discussed below; and the estimated annual benefits to be
received by these trustees upon retirement as a result of their service to the
Trust. In addition, the table sets forth the total compensation paid by all of
the mutual funds distributed by INVESCO Funds Group, Inc.,
<PAGE>
The EBI Funds, Inc., the Trust, and The Global Health Sciences Fund
(collectively, the "INVESCO Complex") (45 funds in total) to these directors for
services rendered in their capacities as directors or trustees during the year
ended December 31, 1994.
Total
Estimated Compensa-
Benefits Annual tion From
Aggregate Accrued Benefits INVESCO
Compensa- As Part Upon Complex
Name of Person, tion From of Trust Retire- Paid To
Position Trust1 Expenses2 ment3 Directors1
Fred A. Deering, $ 3,091 $ 253 $ 222 $ 89,350
Vice Chairman of
the Board
Victor L. Andrews 2,954 239 257 68,000
Bob R. Baker 3,051 213 345 75,350
Lawrence H. 2,954 239 257 68,000
Budner
Daniel D. Chabris 3,024 272 183 73,350
A. D. Frazier, 0 0 0 0
Jr.
Kenneth T. King 2,994 262 202 71,000
John W. McIntyre 0 0 0 0
Total $18,068 $1,478 $1,466 $445,050
% of Net Assets .0160%4 .0013%4 .0045%5
1The vice chairman of the board, the chairmen of the audit, management
liaison and compensation committees, and the members of the executive and
valuation committees each receive compensation for serving in such capacities in
addition to the compensation paid to all independent directors.
2Represents estimated benefits accrued with respect to the Defined Benefit
Deferred Compensation Plan discussed below, and not compensation deferred at the
election of the directors/trustees.
3These figures represent the Trust's share of the estimated annual
benefits payable by the INVESCO Complex (excluding The Global Health Sciences
Fund, which does not participate in any retirement plan) upon the trustee's
retirement, calculated using the current method of allocating director/trustee
compensation among the funds in the INVESCO Complex. These estimated benefits
assume retirement at age 72, or the extended retirement date referred
hereinafter, and that the basic retainer payable to the directors will be
adjusted periodically for inflation, for increases in the number of funds in the
INVESCO Complex, and for other reasons during the period in which retirement
benefits are accrued on behalf of the respective directors/trustees. This
results in lower estimated benefits for directors/trustees who are closer to
retirement and higher estimated benefits for directors/trustees who are further
from retirement. Each of these directors/trustees has served as a
director/trustee of one or more of the funds in the INVESCO Complex for the
minimum five-year period required to be eligible to participate in the Defined
Benefit Deferred Compensation Plan.
<PAGE>
4Total as a percentage of the Trust's net assets as of
December 31, 1994.
5Total as a percentage of the net assets of the INVESCO
Complex (excluding The Global Health Sciences Fund) as of December
31, 1994.
Messrs. Bishop, Brady, Hesser, and Harris, as "interested persons" of the
Trust and of the other funds in the INVESCO Complex, receive compensation as
officers or employees of INVESCO or its affiliated companies, and do not receive
any trustee's fees or other compensation from the Trust or the other funds in
the INVESCO Complex for their service as directors.
The boards of directors/trustees of the mutual funds managed by INVESCO
Funds Group, Inc., The EBI Funds, Inc. and the Trust adopted a Defined Benefit
Deferred Compensation Plan for the non- interested directors and trustees of the
funds. Under this plan, each director or trustee who is not an interested person
of the funds (as defined in the Investment Company Act of 1940) and who has
served for at least five years (a "qualified director") is entitled to receive,
upon retiring from the boards at the mandatory retirement age of 72 (or the
retirement age of 73 or 74, if the retirement date is extended by the board for
one or two years but less than three years), continuation of payments for one
year (the "first year retirement benefit") of the annual basic retainer payable
by the funds to the qualified director at the time of his retirement or
disability (the "basic retainer"). Commencing with any such director's second
year of retirement, and commencing with the first year of retirement of a
director whose retirement has been extended by the board for three years, a
qualified director shall receive quarterly payments at an annual rate equal to
25% of the basic retainer. These payments will continue for the remainder of the
qualified director's life or ten years, whichever is longer (the "reduced
retainer payments"). If a qualified director dies or becomes disabled after age
72 and before age 74 while still a director of the funds, the first year
retirement benefit and the reduced retainer payments will be made to him or to
his beneficiary or estate. If a qualified director becomes disabled or dies
either prior to age 72 or during his 74th year while still a director of the
funds, the director will not be entitled to receive the first year retirement
benefit; however, the reduced retainer payments will be made to his beneficiary
or estate. The plan is administered by a committee of three directors who are
also participants in the plan and one director who is not a plan participant.
The cost of the plan will be allocated among the INVESCO, EBI and Treasurer's
Series funds in a manner determined to be fair and equitable by the committee.
Although the Trust is not making any payments to directors under the plan as of
the date of this Statement of Additional Information, it has begun to accrue, as
a current expense, a proportionate amount of the estimated future cost of these
benefits. The Trust has no stock options or other pension or retirement plans
for management or other personnel and pays no salary or compensation to any of
its officers.
Messrs. Brady and Deering are Chairman and Vice Chairman of the Board,
respectively, and Messrs. Andrews, Baker, Bishop, Budner, Chabris and King are
directors or trustees of the following investment companies: The EBI Funds,
Inc., INVESCO Diversified Funds, Inc.; INVESCO Dynamics Fund, Inc., INVESCO
Emerging Opportunity Funds, Inc., INVESCO Growth Fund, Inc., INVESCO Income
Funds, Inc., INVESCO Industrial Income Fund, Inc., INVESCO
<PAGE>
International Funds, Inc., INVESCO Money Market Funds, Inc., INVESCO Multiple
Asset Funds, Inc., INVESCO Specialty Funds, Inc., INVESCO Strategic Portfolios,
Inc., INVESCO Tax-Free Income Funds, Inc., INVESCO Value Trust, and INVESCO
Variable Investment Funds, Inc. Mr. Hesser is a director of all the above listed
funds except The EBI Funds, Inc. Mr. Harris is a director of The EBI Funds, Inc.
The Trust has an audit committee which consists of three of the trustees
who are not interested persons of the Trust. The committee meets periodically
with the Trust's independent accountants and officers to review accounting
principles used by the Trust, the adequacy of internal controls, the
responsibilities and fees of the independent accountants, and other matters.
The Trust also has a management liaison committee which meets quarterly
with various management personnel of the Adviser in order (a) to facilitate
better understanding of management and operations of the Trust, and (b) to
review legal and operational matters which have been assigned to the committee
by the board of trustees, in furtherance of the board of trustees' overall duty
of supervision.
THE ADVISORY AGREEMENT
The investment adviser to the Trust is INVESCO Capital Management, Inc., a
Delaware corporation (sometimes referred to as the "Adviser"), which has its
principal office at 1315 Peachtree Street, N.E., Suite 300, Atlanta, Georgia
30309. The Adviser also has an advisory office in Coral Gables, Florida and a
marketing and client service office in San Francisco, California. The Adviser is
a wholly owned subsidiary of INVESCO North American Holdings, Inc., formerly
Britannia Holdings, Inc. ("INAH"), a Delaware corporation, which is a wholly
owned subsidiary of INVESCO PLC ("INVESCO PLC"). INVESCO PLC is a financial
holding company which was organized in 1935. Its ordinary shares are held by
approximately 16,500 shareholders and are traded on the London Stock Exchange,
with a market valuation of over $660 million as of June 30, 1994. The principal
business of INVESCO PLC, which is carried on through subsidiaries, is investment
management on an international basis. Through subsidiaries in London, Denver,
Atlanta, Boston, Louisville, Dallas, Tokyo, Hong Kong, and the Channel Islands,
INVESCO PLC managed over $64 billion on behalf of mutual funds, pension and
insurance funds and private individuals as of June 30, 1994. INVESCO Fund
Managers, Ltd., one of the largest unit trust management companies in the United
Kingdom, managed the assets of over 34 authorized unit trusts having
approximately 168,000 unitholders and assets exceeding $2.0 billion as of June
30, 1994. INVESCO International Ltd. (incorporated in Jersey, Channel Islands)
offers a broad range of offshore trusts (designed for international investors
other than residents of the United States). As of June 30, 1994, funds under
management in Jersey amount to some $1.3 billion on behalf of some 27,600
unitholders. INVESCO Management & Research, formerly Gardner and Preston Moss,
Inc., of Boston, Massachusetts, was acquired by INAH in 1983, and manages funds
of some $2.8 billion, predominantly in pension and endowment accounts as of June
30, 1994.
In May 1986, INVESCO PLC acquired INVESCO Asset Management Limited
("Management Limited"), an investment management company located in the United
Kingdom. The principal business of Management Limited is the management of
pension funds, investment trusts, unit trusts, and various investment portfolios
on behalf of
<PAGE>
private clients, charities, corporations, and foreign financial
institutions.
In December 1988, INVESCO PLC, through one of its wholly owned
subsidiaries, purchased INVESCO Capital Management, Inc.'s general partnership
interest in INVESCO Capital Management, L.P. The limited partnership interest in
INVESCO Capital Management L.P. had been acquired by INVESCO PLC in December
1986. The business of INVESCO Capital Management, Inc. is the management of
institutional investment portfolios, consisting primarily of discretionary
employee benefit plans for corporations and state and local governments, and
endowment funds. INVESCO Capital Management, Inc. is the sole shareholder of
INVESCO Services, Inc., a registered broker/dealer whose primary business is the
distribution of shares of two registered investment companies.
In December 1990, INVESCO PLC purchased the business and assets of PRIMCO
Capital Management, Inc. ("PRIMCO"). PRIMCO, which was established in 1985 and
is based in Louisville, Kentucky, specializes in managing stable return
investments principally on behalf of Section 401(k) retirement plans. As of June
30, 1994, PRIMCO managed assets of over $16.4 billion on behalf of approximately
50 clients.
Based in Dallas, Texas, INVESCO Realty Advisors Inc. ("IRA") is
responsible for providing advisory services in the U.S. real estate markets for
INVESCO PLC's clients worldwide. Established in 1983 as a registered investment
advisor and qualified professional asset manager, funds under management have
grown as of June 30, 1994 to $971 million. As of June 30, 1994, its portfolio
contained 73 properties totalling over 18.4 million square feet of commercial
real estate and 3,329 apartment units. Clients include corporate plans, public
pension funds, and endowment and foundation accounts.
The corporate headquarters of INVESCO PLC are located at 11 Devonshire
Square, London, EC2M 4YR, England. The dollar figures set forth in the above
paragraphs were obtained by converting British pounds sterling into U.S. dollars
as of June 30, 1994, at $1.54. All of the information contained in the above six
paragraphs was furnished by INVESCO PLC.
Under its Investment Advisory Agreement dated as of December 30, 1988 (the
"Agreement") with the Trust, the Adviser will, subject to the supervision of the
Trustees and in conformance with the stated policies of the Trust and of the
Funds, manage the investment operations and portfolios of the Funds. In this
regard, it will be the responsibility of the Adviser not only to make investment
decisions for the Funds, but also to place the purchase and sale orders for the
portfolio transactions of the Funds. (See "Brokerage and Portfolio
Transactions.") The Adviser is also responsible for furnishing to the Trust, at
the Adviser's expense, the services of persons believed to be competent to
perform all executive and other administrative functions required by the Trust
to conduct its business effectively, as well as the offices, equipment and other
facilities necessary for its operations. Such functions include the maintenance
of the Trust's accounts and records, and the preparations of all requisite
corporate documents such as tax returns and reports to the SEC and shareholders.
Under the Agreement, the Adviser is responsible for the payment of all of
the Funds' expenses, other than payment of advisory fees, taxes, interest and
brokerage commissions, if any.
<PAGE>
The expenses to be borne by the Adviser include, without limitation,
organizational expenses, compensation of its officers and employees and expenses
of its trustees, legal and auditing expenses, the fees and expenses of the
Funds' custodian and transfer agent, and the expenses of printing and mailing
reports and notices to shareholders. For the services to be rendered and the
expenses to be assumed by the Adviser under the Agreement, the Trust will pay to
the Adviser an advisory fee which will be computed daily and paid as of the last
day of each month on the basis of each Fund's daily net asset value, using for
each daily calculation the most recently determined net asset value of the
Funds. (See "Computation of Net Asset Value.") On an annual basis, the advisory
fee paid by each Fund is equal to 0.25% of the average net asset value of each
Fund's net assets.
The Agreement was approved by the shareholders of each Fund on October 11,
1989. The Agreement will continue in effect from year to year provided such
continuance is specifically approved at least annually (i) by the vote of a
majority of each Fund's outstanding voting securities (as defined in the first
paragraph under "Investment Restrictions" in the Prospectus) or by the Trustees
of the Trust and (ii) by the vote of a majority of the Trustees of the Trust who
are not "interested persons" (as such term is defined by the 1940 Act) of the
Trust or the Adviser. The Agreement is terminable on 60 days' written notice by
either party thereto and will terminate automatically if assigned.
The investment advisory services of the Adviser to the Trust are not
exclusive and the Adviser is free to render investment advisory services to
others, including other investment companies.
For the fiscal year ended December 31, 1994, the Trust paid the Adviser an
advisory fee of $338,683, of which $280,355 was allocated to the Money Fund, and
$58,328 was allocated to the Tax- Exempt Fund, representing .25% of each of the
Funds' net assets. For the fiscal year ended December 31, 1993, the Trust paid
the Adviser an advisory fee of $353,049, of which $242,422 was allocated to the
Money Fund, and $110,627 was allocated to the Tax-Exempt Fund, representing .25%
of each of the Funds' net assets. For the fiscal year ended December 31, 1992,
the Trust paid the Adviser an advisory fee of $491,311, of which $342,866 was
allocated to the Money Fund, and $148,445 was allocated to the Tax- Exempt Fund,
representing .25% of each of the Funds' net assets.
THE DISTRIBUTOR
INVESCO Services, Inc., the Distributor, is the principal underwriter of
the Trust under a Distribution Agreement dated as of December 30, 1988. All of
the Distributor's outstanding shares of voting stock are owned by the Adviser.
The Distributor's principal office is located at 1315 Peachtree Street, N.E.,
Atlanta, Georgia 30309.
TAX INFORMATION
Federal Taxes
Each Fund intends to continue to qualify for the special tax treatment
afforded regulated investment companies under Subchapter M of the Internal
Revenue Code, as amended (the "Code"). If the Fund qualifies as a regulated
investment company, it will not be subject to federal income taxes to the extent
that it distributes
<PAGE>
annually its net investment income and net realized capital gain.
With respect to a shareholder that is exempt from federal income taxation
under Section 401(a) or 501(a) of the Code, the distributions made by a Fund
will not constitute unrelated business taxable income (i.e., taxable income
derived by a tax-exempt entity from any unrelated trade or business regularly
carried on by it) and thus will not be taxable. Under Section 512(b)(1) of the
Code, dividends and capital gains are expressly excluded from unrelated business
taxable income. Consequently, a tax-exempt shareholder will not incur any
federal income tax liability as a result of its participation in a Fund.
With respect to a shareholder that is not exempt from federal income
taxation, all distributions, except those qualifying as exempt-interest
dividends or return of capital distributions, whether received in cash or in
additional shares of a Fund, will be taxable and must be reported by the
shareholder on its federal income tax return. Except for dividends designated as
exempt-interest dividends, each Fund's distributions of its net investment
income and net short-term capital gain will constitute dividends taxable as
ordinary income. Each Fund's distribution of its net long-term capital gain will
be taxable as long-term capital gain regardless of the length of time the Fund's
shares have been held by the shareholder. Such distributions will not qualify
for the dividends received deduction.
The Tax-Exempt Fund intends to continue to qualify to pay exempt-interest
dividends under Section 852(b)(5) of the Code. In order to qualify to pay
exempt-interest dividends in any taxable year, at the close of each quarter of
such taxable year, at least 50% of the value of the total assets of the Fund
must be invested in state, municipal and other obligations the interest on which
is exempt under Section 103(a) of the Code. No assurance can be given that the
Tax-Exempt Fund will qualify to pay exempt-interest dividends each year. For
each year that this Fund is qualified to pay exempt-interest dividends, it will
designate any dividends, or portion thereof, being paid as exempt-interest
dividends in a written notice to its shareholders. The proportion of each
dividend which will be designated as an exempt-interest dividend will be the
same as the proportion of the income from tax-exempt obligations (net of certain
disallowed deductions, as provided in Section 852(b)(5) of the Code) in the
taxable year bears to the dividends paid in the taxable year. Accordingly, with
respect to any particular dividend, the portion designated as an exempt-interest
dividend may be substantially different than the portion of the Tax-Exempt
Fund's income which is income from tax-exempt obligations (net of certain
disallowed deductions, as provided in Section 852(b)(5) of the Code) for the
period covered by such dividend. The notice will be mailed approximately thirty
(30) days, but no later than sixty (60) days, after the close of the Tax-Exempt
Fund's tax year. Dividends designated as exempt-interest dividends are
excludable from the gross income of the shareholder under Section 103(a) of the
Code.
Distributions of exempt-interest dividends derived from interest on
certain private activity bonds are specifically treated as items of tax
preference and may subject corporate shareholders to, or increase their
liability under, the corporate alternative minimum tax and may subject
individual shareholders to, or increase their liability under, the alternative
minimum tax for individuals. In addition, because 75% of the difference between
adjusted current earnings and alternative minimum taxable income, all
<PAGE>
distributions derived from interest which is exempt from regular federal
income tax are included in adjusted pre-tax book income and may subject
corporate shareholders to, or increase their liability under, the corporate
alternative minimum tax.
Since the Trust expects, but cannot guarantee, to maintain a constant
$1.00 net asset value, upon the redemption of shares of a Fund held by a
non-tax-exempt investor, such investor may realize a capital gain or loss equal
to the difference between the redemption price received by the investor and the
adjusted basis of the shares redeemed. Such capital gain or loss, generally,
will constitute short-term capital gain or loss if the redeemed Fund shares were
held for 12 months or less, and long-term capital gain or loss if the redeemed
Fund shares were held for more than 12 months. If, however, Fund shares were
redeemed within six months of their purchase by an investor, and if a capital
gain dividend was paid with respect to such Fund's shares while they were held
by the investor, then any loss realized by the investor will be treated as
long-term capital loss to the extent of the capital gain dividend. Any
short-term capital loss realized upon the redemption of shares of the Tax-Exempt
Fund within six months from the date of their purchase will be disallowed to the
extent of any exempt-interest dividends received during such six month period,
although the period may be reduced under Treasury Regulations to be issued.
Section 4982 of the Code provides for a non-deductible 4% excise tax on
the excess, if any, of the "required distribution" for the calendar year over
the "distributed amount" for such calendar year. The "required distribution" is
an amount equal to at least 98% of a Fund's ordinary income for the calendar
year and at least 98% of the excess of its capital gains over capital losses
("capital gain net income") realized during the one-year period ending October
31 during such year. The Fund may make an election, however, to measure the
required capital gain distribution using its actual taxable year ending December
31. For purposes of the required distribution, capital gain net income may be
reduced by the Fund's net ordinary loss for the calendar year. Each Fund intends
to avoid the imposition of this 4% excise tax, but no assurances can be given
that this will be done every year.
Information concerning the status of a Fund's distributions for federal
income tax purposes will be mailed to shareholders annually. Such distributions,
including capital gains distributions, may also be subject to state and local
taxes.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and the Treasury Regulations presently in effect, and it
is qualified in its entirety by reference thereto. The Code and these
Regulations are subject to change by legislative or administrative action.
BROKERAGE AND PORTFOLIO TRANSACTIONS
The Adviser will arrange for the placement of orders and the execution of
portfolio transactions for each of the Funds. Portfolio securities will be
purchased or sold to parties acting as either principal or agent. Most of the
securities acquired by the Funds normally will be purchased directly from the
issuer or from an underwriter acting as principal. Other purchases will be
placed with those dealers, acting as agents, whom the Adviser believes will
<PAGE>
provide the best execution of the transaction at prices most favorable to the
Funds. Usually no brokerage commissions (as such) are paid by the Funds for
such agency transactions, although the price paid usually includes an
undisclosed compensation to the dealer acting as agent. The prices paid to the
underwriters of newly-issued securities normally include a concession paid by
the issuer to the underwriter. Purchases of after-market securities from dealers
normally are executed at a price between bid and asked prices.
Subject to the primary consideration of best execution at prices most
favorable to the Funds, the Adviser may in the allocation of such investment
transaction business consider the general research and investment information
and other services provided by dealers, although it has adopted no formula for
such allocation. These research and investment information services make
available to the Adviser for its analysis and consideration as investment
adviser to the Funds and its other accounts, the views and information of
individuals and research staffs of many securities firms. Although such
information may be a useful supplement to the Adviser's own investment
information, the value of such research and services is not expected to reduce
materially the expenses of the Adviser in the performance of its services under
the Investment Advisory Agreement and will not reduce the advisory fee payable
to the Adviser by the Funds.
The Adviser may follow a policy of considering sales of shares of the
Trust as a factor in the selection of dealers to execute portfolio transactions,
subject to the primary objective of best execution discussed above.
On occasions when the Adviser deems the purchase or sale of a security to
be in the best interest of the Funds as well as other customers, the Adviser, to
the extent permitted by applicable laws and regulations, may aggregate the
securities to be so purchased or sold for such parties in order to obtain best
execution and lower brokerage commissions. In such event, allocation of the
securities so purchased or sold, as well as the expenses incurred in the
transaction, will be made by the Adviser in the manner it considers to be most
equitable and consistent with its fiduciary obligations to all such customers,
including the Funds. In some cases the aggregation of securities to be sold or
purchased could have a detrimental effect on the price of the security insofar
as each Fund is concerned. However, in other cases, the ability of a Fund to
participate in volume transactions will be beneficial to such Fund.
No brokerage commissions on purchases and sales of the Funds' securities
were incurred for the fiscal years ended December 31, 1994, 1993 or 1992.
At December 31, 1994, the Trust's Funds held securities of its regular
brokers or dealers, or their parents, as follows:
Value of Securities
Fund Broker or Dealer at December 31, 1994
- ---- ---------------- --------------------
Money Market Societe Generale $4,500,000
Reserve Fund Securities
Money Market Credit Suisse $1,300,000
Reserve Fund
<PAGE>
Tax Exempt United Missouri Bank $ 103,000
Reserve Fund
CALCULATION OF YIELD
From time to time a Fund may advertise its "yield" and "effective yield."
Both yield figures are based on historical earnings and are not intended to
indicate future performance. The "yield" of the Fund refers to the income
generated by an investment in the Fund over a seven-day period (which period
will be stated in the advertisement). This income is then "annualized." That is,
the amount of income generated by the investment during that week is assumed to
be generated each week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly but, when annualized,
the income earned by an investment in the Fund is assumed to be reinvested. The
"effective yield" will be slightly higher than the "yield" because of the
compounding effect of this assumed reinvestment.
Each Fund normally computes its yield by determining for a seven-day base
period the net change, exclusive of capital changes, for a hypothetical
pre-existing account having a balance of one share at the beginning of the base
period, subtracting a hypothetical charge reflecting deductions from shareholder
accounts and dividing the difference by the value of the account at the
beginning of the base period to obtain the base period return, multiplying the
result by (365/7), with the resulting yield figure carried to at least the
nearest hundredth of one percent. Each Fund may also compute a standardized
effective yield. This is computed by compounding the base period return, which
is done by adding one to the base period return, raising the sum to a power
equal to 365 divided by seven and subtracting one from the result. The yield
paid by the Funds will result in payment of taxable interest to the Fund
shareholders.
MISCELLANEOUS
Principal Shareholders
As of April 1, 1995, the following entities were known by the Money Fund
to be record and beneficial owners of five percent or more of the outstanding
shares of that Fund.
Name and Address of Number Percent
Beneficial Owner of Shares of Class
- -------------------- --------- --------
INVESCO Retirement Trust 32,350,629.05 22.08
GIC Fund
P.O. Box 2040
Denver, CO 80201
INVESCO Capital Management, Inc. 20,284,946.21 13.85
1315 Peachtree St. NE, Suite 300
Atlanta, GA 30309
Spectrum Ltd 17,873,186.66 12.20
Municipal Bond Account
Southern Company
P.O. Box 1000
Carrollton, GA 30119
<PAGE>
Sheet Metal Workers 10,330,910.73 7.05
Health & Welfare Plan
P.O. Box 10067
Manhattan Beach, CA 90266
State of Illinois 8,106,895.77 5.53
Employees Def Compensation Plan
c/o Primco Capital Management
101 S. Fifth St., Suite 2150
Louisville, KY 40202
Blue Cross Blue Shield Assoc. 7,689,794.05 5.25
Nat'l 401K Master Trust Oregon
100 SW Market Place
Portland, OR 97207
As of April 1, 1995, the following entities were known by the Tax-Exempt
Fund to be record and beneficial shareholders of five percent or more of the
outstanding shares of that Fund.
Name and Address of Number Percent
Beneficial Owner of Shares of Class
- ------------------- --------- --------
Realan Capital Corporation 5,732,555.82 23.38
1201 W. Peachtree St. NW, Suite 5000
Atlanta, GA 30309
Ann Cox Chambers 2,397,271.71 9.78
c/o Wacovia
191 Peachtree St.
Atlanta, GA 30303
Willis M. Everett III 1,906,926.05 7.78
1315 Peachtree St. NE, Suite 300
Atlanta, GA 30309
J. Rex Fuqua 1,750,995.88 7.14
c/o Fuqua Capital Corporation
1201 W. Peachtree St. NW, Suite 5000
Atlanta, GA 30309
Thomas L. Shields, Jr. 1,502,037.26 6.13
1750 W. Sussex
Atlanta, GA 30306
As of April 4, 1995, officers and trustees of the Trust, as a group,
beneficially owned less than 43% of the Funds' outstanding shares and less than
26% of any portfolio's outstanding shares.
Net Asset Value
The net asset value per share of each of the Funds is determined daily as
of 11:30 a.m. (New York time), after declaration of the dividend, on each day
that the New York Stock Exchange is open for trading and at such other times
and/or on such other days as there is sufficient trading in the portfolio
securities of the Fund that might materially affect its net asset value. Net
asset value per share is determined by adding the value of all assets of the
Fund, deducting its actual and accrued liabilities, and dividing by the number
of shares outstanding.
Each Fund seeks to maintain a constant net asset value of
<PAGE>
$1.00 per share. There can be no assurance that the Funds will be able to
maintain a net asset value of $1.00 per share. In order to accomplish this goal,
each Fund intends to utilize the amortized cost method of valuing portfolio
securities. By using this method, each Fund seeks to maintain a constant net
asset value of $1.00 per share despite minor shifts in the market value of its
portfolio securities. Under the amortized cost method of valuation, securities
are valued at cost on the date of purchase. Thereafter, the value of the
security is increased or decreased incrementally each day so that at maturity
any purchase discount or premium is fully amortized and the value of the
security is equal to its principal. The amortized cost method may result in
periods during which the amortized cost value of the securities may be higher or
lower than their market value, and the yield on a shareholder's investment may
be higher or lower than that which would be recognized if the net asset value of
a Fund's portfolio was not constant and was permitted to fluctuate with the
market value of the portfolio securities. It is believed that any such
differences will normally be minimal. During periods of declining interest
rates, the quoted yield on shares of each Fund may tend to be higher than a like
computation made by a fund with identical investments utilizing a method of
valuation based upon market prices and estimates of market prices for all of its
portfolio instruments. Thus, if the use of amortized cost by a Fund resulted in
a lower aggregate net asset value on a particular day, a prospective investor in
the Fund would be able to obtain a somewhat higher yield if he or she purchased
shares of the Fund on that day, than would result from investment in a fund
utilizing solely market values. The converse would apply in a period of rising
interest rates.
The Trustees of the Trust have undertaken to establish procedures
reasonably designed, taking into account current market conditions and each
Fund's investment objectives, to stabilize, to the extent possible, each Fund's
price per share, as computed for the purposes of sales and redemptions, at
$1.00. Such procedures include review of each Fund's portfolio holdings by the
Adviser or its agent, at such intervals as it deems appropriate, to determine
whether the Fund's net asset value calculated by using available market
quotations or market equivalents deviates from $1.00 per share based on
amortized cost. If any deviation between the Fund's net asset value based upon
available market quotations or market equivalents and that based upon amortized
cost exceeds 0.5%, the Trustees will promptly consider what action, if any, is
appropriate. The action may include, as appropriate, the sale of portfolio
instruments prior to maturity to realize capital gains or losses or to shorten
the applicable Fund's average portfolio maturity; withholding dividends;
reducing the number of shares outstanding; or utilizing a net asset value per
share determined by using available market quotations.
The net asset value per share of the Funds will normally not be calculated
on days that the New York Stock Exchange is closed. These days include New
Year's Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day and Christmas Day.
Redemption of Shares
It is possible that in the future, conditions may exist which would, in
the opinion of the Trustees of the Trust, make it undesirable for a Fund to pay
for redeemed shares in cash. In such
<PAGE>
cases, the Trustees may authorize payment to be made in portfolio securities or
other property of the applicable Fund. However, the Trust has obligated itself
under the 1940 Act to redeem for cash all shares of a Fund presented for
redemption by any one shareholder up to $250,000 (or 1% of the applicable Fund's
net assets if that is less) in any 90-day period. Securities delivered in
payment of redemptions are valued at fair market value as determined in good
faith by the Trustees. Shareholders receiving such securities are likely to
incur brokerage costs on their subsequent sales of such securities.
The Custodian
United Missouri Bank of Kansas City, N.A., 928 Grand Avenue, Kansas City,
Missouri 64106, is the custodian of the portfolio securities and cash of the
Funds and maintains certain records on behalf of the Trust and the Funds.
Subject to the Trust's prior approval, the custodian may use the services of
subcustodians for the assets of one or more of the Funds.
Independent Accountants
Price Waterhouse LLP, 950 Seventeenth Street, Denver, Colorado, serves as
the Trust's independent accountants, providing services which include the audit
of the Trust's annual financial statements, and the preparation of tax returns
filed on behalf of the Trust.
The financial statements, including schedules of investments and financial
highlights, as of December 31, 1994, have been audited by Price Waterhouse LLP,
Denver, Colorado, as stated in their report appearing elsewhere herein, and are
included herein in reliance upon the report of said firm given upon its
authority as experts in accounting and auditing.
Declaration of Trust Provisions
The Declaration of Trust establishing the Trust dated January 27, 1988, a
copy of which, together with all amendments thereto (the "Declaration"), is on
file in the office of the Secretary of the Commonwealth of Massachusetts,
provides that the name "INVESCO Treasurer's Series Trust" refers to the Trustees
under the Declaration collectively as Trustees, but not as individuals or
personally; and no Trustee, shareholder, officer, employee or agent of the Trust
shall be held to any personal liability; nor shall resort be had to their
private property for the satisfaction of any obligation or claim of the Trust,
but the "Trust Property" only shall be liable.
As a Massachusetts business trust, the Trust is not required to hold
annual shareholder meetings. However, special meetings may be called for
purposes such as electing or removing trustees, changing fundamental policies or
approving an advisory contract. Pursuant to the Declaration, the holders of at
least 10% of the outstanding shares of a Fund may require the Trust to hold a
special meeting of shareholders for any purpose. The Declaration further
provides that any Trustee of the Trust may be removed, with or without cause, at
any meeting of the shareholders of the Trust by a vote of two-thirds of the
outstanding shares of the Trust.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of
INVESCO Treasurer's Series 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 Treasurer's Money Market
Reserve Fund and INVESCO Treasurer's Tax-Exempt Reserve Fund, two portfolios of
the INVESCO Treasurer's Series Trust (hereafter referred to as the
"Portfolios"), at December 31, 1994, 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 each of the five
years in the period then ended, in conformity with generally accepted accounting
principles. These financial statements and the financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Portfolios'
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 December 31, 1994 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Denver, Colorado
January 31, 1995
<PAGE>
FINANCIAL STATEMENTS
INVESCO Treasurer's Series Trust
Statement of Investment Securities
December 31, 1994
Effective
Interest Principal
Description Rate Amount Value
INVESCO TREASURER'S MONEY MARKET RESERVE Fund
SHORT-TERM INVESTMENTS 100.00%
Commercial Paper 7.01%
AKZO America
1/5/1995 6.25% $2,000,000 $1,998,633
Marsh & McLennan
1/4/1995 6.19 4,500,000 4,497,713
----------
TOTAL COMMERCIAL PAPER
(Amortized Cost $6,496,346) 6,496,346
----------
Eurodollar Time Deposits 12.41%
Credit Suisse
1/3/1995 5.07 1,300,000 1,300,000
Morgan Guaranty
1/13/1995 5.64 2,500,000 2,500,000
1/27/1995 5.64 3,200,000 3,200,000
Societe Generale
1/3/1995 5.07 4,500,000 4,500,000
----------
TOTAL EURODOLLAR TIME DEPOSITS
(Cost $11,500,000) 11,500,000
----------
Loan Participation Agreements 75.51%
Advanced Cardiovascular Systems
2/21/1995 6.34 4,000,000 4,000,000
American Greetings
1/4/1995 6.08 4,500,000 4,500,000
Ameritech Corp
1/12/1995 5.88 4,500,000 4,500,000
Avery Dennison
1/3/1995 6.19 4,500,000 4,500,000
Bell Atlantic Financial Services
1/13/1995 6.08 5,000,000 5,000,000
Central Telephone
1/5/1995 6.19 4,000,000 4,000,000
General Mills
1/5/1995 5.95 4,500,000 4,500,000
Georgia Power
1/17/1995 6.19 2,000,000 2,000,000
Gillette Co
1/4/1995 6.03 4,000,000 4,000,000
Hertz Corp
1/23/1995 6.13 4,500,000 4,500,000
Morton International
1/3/1995 6.24 4,500,000 4,500,000
National Rural Utilities Cooperative Finance
1/9/1995 6.13 3,000,000 3,000,000
1/13/1995 6.00 3,000,000 3,000,000
Questar Corp
1/4/1995 6.16 5,000,000 5,000,000
Seacliff Partners
<PAGE>
1/31/1995 6.14 4,000,000 4,000,000
Washington Gas Light
1/6/1995 6.14 4,500,000 4,500,000
Westgate Partners I
1/30/1995 6.14 4,500,000 4,500,000
----------
TOTAL LOAN PARTICIPATION AGREEMENTS
(Cost $70,000,000) 70,000,000
----------
Taxable Municipal Short-Term Notes+ 5.07%
Health Insurance Plan of
New York, Gen Oblig, ACES,
Series B-1
7/1/2016 (Cost $4,700,000) 6.45 4,700,000 4,700,000
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Amortized Cost $92,696,346#) $92,696,346
===========
INVESCO TREASURER'S TAX-EXEMPT RESERVE Fund
MUNICIPAL SHORT-TERM INVESTMENTS+ 99.75%
Daily Put Bonds 10.71%
LOUISIANA 0.51%
Louisiana Recovery Dist, AR,
Sales Tax Rev, Series 1988,
7/1/1998 5.85% $100,000 $100,000
----------
SOUTH CAROLINA 2.04%
Charleston Cnty, South Carolina
(Massey Coal Term South Carolina
Proj), ACES, Indl Ref Rev,
1982 Series, 1/1/2007 6.00 400,000 400,000
----------
TEXAS 0.51%
North Central Texas Hlth
Facils Dev Corp (Presbyterian
Med Ctr Proj), DATES, Hosp
Rev, Series 1985C, 12/1/2015 5.95 100,000 100,000
----------
VIRGINIA 5.10%
Roanake Indl Dev Auth, Virginia
(Roanake Mem Hosps Proj),
VR, Hosp Rev, Series 1992A,
7/1/2017 5.85 1,000,000 1,000,000
----------
WASHINGTON 2.55%
Washington Hlth Care Facils
Auth (Sisters of Providence),
VR, Rev, Series 1985B,
10/1/2005 6.00 500,000 500,000
----------
TOTAL DAILY PUT BONDS
(Cost $2,100,000) 2,100,000
----------
Weekly Put Bonds 77.56%
ALABAMA 14.13%
Ashland Indl Dev Brd, Alabama
(Russell Corp Proj), A/FR,
IDR Ref, Series 1992,
6/1/2002 5.75 1,000,000 1,000,000
McIntosh Indl Dev Brd, Alabama
(CIBA-GEIGY Corp Proj), VR,
<PAGE>
Solid Waste Disp Rev, Series
1990, 7/1/2004 5.85 1,000,000 1,000,000
Montgomery Indl Dev Brd, Alabama
(Smith Inds Proj), V/FR,
IDR, Series 1988-B, 6/1/2000 5.75 770,000 770,000
----------
2,770,000
----------
ARIZONA 7.81%
Maricopa Cnty Indl Dev Auth, Arizona
(McLane Co Proj), VRD,
IDR, Series 1984, 10/1/2004 6.08 1,530,000 1,530,000
----------
GEORGIA 7.65%
Columbia Cnty Dev Auth, Georgia
(Augusta Sportswear Proj),
TEAMS, IDR, Series 1991,
1/1/2007 5.75 1,500,000 1,500,000
----------
ILLINOIS 2.55%
Illinois Dev Fin Auth (Marriott
Corp Deerfield Proj), ATS,
IDR, Series 1984, 11/1/2014 5.00 500,000 500,000
----------
LOUISIANA 5.10%
DeSoto Parish, Louisiana
(Central Louisiana Elec Proj),
ATS, PCR Ref, Series 1991 B,
7/1/2018 5.40 1,000,000 1,000,000
----------
MINNESOTA 1.79%
Minneapolis, Minnesota
(Mt Sinai Med Bldg Assoc Proj),
VR, Coml Dev Rev Ref, Series
1989, 8/1/1999 5.60 350,000 350,000
----------
NEBRASKA 3.34%
Buffalo County Hosp Auth #1,
Nebraska (Good Samaritan Hosp
Proj), UPDATES, Rev, Series
1985A, 1/1/2016 5.50 655,000 655,000
----------
NEW JERSEY 5.10%
New Jersey Sports & Exposition
Auth, AR, State Contract Bonds,
1992 Series C, 9/1/2024 5.40 1,000,000 1,000,000
----------
SOUTH CAROLINA 12.75%
Dorchester Cnty, South Carolina
(BOC Group Proj), TEAMS,
PCR Ref, Series 1993,
12/8/2000 5.70 500,000 500,000
South Carolina Edl Facils Auth
(Presbyterian College Proj),
VR, Edl Facils Rev, Series
1993, 6/1/2008 5.60 1,000,000 1,000,000
South Carolina Hsg Fin & Dev
Auth (Waverly Pl Proj),
VR, Rental Hsg Rev Ref,
Series 1988, 11/1/2007 5.73 1,000,000 1,000,000
----------
2,500,000
<PAGE>
----------
TENNESSEE 5.10%
Morristown Indl Dev Brd,
Tennessee (Camvac Intl Proj),
Indl Rev, Series 1983,
6/1/1998 5.96 1,000,000 1,000,000
----------
WASHINGTON 2.04%
Washington Hsg Fin Commn
(Pacific First Fed Svg Bank
Prog), VRD, Multifamily Mtg
Rev Ref, Series 1988B,
10/1/2020 5.75 400,000 400,000
----------
WYOMING 10.20%
Green River, Wyoming (Allied
Corp Proj), F/FR, PCR Ref,
1982 Series, 12/1/2012 5.35 2,000,000 2,000,000
----------
TOTAL WEEKLY PUT BONDS (Cost $15,205,000) 15,205,000
----------
Miscellaneous Bonds 11.48%
TEXAS 11.48%
Lower Neches Valley Auth, Texas
(Chevron USA Proj), AR,
PCR, Series 1987, 2/15/2017 3.47 1,250,000 1,250,000
San Antonio, Texas, Elec & Gas
Systems Rev Ref, TECP,
1/6/1995 3.70 1,000,000 1,000,000
----------
TOTAL MISCELLANEOUS BONDS
(Cost $2,250,000) 2,250,000
----------
TOTAL MUNICIPAL SHORT-TERM INVESTMENTS
(Cost $19,555,000) 19,555,000
----------
TAXABLE SHORT-TERM INVESTMENTS 0.25%
United Missouri Bank, Money
Market Fiduciary~
(Cost $48,000) 4.78 48,000 48,000
----------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $19,603,000#) $19,603,000
===========
The following abbreviations may be used in portfolio descriptions:
A/FR* - Adjustable/Fixed Rate
ACES* - Adjustable Convertible Extendible Securities
AR* - Adjustable Rate
ATS* - Adjustable Tender Securities
DATES* - Daily Adjustable Tax-Exempt Securities
F/FR* - Floating/Fixed Rate
FR* - Fixed Rate
IDR - Industrial Development Revenue
PCR - Pollution Control Revenue
TEAMS* - Tax-Exempt Adjustable Mode Securities
TECP - Tax-Exempt Commercial Paper
UPDATES* - Unit Priced Demand Tax-Exempt Securities
V/FRD* - Variable/Fixed Rate Demand
VR* - Variable Rate
VRD* - Variable Rate Demand
<PAGE>
* Rate is subject to change. Rate shown reflects current rate.
+ All securities with a maturity date greater than one year have
either a variable rate, demand feature, optional or mandatory put
resulting in an effective maturity of one year or less. Rate
shown reflects current rate.
# Also represents cost for income tax purposes.
~ Principal and interest are payable on demand.
See Notes to Financial Statements
<PAGE>
Statement of Assets and Liabilities
December 31, 1994
INVESCO INVESCO
Treasurer's Treasurer's
Money Market Tax-Exempt
Reserve Fund Reserve Fund
ASSETS
Investment Securities:
At Cost $92,696,346 $19,603,000
==================================
At Value $92,696,346 $19,603,000
Cash 140,788 789
Interest Receivable 245,356 111,982
Other Assets 50,053 1,201
----------------------------------
TOTAL ASSETS 93,132,543 19,716,972
----------------------------------
LIABILITIES
Payable for Distributions
to Shareholders 1,554 1,328
----------------------------------
Net Assets at Value $93,130,989 $19,715,644
==================================
Shares Outstanding# 93,130,989 19,715,644
Net Asset Value, Offering
and Redemption Price per Share $1.00 $1.00
=================================
# The Trust has one class of shares which may be divided into different series,
each representing an interest in a separate Fund. At December 31, 1994, there
was an unlimited number of shares of beneficial interest (without par value)
authorized. Paid-in capital was $93,130,989 and $19,715,644 for Money Market
Reserve and Tax-Exempt Reserve Funds, respectively.
See Notes to Financial Statements
<PAGE>
INVESCO Treasurer's Series Trust
Statement of Operations
Year Ended December 31, 1994
INVESCO INVESCO
Treasurer's Treasurer's
Money Market Tax-Exempt
Reserve Fund Reserve Fund
INVESTMENT INCOME
INTEREST INCOME $4,792,462 $685,194
EXPENSES
Investment Advisory Fees 280,355 58,328
---------------------------------
Net Investment Income and
Net Increase in Net Assets
from Operations $4,512,107 $626,866
=================================
See Notes to Financial Statements
<PAGE>
INVESCO Treasurer's Series Trust
Statement of Changes in Net Assets
Year Ended December 31
INVESCO Treasurer's Money Market Reserve Fund
1994 1993
OPERATIONS AND DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income Earned and
Distributed to Shareholders $4,512,107 $2,797,48
===================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares $1,067,071,444 $562,778,611
Reinvestment of Dividends 4,427,643 2,721,736
------------------------------------
1,071,499,087 565,500,347
Amounts Paid for Repurchases
of Shares (1,081,189,907) (580,389,636)
---------------------------------------
NET DECREASE IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS (9,690,820) (14,889,289)
NET ASSETS
Beginning of Period 102,821,809 117,711,098
------------------------------------
End of Period $93,130,989 $102,821,809
====================================
FUND SHARE TRANSACTIONS
Shares Sold 1,067,071,444 562,778,611
Shares Issued from Reinvestment
of Dividends 4,427,643 2,721,736
-------------------------------------
1,071,499,087 565,500,347
Shares Repurchased (1,081,189,907) (580,389,636)
---------------------------------------
Net Decrease in Fund Shares (9,690,820) (14,889,289)
===================================
See Notes to Financial Statements
<PAGE>
INVESCO Treasurer's Series Trust
Statement of Changes in Net Assets
Year Ended December 31
INVESCO Treasurer's Tax-Exempt Reserve Fund
1994 1993
OPERATIONS AND DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income Earned and
Distributed to Shareholders $626,866 $1,009,882
===================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares $44,315,121 $164,241,796
Reinvestment of Dividends 607,384 661,497
-----------------------------------
44,922,505 164,903,293
Amounts Paid for Repurchases
of Shares (52,468,131) (198,358,998)
-----------------------------------
NET DECREASE IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS (7,545,626) (33,455,705)
NET ASSETS
Beginning of Period 27,261,270 60,716,975
-----------------------------------
End of Period $19,715,644 $27,261,270
===================================
FUND SHARE TRANSACTIONS
Shares Sold 44,315,121 164,241,796
Shares Issued from Reinvestment
of Dividends 607,384 661,497
-----------------------------------
44,922,505 164,903,293
Shares Repurchased (52,468,131) (198,358,998)
-----------------------------------
Net Decrease in Fund Shares (7,545,626) (33,455,705)
===================================
See Notes to Financial Statements
<PAGE>
INVESCO Treasurer's Series Trust
Notes to Financial Statements
NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES. INVESCO Treasurer's Series Trust (the
"Trust") is registered under the Investment Company Act of 1940 (the "Act"), as
a diversified, open-end management investment company. The Trust is organized
under the laws of the Commonwealth of Massachusetts and consists of four
separate funds: INVESCO Treasurer's Money Market Reserve Fund ("Money Fund"),
INVESCO Treasurer's Tax-Exempt Reserve Fund ("Tax-Exempt Fund") (collectively,
the "Funds"), INVESCO Treasurer's Prime Reserve Fund ("Prime Reserve"), and
INVESCO Treasurer's Special Reserve Fund ("Special Reserve"), each of which
represents a separate portfolio of investments. Prime Reserve and Special
Reserve are not presented herein.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements.
A. SECURITY VALUATION -- Short-term securities are stated at amortized cost
(which approximates market value) if maturity is 60 days or less, or at market
value if maturity is greater than 60 days. If management believes that such
valuation does not reflect the securities' fair value, these securities are
valued at fair value as determined in good faith by the Funds' trustees.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security
transactions are accounted for on the trade date. Interest income is recorded on
the accrual basis. The Fund amortizes discounts and premiums paid on purchases
of securities to the earliest put or call date as adjustments to interest
income. Cost is determined on the specific identification basis.
C. FEDERAL AND STATE TAXES -- The Trust has complied with the provisions of
the Internal Revenue Code applicable to regulated investment companies and,
accordingly, has made or intends to make sufficient distributions of net
investment income and net realized capital gains, if any, to relieve it from all
federal and state income taxes and federal excise taxes. Of the distributions
paid by the Tax-Exempt Fund for the year ended December 31, 1994, 95.20% were
exempt from federal income taxes.
D. DISTRIBUTIONS TO SHAREHOLDERS -- All the Fund's net investment income is
distributed to shareholders by dividends declared daily and paid monthly.
Reinvestment of income dividends is effected at the month-end net asset value.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Capital
Management, Inc. ("ICM") serves as the Trust's investment adviser. As
compensation for its services to the Trust, ICM receives an investment advisory
fee which is accrued daily and paid monthly. The fee is based on the annual rate
of 0.25% of each Fund's average net assets. ICM is also responsible for
providing certain administrative and clerical services and facilities necessary
for the operation of the Trust. In accordance with the Investment Advisory
Agreement, ICM bears all other expenses of the Funds, except taxes, interest and
brokerage commissions.
NOTE 3 -- TRANSACTIONS WITH AFFILIATES. Certain of the Trust's officers
and/or trustees are also officers and/or directors of ICM. At December 31, 1994,
14.92% and 41.00% of outstanding shares of Money Fund and Tax-Exempt Fund,
respectively, were held by ICM or affiliated parties.
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
<PAGE>
are based on an annual rate equal to 25% of the retainer fee at the time of
retirement. Pension expenses for the year ended December 31, 1994, prepaid
pension costs and accrued pension liability were paid by ICM in accordance with
the Investment Advisory Agreement and were as follows.
Prepaid Accrued
Pension Pension Pension
Expenses Costs Liability
Money Fund $1,461 $3,683 $5,144
Tax-Exempt Fund 263 663 926
<PAGE>
<TABLE>
<CAPTION>
INVESCO Treasurer's Series Trust
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
INVESCO Treasurer's Money Market Reserve Fund
Year Ended December 31
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.04 0.03 0.04 0.06 0.08
------------------------------------------------
Net Asset Value-- End of Period $1.00 $1.00 $1.00 $1.00 $1.00
================================================
TOTAL RETURN 4.13% 2.92% 3.57% 6.04% 8.39%
RATIOS
Net Assets-- End of Period ($000 Omitted) $93,131 $102,822 $117,711 $173,138 $278,236
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% 0.25% 0.25%
Ratio of Net Investment Income to Average
Net Assets 4.02% 2.88% 3.54% 5.97% 8.08%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INVESCO Treasurer's Series Trust
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
INVESCO Treasurer's Tax-Exempt Reserve Fund
Year Ended December 31
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income Earned and
Distributed to Shareholders 0.03 0.02 0.03 0.05 0.06
------------------------------------------------
Net Asset Value-- End of Period $1.00 $1.00 $1.00 $1.00 $1.00
================================================
TOTAL RETURN 2.81% 2.30% 2.88% 4.57% 6.05%
RATIOS
Net Assets-- End of Period ($000 Omitted) $19,716 $27,261 $60,717 $78,552 $61,981
Ratio of Expenses to Average Net Assets 0.25% 0.25% 0.25% 0.25% 0.25%
Ratio of Net Investment Income to Average
Net Assets 2.69% 2.28% 2.84% 4.48% 5.90%
</TABLE>
<PAGE>
Part C
Other Information
Item 24. Financial Statements and Exhibits
(a) 1. Financial statements and schedules
included in Prospectus (Part A):
Financial Highlights for each of the six 12
years in the period ended December 31, 1994,
and for the period from April 27, 1988
(commencement of operations) to
December 31, 1988, for the INVESCO Treasurer's
Money Market Reserve Fund and the INVESCO
Treasurer's Tax-Exempt Reserve Fund.
2. Financial statements and schedules
included in Statement of Additional
Information (Part B):
(a) Report of Independent Accountan 92
Statement of Investment Securities as of December 31, 69
1994, for the INVESCO Treasurer's Money Market Reserve
Fund and the INVESCO Treasurer's Tax- Exempt Reserve
Fund.
Statement of Assets and Liabilities as of December 31, 74
1994, for the INVESCO Treasurer's Money Market Reserve
Fund and the INVESCO Treasurer's Tax-Exempt Reserve
Fund.
Statement of Operations for the year ended December 75
31, 1994, for the INVESCO Treasurer's Money Market
Reserve Fund and the INVESCO Treasurer's Tax-Exempt
Reserve Fund.
Statement of Changes in Net Assets for each of the two 76
years in the period ended December 31, 1994, for the
INVESCO Treasurer's Money Market Reserve Fund and the
INVESCO Treasurer's Tax-Exempt Reserve Fund.
Financial Highlights for each of the five years in the 80
period ended December 31, 1994 for the INVESCO
Treasurer's Money Market Reserve Fund and INVESCO
Treasurer's Tax-Exempt Reserve Fund.
<PAGE>
3. Financial statements and schedules
included in Part C:
None: Schedules have been omitted as
all information has been presented in
the financial statements.
(b) Exhibits:
1. Declaration of Trust of Registrant.
(2)
2. By-laws of Registrant. (1)
3. None.
4. None.
5. (a) Investment Advisory Agreement
between Registrant and INVESCO
Capital Management, Inc. dated as of
December 30, 1988. (2)
(b) Investment Advisory Agreement
between Registrant and INVESCO
Capital Management, Inc. (revised)
dated as of October 11, 1989. (4)
(c) Amended Investment Advisory
Agreement between Registrant and
INVESCO Capital Management, Inc.
(formerly INVESCO MIM, Inc.) dated
October 30, 1991.(5)
6. Distribution Agreement between
Registrant and INVESCO Services, Inc.
dated as of December 30, 1988. (2)
7. Defined Benefit Deferred Compensation
Plan for Non-Interested Directors and
Trustees.(6)
8. Custodian Agreement between the
Registrant and United Missouri Bank
of Kansas City, N.A. (4)
9. (a) Amended Transfer Agency Agreement
between the Trust and INVESCO Funds
Group, Inc. dated January 21, 1991.
Amended Fee Schedule dated as of
October 30, 1991, to the Amended
Transfer Agency Agreement between the
Trust and INVESCO Funds Group, Inc.
dated January 21, 1991.(5)
<PAGE>
(b) Indemnification Agreement between
INVESCO Capital Management, L.P. and
each of the Trustees of the
Registrant. (1)
(c) Amended Administrative Services
Agreement between Registrant and
INVESCO Funds Group, Inc., formerly
Financial Programs, Inc., dated as of
January 23, 1991. Amendment dated as
of October 30, 1991.(5)
10. Opinion as to legality of the shares.
(1)
11. Consent of Independent Accountants.
12. None.
13. None.
14. None.
15. None.
16. Schedule for computation of yield and
effective yield quotations.
18. None.
19. Power of Attorney appointing Glen A.
Payne and Edward F. O'Keefe as
attorneys-in-fact. (1)
27. (a) Financial Data Schedule for the
period ended December 31, 1994, for
INVESCO Treasurer's Money Market
Reserve Fund.
(b) Financial Data Schedule for the
period ended December 31, 1994, for
INVESCO Treasurer's Tax-Exempt
Reserve Fund.
(c) Financial Data Schedule for the
period ended December 31, 1994, for
INVESCO Treasurer's Prime Reserve
Fund.
(d) Financial Data Schedule for the
period ended December 31, 1994, for
INVESCO Treasurer's Special Reserve
Fund.
- --------------------
(1) Previously filed on January 29, 1988, in connection with Registrant's
initial Registration Statement under the 1933 Act, and herein incorporated
by reference.
(2) Previously filed on March 1, 1989 in Post-Effective
Amendment No. 2 to the Registrant's 1933 Act registration
statement, and herein incorporated by reference.
(3) Previously filed on May 1, 1989, in Post-Effective Amendment
No. 3 to the Registrant's 1933 Act registration statement,
and herein incorporated by reference.
(4) Previously filed on April 20, 1990, in Post-Effective
<PAGE>
Amendment No. 4 to the Registrant's 1933 Act registration
statement, and herein incorporated by reference.
(5) Previously filed on October 2, 1991, in Post-Effective
Amendment No. 6 to the Registrant's 1933 Act Registration
Statement, and herein incorporated by reference.
(6) Previously filed on April 29, 1994, in Post-Effective No. 12
to the Registrant's 1993 Act Registration Statement, and
herein incorporated by reference.
Item 25. Persons Controlled by or Under Common Control With
Registrant
The Registrant's Investment Adviser is INVESCO Capital Management, Inc., a
Delaware Corporation (the "Adviser") which is an indirect subsidiary of INVESCO
PLC, an English public limited company. The Registrant's principal underwriter
is INVESCO Services, Inc., a Georgia corporation (the "Distributor"). The
Adviser also provides investment advice to the following investment companies:
The EBI Funds, Inc., and Selected Investment Managers Series Fund. The
Distributor also provides distribution services to the foregoing investment
companies other than Selected Investment Managers Series Fund. The Trust's
transfer agent is INVESCO Funds Group, Inc., a Delaware corporation which also
performs certain administrative services for the Trust. All of the outstanding
securities of the Distributor are owned by the Adviser. INVESCO Funds Group,
Inc. is an indirect subsidiary of INVESCO PLC.
Item 26. Number of Holders of Securities
As of December 31, 1994, the number of record holders of each class of
securities of the four Funds of the Trust were as follows:
Number of
Name of Fund Title of Class Record Holders
Money Fund Beneficial Interest 101
Tax-Exempt Fund Beneficial Interest 51
Prime Reserve Fund Beneficial Interest 0
Special Reserve Fund Beneficial Interest 0
Item 27. Indemnification
Article V of the Registrant's Declaration of Trust provides that the Trust
shall indemnify each of its Trustees and officers against all liabilities and
expenses reasonably incurred or paid by him in connection with any action, suit
or other proceeding, whether civil or criminal, in which he may be involved,
except with respect to any matter as to which he shall have acted in bad faith,
willful misfeasance, gross negligence or reckless disregard of his duties.
The Trustees have entered into an Indemnification Agreement dated January
27, 1988 with INVESCO Capital Management, Inc. (the "Adviser"), wherein each of
the Trustees agrees to become a trustee of the Trust, and the Adviser agrees to
indemnify each Trustee to the fullest extent permitted by law against all
liability and all expenses reasonably incurred or paid in connection with any
claim, action, suit or proceeding in which the Trustee becomes involved as a
party or otherwise by virtue of being or having been a trustee or officer of the
Trust and against amounts paid or incurred by the
<PAGE>
Trustee in the settlement thereof; provided that such indemnification shall
apply only to any such liability, expenses or amounts paid or incurred in
settlement in connection with a claim, action, suit or proceeding which arises
during either (i) the term of the Trustee's service as a trustee of the Trust,
or (ii) the four-year period commencing upon the termination, for whatever
reason, of the Trustee's service as a trustee of the Trust. No indemnification
shall be provided to a Trustee under the Indemnification Agreement for any
liability to the Trust, a series of the Trust, or the shareholders of the Trust
by reason of a final adjudication by a court or other body before which a
proceeding was brought that the Trustee engaged in willful misfeasance, bad
faith, gross negligence or reckless disregard of the duties involved in the
conduct of the Trustee's office, or with respect to any matter as to which the
Trustee shall have been finally adjudicated not to have acted in good faith and
in responsible belief that the Trustee's action was in the best interest of the
Trust.
The Trust has entered into a Distribution Agreement dated December 30,
1988 with INVESCO Services, Inc. (the "Distributor") which provides in part that
the Distributor and the Trust will indemnify, defend and hold harmless each
other and their respective officers, directors, trustees and controlling persons
(within the meaning of the 1933 Act), from and against any and all such claims,
demands, liabilities and expenses (including cost of investigating or defending
such claims, demands or liabilities, and any attorneys fees incurred in
connection therewith), which such parties may incur under the federal securities
laws, the common law or otherwise.
Reference is made to the Distribution Agreement previously filed and
herein incorporated by reference.
Reference is also made to the revised Investment Advisory Agreement filed
as Exhibit 5(b), as referred to in Item 24(b) hereof.
Item 28. Business and Other Connections of Investment Adviser
See "The Investment Adviser" in the Prospectus and "The Advisory
Agreement" in the Statement of Additional Information for information regarding
the business of the investment adviser. For information as to the business,
profession, vocation or employment of a substantial nature of each of the
officers and directors of INVESCO Capital Management, Inc., reference is made to
Form ADV filed under the Investment Advisers Act of 1940 by INVESCO Capital
Management, Inc., herein incorporated by reference.
Item 29. Principal Underwriters
(a) The EBI Funds, Inc.
(b)
Positions and Positions and
Name and Principal Offices with Offices with
Business Address Underwriter Registrant
Charles W. Brady Chairman of Chairman and
1315 Peachtree Street, N.E., the Board Trustee
#300
Atlanta, Georgia 30309
<PAGE>
Hubert L. Harris, Jr. President and Trustee
1315 Peachtree Street, N.E., Director
#300
Atlanta, Georgia 30309
Terrence J. Miller Vice President
1315 Peachtree Street, N.E., and Director
#300
Atlanta, Georgia 30309
Penelope P. Alexander Secretary and Treasurer and
1315 Peachtree Street, N.E., Director Secretary
#300
Atlanta, Georgia 30309
George S. Robinson, Jr. Employee President
1315 Peachtree Street, N.E.,
#300
Atlanta, Georgia 30309
David Hartley Treasurer
1315 Peachtree Street, N.E.
Atlanta, Georgia 30309
Item 30. Location of Accounts and Records
Registrant maintains the records required to be maintained by it under
Rules 31a-1(a), 31a-1(b) and 31a-2(a) under the 1940 Act at its offices at 7800
East Union Avenue, Denver, Colorado 80237. Certain records, including records
relating to Registrant's shareholders and the physical possession of its
securities, may be maintained pursuant to Rule 31a-3 at the offices of
Registrant's transfer agent, INVESCO Funds Group, Inc., 7800 East Union Avenue,
Denver, Colorado 80237, and at the offices of Registrant's custodian, United
Missouri Bank of Kansas City, N.A., at 928 Grand Avenue, Kansas City, Missouri
64106.
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) The Registrant shall furnish each person to whom a prospectus
is delivered with a copy of the Registrant's latest annual
report to shareholders, upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this
post-effective amendment to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Atlanta, County of Fulton, and State
of Georgia, on the 21st day of April, 1995.
Attest: INVESCO Treasurer's Series Trust
/s/ Penelope P. Alexander /s/ George S. Robinson, Jr.
- ------------------------------------ ------------------------------------
Penelope P. Alexander, Secretary George S. Robinson, Jr., President
Pursuant to the requirements of the Securities Act of 1933, this
post-effective amendment to Registrant's Registration Statement has been signed
by the following persons in the capacities indicated on this 21st day of April,
1995.
/s/ George S. Robinson, Jr. /s/ Lawrence H. Budner
------------------------------------ ------------------------------------
George S. Robinson, Jr., President Lawrence H. Budner, Trustee
(Chief Financial and Accounting Officer)
/s/ Penelope P. Alexander /s/ Daniel D. Chabris
- ------------------------------------ ------------------------------------
Penelope P. Alexander, Daniel D. Chabris, Trustee
Secretary and Treasurer
/s/ Victor L. Andrews /s/ Fred A. Deering
- ------------------------------------ ------------------------------------
Victor L. Andrews, Trustee Fred A. Deering, Trustee
/s/ Bob R. Baker /s/ Hubert L. Harris, Jr.
- ------------------------------------ ------------------------------------
Bob R. Baker, Trustee Hubert L. Harris, Jr., Trustee
/s/ Frank M. Bishop /s/ Dan J. Hesser
- ------------------------------------ ------------------------------------
Frank M. Bishop, Trustee Dan J. Hesser, Trustee
/s/ Charles W. Brady /s/ Kenneth T. King
- ------------------------------------ ------------------------------------
Charles W. Brady, Trustee Kenneth T. King, Trustee
By*/s/ Glen A. Payne
By*--------------------------------- ---------------------------------
Edward F. O'Keefe Glen A. Payne
Attorney in Fact Attorney in Fact
* Original Powers of Attorney authorizing Edward F. O'Keefe and Glen A. Payne,
and each of them, to execute this post-effective amendment to the Registration
Statement of the Registrant on behalf of the above-named directors and officers
of the Registrant have been filed with the Securities and Exchange Commission on
April 12, 1990, September 16, 1991, May 27, 1992 and April 29, 1994.
<PAGE>
EXHIBIT INDEX
Page in
Exhibit Number Registration Statement
11 92
27(a) 93
27(b) 95
27(c) 97
27(d) 99
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 13 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
January 31, 1995, relating to the financial statements and financial highlights
of INVESCO Treasurer's Series Trust, which appears in such Statement of
Additional Information, and to the incorporation by reference of our report into
the Prospectus which constitutes part of this Registration Statement. We also
consent to the reference to us under the heading "Independent Accountants" in
such Statement of Additional Information and to the reference to us under the
heading "Financial Highlights" in such Prospectus.
PRICE WATERHOUSE LLP
Denver, Colorado
April 19, 1995
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM INVESCO TREASURER'S
SERIES TRUST AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH INVESCO
TREASURER'S MONEY RESERVE FUND, INVESCO TREASURER'S TAX-EXEMPT RESERVE FUND,
INVESCO TREASURER'S PRIME RESERVE FUND AND INVESCO TREASURER'S SPECIAL RESERVE
FUNDS' FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000828806
<NAME> INVESCO TREASURER'S SERIES TRUST
<SERIES>
<NUMBER> 1
<NAME> INVESCO TREASURER'S MONEY RESERVE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 92696346
<INVESTMENTS-AT-VALUE> 92696346
<RECEIVABLES> 245356
<ASSETS-OTHER> 190841
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 93132543
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1554
<TOTAL-LIABILITIES> 1554
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 93130989
<SHARES-COMMON-STOCK> 93130989
<SHARES-COMMON-PRIOR> 102821809
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 93130989
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4792462
<OTHER-INCOME> 0
<EXPENSES-NET> 280355
<NET-INVESTMENT-INCOME> 4512107
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4512107
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1067071444
<NUMBER-OF-SHARES-REDEEMED> 1081189907
<SHARES-REINVESTED> 4427643
<NET-CHANGE-IN-ASSETS> (9690820)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 280355
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 280355
<AVERAGE-NET-ASSETS> 112251812
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .04
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<PER-SHARE-DIVIDEND> .04
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM INVESCO TREASURER'S
SERIES TRUST AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH INVESCO
TREASURER'S MONEY RESERVE FUND, INVESCO TREASURER'S TAX-EXEMPT RESERVE FUND,
INVESCO TREASURER'S PRIME RESERVE FUND AND INVESCO TREASURER'S SPECIAL RESERVE
FUNDS' FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000828806
<NAME> INVESCO TREASURER'S SERIES TRUST
<SERIES>
<NUMBER> 2
<NAME> INVESCO TREASURER'S TAX-EXEMPT RESERVE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 19603000
<INVESTMENTS-AT-VALUE> 19603000
<RECEIVABLES> 111982
<ASSETS-OTHER> 1201
<OTHER-ITEMS-ASSETS> 789
<TOTAL-ASSETS> 19716972
<PAYABLE-FOR-SECURITIES> 1328
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<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 1328
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 19715644
<SHARES-COMMON-STOCK> 19715644
<SHARES-COMMON-PRIOR> 27261270
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 19715644
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 685194
<OTHER-INCOME> 0
<EXPENSES-NET> 58328
<NET-INVESTMENT-INCOME> 626866
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 626866
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 44315121
<NUMBER-OF-SHARES-REDEEMED> 52468131
<SHARES-REINVESTED> 607384
<NET-CHANGE-IN-ASSETS> (7545626)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 58328
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 58328
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<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
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<PER-SHARE-DIVIDEND> .03
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<PER-SHARE-NAV-END> 1.00
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM INVESCO TREASURER'S
SERIES TRUST AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH INVESCO
TREASURER'S MONEY RESERVE FUND, INVESCO TREASURER'S TAX-EXEMPT RESERVE FUND,
INVESCO TREASURER'S PRIME RESERVE FUND AND INVESCO TREASURER'S SPECIAL RESERVE
FUNDS' FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000828806
<NAME> INVESCO TREASURER'S SERIES TRUST
<SERIES>
<NUMBER> 3
<NAME> INVESCO TREASURER'S PRIME RESERVE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 0
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<RECEIVABLES> 0
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<OTHER-ITEMS-ASSETS> 0
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<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
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<OVERDISTRIBUTION-GAINS> 0
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<OVERDIST-NET-GAINS-PRIOR> 0
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<RETURNS-OF-CAPITAL> 0
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM INVESCO TREASURER'S
SERIES TRUST AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH INVESCO
TREASURER'S MONEY RESERVE FUND, INVESCO TREASURER'S TAX-EXEMPT RESERVE FUND,
INVESCO TREASURER'S PRIME RESERVE FUND AND INVESCO TREASURER'S SPECIAL RESERVE
FUNDS' FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000828806
<NAME> INVESCO TREASURER'S SERIES TRUST
<SERIES>
<NUMBER> 4
<NAME> INVESCO TREASURER'S SPECIAL RESERVE FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
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<INTEREST-INCOME> 0
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<SHARES-REINVESTED> 0
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<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
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<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
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<PER-SHARE-DIVIDEND> 0
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
