KNOWLEDGE DISCIPLINE SERVICE CHOICE
- ----------------------------------------------
YOU SHOULD KNOW WHAT INVESCO KNOWS (TM)
- ----------------------------------------------
INVESCO Treasurer's Series Funds, Inc.
MONEY MARKET RESERVE FUND
TAX-EXEMPT RESERVE FUND
ANNUAL
[INVESCO ICON]
INVESCO
ANNUAL REPORT | May 31, 1999
<PAGE>
TREASURER'S SERIES FUNDS
A NOTE ON MONEY MARKET FUNDS AT INVESCO
- --------------------------------------------------------------------------------
As investors turn increasingly to money market funds as both short-term savings
vehicles and bulwarks against market volatility, we thought it useful to
reiterate our approach to money market management at INVESCO.
o For institutions and individuals with over $100,000 to invest, INVESCO's
Treasurer's Series Funds, Money Market Reserve Fund and Tax-Exempt Reserve
Fund, provide a lower-cost, higher-yield option. The two Treasurer's Funds
have an expense ratio fixed at 25 basis points, or 1/4 percent, which helps
insure extremely competitive yields for investors. The ranking firm IBC
recently placed the Tax-Exempt Reserve Fund first and the Money Market Reserve
Fund third in their respective categories based on seven-day yields.*
o We also manage three other money market funds. Cash Reserves Fund is a
convenient vehicle for providing high-quality current yields for investors,
while allowing them quick and easy access to their money through free
checkwriting.
o Invested in securities backed by the federal government or its agencies, U.S.
Government Money Fund is an attractive option for shareholders primarily
concerned with safety of principal in light of Y2K concerns and other issues.
Of INVESCO's five money market fund alternatives, this offers the highest
credit quality.
o Finally, Tax-Free Money Fund helps shelter its investors from federal taxes by
investing in the debt obligations of states and municipalities. (Income may be
subject to state and local taxes, as well as the federal Alternative Minimum
Tax.)
While money market funds are not insured by the federal government, they provide
a low-risk and increasingly convenient cash-management tool for investors. An
investment in these funds is not insured nor guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the funds seek to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the funds.
/s/ Richard R. Hinderlie /s/ Ingeborg S. Cosby
Richard R. Hinderlie Ingeborg S. Cosby
Vice President Vice President
- --------------------------------------------------------------------------------
RICHARD R. HINDERLIE
VICE PRESIDENT, INVESCO FUNDS GROUP. BA, PACIFIC LUTHERAN UNIVERSITY, MBA,
ARIZONA STATE UNIVERSITY. JOINED INVESCO IN 1993. BEGAN INVESTMENT CAREER IN
1973. HAS MANAGED MONEY MARKET RESERVE FUND SINCE 1999.
INGEBORG S. COSBY
VICE PRESIDENT, INVESCO FUNDS GROUP. JOINED INVESCO IN 1985. BEGAN INVESTMENT
CAREER IN 1982. HAS MANAGED TAX-EXEMPT RESERVE FUND SINCE 1999.
*IBC MONEY FUND REPORT, June 29, 1999. IBC is an independent mutual fund analyst
specializing in money market funds. INVESCO Treasurer's Tax-Exempt Reserve
ranked #1 out of 285 tax-free money funds based on its 7-day yield as of June
29, 1999. INVESCO Treasurer's Money Market Reserve ranked #3 out of 250
non-government money funds based on its 7-day yield as of June 29, 1999.
<PAGE>
INVESCO | Annual Report | May 31, 1999
Market Headlines: June 1998 to May 1999
- --------------------------------------------------------------------------------
The strong annual returns recorded at the end of 1998 by large company stock
indexes masked a period of turmoil in the markets as dramatic as any in recent
memory. With investors already nervous about
valuations, confidence evaporated in late summer when the Asian financial crisis
appeared ready to spread like wildfire through the world's emerging markets.
The quick actions of the Federal Reserve Board and bargain-hunting by stoic
investors helped the markets reverse their losses in the early fall. Yet most
important, perhaps, was the continuing strength of the American economy--and
behind it, the American consumer. Low unemployment and interest rates, strong
wage gains, and a resilient level of consumer confidence kept money flowing into
housing and the auto industry, the two bellwether industries for the economy.
Technology stocks led the rebound, as investors looked for the industries with
the highest growth rates and the most pricing leverage.
Throughout the fall and winter, the largest, fastest-growing companies left the
rest of the market behind as investors kept one eye on the continuing problems
overseas and another on the blossoming technological promise of the American
economy. First health care stocks and then telecommunications issues
outdistanced the pack. Meanwhile, cyclical issues suffered, as did many small or
slower-growing company stocks.
By the spring of 1999, however, the threat of economic overheating rather than
worldwide depression loomed largest in many investors' minds. Signs of renewed
economic strength abroad and remarkable growth figures at home led many to
believe that the Federal Reserve would soon reverse course and lead interest
rates higher--and indeed, market interest rates crept upward. Too much growth
rather than too little encouraged many to head for cyclical industries poised to
benefit from improving markets.
As the "cyclical rotation" continued, the market averages seemed to bounce
against a ceiling, putting an end to their dizzying ascent since the fall. With
the economic outlook almost too bright and the market near its record levels,
investors began to speak again of the importance of stock selection and asset
allocation in place of playing the averages.
- --------------------------------------------------------------------------------
YEAR 2000 COMPUTER ISSUE.
Many computer systems in use today may not be able to recognize any date after
December 31, 1999. If these systems are not fixed by that date, it is possible
that they could generate erroneous information or fail altogether. INVESCO has
committed substantial resources in an effort to make sure that its own major
computer systems will continue to function on and after January 1, 2000. Of
course, INVESCO cannot fix systems that are beyond its control. If INVESCO's own
systems, or the systems of third parties upon which it relies, do not perform
properly after December 31, 1999, the Funds could be adversely affected.
In addition, the markets for, or values of, securities in which the Funds invest
may possibly be hurt by computer failures affecting portfolio investments or
trading of securities beginning January 1, 2000. For example, improperly
functioning computer systems could result in securities trade settlement
problems and liquidity issues, production issues for individual companies and
overall economic uncertainties. Individual issuers may incur increased costs in
making their own systems Year 2000 compliant. The combination of market
uncertainty and increased costs means that there is a possibility that Year 2000
computer issues may adversely affect the Funds' investments. At this time, it is
generally believed that foreign issuers, particularly those in emerging and
other markets, may be more vulnerable to Year 2000 problems than will be issuers
in the U.S.
<PAGE>
STATEMENT OF INVESTMENT SECURITIES
INVESCO Treasurer's Series Funds, Inc.
May 31, 1999
<TABLE>
<CAPTION>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Treasurer's Money Market Reserve Fund
100.00 SHORT-TERM INVESTMENTS
87.36 COMMERCIAL PAPER
3.07 ALUMINUM
Aluminum Co of America, 6/15/1999 4.91 $1,800,000 $1,796,619
==========================================================================================================
3.42 AUTO PARTS
PACCAR Financial, 6/4/1999 4.91 2,000,000 1,999,194
==========================================================================================================
7.69 CHEMICALS
Air Products & Chemicals, 6/1/1999 4.99 2,700,000 2,700,000
Great Lakes Chemical, 6/8/1999 4.90 1,800,000 1,798,310
==========================================================================================================
4,498,310
3.07 CONTAINERS
Bemis Inc, 6/7/1999 4.87 1,800,000 1,798,559
==========================================================================================================
11.81 ELECTRIC UTILITIES
National Rural Utilities Coop, 6/11/1999 4.90 2,300,000 2,296,915
Progress Capital Holdings, 6/1/1999 4.88 2,300,000 2,300,000
Tampa Electric, 6/23/1999 4.90 2,320,000 2,313,174
==========================================================================================================
6,910,089
3.92 ELECTRONICS
Motorola Inc, 6/14/1999 4.88 2,300,000 2,296,006
==========================================================================================================
11.44 FINANCIAL -- DIVERSIFIED
General Electric Capital, 6/11/1999 4.93 2,700,000 2,696,360
Greenwich Funding, 6/9/1999 4.92 2,000,000 1,997,846
Siemens Capital, 6/1/1999 4.84 2,000,000 2,000,000
==========================================================================================================
6,694,206
4.09 HEALTH CARE RELATED
Becton Dickinson, 6/21/1999 4.88 2,400,000 2,393,594
==========================================================================================================
1.98 HOUSEHOLD PRODUCTS
Procter & Gamble, 6/7/1999 4.90 1,161,000 1,160,065
==========================================================================================================
6.99 INSURANCE
MetLife Funding, 6/16/1999 4.91 2,300,000 2,295,373
St Paul Cos, 6/14/1999 4.88 1,800,000 1,796,879
==========================================================================================================
4,092,252
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------
5.29 OFFICE EQUIPMENT & SUPPLIES
Avery Dennison, 6/1/1999 5.00 $1,300,000 $1,300,000
Xerox Corp, 6/4/1999 4.88 1,800,000 1,799,278
==========================================================================================================
3,099,278
13.84 OIL & GAS RELATED
BP America, 6/1/1999 4.99 2,700,000 2,700,000
Exxon Imperial, 6/3/1999 4.92 2,700,000 2,699,272
Koch Industries, 6/1/1999 4.98 2,700,000 2,700,000
==========================================================================================================
8,099,272
6.14 PUBLISHING
Gannett Co, 6/4/1999 4.85 1,800,000 1,799,283
New York Times, 6/14/1999 4.87 1,800,000 1,796,885
==========================================================================================================
3,596,168
4.61 SERVICES
Electronic Data Systems, 6/4/1999 4.92 2,700,000 2,698,908
==========================================================================================================
TOTAL COMMERCIAL PAPER
(Amortized Cost $51,132,520) 51,132,520
==========================================================================================================
12.64 MUNICIPAL SHORT-TERM NOTES(a)
4.61 HEALTH CARE RELATED
Fairview Hosp & Hlthcare Svcs of Minnesota,
(MBIA Insured), ACES, Hosp Rev, Series A,
11/1/2015 4.95 2,700,000 2,700,000
==========================================================================================================
8.03 INSURANCE
Health Insurance Plan of Greater New York,
(LOC - Morgan Gty Trust), Gen Oblig,
ACES, Ind Rev, Series B-1, 7/1/2016 4.92 4,700,000 4,700,000
==========================================================================================================
TOTAL MUNICIPAL SHORT-TERM NOTES
(Amortized Cost $7,400,000) 7,400,000
==========================================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Amortized Cost $58,532,520)(b) $58,532,520
==========================================================================================================
Treasurer's Tax-Exempt Reserve Fund
100.00 MUNICIPAL SHORT-TERM INVESTMENTS(A)
21.84 DAILY PUT BONDS
1.59 ALABAMA
Columbia Indl Dev Brd, Alabama (Alabama
Pwr Proj), AR, PCR Ref, 1995 Series
D, 10/1/2022 3.25 $500,000 $500,000
=========================================================================================================
5.08 FLORIDA
Manatee Cnty, Florida (Florida Pwr & Light
Proj), AR, PCR Ref, Series 1994, 9/1/2024 3.30 1,300,000 1,300,000
St Lucie Cnty, Florida (Florida Pwr &
Light Proj), AR, PCR Ref, Series 1993,
1/1/2026 3.30 300,000 300,000
==========================================================================================================
1,600,000
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------
0.32 GEORGIA
Burke Cnty Dev Auth, Georgia (Georgia Pwr
Plant Vogtle Proj), AR, PCR, Fifth
Series 1994, 7/1/2024 3.25 $100,000 $100,000
==========================================================================================================
3.18 MASSACHUSETTS
Massachusetts Hlth & Edl Facils Auth,
(Williams College Issue, Series F),
AR, Rev, Series 1997 SGA 65, 7/1/2026 3.35 1,000,000 1,000,000
==========================================================================================================
2.78 NEW YORK
New York Energy Research & Dev Auth,
(New York State Elec & Gas Proj)(LOC -
Morgan Gty Trust), AR, PCR Ref, 1994
Series C, 6/1/2029 3.15 875,000 875,000
==========================================================================================================
5.40 TEXAS
Harris Cnty Indl Dev, Texas (Shell Oil
Proj), AR, PCR Ref, Series 1997, 4/1/2027 3.30 1,700,000 1,700,000
==========================================================================================================
1.90 WASHINGTON
Washington Hlth Care Facils Auth, (Virginia
Mason Med Ctr), VRD, Rev, Series 1997B,
2/15/2027 3.25 600,000 600,000
==========================================================================================================
1.59 WYOMING
Lincoln Cnty, Wyoming (Exxon Corp Proj),
DATES, PCR, Series 1984C, 11/1/2014 3.20 500,000 500,000
==========================================================================================================
TOTAL DAILY PUT BONDS
(Amortized Cost $6,875,000) 6,875,000
==========================================================================================================
75.30 WEEKLY PUT BONDS
5.40 ALASKA
Alaska Hsg Fin Corp, VR, Gen Mtg Rev, 1991
Series C, 6/1/2026 3.35 900,000 900,000
Alaska Indl Dev & Export Auth (Fairbanks
Gold Mining Proj)(Amax Gold), AR, Exmp
Facil Rev, Series 1997, 5/1/2009 3.45 800,000 800,000
==========================================================================================================
1,700,000
12.01 ARIZONA
Apache Cnty Indl Dev Auth, Arizona (Tuscon
Elec Pwr Springerville Proj)(LOC - Toronto
Dominion Bank),
AR, IDR, 1985 Series A, 12/1/2020 3.35 400,000 400,000
VR, IDR, 1983 Series A, 12/15/2018 3.25 400,000 400,000
Avondale Indl Dev Auth, Arizona (Natl Hlth
Inv Proj)(LOC - Dresdner Bank AG), VRD,
IDR Ref, Series 1997, 12/1/2014 3.30 150,000 150,000
Maricopa Cnty Indl Dev Auth, Arizona
(McLane Co Proj)(LOC - Valley Natl Bank
of Arizona), VRD, Rev, Series 1984,
10/1/2004 3.75 1,080,000 1,080,000
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------
Pima Cnty Indl Dev Auth, Arizona (Tuscon
Elec Pwr Irvington Proj)(LOC - Societe
Generale), FRD, IDR, 1982 Series A,
10/1/2022 3.40 $1,000,000 $1,000,000
Pima Cnty Indl Dev Auth, Arizona (Tuscon
Elec Pwr Proj)(LOC - Toronto Dominion
Bank), F/VR, IDR, 1982 Series A,
12/1/2022 3.25 750,000 750,000
==========================================================================================================
3,780,000
3.18 COLORADO
El Paso Cnty, Colorado (Briarglen Apts Proj)
(LOC - General Electric Cap), AR,
Multifamily Hsg Rev Ref, Series 1994,
12/1/2024 3.35 1,000,000 1,000,000
==========================================================================================================
2.22 FLORIDA
Dade Cnty, Florida (LOC-Morgan Gty Trust),
VRD, Aviation Rev, Series 1984A, 10/1/2009 3.35 600,000 600,000
Tampa, Florida (FGIC Insured), VR,
Occupational License Tax, Series 1996A,
10/1/2018 3.35 100,000 100,000
==========================================================================================================
700,000
6.28 GEORGIA
DeKalb Cnty Hsg Auth, Georgia (Wood Terrace
Apts Proj), VRD, Multifamily Hsg Rev Ref,
Series 1995, 12/15/2015 3.25 1,000,000 1,000,000
Georgia Muni Assn (MBIA Insured), AR,
Ctfs of Participation, 12/15/2020 3.25 979,032 979,032
==========================================================================================================
1,979,032
3.18 KENTUCKY
Kentucky Econ Dev Fin Auth (Greater
Cincinnati Hlth Alliance)(MBIA Insured),
AR, Hosp Facils Rev, Series 1997C,
1/1/2022 3.40 1,000,000 1,000,000
==========================================================================================================
9.53 MARYLAND
Frederick Cnty, Maryland (Sheppard Pratt
Residential Treatment Facil)(LOC - Societe
General Bank), VRD/FR, Rev, Series 1995,
7/1/2025 3.30 2,100,000 2,100,000
Montgomery Cnty Hsg Opportunities Commn,
Maryland, V/FR, Multifamily Hsg Rev, 1988
Issue A, 7/15/2007 3.35 900,000 900,000
==========================================================================================================
3,000,000
0.63 MICHIGAN
Michigan Hsg Dev Auth (Harbortown Ltd)
(LOC - Bankers Trust), F/VR, Ltd Oblig
Ref, 6/1/2004 3.48 200,000 200,000
==========================================================================================================
6.67 MISSOURI
Missouri Hlth & Edl Facils Auth (Sisters of
Mercy Hlth System, St Louis), VRD, BEARS,
Hlth Facils Rev, Series 1995B, 12/1/2016 3.20 1,200,000 1,200,000
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------
St Louis Cnty Indl Dev Auth, Missouri
(Schnuck Mkts, Kirkwood Proj)(LOC -
Bankers Trust), F/VR, IDR, Series 1985,
12/1/2015 3.48 $900,000 $900,000
==========================================================================================================
2,100,000
3.81 NEW HAMPSHIRE
New Hamphire Bus Fin Auth (Wheelabrator
Concord LP Proj)(LOC - Wachovia Bank NA),
AR, Resource Recovery Ref Rev, 1997
Series B, 1/1/2018 3.30 1,200,000 1,200,000
==========================================================================================================
0.63 NORTH CAROLINA
East Carolina Univ, North Carolina (Dowdy-
Ficklen Stadium Proj)(LOC - Wachovia Bank
of North Carolina), VRD, Athletic Dept
Rev, Series 1996, 5/1/2017 3.20 200,000 200,000
==========================================================================================================
3.18 OHIO
Lorain Cnty, Ohio (Catholic Healthcare
Partners), AR, Hosp Facils Rev, Series
1998 A, 12/1/2027 3.20 1,000,000 1,000,000
==========================================================================================================
3.18 OKLAHOMA
Tulsa Intl Airport, Oklahoma (FGIC Insured),
VRD, Gen Rev, Series 1996, 6/1/2018 3.25 1,000,000 1,000,000
==========================================================================================================
1.59 SOUTH CAROLINA
Dorchester Cnty, South Carolina (BOC Group
Proj) (LOC - Wachovia Bank of Georgia, NA),
TEAMS, Pollution Ctl Facils Rev Ref,
Series 1993, 12/8/2000 3.30 500,000 500,000
==========================================================================================================
4.60 TENNESSEE
Nashville & Davidson Cnty Metro Govt Indl
Dev Brd, Tennessee (Multfamily Chimneytop
II)(LOC - Bank of America), VR, Rev,
9/1/2006 3.40 1,150,000 1,150,000
Nashville Metro Airport Auth, Tennessee
(LOC - Societe Generale)(FGIC Insured),
AR, Airport Impt Rev Ref, Series 1993,
7/1/2019 3.40 300,000 300,000
==========================================================================================================
1,450,000
1.27 TEXAS
Bexar Cnty Hlth Facils Dev, Texas
(Retirement Cmnty - Air Force)(LOC -
Rabobank Nederland), AR, Rev, Series
1985B, 3/1/2012 3.35 400,000 400,000
==========================================================================================================
1.59 WASHINGTON
Seattle, Washington, AR, Muni Light & Pwr
Rev, Series 1993, 11/1/2018 3.35 300,000 300,000
Washington Hsg Fin Commn (Pac First Fed
Svgs Bank Proj)(LOC - Fed Home Ln Bank),
VRD, Multifamily Mtg Rev Ref, Series
1988B, 10/1/2020 3.25 200,000 200,000
==========================================================================================================
500,000
<PAGE>
EFFECTIVE
INTEREST PRINCIPAL
% DESCRIPTION RATE % AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------
6.35 WYOMING
Green River, Wyoming (Allied Corp Proj),
F/FR, PCR Ref, 1982 Series, 12/1/2012 4.39 $2,000,000 $2,000,000
==========================================================================================================
TOTAL WEEKLY PUT BONDS
(Amortized Cost $23,709,032) 23,709,032
==========================================================================================================
2.86 MONTHLY PUT BONDS
2.86 FLORIDA
Marion Cnty Indl Dev Auth, Florida
(Florida Convalescent Ctrs Proj)(LOC-
Toronto Dominion Bank), VRD/FR, IDR
Ref, Series 1988A, 1/1/2011
(Cost $900,000) 3.40 $900,000 900,000
==========================================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Amortized Cost $31,484,032)(b) $31,484,032
==========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
The following abbreviations may be used in portfolio descriptions:
<S> <C> <C> <C> <C> <C>
ACES(c) -- Adjustable Convertible Extendable Securities LOC -- Letter of Credit
AR(c) -- Adjustable Rate MBIA -- Municipal Bond Investors
BEARS -- Bondholders Extendable Adjustable Assurance Corporation
Return Securities PCR -- Pollution Control Revenue
DATES(c) -- Daily Adjustable Tax-Exempt Securities TEAMS(c) -- Tax-Exempt Adjustable Mode
Securities
F/FR -- Floating Fixed Rate V/FR(c) -- Variable/Fixed Rate
F/VR(c) -- Floating/Variable Rate VR(c) -- Variable Rate
FRD(c) -- Floating Rate Demand VRD(c) -- Variable Rate Demand
FGIC -- Financial Guaranty Insurance Company VRD/FR(c) -- Variable Rate Demand/Fixed Rate
IDR -- Industrial Development Revenue
</TABLE>
(a) 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.
(b) Also represents cost for income tax purposes.
(c) Rate is subject to change. Rate shown reflects current rate.
See Notes to Financial Statements
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
INVESCO Treasurer's Series Funds, Inc.
May 31, 1999
TREASURER'S TREASURER'S
MONEY MARKET TAX-EXEMPT
RESERVE FUND RESERVE FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost $58,532,520 $31,484,032
================================================================================
At Value $58,532,520 $31,484,032
Cash 30,670 93,115
Receivables:
Fund Shares Sold 68,422 0
Interest 28,941 109,118
================================================================================
TOTAL ASSETS 58,660,553 31,686,265
================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 1,377 566
Fund Shares Repurchased 6,262,849 1,311,950
Accrued Expenses and Other Payables 460 5
================================================================================
TOTAL LIABILITIES 6,264,686 1,312,521
================================================================================
NET ASSETS AT VALUE $52,395,867 $30,373,744
================================================================================
Shares Outstanding(a) 52,395,867 30,373,744
NET ASSET VALUE, Offering and Redemption
Price per Share $ 1.00 $ 1.00
================================================================================
(a) The Fund has 500 million authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to each
individual Fund. Paid-in capital was $52,395,867 and $30,373,744 for
Treasurer's Money Market Reserve and Treasurer's Tax-Exempt Reserve Funds,
respectively.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
Treasurer's Money Market Reserve Fund
PERIOD YEAR
ENDED ENDED
MAY 31 DECEMBER 31
- --------------------------------------------------------------------------------
1999 1998
(Note 1)
INVESTMENT INCOME
INTEREST INCOME $878,670 $3,153,478
EXPENSES
Investment Advisory Fees 44,330 141,183
================================================================================
NET INVESTMENT INCOME AND NET INCREASE IN
NET ASSETS FROM OPERATIONS $834,340 $3,012,295
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
Treasurer's Tax-Exempt Reserve Fund
PERIOD YEAR
ENDED ENDED
MAY 31 DECEMBER 31
- --------------------------------------------------------------------------------
1999 1998
(Note 1)
INVESTMENT INCOME
INTEREST INCOME $458,641 $1,160,926
EXPENSES
Investment Advisory Fees 36,935 79,720
================================================================================
NET INVESTMENT INCOME AND NET INCREASE IN
NET ASSETS FROM OPERATIONS $421,706 $1,081,206
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Treasurer's Money Market Reserve Fund
<TABLE>
<CAPTION>
PERIOD YEAR YEAR
ENDED ENDED ENDED
MAY 31 DECEMBER 31 DECEMBER 31
- -------------------------------------------------------------------------------------------
1999 1998 1997
(Note 1)
<S> <C> <C> <C>
OPERATIONS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net Investment Income Earned and
Distributed to Shareholders $ 834,340 $ 3,012,295 $ 5,457,357
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares $145,411,371 $484,696,941 907,820,795
Reinvestment of Dividends 821,471 2,978,475 5,366,818
===========================================================================================
146,232,842 487,675,416 913,187,613
Amounts Paid for Repurchases
of Shares (128,073,404) (520,584,938) (959,322,893)
===========================================================================================
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS 18,159,438 (32,909,522) (46,135,280)
NET ASSETS
Beginning of Period 34,236,429 67,145,951 113,281,231
===========================================================================================
End of Period $52,395,867 $34,236,429 $67,145,951
===========================================================================================
--------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 145,411,371 484,696,941 907,820,795
Shares Issued from Reinvestment
of Dividends 821,471 2,978,475 5,366,818
===========================================================================================
146,232,842 487,675,416 913,187,613
Shares Repurchased (128,073,404) (520,584,938) (959,322,893)
===========================================================================================
NET INCREASE (DECREASE) IN
FUND SHARES 18,159,438 (32,909,522) (46,135,280)
===========================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Treasurer's Tax-Exempt Reserve Fund
PERIOD YEAR YEAR
ENDED ENDED ENDED
MAY 31 DECEMBER 31 DECEMBER 31
- -------------------------------------------------------------------------------------------
1999 1998 1997
(Note 1)
OPERATIONS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net Investment Income Earned and
Distributed to Shareholders $ 421,706 $ 1,081,206 $ 728,737
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares $19,765,537 $72,911,901 31,372,456
Reinvestment of Dividends 417,341 1,072,533 711,015
===========================================================================================
20,182,878 73,984,434 32,083,471
Amounts Paid for Repurchases
of Shares (26,516,605) (59,361,188) (33,385,365)
===========================================================================================
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS (6,333,727) 14,623,246 (1,301,894)
NET ASSETS
Beginning of Period 36,707,471 22,084,225 23,386,119
===========================================================================================
End of Period $30,373,744 $36,707,471 $22,084,225
===========================================================================================
--------------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 19,765,537 72,911,901 31,372,456
Shares Issued from Reinvestment
of Dividends 417,341 1,072,533 711,015
===========================================================================================
20,182,878 73,984,434 32,083,471
Shares Repurchased (26,516,605) (59,361,188) (33,385,365)
===========================================================================================
NET INCREASE (DECREASE) IN
FUND SHARES (6,333,727) 14,623,246 (1,301,894)
===========================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Notes to financial statements -- INVESCO Treasurer's Series Funds, Inc.
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Treasurer's
Series Funds, Inc. (the "Fund")(formerly known as INVESCO Treasurer's Series
Trust) is incorporated in Maryland (formerly organized under the laws of the
Commonwealth of Massachusetts) and consists of two separate funds: INVESCO
Treasurer's Money Market Reserve Fund ("Money Fund") and INVESCO Treasurer's
Tax-Exempt Reserve Fund ("Tax-Exempt Fund"). On February 3, 1999 the Fund's
board of directors approved a name change to INVESCO Treasurer's Series Fund,
Inc. 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. The Fund is registered under the Investment Company
Act of 1940 (the "Act") as a diversified, open-end management investment
company. The Fund's fiscal year-end was changed from December 31 to May 31.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION -- Securities held by the Fund are valued at their market
value determined by the amortized cost method of valuation. 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 under procedures
established by the Fund's board of directors.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date. Interest income, which may be comprised of
stated coupon rate, market discount, original issue discount and amortized
premium, is recorded on the accrual basis. The Fund amortizes discounts and
premiums paid on purchases of securities to the earliest put or call date. Cost
is determined on the specific identification basis.
C. FEDERAL AND STATE TAXES -- The Fund has complied, and continues to comply,
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, has made or intends to make sufficient
distributions of net investment income and net realized capital gains, if any,
to relieve it from all federal and state income taxes and federal excise taxes.
Of the distributions paid by Tax-Exempt Fund for the period ended May 31, 1999,
93.31% were exempt from federal income taxes.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- All of the Fund's net
investment income is distributed to shareholders by dividends declared daily and
paid monthly. Income dividends are reinvested at the month-end net asset value.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Capital Management,
Inc. ("ICM") served as the Fund's investment adviser. As compensation for its
services to the Fund, ICM received an investment advisory fee which was accrued
daily at the applicable rate and paid monthly. The fee for each Fund was based
on the annual rate of 0.25% of each Fund's average net assets. ICM was also
responsible for providing certain administrative and clerical services and
facilities necessary for the operation of the Fund. In accordance with the
Investment Advisory Agreement, ICM bore all other expenses of the Funds, except
taxes, interest and brokerage commissions. Effective June 1, 1999, such
responsibilities were transferred to INVESCO Funds Group, Inc. ("IFG").
<PAGE>
NOTE 3-- TRANSACTIONS WITH AFFILIATES. Certain of the Funds' officers and
directors are also officers and directors of ICM or IFG.
Each Fund has adopted an unfunded defined benefit deferred compensation plan
covering all independent directors of the Fund who will have served as an
independent director for at least five years at the time of retirement. Benefits
under this plan are based on an annual rate equal to 50% of the sum of the
retainer fee at the time of retirement plus the annual meeting fee.
For the period ended May 31, 1999, pension expenses, unfunded accrued pension
costs and pension liability were paid by ICM in accordance with the Investment
Advisory Agreement and were as follows:
UNFUNDED
PENSION ACCRUED PENSION
FUND EXPENSES PENSION COSTS LIABILITY
- --------------------------------------------------------------------------------
Money Fund $272 $4,884 $13,490
Tax-Exempt Fund 273 1,522 3,328
The independent directors have contributed to a deferred fee agreement, pursuant
to which they have deferred receipt of a portion of the compensation which they
would otherwise have been paid as directors of selected INVESCO Funds. The
deferred amounts may be invested in the shares of any of the INVESCO Funds.
--------------------------------------------------------
Report of Independent Accountants
To the Board of Directors and Shareholders of
INVESCO Treasurer's Series Funds, Inc.
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 (constituting
INVESCO Treasurer's Series Funds, Inc., formerly INVESCO Treasurer's Series
Trust, hereafter referred to as the "Fund") at May 31, 1999, the results of each
of their operations for each of the periods indicated, the changes in each of
their net assets for each of the periods indicated and the financial highlights
for each of the periods indicated, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at May 31, 1999 by correspondence with the custodian,
provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Denver, Colorado
July 6, 1999
<PAGE>
FINANCIAL HIGHLIGHTS
Treasurer's Money Market Reserve Fund
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
PERIOD
ENDED
MAY 31 YEAR ENDED DECEMBER 31
- ----------------------------------------------------------------------------------------------
1999(a) 1998 1997 1996 1995 1994
<S> <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
==============================================================================================
INCOME AND DISTRIBUTIONS
FROM INVESTMENT
OPERATIONS
NET INVESTMENT INCOME
EARNED AND DISTRIBUTED
TO SHAREHOLDERS 0.02 0.05 0.05 0.05 0.06 0.04
==============================================================================================
Net Asset Value--
End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==============================================================================================
TOTAL RETURN 1.90%(b) 5.46% 5.48% 5.30% 5.82% 4.13%
RATIOS
Net Assets -- End of Period
($000 Omitted) $52,396 $34,236 $67,146 $113,281 $141,885 $93,131
Ratio of Expenses to Average
Net Assets 0.25%(c) 0.25% 0.25% 0.25% 0.25% 0.25%
Ratio of Net Investment Income
to Average Net Assets 4.78%(c) 5.35% 5.32% 5.17% 5.71% 4.02%
</TABLE>
(a) From January 1, 1999 to May 31, 1999, the Fund's current fiscal year end.
(b) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(c) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
Treasurer's Tax-Exempt Reserve Fund
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
PERIOD
ENDED
MAY 31 YEAR ENDED DECEMBER 31
- ----------------------------------------------------------------------------------------------
1999(a) 1998 1997 1996 1995 1994
<S> <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
==============================================================================================
INCOME AND DISTRIBUTIONS
FROM INVESTMENT
OPERATIONS
NET INVESTMENT INCOME
EARNED AND DISTRIBUTED
TO SHAREHOLDERS 0.01 0.03 0.04 0.03 0.04 0.03
==============================================================================================
Net Asset Value--
End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==============================================================================================
TOTAL RETURN 1.16%(b) 3.49% 3.74% 3.45% 3.90% 2.81%
RATIOS
Net Assets -- End of Period
($000 Omitted) $30,374 $36,707 $22,084 $23,386 $21,928 $19,716
Ratio of Expenses to Average
Net Assets 0.25%(c) 0.25% 0.25% 0.25% 0.25% 0.25%
Ratio of Net Investment Income
to Average Net Assets 2.92%(c) 3.38% 3.68% 3.40% 3.86% 2.69%
</TABLE>
(a) From January 1, 1999 to May 31, 1999, the Fund's current fiscal year end.
(b) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(c) Annualized
<PAGE>
OTHER INFORMATION
UNAUDITED
On May 20, 1999, a special meeting of the shareholders of the Fund was held at
which the ten directors identified below were elected. The selection of
PricewaterhouseCoopers LLP as independent accountants (Proposal 1), the approval
of changes to the fundamental investment restrictions identified below (Proposal
2), the approval of an Agreement and Plan of Conversion and Termination
providing for the conversion of the Fund from a series of INVESCO Treasurer's
Series Trust, a Massachusetts business trust, into a separate series of INVESCO
Treasurer's Series Funds, Inc., a Maryland corporation, (Proposal 3) and the
approval of the proposed Investment Advisory agreement with INVESCO Funds Group,
Inc. (Proposal 4) were ratified. The following is a report of the votes cast:
<TABLE>
<CAPTION>
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Treasurer's Money Market Reserve Fund
Charles W. Brady 27,485,691 0 0 27,485,691
Fred A. Deering 27,485,691 0 0 27,485,691
Mark H. Williamson 27,485,691 0 0 27,485,691
Dr. Victor L. Andrews 27,485,691 0 0 27,485,691
Bob R. Baker 27,485,691 0 0 27,485,691
Lawrence H. Budner 27,485,691 0 0 27,485,691
Dr. Wendy Lee Gramm 27,485,691 0 0 27,485,691
Kenneth T. King 27,485,691 0 0 27,485,691
John W. McIntyre 27,485,691 0 0 27,485,691
Dr. Larry Soll 27,485,691 0 0 27,485,691
Proposal 1 27,332,296 153,395 0 27,485,691
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Industry concentration 27,485,691 0 0 27,485,691
b --Issuer diversification 27,485,691 0 0 27,485,691
c --Underwriting securities 27,485,691 0 0 27,485,691
d --Borrowing and adoption of
non-fundamental restriction
on borrowing 27,485,691 0 0 27,485,691
e --The issuance of senior
securities 27,485,691 0 0 27,485,691
f --Real estate investments 27,485,691 0 0 27,485,691
g --Investing in commodities 27,485,691 0 0 27,485,691
h --Loans 27,485,691 0 0 27,485,691
i --Investing in another
investment company and
adoption of non-fundamental
investment restriction
regarding investment in
securities issued by other
investment companies 27,485,691 0 0 27,485,691
Elimination of Fundamental
Investment Restrictions on:
j -- Investing in companies for
the purpose of exercising
control or management 27,485,691 0 0 27,485,691
k --Mortgaging, pledging or
hypothecating securities 27,485,691 0 0 27,485,691
<PAGE>
OTHER INFORMATION (CONTINUED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- ------------------------------------------------------------------------------------------------
Treasurer's Money Market Reserve Fund (continued)
l -- Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 27,485,691 0 0 27,485,691
m --Illiquid securities and
adoption of non-fundamental
policy on illiquid securities 27,485,691 0 0 27,485,691
To make non-fundamental: 27,485,691 0 0 27,485,691
n --The policy with respect to
tax-free obligations
(Tax-Exempt Fund only) 27,485,691 0 0 27,485,691
Proposal 3 27,485,691 0 0 27,485,691
Proposal 4 27,485,691 0 0 27,485,691
Treasurer's Tax-Exempt Reserve Fund
Charles W. Brady 41,308,150 0 468,279 41,776,429
Fred A. Deering 41,308,150 0 468,279 41,776,429
Mark H. Williamson 41,308,150 0 468,279 41,776,429
Dr. Victor L. Andrews 41,308,150 0 468,279 41,776,429
Bob R. Baker 41,308,150 0 468,279 41,776,429
Lawrence H. Budner 41,308,150 0 468,279 41,776,429
Dr. Wendy Lee Gramm 41,308,150 0 468,279 41,776,429
Kenneth T. King 41,308,150 0 468,279 41,776,429
John W. McIntyre 41,308,150 0 468,279 41,776,429
Dr. Larry Soll 41,308,150 0 468,279 41,776,429
Proposal 1 41,776,429 0 0 41,776,429
Proposal 2
Modification of Fundamental
Investment Restrictions on:
a --Industry concentration 39,193,264 2,568,004 15,160 41,776,428
b --Issuer diversification 39,193,264 2,568,004 15,160 41,776,428
c --Underwriting securities 39,193,264 2,568,004 15,160 41,776,428
d --Borrowing and adoption of
non-fundamental restriction
on borrowing 39,193,264 2,568,004 15,160 41,776,428
e --The issuance of senior
securities 39,193,264 2,568,004 15,160 41,776,428
f --Real estate investments 39,193,264 2,568,004 15,160 41,776,428
g --Investing in commodities 39,193,264 2,568,004 15,160 41,776,428
h --Loans 39,193,264 2,568,004 15,160 41,776,428
i --Investing in another
investment company and
adoption of non-fundamental
investment restriction regarding
investment in securities
issued by other investment
companies 39,193,264 2,568,004 15,160 41,776,428
<PAGE>
OTHER INFORMATION (CONTINUIED)
WITHHELD/
NOMINEE/PROPOSAL FOR AGAINST ABSTAIN TOTAL
- ------------------------------------------------------------------------------------------------
Treasurer's Tax-Exempt Reserve Fund (Continued)
Elimination of Fundamental
Investment Restrictions on:
j -- Investing in companies for
the purpose of exercising
control or management 39,193,264 2,568,004 15,160 41,776,428
k --Mortgaging, pledging or
hypothecating securities 39,193,264 2,568,004 15,160 41,776,428
l --Short sales and margin
purchases and adoption of
non-fundamental restriction
on short sales and margin
purchases 39,193,264 2,568,004 15,160 41,776,428
m --Illiquid securities and
adoption of non-fundamental
policy on illiquid securities 39,193,264 2,568,004 15,160 41,776,428
To make non-fundamental: 39,193,264 2,568,004 15,160 41,776,428
n --The policy with respect to
tax-free obligations
(Tax-Exempt Fund only) 39,193,264 2,568,004 15,160 41,776,428
Proposal 3 41,776,429 0 0 41,776,429
Proposal 4 41,761,268 0 15,160 41,776,428
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INVESCO Family of Funds
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
International
International Blue Chip 09 IIBCX ItlBlChp
Pacific Basin 54 FPBSX PcBas
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
- -----------------------------------------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Realty 42 IVSRX Realty
Technology-Class II 55 FTCHX Tech
Utilities 58 FSTUX Util
Worldwide Communications 39 ISWCX WldCom
(as of 7/30/99, Telecommunications) (as of 8/1/99 Telecomm)
- -----------------------------------------------------------------------------------------------------------------
Stock
Growth & Income 21 IVGIX Gro&Inc
INVESCO Endeavor 61 IVENX Endeavor
Blue Chip Growth 10 FLRFX BlChpGro
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
Value Equity 46 FSEQX ValEq
S&P 500 Index Fund-Class II 23 ISPIX SP500II
- -----------------------------------------------------------------------------------------------------------------
Combination Stock & Bond
Industrial Income 15 FIIIX IndInc
(as of 7/30/99, Equity Income) (as of 8/1/99, EquityInc)
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- -----------------------------------------------------------------------------------------------------------------
Bond
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
Tax-Free Bond 35 FTIFX TxFre
(formerly, Tax-Free Long-Term Bond)
- -----------------------------------------------------------------------------------------------------------------
Money Market
U.S. Government Money Fund 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money Fund 40 FFRXX InvTaxFree
Money Market Reserve 96 IMRXX INVESCOMMR
Tax-Exempt Reserve 95 ITTXX INVESCOTTE
</TABLE>
FOR MORE INFORMATION ABOUT ANY OF THE INVESCO FUNDS, INCLUDING MANAGEMENT FEES
AND EXPENSES, PLEASE CALL US AT 1-800-525-8085 FOR A PROSPECTUS. READ IT
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
<PAGE>
[INVESCO ICON]
INVESCO
YOU SHOULD
KNOW WHAT
INVESCO KNOWS (TM)
We're easy to stay in touch with:
Investor Services: 1-800-525-8085
PAL(R), your personal account line: 1-800-424-8085
On the World Wide Web: www.invesco.com
In Denver, visit one of our convenient Investor Centers:
Cherry Creek,
3003 East Third Avenue, Suite 1
Denver Tech Center, 7800 East Union Avenue, Lobby Level
INVESCO Distributors, Inc.(SM), Distributor
Post Office Box 173706
Denver, CO 80217-3706
This information must be preceded or accompanied by a current prospectus.
ATR 9014 6/99
