SEMIANNUAL REPORT
INVESCO GLOBAL HEALTH SCIENCES FUND
APRIL 30, 2000
[INVESCO ICON] INVESCO FUNDS
A MEMBER OF THE AMVESCAP GROUP
<PAGE>
TABLE OF CONTENTS
Letter From The Chairman . . . . . . . . . . . . . . . .3
Review & Outlook . . . . . . . . . . . . . . . . . . . .5
10 Largest Common Stock Holdings . . . . . . . . . . . .9
Financial Statements . . . . . . . . . . . . . . . . . .9
Notes To Financial Statements . . . . . . . . . . . . .19
Financial Highlights . . . . . . . . . . . . . . . . . 24
Other Information. . . . . . . . . . . . . . . . . . . 25
Trustees And Officers. . . . . . . . . . . . . . . . . 28
Shareholder Information. . . . . . . . . . . . . . . . 29
<TABLE>
<CAPTION>
INVESCO GLOBAL HEALTH SCIENCES FUND
For the 6 Months For the 12 Months Ended 10/31
Ended 4/30/2000 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value--
Total Return(1)(4) 7.05%(2) 4.90% 20.74% 18.60% 20.10% 49.52%
Share Price--Total Return(1)(4) 3.83%(2) 4.74% 40.29% 32.98% 15.25% 47.50%
Total Distributions $1.4246 $4.0846 $3.9248 $4.4727 $0.00 $0.00
Total Net Assets--
End of Period (000) $689.6 $678.0 $586.3 $526.2 $455.8 $379.5
Ratio of Expenses
to Average Net Assets 0.58%(2)(3) 1.20%(3) 1.21%(3) 1.22%(3) 1.21% 1.33%
Portfolio Turnover Rate 126%(2) 129% 87% 145% 91% 105%
</TABLE>
(1) PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
(2) BASED ON OPERATIONS FOR THE PERIOD SHOWN AND, ACCORDINGLY,
ARE NOT REPRESENTATIVE OF A FULL YEAR.
(3) RATIO IS BASED ON TOTAL EXPENSES OF THE FUND, WHICH IS BEFORE ANY EXPENSE
OFFSET ARRANGEMENTS.
(4) TOTAL RETURN ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS.
<PAGE>
LETTER FROM THE CHAIRMAN
DEAR SHAREHOLDER:
U.S. markets have been very volatile over the past six months as investors
weighed the risk of higher interest rates against positive news on earnings.
European markets also rose despite the the weakness in the euro. The Asian
markets continued to recover; however, prospects for Japan remained clouded by
the country's uncertain political future and its dependence on exports to the
United States.
Against this backdrop, major U.S. indexes ended 1999 on a strong note, and
rose to new heights early in 2000. Gains were led by soaring New Economy shares,
as growth stocks continued to outperform value stocks. At the same time, small-
and mid-cap stocks posted healthy gains, outpacing large-cap stocks for the
first time in years. Biotechnology and technology stocks were among the main
beneficiaries of investor enthusiasm, supported by their positive long-term
industry fundamentals and their perceived immunity to interest rate pressures.
The dominance of New Economy stocks came to an end in March, however, after
concern over high valuations led to a rotation into more traditional Old Economy
stocks. A renewed focus on fundamentals also led investors to favor large-cap
companies at the expense of developing businesses. Amid this correction, biotech
shares sold off after a flood of new biotech issues dried up market liquidity
and pressured valuations. President Clinton's stated opposition to granting
patent protection to genetic discoveries also weighed heavily on biotech shares.
FUND PERFORMANCE
For the six months ended April 30, 2000, the fund had a total return of
7.05% based on net asset value, and a return of 3.83% based on market price. For
the cumulative three-year period ended April 30, 2000, the fund had a total
return of 55.07% based on net asset value, and 76.08% based on stock price
performance. Of course, past performance is no guarantee of future results.
Despite its strong performance, INVESCO Global Health Sciences Fund
continues to trade at a discount to net asset value. Nonetheless, this discount
has narrowed from year-end 1999 levels and remains lower than that of its two
closed-end peers. The fund paid two distributions in the six-month period ended
April 30, 2000, in conjunction with its 2.5% managed distribution policy.
INVESCO Global Health Sciences Fund continues to trade in line with the
health care sector. Our performance over the period benefited from our decision
to boost our biotech weighting late in 1999, which enabled us to participate in
the February rally. Because we felt that the sharp run-up in share prices left
us overweighted in the biotech area, we subsequently began trimming our
exposure. Unfortunately, we did not scale back our positions fast enough to
escape the March sell-off in biotech shares, which hurt our results later in the
period.
<PAGE>
GRAPH: INVESCO GLOBAL HEALTH SCIENCES FUND
MONTHLY DISCOUNT/PREMIUM 1/31/95 - 4/30/00
This line graph illustrates the monthly discount/premium for INVESCO
Global Health Sciences Fund for the period 1/31/95 to 4/30/00.
Our performance was aided, however, by our weighting in leading
pharmaceutical stocks, which investors favored later in the period for their
greater earnings visibility and stability.
We expect world markets to remain volatile in the near-term. Nonetheless,
we believe this kind of environment can work to our advantage, providing
opportunities to add to our favorite names. We believe our focus on leading
companies with strong earnings potential will leave us well positioned to take
advantage of any improvement in the health sciences area. We also believe it
will heighten investors' preference for the kinds of fast-growing, highly
profitable companies in which we invest.
Sincerely,
/s/ Mark H. Williamson
Mark H. Williamson
Chairman
<PAGE>
A REPORT FROM THE MANAGER
REVIEW & OUTLOOK
Despite recent volatility, we have maintained our core philosophy of investing
in companies that we believe exhibit strong fundamentals, represent a good
investment value and will deliver consistent returns to our investors. For the
six-month period ended April 30, 2000, the fund had market returns of 3.83%,
while the NAV appreciated 7.05%. (Of course, past performance is no guarantee of
future results.)
Volatility can be harrowing for shareholders, but it can also work in our favor.
Challenging periods such as these often allow us add to our favorite names when
they are trading at attractive valuations. For this reason, we have increased
our cash balance, which leaves us with "dry powder" to put to work as
opportunities arise.
In the following paragraphs, we summarize our views for each of the health care
sub-sectors in which the fund invests.
BIOTECHNOLOGY
Biotechnology stocks staged a significant rally over the past six months and,
even with the recent sell-off, the AMEX Biotechnology Index rose 85.9% during
this period. The industry outperformed all other health care sub-sectors in
1999, and its outperformance continued through the early part of this year, with
the Index reaching an all-time high of 794.53% on March 6, 2000. Performance has
been fueled by robust sales growth, strong earnings performance, and a
significant number of product introductions.
GRAPH: MATURATION OF THE BIOTECH PIPELINES
BIOTECH THERAPUETIC PRODUCTS APPROVED OR LIKELY TO BE APPROVED
This bar graph illustrates the number of biotech products approved or
likely to be approved for the period of 1982 to 2001.
Another important factor has been investor interest in the fields of genomics
and monoclonal antibodies. The Human Genome Project, which involves mapping the
entire human genome, has been underway for several years and is now nearing
completion. This prospect has fueled performance of biotechnology stocks,
particularly shares in human genome companies.
On March 14, however, comments by President Clinton appeared to cast doubt on
private companies' rights to patent their genomic discoveries. This triggered an
aggressive sell-off in biotech shares. We believe the announcement was
misinterpreted and that the sell-off was an overreaction. The mapping of the
human genome is only the first step in a complex and potentially lucrative
discovery process. The real breakthroughs will lie in the potential discoveries
or synthesis of related compounds. Companies focusing their efforts on taking
the genetic information and developing patentable products are poised to benefit
from these advances.
<PAGE>
Despite the recent volatile performance of biotech companies, we believe their
fundamentals remain strong. Within the industry, there is an unprecedented
number of products in Phase II and Phase III trials, as well as several
anticipated launches for 2000. Biotech companies with marketed products are
experiencing both revenue and earnings growth. There is also high growth
potential for the industry as a number of genomics companies shift from genome
mapping to product development. Both Human Genome Sciences and Millennium
Pharmaceuticals, the top genomics holdings in our portfolio, are moving beyond
genome mapping to focus on product discoveries and pipeline development.
Genetech Inc. and MedImmune Inc., both current holdings in the portfolio, are
also excellent examples of the potential in this area. They display strong
fundamentals and solid product pipelines that indicate product releases at
evenly spaced intervals, which should help produce consistent earnings growth.
GRAPH: GLOBAL HEALTH SCIENCES
This line graph compares the value of a $10,000 investment in INVESCO
Global Health Sciences Fund's share price and net asset value to the
value of a $10,000 investment in the S&P Health Care Composite Index,
assuming in each case reinvestment of dividends and capital gain
distributions, for the period beginning October 1991 and ending April
30, 2000.
PHARMACEUTICALS
Our exposure to large-cap pharmaceutical companies helped to offset the
volatility in biotech stocks in recent months. One factor driving recent
pharmaceutical share performance has been an acceleration in mergers and
acquisitions (M&A) activity, which should foster stronger product pipelines and
increased research and marketing resources.
The mergers include:
o Pharmacia & Upjohn's recent merger with Monsanto Co.
o Warner Lambert Co.'s pending merger with Pfizer Inc.
o SmithKline Beecham's pending merger with Glaxo Wellcome PLC
Nonetheless, the earnings outlook for traditional pharmaceutical companies
remains clouded by uncertainty over Medicare reform, a lack of new products, and
expiring patents on a number of drugs.
MEDICAL DEVICES AND SUPPLY
Performance in the medical devices industry lagged in 1999, largely because of a
slowdown in the defibrillator and pacemaker markets. This year, however, we are
experiencing a re-acceleration in this group. The Cardiac Rhythm Management
(CRM) market is experiencing growth from new products and technologies. The two
main players in this market -- and two key portfolio holdings -- include
Medtronic Inc. and Guidant Corp. Medtronic is the leading firm in the design,
development, and manufacturing of defibrillators and pacemakers. It is
leveraging its implantable platform to create devices to treat other chronic
conditions, such as Parkinson's disease and urinary incontinence. Guidant is the
leading company in the design, development and manufacturing of products used in
cardiology and vascular intervention surgery. Guidant has considerable market
share in the CRM market. It is anticipating increased earnings growth, supported
by the launch of its new TriStar stent and Prizm defibrillator.
<PAGE>
PRIVATE PLACEMENTS
Because of our closed-end fund structure, we are able to invest up to 25% of
assets in private placements or restricted securities. We believe that our
experience and success with private placements are key factors differentiating
our fund from other Health Sciences funds.
The pie chart below contains the following:
PORTFOLIO HOLDINGS % OF NET ASSETS
4/30/00
CASH & CASH EQUIVALENTS 10.33%
HEALTH CARE DELIVERY 1.46%
BIOTECHNOLOGY 43.23%
PHARMACEUTICALS 34.56%
MEDICAL DEVICES & SUPPLIES 10.42%
When investing in private placements, we strive to identify promising young
companies with the potential to make significant, commercially viable
contributions to the health care system. Investing in private placements helps
us identify possible future industry trends, while enabling us to examine
cutting-edge technology before it is recognized by the broader market.
Investments in private placements remain a core component of our holdings.
Since our last report, we have participated in a number of private placement
opportunities:
o NOVEMBER -- The fund made two new private placement investments. The first
was a follow-on investment in Masimo Corp., and the second was a private
investment in public equity (PIPE) transaction, Transkaryotic Therapies.
o DECEMBER -- The fund purchased additional shares of Caresoft Inc. Series A
Preferred Stock and a Caresoft Inc. Bridge note. The Physicians'
Online/Mediconsult merger was completed and shares were exchanged.
o JANUARY -- The fund purchased additional Orchid Biocomputer in a final
private financing round before the stock went public. The fund also
purchased Trimeris Inc., in a PIPE deal.
o FEBRUARY -- The fund participated in a number of PIPE deals, including
Titan Pharmaceuticals, Targeted Genetics, Amylin Pharmaceuticals and DUSA
Pharmaceuticals.
o MARCH -- The fund participated in a number of PIPE transactions, including
Pharmacopeia Inc., Physiometrix Inc., DUSA Pharmaceuticals and NPS
Pharmaceuticals. The fund also participated in additional investments in
private companies, including Caresoft Inc., Doubletwist Inc., Genomica
Corp., Targeted Genectics and Structural Bioinformatics.
o APRIL -- The fund participated in a private investment in Athersys Inc.
We expect to increase assets in private placements over the long-term, because
we believe these securities provide the potential for significant capital
appreciation. On the other hand, our selection criterion includes a viable and
timely exit strategy. We will remain extremely selective in our choice of
private placement investments.
<PAGE>
LOOKING FORWARD
We believe the outlook for the health care sector remains strong. The recurring
themes of favorable demographics and improved product cycles driven by new
technology are very much intact, particularly in the growth segments of the
sector. Nonetheless, we believe that volatility remains a near-term risk.
Consequently, as we look to reinvest cash, we will focus on fundamentally strong
companies with good management, solid capital structures, and a promising mix of
marketable drugs and late-stage product development.
Our near-term emphasis is on the stability provided by traditional, high-quality
pharmaceutical companies, as we work to raise our pharmaceutical exposure to a
market-neutral position. We are also upbeat on the recent consolidation in the
drug industry, particularly the merger between Warner-Lambert Co. and Pfizer
Inc., two of our holdings, which will form a research and marketing powerhouse.
In the biotech area, we will focus on companies such as Genentech Inc. and
MedImmune Inc. that already have commercial products that support revenue and
earnings growth, good management, solid capital structures, and a promising
pipeline of late-stage product development.
/s/ John R. Schroer
John R. Schroer
Vice President
<PAGE>
TEN LARGEST COMMON STOCK HOLDINGS
INVESCO GLOBAL HEALTH SCIENCES FUND
APRIL 30, 2000
UNAUDITED
PERCENT OF
DESCRIPTION VALUE NET ASSETS
--------------------------------------------------------------------------------
Warner-Lambert Co $34,886,377 5.06%
Forest Laboratories 23,898,969 3.47
MedImmune Inc 21,303,675 3.09
ImClone Systems 20,171,060 2.92
American Home Products 19,765,639 2.87
COR Therapeutics 19,534,475 2.83
Guidant Corp 18,110,419 2.63
Amgen Inc 18,082,400 2.62
Medtronic Inc 17,879,640 2.59
Genentech Inc 17,655,300 2.56
================================================================================
Total $211,287,954 30.64%
================================================================================
Composition of holdings is subject to change.
STATEMENT OF INVESTMENT SECURITIES
INVESCO GLOBAL HEALTH SCIENCES FUND
APRIL 30, 2000
UNAUDITED
<TABLE>
<CAPTION>
COUNTRY SHARES OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
79.72 COMMON STOCKS & WARRANTS
37.74 BIOTECHNOLOGY
Abgenix Inc(a) 174,700 $ 15,646,569
Alexion Pharmaceuticals(a) 202,190 9,022,729
Alkermes Inc(a) 110,240 5,870,280
Amgen Inc(a) 322,900 18,082,400
Amylin Pharmaceuticals(a)(f) 325,000 3,052,969
Celgene Corp(a) 113,900 5,360,419
Cell Therapeutics(a) 260,400 4,036,200
Celltech Group PLC(a) UK 217,685 3,583,464
Cephalon Inc(a) 131,100 7,374,375
Chiron Corp(a) 221,530 10,024,232
Collateral Therapeutics(a)(f) 200,000 4,900,000
COR Therapeutics(a) 256,400 19,534,475
Creative BioMolecules(a) 474,200 3,652,822
<PAGE>
COUNTRY SHARES OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------
Cubist Pharmaceuticals(a) 175,900 $ 5,650,787
Ecogen Technologies I(a)(b)(f) 60 1
Exelixis Pharmaceuticals(a)(f) 843,750 13,671,387
Genentech Inc(a) 150,900 17,655,300
Genomica Corp Warrants (Exp 2003)(a)(b)(c)(f) 76,646 0
GenoPlex Inc Warrants (Exp 2003)(a)(b)(c)(f) 60,000 0
IDEC Pharmaceuticals(a) 198,100 12,678,400
ILEX Oncology(a) 233,000 5,592,000
ImClone Systems(a) 221,660 20,171,060
Immunex Corp(a) 234,800 9,245,250
IVAX Corp(a) 108,100 2,959,237
Medarex Inc(a) 241,060 12,776,180
MedClone Trust(a)(c)(f) 216,608 0
MedImmune Inc(a) 133,200 21,303,675
NPS Pharmaceuticals(a) 310,000 4,030,000
Pharmacopeia Inc(a)(f) 120,000 4,441,500
Protein Design Labs(a) 154,670 15,699,005
Targeted Genetics(a) 37,800 314,212
Targeted Genetics(a)(f) 120,000 897,750
Transkaryotic Therapies(a) 164,200 4,915,738
Trimeris Inc(a)(f) 115,000 3,564,281
Xenometrix Inc(a)(b)(f) 215,485 230,300
===============================================================================================================
265,936,997
0.29 HEALTH CARE DELIVERY
Caresoft Inc
Warrants (Exp 2000)(a)(b)(f) 1 125
Warrants (Exp 2004)(a)(b)(f) 59,460 59
Mediconsult.com Inc(a)(f) 1,166,757 1,910,565
Mediconsult.com Inc Escrowed Shares(a)(f) 129,640 132,678
===============================================================================================================
2,043,427
7.86 MEDICAL DEVICES & SUPPLIES
AFx Inc Warrants (Exp 2001)(a)(b)(f) 1,000,000 1,000
Guidant Corp(a) 315,650 18,110,419
Medtronic Inc 344,253 17,879,640
Orchid Biosciences Warrants (Exp 2004)(a)(b)(f) 180,000 585,000
PE Corp-PE Biosystems Group 116,000 6,960,000
Physiometrix Inc(a)(b)(f) 370,370 5,249,995
Physiometrix Inc Warrants (Exp TBA)(a)(b)(f) 111,111 1
VidaMed Inc Warrants (Exp 2000)(a)(c)(f) 263,158 0
Waters Corp(a) 69,800 6,631,000
===============================================================================================================
55,417,055
<PAGE>
COUNTRY SHARES OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------
33.83 PHARMACEUTICALS
Allergan Inc 223,680 $ 13,169,160
ALZA Corp(a) 151,100 6,657,844
American Home Products 351,780 19,765,639
Ares-Serono Group SA Series B Shrs SZ 1,310 4,031,648
AstraZeneca Group PLC Sponsored ADR
Representing Ord Shrs 2,600 109,525
DUSA Pharmaceuticals(a) 321,900 5,311,350
Forest Laboratories(a) 284,300 23,898,969
Glaxo Wellcome PLC Sponsored ADR
Representing 2 Ord Shrs 7,800 489,938
Human Genome Sciences(a) 160,700 12,303,594
Inhale Therapeutic Systems(a) 136,800 8,464,500
Johnson & Johnson 159,800 13,183,500
Merck & Co 231,900 16,117,050
Millennium Pharmaceuticals(a) 134,500 10,675,937
Pfizer Inc 154,310 6,500,309
Pharmacia Corp 250,893 12,528,969
Schering AG GM 82,750 11,726,267
Schering-Plough Corp 400,800 16,157,250
SmithKline Beecham PLC Sponsored ADR
Representing 5 Ord Shrs 6,900 474,375
Takeda Chemical Industries Ltd JA 110,600 7,276,114
Titan Pharmaceuticals(a) 211,065 6,754,080
Warner-Lambert Co(d) 306,525 34,886,377
Yamanouchi Pharmaceutical Ltd JA 149,100 7,877,502
===============================================================================================================
238,359,897
TOTAL COMMON STOCKS & WARRANTS (Cost $479,075,081) 561,757,376
===============================================================================================================
8.15 PREFERRED STOCKS
4.57 BIOTECHNOLOGY
Athersys Inc, Conv Pfd, Series F Shrs(a)(f) 416,666 5,000,000
DoubleTwist Inc, Pfd, Series D Shrs(a)(f) 2,657,807 4,000,000
Genomica Corp
Pfd, Series A Shrs(a)(b)(f) 2,490,075 3,735,112
Pfd, Series B Shrs(a)(b)(f) 1,899,865 2,849,797
Pfd, Series C Shrs(a)(b)(f) 3,333,333 5,000,000
GenoPlex Inc, Pfd, Series A Shrs(a)(b)(f) 610,520 610,521
Ingenex Inc, Pfd, Series B Shrs(a)(f) 103,055 62,864
MedClone Trust, Conv Pfd, Series G Shrs(a)(f) 872,096 113,372
Ontogeny Inc, Pfd, Series E Shrs(a)(f) 1,000,000 5,596,282
<PAGE>
COUNTRY SHARES OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------
Osiris Therapeutics, Conv Pfd, Series C Shrs(a)(f) 352,941 $ 1,199,999
Structural Bioinformatics, Pfd, Series D Shrs(a)(f) 650,407 4,000,003
===============================================================================================================
32,167,950
0.69 HEALTH CARE DELIVERY
Caresoft Inc
Pfd, Series A Shrs(a)(b)(f) 1,627,102 2,936,919
Pfd, Series B Shrs(a)(b)(f) 238,640 430,745
Physiome Sciences, Pfd, Series B Shrs(a)(b)(f) 909,090 1,499,998
===============================================================================================================
4,867,662
2.89 MEDICAL DEVICES & SUPPLIES
Adeza Biomedical, Conv Pfd, Series II Shrs(a)(f) 416,666 1,216,665
Aerogen Inc, Pfd, Series D Shrs(a)(f) 1,142,858 2,000,001
AFx Inc, Pfd, Series F Shrs(a)(b)(f) 1,500,000 3,000,000
Instrumentation Metrics, Conv Pfd, Series C Shrs(a)(b)(f) 500,000 5,057,500
InterVentional Technologies, Pfd, Series F Shrs(a)(f) 250,000 1,375,000
Janus Biomedical, Conv Pfd, Series A Shrs(a)(f) 400,000 1
Masimo Corp
Pfd, Series C Shrs(a)(f) 125,000 1,000,000
Pfd, Series F Shrs(a)(f) 15,909 174,999
Orchid Biosciences
Conv Pfd, Series C Shrs(a)(b)(f) 813,691 3,661,609
Pfd, Series E Shrs(a)(b)(f) 645,189 2,903,350
===============================================================================================================
20,389,125
TOTAL PREFERRED STOCKS (Cost $54,407,606) 57,424,737
===============================================================================================================
12.13 SHORT-TERM INVESTMENTS
0.44 CORPORATE BONDS
0.44 HEALTH CARE DELIVERY
Caresoft Inc, Bridge Notes, 8.000%, 6/30/2000(b)(e)(f) $ 2,800,000 2,800,000
Mediconsult.com Inc, Bridge Notes, 12.000%
10/31/2000(e)(f) $ 337,390 337,390
===============================================================================================================
TOTAL CORPORATE BONDS (Cost $3,137,390) 3,137,390
===============================================================================================================
11.69 COMMERCIAL PAPER
3.97 AUTOMOBILES
Ford Motor Credit, 5.850%, 5/1/2000 $ 28,000,000 28,000,000
===============================================================================================================
7.72 CONSUMER FINANCE
American Express Credit, 6.020%, 5/4/2000 $ 21,370,000 21,370,000
Household Finance, 5.950%, 5/3/2000 $ 33,000,000 33,000,000
===============================================================================================================
54,370,000
TOTAL COMMERCIAL PAPER (Cost $82,370,000) 82,370,000
===============================================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $85,507,390) 85,507,390
===============================================================================================================
<PAGE>
COUNTRY SHARES OR
CODE IF PRINCIPAL
% DESCRIPTION NON US AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $618,990,077)
(Cost for Income Tax Purposes $642,395,720) $704,689,503
===============================================================================================================
</TABLE>
(a) Security is non-income producing.
(b) Security is an affiliated company (See Notes).
(c) Security has no market value at April 30, 2000.
(d) Security has been designated as collateral for Short Sales.
(e) Rate is subject to change. Rate shown reflects current rate.
(f) The following are restricted securities at April 30, 2000:
SCHEDULE OF RESTRICTED OR ILLIQUID SECURITIES
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION FAIR VALUE AS A
DESCRIPTION DATE(S) COST FAIR VALUE % OF NET ASSETS
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adeza Biomedical, Conv Pfd, Series II Shrs 12/21/1994 $ 999,998 $ 1,216,665 0.18%
Aerogen Inc
Pfd, Series D Shrs 8/25/1998 2,000,001 2,000,001 0.29
AFx Inc
Pfd, Series F Shrs 8/14/1998 3,000,000 3,000,000 0.43
Warrants (Exp 2001) 8/14/1998 1,000 1,000 0.00
Amylin Pharmaceuticals 2/24/2000 3,900,000 3,052,969 0.44
Athersys Inc, Conv Pfd, Series F Shrs 4/17/2000 5,000,000 5,000,000 0.73
Caresoft Inc, Bridge Notes
8.000%, 6/30/2000 12/20/1999-
3/13/2000 2,800,000 2,800,000 0.40
Pfd, Series A Shrs 7/21/1997-
12/3/1999 1,986,250 2,936,919 0.43
Pfd, Series B Shrs 2/25/1999 507,079 430,745 0.06
Warrants (Exp 2000) 12/20/1999 0 125 0.00
Warrants (Exp 2004) 2/25/1999-
4/30/1999 59 59 0.00
Collateral Therapeutics 8/11/1999 3,150,000 4,900,000 0.71
DoubleTwist Inc, Pfd, Series D Shrs 2/18/2000 4,000,000 4,000,000 0.58
Ecogen Technologies I 11/16/1992-
1/28/1994 684,000 1 0.00
Exelixis Pharmaceuticals(a) 4/17/2000 2,250,000 13,671,387 1.98
Genomica Corp
Pfd, Series A Shrs 10/6/1997 1,500,000 3,735,112 0.54
Pfd, Series B Shrs 10/9/1998-
12/16/1998 1,367,903 2,849,797 0.41
Pfd, Series C Shrs 3/13/2000 5,000,000 5,000,000 0.73
Warrants (Exp 2003) 10/9/1998 0 0 0.00
<PAGE>
SCHEDULE OF ILLIQUID SECURITIES (CONTINUED)
ACQUISITION ACQUISITION FAIR VALUE AS A
DESCRIPTION DATE(S) COST FAIR VALUE % OF NET ASSETS
-----------------------------------------------------------------------------------------------------------------------------
GenoPlex Inc
Pfd, Series A Shrs 9/15/1997-
6/25/1998 $ 610,521 $ 610,521 0.09%
Warrants (Exp 2003) 6/25/1998 0 0 0.00
Ingenex Inc, Pfd, Series B Shrs 9/27/1994 600,000 62,864 0.01
Instrumentation Metrics, Conv Pfd
Series C Shrs 2/25/1998 5,057,500 5,057,500 0.73
InterVentional Technologies, Pfd
Series F Shrs 10/19/1992 2,000,000 1,375,000 0.20
Janus Biomedical, Conv Pfd
Series A Shrs 3/2/1994 1,000,000 1 0.00
Masimo Corp, Pfd
Series C Shrs 10/7/1998 1,000,000 1,000,000 0.15
Series F Shrs 9/14/1999 174,999 174,999 0.03
MedClone Trust 9/30/1997 151,965 0 0.00
MedClone Trust, Conf Pfd
Series G Shrs 10/21/1993-
7/20/1994 1,500,005 113,372 0.02
Mediconsult.com Inc(b) 12/31/1999 1,363,063 1,910,565 0.28
Mediconsult.com Inc
Bridge Notes, 12.000%, 10/31/2000 6/10/1998 337,390 337,390 0.05
Escrowed Shrs(c) 12/31/1999 100,968 132,678 0.02
Ontogeny Inc, Pfd, Series E Shrs 3/13/1997 2,500,000 5,596,282 0.81
Orchid Biosciences
Conv Pfd, Series C Shrs 3/27/1998 5,000,000 3,661,609 0.53
Pfd, Series E Shrs 1/21/2000-
1/31/2000 2,903,350 2,903,350 0.42
Warrants (Exp 2004) 5/24/1999 0 585,000 0.08
Osiris Therapeutics, Conv Pfd
Series C Shrs 12/23/1994 1,199,999 1,199,999 0.17
Pharmacopiea Inc 3/7/2000 7,560,000 4,441,500 0.64
Physiome Sciences, Pfd, Series B Shrs 11/7/1997 1,499,998 1,499,998 0.22
Physiometrix Inc(d) 2/29/2000 3,999,996 5,249,995 0.76
Physiometrix Inc Warrants (Exp TBA) 2/29/2000 1 1 0.00
Structural Bioinformatics, Pfd
Series D Shrs 3/24/2000 4,000,003 4,000,003 0.58
Targeted Genetics 3/1/2000 1,680,000 897,750 0.13
Trimeris Inc(d) 2/2/2000 4,657,500 3,564,281 0.52
VidaMed Inc Warrants (Exp 2000) 9/22/1997 0 0 0.00
Xenometrix Inc(d) 7/20/1992-
12/2/1994 $ 1,602,925 $ 230,300 0.03%
=============================================================================================================================
$ 88,646,473 $ 99,199,738 14.38%
=============================================================================================================================
</TABLE>
(a) Fair value represents 85% of the security's publicly traded value.
(b) Fair value represents 80% of the security's publicly traded value.
(c) Fair value represents 50% of the security's publicly traded value.
(d) Fair value represents 90% of the security's publicly traded value.
<PAGE>
SHORT SELLS
INVESCO GLOBAL HEALTH SCIENCES FUND
OPEN AT APRIL 30, 2000
CURRENT UNREALIZED
MARKET APPRECIATION
SECURITY SHARES PROCEEDS VALUE (DEPRECIATION)
--------------------------------------------------------------------------------
Dendrite International 120,000 $3,614,253 $2,745,000 $ 869,253
Novoste Corp 30,000 1,151,212 1,230,000 (78,788)
================================================================================
150,000 $4,765,465 $3,975,000 $ 790,465
================================================================================
SUMMARY OF INVESTMENTS BY COUNTRY
INVESCO GLOBAL HEALTH SCIENCES FUND
APRIL 30, 2000
% OF
COUNTRY INVESTMENT
COUNTRY CODE SECURITIES VALUE
--------------------------------------------------------------------------------
Germany (not including ADR's) GM 1.66% $ 11,726,267
Japan (not including ADR's) JA 2.15 15,153,616
Switzerland (not including ADR's) SZ 0.57 4,031,648
United Kingdom (not including ADR's) UK 0.51 3,583,464
United States (includes ADR's) US 95.11 670,194,508
================================================================================
100.00% $704,689,503
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO GLOBAL HEALTH SCIENCES FUND
APRIL 30, 2000
UNAUDITED
ASSETS
Investment Securities at Value (Cost $618,990,077) $ 704,689,503
Cash 486
Receivables:
Investment Securities Sold 53,092,010
Dividends and Interest 622,375
Prepaid Expenses and Other Assets 142,950
================================================================================
TOTAL ASSETS 758,547,324
================================================================================
LIABILITIES
Payables:
Investment Securities Purchased 64,588,034
Securities Sold Short 3,975,000
Depreciation on Forward Foreign Currency Contracts 96,056
Accrued Expenses and Other Payables 243,839
================================================================================
TOTAL LIABILITIES 68,902,929
================================================================================
NET ASSETS AT VALUE $ 689,644,395
================================================================================
NET ASSETS
Paid-in Capital(a) $ 556,928,870
Accumulated Undistributed Net Investment Loss (2,425,191)
Accumulated Undistributed Net Realized Gain on Investment Securities
and Foreign Currency Transactions 49,471,067
Net Appreciation of Investment Securities
and Foreign Currency Transactions 85,669,649
================================================================================
NET ASSETS AT VALUE $ 689,644,395
================================================================================
NET ASSET VALUE PER SHARE $ 17.82
================================================================================
(a) The Fund has an unlimited number of authorized shares of common stock, par
value of $0.01 per share, of which 38,705,515 were outstanding at April 30,
2000.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
INVESCO GLOBAL HEALTH SCIENCES FUND
SIX MONTHS ENDED APRIL 30, 2000
UNAUDITED
INVESTMENT INCOME
INCOME
Dividends $ 1,802,984
Interest 1,829,844
Foreign Taxes Withheld (21,179)
================================================================================
TOTAL INCOME 3,611,649
================================================================================
EXPENSES
Investment Advisory Fees 3,576,007
Administrative Fees 369,708
Custodian Fees and Expenses 49,615
NYSE Listing Fee 21,265
Professional Fees and Expenses 117,263
Transfer Agent Fees 60,121
Trustees' Fees and Expenses 58,495
Reports to Shareholders 58,972
Other Expenses 15,947
================================================================================
TOTAL EXPENSES 4,327,393
Fees and Expenses Paid Indirectly (24,229)
================================================================================
NET EXPENSES 4,303,164
================================================================================
NET INVESTMENT LOSS (691,515)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES
Net Realized Gain on:
Investment Securities 68,863,082
Foreign Currency Transactions 796,194
Short Sell Transactions 3,030,172
================================================================================
Total Net Realized Gain 72,689,448
================================================================================
Change in Net Depreciation of:
Investment Securities (17,476,370)
Foreign Currency Transactions (1,659,747)
================================================================================
Total Net Depreciation (19,136,117)
================================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 53,553,331
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 52,861,816
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CASH FLOW
INVESCO GLOBAL HEALTH SCIENCES FUND
SIX MONTHS ENDED APRIL 30, 2000
UNAUDITED
INCREASE (DECREASE) IN CASH
--------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Dividends and Interest Received,
Net of Foreign Withholding Taxes $ 3,513,645
Expenses Paid (4,442,731)
Sales Net of Purchases of Short-Term Portfolio Investments (33,203,000)
Purchases of Long-Term Portfolio Investments (822,910,981)
Sales of Long-Term Portfolio Investments 893,262,615
Proceeds of Securities Sold Short 27,484,526
Purchases of Short Sale Securities (22,247,594)
Realized Loss From Foreign Currency Transactions (96,056)
Other (112,408)
================================================================================
Net Cash Flows From Operating Activities 41,248,016
================================================================================
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Distributions Paid to Common Shareholders (41,247,599)
================================================================================
Net Increase in Cash 417
Cash at Beginning of Year 69
================================================================================
Cash at End of Year $ 486
================================================================================
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS
TO NET CASH FLOWS FROM OPERATING ACTIVITIES
Net Increase in Net Assets from Operations $ 52,861,816
================================================================================
Decrease in Investments 39,641,265
Net Realized Gain (72,689,448)
Decrease in Appreciation of Investment Securities 19,136,117
Increase in Receivable for Investment Securities Sold (51,282,995)
Increase in Payable for Investment Securities Purchased 50,661,675
Increase in Depreciation of Foreign Currency Transactions 96,056
Increase in Dividends and Interest Receivable (98,004)
Increase in Prepaid Expenses and Other Assets (112,408)
Increase in Accrued Expenses and Other Payables 3,033,942
================================================================================
Total Adjustments (11,613,800)
================================================================================
Net Cash Flows From Operating Activities $ 41,248,016
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
[CAPTION]
<TABLE>
INVESCO GLOBAL HEALTH SCIENCES FUND
SIX MONTHS ENDED YEAR ENDED
APRIL 30 OCTOBER 31
------------------------------------------------------------------------------------------------
2000 1999
UNAUDITED
<S> <C> <C>
OPERATIONS
Net Investment Loss $ (691,515) $ (796,732)
Net Realized Gain on Investment Securities, Foreign
Currency Transactions and Short Sale Transactions 72,689,448 78,958,795
Change in Net Depreciation of Investment Securities
and Foreign Currency Transactions (19,136,117) (16,145,445)
================================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 52,861,816 62,016,618
================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (2,654,362) 0
Net Realized Gain on Investment Securities and
Foreign Currency Transactions (51,567,221) (120,410,363)
================================================================================================
TOTAL DISTRIBUTIONS (54,221,583) (120,410,363)
================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares in Connection
with Rights Offering -- 107,975,588
Reinvestment of Distributions 12,973,984 42,185,501
================================================================================================
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 12,973,984 150,161,089
================================================================================================
TOTAL INCREASE IN NET ASSETS 11,614,217 91,767,344
NET ASSETS
Beginning of Period 678,030,178 586,262,834
================================================================================================
End of Period $ 689,644,395 $ 678,030,178
================================================================================================
FUND SHARE TRANSACTIONS
Shares Issued in Connection with Rights Offering -- 7,601,529
Shares Issued from Reinvestment of Distributions 947,871 2,343,639
================================================================================================
NET INCREASE IN FUND SHARES 947,871 9,945,168
================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO NOTES TO FINANCIAL STATEMENTS --
INVESCO GLOBAL HEALTH SCIENCES FUND, INC.
UNAUDITED
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Global
Health Sciences Fund (the "Fund") was organized as a Massachusetts Business
Trust on November 18, 1991 and commenced investment operations on January 24,
1992. The investment objective of the Fund is to seek capital appreciation
through investments in the health sciences related business sectors. The Fund is
registered under the Investment Company Act of 1940 (the "Act") as a
diversified, closed-end management investment company.
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 accounting principles
generally accepted in the United States 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 -- Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sales price
at the close of the regular trading day on that exchange (generally, 4:00p.m.
Eastern time) in the market where such securities are primarily traded. If last
sales prices are not available, securities are valued at the highest closing bid
prices at the close of the regular trading day and obtained from one or more
dealers making a market for such securities or by a pricing service approved by
the Fund's board of trustees.
Debt securities are valued at evaluated bid prices as determined by a pricing
service approved by the Fund's board of trustees. If evaluated bid prices are
not available, debt securities are valued by averaging the bid prices obtained
from one or more dealers making a market for such securities.
Foreign securities are valued at the closing price on the principal stock
exchange on which they are traded. In the event that closing prices are not
available for foreign securities, prices will be obtained from the principal
stock exchange at or prior to the close of the New York Stock Exchange. Foreign
currency exchange rates are determined daily prior to the close of the New York
Stock Exchange.
If market quotations or pricing service valuations are not readily available,
securities are valued at a fair value as determined in good faith under
procedures established by the Fund's board of trustees. Restricted securities
are valued in accordance with procedures established by the Fund's board of
trustees.
Short-term securities are stated at amortized cost (which approximates market
value) if maturity is 60 days or less at the time of purchase, or market value
if maturity is greater than 60 days.
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation.
<PAGE>
B. REPURCHASE AGREEMENTS -- Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to ensure
its market value exceeds the current market value of the repurchase agreements
including accrued interest. In the event of default on the obligation to
repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation.
C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date and dividend income is recorded on the
ex-dividend date. Certain dividends from foreign securities will be recorded as
soon as the Fund is informed of the dividend if such information is obtained
subsequent to the ex- dividend date. Interest income, which may be comprised of
stated coupon rate, market discount, original issue discount and amortized
premium, is recorded on the accrual basis. The receivable for securities sold is
net of $814,000 collectibility allowance. Income and expenses on foreign
securities are translated into U.S. dollars at rates of exchange prevailing when
accrued. Discounts and premiums on debt securities purchased are amortized over
the life of the respective security as adjustments to interest income. Cost is
determined on the specific identification basis. The cost of foreign securities
is translated into U.S. dollars at the rates of exchange prevailing when such
securities are acquired.
The Fund may have elements of risk due to concentrated investments in specific
industries or foreign issuers located in a specific country. Such concentrations
may subject the Fund to additional risks resulting from future political or
economic conditions and/or possible impositions of adverse foreign governmental
laws or currency exchange restrictions. Net realized and unrealized gain or loss
from investment securities includes fluctuations from currency exchange rates
and fluctuations in market value.
The Fund's use of short-term forward foreign currency contracts may subject it
to certain risks as a result of unanticipated movements in foreign exchange
rates. The Fund does not hold short-term forward foreign currency contracts for
trading purposes. The Fund may hold foreign currency in anticipation of settling
foreign security transactions and not for investment purposes.
The Fund's use of short sell instruments may involve certain risks as a result
of unanticipated movements in the market. Although the potential for gain is
limited to the difference between the price at which the Fund sold the security
short and the cost of borrowing the security, its potential for loss could be
unlimited because there is no limit to the replacement cost of the borrowed
security.
Restricted securities held by the Fund may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. The risk of investing in such securities is generally greater than the
risk of investing in the securities of widely held, publicly traded companies.
Lack of a secondary market and resale restrictions may result in the inability
of the Fund to sell a security at a fair price and may substantially delay the
sale of the security which the Fund seeks to sell. In addition, these securities
may exhibit greater price volatility than securities for which secondary markets
exist. The Fund has demand registration rights for certain restricted securities
held at April 30, 2000, which can be exercised upon the registration of a
qualifying public offering by each company in the future. The Fund may incur
registration costs associated with these public offerings. There is no assurance
such offerings will occur.
<PAGE>
D. 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.
To the extent future capital gains are offset by capital loss carryovers, such
gains will not be distributed to shareholders.
Dividends paid by the Fund from net investment income and distributions of net
realized short-term capital gains are, for federal income tax purposes, taxable
as ordinary income to shareholders.
Investment income received from foreign sources may be subject to foreign
withholding taxes. Dividend and interest income is shown gross of foreign
withholding taxes in the accompanying financial statements.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded by the Fund on the ex-dividend/distribution date. The
Fund distributes 2.5% of net asset value to its shareholders quarterly with an
additional year-end distribution depending on the amount of the Fund's yearly
net realized capital gains, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from accounting principles generally
accepted in the United States. These differences are primarily due to differing
treatments for market discounts, amortized premiums, foreign currency
transactions, nontaxable dividends, net operating losses and expired capital
loss carryforwards.
F. SHORT SALES -- Short sales are transactions in which the Fund sells a
security it does not own in anticipation of an expected decline in the price of
that security. The Fund is obligated to replace the borrowed security. A
separate asset account is created for the proceeds retained by the broker, and
an offsetting liability account is established until the short sale is closed.
The liability account is marked-to-market to reflect the current value of the
security sold short and is presented in the Statement of Assets and Liabilities.
At April 30, 2000, the Fund had outstanding short sells. Short sells are fully
collateralized by other securities which are notated in the Statement of
Investment Securities and such collateral is in the possession of the Fund's
Custodian. The collateral is evaluated daily to ensure its market value exceeds
the current value of the short sell.
G. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund enters into short-term forward
foreign currency contracts in connection with planned purchases or sales of
securities as a hedge against fluctuations in foreign exchange rates pending the
settlement of transactions in foreign securities. A forward foreign currency
contract is an agreement between contracting parties to exchange an amount of
currency at some future time at an agreed upon rate. These contracts are
marked-to-market daily and the related appreciation or depreciation of the
contracts is presented in the Statement of Assets and Liabilities. Any realized
gain or loss incurred by the Fund upon the sale of securities is included in the
Statement of Operations.
H. CASH FLOWS -- The cash amount shown in the Statement of Cash Flows is the
amount reported as cash in the Statement of Assets and Liabilities and
represents cash on hand in its custodian bank and does not include any
short-term investments at April 30, 2000.
<PAGE>
I. EXPENSES -- Under an agreement between the Fund and the Fund's custodian,
agreed upon Custodian Fees and Expenses are reduced by credits granted by the
custodian from any temporarily uninvested cash. Such credits are included in
Fees and Expenses Paid Indirectly in the Statement of Operations.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the Fund's investment adviser. As compensation for its
services to the Fund, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. The fee is based on the annual
rate of 1.00% on the first $500 million of ending daily net assets and 0.90% on
ending daily net assets in excess of $500 million.
In accordance with an Administrative Agreement, the Fund pays IFG a fee based on
the annual rate of 0.10% on ending daily net assets to provide administrative,
accounting and clerical services. The fee is accrued daily and paid monthly.
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months ended
April 30, 2000, the aggregate cost of purchases and proceeds from sales of
investment securities (excluding all U.S. Government securities and short-term
securities) were $873,572,656 and $944,603,254, respectively.
There were no purchases or sales of U.S. Government securities.
NOTE 4 -- APPRECIATION AND DEPRECIATION. At April 30, 2000, the gross
appreciation of securities in which there was an excess of value over tax cost
amounted to $111,226,664 and the gross depreciation of securities in which there
was an excess of tax cost over value amounted to $48,932,881, resulting in net
appreciation of $62,293,783.
NOTE 5 -- TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. Certain of the
Fund's officers and trustees are also officers and directors of IFG.
The Fund has adopted an unfunded defined benefit deferred compensation plan
covering all independent trustees of the Fund who will have served as an
independent trustee for at least five years at the time of retirement. Benefits
under this plan are based on an annual rate equal to 50% of the sum of the
retainer fee at the time of retirement plus the annual meeting fee.
Pension expenses for the six months ended April 30, 2000, included in Trustees'
Fees and Expenses in the Statement of Operations were $22,835. Unfunded accrued
pension costs of $0 and pension liability of $187,763 are included in Prepaid
Expenses and Accrued Expenses, respectively, in the Statement of Assets and
Liabilities.
Certain independent trustees have contributed to a deferred fee agreement plan,
pursuant to which they have deferred receipt of a portion of the compensation
which they would otherwise have been paid as trustees of the Fund. The deferred
amounts may be invested in the shares of the Fund.
An affiliated company represents ownership by the Fund of at least 5% of the
voting securities of the issuer during the period, as defined in the Act. A
summary of the transactions during the six months ended April 30, 2000, in which
the issuer was an affiliate of the Fund, is as follows:
<PAGE>
<TABLE>
<CAPTION>
REALIZED
PURCHASES SALES LOSS ON
--------------------- ------------------- INVESTMENT VALUE
AFFILIATE SHARES COST SHARES COST SECURITIES AT 4/30/2000
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AFx Inc
Pfd, Series F Shrs -- -- -- -- -- $ 3,000,000
Warrants (Exp 2001)-- -- -- -- -- -- 1,000
Caresoft Inc
Bridge Notes, 8.000%
6/30/2000 2,800,000 $ 2,800,000 -- -- -- 2,800,000
Pfd, Series A Shrs 273,010 986,249 -- -- -- 2,936,919
Pfd, Series B Shrs 119,320 507,079 430,745
Warrants (Exp 2000) 1 0 -- -- -- 125
Warrants (Exp 2004) -- -- -- -- -- 59
Clarus Medical Systems
Pfd, Series I Shrs -- -- 106,664 $ 2,000,000 $ (2,000,000) --
Pfd, Series II Shrs -- -- 77,239 386,196 (386,196) --
Warrants (Exp 2000) -- -- 2,224 0 0 --
Ecogen Technologies I -- -- -- -- -- 1
Genomica Corp
Pfd, Series A Shrs -- -- -- -- -- 3,735,112
Pfd, Series B Shrs -- -- -- -- -- 2,849,797
Pfd, Series C Shrs 3,333,333 5,000,000 -- -- -- 5,000,000
Warrants (Exp 2003) -- -- -- -- -- 0
GenoPlex Inc
Pfd, Series A Shrs -- -- -- -- -- 610,521
Warrants (Exp 2003) -- -- -- -- -- 0
Instrumentation Metrics
Conv Pfd, Series C Shrs -- -- -- -- -- 5,057,500
Orchid Biosciences
Conv Pfd, Series C Shrs -- -- -- -- -- 3,661,609
Pfd, Series E Shrs 645,189 2,903,350 -- -- -- 2,903,350
Warrants (Exp 2004) -- -- -- -- -- 585,000
Physiome Sciences
Pfd, Series B Shrs -- -- -- -- -- 1,499,998
Physiometrix Inc 370,370 $ 3,999,996 -- -- -- $ 5,249,995
Physiometric Inc
Warrants (Exp TBA) 111,111 1 -- -- -- 1
Xenometrix Inc -- -- -- -- -- 230,300
==============================================================================================================
$ 40,552,032
==============================================================================================================
</TABLE>
Interest income in the amount of $72,417 was received from Caresoft Inc, Bridge
Notes, 8.000%, 6/30/2000 during the six months ended April 30, 2000.
Additional shares from stock splits were received by Caresoft Pfd Series A Shrs,
Caresoft Pfd Series B Shrs, Orchid Biosciences Conv Pfd Series C Shrs and Orchid
Biosciences Warrants in the amount of 813,551, 119,320, 363,241 and 90,000,
respectively, during the six months ended April 30, 2000.
No dividend or interest income was received from any other affiliated companies.
<PAGE>
FINANCIAL HIGHLIGHTS
INVESCO GLOBAL HEALTH SCIENCES FUND
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
----------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -- Beginning
of Period $ 17.960 $ 21.080 $ 21.250 $ 22.230 $ 18.506 $ 12.378
==========================================================================================================
INCOME FROM INVESTMENT
OPERATIONS(a)
Net Investment Loss (0.017) (0.024)(b) 0.000 (0.071) (0.097) (0.107)
Net Gains on Securities
(Both Realized and Unrealized) 1.301 0.989(b) 3.755 3.564 3.821 6.235
==========================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 1.284 0.965 3.755 3.493 3.724 6.128
==========================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment
Income 0.070 0.000 0.000 0.000 0.000 0.000
Distributions from Capital Gains 1.354 4.085 3.925 4.473 0.000 0.000
==========================================================================================================
TOTAL DISTRIBUTIONS 1.424 4.085 3.925 4.473 0.00 0.00
==========================================================================================================
Net Asset Value--End of
Period $ 17.820 $ 17.960 $ 21.080 $ 21.250 $ 22.230 $ 18.506
==========================================================================================================
Share Price--End of Period $ 15.563 $ 16.375 $ 19.500 $ 17.313 $ 17.000 $ 14.750
==========================================================================================================
TOTAL RETURN(c) 3.83%(d) 4.74% 40.29% 32.98% 15.25% 47.50%
RATIOS
Net Assets--End of Period
($000 Omitted) $ 689,644 $ 678,030 $ 586,263 $ 526,215 $ 455,842 $ 379,503
Ratio of Expenses to Average
Net Assets 0.58%(d)(e) 1.20%(e) 1.21%(e) 1.22%(e) 1.21% 1.33%
Ratio of Net Investment Loss
to Average Net Assets (0.09%)(d) (0.13%) (0.17%) (0.15%) (0.44%) (0.72%)
Portfolio Turnover Rate 126%(d) 129% 87% 145% 91% 105%
</TABLE>
(a) The per share information was computed using average shares for the year
ended October 31, 1999.
(b) Per share data includes an additional 7,601,529 shares attributed to the
Rights Offering at June 21, 1999.
(c) Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed, for purposes of this calculation, to be
reinvested at prices obtained under the Fund's dividend reinvestment plan.
Total investment return does not reflect sales charges or brokerage
commissions.
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
<PAGE>
OTHER INFORMATION
INVESCO GLOBAL HEALTH SCIENCES FUND
UNAUDITED
DIVIDENDS AND CAPITAL GAINS DISTRIBUTION HISTORY
<TABLE>
<CAPTION>
NET INVESTMENT LONG-TERM SHORT-TERM
INCOME CAPITAL GAINS CAPITAL GAINS
EX DATE PAYABLE DATE (PER SHARE) (PER SHARE) (PER SHARE)
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
December 24, 1992 January 15, 1993 $ 0.075 -- --
December 23, 1993 January 14, 1994 $ 0.200 -- --
November 29, 1996 December 23, 1996 -- $3.8925 $0.5802
November 14, 1997 December 19, 1997 -- $2.8470 --
May 15, 1998 June 3, 1998 -- $0.5389 --
August 7, 1998 August 25, 1998 -- $0.5389 --
November 13, 1998 December 18, 1998 -- $2.2689 $0.3615
February 5, 1999 February 24, 1999 -- $0.3280 $0.1940
May 7, 1999 May 26, 1999 -- -- $0.4850
August 6, 1999 August 24, 1999 -- $0.4030 $0.0442
November 19, 1999 December 17, 1999 $0.0703 $0.8235 $0.0463
February 4, 2000 February 24, 2000 -- $0.4845 --
May 5, 2000 May 24, 2000 - $0.4455 --
</TABLE>
DIVIDEND REINVESTMENT PLAN
Shareholders of the Fund who have Shares registered directly in their names
automatically participate in the Fund's Dividend Reinvestment Plan (the "Plan"),
unless and until an election is made to withdraw from the Plan as herein
provided. State Street Bank and Trust Company (the "Agent"), acts as agent under
the Plan on behalf of participating shareholders. Shareholders who do not wish
to have distributions automatically reinvested should so notify the fund c/o
State Street Bank and Trust Company, P.O. Box 366, Boston, Massachusetts 02101.
Under the Plan, all of the Fund's dividends and capital gains and other
distributions to shareholders will be reinvested in full and fractional Shares
as described below. A shareholder who owns Shares registered in his/her broker's
or nominee name, and whose broker does not provide facilities for a dividend
reinvestment program, may be required to have his/her Shares registered in
his/her own name in order to participate in the Plan. Shareholders wishing to
participate in the Plan whose Shares are held in the name of a broker or nominee
should consult their brokers as to how to accomplish dividend reinvestment.
Whenever the Fund declares an income dividend or a capital gain or other
distribution (collectively, "Dividends") in cash, non-participants in the Plan
will receive cash and participants in the Plan will receive the equivalent in
Shares. Whenever the Fund declares Dividends in additional unissued but
authorized shares ("Newly Issued Shares") non-participants in the Plan will
receive Newly Issued Shares and participants in the Plan will receive shares. In
either instance, the Shares received by Plan participants will be acquired by
the Agent for the participant's account, depending upon the circumstances
described below, either (i) through receipt of Newly Issued Shares or (ii) by
the purchase of outstanding Shares on the open market ("Open-Market Purchases")
on the New York Stock Exchange or elsewhere. Open-Market Purchases will be made
only in the event that the Fund declares an income dividend or a capital gain or
other distribution payable only in cash.
<PAGE>
If on the payment date for a Dividend the net asset value per share is equal to
or less than the market price per share plus estimated brokerage commissions
(such condition being referred to herein as "Market Premium"), the Agent will
purchase from the Fund Newly IssuedShares on behalf of the participant at a
price per share equal to the greater of the net asset value per share or 95% of
the then current market price per share. This discount from the current market
price reflects savings in underwriting and other costs which the Fund would
otherwise incur to raise additional capital.
If on the payment date for a Dividend the net asset value per share is greater
than the market price per share (such condition being referred to herein as
"Market Discount"), the Agent will endeavor to invest the Dividend amount in
shares acquired on behalf of the participant in Open-Market Purchases. In the
event of a Market Discount on the payment date, the Agent will have up to 30
days after the payment date to invest the Dividend amount in Shares acquired in
Open-Market Purchases.
Registered shareholders who acquire their Shares in open-market transactions and
who do not wish to have their Dividends automatically reinvested should so
notify the Fund in writing. If a shareholder has not previously elected to
receive cash Dividends and the Agent does not receive notice of an election to
receive cash Dividend prior to the record date of any Dividends, the Shareholder
will automatically receive such Dividends in additional Shares.
Participants in the Plan may withdraw from the Plan by providing written notice
to the Agent at least 30 days prior to the applicable Dividend payment date.
When a participant withdraws from the Plan, or upon termination of the Plan as
provided below, certificates for whole Shares credited to his/her account under
the Plan will, upon request, be issued. Whether or not a participant requests
that certificates for whole Shares be issued, a cash payment will be made for
any fraction of a Share credited to such account.
The Agent will maintain all shareholder accounts in the Plan and furnish written
confirmations of all transactions in the accounts, including information needed
by shareholders for personal and tax records. Shares in the account of each Plan
participant will be held by the Agent in non-certificated form in the name of
the participant, and each shareholder's proxy will include those shares
purchased pursuant to the Plan. Each participant, nevertheless, has the right to
receive certificates for whole Shares owned. The Agent will distribute all proxy
solicitation materials to participating shareholders.
In the case of shareholders, such as banks, brokers or nominees, which hold
Shares for others who are the beneficial owners participating in the Plan, the
Agent will administer the Plan on the basis of the number of Shares certified
from time to time by the shareholder as representing the total amount of Shares
registered in the shareholders name and held for the account of beneficial
owners participating in the Plan.
There will be no charge to participants for reinvesting Dividends other than
their share of brokerage commissions as discussed below. The Agent's fees for
administering the Plan and handling the reinvestment of Dividends will be paid
by the Fund. Each participant's account will be charged a pro-rata share of
brokerage commissions incurred with respect to the Agent's Open-Market Purchases
in connection with the reinvestment of Dividends. Brokerage charges for
purchasing small amounts of Shares for individual accounts through the Plan are
expected to be less than the usual brokerage charges for such transactions
because the Agent will be purchasing Shares for all the participants in blocks
and prorating the lower commission that may be attainable.
The automatic reinvestment of Dividends will not relieve participants of any
income tax which may be payable on such Dividends. In the case of non-U.S.
participants whose Dividends are subject to United States income tax withholding
and in the case of any participants subject to 30% federal backup withholding,
the Agent will reinvest Dividends after deduction of the amount required to be
withheld.
The Fund reserves the right to amend or terminate the Plan by written notice to
participants. All correspondence concerning the Plan should be directed to the
Agent at the address referred to in the first paragraph of this section.
<PAGE>
ANNUAL SHAREHOLDER MEETING
The Fund's annual meeting of shareholders was held on May 10, 2000. Shareholders
voted to re-elect John W. McIntyre and Charles W. Brady as Trustees and ratify
the appointment of PricewaterhouseCoopers LLP as the Fund's independent
accountants. The resulting vote count for each proposal is listed below:
1. Election of two Class C Trustees:
John W. McIntyre Charles W. Brady
For: 32,851,491.447 For: 32,781,415.041
Withheld Authority: 478,125.858 Withheld Authority: 548,202.264
2. Ratification of appointment of PricewaterhouseCoopers LLP as the Fund's
independent accountants:
For: 32,898,014.115
Against: 184,086.194
Abstain: 247,516.996
In addition to Messrs. McIntyre and Brady, the following persons serve as
Trustees of the Fund: Fred A. Deering and Larry Soll, Ph.D.
MISCELLANEOUS
For the six months ended April 30, 2000, there were no changes to the Fund's
charter or by-laws and no material changes in the principal risk factors
associated with investment in the Fund. There were no material changes in the
Fund's investment objectives or policies other than adoption of the fixed
distribution policy. The policy requires the Fund to make quarterly
distributions at a rate of 2.5% of NAV -- 10% annually -- to Fund shareholders.
Mr. Schroer joined INVESCO Funds Group, Inc. ("IFG") in 1992 and became a Senior
Vice President of IFG in 1996. In addition to Mr. Schroer's responsibilities as
portfolio manager of the Fund, he also manages the INVESCO Sector Health
Sciences Fund. Mr. Schroer has been an officer of the INVESCO Global Health
Sciences Fund since January 1996.
Mr. Schroer received his M.B.A. and B.S. degrees from the University of
Wisconsin-Madison. He began his investment management career in 1990 with the
Trust Company of the West as an investment analyst. He was eventually given
additional responsibilities by the Trust Company of the West in Los Angeles as
Assistant Vice President with analytical responsibilities in the health care
industry. John is a Chartered Financial Analyst.
<PAGE>
TRUSTEES AND OFFICERS
TRUSTEES
Mark H. Williamson
President & Chief Operating Officer
Chairman of the Board of Directors
Charles W. Brady
Trustee
Fred A. Deering
Trustee
John W. McIntyre
Trustee
Larry Soll, Ph.D.
Trustee
OFFICERS
John R. Schroer
Vice President
Glen A. Payne
Secretary
Ronald L. Grooms
Treasurer, Principal Financial
& Accounting Officer
For information about INVESCO Global Health Sciences Fund or current net asset
values, please call toll-free, 1-800-528-8765, or visit our Web site at
www.ghs.invesco.com
<PAGE>
SHAREHOLDER INFORMATION
INVESTMENT ADVISOR
INVESCO Funds Group, Inc.
7800 East Union Avenue
Denver, Colorado 80237
ADMINISTRATOR
INVESCO Funds Group, Inc.
7800 East Union Avenue
Denver, Colorado 80237
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
SHAREHOLDER SERVICING AGENT
Boston Equiserve, Inc.
150 Royall Street
Mail Stop 45-02-62
Canton, Massachusetts 02021
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1670 Broadway, Suite 1000
Denver, Colorado 80202
COUNSEL
Kirkpatrick & Lockhart
1800 M Street, N.W.
South Lobby, 9th Floor
Washington, D.C. 20036
For questions on dividend reinvestment, please call toll-free, 1-800-426-5523
<PAGE>
[GLOBAL HEALTH SCIENCES FUND ICON]
INVESCO GLOBAL HEALTH SCIENCES FUND
INVESCO Funds Group, Inc.
7800 East Union Avenue
Suite 1100
Denver, Colorado 80237
