Market Overview May 1998
During the last six months, global indexes in Europe and the United States
raced to record highs while nascent markets throughout Asia and Latin America,
with isolated exceptions, struggled. This is a continuation of the pattern
established last year where investors favored large, liquid markets with
predictable earnings and avoided many emerging markets due to their volatility.
Europe: What once was a dream is now closer to reality, as the European
Union plans to launch its common currency next year. The first 11 nations that
have qualified for the ECU (the new currency, also referred to as the "euro")
are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, and Spain. This new economic zone has over 290 million
inhabitants and accounts for roughly 20% of the world's Gross Domestic Product
(GDP).
As the convergence of the European Union approaches, investors' enthusiasm
for the region has ignited. There are signs that, after 10 years of stagnant
growth, European economies are starting to accelerate. Even though much of
Europe has double-digit unemployment rates, declining interest rates have
produced an equity culture, and Europeans are investing record amounts in these
markets. In addition, the constraints of the Maastricht Treaty, which sets the
foundation for the European Union, have forced rigid fiscal discipline on many
of Europe's free-spending governments. This jubilation over equities produced
staggering returns for most European markets in the last six months, and, in
Italy and Spain, returns greater than 30% since the first of this year.
Latin America: Like most of the world's emerging markets, Latin American
stocks experienced extreme volatility during the last six months. Nervousness
regarding the Asian financial crisis created a negative environment for all
emerging markets. Plus, many Latin American economies generate a significant
portion of their Gross Domestic Product from oil revenues. As the worldwide
demand for oil decreased due to the Asian financial crisis, and many OPEC
(Organization of Petroleum Exporting Countries) members produced more than their
quota, a global oversupply occurred, driving the real price of oil down to
levels not seen since the early 1970s. This glut negatively influenced the
markets of Chile, Mexico, and Venezuela, and, to a lesser extent, Brazil.
Despite short-term volatility, the future for Latin American markets still
appears quite bright. Foreign direct investment in 1997 reached its highest
level ever, and privatization of many state-owned companies is ahead of
schedule. In addition, many nations have implemented the necessary austerity
measures to protect their currencies from speculators -- a direct result of
these governments surviving the peso devaluation of 1994-95.
<PAGE>
Asia/Pacific Rim: It appears that the worst of the Asian financial crisis
is almost behind us. However, the financial damage left in its wake could take
years to repair and may cause social unrest for many countries. During the last
six months, we witnessed the first significant rally in the Asian markets since
the early summer of 1997, but the rebound was short-lived, and many of these
markets have given back the gains produced in February. Those countries willing
to implement the necessary economic and fiscal reforms have fared the best in
the last six months -- some even producing returns of greater than 30% in 1998
(in U.S. dollars). South Korea, Thailand, and the Philippines have witnessed a
rebound in both their equity markets and currencies, and appear on the road to
recovery, although day-to-day volatility remains extreme. Governments that have
dragged their feet in implementing necessary reforms, such as Indonesia, have
suffered contractions in their equity markets and a devaluation of their
currency, leading to further social and political upheavals. In fact, Indonesia
named its first new head of state in more than three decades.
Despite isolated recoveries, Japan remains problematic. The primary engine
of growth for the Asian/Pacific Rim region, Japan's economy has stagnated for
the better part of seven years. The inability of the Japanese government to
stimulate domestic consumption could retard the recovery of the markets and
economies throughout this region.
Even though the government passed a 16.65 trillion yen economic-stimulus
package -- mostly involving increased fiscal spending -- the concern remains
that, without an income tax cut, it may do little to stimulate consumer
spending. If Japan can find a way to stimulate its economy, it would go a long
way toward repairing many of the emerging markets in the Asian/Pacific Rim
region.
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 funds' 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 4/30/98, or from
inception through 4/30/98. 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. (1)(2)
Emerging Markets Fund
INVESCO Emerging Markets Fund would like to welcome our new shareholders.
With offices around the globe, INVESCO has been investing in the world's
emerging markets for years. Our investment professionals live and travel
throughout Europe, Latin America, and Asia searching for exceptional
opportunities in these nascent markets. However, as with all aggressive
investments, investors should keep in mind that higher returns are typically
accompanied by volatility.
Although it's too early in the fund's history to talk about performance --
the fund was introduced in February 1998 -- we are excited about its long-term
potential. Stock market performance is highly dependent on economic growth. The
economies of developed countries such as the U.S. may expand at annual rates of
2% to 4%. But in emerging markets, growth rates may exceed 10% for prolonged
periods of time. Not only are these economies growing rapidly, but -- with more
than 80% of the world's population and 60% of the world's resources -- their
potential for growth over the long-term is staggering.
<PAGE>
European Fund
INVESCO European Fund received the prestigious five-star rating for
risk-adjusted performance by Morningstar for the overall, three-year, five-year,
and 10-year periods ended 4/30/98.(3)
For the six-month period ended 4/30/98, INVESCO European Fund achieved a
total return of 35.38%, compared to 27.82% for the Morgan Stanley Capital
Index-AC Europe. (Of course, past performance is not a guarantee of future
results.)(1)(2)
European Fund
Average Annualized Total Return
as of 4/30/98(2)
1 year 43.23%
---------------------------------
5 years 21.80%
---------------------------------
10 years 14.03%
---------------------------------
During the last six months, we have made only minor changes to the fund's
portfolio. The European bull market has continued, driven by corporate
restructuring and downsizing, accelerating economic growth, and an increased
demand for equities by European investors saving for retirement. By focusing on
shareholder value, companies are improving their profitability and
competitiveness. In addition, the constraints of the Maastricht Treaty, which
forms the foundation for the European Union, have driven down interest rates
throughout continental Europe -- improving the environment for equities.
With Europe firing on all cylinders, our bottom-up investment philosophy
has led us to overweight positions in Italy, Ireland, Spain, and Portugal.
Declining interest rates and strong economic growth have created a positive
backdrop for companies in these markets. In fact, one of our favorite companies
remains the Spanish company TelePizza. This Spanish pizza chain has strong
regional franchises and approximately 24% of the market share of the growing
fast food market in Spain. It continues to see accelerating sales, and it has
plans to export its franchises to other underdeveloped markets, such as Portugal
and Poland.
Graph: European Fund 10-Year Total Return
vs. MSCI-AC Europe
This line graph compares the value of a $10,000 investment in INVESCO
European Fund to the value of a $10,000 investment in the MSCI-AC Europe
Index, assuming in each case reinvestment of all dividends and capital
gain distributions, for the 10-year period ended 4/30/98.
Looking forward, the fund will continue to invest in the fastest-growing
companies in Europe. After years of underperforming many of the world's equity
markets, it appears that Europe is in the early stages of a long-term bull
market. The convergence of the EMU (European Monetary Union) is creating
positive economic fundamentals which may influence these markets for years to
come.
<PAGE>
International Growth Fund
International Growth Fund
Average Annualized Total Return
as of 4/30/98(2)
1 year 14.36%
--------------------------------
5 years 9.72%
--------------------------------
10 years 6.80%
--------------------------------
For the six-month period ended 4/30/98, INVESCO International Growth Fund
had a total return of 16.56%. The Morgan Stanley Capital
Index-Europe/Australia/Far East had a total return of 14.58% for the same
period. (The MSCI-EAFE is a weighted index of international stock market
performance. Of course, past performance is not a guarantee of future
results.)(1)(2)
The main changes in the fund during the last six months were a reduction
in the number of stocks in the portfolio and adjustments to regional asset
allocations. The convergence of the European Monetary Union is creating a
positive economic backdrop for selected European nations. Although individual
stock selection drives the performance of the fund, decreasing interest rates
and accelerating economic growth have caused us to favor Europe as the most
attractive area in the world. Thus, we have increased the fund's exposure there
in the last six months, while reducing our cash position and decreasing
investments in Japan and the U.K. Two of our favorite investments in Europe are
the French company Alcatel Alsthom, which has a fast-growing telecommunications
equipment business, and the Italian firm Telecom Italia Mobile SpA -- the
world's largest mobile operator with more than 10 million subscribers.
Graph: International Growth Fund 10-Year Total Return
vs. MSCI-Europe/Australia/Far East
This line graph compares the value of a $10,000 investment in INVESCO
International Growth Fund to the value of a $10,000 investment in the
MSCI-Europe/Australia Far East Index, assuming in each case reinvestment
of all dividends and capital gain distributions, for the 10-year period
ended 4/30/98.
Although we are positive regarding the underlying fundamentals in Europe,
our regional teams throughout the world are less optimistic about the short-term
performance of many other regions. We are cautious with respect to the Far East,
as political and social unrest has prolonged an already volatile situation. In
addition, the profit/loss outlook for many Japanese companies continues to be
negatively effected by the Asian financial crisis -- which could lead to more
<PAGE>
disappointments in earnings by Japanese firms. Furthermore, continued
strength of the U.S. economy may lead to higher interest rates domestically,
making us cautious in regards to U.S. equities over the short-term.
Looking forward, if it were not for Europe, we would certainly be more
defensively positioned. However, given our favorable outlook for Europe, we will
keep a major portion of the fund's assets in this region, while remaining more
cautious to the rest of the world's markets.
Pacific Basin Fund
For the six-month period ended 4/30/98, INVESCO Pacific Basin Fund had a
total return of -15.03%, compared to a total return of -9.20% 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)
During the last six months, the continuation of the Asian financial crisis
propelled both equity markets and currencies lower throughout Asia and the
Pacific Rim region. Although we feel that the worst of the crisis is behind us,
continued uncertainty regarding economic and political stability in the region
may cause severe volatility on a day-to-day basis. We believe that those
countries that are willing and have the political courage to make the necessary
economic reforms should be the first to recover from the crisis.
The fund continues to overweight Australia and Hong Kong. These economies
appear to have the strongest fundamentals in the region, and currency and
economic turmoil is having less of a negative impact on economic growth and
corporate earnings. We are emphasizing stocks with earnings visibility, strong
balance sheets, and reasonable valuation levels. Two of our favorite investments
in this sector are Australia & New Zealand Banking Group Ltd. and National
Australia Bank Ltd. Both companies are well-positioned in their respective
markets and fundamentally sound.
Pacific Basin Fund
Average Annualized Total Return
as of 4/30/98(2)
1 year -33.79%
---------------------------------
5 years -4.76%
---------------------------------
10 years -1.37%
---------------------------------
Looking forward, as with any crisis, the darkest time is right before the
dawn. Although the speed and depth of economic recovery will vary in each
Asian/Pacific Rim country depending on their implementation of economic reforms
and the pace of re-capitalization of their banking sectors, positive structural
changes are occurring in the region. Once currencies stabilize and economic
reforms take effect, the region could be poised for a period of long-term
economic growth.
<PAGE>
Graph: Pacific Basin Fund 10-Year Total Return
vs. MSCI-Pacific
This line graph compares the value of a $10,000 investment in the
INVESCO Pacific Basin Fund to the value of a $10,000 investment in the
MSCI-Pacific Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the 10-year period ended 4/30/98.
(1) The MSCI-EAFE, MSCI-AC Europe, and MSCI-Pacific are unmanaged indexes of
common stocks considered to be representative of the overall international,
European, and Pacific Basin securities markets, respectively.
(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) Morningstar proprietary rankings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated for
the fund's three-, five-, and 10-year average annual returns (based on available
track records) in excess of 90 day Treasury bill returns. The top 10% of funds
in an investment category receive 5 stars; the next 22.5%, 4 stars. As of
4/30/98, European Fund received 5 stars among 740 funds in the international
equity fund category for the 3-year period, 5 stars among 326 for the 5-year,
and 5 stars among 101 for the 10-year.
<PAGE>
Visit
INVESCO's netPAL for
Account Information
INVESCO now offers secure access to your account from your own computer - at
your convenience.
Account Balance
Latest Transaction
Latest Distributions
1. Go to the INVESCO Funds' web site at http://www.invesco.com.
2. Select netPAL on the navigation bar.
3. Click on INVESCO Account Information.
4. Key in your account number and password. (Your password is identical to the
four-digit personal identificaiton number code you used for the PAL (R)
Personal Account Line, INVESCO's automated telephone information system.)
5. Click on "Submit" Your current account summary will then be displayed
automatically.
<PAGE>
INVESCO International Funds, Inc.
Ten Largest Common Stock Holdings
April 30, 1998
Description Value
- --------------------------------------------------------------------------------
EMERGING MARKETS Fund
Grupo Financiero Banamex
Accival SA de CV Series B Shrs $ 19,244
Alpha Credit Bank 17,925
Cemex SA de CV Series B Shrs 17,810
Blue Square-Israel Ltd Sponsored ADR
Representing Ord Shrs 17,600
Corporacion Geo SA de CV Series B Shrs 15,849
Sidenor SA 15,519
Telefonica del Peru SA Sponsored ADR
Representing 10 Class B Shrs 15,488
MOL Magyar Olaj-es Gazipari Rt
Sponsored GDR Representing
Regulation S Shrs 15,200
South African Breweries Ltd 15,093
ABSA Group Ltd 13,844
EUROPEAN Fund
Mannesmann AG $ 17,457,812
Tomra Systems A/S A 11,629,749
Vodafone Group PLC 11,499,180
Riunione Adriatica di Sicurta SpA 11,239,029
Bank of Ireland 11,228,316
ING Groep NV 11,209,650
Alcatel Alsthom 11,117,088
Banca di Roma SpA 11,055,616
Misys PLC 10,918,716
Adecco SA Bearer Shrs 10,917,104
INTERNATIONAL GROWTH Fund
Telecom Italia Mobile SpA $ 1,305,285
Alcatel Alsthom 1,278,465
Mannesmann AG 1,110,952
Novartis AG Registered Shrs 1,107,778
SmithKline Beecham PLC 1,049,080
Lloyds TSB Group PLC 988,202
Banque Nationale de Paris 859,356
ING Groep NV 851,284
Telefonaktiebolaget LM Ericsson
Series B Shrs 843,540
Cie Generale des Eaux 817,447
Description Value
- --------------------------------------------------------------------------------
PACIFIC BASIN Fund
Brambles Industries Ltd $ 1,751,770
Austalia & New Zealand Banking
Group Ltd 1,744,533
<PAGE>
National Australia Bank Ltd 1,705,577
Telstra Corp Ltd Installment Receipts 1,173,562
HSBC Holdings PLC 1,053,238
Cheung Kong Holdings Ltd 997,282
Hutchison Whampoa Ltd 946,121
Toshiba Corp 929,388
Fujitsu Ltd 818,512
NEC Corp 789,374
Composition of holdings is subject to change.
--------------------------------------
INVESCO International Funds, Inc.
Statement of Investment Securities
April 30, 1998
UNAUDITED
Shares or
Industry Principal
Description Code Amount Value
- --------------------------------------------------------------------------------
EMERGING MARKETS Fund
COMMON STOCKS 61.30%
ARGENTINA 4.10%
Sociedad Comercial del Plata SA CG 7,000 $ 10,081
Telefonica de Argentina SA
Sponsored ADR Representing
10 Class B Shrs TN 350 13,497
--------
23,578
--------
BRAZIL 3.96%
Cia de Saneamento Basico do
Estado de Sao Paulo EU 55,392 12,395
Cia Paranaense de Energia-Copel EU 900,000 10,384
--------
22,779
--------
CHILE 2.27%
Sociedad Quimica y Minera de
Chile SA Sponsored ADR
Representing 10 Class B Shrs CH 300 13,031
--------
EGYPT 3.93%
Al-Ahram Beverages SAE GDR
Representing Regulation
S Shrs~ BV 300 9,405
Paints & Chemical Industries
SAE GDR Representing
1/3 Regulation S Shrs~ CH 1,200 13,170
--------
22,575
--------
<PAGE>
GREECE 5.82%
Alpha Credit Bank BK 170 $ 17,925
Sidenor SA IS 400 15,519
--------
33,444
--------
HONG KONG 6.08%
CITIC Pacific Ltd CG 4,000 12,290
Hutchison Whampoa Ltd CG 2,000 12,368
Shanghai Industrial Holdings Ltd MG 3,000 10,283
--------
34,941
--------
HUNGARY 2.64%
MOL Magyar Olaj-es Gazipari Rt
Sponsored GDR Representing
Regulation S Shrs~ OG 500 15,200
--------
INDIA 2.32%
Videsh Sanchar Nigam Ltd GDR
Representing 1/2 Regulation
S Shr*~ TL 1,100 13,310
--------
INDONESIA 1.11%
PT Telekomunikasi Indonesia
Sponsored ADR Representing
20 Ord Shrs TL 800 6,400
--------
ISRAEL 5.28%
Blue Square-Israel Ltd Sponsored
ADR Representing Ord Shrs RT 1,100 17,600
Makhteshim Chemical Works
Ltd* CH 1,500 12,716
--------
30,316
--------
MEXICO 10.84%
Cemex SA de CV Series B Shrs BD 3,000 17,810
Cifra SA de CV Series C Shrs RT 2,200 3,799
Corporacion Geo SA de CV
Series B Shrs* HB 2,300 15,849
Grupo Financiero Banamex
Accival SA de CV Series
B Shrs* BK 6,200 19,244
Panamerican Beverages Class A BV 140 5,582
--------
62,284
--------
PERU 2.70%
Telefonica del Peru SA Sponsored
ADR Representing 10
Class B Shrs TN 700 15,488
--------
<PAGE>
RUSSIA 3.28%
Gazprom ADR Representing
10 Regulation S Shrs~ OG 550 10,038
Mosenergo Sponsored ADR
Representing 30 Ord Shrs EU 250 8,838
--------
18,876
--------
SOUTH AFRICA 6.97%
ABSA Group Ltd BK 1,600 13,844
Sasol Ltd OG 1,100 11,095
South African Breweries Ltd BV 450 15,093
--------
40,032
--------
TOTAL COMMON STOCKS
(Cost $327,415) $ 352,254
PREFERRED STOCKS 15.73%
BRAZIL 15.73%
Centrais Eletricas Brasileiras
SA, Series B, Pfd EU 200,000 8,986
Centrais Eletricas de Santa
Catarina SA, Series B, Pfd EU 13,000 15,000
Cia Energetica de Minas Gerais
Sponsored ADR Representing
1,000 Pfd Shrs^ EU 220 10,577
Petroleo Brasileiro SA Pfd OG 75,000 18,979
Telecomunicacoes Brasileiras SA
Sponsored ADR Representing
1,000 Pfd Shrs TN 150 18,272
Telecomunicacoes de Sao
Paulo SA, Pfd TN 55,000 18,605
--------
TOTAL PREFERRED STOCKS
(Cost $84,477) 90,419
--------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 22.97%
UNITED STATES 22.97%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1998 due 5/1/1998
at 5.470%, repurchased at
$132,020 (Collateralized
by US Treasury Bonds due
8/15/2017 at 8.875%
value $141,728)
(Cost $132,000) RA $132,000 132,000
--------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $543,892#) $ 574,673
==========
<PAGE>
EUROPEAN Fund
COMMON STOCKS, RIGHTS &
WARRANTS 95.67%
DENMARK 1.37%
Falck A/S AF 50,000 $ 2,915,311
William Demant Holding A/S HC 90,000 4,841,827
-----------
7,757,138
-----------
FINLAND 1.80%
Nokia OYJ Series A Shrs CM 90,000 6,046,160
Raisio Group PLC FD 22,500 4,129,891
-----------
10,176,051
-----------
FRANCE 10.00%
Accor SA LH 36,000 9,804,972
Alcatel Alsthom CM 60,000 11,117,088
Banque Nationale de Paris BK 100,000 8,425,057
Compagnie Generale des Eaux SV 55,000 10,218,083
Credit Commercial de France BK 55,000 4,387,012
Dassault Systemes SA CO 202,100 7,925,802
Promodes Group RT 10,000 $ 4,814,081
-----------
56,692,095
-----------
GERMANY 10.39%
BASF AG CH 125,000 5,565,625
Bayerische Vereinsbank AG BK 95,000 7,226,257
Deutsche Bank AG* BK 100,000 7,695,748
Dresdner Bank AG BK 170,000 9,198,676
Eurobike AG RT 75,000 1,797,161
Mannesmann AG MY 22,000 17,457,812
Volkswagen AG AM 12,500 9,954,040
-----------
58,895,319
-----------
IRELAND 3.33%
Bank of Ireland BK 550,000 11,228,316
CBT Group PLC Sponsored
ADR Representing 1/2 Ord Shr* CO 150,000 7,631,250
-----------
18,859,566
-----------
ITALY 12.40%
Banca di Roma SpA* BK 6,000,000 11,055,616
Credito Italiano SpA BK 1,800,000 9,457,377
Istituto Bancario San Paolo
di Torino BK 700,000 10,113,151
Istituto Nazionale delle
Assicurazioni IN 2,000,000 5,976,466
Riunione Adriatica
di Sicurta SpA IN 700,000 11,239,029
Telecom Italia Mobile SpA
<PAGE>
Savings Shrs TN 2,500,000 9,071,925
Telecom Italia SpA TN 625,000 4,673,523
Telecom Italia SpA Savings Shrs TN 1,650,000 8,697,197
-----------
70,284,284
-----------
NETHERLANDS 4.40%
Baan Co NV* CO 230,000 10,177,537
ING Groep NV IN 172,500 11,209,650
Royal Philips Electronics NV EL 40,000 3,523,857
-----------
24,911,044
-----------
NORWAY 2.05%
Tomra Systems A/S A MY 361,398 11,629,749
-----------
PORTUGAL 3.34%
Banco Comercial Portugues SA
Registered Shrs BK 269,497 9,448,141
M Accoes Portugal
Closed End Fund* IV 90,000 2,302,315
Telecel-Comunicacoes
Pessoais SA* TL 40,000 7,175,861
-----------
18,926,317
-----------
SPAIN 8.54%
Actividades de Construccion y
Servicios SA EC 75,000 2,460,388
Banco Bilbao Vizcaya SA
Registered Shrs BK 110,000 5,658,235
Banco Central Hispano
Americano SA Registered Shrs BK 178,750 5,946,019
Banco Popular Espanol SA BK 25,000 2,050,323
Corporacion Bancaria de
Espana SA BK 125,000 $ 10,415,641
Corporacion Mapfre IN 150,000 5,885,247
Telefonica de Espana SA TN 245,000 10,223,403
Telefonica de Espana SA Rights* TN 175,000 135,485
TelePizza SA* RS 38,965 5,598,750
-----------
48,373,491
-----------
SWEDEN 5.21%
Assa Abloy AB Series B Shrs MG 208,190 7,263,554
NetCom Systems AB
Series B Shrs* TL 90,000 3,058,608
Nordbanken Holding AB BK 700,000 5,155,828
Telefonaktiebolaget LM
Ericsson Series B Shrs CM 170,000 8,962,612
Volvo AB Series B Shrs AM 175,000 5,110,601
-----------
29,551,203
-----------
<PAGE>
SWITZERLAND 7.62%
Adecco SA Bearer Shrs SV 25,000 10,917,104
Disetronic Holding AG HC 1,250 3,525,141
Nestle SA Registered Shrs FD 2,000 3,880,156
Novartis AG Registered Shrs HD 5,000 8,266,998
SEZ Holding AG Registered
A Shrs ES 868 1,533,528
Swiss Bank Warrants
(Exp 2001)* BK 400,000 3,093,457
Union Bank of Switzerland
Bearer Shrs BK 25,000 8,025,321
Valora Holding AG
Registered Shrs RS 15,000 3,920,157
-----------
43,161,862
-----------
UNITED KINGDOM 25.04%
Abbey National PLC FN 340,000 6,384,031
Arsenal Football Club PLC* ET 226 1,058,042
Barclays PLC BK 50,000 1,442,100
Bass PLC BV 89,286 1,694,393
British Petroleum PLC OG 2,725 43,033
British Telecommunications PLC TN 275,000 2,984,102
Chiroscience Group PLC* HD 272,856 1,499,808
Compass Group PLC SV 450,000 7,787,340
Cortecs PLC* HD 231,554 646,554
Dr Solomon's Group PLC
Sponsored ADR Representing
3 Ord Shrs* CO 235,000 6,991,250
General Electric PLC MG 1,050,000 8,690,220
Glaxo Wellcome PLC HD 295,000 8,335,756
Hays PLC SV 170,000 2,883,615
Kingfisher PLC RT 225,000 4,085,532
Lloyds TSB Group PLC BK 400,000 5,989,104
Misys PLC CO 227,142 10,918,716
National Westminster Bank PLC BK 300,000 6,004,152
Norwich Union PLC IB 150,000 1,120,449
Orange PLC* TC 1,500,000 10,765,590
Sage Group PLC CO 500,000 10,491,800
Securicor Group PLC SV 1,200,000 $ 7,945,344
SEMA Group PLC CO 138,428 5,038,702
SmithKline Beecham PLC HD 500,000 5,960,680
Tesco PLC RT 350,000 3,277,120
Tottenham Hotspur PLC ET 500,000 581,020
Vodafone Group PLC TC 1,050,000 11,499,180
Zeneca Group PLC HD 180,000 7,752,730
-----------
141,870,363
-----------
UNITED STATES 0.18%
OXiGENE Inc* HD 100,000 1,025,000
-----------
<PAGE>
TOTAL COMMON STOCKS, RIGHTS &
WARRANTS
(Cost $400,756,113) 542,113,482
-----------
PREFERRED STOCKS 4.33%
GERMANY 4.33%
Fresenius AG Non-Voting Pf HC 50,333 12,074,888
SAP AG Non-Voting Pfd CO 25,000 12,468,672
-----------
TOTAL PREFERRED STOCKS
(Cost $15,376,322)
24,543,560
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $416,132,435)
(Cost for Income Tax Purposes
$416,259,827) $ 566,657,042
=============
INTERNATIONAL GROWTH Fund
COMMON STOCKS & RIGHTS 87.62%
AUSTRALIA 1.17%
National Australia Bank Ltd BK 15,000 $ 213,197
News Corp Ltd PB 24,000 160,856
Woodside Petroleum Ltd OG 25,000 163,484
-----------
537,537
-----------
FRANCE 14.12%
Accor SA LH 2,800 762,609
Alcatel Alsthom CM 6,900 1,278,465
Banque Nationale de Paris BK 10,200 859,356
Cie Generale des Eaux SV 4,400 817,447
Elf Aquitaine SA OG 5,700 747,338
Pinault-Printemps-Redoute SA RT 1,050 781,337
SGS-Thomson
Microelectronics NV* ES 6,000 512,483
TOTAL SA Series B Shrs OG 6,000 712,889
-----------
6,471,924
-----------
GERMANY 8.60%
Adidas-Salomon AG FT 2,900 480,775
Bayerische Motoren Werke AG AM 400 441,349
Bayerische Vereinsbank AG BK 8,300 631,347
Deutsche Bank AG BK 10,100 777,271
Mannesmann AG MY 1,400 1,110,952
VEBA AG MY 7,600 502,291
-----------
3,943,985
-----------
<PAGE>
GREECE 0.62%
Hellenic Telecommunication
Organization SA* TL 10,000 $ 286,219
HONG KONG 4.49%
Beijing Datang Power Generation
Ltd Shrs EU 680,000 276,528
CITIC Pacific Ltd CG 160,000 491,605
Hutchison Whampoa Ltd CG 110,000 680,218
New World Infrastructure Ltd* EC 150,000 322,422
Shanghai Industrial Holdings Ltd MG 85,000 291,342
------------
2,062,115
------------
HUNGARY 0.80%
MOL Magyar Olaj-es Gazipari
Rt Regulation S Sponsored
GDR Representing 1 Ord Shr~ OG 12,000 364,800
------------
INDIA 0.55%
Videsh Sanchar Nigam Ltd GDR
Representing 1/2 Regulation S
Shrs*~ TL 21,000 254,100
------------
IRELAND 0.85%
Bank of Ireland BK 19,300 391,681
------------
ISRAEL 0.77%
Blue Square-Israel Ltd Sponsored
ADR Representing Ord Shrs RT 22,000 352,000
------------
ITALY 7.45%
Banca di Roma SpA* BK 317,000 584,105
Credito Italiano SpA BK 145,000 761,844
Telecom Italia Mobile SpA TN 229,000 1,305,285
Telecom Italia SpA
Savings Shrs* TN 145,000 764,299
------------
3,415,533
------------
JAPAN 5.70%
Ajinomoto Co FD 12,000 96,541
Bank of Tokyo-Mitsubishi Ltd BK 8,850 109,779
Canon Inc OE 5,000 118,444
Dai Nippon Printing Ltd PB 9,000 153,258
Fujitsu Ltd CO 14,000 163,702
JUSCO Co Ltd RT 7,000 113,108
Kitagawa Industries Ltd MG 58 479
Mitsubishi Estate Ltd RE 13,000 125,937
NKG Spark Plug Ltd AP 20,000 157,421
NTT Data CO 2 86,581
Nippon Telegraph & Telephone TL 13 114,130
Nomura Securities Ltd IV 7,000 85,560
ORIX Corp FN 2,000 138,500
Rohm Co Ltd EL 1,000 113,070
<PAGE>
Sanwa Bank Ltd BK 11,000 97,404
Seven-Eleven Japan Ltd RT 2,000 133,959
Shiseido Co Ltd PL 12,000 158,480
Sony Corp ET 1,700 141,656
Terumo Corp HC 8,000 117,339
Toray Industries TA 18,000 96,995
Toshiba Corp ES 35,000 162,643
Toyota Motor AM 5,000 130,553
-----------
2,615,539
-----------
MEXICO 1.49%
Cemex SA de CV Series B Shrs BD 55,000 326,520
Panamerican Beverages Class A BV 9,000 358,875
-----------
685,395
-----------
NETHERLANDS 4.28%
Baan Co NV* CO 9,700 424,867
ING Groep NV IN 13,100 851,284
Royal Philips Electronics NV EL 7,800 687,152
-----------
1,963,303
-----------
SINGAPORE 0.76%
Oversea-Chinese Banking
Ltd Foreign Shrs BK 66,000 348,028
-----------
SOUTH AFRICA 0.50%
ABSA Group Ltd BK 26,600 230,148
-----------
SPAIN 5.44%
Argentaria Bancaria de
Espana SA BK 7,700 641,603
Banco Bilbao Vizcaya SA BK 15,100 776,721
Banco Popular Espanol SA BK 3,100 254,240
Telefonica de Espana SA Rights* TN 27,000 20,903
Telefonica de Espana SA TN 19,200 801,181
-----------
2,494,648
-----------
SWEDEN 3.45%
Nordbanken Holding AB BK 100,000 736,547
Telefonaktiebolaget LM Ericsson
Series B Shrs CM 16,000 843,540
-----------
1,580,087
-----------
SWITZERLAND 10.25%
Adecco SA Bearer Shrs SV 1,500 655,026
Credit Suisse Group Registered
Shrs* BK 3,600 792,032
Nestle SA Registered Shrs FD 400 776,031
Novartis AG Registered Shrs HD 670 1,107,778
<PAGE>
Swiss Re Group Registered Shrs IN 365 805,466
Union Bank of Switzerland
Bearer Shrs BK 350 563,756
-----------
4,700,089
-----------
UNITED KINGDOM 16.33%
Abbey National PLC FN 10,800 202,787
BBA Group PLC MG 49,000 402,676
BTP PLC CH 35,000 247,540
Barclays PLC BK 9,200 265,346
British Airways PLC AR 26,260 273,539
British Petroleum PLC OG 36,207 571,782
Compass Group PLC SV 15,900 275,153
Granada Group PLC ET 18,700 322,044
Hays PLC SV 26,400 447,808
Kingfisher PLC RT 9,000 163,421
Legal & General Group PLC FN 29,500 353,653
Lloyds TSB Group PLC BK 66,000 988,202
Marks & Spencer PLC RT 28,700 272,803
Scottish Power PLC EU 32,300 296,896
SmithKline Beecham PLC HD 88,000 1,049,080
TI Group PLC EC 34,400 308,865
Unilever PLC HP 25,100 267,331
Vodafone Group PLC TC 44,500 487,346
Whitbread PLC RS 16,900 291,893
-----------
7,488,165
------------
TOTAL COMMON STOCKS & RIGHTS
(Cost $30,932,574) 40,185,296
PREFERRED STOCKS 5.54%
BRAZIL 2.31%
Cia Energetica de Minas
Gerais Sponsored ADR
Representing 1,000 Non-Voting
Pfd Shrs EU 3,000 144,228
Petroleo Brasileiro SA
Sponsored ADR Representing
100 Pfd Shrs OG 17,000 430,193
Telecomunicacoes Brasileiras SA
Sponsored ADR Representing
1000 Pfd Shrs TN 4,000 487,251
-----------
1,061,672
-----------
GERMANY 3.23%
Fresenius AG Non-Voting Pfd HC 1,600 383,840
SAP AG Non-Voting Pfd CO 2,200 1,097,243
-----------
1,481,083
-----------
<PAGE>
TOTAL PREFERRED STOCKS
(Cost $1,355,045) 2,542,755
SHORT-TERM INVESTMENTS -- -----------
REPURCHASE AGREEMENTS 6.84%
UNITED STATES 6.84%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1998 due 5/1/1998
at 5.470%, repurchased at
$3,135,476 (Collateralized
by US Treasury Bonds due
11/15/2015 at 9.875%
value $3,224,054)
(Cost $3,135,000) RA $ 3,135,000 3,135,000
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $35,422,619)
(Cost for Income Tax Purposes
$35,567,721) $ 45,863,051
===========
PACIFIC BASIN Fund
COMMON STOCKS 96.06%
AUSTRALIA 15.25%
Australia & New Zealand
Banking Group Ltd BK 250,000 $ 1,744,533
Brambles Industries Ltd SV 85,000 1,751,770
National Australia Bank Ltd BK 120,000 1,705,577
News Corp Ltd PB 864 5,791
Rio Tinto Ltd GP 50,000 693,119
Telstra Corp Ltd Installment
Receipts TL 500,000 1,173,562
-----------
7,074,352
-----------
HONG KONG 14.25%
CLP Holdings Ltd* EU 100,000 480,245
Cheung Kong Holdings Ltd RL 150,000 997,282
China Everbright Ltd* RT 400,000 271,106
China Merchants Holdings
International Ltd BD 400,000 317,581
China Resources Enterprise Ltd RL 200,000 343,401
China Telecom Ltd* TL 400,000 759,096
CITIC Pacific Ltd CG 150,000 460,880
Hang Seng Bank Ltd BK 62,000 522,266
Hong Kong
Telecommunications Ltd TL 380,000 711,330
Hutchison Whampoa Ltd CG 153,000 946,121
New World Development Ltd RL 120,000 341,593
Tianjin Development
Holdings Ltd* DB 400,000 457,007
-----------
6,607,908
-----------
<PAGE>
JAPAN 53.57%
Ajinomoto Co FD 20,000 160,902
Bank of Tokyo-Mitsubishi Ltd++ BK 42,500 527,189
Chubu Electric Power EU 30,000 450,692
Credit Saison Ltd++ FN 15,000 325,815
Dai Nippon Printing Ltd PB 20,000 340,574
Daicel Chemical
Industries Ltd++ CH 300,000 524,483
Daikin Industries Ltd MG 80,000 393,552
Ebara Corp++ MY 50,000 488,156
Fujitsu Ltd++ CO 70,000 818,512
Hitachi Ltd EL 70,000 502,762
Hitachi Software
Engineering Ltd CO 20,000 550,972
Industrial Bank of Japan Ltd++ BK 50,000 340,574
JUSCO Co Ltd++ RT 30,000 484,750
Kao Corp++ PL 20,000 294,407
Kirin Brewery Ltd++ BV 60,000 524,483
Kitagawa Industries Ltd++ MG 58,104 483,721
Mabuchi Motor Ltd++ EE 7,000 405,812
Maeda Corp EC 80,000 247,635
Mitsubishi Chemical++ CH 350,000 635,737
Mitsubishi Heavy
Industries Ltd++ MY 40,000 148,339
Mitsubishi Trust & Banking BK 40,000 381,442
Mitsui & Co Ltd DB 60,000 372,361
Mitsui Fudosan Ltd++ RL 80,000 731,401
NEC Corp++ CO 70,000 789,374
NKG Spark Plug Ltd++ AP 100,000 787,104
NKK Corp IS 700,000 609,248
NTT Data CO 10 432,907
Nintendo Co Ltd TY 7,000 643,154
Nippon COMSYS++ EC 15,000 176,417
Nippon Densetsu Kogyo Ltd++ EC 100,000 361,008
Nippon Express Ltd++ TK 100,000 571,407
Nippon Telegraph &
Telephone++ TL 80 702,339
Nisshin Flour Milling Ltd FD 44,000 291,380
Nomura Securities Ltd++ IV 60,000 733,369
Oji Paper Ltd++ PF 120,000 563,082
Rock Field Ltd DB 16,000 220,994
Rohm Co Ltd EL 1,000 113,070
Royal Co Ltd++ RS 27,000 368,841
Sanix Inc SV 18,000 367,820
Sanwa Bank Ltd++ BK 50,000 442,746
Secom Co Ltd++ EL 7,000 413,229
Seven-Eleven Japan Ltd++ RT 4,000 267,918
Sharp Corp EL 60,000 472,262
Shiseido Co Ltd PL 20,000 264,134
Sony Corp EL 3,000 249,981
Sumitomo Bank Ltd BK 60,000 567,623
Teijin Ltd TA 100,000 286,082
<PAGE>
Tokio Marine & Fire
Insurance Ltd++ IN 60,000 653,901
Tokyo Broadcasting System++ BR 30,000 381,442
Tokyo Electron Ltd ES 15,000 590,328
Tokyo Ohka Kogyo Ltd ES 20,000 510,104
Toray Industries++ TA 100,000 538,863
Toshiba Corp ES 200,000 929,388
Toyota Motor++ AM 16,000 417,770
-----------
24,851,556
-----------
MALAYSIA 3.60%
Malayan Banking Berhad BK 120,000 352,940
Public Bank Berhad
Foreign Shrs BK 500,000 238,397
Tenaga Nasional Berhad EU 270,000 537,833
YTL Corp Berhad CG 350,000 542,779
-----------
1,671,949
-----------
NEW ZEALAND 1.29%
Fletcher Challenge Building BD 246,016 497,582
Telecom Corp of New Zealand
Ltd Installment Receipts* TL 37,000 $ 99,300
----------
596,882
----------
SINGAPORE 5.83%
City Developments Ltd RL 150,000 648,882
DBS Land Ltd RL 200,000 301,864
Development Bank of
Singapore Ltd
Foreign Shrs BK 90,000 596,782
Foreign A Shrs* BK 27,000 175,625
Singapore Technologies
Engineering Ltd* EC 400,000 343,545
Singapore Telecommunications
Ltd TL 150,000 257,658
United Overseas Bank Ltd BK 80,325 380,449
-----------
2,704,805
-----------
UNITED KINGDOM 2.27%
HSBC Holdings PLC@ BK 36,916 1,053,238
-----------
TOTAL COMMON STOCKS
(Cost $51,135,126) 44,560,690
-----------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 3.94%
<PAGE>
UNITED STATES 3.94%
Repurchase Agreement with
State Street Bank & Trust Co
dated 4/30/1998 due 5/1/1998
at 5.470%, repurchased at
$1,828,278 (Collateralized
by US Treasury Bonds due
8/15/2017 at 8.875%
value $1,883,525)
(Cost $1,828,000) RA $ 1,828,000 1,828,000
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $52,963,126)
(Cost for Income Tax Purposes
$53,703,210) $ 46,388,690
============
* Security is non-income producing.
# Also represents cost for income tax purposes.
^ Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale to institutional investors.
@ Security has been designated as collateral for installment receipts.
++ Security has been designated as collateral for forward foreign currency
contracts.
~ The following are restricted securities at April 30, 1998:
<TABLE>
<CAPTION>
Value as
Acquisition Acquisition % of
Description Date(s) Cost Net Assets
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Emerging Markets Fund
Al-Ahram Beverages
SAE GDR Representing
Regulation S Shrs 2/23/98 $ 9,975 1.75%
Gazprom ADR Representing
10 Regulation S Shrs 2/26/98 11,481 1.87
MOL Magyar Olaj-es
Gazipari Rt Sponsored
GDR Representing
Regulation S Shrs 2/20/98-
4/22/98 $ 13,600 2.83%
<PAGE>
Paints & Chemical
Industries SAE
Sponsored GDR
Representing 1/3
Regulation S Shr 3/3/98-
3/31/98 13,971 2.45
Videsh Sanchar Nigam
Ltd GDR Representing
1/2 Regulation S Shr 2/20/98-
4/30/98 13,856 2.48
-----
11.38%
=====
International Growth Fund
MOL Magyar Olaj-es
Gazipari Rt Regulation
S Sponsored GDR
Representing Ord Shr 2/27/98-
3/5/98 $ 333,447 0.65%
Videsh Sanchar Nigam
Ltd GDR Representing
1/2 Regulation S Shr 3/24/97-
8/8/97 349,125 0.46
-----
1.11%
=====
</TABLE>
Forward Foreign Currency Contracts
Open at April 30, 1998:
Currency Currency
Value Unrealized
Currency/Value Date Units Sold (US$) Gain
- --------------------------------------------------------------------------------
Pacific Basin Fund
Japanese Yen
6/10/1998 1,300,000,000 $ 10,526,234 $ 317,345
==============================
Summary of Investments by Industry
Shares or
Industry Principal
Description Code Amount Value
- --------------------------------------------------------------------------------
Emerging Markets Fund
Banks BK 8.88% $ 51,013
Beverages BV 5.23 30,080
Building Materials BD 3.10% 17,810
Chemicals CH 6.77 38,917
Conglomerates CG 6.05 34,739
sElectric Utilities EU 11.52 66,180
Homebuilding HB 2.76 15,849
<PAGE>
Iron & Steel IS 2.70 15,519
Manufacturing MG 1.79 10,283
Oil & Gas Related OG 9.62 55,312
Repurchase Agreements RA 22.97 132,000
Retail RT 3.72 21,399
Telecommunications --
Long Distance TL 3.43 19,710
Telephone TN 11.46 65,862
----------------------------
100.00% $ 574,673
============================
European Fund
Air Freight AF 0.51% $ 2,915,311
Automobiles AM 2.66 15,064,641
Banks BK 25.06 142,015,531
Beverages BV 0.30 1,694,393
Chemicals CH 0.98 5,565,625
Communications-- Equipment
& Manufacturing CM 4.61 26,125,860
Computer Related CO 12.64 71,643,729
Electronics EL 0.62 3,523,857
Electronics-- Semiconductor ES 0.27 1,533,528
Engineering & Construction EC 0.43 2,460,388
Entertainment ET 0.29 1,639,062
Financial FN 1.13 6,384,031
Foods FD 1.41 8,010,047
Health Care Drugs --
Pharmaceuticals HD 5.91 33,487,526
Health Care Related HC 3.61 20,441,856
Insurance IN 6.05 34,310,392
Insurance Brokers IB 0.20 1,120,449
Investment Bank/Broker Firm IV 0.41 2,302,315
Lodging-- Hotels LH 1.73 9,804,972
Machinery MY 5.13 29,087,561
Manufacturing MG 2.82 15,953,774
Oil & Gas Related OG 0.01 43,033
Restaurants RS 1.68 9,518,907
Retail RT 2.47 13,973,894
Services SV 7.02 39,751,486
Telecommunications --
Cellular & Wireless TC 3.93 22,264,770
Telecommunications--
Long Distance TL 1.81 10,234,469
Telephone TN 6.31 35,785,635
------------------------------
100.00% $ 566,657,042
==============================
International Growth Fund
Airlines AR 0.60% $ 273,539
Auto Parts AP 0.34 157,421
Automobiles AM 1.25 571,902
Banks BK 21.85% 10,022,607
Beverages BV 0.78 358,875
<PAGE>
Building Materials BD 0.71 326,520
Chemicals CH 0.54 247,540
Communications-- Equipment
& Manufacturing CM 4.63 2,122,005
Computer Related CO 3.86 1,772,393
Conglomerates CG 2.56 1,171,823
Electric Utilities EU 1.56 717,652
Electronics EL 1.74 800,222
Electronics-- Semiconductor ES 1.47 675,126
Engineering & Construction EC 1.38 631,287
Entertainment ET 1.01 463,700
Financial FN 1.52 694,940
Foods FD 1.90 872,572
Footwear FT 1.05 480,775
Health Care Drugs --
Pharmaceuticals HD 4.70 2,156,858
Health Care Related HC 1.09 501,179
Household Products HP 0.58 267,331
Insurance IN 3.61 1,656,750
Investment Bank/Broker Firm IV 0.19 85,560
Lodging-- Hotels LH 1.66 762,609
Machinery MY 3.52 1,613,243
Manufacturing MG 1.51 694,497
Office Equipment & Supplies OE 0.26 118,444
Oil & Gas Related OG 6.52 2,990,486
Personal Care PL 0.35 158,480
Publishing PB 0.68 314,114
Real Estate Investment Trust RE 0.27 125,937
Repurchase Agreements RA 6.84 3,135,000
Restaurants RS 0.65 291,893
Retail RT 3.96 1,816,628
Services SV 4.79 2,195,434
Telecommunications --
Cellular & Wireless TC 1.06 487,346
Telecommunications--
Long Distance TL 1.43 654,449
Telephone TN 7.37 3,378,919
Textile --
Apparel Manufacturing TA 0.21 96,995
-------------------------------
100.00% $ 45,863,051
===============================
Pacific Basin Fund
Auto Parts AP 1.70% $ 787,104
Automobiles AM 0.90 417,770
Banks BK 19.47 9,029,381
Beverages BV 1.13 524,483
Broadcasting BR 0.82 381,442
Building Materials BD 1.76 815,163
Chemicals CH 2.50 1,160,220
Computer Related CO 5.59 2,591,765
Conglomerates CG 4.20 1,949,780
Distribution DB 2.26 1,050,362
Electric Utilities EU 3.17 1,468,770
<PAGE>
Electrical Equipment EE 0.87 405,812
Electronics EL 3.78 1,751,304
Electronics-- Semiconductor ES 4.38 2,029,820
Engineering & Construction EC 2.43 1,128,605
Financial FN 0.70 325,815
Foods FD 0.97 452,282
Gold & Precious Metals
Mining GP 1.49 693,119
Insurance IN 1.41 653,901
Investment Bank/Broker Firm IV 1.58 733,369
Iron & Steel IS 1.31 609,248
Machinery MY 1.37 636,495
Manufacturing MG 1.89 877,273
Paper & Forest Products PF 1.21 563,082
Personal Care PL 1.20 558,541
Publishing PB 0.75 346,365
Real Estate Related RL 7.25 3,364,423
Repurchase Agreements RA 3.94 1,828,000
Restaurants RS 0.80 368,841
Retail RT 2.21 1,023,774
Services SV 4.57 2,119,590
Telecommunications --
Long Distance TL 7.99 3,703,285
Textile--
Apparel Manufacturing TA 1.78 824,945
Toys TY 1.39 643,154
Truckers TK 1.23 571,407
-------------------------------
100.00% $ 46,388,690
===============================
See Notes to Financial Statements
<PAGE>
INVESCO International Funds, Inc.
Statement of Assets and Liabilities
April 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
Emerging International Pacific
Markets European Growth Basin
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
ASSETS
Investment Securities:
At Cost~ $ 543,892 $ 416,132,435 $ 35,422,619 $ 52,963,126
======================================================================
At Value~ $ 574,673 $ 566,657,042 $ 45,863,051 $ 46,388,690
Cash 933 3,868,510 257,199 20,940
Foreign Currency (Cost $0, $3,137,205, $729,871
and $128,228, respectively) 0 3,139,987 730,093 121,101
Receivables:
Investment Securities Sold 0 22,402,051 6,270,424 48,264
Fund Shares Sold 3,000 27,180,846 3,137,682 4,590,906
Dividends and Interest 1,297 1,579,207 200,108 178,270
Appreciation on Forward Foreign Currency Contracts 0 0 0 317,345
Prepaid Expenses and Other Assets 62,545 52,736 116,291 190,732
----------------------------------------------------------------------
TOTAL ASSETS 642,448 624,880,379 56,574,848 51,856,248
----------------------------------------------------------------------
LIABILITIES
Payables:
Investment Securities Purchased 22,676 7,715,717 639,877 144,892
Fund Shares Repurchased 75,500 1,777,816 168,921 399,944
Depreciation on Forward Foreign Currency Contracts 0 17,834 7,636 0
Borrowings on Line of Credit 0 20,016,528 0 0
Accrued Distribution Expenses 98 118,619 10,868 10,210
Accrued Expenses and Other Payables 6,942 95,993 25,098 39,528
----------------------------------------------------------------------
TOTAL LIABILITIES 105,216 29,742,507 852,400 594,574
----------------------------------------------------------------------
Net Assets at Value $ 537,232 $ 595,137,872 $ 55,722,448 $ 51,261,674
======================================================================
NET ASSETS
Paid-in Capital* $ 504,436 $ 415,854,006 $ 39,570,880 $ 71,240,101
Accumulated Undistributed
(Distributions in Excess of) Net Investment Income 734 (117,939) (208,289) (115,992)
Accumulated Undistributed Net Realized Gain (Loss) on
Investment Securities and Foreign Currency
Transactions 1,159 28,949,833 5,918,394 (13,597,349)
<PAGE>
Net Appreciation (Depreciation) of Investment
Securities and Foreign Currency Transactions 30,903 150,451,972 10,441,463 (6,265,086)
----------------------------------------------------------------------
Net Assets at Value $ 537,232 $ 595,137,872 $ 55,722,448 $ 51,261,674
======================================================================
Shares Outstanding 49,141 31,121,616 3,508,079 6,428,493
Net Asset Value, Offering and Redemption
Price per Share $10.93 $19.12 $15.88 $7.97
======================================================================
~Investment securities at cost and value at April 30, 1998 include repurchase
agreements of $132,000, $3,135,000 and $1,828,000 for Emerging Markets,
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
</TABLE>
INVESCO International Funds, Inc.
Statement of Operations
Period Ended April 30, 1998 (Note 1)
UNAUDITED
<TABLE>
<CAPTION>
Emerging International Pacific
Markets European Growth Basin
Fund Fund Fund Fund
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 1,844 $ 2,638,842 $ 281,668 $ 511,948
Interest 535 436,139 106,839 90,669
Foreign Taxes Withheld (9) (404,374) (30,805) (34,341)
--------------------------------------------------------------------
TOTAL INCOME 2,370 2,670,607 357,702 568,276
--------------------------------------------------------------------
EXPENSES
Investment Advisory Fees 817 1,483,628 281,580 203,012
Distribution Expenses 204 413,836 55,076 45,253
Transfer Agent Fees 68 505,487 176,588 283,003
Administrative Fees 2,203 35,367 9,224 9,060
Custodian Fees and Expenses 1,370 216,235 47,010 42,480
Directors' Fees and Expenses 0 13,058 6,564 6,644
<PAGE>
Professional Fees and Expenses 6,910 22,073 12,996 13,481
Registration Fees and Expenses 12,560 65,281 44,422 67,056
Reports to Shareholders 0 39,139 18,303 19,998
Other Expenses 2 37,890 6,226 5,940
--------------------------------------------------------------------
TOTAL EXPENSES 24,134 2,831,994 657,989 695,927
Fees and Expenses Absorbed by Investment Adviser (21,939) 0 (80,451) (137,367)
Fees and Expenses Paid Indirectly (559) (57,959) (17,727) (17,771)
---------------------------------------------------------------------
NET EXPENSES 1,636 2,774,035 559,811 540,789
---------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 734 (103,428) (202,109) 27,487
---------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on Investment Securities
and Foreign Currency Transactions 1,159 29,053,247 6,297,890 (13,319,790)
Change in Net Appreciation (Depreciation) of Investment
Securities and Foreign Currency Transactions 30,903 97,309,778 1,540,035 6,136,322
---------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENT SECURITIES 32,062 126,363,025 7,837,925 (7,183,468)
---------------------------------------------------------------------
Net Increase (Decrease) in
Net Assets from Operations $ 32,796 $ 126,259,597 $ 7,635,816 $ (7,155,981)
=====================================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO International Funds, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Emerging European
Markets Fund Fund
Six Months Year
Period Ended Ended Ended
April 30 April 30 October 31
----------------- -----------------------------------------------
<S> <C> <C> <C>
1998 (Note 1) 1998 1997
UNAUDITED UNAUDITED
OPERATIONS
Net Investment Income (Loss) $ 734 $ (103,428) $ 1,190,402
Net Realized Gain on Investment Securities and Foreign
Currency Transactions 1,159 29,053,247 60,622,016
Change in Net Appreciation of Investment Securities and
Foreign Currency Transactions 30,903 97,309,778 1,427,595
---------- -----------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 32,796 126,259,597 63,240,013
---------- -----------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS ---------- -----------------------------------------------
Net Investment Income 0 (558,372) (1,288,400)
Net Realized Gain on Investment Securities and Foreign
Currency Transactions 0 (58,987,300) (20,402,793)
---------- -----------------------------------------------
TOTAL DISTRIBUTIONS 0 (59,545,672) (21,691,193)
---------- -----------------------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 339,162 904,578,713 1,120,633,773
Reinvestment of Distributions 0 55,299,615 20,975,036
339,162 959,878,328 1,141,608,809
Amounts Paid for Repurchases of Shares (84,726) (756,273,691) (1,158,926,547)
---------- -----------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 254,436 203,604,637 (17,317,738)
---------- -----------------------------------------------
Total Increase in Net Assets 287,232 270,318,562 24,231,082
NET ASSETS
Initial Subscription (See Note 1) 250,000 0 0
Beginning of Period 0 324,819,310 300,588,228
---------- -----------------------------------------------
End of Period $ 537,232 $ 595,137,872 $ 324,819,310
========== ===============================================
Accumulated Undistributed (Distributions in Excess of)
Net Investment Income Included in Net Assets at End
of Period $ 734 $ (117,939) $ 543,861
---------------------------------------------------------------------------
FUND SHARE TRANSACTIONS
Initial Subscription (See Note 1) 25,000 0 0
Shares Sold 32,104 52,306,570 66,508,158
Shares Issued from Reinvestment of Distributions 0 3,803,707 1,370,609
57,104 56,110,277 67,878,767
Shares Repurchased (7,963) (43,718,441) (68,118,819)
---------- -----------------------------------------------
Net Increase (Decrease) in Fund Shares 49,141 12,391,836 (240,052)
========== ===============================================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO International Funds, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
International Pacific Basin
Growth Fund Fund
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30 October 31 April 30 October 31
----------------------------- -----------------------------------
<S> <C> <C> <C> <C>
1998 1997 1998 1997
UNAUDITED UNAUDITED
OPERATIONS
Net Investment Income (Loss) $ (202,109) $ 260,567 $ 27,487 $ (556,060)
Net Realized Gain (Loss) on Investment
Securities and Foreign Currency
Transactions 6,297,890 7,485,092 (13,319,790) 2,050,539
Change in Net Appreciation (Depreciation)
of Investment Securities and Foreign
Currency Transactions 1,540,035 (891,853) 6,136,322 (20,975,739)
------------------------------ -------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS 7,635,816 6,853,806 (7,155,981) (19,481,260)
------------------------------ -------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (681,871) (392,350) (666,918) 0
In Excess of Net Investment Income 0 (2,889) 0 (52,110)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions (6,800,231) (4,053,525) (1,134,113) (8,942,331)
------------------------------ -------------------------------------
TOTAL DISTRIBUTIONS (7,482,102) (4,448,764) (1,801,031) (8,994,441)
------------------------------ -------------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 203,948,291 471,306,125 195,105,352 602,143,991
Reinvestment of Distributions 7,276,251 4,405,427 1,722,681 8,700,080
------------------------------ -------------------------------------
211,224,542 475,711,552 196,828,033 610,844,071
Amounts Paid for Repurchases
of Shares (240,435,063) (487,923,735) (200,552,374) (668,295,262)
------------------------------ -------------------------------------
NET DECREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (29,210,521) (12,212,183) (3,724,341) (57,451,191)
------------------------------ -------------------------------------
Total Decrease in Net Assets (29,056,807) (9,807,141) (12,681,353) (85,926,892)
NET ASSETS
Beginning of Period 84,779,255 94,586,396 63,943,027 149,869,919
------------------------------ -------------------------------------
End of Period $55,722,448 $ 84,779,255 $ 51,261,674 $ 63,943,027
============================== =====================================
Accumulated Undistributed (Distributions in
Excess of) Net Investment Income
Included in Net Assets at End of Period $ (208,289) $ 675,691 $ (115,992) $ 523,439
------------------------------------------------------------------------------------------------
<PAGE>
FUND SHARE TRANSACTIONS
Shares Sold 13,476,782 27,110,962 23,143,422 46,222,901
Shares Issued from Reinvestment
of Distributions 552,488 272,241 208,308 657,603
------------------------------ -------------------------------------
14,029,270 27,383,203 23,351,730 46,880,504
Shares Repurchased (15,670,638) (27,828,343) (23,488,502) (50,934,920)
------------------------------ -------------------------------------
Net Decrease in Fund Shares (1,641,368) (445,140) (136,772) (4,054,416)
================================ =====================================
See Notes to Financial Statements
</TABLE>
INVESCO International Funds, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO
International Funds, Inc. (the "Fund") is incorporated in Maryland and presently
consists of four separate Funds: Emerging Markets Fund, 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 Emerging Markets, European and Pacific Basin Funds and
to seek a high total return through investments in designated geographical
sectors for International Growth Fund. Emerging Markets Fund commenced
investment operations on February 18, 1998. 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.
<PAGE>
If market quotations or pricing service valuations are not readily
available, securities are valued at fair value as determined in good faith
under procedures established 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.
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 are acquired. Income and expenses are
translated into U.S. dollars at 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. 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. In the event of
default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
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. 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 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 net position of such forward contracts is presented in the Statement
of Assets and Liabilities and may have additional elements of risk which may
not necessarily be reflected.
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
<PAGE>
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.
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.
At April 30, 1998, Pacific Basin Fund had outstanding forward foreign
currency contracts. Unrealized gain or loss on forward foreign currency
contracts is calculated daily as the difference between the contract
exchange rate and the closing forward rate applied to the face amount of the
contract.
Forward foreign currency contracts held by the Fund 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
exeeds the current market value of the forward foreign currency contract.
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.
<PAGE>
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. 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 each Fund's average net assets as follows:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS
--------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$0 to $0 to $350 to $500 Million Over Over
$350 $500 $700 to $1 $700 $1
Fund Million Million Million Billion Million Billion
- -----------------------------------------------------------------------------------------------
Emerging Markets Fund - 1.00% - 0.85% - 0.75%
European Fund 0.75% - 0.65% - 0.55% -
International Growth Fund - 1.00% - 0.75% - 0.65%
Pacific Basin Fund 0.75% - 0.65% - 0.55% -
</TABLE>
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.
A plan of distribution pursuant to Rule 12b-1 of the Act (the "Plan") became
effective November 1, 1997 for European and International Growth Funds, December
1, 1997 for Pacific Basin Fund, and February 18, 1998 for Emerging Markets Fund.
The Plan provides for compensation of marketing and advertising expenditures to
INVESCO Distributors, Inc. ("IDI") to a maximum of 0.25% of net assets. For the
period ended April 30, 1998, Emerging Markets, European, International Growth
and Pacific Basin Funds paid the Distributor $106, $295,217, $44,208 and
$35,042, respectively, under the plan of distribution.
IFG has voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by Emerging Markets, International Growth and Pacific Basin
Funds.
<PAGE>
NOTE 3 --PURCHASES AND SALES OF INVESTMENT SECURITIES. For the period
ended April 30, 1998, 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
- --------------------------------------------------------------------------------
Emerging Markets Fund $ 449,985 $ 39,249
European Fund 327,177,540 183,206,423
International Growth Fund 25,630,414 64,383,957
Pacific Basin Fund 27,743,487 39,424,442
There were no purchases or sales of U.S. Government securities.
NOTE 4 -- APPRECIATION AND DEPRECIATION. At April 30, 1998, 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 (depreciation) by Fund were as
follows:
<TABLE>
<CAPTION>
Net
Gross Gross Appreciation
Fund Appreciation Depreciation (Depreciation)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Emerging Markets Fund $ 42,786 $ 12,005 $ 30,781
European Fund 154,358,997 3,961,782 150,397,215
International Growth Fund 11,462,263 1,166,933 10,295,330
Pacific Basin Fund 1,601,968 8,916,488 (7,314,520)
</TABLE>
NOTE 5 -- TRANSACTIONS WITH AFFILIATES. Certain of the Fund's officers and
directors are also officers and directors of IFG, IDI 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 equal to 40% of the retainer fee at the time of
retirement. As of July 1, 1998, benefits will be based on the annual rate of 50%
of the sum of the retainer fee at the time of retirement plus the annual meeting
fee.
<PAGE>
Pension expenses for the period ended April 30, 1998, 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:
<TABLE>
<CAPTION>
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Emerging Fund $ 0 $ 0 $ 0
European Fund 3,975 17,369 35,890
International Growth Fund 1,172 7,163 14,298
Pacific Basin Fund 1,339 14,062 27,953
</TABLE>
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, 1998, European Fund had a loan outstanding under the line of credit in the
amount of $20,000,000 plus accrued interest thereon at an interest rate of
8.50%. The amount of the borrowing and the related interest is presented in the
Statement of Assets and Liabilities. On May 1, 1998, European Fund paid the line
of credit in full, including interest. There were no such borrowings in any
other Fund.
<PAGE>
INVESCO International Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout the Period)
Period
Ended
April 30
--------
1998^
UNAUDITED
Emerging Markets Fund
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.01
Net Gains on Securities (Both
Realized and Unrealized) 0.92
-------
Total from Investment Operations 0.93
-------
Net Asset Value-- End of Period $ 10.93
=======
TOTAL RETURN 9.30%*
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 537
Ratio of Expenses to Average Net Assets# 0.60%*@
Ratio of Net Investment Income to Average Net Assets 0.20%*
Portfolio Turnover Rate 11%*
^ From February 18, 1998, commencement of investment operations, to April 30,
1998.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG and IAM for
the period ended April 30, 1998. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 6.57% (not
annualized) and ratio of net investment loss to average net assets would
have been (5.77%) (not annualized).
@ Ratio is based on Total Expenses of the Fund less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
<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
-------- -----------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1998 1997 1996 1995 1994 1993
UNAUDITED
European Fund
PER SHARE DATA
Net Asset Value---Beginning of Period $17.34 $15.85 $14.09 $12.95 $12.20 $10.14
------- -----------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income# (0.00) 0.07 0.05 0.23 0.16 0.14
Net Gains on Securities
(Both Realized and Unrealized) 5.09 2.63 3.00 1.12 0.75 2.06
------- -----------------------------------------------
Total from Investment Operations 5.09 2.70 3.05 1.35 0.91 2.20
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.03 0.07 0.08 0.21 0.16 0.14
Distributions from Capital Gains 3.28 1.14 1.21 0.00 0.00 0.00
------- -----------------------------------------------
Total Distributions 3.31 1.21 1.29 0.21 0.16 0.14
------- -----------------------------------------------
Net Asset Value--- End of Period $ 19.12 $ 17.34 $ 15.85 $ 14.09 $ 12.95 $ 12.20
======= ===============================================
TOTAL RETURN 35.38% 18.07% 23.47% 10.42% 7.43% 21.78%
RATIOS
Net Assets -- End of Period
($000 Omitted) $595,138 $324,819 $300,588 $224,200 $349,842 $270,544
Ratio of Expenses to Average
Net Assets 0.69%*@ 1.25%@ 1.36%@ 1.40%@ 1.20% 1.28%
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.03%)* 0.33% 0.37% 1.26% 1.28% 1.76%
Portfolio Turnover Rate 46% * 90% 91% 96% 70% 44%
# 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.
</TABLE>
<PAGE>
INVESCO International Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period Year
Ended Ended Ended
April 30 Year Ended October 31 October 31 December 31
-------- ------------------------------------ ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 1997 1996 1995 1994< 1993^< 1992
UNAUDITED
International Growth Fund
PER SHARE DATA
Net Asset Value ---
Beginning of Period $16.46 $16.91 $15.78 $17.29 $15.75 $12.57 $14.51
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) (0.05) 0.06 0.07 0.08 0.04 0.08 0.12
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.21 0.37 1.77 (0.61) 1.57 3.16 (1.94)
Total from Investment Operations 2.16 0.43 1.84 (0.53) 1.61 3.24 (1.82)
LESS DISTRIBUTIONS
Dividends from Net Investment
Income+ 0.25 0.08 0.15 0.09 0.07 0.06 0.11
In Excess of Net Investment
Income 0.00 0.00 0.00 0.03 0.00 0.00 0.00
Distributions from Capital Gains 2.49 0.80 0.56 0.86 0.00 0.00 0.01
---- -------------------------------- ------ ------
Total Distributions 2.74 0.88 0.71 0.98 0.07 0.06 0.12
---- -------------------------------- ------ ------
Net Asset Value--- End of Period $15.88 $16.46 $16.91 $15.78 $17.29 $15.75 $12.57
====== ================================== ====== ======
TOTAL RETURN 16.56%* 2.65% 12.01% (2.84%) 10.21% 29.08%* (12.52%)
RATIOS
Net Assets -- End of Period
($000 Omitted) $55,722 $84,779 $94,586 $75,391 $161,884 $108,677 $35,192
Ratio of Expenses to Average
Net Assets# 1.02%*@ 1.71%@ 1.80%@ 1.81%@ 1.50% 1.43%~ 1.36%
Ratio of Net Investment Income
(Loss) to Average Net Assets# (0.36%)* 0.26% 0.43% 0.41% 0.46% 0.94%~ 0.83%
Portfolio Turnover Rate 50%* 57% 64% 62% 87% 46%* 50%
</TABLE>
<PAGE>
> The per share information was computed based on average shares.
< The per share information was computed based on weighted average shares.
^ From January 1, 1993 to October 31, 1993.
+ Distributions in excess of net investment income for the years ended
October 31, 1997 and 1996 aggregated less than $0.01 on a per share basis.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements.
~ Annualized
# Various expenses of the Fund were voluntarily absorbed by IFG for the six
months ended April 30, 1998. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 1.16% (not
annualized) and ratio of net investment income to average net assets would
have been (0.50%) (not annualized).
<PAGE>
INVESCO International Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
April 30 Year Ended October 31
--------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1998 1997 1996 1995 1994 1993<
UNAUDITED
Pacific Basin Fund
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 9.74 $ 14.11 $ 13.83 $ 17.07 $ 15.11 $ 11.02
------ -------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.02 (0.09) (0.02) 0.06 0.04 0.04
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (1.47) (3.45) 0.51 (1.45) 2.28 4.09
------ -------------------------------------------------------
Total from Investment Operations (1.45) (3.54) 0.49 (1.39) 2.32 4.13
------ -------------------------------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income+ 0.12 0.00 0.03 0.06 0.04 0.04
Distributions from Capital Gains 0.20 0.83 0.18 1.79 0.32 0.00
------ -------------------------------------------------------
Total Distributions 0.32 0.83 0.21 1.85 0.36 0.04
------ -------------------------------------------------------
Net Asset Value-- End of Period $ 7.97 $ 9.74 $ 14.11 $ 13.83 $ 17.07 $ 15.11
====== =======================================================
TOTAL RETURN (15.03%)* (26.65%) 3.55% (8.31%) 15.63% 37.51%
RATIOS
Net Assets-- End of Period ($000 Omitted) $51,262 $63,943 $149,870 $154,374 $352,888 $299,192
Ratio of Expenses to Average Net Assets# 1.03%* 1.72%@ 1.60%@ 1.52%@ 1.24% 1.22%
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.05%* (0.44%) (0.04%) 0.37% 0.28% 0.63%
Portfolio Turnover Rate 55%* 86% 70% 56% 70% 30%
</TABLE>
<PAGE>
< The per share information was computed based on weighted average shares.
+ Distributions in excess of net investment income for the years ended
October 31, 1997 and 1996 aggregated less than $0.01 on a per share basis.
# Various expenses of the Fund were voluntarily absorbed by IFG and IAM for
the six months ended April 30, 1998. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 1.28% (not annualized), and ratio of net investment income to average
net assets would have been (0.20%) (not annualized).
* 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, if applicable, which is before
any expense offset arrangements.
<PAGE>
EasiVest makes it easy to pay yourself first.
It seems that for most of us the hardest part of investing at regular
intervals comes down to simply writing the check, finding the stamp, and putting
it in the mail. But with INVESCO's EasiVest it's so easy that we'll do almost
all the work for you.
After you fill out the authorization and return it with a voided check, the
exact dollar amount you specify will be electronically transferred from your
bank account to your designated fund on the same day each month.
Using EasiVest is one of the few times when you'll find the easy way may
also be one of the best.
For years smart investors have used an investment strategy known as
dollar-cost averaging. It only makes sense that when prices are high an investor
will want to buy fewer shares, and when prices are low he will want to buy more.
By investing a fixed amount at regular intervals with INVESCO's EasiVest, you
can take advantage of these market fluctuations.
Over a sufficient period of time, dollar-cost averaging may make the average
price you pay per share less than the actual average price per share. So follow
the lead of successful investors and take advantage of dollar-cost averaging
with INVESCO's EasiVest.
Like other investment systems, periodic investment plans to not insure a
profit, nor do they protect against loss in a falling market. Since these plans
involve continuous investment in securities regardless of fluctuating price
levels in the market, you should consider your financial ability to continue
purchases through low price levels. Finally, be aware that you will incur a loss
under the plan if you decide to liquidate your account when the market value of
accumulated shares is less than their cost.
Just follow these simple authorization instructions and let INVESCO's
EasiVest help you build for your future.
1. Call your bank for their ABA and account numbers. Then complete the
EasiVest authorization and sign it the same way you would your personal
checks.
2. Enclose an unsigned, personal check or savings deposit slip marked "Void."
3. Place a voided check or savings deposit slip and signed authorization form
in an envelope; then mail it to us.
It's that easy to start building your mutual fund portfolio. And you can take
advantage of INVESCO's EasiVest with as little as $50 a month.
Questions? Call us at 1-800-525-8085.
Start building for your future today.
<PAGE>
EASIVEST AUTHORIZATION FOR AUTOMATIC INVESTMENTS
Before returning this Authorization, please be sure to contact your bank
for the correct ABA number and account number.
I authorize INVESCO Funds Group to transfer money from my checking or savings
account on or about the 7th or 21st (check one) day of each month for the
amounts and funds indicated below:
Fund-------------------------------------- Acct.#-------------------------------
$---------------------------- ($50 minimum) --- 7th ---21st
- --------------------------------------------------------------------------------
Bank Name
- --------------------------------------------------------------------------------
Bank Street Address
- --------------------------------------------------------------------------------
City, State, Zip ( )
- -------------------------------------- -----------------------------------------
ABA Number (available from your bank) Bank Phone Number
- --------------------------- This is a --- Checking Account
Bank Account Number --- Savings Account
- --------------------------------------------------------------------------------
Owner's Name (First, Middle Initial, Last)
- --------------------------------------------------------------------------------
Joint Owner's Name (First, Middle Initial, Last)
- --------------------------------------------------------------------------------
Owner Street Address
- --------------------------------------------------------------------------------
City, State, Zip
- --------------------------------------------------------------------------------
Signature Date
- --------------------------------------------------------------------------------
Signature Date
( ) ( )
- --------------------------------------------------------------------------------
Daytime Telephone Number Evening Telephone Number
Don't forget to attach a voided check or deposit slip.
This authority is to remain in effect until I revoke it in writing and, until
INVESCO receives such notification, I agree INVESCO will be fully protected in
honoring any such electronic debit. I further agree that if any such electronic
debit is not honored, whether with cause or without cause and whether
intentionally or unintentionally, INVESCO will not be liable whatsoever. This
authorization will become a part of the fund application subject to the terms,
representations and conditions thereof.
Like other investment systems, period investment plans do not insure a profit,
nor do they protect against loss in a falling market. Since these plans involve
continuous investment in securities regardless of fluctuating price levels in
the market, you should consider your financial ability to continue purchases
through low price levels. Finally, be aware that you will incur a loss under the
plan if you decide to liquidate your account when the market value of
accumulated shares is less than their cost.
<PAGE>
INVESCO FUNDS
INVESCO Distributors, Inc.,(SM)
Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
1-800-525-8085
PAL(R): 1-800-424-8085
http://www.invesco.com
In Denver, visit one of
our convenient Investor Centers:
Cherry Creek,
155-B Fillmore Street
Denver Tech Center,
7800 East Union Avenue,
Lobby Level
This information must be
preceded or accompanied
by a current prospectus.
Printed on recycled paper.
