SEMIANNUAL REPORT
April 30, 1997
INVESCO
INTERNATIONAL
FUNDS, INC.
European
Pacific Basin
International Growth
No-Load Mutual Funds Seeking
Opportunities Overseas
INVESCO FUNDS
<PAGE>
Market Overview May 1997
Taking their lead from U.S. markets, many global bourses raced to new highs
as positive economic fundamentals,combined with decreasing inflation fears,
produced positive results. The exception was the Asia/Pacific Rim region.
Europe: After years of underperforming, Europe appears to be in a state of
dynamic transition. Fueled by the Maastricht Treaty, which creates the
foundation for the European Union, many nations are finally addressing concerns
over government deficits, domestic inflation, and interest rates. These factors
helped produce positive returns, and many European markets reached all-time
highs in early 1997.
Unemployment, however, still remains a cause for concern, as many countries
are experiencing double-digit unemployment rates. This creates a problem as
Europe is in somewhat of a "Catch-22" situation. The stimulative economic
policies that are needed to reduce unemployment are contradictory to the
monetary policy agendas set for the nations applying for the European Monetary
Union. This makes it difficult for many countries to reduce unemployment.
Latin America: Latin America has been the star performer in 1997. Falling
interest rates, privatization of many state-owned industries, and improving
economic fundamentals caused many Latin American stock markets to appreciate 10%
to 20% in early 1997. In fact, Brazil, Colombia, and Mexico all achieved strong
returns in January and February, which set the tone for the rest of the Latin
American markets. The lone poor performer for the region was Venezuela, as
investors locked in gains after the stock market posted a 231.29% return in
local currency terms for 1996.
Asia/Pacific Rim: Results throughout the Asia/Pacific Rim region have been
mixed in 1997, but were generally negative. After improving fundamentals
produced superior returns for markets in Hong Kong, Indonesia, and Malaysia last
year, concerns over Hong Kong's impending reversion to Chinese control dampened
investor enthusiasm for the region. This is unusual, as many Asian markets
typically track the U.S. market. In fact, the Hang Seng market historically is
highly correlated to the U.S. market.(1) Recently, however, it has deviated from
its normal pattern. Unlike Hong Kong, the emerging Chinese markets -- which are
closely intertwined with Hong Kong -- have experienced strong returns in 1997.
In India, the inability of the current government to make necessary reforms
left the economy stagnant and stocks out-of-favor with most investors in 1996.
However, improving economic fundamentals enticed investors back into the market
in 1997 and strong returns have been posted. Taiwan has also experienced strong
<PAGE>
market returns this year, as the strength of its economy continues to
surprise investors.
INVESCO International Funds, Inc.
Each of the funds is managed by a team of investment professionals
specializing in various countries. A senior investment policy group determines
the country-by-country allocation of the fund's assets, overall stock selection
methodology, and risk control policies.
The line graphs on the following pages illustrate the value of a $10,000
investment in each of the INVESCO International Funds, plus reinvested dividends
and capital gain distributions, for the 10-year period ended 4/30/97; or, in the
case of International Growth Fund, from inception through 4/30/97. The charts
and other total return figures cited reflect the funds' operating expenses, but
the indexes do not have expenses, which would, of course, have lowered their
performance.(2)
European Fund
Lipper Analytical Services ranked INVESCO European Fund #3 of 60 European
region funds for the one-year period ended 4/30/97, based on total return
unadjusted for commissions. For the five-year period, the fund was ranked #13 of
17 funds, and for the 10-year period, #2 of 5. (Lipper Analytical Services,
Inc., is an independent mutual fund analyst, which tracks fund performance by
total return unadjusted for commissions. Of course, past performance is not a
guarantee of future results.)(3)
For the six-month period ended 4/30/97, INVESCO European Fund had a total
return of 11.60%, compared to a total return of 11.28% for the Morgan Stanley
Capital Index-Euro 18. (The MSCI-Europe is an unmanaged, weighted index of
European stock markets. Because this index does not extend back a full 10 years,
the line graph on page 2 compares the fund to the geographically broader
MSCI-Europe/Australia/Far East. Of course, past performance is not a guarantee
of future results.)(1),(2)
The fund's strong relative performance over the last six months can be
attributed to several factors. First, improving economic fundamentals combined
with a low interest rate environment provided an "equity culture" in Europe.
This proved beneficial for European growth companies and led to accelerating
earnings for selected sectors and firms. One such market segment was the
computer services area. Demand increased as companies addressed the European
Monetary Union, the year 2000 programming problem, and the use of technology as
a way to improve profitability. Baan Co., a software
<PAGE>
manufacturer in the Netherlands, is an example of a company that benefited from
these changes and provided strong returns for the fund.
European Fund
Average Annualized Total Return
as of 4/30/97(2)
1 year 23.29%
-----------------------------------------
5 years 11.41%
-----------------------------------------
10 years 8.36%
-----------------------------------------
Second, the strength of the U.S. economy and dollar improved profitability
for large European multinational companies. The dollar's rise against other
currencies allowed many European multinationals to improve their competitive
advantage in most international markets. The strong U.S. economy also stimulated
American demand for cheaper European goods.
Graph: European Fund 10-Year Total Return
vs. MSCI-Europe/Australia/Far East
This line graph illustrates the value of a $10,000 investment in INVESCO
European Fund, plus reinvested dividends and capital gain distributions,
for the 10-year period ended 4/30/97.
Our exposure to the financial services sector enhanced returns over the
last six months. Companies such as ING Groep NY, which benefited from niche
growth in the insurance industry, and AXA-AP, which benefited from
restructuring, contributed strongly to the fund's performance.
Looking forward, we will remain positioned primarily in continental
European markets as strong sales growth and cost-reducing strategies have led to
improving fundamentals. We feel this trend may well continue for years to come.
Pacific Basin Fund
For the six-month period ended 4/30/97, INVESCO Pacific Basin Fund had a
total return of -5.87%, compared to a total return of -10.38% for the Morgan
Stanley Capital Index-Pacific. (The MSCI-Pacific is an unmanaged, weighted index
of Far Eastern stock markets. Of course, past performance is not a guarantee of
future results.)(1),(2)
<PAGE>
Pacific Basin Fund
Average Annualized Total Return
as of 4/30/97(2)
1 year -13.64%
-----------------------------------------
5 years 7.07%
-----------------------------------------
10 years 2.54%
-----------------------------------------
The fund's underweighted position towards Japan as compared to the index
helped limit losses in this environment. The fund's negative return, although
better than that of the index, was primarily due to poor performance across
Asian markets in general.
The Japanese equity market (as measured by the Nikkei Dow, an unmanaged
index of common stocks representing the broad Japanese market) experienced a
sharp correction in early 1997. Fears of a recession, the government's inability
to stimulate consumer spending, and questionable accounting practices by local
corporations forced investors out of the market and the Nikkei into a tailspin.
However, after the "sell-off," it appears that the Nikkei has started to
recover, since the strong dollar may stimulate demand for Japanese goods.
Graph: Pacific Basin Fund 10-Year Total Return
vs. MSCI-Pacific
This line graph illustrates the value of a $10,000 investment in INVESCO
Pacific Basin Fund, plus reinvested dividends and capital gain
distributions, for the 10-year period ended 4/30/97.
Looking forward, we continue to feel optimistic about Asian/Pacific markets
as their economic fundamentals seem strong. In particular, we believe that Hong
Kong is presently undervalued and the reversion to Chinese control should go
smoothly. A peaceful transition may translate into increased share prices for
the Hang Seng.(1)
<PAGE>
International Growth Fund
For the six-month period ended 4/30/97, INVESCO International Growth Fund
had a total return of 4.62%. The Morgan Stanley Capital
Index-Europe/Australia/Far East had a total return of 1.71% for the same period.
(The MSCI-EAFE is an unmanaged, weighted index of international stock markets.
Of course, past performance is not a guarantee of future results.)(1),(2)
Exposure to the nascent markets of Europe and Latin America contributed to
the fund's strong relative performance over the last six months. In Brazil,
President Cardoso's economic and political reforms have had a positive influence
on the economy. Presently, Brazil has three fundamental factors working to its
advantage: first, it is blessed with an abundance of natural resources; second,
it appears that inflation and interest rates are under control; and finally,
there is continuing privatization of many state-owned industries. A company that
benefited from deregulation was Telecomunicacoes Brasileirus SA-Telebras
Sponsored ADR Representing Pfd, whose recent stock appreciation enhanced the
fund's total return.
International Growth Fund
Average Annualized Total Return
as of 4/30/97(2)
1 year 6.06%
-----------------------------------------
5 years 8.18%
-----------------------------------------
10 years 5.84%
-----------------------------------------
Another region we continue to favor is continental Europe, where the fiscal
constraints produced by the Maastricht Treaty have lowered interest rates and
reduced the threat of inflation. Benign inflation, coupled with low interest
rates, provides a perfect environment for many European companies. Firms such as
Bayerische Motoren Werke AG (BMW) and Alcatel Alsthom, a French infrastructure
and electrical equipment company, benefited from improving conditions and
contributed positively to the fund's performance. Low interest rates also helped
European financial institutions, and Banco Bilbao Vizcaya SA Registered Shrs, a
large holding of the fund as of 4/30/97, continued its strong performance.
<PAGE>
Graph: International Growth Fund 10-Year Total Return
vs. MSCI-Europe/Australia/Far East
This line graph illustrates the value of a $10,000 investment in INVESCO
International Growth Fund, plus reinvested dividends and capital gain
distributions, for the 10-year period ended 4/30/97.
Looking forward, it appears that we may be entering an environment in which
international markets may outperform U.S. stocks, as improving fundamentals for
selected international economies may increase their market returns. We continue
to favor emerging economies and markets in Europe and Latin America. In recent
months we have been increasing our position in Japan, where the long-stagnant
economy may finally be rebounding.
(1)The MSCI-EAFE, MSCI-Europe, and MSCI-Pacific are unmanaged indexes of common
stocks considered to be representative of the overall international, European,
and Pacific Basin, regional securities markets, respectively. The Hang Seng is
an unmanaged index indicative of broad market performance in Hong Kong.
(2)Total return assumes reinvestment of dividends and capital gain distributions
for the periods indicated. Past performance is not a guarantee of future
results. Investment return and principal value will fluctuate so that, when
redeemed, an investor's shares may be worth more or less than when purchased.
(3)Rankings provided by Lipper Analytical Services, an independent mutual fund
analyst, are based upon total return performance unadjusted for commissions.
When available, rankings are cited for one-, five-, and 10-year periods.
<PAGE>
INVESCO International Funds, Inc.
Ten Largest Common Stock Holdings
April 30, 1997
Description Value
- -------------------------------------------------------------------------------
EUROPEAN Fund
Tomra Systems A/S A $9,523,240
Alcatel Alsthom 7,783,885
Telecel-Comunicacoes Pessoais SA 7,755,059
Gucci Group NV New York Registered Shrs 6,937,500
Sage Group PLC 6,802,751
ING Groep NV 6,773,912
British Telecommunications PLC 6,600,737
Novartis AG Registered Shrs 6,590,196
Swiss Re Group Registered Shrs 6,484,047
AXA-AP 6,152,748
INTERNATIONAL GROWTH Fund
Alcatel Alsthom $1,801,413
Banco Bilbao Vizcaya SA Registered Shrs 1,764,954
Novartis AG Registered Shrs 1,548,696
Telecom Italia Mobile SpA 1,509,523
Bayerische Motoren Werke AG 1,473,927
BIC SA 1,362,994
Roche Holdings AG Ltd
Genusscheine Non-Voting Shrs 1,351,974
Swiss Re Registered Shrs 1,273,652
Adidas AG 1,250,794
Hutchison Whampoa Ltd 1,232,174
PACIFIC BASIN Fund
HSBC Holdings PLC $3,211,208
Hutchison Whampoa Ltd 3,117,548
Malayan Banking Berhad 2,988,045
Cheung Kong Holdings Ltd 2,896,802
Shanghai Industrial Holdings Ltd 2,729,758
Rohm Co Ltd 2,016,019
United Engineers Berhad 1,985,656
CITIC Pacific Ltd 1,947,209
China Resources Enterprise 1,795,656
Development Bank Ltd Foreign Shrs 1,783,861
Composition of holdings is subject to change.
<PAGE>
INVESCO International Funds, Inc.
Statement of Investment Securities
April 30, 1997
UNAUDITED
Shares or
Industry Principal
Description Code Amount Value
- -------------------------------------------------------------------------
EUROPEAN Fund
COMMON STOCKS, RIGHTS &
WARRANTS 84.06%
AUSTRALIA 0.61%
Cortecs International Ltd
London Shrs* HD 500,000 $2,352,770
------------
AUSTRIA 1.08%
Wolford AG Bearer Shrs TA 40,000 4,122,242
------------
DENMARK 3.75%
Den Danske Bank BK 42,000 3,632,105
Falck A/S AF 20,000 5,082,520
Oticon Holding A/S
Series A Shrs HC 34,700 5,633,101
------------
14,347,726
------------
FINLAND 5.00%
Aspo Group OY EE 60,000 2,767,320
KCI Konecranes International MY 90,000 3,459,150
Orion-yhtyma OY Series A Shrs HD 90,000 3,372,671
Raision Tehtaat OY FD 45,000 3,727,234
TT Tieto OY Series B Shrs CO 76,720 5,823,748
------------
19,150,123
------------
FRANCE 7.51%
Alcatel Alsthom CM 70,000 7,783,885
Altran Technologies SA EC 16,500 5,738,966
AXA AP IN 100,000 6,152,748
CIPE-France SA SV 12,000 1,685,966
Dassault Systemes SA* CO 61,050 3,748,930
Penauille Polyservices SV 14,000 3,665,263
------------
28,775,758
------------
<PAGE>
GERMANY 6.11%
Adidas AG FT 47,000 4,898,941
Bayer AG Warrants (Exp 1997)* CH 10,000 1,992,261
Bayerische Motoren Werke AG AM 5,000 4,094,241
Deutsche Bank AG BK 70,000 3,694,634
Eurobike AG RT 85,000 2,257,896
Fresenius AG Rights* HC 52,500 172,807
Fresenius Medical Care AG
Sponsored ADR* HC 106,406 3,125,676
Hoechst AG CH 80,000 3,141,421
------------
23,377,877
------------
ITALY 6.64%
Bulgari SpA CJ 290,000 5,241,692
De Rigo SpA Sponsored ADR* HC 150,220 995,208
Ente Nazionale Idrocarburi SpA
Registered Shrs OG 600,000 3,044,976
Gucci Group NV New York
Registered Shrs RT 100,000 6,937,500
SAES Getters SpA Non-Conv
Savings Shrs EL 150,000 1,357,800
Stet Societa Finanziaria Telefonica
SpA Savings Shrs TL 850,000 3,152,140
Telecom Italia Mobile SpA TN 1,500,000 4,717,260
------------
25,446,576
------------
NETHERLANDS 6.16%
Baan Co NV* CO 100,000 5,375,000
BE Semiconductor Industries NV
New York Registered Shrs* ES 13,100 162,113
Getronics NV CO 108,000 3,270,881
ING Groep NV IN 172,500 6,773,912
OCE-Van Der Grinten NV OE 30,500 3,690,188
Randstad Holding NV SV 48,000 4,311,896
------------
23,583,990
------------
NORWAY 4.95%
Agresso A/S A* CO 200,000 505,562
Alvern A/S* SV 48,478 374,438
Ark A/S A CO 240,000 2,022,250
Kverneland Gruppen A/S MY 57,000 1,648,976
<PAGE>
Narvesen A/S A* RT 60,000 1,634,652
Nera A/S CM 275,000 1,757,181
Sensonor A/S* EL 230,000 1,485,792
Tomra Systems A/S A MY 491,398 9,523,240
------------
18,952,091
------------
PORTUGAL 3.49%
Cimentos de Portugal SA BD 260,000 5,597,134
Telecel-Comunicacoes Pessoais SA* TL 90,000 7,755,059
------------
13,352,193
------------
SPAIN 2.98%
Banco Bilbao Vizcaya S/A
Registered Shrs BK 50,000 3,368,232
Repsol S/A OG 100,000 4,196,598
Telefonica de Espana S/A TN 150,000 3,845,741
------------
11,410,571
------------
SWEDEN 4.73%
Assa Abloy AB Series B Shrs MG 207,446 4,058,768
Astra AB Series A Shrs HD 75,000 3,068,648
Caran AB Series B Shrs CO 62,500 537,730
Frontec AB Series B Shrs* CO 221,000 1,690,146
Nobel Biocare AB HC 195,000 2,858,335
Pricer AB Series B Shrs* SV 61,903 1,955,576
Scala International AB* CO 16,000 672,999
WM-data AB Series B Shrs CO 45,000 3,269,400
------------
18,111,602
------------
SWITZERLAND 8.43%
Credit Suisse Group
Registered Shrs BK 35,000 3,943,259
Disetronic Holding AG* HC 1,250 2,744,501
Novartis AG Registered Shrs HD 5,000 6,590,196
Oerlikon-Buhrle Holding AG
Ltd Registered Shrs* MY 20,000 1,981,810
Roche Holding AG Ltd
Genusscheine Non-Voting Shrs HD 200 1,689,968
Roche Holding AG Ltd Warrants
(Exp 2000)* HD 60,000 2,549,205
Sandoz AG Ltd Warrants
(Exp 1997)* HD 25,000 1,416,790
SEZ Holding AG Registered
A Shrs* ES 868 1,764,394
<PAGE>
Sulzer AG Registered Shrs MG 4,500 3,099,971
Swiss Re Group Registered Shrs IN 5,600 6,484,047
------------
32,264,141
------------
UNITED KINGDOM 21.41%
Arsenal Football Club PLC* ET 244 1,306,518
Bass PLC BV 200,000 2,583,179
British Airways PLC AR 300,000 3,431,799
British Sky Broadcasting Group PLC CA 360,000 3,329,575
British Telecommunications PLC TN 900,000 6,600,737
Burton Group PLC RT 1,200,000 2,959,622
Business Post PLC SV 200,000 1,491,169
Chiroscience Group PLC* HC 322,856 1,728,758
Compass Group PLC SV 450,000 4,972,458
FirstBus Group PLC AF 1,037,771 3,367,775
Glaxo Wellcome PLC HD 175,000 3,444,374
Granada Group PLC ET 240,000 3,469,768
Hays PLC SV 170,000 1,503,339
Kingfisher PLC RT 400,000 4,335,587
Manchester United PLC ET 297,000 3,166,163
Memory Corp PLC* CO 75,000 46,853
Misys PLC CO 240,000 4,789,915
National Westminster Bank PLC BK 260,000 3,079,695
Psion PLC CO 300,000 1,961,723
Rentokil Group PLC SV 550,000 3,605,417
Sage Group PLC CO 650,000 6,802,751
Siebe PLC EL 160,000 2,370,294
Tesco PLC RT 650,000 3,775,790
Tottenham Hotspur PLC ET 825,000 1,452,430
Visual Action Holdings PLC SV 300,000 815,357
Vodafone Group PLC TC 1,250,000 5,597,970
------------
81,989,016
------------
UNITED STATES 1.21%
OXiGENE Inc* HD 100,000 2,675,000
Rofin-Sinar Technologies* ES 125,000 1,948,951
------------
4,623,951
------------
TOTAL COMMON STOCKS, RIGHTS &
WARRANTS (Cost $256,192,743) 321,860,627
------------
<PAGE>
PREFERRED STOCKS 5.98%
GERMANY 5.98%
Fresenius AG Non-Voting Pfd HC 52,500 11,808,478
Porsche AG Non-Voting Pfd AM 4,000 5,197,203
SAP AG Non-Voting Pfd CO 32,000 5,892,935
------------
TOTAL PREFERRED STOCKS
(Cost $14,850,763) 22,898,616
------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 9.96%
UNITED STATES 9.96%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1997 due 5/1/1997
at 5.310%, repurchased at
$38,140,625 (Collateralized
by U.S. Treasury Bonds due
2/15/2016 at 9.250% value
$39,500,097)
(Cost 38,135,000) RA 38,135,000 38,135,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $309,178,506#) 382,894,243
------------
INTERNATIONAL GROWTH Fund
COMMON STOCKS, RIGHTS &
WARRANTS 71.09%
ARGENTINA 0.75%
Perez Companc SA Sponsored
ADR Representing 2 Class
B Shrs MY 50,850 818,883
------------
AUSTRALIA 2.36%
Aberfoyle Ltd GP 125,000 356,651
Broken Hill Proprietary Ltd IS 21,900 309,516
CSR Ltd BD 85,000 314,947
National Australia Bank Ltd BK 56,300 772,370
News Corp Ltd PB 95,000 438,885
WMC Holdings Ltd GP 66,000 392,101
------------
2,584,470
------------
<PAGE>
BRAZIL 0.91%
Cia de Paulista de Force e Luz EU 5,200,000 792,027
Cia Siderurgica Nacional
Sponsored ADR IS 6,000 211,501
------------
1,003,528
------------
CHILE 0.50%
Sociedad Quimica y Minera de
Chile SA Sponsored ADR* CH 9,300 551,025
------------
CHINA 0.58%
Guangshen Railway Ltd
Sponsored ADR* RR 27,000 641,250
------------
DENMARK 0.42%
Den Danske Bank BK 5,300 458,337
------------
FRANCE 6.09%
AXA SA IN 15,000 922,912
Alcatel Alsthom CM 16,200 1,801,413
BIC SA MG 8,600 1,362,994
Carrefour SA RT 1,400 874,098
Christian Dior SA PL 6,000 889,244
Elf Aquitaine SA OG 5,200 504,282
Sodexho SA SV 700 321,430
------------
6,676,373
------------
GERMANY 4.52%
Adidas AG FT 12,000 1,250,794
Bayer AG CH 30,000 1,193,624
Bayerische Motoren Werke AG AM 1,800 1,473,927
Fresenius AG Rights* HC 5,000 16,458
Hoechst AG CH 26,100 1,024,888
------------
4,959,691
------------
HONG KONG 2.66%
Bank of East Asia Ltd BK 78,000 268,341
CITIC Pacific Ltd CG 142,000 768,066
Hutchison Whampoa Ltd CG 166,000 1,232,174
Sun Hung Kai Properties Ltd RE 60,000 650,619
------------
2,919,200
------------
<PAGE>
INDIA 0.11%
EIH Ltd Sponsored GDR LH 7,500 120,750
------------
INDONESIA 1.50%
PT Bank Dagang Nasional
Foreign Shrs BK 350,000 349,685
Warrants (Exp 2000)* BK 50,000 17,510
PT Indocement Tunggal
Prakarsa Foreign Shrs BD 150,000 203,940
PT Indosat Sponsored ADR TL 33,900 932,250
PT Wicaksana Overseas
International Foreign Shrs RT 125,000 144,200
------------
1,647,585
------------
ISRAEL 0.79%
Blue Square-Israel Ltd
Sponsored ADR* RT 22,000 409,750
Teva Pharmaceutical Industries
Ltd ADR HD 9,000 456,750
------------
866,500
------------
ITALY 2.91%
Bulgari SpA CJ 37,000 668,768
Ente Nazionale Idrocarburi SpA
Registered Shrs OG 200,000 1,014,992
Telecom Italia Mobile SpA TN 480,000 1,509,523
------------
3,193,283
------------
JAPAN 12.69%
Acom Co Ltd CF 6,300 257,156
Bank of Tokyo-Mitsubishi Ltd BK 26,850 425,272
Canon Inc OE 13,000 308,344
Chugai Pharmaceutical Ltd HD 40,000 296,288
DDI Corp TN 64 425,142
Dai Nippon Printing Ltd PB 23,000 415,040
Dai-Tokyo Fire & Marine
Insurance Ltd IN 32,000 150,035
Ebara Corp MY 19,000 245,541
Fanuc Ltd EL 11,000 375,324
Fujitsu Ltd CO 36,000 374,458
Hitachi Ltd EL 21,000 190,302
Itochu Corp DB 80,000 378,870
<PAGE>
Kaneka Corp CH 66,000 351,054
Kawasaki Steel IS 120,000 354,600
Kitagawa Industries Ltd MG 8,050 189,033
Komatsu Ltd MY 38,000 277,880
Kyocera Corp EL 4,000 239,552
Meitec CO 14,000 280,213
Mitsubishi Estate Ltd RE 27,000 340,416
Mitsubishi Heavy Industries Ltd MY 52,000 343,379
Mitsubishi Materials MG 94,000 351,101
Mitsui Fudosan Ltd RE 18,000 205,668
NSK Ltd MY 50,000 301,804
NTT Data CO 14 409,287
Nippon COMSYS CM 31,000 354,206
Nippon Telegraph & Telephone TL 45 317,367
Nippon Television Network BR 1,080 318,289
Nishimatsu Construction Ltd EC 38,000 214,100
Nissan Motor Ltd AM 43,000 253,113
Nomura Securities Ltd IV 13,000 145,465
Onward Kashiyama Ltd TA 22,000 282,577
ORIX Corp FN 12,000 606,130
Rohm Co Ltd EL 8,000 620,314
Royal Co Ltd RS 19,000 339,864
Sanwa Bank Ltd BK 34,000 364,371
Shizuoka Bank Ltd BK 35,000 311,654
Sony Music Entertainment ET 12,200 419,153
Sumitomo Chemical Ltd CH 101,000 417,837
Taiyo Yuden Ltd EE 31,000 417,719
Tokyo Electric Power EU 14,200 251,766
Tokyu Department Store Ltd RT 81,000 268,716
Yamato Transport AF 28,000 286,832
Yamazaki Baking Ltd FD 15,000 231,672
------------
13,906,904
------------
MALAYSIA 1.76%
Arab-Malaysian Berhad CG 114,000 472,350
Malayan Banking Berhad BK 58,500 582,669
Resorts World Berhad GM 94,000 346,414
United Engineers Berhad Ltd EC 74,000 524,780
------------
1,926,213
------------
MEXICO 1.73%
Cemex SA de CV Series B Shrs BD 135,000 499,090
Cifra SA de CV Series B ADR RT 200,000 304,800
<PAGE>
Controladora Comercial
Mexicana SA de CV ADR RT 12,000 183,000
Empresas la Moderna SA de CV
Sponsored ADR TO 11,000 228,250
Panamerican Beverages Class A BV 23,400 678,600
------------
1,893,740
------------
NETHERLANDS 3.63%
ABN AMRO Holdings NV BK 8,600 591,110
Getronics NV CO 23,000 696,577
Gucci Group NV RT 6,400 445,809
ING Groep NV IN 27,500 1,079,899
IS Himalayan Fund NV* IC 36,696 506,405
Philips Electronics NV EL 12,600 657,780
------------
3,977,580
------------
PERU 0.53%
Cia de Minas Buenaventura SA
Sponsored ADR Representing
Series B Shrs GP 26,750 581,812
------------
PHILIPPINES 0.55%
C&P Homes EC 845,000 320,441
Philippine Long Distance
Telephone Sponsored ADR TL 5,000 278,750
------------
599,191
------------
PORTUGAL 0.29%
Cimentos de Portugal SA BD 15,000 322,912
------------
RUSSIA 0.43%
Surgutneftegaz Sponsored ADR OG 13,000 468,000
------------
SINGAPORE 1.36%
DBS Land Ltd RE 89,000 287,990
Oversea-Chinese Banking Ltd
Foreign Shrs BK 73,000 853,004
Singapore Press Holdings Ltd
Foreign Shrs PB 19,200 355,777
------------
1,496,771
------------
<PAGE>
SOUTH KOREA 0.46%
Korea Electric Power Ltd
Sponsored ADR EU 15,000 255,000
Samsung Electronics Ltd GDR^ EL 10,482 246,327
------------
501,327
------------
SPAIN 1.94%
Banco Bilbao Vizcaya S/A
Registered Shrs BK 26,200 1,764,954
Telefonica de Espana S/A TN 14,000 358,936
------------
2,123,890
------------
SWEDEN 1.97%
Astra AB Series A Shrs HD 23,350 955,372
Telefonaktiebolaget Ericsson
(L M) Series B Shrs CM 38,000 1,201,202
------------
2,156,574
------------
SWITZERLAND 5.93%
Adecco SA Bearer Shrs* SV 2,480 828,125
Credit Suisse Group Registered Shrs BK 9,400 1,059,046
Novartis AG Registered Shrs HD 1,175 1,548,696
Roche Holding AG Ltd
Genusscheine Non-Voting Shrs HD 160 1,351,974
Swiss Re Group Registered Shrs IN 1,100 1,273,652
Swissair AG Registered Shrs* AR 500 437,763
------------
6,499,256
------------
THAILAND 0.41%
Banpu Public Ltd Foreign Shrs GP 7,000 113,609
Tipco Asphalt PLC BD 67,000 338,531
------------
452,140
------------
UNITED KINGDOM 13.31%
BAA PLC AF 46,117 381,630
BOC Group PLC CH 18,400 282,063
BTR PLC MY 63,000 257,604
Bass PLC BV 46,200 596,714
British Airways PLC AR 35,560 406,783
British Telecommunications PLC TN 90,000 660,074
<PAGE>
Carlton Communications PLC BR 30,000 246,311
Croda International PLC CH 35,000 171,508
FirstBus Group PLC TR 82,891 268,998
Formosa Fund IDR Representing
Registered Shrs* IC 80 959,120
General Accident PLC IN 44,400 631,461
Glynwed International PLC MM 28,400 118,891
Granada Group PLC ET 34,900 504,562
Grand Metropolitan PLC FD 31,200 260,719
HSBC Holdings PLC BK 39,000 986,772
Hays PLC SV 50,400 445,696
Korea Europe Fund IDR* IC 135 330,750
Larsen & Toubro Ltd Regulation
S Sponsored GDR^ MY 19,000 268,375
Lloyds TSB Group PLC BK 132,000 1,205,850
MFI Furniture Group PLC HF 80,900 179,838
Marks & Spencer PLC RT 80,000 634,761
National Westminster Bank PLC BK 30,000 355,349
Prudential Corp PLC FN 73,650 715,832
Sainsbury (J) PLC RT 56,100 301,302
Shell Transport & Trading PLC OG 30,000 531,077
Siebe PLC EL 37,800 559,982
SmithKline Beecham PLC HD 54,000 868,756
TI Group PLC EC 34,600 296,991
Tomkins PLC MG 72,500 312,918
Unigate PLC FD 50,000 377,254
Wolseley PLC BD 58,800 471,320
------------
14,589,261
------------
TOTAL COMMON STOCKS, RIGHTS &
WARRANTS (Cost $67,573,846) 77,936,446
------------
PREFERRED STOCKS 4.84%
BRAZIL 2.72%
Cia Brasileira de Distribuicao
Grupo Pao de Acucar Pfd RT 22,000,000 442,648
Cia Energetica de Minas Gerais
Sponsored ADR Representing
Pfd^ EU 22,000 1,001,185
Telecomunicacoes Brasileiras
SA-Telebras Sponsored ADR
Representing Pfd^ TL 455 52,151
Telecomunicacoes Brasileiras
SA-Telebras Sponsored ADR
Representing Pfd TL 10,845 1,244,464
<PAGE>
Usinas Siderurgicas de Minas
Gerais SA Sponsored ADR
Representing Pfd^ IS 21,000 246,817
------------
2,987,265
------------
GERMANY 2.12%
Fresenius AG Non-Voting Pfd HC 5,000 1,124,617
SAP AG Non-Voting Pfd CO 6,500 1,197,002
------------
2,321,619
------------
TOTAL PREFERRED STOCKS
(Cost 3,342,119) 5,308,884
------------
FIXED INCOME SECURITIES 1.13%
HONG KONG 1.13%
Bangkok Bank PLC, Unsecured
Conv Deb, 3.250%, 3/3/2004 BK 154,000 141,295
New World Infrastructure Ltd
Conv, Regulation S
5.000%, 7/15/2001^ EC 980,000 1,092,700
------------
TOTAL FIXED INCOME SECURITIES
(Cost $1,359,539) 1,233,995
------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 22.94%
UNITED STATES 22.94%
Repurchase agreement with
State Street Bank & Trust Co
dated 4/30/1997 due 5/1/1997
at 5.310%, repurchased at
$25,151,709 (Collateralized
by US Treasury Bonds due
8/15/2013 at 12.000% value
$26,104,795)
(Cost $25,148,000) RA 25,148,000 25,148,000
-----------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $97,423,504)
(Cost for Income Tax Purposes
$97,508,853) 109,627,325
-----------
<PAGE>
PACIFIC BASIN Fund
COMMON STOCKS & WARRANTS 71.57%
AUSTRALIA 4.23%
Australia & New Zealand
Banking Group Ltd BK 150,000 960,318
Brambles Industries Ltd CT 70,000 1,269,481
Broken Hill Proprietary Ltd IS 65,000 918,654
Comalco Ltd GP 270,000 1,371,884
News Corp Ltd PB 863 3,987
WMC Holdings Ltd GP 180,000 1,069,366
-----------
5,593,690
-----------
HONG KONG 18.17%
Asia Securities International* RE 817,000 350,679
Cheung Kong Holdings Ltd RE 330,000 2,896,802
Cheung Kong Infrastructure
Holdings Ltd EC 200,000 566,709
China Everbright-IHD Holdings
Ltd RT 200,000 200,091
China Light & Power Ltd EU 150,000 675,791
China Resources Enterprise Ltd RE 650,000 1,795,656
CITIC Pacific Ltd CG 360,000 1,947,209
Continental Mariner
Investment Ltd* AF 700,000 415,673
Goldlion Holdings Ltd RT 450,000 265,766
Guangdong Investments Ltd CG 900,000 842,319
Hang Seng Bank Ltd BK 130,000 1,464,215
Henderson Land Development
Ltd RE 130,000 1,095,014
HongKong Telecommunications
Ltd CM 700,000 1,201,837
Hutchison Whampoa Ltd CG 420,000 3,117,548
National Mutual Asia Ltd IN 300,000 309,818
New World Development Ltd RE 240,000 1,384,888
Oriental Metals FN 2,000,000 587,364
Shanghai Industrial Holdings
Ltd MG 485,000 2,729,758
Silver Grant International
Industries Ltd RE 1,030,000 555,124
Sun Hung Kai Properties Ltd RE 150,000 1,626,547
------------
24,028,808
------------
JAPAN 27.10%
77 Bank Ltd BK 140,000 1,147,328
Acom Co Ltd CF 24,400 995,969
Asahi Bank Ltd BK 180,000 1,102,097
Bank of Tokyo-Mitsubishi Ltd BK 62,500 989,925
<PAGE>
Chugai Pharmaceutical Ltd HD 170,000 1,259,224
Dai-Tokyo Fire & Marine
Insurance Ltd IN 150,000 703,290
Fujitsu Ltd CO 170,000 1,768,272
Hankyu Department Stores RT 130,000 1,116,596
Itochu Corp DB 260,000 1,231,329
Kaneka Corp CH 310,000 1,648,890
Kawasaki Steel IS 430,000 1,270,650
Kitagawa Industries Ltd MG 438,525 904,659
Komatsu Ltd MY 150,000 1,096,896
Mitsubishi Estate Ltd RE 130,000 1,639,040
Mitsubishi Heavy Industries
Ltd MY 170,000 1,122,585
Mitsubishi Materials MG 230,000 859,078
NTT Data CO 50 1,461,740
Nippon COMSYS CM 128,000 1,462,528
Nippon Yusen Kabushiki Kaisha AF 207,000 750,334
Nishimatsu Construction Ltd EC 110,000 619,762
Onward Kashiyama Ltd TA 88,000 1,130,307
ORIX Corp FN 25,000 1,262,770
Rohm Co Ltd EL 26,000 2,016,019
Sharp Corp EL 102,000 1,326,204
Sony Music Entertainment ET 30,000 1,030,704
Sumitomo Chemical Ltd CH 300,000 1,241,100
Sumitomo Warehouse Ltd AF 200,000 985,000
Taiyo Yuden Ltd EE 100,000 1,347,480
Tokyo Electric Power EU 32,000 567,360
Yamato Transport AF 70,000 717,080
Yamazaki Baking Ltd FD 68,000 1,050,246
------------
35,824,462
------------
MALAYSIA 11.43%
Arab Malaysian Berhad CG 280,000 1,160,158
Berjaya Capital Berhad IV 900,000 1,362,549
Berjaya Group Berhad CG 919,000 1,083,760
Gamuda Berhad EC 10,000 36,056
Gamuda Berhad Warrants
(Exp 2001)* EC 20,000 24,542
HICOM Holdings Berhad
Warrants (Exp 2000)* AF 256,750 259,818
Landmarks Berhad LH 750,000 992,031
Malayan Banking Berhad BK 300,000 2,988,045
Malaysian Industrial
Development Finance Berhad FN 750,000 1,021,911
Malaysian Resources Berhad CG 350,000 1,003,983
Phileo Land Berhad* RE 200,000 537,848
<PAGE>
Rashid Hussain Berhad IV 250,000 1,663,345
Renong Berhad CG 727,000 996,366
United Engineers Berhad Ltd EC 280,000 1,985,655
------------
15,116,067
------------
SINGAPORE 6.52%
City Developments Ltd RE 140,000 1,132,544
DBS Land Ltd RE 400,000 1,294,336
Development Bank Ltd
Foreign Shrs BK 150,000 1,783,861
Keppel Corp Ltd RE 450,000 1,157,435
Oversea-Chinese Banking Ltd
Foreign Shrs BK 130,600 1,526,059
United Overseas Bank Ltd BK 183,325 1,723,860
------------
8,618,095
------------
SOUTH KOREA 0.90%
Korea Electric Power Ltd BU 40,000 1,192,744
------------
THAILAND 0.79%
Bangkok Bank PLC Foreign Shrs BK 55,000 509,480
Electricity Generating PLC
Foreign Shrs EU 200,000 535,892
------------
1,045,372
------------
UNITED KINGDOM 2.43%
HSBC Holdings PLC BK 126,916 3,211,208
------------
TOTAL COMMON STOCKS & WARRANTS
(Cost $92,169,059) 94,630,446
------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 28.43%
UNITED STATES 28.43%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1997 due 5/1/1997
at 5.310%, repurchased at
$37,591,544 (Collateralized by
US Treasury Bonds due
2/15/2016 at 9.250% value
$38,934,193)
(Cost $37,586,000) RA 37,586,000 37,586,000
------------
<PAGE>
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $129,755,059)
(Cost for Income Tax Purposes
$129,920,460) 132,216,446
===========
* Security is non-income producing.
# Also represents cost for income tax purposes.
^ The following are restricted securities at April 30, 1997:
Value as
Aquisition Aquisition % of
Description Date(s) Cost Net Assets
- -----------------------------------------------------------------------------
International Growth Fund
Cia Energetica de Minas Gerais
Sponsored ADR Representing Pfd 1/19/96-
3/6/97 $658,000 0.92%
Larsen & Toubro Ltd Regulation S
Sponsored GDR 3/25/96-
3/26/96 298,072 0.27
New World Infrastructure Ltd
Conv, Regulation S
5.000%, 7/15/2001 2/14/97-
3/19/97 1,195,848 1.00
Samsung Electronics Ltd GDR 7/24/95-
4/24/97 443,141 0.23%
Telecomunicacoes Brasileiras SA-
Telebras Sponsored
ADR Representing Pfd 9/14/94 25,971 0.05
Usinas Siderurgicas de
Minas Gerais SA Sponsored ADR
Representing Pfd 7/20/95-
8/19/96 97,875 0.23
-----------
2.70%
===========
<PAGE>
Summary of Investments by Industry
% of
Industry Investment
Industry Code Securities Value
- -----------------------------------------------------------------------------
European Fund
Air Freight AF 2.21% $8,450,295
Airlines AR 0.90 3,431,799
Automobiles AM 2.43 9,291,444
Banks BK 4.63 17,717,925
Beverages BV 0.68 2,583,179
Building Materials BD 1.46 5,597,134
Cable CA 0.87 3,329,575
Chemicals CH 1.34 5,133,682
Communications-Equipment &
Manufacturing CM 2.49 9,541,066
Computer Related CO 12.12 46,410,823
Consumer - Jewelry, Novelties & Gifts CJ 1.37 5,241,692
Electrical Equipment EE 0.72 2,767,320
Electronics EL 1.36 5,213,886
Electronics-- Semiconductor ES 1.01 3,875,458
Engineering & Construction EC 1.50 5,738,966
Entertainment ET 2.45 9,394,879
Foods FD 0.97 3,727,234
Footwear FT 1.28 4,898,941
Healthcare Drugs -- Pharmaceuticals HD 7.09 27,159,622
Health Care Related HC 7.59 29,066,864
Insurance IN 5.07 19,410,707
Machinery MY 4.34 16,613,176
Manufacturing MG 1.87 7,158,739
Office Equipment & Supplies OE 0.96 3,690,188
Oil & Gas Related OG 1.89 7,241,574
Repurchase Agreements RA 9.96 38,135,000
Retail RT 5.72% 21,901,047
Services SV 6.37 24,380,879
Telecommunications -
Cellular & Wireless TC 1.46 5,597,970
Telecommunications -
Long Distance TL 2.85 10,907,199
Telephone TN 3.96 15,163,738
Textile - Apparel Manufacturing TA 1.08 4,122,242
-------------------------
100.00 % $382,894,243
=========================
<PAGE>
International Growth Fund
Air Freight AF 0.61% $668,462
Airlines AR 0.77 844,546
Automobiles AM 1.58 1,727,040
Banks BK 9.58 10,507,589
Beverages BV 1.16 1,275,314
Broadcasting BR 0.52 564,600
Building Materials BD 1.96 2,150,740
Chemicals CH 3.64 3,991,999
Communications -- Equipment &
Manufacturing CM 3.06 3,356,821
Computer Related CO 2.70 2,957,537
Conglomerates CG 2.26 2,472,590
Consumer Finance CF 0.23 257,156
Consumer - Jewelry, Novelties
& Gifts CJ 0.61 668,768
Distribution DB 0.35 378,870
Electric Utilities EU 2.10 2,299,978
Electrical Equipment EE 0.38 417,719
Electronics EL 2.64 2,889,581
Engineering & Construction EC 2.23 2,449,012
Entertainment ET 0.84 923,715
Financial FN 1.21 1,321,962
Foods FD 0.79 869,645
Footwear FT 1.14 1,250,794
Gaming GM 0.32 346,414
Gold & Precious Metals Mining GP 1.32 1,444,173
Health Care Drugs - Pharmaceuticals HD 5.00 5,477,836
Health Care Related HC 1.04 1,141,075
Household Furniture & Appliances HF 0.16 179,838
Insurance IN 3.70 4,057,959
Investment Bank/Broker Firm IV 0.13 145,465
Investment Companies IC 1.64 1,796,275
Iron & Steel IS 1.02 1,122,434
Lodging - Hotels LH 0.11 120,750
Machinery MY 2.29 2,513,466
Manufacturing MG 2.02 2,216,046
Metals Mining MM 0.11 118,891
Office Equipment & Supplies OE 0.28 308,344
Oil & Gas Related OG 2.30 2,518,351
Personal Care PL 0.81 889,244
Publishing PB 1.10 1,209,702
Railroads RR 0.58 641,250
Real Estate Investment Trust RE 1.35 1,484,693
Repurchase Agreements RA 22.94 25,148,000
<PAGE>
Restaurants RS 0.31 339,864
Retail RT 3.66 4,009,084
Services SV 1.46 1,595,251
Telecommunications -
Long Distance TL 2.58 2,824,982
Telephone TN 2.69 2,953,675
Textile-- Apparel Manufacturing TA 0.26 282,577
Tobacco TO 0.21 228,250
Transportation TR 0.25 268,998
-------------------------
100.00% $109,627,325
=========================
Pacific Basin Fund
Air Freight AF 2.37% $3,127,905
Banks BK 13.16 17,406,396
Chemicals CH 2.19 2,889,990
Communications -
Equipment & Manufacturing CM 2.01 2,664,365
Computer Related CO 2.44 3,230,012
Conglomerates CG 7.68 10,151,343
Consumer Finance CF 0.75 995,969
Containers CT 0.96 1,269,481
Distribution DB 0.93 1,231,329
Electric Utilities EU 2.25 2,971,787
Electrical Equipment EE 1.02 1,347,480
Electronics EL 2.53 3,342,223
Engineering & Construction EC 2.44 3,232,724
Entertainment ET 0.78 1,030,704
Financial FN 2.17 2,872,045
Foods FD 0.79 1,050,246
Gold & Precious Metals Mining GP 1.85 2,441,250
Health Care Drugs -
Pharmaceuticals HD 0.95 1,259,224
Insurance IN 0.77 1,013,108
Investment Bank/Broker Firm IV 2.29 3,025,894
Iron & Steel IS 1.66 2,189,304
Lodging - Hotels LH 0.75 992,031
Machinery MY 1.68 2,219,481
Manufacturing MG 3.40 4,493,495
Publishing PB 0.00 3,987
Real Estate Investment Trust RE 11.70 15,465,913
Repurchase Agreements RA 28.43 37,586,000
<PAGE>
Retail RT 1.20 1,582,453
Textile - Apparel Manufacturing TA 0.85 1,130,307
-------------------------
100.00 % $132,216,446
=========================
See Notes to Financial Statements
<PAGE>
INVESCO International Funds, Inc.
Statement of Assets and Liabilities
April 30, 1997
UNAUDITED
International Pacific
European Growth Basin
Fund Fund Fund
-----------------------------------------
ASSETS
Investment Securities:
At Cost~ $309,178,506 $97,423,504 $129,755,059
=========================================
At Value~ $382,894,243 $109,627,325 $132,216,446
Cash 445,841 0 0
Foreign Currency (Cost $806,392,
$191,385 and $0, respectively) 818,157 193,503 0
Receivables:
Investment Securities Sold 508,048 530,000 431,959
Fund Shares Sold 2,336,587 667,571 6,348,402
Dividends and Interest 1,011,561 364,809 562,236
Prepaid Expenses and Other Assets 90,099 31,243 48,283
` ------------------------------------------
TOTAL ASSETS 388,104,536 111,414,451 139,607,326
------------------------------------------
LIABILITIES
Payables:
Custodian 0 25,343 387,897
Investment Securities Purchased 5,061,645 826,726 0
Fund Shares Repurchased 5,021,114 1,305,239 3,493,792
Depreciation on Forward Foreign
Currency Contracts 24,915 1,706 55
Accrued Expenses and Other Payables 67,383 21,961 41,581
------------------------------------------
TOTAL LIABILITIES 10,175,057 2,180,975 3,923,325
------------------------------------------
Net Assets at Value 377,929,479 109,233,476 135,684,001
==========================================
Paid-in Capital* 290,485,336 94,500,290 133,430,675
Accumulated Undistributed
Net Investment Loss (169,627) (39,934) (312,112)
Accumulated Undistributed Net Realized
Gain on Investment Securities and
Foreign Currency Transactions 13,917,631 2,570,228 109,702
Net Appreciation of Investment
Securities and Foreign Currency
Transactions 73,696,139 12,202,892 2,455,736
------------------------------------------
Net Assets at Value 377,929,479 109,233,476 135,684,001
==========================================
Shares Outstanding 22,975,408 6,490,315 10,857,901
Net Asset Value, Offering and Redemption
Price per Share $16.45 $16.83 $12.50
==========================================
~ Investment securities at cost and value at April 30, 1997 include repurchase
agreements of $38,135,000, $25,148,000 and $37,586,000 for European,
International Growth and Pacific Basin Funds, respectively.
* 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.
See Notes to Financial Statements
<PAGE>
INVESCO International Funds, Inc.
Statement of Operations
Six Months Ended April 30, 1997
UNAUDITED
International Pacific
European Growth Basin
Fund Fund Fund
------------------------------------------------
INVESTMENT INCOME INCOME
Dividends $2,029,790 $636,132 $705,085
Interest 180,866 201,241 226,624
Foreign Taxes Withheld (320,125) (83,381) (67,117)
------------------------------------------------
TOTAL INCOME 1,890,531 753,992 864,592
================================================
Investment Advisory Fees 1,266,316 466,538 503,919
Transfer Agent Fees 468,860 190,452 399,317
Administrative Fees 30,409 11,998 15,078
Custodian Fees and Expenses 218,046 62,999 153,732
Directors' Fees and Expenses 10,243 5,702 7,179
Professional Fees and Expenses 17,667 13,045 14,040
Registration Fees and Expenses 34,259 22,238 40,367
Reports to Shareholders 63,131 25,968 47,648
Other Expenses 18,344 11,839 14,612
-------------------------------------------------
TOTAL EXPENSES 2,127,275 810,779 1,195,892
Fees and Expenses Paid
Indirectly (84,995) (25,149) (31,464)
-------------------------------------------------
NET EXPENSES 2,042,280 785,630 1,164,428
-------------------------------------------------
<PAGE>
NET INVESTMENT LOSS (151,749) (31,638) (299,836)
-------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on Investment
Securities and Foreign
Currency Transactions 15,125,937 2,839,855 211,922
-------------------------------------------------
Change in Net Appreciation
(Depreciation)of Invest-
ment Securities and
Foreign Currency
Transactions 21,981,540 2,409,611 (6,118,595)
-------------------------------------------------
NET GAIN (LOSS) ON
INVESTMENT SECURITIES 37,107,477 5,249,466 (5,906,673)
-------------------------------------------------
Net Increase (Decrease)
in Net Assets
from Operations $36,955,728 $5,217,828 $(6,206,509)
=================================================
See Notes to Financial Statements
<PAGE>
INVESCO International Funds, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
International
European Fund Growth Fund Pacific Basin Fund
-------------------------- -------------------------- --------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30 October 31 April 30 October 31 April 30 October 31
-------------------------- -------------------------- --------------------------
1997 1996 1997 1996 1997 1996
UNAUDITED UNAUDITED UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $(151,749) $876,030 $(31,638) $387,079 $(299,836) $ (72,366)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 15,125,937 19,780,096 2,839,855 4,498,297 211,922 10,089,266
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign Currency
Transactions 21,981,540 29,753,509 2,409,611 5,988,409 (6,118,595) (1,230,912)
--------------------------- ---------------------------- ----------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS 36,955,728 50,409,635 5,217,828 10,873,785 (6,206,509) 8,785,988
-------------------------- --------------------------- ---------------------------
DISTRIBUTIONS
TO SHAREHOLDERS
Net Investment Income (131,171) (876,030) (140,079) (387,079) (52,110) 0
In Excess of Net Investment
Income 0 (516,756) 0 (394,151) 0 (432,102)
<PAGE>
Net Realized Gain on
Investment Securities (20,402,754) (18,669,435) (4,053,526) (2,897,940) (8,942,341) (2,389,197)
-------------------------- --------------------------- ----------------------------
TOTAL DISTRIBUTIONS (20,533,925) (20,062,221) (4,193,605) (3,679,170) (8,994,451) (2,821,299)
-------------------------- --------------------------- ----------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of
Shares 569,638,309 466,074,093 225,422,586 349,892,500 287,407,602 667,157,615
Reinvestment of Distribu-
tions 19,868,088 19,468,999 4,154,162 3,657,292 8,700,090 2,720,245
-------------------------- -------------------------- --------------------------
589,506,397 485,543,092 229,576,748 353,549,792 296,107,692 669,877,860
Amounts Paid for
Repurchases of Shares (528,586,949) (439,501,864) (215,953,891)(341,548,549) (295,092,650) (680,346,294)
-------------------------- -------------------------- --------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM FUND
SHARE TRANSACTIONS 60,919,448 46,041,228 13,622,857 12,001,243 1,015,042 (10,468,434)
-------------------------- -------------------------- --------------------------
Total Increase (Decrease)
in Net Assets 77,341,251 76,388,642 14,647,080 19,195,858 (14,185,918) (4,503,745)
NET ASSETS
Beginning of Period 300,588,228 224,199,586 94,586,396 75,390,538 149,869,919 154,373,664
-------------------------- -------------------------- --------------------------
End of Period $377,929,479 $300,588,228 $109,233,476 $94,586,396 $135,684,001 $149,869,919
========================== ========================== ==========================
Accumulated Undistributed
Net Investment Income
(Loss) Included in Net
Assets at End of Period $(169,627) $113,293 $(39,934) $131,783 $(312,112) $39,834
FUND SHARE TRANSACTIONS
Shares Sold 34,917,185 31,746,297 13,467,860 21,434,516 21,596,841 45,840,305
<PAGE>
Shares Issued from
Reinvestment of
Distributions 1,306,769 1,465,160 256,975 231,481 657,604 188,387
--------------------------- -------------------------- --------------------------
36,223,954 33,211,457 13,724,835 21,665,997 22,254,445 46,028,692
Shares Repurchased (32,218,378) (30,152,989) (12,829,107)(20,850,135) (22,016,225) (46,568,736)
-------------------------- -------------------------- --------------------------
Net Increase (Decrease)
in Fund Shares 4,005,576 3,058,468 895,728 815,862 238,220 (540,044)
========================== ========================== ==========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO International Funds, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO International
Funds, Inc. (the "Fund") was incorporated in Maryland and presently consists of
three separate Funds: European Fund, International Growth Fund and Pacific Basin
Fund. The investment objectives of the Funds are: to seek capital appreciation
through investments in designated geographical sectors for European and Pacific
Basin Funds; and to seek a high total return through investments in designated
geographical sectors for International Growth Fund. The Fund is registered under
the Investment Company Act of 1940 (the "Act") as a diversified, open-end
management investment company. The following is a summary of significant
accounting policies consistently followed by the 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 - Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sales
price in the market where such securities are primarily traded. If last
sales prices are not available, securities are valued at the highest
closing bid price obtained from one or more dealers making a market for
such securities or by a pricing service approved by the Fund's board of
directors.
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.
Debt securities are valued at evaluated bid prices as determined by a
pricing service approved by the Fund's board of directors. 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.
If market quotations or pricing service valuations are not readily
available, securities are valued at fair value as determined in good faith
by the Fund's board of directors. Restricted securities are valued in
accordance with procedures established by the Fund's board of directors.
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.
<PAGE>
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.
The cost of securities is translated into U.S. dollars at the rates of
exchange prevailing when such securities were acquired. Income and expenses
are translated into U.S. dollars at the rates of exchange prevailing when
accrued.
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.
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. 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 Fund may have elements of risk due to concentrated investments in
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 investments 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.
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 each Fund to sell a security at a fair price
and may substantially delay the sale of the security which each Fund seeks
to sell. In addition, these securities may exhibit greater price
volatility than securities for which secondary markets exist.
<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. Each Fund has
elected to treat a portion of distributions of both realized and
unrealized gains on forward foreign currency contracts as capital gain
distributions.
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 net realized capital gains, if any, to its
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for foreign currency transactions, nontaxable
dividends, net operating losses and expired capital loss carryforwards.
F. 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.
G. EXPENSES - Each of the Funds bears expenses incurred specifically on its
behalf and, in addition, each Fund bears a portion of general expenses,
based on the relative net assets of each Fund.
Under an agreement between each Fund and the Fund's Custodian, agreed
upon Custodian Fees and Expenses are reduced by credits granted by the
Custodian from any temporarily uninvested cash. Similarly, Transfer Agent
Fees are reduced by credits earned by each Fund from security brokerage
transactions under certain broker/service arrangements with third parties.
Such credits are included in Fees and Expenses Paid Indirectly in the
Statement of Operations.
<PAGE>
For the six-months ended April 30, 1997, Fees and Expenses Paid
Indirectly consisted of the following:
Custodian Fees Transfer
Fund and Expenses Agent Fees
- --------------------------------------------------------------------------------
European Fund $83,893 $1,102
International Growth Fund 25,124 25
Pacific Basin Fund 31,099 365
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 for European and Pacific
Basin Funds is based on the annual rate of 0.75% on the first $350 million of
average net assets; reduced to 0.65% on the next $350 million of average net
assets; and 0.55% on average net assets in excess of $700 million. International
Growth Fund's fees are based on the annual rate of 1.00% on the first $500
million of average net assets; reduced to 0.75% on the next $500 million of
average net assets; and 0.65% on average net assets in excess of $1 billion.
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Asset
Management Limited ("IAM"), an affiliate of IFG, investment decisions of the
Fund are made by IAM. Fees for such sub-advisory services are paid by IFG. In
accordance with an Administrative Agreement, each Fund pays IFG an annual fee of
$10,000, plus an additional amount computed at an annual rate of 0.015% of
average net assets to provide administrative, accounting and clerical services.
The fee is accrued daily and paid monthly.
IFG receives a transfer agent fee at an annual rate of $20.00 per
shareholder account, or, where applicable, per participant in an omnibus
account, per year. IFG may pay such fee for participants in omnibus accounts to
affiliates or third parties. The fee is paid monthly at one-twelfth of the
annual fee and is based upon the actual number of accounts in existence during
each month.
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months
ended April 30, 1997, the aggregate cost of purchases and proceeds from sales of
investment securities (excluding all U.S. Government securities and short-term
securities) were as follows:
Fund Purchases Sales
- --------------------------------------------------------------------------------
European Fund $112,834,188 $82,224,203
International Growth Fund 19,203,408 26,545,863
Pacific Basin Fund 31,290,301 78,396,653
<PAGE>
There were no purchases or sales of U.S. Government securities.
NOTE 4 - APPRECIATION AND DEPRECIATION. At April 30, 1997, the gross
appreciation of securities in which there was an excess of value over tax cost,
the gross depreciation of securities in which there was an excess of tax cost
over value and the resulting net appreciation by Fund were as follows:
Gross Gross Net
Fund Appreciation Depreciation Appreciation
- --------------------------------------------------------------------------------
European Fund $84,560,315 $10,844,578 $73,715,737
International Growth
Fund 16,912,546 4,794,074 12,118,472
Pacific Basin Fund 13,199,396 10,903,410 2,295,986
NOTE 5 - TRANSACTIONS WITH AFFILIATES. Certain of the Fund's officers and
directors are also officers and directors of IFG or IAM.
The Fund has adopted an unfunded 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 of 40% of the retainer fee at the time of
retirement.
Pension expenses for the six months ended April 30, 1997, included in
Directors' Fees and Expenses in the Statement of Operations, and unfunded
accrued pension costs and pension liability included in Prepaid Expenses and
Accrued Expenses, respectively, in the Statement of Assets and Liabilities were
as follows:
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- --------------------------------------------------------------------------------
European Fund $2,307 $14,034 $27,027
International Growth Fund 814 6,290 11,691
Pacific Basin Fund 1,456 13,363 24,988
NOTE 6 - LINE OF CREDIT. The Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 10% of the Net Assets at Value of each respective
Fund. Each Fund agrees to pay annual fees and interest on the unpaid principal
balance based on prevailing market rates as defined in the agreement. At April
30, 1997, there were no such borrowings.
<PAGE>
Other Information
UNAUDITED
On January 31, 1997, a special meeting of the shareholders of the Fund was held
at which the eleven directors identified below were elected, the selection of
Price Waterhouse LLP as independent accountants (Proposal 1), the approval of a
new investment advisory agreement with INVESCO Funds Group, Inc. ("IFG")
(Proposal 2) and a new sub-advisory agreement between IFG and INVESCO Trust
Company (Proposal 3) were ratified. The following is a report of the votes cast:
Withheld/
Nominee/Proposal For Against Abstain Total
- --------------------------------------------------------------------------------
European Fund
Charles W. Brady 12,707,514 0 484,675 13,192,189
Dan J. Hesser 12,707,758 0 484,431 13,192,189
Fred A. Deering 12,695,147 0 497,042 13,192,189
Victor L. Andrews 12,705,209 0 486,980 13,192,189
Bob R. Baker 12,701,385 0 490,804 13,192,189
Lawrence H. Budner 12,701,310 0 490,879 13,192,189
Daniel D. Chabris 12,684,605 0 507,584 13,192,189
A.D. Frazier, Jr 12,708,845 0 483,344 13,192,189
Hubert L. Harris, Jr 12,723,917 0 468,272 13,192,189
Kenneth T. King 12,679,556 0 512,633 13,192,189
John W. McIntyre 12,718,283 0 473,906 13,192,189
Proposal 1 12,516,159 205,781 470,248 13,192,188
Proposal 2 12,136,918 380,704 674,393 13,192,189
Proposal 3 12,107,022 402,440 682,552 13,192,188
International Growth Fund
Charles W. Brady 4,395,400 0 113,616 4,509,016
Dan J. Hesser 4,395,287 0 113,729 4,509,016
Fred A. Deering 4,394,645 0 114,371 4,509,016
Victor L. Andrews 4,394,750 0 114,266 4,509,016
Bob R. Baker 4,394,041 0 114,975 4,509,016
Lawrence H. Budner 4,395,142 0 113,874 4,509,016
Daniel D. Chabris 4,394,529 0 114,487 4,509,016
A.D. Frazier, Jr 4,395,597 0 113,419 4,509,016
Hubert L. Harris, Jr 4,395,033 0 113,983 4,509,016
Kenneth T. King 4,393,118 0 115,898 4,509,016
John W. McIntyre 4,394,996 0 114,020 4,509,016
<PAGE>
Proposal 1 4,378,338 42,990 87,687 4,509,015
Proposal 2 4,357,070 49,846 102,100 4,509,016
Proposal 3 4,353,281 55,588 100,147 4,509,016
Pacific Basin Portfolio
Charles W. Brady 8,242,014 0 384,736 8,626,750
Dan J. Hesser 8,247,426 0 379,324 8,626,750
Fred A. Deering 8,223,621 0 403,129 8,626,750
Victor L. Andrews 8,243,120 0 383,630 8,626,750
Bob R. Baker 8,240,859 0 385,891 8,626,750
Lawrence H. Budner 8,237,699 0 389,051 8,626,750
Daniel D. Chabris 8,224,545 0 402,205 8,626,750
A.D. Frazier, Jr 8,241,666 0 385,084 8,626,750
Hubert L. Harris, Jr 8,268,490 0 358,260 8,626,750
Kenneth T. King 8,212,076 0 414,674 8,626,750
John W. McIntyre 8,259,567 0 367,183 8,626,750
Proposal 1 8,129,026 161,932 335,792 8,626,750
Proposal 2 7,886,438 281,188 459,123 8,626,749
Proposal 3 7,865,004 308,154 453,592 8,626,750
<PAGE>
INVESCO International Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year ended October 31
------------ -------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
European Fund
PER SHARE DATA
Net Asset Value --
Beginning of Period $15.85 $14.09 $12.95 $12.20 $10.14 $11.14
------------ -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) (0.01) 0.05 0.23 0.16 0.14 0.20
Net Gains or (Losses)
on Securities
(Both Realized and
Unrealized) 1.75 3.00 1.12 0.75 2.06 (1.00)
------------ -------------------------------------------------------------------
Total from Investment Operations 1.74 3.05 1.35 0.91 2.20 (0.80)
------------ -------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.01 0.08 0.21 0.16 0.14 0.20
Distributions from
Capital Gains 1.13 1.21 0.00 0.00 0.00 0.00
------------ -------------------------------------------------------------------
Total Distributions 1.14 1.29 0.21 0.16 0.14 0.20
------------ -------------------------------------------------------------------
<PAGE>
Net Asset Value --
End of Period 16.45 15.85 14.09 12.95 12.20 10.14
============ ===================================================================
TOTAL RETURN 11.60%* 23.47% 10.42% 7.43% 21.78% (7.22%)
RATIOS
Net Assets -- End of Period
($000 Omitted) 377,929 300,588 224,200 349,842 270,544 117,276
Ratio of Expenses to Average
Net Assets 0.62%*@ 1.36%@ 1.40% @ 1.20% 1.28% 1.29%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.04%)* 0.37% 1.26% 1.28% 1.76% 2.23%
Portfolio Turnover Rate 25%* 91% 96% 70% 44% 87%
Average Commission Rate Paid^^ 0.0397* 0.0367 - - - -
</TABLE>
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
^^ The average commission rate paid is the total brokerage commissions paid
on applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
INVESCO International Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Ended Year Ended
April 30 Year Ended October 31 October 31 December 31
---------- -----------------------------------------------------------------
1997 1996 1995 1994< 1993^< 1992 1991
UNAUDITED
<S> <C> <C> <C> <C> <C> <C> <C>
International Growth Fund
PER SHARE DATA
Net Asset Value --
Beginning of Period $16.91 $15.78 $17.29 $15.75 $12.57 $14.51 $13.69
---------- -----------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss)+ 0.00 0.07 0.08 0.04 0.08 0.12 0.17
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.75 1.77 (0.61) 1.57 3.16 (1.94) 0.82
---------- -----------------------------------------------------------------
Total from Investment Operations 0.75 1.84 (0.53) 1.61 3.24 (1.82) 0.99
---------- -----------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.03 0.15 0.09 0.07 0.06 0.11 0.17
In Excess of Net
Investment Income 0.00 0.00 0.03 0.00 0.00 0.00 0.00
Distributions from Capital Gains 0.80 0.56 0.86 0.00 0.00 0.01 0.00
---------- -----------------------------------------------------------------
Total Distributions 0.83 0.71 0.98 0.07 0.06 0.12 0.17
---------- -----------------------------------------------------------------
<PAGE>
Net Asset Value -- End of Period 16.83 16.91 15.78 17.29 15.75 12.57 14.51
========== =================================================================
TOTAL RETURN 4.62%* 12.01% (2.84%) 10.21% 29.08%* (12.52%) 7.19%
RATIOS
Net Assets - End of Period
($000 Omitted) 109,233 94,586 75,391 161,884 108,677 35,192 42,039
Ratio of Expenses to
Average Net Assets 0.86%*@ 1.80%@ 1.81%@ 1.50% 1.43%~ 1.36% 1.48%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.03%)* 0.43% 0.41% 0.46% 0.94%~ 0.83% 1.17%
Portfolio Turnover Rate 22%* 64% 62% 87% 46%* 50% 71%
Average Commission Rate Paid^^ 0.0050* 0.0329 - - - - -
</TABLE>
+ Net Investment Loss for April 30, 1997 amounted to less than $0.01 on a per
share basis.
^ From January 1, 1993 to October 31, 1993, the Fund's current fiscal year-end.
< The per share information was computed based on weighted average shares.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
~ Annualized
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the total
number of related shares purchased or sold which is required to be disclosed for
fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
INVESCO International Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year ended October 31
------------ -------------------------------------------------------------------
1997 1996 1995 1994 1993< 1992
UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
Pacific Basin Fund
PER SHARE DATA
Net Asset Value --
Beginning of Period $14.11 $13.83 $17.07 $15.11 $11.02 $13.19
------------ -------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) (0.03) (0.02) 0.06 0.04 0.04 0.07
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (0.75) 0.51 (1.45) 2.28 4.09 (2.18)
------------ -------------------------------------------------------------------
Total from Investment
Operations (0.78) 0.49 (1.39) 2.32 4.13 (2.11)
------------ -------------------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income+ 0.00 0.03 0.06 0.04 0.04 0.06
Distributions from
Capital Gains 0.83 0.18 1.79 0.32 0.00 0.00
------------ -------------------------------------------------------------------
Total Distributions 0.83 0.21 1.85 0.36 0.04 0.06
------------ -------------------------------------------------------------------
<PAGE>
Net Asset Value --
End of Period 12.50 14.11 13.83 17.07 15.11 11.02
============ ===================================================================
TOTAL RETURN (5.87%)* 3.55% (8.31%) 15.63% 37.51% 16.03%)
RATIOS
Net Assets -- End of Period
($000 Omitted) 135,684 149,870 154,374 352,888 299,192 26,488
Ratio of Expenses to
Average Net Assets 0.88%*@ 1.60%@ 1.52%@ 1.24% 1.22% 1.78%
Ratio of Net Investment Income
(Loss) to Average Net Assets (0.22%)* (0.04%) 0.37% 0.28% 0.63% 0.66%
Portfolio Turnover Rate 24%* 70% 56% 70% 30% 123%
Average Commission Rate Paid^^ 0.0064* 0.0148 - - - -
</TABLE>
< The per share information was computed based on weighted average shares.
+ Distributions from Net Investment Income for April 30, 1997 amounted to less
than $0.01 on a per share basis.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the total
number of related shares purchased or sold which is required to be disclosed for
fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
International
International Growth 49 FSIGX IntlGr
Asian Growth 41 IVAGX AsianGr
European 56 FEURX Europ
European Small Company 37 IVECX EuroSmCo
Latin American Growth 34 IVSLX LatinAmGr
Pacific Basin 54 FPBSX PcBas
- --------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Environmental Services 59 FSEVX Envirn
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Realty 42 IVSRX Realty
Technology 55 FTCHX Tech
Utilities 58 FSTUX Util
Worldwide Capital Goods 38 ISWGX WldCap
Worldwide Communications 39 ISWCX WldCom
- --------------------------------------------------------------------------------
Capital Appreciation
Growth 10 FLRFX Grwth
Dynamics 20 FIDYX Dynm
Small Company 74 IDSCX DivSmCo
Emerging Growth 60 FIEGX Emgrth
- --------------------------------------------------------------------------------
Growth & Income
Industrial Income 15 FIIIX IndInc
Value Equity 46 FSEQX ValEq
Multi-Asset Allocation 70 IMAAX MulAstAl
Balanced 71 IMABX Bal
Total Return 48 FSFLX TotRtn
- --------------------------------------------------------------------------------
<PAGE>
Bond
Short-Term Bond 33 INIBX ShTrBd
Intermediate Government Bond 47 FIGBX IntGov
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
- --------------------------------------------------------------------------------
Tax-Exempt
Tax-Free Intermediate Bond 36 IVTIX *
Tax-Free Long-Term Bond 35 FTIFX TxFre
- --------------------------------------------------------------------------------
Money Market
U.S. Government Money Fund 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money Fund 40 FFRXX InvTaxFree
* This fund does not meet size requirements to be assigned a ticker symbol in
newspaper listings.
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 FUNDS
INVESCO Funds Group, Inc., (SM) Distributor
Post Office Box 173706
Denver, CO 80217-3706
1-800-525-8085
PAL(R): 1-800-424-8085
http://www.invesco.com
If you're in Denver, visit one of our convenient Investor Centers:
Denver Tech Center,
7800 East Union Avenue, Lobby Level;
Cherry Creek, 155-B Fillmore Street, Fillmore Plaza
This information must be preceded or accompanied by a current prospectus.
<PAGE>
