KNOWLEDGE o DISCIPLINE o SERVICE o CHOICE
- --------------------------------------------------------------------------------
YOU SHOULD KNOW WHAT INVESCO KNOWS (TM)
- -------------------------------------------------------------------------------
INVESCO INTERNATIONAL FUNDS, INC.
EUROPEAN
INTERNATIONAL BLUE CHIP
LATIN AMERICAN GROWTH
PACIFIC BASIN
ANNUAL
[INVESCO ICON] INVESCO
ANNUAL REPORT | October 31, 1999
<PAGE>
"WE ARE OPTIMISTIC THAT EUROPE'S FUTURE IS BRIGHT NOW THAT MONETARY UNION HAS
BEEN ACHIEVED AND THE YEARS OF FISCAL BELT-TIGHTENING THAT PRECEDED IT ARE
HISTORY." (PAGE 4)
"IN OUR OPINION, THESE LARGE-CAP COMPANIES PROVIDE A GATEWAY INTO THE POTENTIAL
OF THE INTERNATIONAL ECONOMY WHILE CARRYING LESS RISK THAN MANY OF THE SMALLER
FIRMS IN EMERGING MARKETS..." (PAGE 6)
INVESCO INTERNATIONAL FUNDS, INC.
TOTAL RETURN,
PERIODS ENDED 10/31/99(1)
FUND 6 MONTHS 1 YEAR 5 YEARS* 10 YEARS* PAGE NUMBER
European 7.43% 12.64% 17.77% 12.45% 4
International Blue Chip 5.75% 11.77% N/A N/A 5
Latin American Growth -6.62% 14.62% N/A N/A 7
Pacific Basin 21.16% 47.43% -6.04% -0.60% 8
* Average Annualized
The line graphs illustrate the value of a $10,000 investment, plus reinvested
dividends and capital gain distributions, for the 10-year or since inception
period ended 10/31/99. 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. (Of course, past performance
is not a guarantee of future results.)(1),(2)
<PAGE>
PERFORMANCE GRAPHS
Graph: INVESCO European Fund
10-Year Total Return vs. MSCI Europe and MSCI-AC Europe Indexes
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 Europe
Index and the MSCI-AC European Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for
the ten year period ended 10/31/99.
Graph: INVESCO International Blue Chip Fund
Total Return Since Inception (10/98) vs. MSCI-EAFE Index
This line graph compares the value of a $10,000 investment in INVESCO
International Blue Chip Fund to the value of a $10,000 investment in
the MSCI EAFE Index, assuming in each case reinvestment of all
dividends and capital gain distributions, for the period
from inception(10/98) through 10/31/99.
Graph: INVESCO Latin American Growth Fund
Total Return Since Inception (2/95) vs. MSCI-Latin America Index
This line graph compares the value of a $10,000 investment in INVESCO
Latin American Growth Fund to the value of a $10,000 investment in
the MSCI Latin America Index, assuming in each case reinvestment of
all dividends and capital gain distributions, for the period
from inception(2/95) through 10/31/99.
Graph: INVESCO Pacific Basin Fund
10-Year Total Return vs. MSCI-Pacific Index
This line graph compares the value of a $10,000 investment in 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 ten year period ended
10/31/99.
<PAGE>
EUROPEAN FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
This has been a good year for our fund, but certainly not one that has seen our
performance -- especially compared to other European funds--be as strong as
often in the past. Our style of investing in large, high-growth companies has
not been in favor throughout much of the past year. Nonetheless, the end of the
period saw these types of companies again perform well in the markets, and we
have every hope that they will continue to do so as we move forward.
For the one-year period ended October 31, 1999, the value of your shares rose
12.64%. This performance slightly lagged that of the MSCI-Europe Index, which
rose 12.85% over the same period. (Of course, past performance is no guarantee
of future results.)(1),(2)
European markets have had a rough time over the last year, even as the adoption
of Monetary Union at the beginning of 1999 signaled to many that a new era of
growth was at hand. The dramatic slowdown in Asian economies last year had
greater repercussions in Europe than it did in the United States. The German
economy, in particular, slowed, and other nations continued to wrestle with weak
consumer demand and high joblessness.
Europe has suffered from slower growth rates than the United States for several
years, of course, which is one reason we have focused our investments on those
companies that are relatively immune to a moribund domestic economy. In general,
these companies either exploit growing world markets, or they use new
technologies to position themselves in high-growth sectors within Europe.
Our investments in Germany provide a good example of our approach. Our major
holdings include Mannesmann, a mobile-phone company that has aggressively
expanded its reach throughout Europe (and recently became the target of a
takeover bid itself); Aixtron, a maker of semiconductor production equipment;
and SAP, the large business software company. To be sure, these companies have
exposure to German consumers as well as international ones, but they target the
healthiest portion of domestic consumption habits: Germans are watching
television, surfing the Web, and talking on the telephone to a greater extent--
all areas that benefit these firms.
Other fund holdings seem to us uniquely positioned in their markets--good
investments, in other words, that just happen to be located in Europe. These
include Nokia and Ericsson, the two companies that seem best-positioned
worldwide to unite the Internet and mobile communications.
We are optimistic that Europe's future is bright now that Monetary Union has
been achieved and the years of fiscal belt-tightening that preceded it are
history. Interest rates in Europe are still very low, especially given the high
growth rates projected for the region's economies in the coming years.
Intensifying competition, deregulation, and the impact of new technology also
seem to present a very favorable environment for growth.
We will look forward to reporting to you again in six months.
/s/ Steven Chamberlain
Steven Chamberlain
<PAGE>
INTERNATIONAL BLUE CHIP FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
This report also marks the first anniversary of the fund. After a challenging
start, we feel that the fund has found much more stable footing over the past
six months. Looking ahead, we are confident that our long-term focus on the
world's largest and most profitable companies will be rewarded.
For the one-year period ended October 31, 1999, the value of your shares rose
11.77%. This performance lagged that of the MSCI-Europe, Australia, and Far East
Index, which rose 23.37% over the same period. (Of course, past performance is
no guarantee of future results.)(1),(2)
The international markets over the past twelve months have featured a remarkable
recovery in the Japanese stock market. Japan's benchmark Nikkei 225 Index
recovered from slightly above 13,000 at the beginning of 1999 to well over
18,000 by July. U.S. investors in Japan also benefited from a significant
strengthening in the Japanese yen versus the U.S. dollar. A number of positive
events in Japan influenced this rise, including the announcement of a fiscal
stimulus package and real progress on banking reform. Investors' performance
over this past year could be almost directly gauged by the degree of their
exposure to Japan--the more, the better. While the fund has had substantial
exposure to Japan during the past year, its weighting in that country has been
less than that of the MSCI-Europe, Asia, and Far East Index. This has been a
major factor behind the fund's underperformance over the past 12 months.(2)
As we have seen confirmation of a moderate recovery in the Japanese economy and
corporate profits, we have moved more assets into attractive Japanese companies.
Sony Corp., for example, has been at the forefront of the country's
restructuring movement, reducing its workforce by 10% and absorbing unprofitable
divisions. In addition, Sony's enviable lineup of new products seems likely to
help it enjoy strong revenue growth over the next few years.
We remain enthusiastic about the future of European markets. With investors'
attention focused on Japan and the emerging markets, share prices of many of the
large, profitable firms in which we invest have not fared as well as we had
hoped over the past year. This has been true, for example, of the global food
products companies, Unilever and Nestle. Because their markets are among the
most globalized in the world--one of the reasons we are enthusiastic about the
futures of both firms--they have suffered from the general concern over the
recovery in global demand subsequent to last year's economic turbulence.
Along with Japan, there has been a remarkable recovery of investor confidence in
many of the world's emerging markets. Because we focus on well-established firms
with a very high quality of earnings, our investments in Latin America and much
of Asia have been relatively limited. To be sure, we are not without exposure to
some of the top firms in those regions. Our investment in the Argentinean oil
company YPF, for example, proved very lucrative right through its sale to the
Spanish firm Repsol, and our holdings in HSBC, though a U.K.-listed company,
have benefited from Asia's stock market recovery.
<PAGE>
While our focus on blue chip firms did not serve us particularly well in this
somewhat unique international economic environment, we are convinced it is a
solid strategy as we move forward. In our opinion, these large-capitalization
companies provide a gateway into the potential of the international economy,
while carrying less risk than many of the smaller firms in emerging markets; we
are optimistic that they will better reflect these qualities as we move forward.
We look forward to communicating to you on the results of this strategy in our
next report.
/s/ John Rogers
John Rogers, CFA
<PAGE>
LATIN AMERICAN GROWTH FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
After hearing all the news over the past year, many investors in Latin America
might actually be surprised to learn that most markets in the region actually
finished ahead for our fiscal year. Certainly, exports fell, Brazil devalued its
currency, and growth slowed or reversed in many economies. Still, the continent
kept working and relatively few companies closed their doors for good. Indeed,
we are hopeful that many Latin American firms will emerge from the crisis
leaner, and with a better ability to compete internationally.
For the one-year period ended October 31, 1999, the value of your shares rose
14.62%. This performance lagged that of the MSCI-Emerging Markets - Latin
America Index, which rose 24.71% over the same period. (Of course, past
performance is no guarantee of future results.)(1),(2)
Driving much of the rebound in the region has been the resurgence in global
commodity prices following their steep decline last year. This has been
particularly true in Brazil, where our holdings in steel and paper and pulp
companies, for example, have done very well. Mining and oil remain vital parts
of the Latin American economy, and positive trends in both have also served
companies across the region well.
In order to insure long-term profitability, however, Latin American companies
will have to both develop domestic markets and reduce their costs to become more
competitive internationally. Fortunately, we are seeing positive signs of both.
Grupo Televisa, the Mexican media company, is a good example. Long a sleepy
media giant encumbered by layers of bureaucracy, Televisa's new management has
cut costs in response to new competition for the viewing time of Mexico's
growing middle class. Privatization of state-run companies should also offer
opportunities to investors.
Of course, significant risks remain. The greatest danger, perhaps, is that
sources of external support to the regions' economies will disappear. Continuing
growth in the United States helped Latin America emerge from its troubles last
year; should growth in the U.S. slow--or worse yet, should U.S. capital flows to
the region reverse--this could spell trouble for these markets.
Partly for this reason, we have focused more of our investments on the so-called
"Southern Cone" economies of Chile, Argentina, and Brazil, while reducing our
exposure to the economies tied most closely to the U.S., such as Mexico.
Partly because the American economy remains strong, however, we remain
optimistic, and we continue to believe that Latin American stocks represent a
good value for aggressive investors.
We look forward to reporting to you again in six months.
/s/ David Manuel
David Manuel
<PAGE>
PACIFIC BASIN FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
- --------------------------------------------------------------------------------
Dear Shareholder:
Perhaps a fitting theme for our fund's past year would be the process of putting
affairs back in order. This is certainly true of Asian markets, which have
recovered substantially from the lows they reached in the midst of the economic
crisis of last year. It is also true of many Asian economies, which are finally
undergoing real structural reforms. Finally, we like to think, it is true of the
changes we have made in the fund, which has seen improving relative performance.
For the one-year period ended October 31, 1999, the value of your shares rose
47.43%, compared to the MSCI-Pacific Index, which rose 51.88% over the same
period. (Of course, past performance is no guarantee of future results.)(1),(2)
Asia's turnaround can be traced to a number of factors. The resilience of the
American and other Western economies helped, as did coordinated interest rate
cuts that added liquidity to the international financial system. Other changes
were more internal to Asia. South Korea and other emerging markets undertook
important reforms to break up state-sanctioned monopolies, while Japan made
encouraging announcements about reforming its banking system. The Chinese
government confounded some experts by not devaluing its currency even as the
economy slowed--although it seemed likely to devalue if other means of
jumpstarting the economy were not effective.
In other words, after a stretch in which everything that could have gone wrong
in Asia went dramatically awry, almost everything that could have gone right
fell exactly in place. This was perhaps best represented by the stunning
turnaround in the Japanese economy. Having contracted at near-depression rates
for several quarters, the Japanese economy expanded at an amazing pace in the
second quarter of 1999.
In retrospect, we were perhaps too cautious in our approach, and we were taken
by surprise by the strength of this recovery. This was especially true of our
underexposure to the Japanese market; indeed, we still remain cognizant of the
huge challenges Japan faces in stimulating consumer demand and getting its
banking system on solid footing.
We have become interested in particular areas of the Japanese economy, however,
which we might call the "new Japan." In these sectors, which include health
care, telecommunications, technology, and services, the impact of global
competition is leading to restructuring and high growth rates for successful
companies. Of course, we are also interested in the restructuring of established
companies such as Fujitsu, which is moving toward more highly profitable
products in the Internet and software industries.
Elsewhere in Asia, we have redoubled our focus on companies poised to benefit
from the recovery in the world economy. Many of these firms are in South Korea
and Taiwan, which, because of their extensive export base, we view as two of the
most highly leveraged plays on world economic growth. The importance of the
Taiwanese economy, for example, recently became clear when the earthquake
southwest of Taipei closed down semiconductor production, in turn causing a
ripple effect throughout the world computer industry.
<PAGE>
As we move forward, we are optimistic for both Asian investing and for our
relative performance. We have taken steps to broaden the focus of the portfolio
while also becoming more aggressive in our individual stock selection, both of
which should make fuller use of our extensive investment team spread out through
the region.
We will look forward to reporting to you on the results of these changes in six
months.
/s/ Anna Tong
Anna Tong
<PAGE>
- --------------------------------------------------------------------------------
FUND MANAGERS
EUROPEAN FUND
STEVEN CHAMBERLAIN
Steven Chamberlain is the lead manager for European Fund. He holds a BSc Degree
in Geology from Kingston Polytechnic and has experience in equities and currency
trading. He joined INVESCO in 1987.
INTERNATIONAL BLUE CHIP FUND
JOHN ROGERS, CFA
John Rogers leads the portfolio management team for International Blue Chip
Fund. John serves as the Chief Executive Officer and Chief Investment Officer
for INVESCO's Global Investment Management Company in the United States. He has
a BA in History from Yale University and an MA in East Asian Studies from
Stanford University.
LATIN AMERICAN GROWTH FUND
DAVID MANUEL
David Manuel leads a team of specialists in the various countries and is a
Portfolio Manager with INVESCO Asset Management Limited (London). David has a BA
from Downing College and a PhD from Imperial College. He began his investment
career in 1987, joined INVESCO in 1998, and has managed this fund since 1998.
PACIFIC BASIN FUND
ANNA TONG
Anna Tong leads the management team for Pacific Basin Fund and serves as Deputy
Managing Director and Chief Investment Officer of INVESCO Asia. She has a BS in
Accounting and a MBA from the University of California at Berkeley.
- --------------------------------------------------------------------------------
YEAR 2000 COMPUTER ISSUE
(UNAUDITED)
Many computer systems in use today may not be able to recognize any date after
December 31, 1999. If these systems are not fixed by that date, it is possible
that they could generate erroneous information or fail altogether. INVESCO has
committed substantial resources in an effort to make sure that its own major
computer systems will continue to function on and after January 1, 2000. Of
course, INVESCO cannot fix systems that are beyond its control. If INVESCO's own
systems, or the systems of third parties upon which it relies, do not perform
properly after December 31, 1999, the Funds could be adversely affected.
In addition, the markets for, or values of, securities in which the Funds invest
may possibly be hurt by computer failures affecting portfolio investments or
trading of securities beginning January 1, 2000. For example, improperly
functioning computer systems could result in securities trade settlement
problems and liquidity issues, production issues for individual companies and
overall economic uncertainties. Individual issuers may incur increased costs in
making their own systems Year 2000 compliant. The combination of market
uncertainty and increased costs means that there is a possibility that Year 2000
computer issues may adversely affect the Funds' investments. At this time, it is
generally believed that foreign issuers, particularly those in emerging and
other markets, may be more vulnerable to Year 2000 problems than will be issuers
in the U.S.
<PAGE>
INVESCO | ANNUAL REPORT | OCTOBER 31, 1999
MARKET HEADLINES: NOVEMBER 1998 TO OCTOBER 1999
- --------------------------------------------------------------------------------
World stock markets bounced back during the 12 months ended October 31, 1999,
with virtually every major nation recording a gain in its major index. Leading
the pack were some of the smaller European markets, such as Finland, Sweden, and
Greece, and some of the Asian markets that had been especially punished last
year, including Hong Kong and South Korea. Most notable of all, however, were
the impressive gains in Japan, the slumbering giant whose economy had fallen
into a steep recession the year before.
What caused the sudden burst in confidence? Clearly the liquidity provided to
the world financial system in the form of interest rate cuts by many of the
world's central banks helped. So did the continuing expansions in the United
States and Europe. A degree of calm following the bottoming-out of Asian
currencies also allowed investors to reconsider their worst-case scenarios for
the fragile markets in Asia and Latin America. Perhaps the most direct
explanation was simply that stocks had become cheap enough for many to see good
buying opportunities.
As the global economy began to revive, firms supplying the commodities and
machines to make it operate were among the first to feel the positive effects.
Oil companies around the world began to prosper again as the price of crude more
than doubled from its lows of 1998. Semiconductor makers enjoyed a rebound as
worldwide demand remained strong, helping Taiwan and other Asian economies.
In the U.S., meanwhile, investors now worried about the side effects of too much
growth: rising interest rates and creeping inflation. Torn between good profit
news on the one hand and higher interest rates on the other, investors waffled
and the domestic equity markets moved sideways, stuck in a "horizontal trading
range," in Wall Street's parlance.
Because of the increasing linkage among markets around the world, Wall Street's
concerns were also the world's. Periodic drops in American stock indexes were
usually echoed overseas--especially in the European markets. Nevertheless, by
the fall, many American investors were convinced that it was time to pack their
bags for at least a modest trip overseas.
SINCE THE FUNDS ARE ACTIVELY MANAGED, HOLDINGS WILL CHANGE OVER TIME.
(1)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.
(2)THE MSCI-EAFE, MSCI-AC EUROPE/MSCI-EUROPE, MSCI-PACIFIC, AND NIKKEI 225 ARE
UNMANAGED INDEXES OF COMMON STOCKS CONSIDERED REPRESENTATIVE OF THE
INTERNATIONAL, EUROPEAN, PACIFIC BASIN, AND JAPANESE STOCK MARKETS,
RESPECTIVELY.
<PAGE>
TEN LARGEST COMMON STOCK HOLDINGS
INVESCO INTERNATIONAL FUNDS, INC.
OCTOBER 31, 1999
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
EUROPEAN FUND
Nokia Oyj $ 20,586,634
Mannesmann AG Registered Shrs 18,907,187
Orange PLC 17,513,608
Sage Group PLC 16,644,059
Altran Technologies SA 15,997,248
Tomra Systems A/S A 14,417,485
EM.TV & Merchandising AG 14,363,282
Telefonaktiebolaget LM Ericsson Series B Shrs 13,284,455
Vodafone AirTouch PLC 13,002,492
COLT Telecom Group PLC 12,983,868
INTERNATIONAL BLUE CHIP FUND
Kyocera Corp $ 1,628,977
Nippon Telegraph & Telephone Sponsored ADR Representing
1/200 Ord Shr 1,547,500
National Australia Bank Ltd 1,542,266
HSBC Holdings PLC 1,475,826
Societe Generale Series A Shrs 1,305,466
Unilever NV New York Registered Shrs 1,200,375
Portugal Telecom SA Sponsored ADR Representing Ord Shrs 1,188,000
ING Groep NV 1,178,914
Total Fina SA 1,169,499
Shell Transport & Trading PLC Sponsored ADR Representing
6 Ord Shrs 1,146,875
LATIN AMERICAN GROWTH FUND
Grupo Televisa SA de CV Participation Certificates Representing
Series A, D & L Shrs 948,352
Carso Global Telecomunicaciones SA Series A-1 Shrs 940,358
Telecomunicacoes Brasileiras SA 664,210
Cemex SA de CV Participation Certificates 602,647
Cia Paranaense de Energia-Copel 530,840
Kimberly-Clark de Mexico SA de CV Series A Shrs 504,957
Quinenco SA Sponsored ADR Representing 10 Ord Shrs 493,562
Sociedad Quimica y Minera de Chile SA Sponsored ADR Representing
10 Series B Shrs 435,938
CA La Electricidad de Caracas Sponsored ADR Representing
50 Equity Units 429,700
Cia Cervecerias Unidas SA Sponsored ADR Representing
5 Cmn Shrs 414,437
PACIFIC BASIN FUND
NTT Mobile Communications Network $ 4,538,808
Fujitsu Ltd 3,490,226
Takeda Chemical Industries Ltd 2,927,271
Hutchison Whampoa Ltd 2,911,384
Softbank Corp 2,613,933
Winbond Electronics GDR Representing 10 Ord Shrs 2,584,400
Murata Manufacturing Ltd 2,568,034
Rohm Co Ltd 2,466,462
Secom Co Ltd 2,454,006
Kookmin Bank 2,346,425
Composition of holdings is subject to change.
<PAGE>
STATEMENT OF INVESTMENT SECURITIES
INVESCO INTERNATIONAL FUNDS, INC.
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
<S> <C> <C> <C>
European Fund
95.26 COMMON STOCKS, RIGHTS & WARRANTS
1.09 DENMARK
Coloplast A/S Registered B Shrs HC 4,000 $ 393,100
Falck A/S AF 5,800 533,088
Vestas Wind Systems A/S(a) MG 37,500 4,904,907
============================================================================================
5,831,095
5.48 FINLAND
Helsingin Puhelin Oyj Series E Shrs TN 130,000 6,169,431
Nokia Oyj CM 180,000 20,586,634
Raisio Group PLC FD 385,800 2,510,134
============================================================================================
29,266,199
18.52 FRANCE
Altran Technologies SA EC 46,700 15,997,248
AXA IN 40,000 5,638,101
Banque Nationale de Paris BK 70,000 6,143,680
Cap Gemini SA CO 20,000 3,027,168
Carrefour SA RT 40,000 7,399,744
Compagnie de Saint Gobain BD 30,000 5,202,945
Dassault Systemes SA CO 172,100 7,132,663
Elf Aquitaine SA OG 50,000 7,357,700
LVL Medical SA Warrants (Exp 2000)(a) HC 380 979
Penauille Polyservices SV 1,955 641,951
Pinault-Printemps-Redoute SA RT 35,000 6,669,755
PSA Peugeot Citroen AM 50,000 9,591,288
Sanofi-Synthelabo SA(a) HD 130,000 5,732,174
Sidel SA MY 90,000 8,986,905
Total Fina SA Series B Shrs(b) OG 65,000 8,779,313
UBI Soft Entertainment SA(a) TY 4,290 628,134
UBI Soft Entertainment SA Warrants
(Exp 2002)(a)(c) TY 390 0
============================================================================================
98,929,748
9.97 GERMANY
Aixtron AG ES 55,500 6,183,621
EM.TV & Merchandising AG BR 300,000 14,363,282
EM.TV & Merchandising AG Rights(a) BR 300,000 3,153
Epcos AG(a) ES 25,219 1,033,005
Intershop Communications AG(a) CO 12,420 1,560,032
Kamps AG FD 32,318 1,808,873
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Kinowelt Medien AG(a) BR 10,867 $ 633,938
Mannesmann AG Registered Shrs MY 120,000 18,907,187
MobilCom AG TC 37,797 1,988,408
TDS Informationstechnologie AG SV 15,300 257,309
Veba AG MY 120,000 6,494,537
============================================================================================
53,233,345
0.00 GREECE
Chipita International SA FD 395 13,084
============================================================================================
2.60 IRELAND
Bank of Ireland PLC BK 600,000 4,685,804
CBT Group PLC Sponsored ADR
Representing Ord Shrs(a) CO 156,500 3,227,813
Esat Telecom Group PLC Sponsored ADR
Representing 2 Ord Shrs(a) TL 126,700 5,669,825
IONA Technologies PLC Sponsored ADR
Representing Ord Shrs(a) CO 6,459 138,061
Marlborough International PLC(a) SV 80,966 182,972
============================================================================================
13,904,475
1.51 ITALY
Autogrill SpA RS 700,000 7,475,423
Ciga SpA(a) LH 645,700 604,039
============================================================================================
8,079,462
5.03 NETHERLANDS
Equant NV(a) CO 110,000 10,694,943
Grand Hotel Krasnapolsky NV LH 6,576 426,818
Koninklijke Numico NV FD 180,000 7,331,423
Seagull Holding NV(a) CO 25,000 261,461
STMicroelectronics NV ES 60,000 5,266,011
TNT Post Group NV AF 100,000 2,543,662
Unique International NV SV 14,000 353,905
============================================================================================
26,878,223
2.70 NORWAY
Tomra Systems A/S A PC 376,998 14,417,485
============================================================================================
1.18 PORTUGAL
Banco Comercial Portugues SA
Registered Shrs BK 154,497 4,348,852
M Accoes Portugal Closed End Fund(a) IC 90,000 1,961,983
============================================================================================
6,310,835
7.22 SPAIN
Amadeus Global Travel Distributions SA
Series A Shrs(a) SV 178,902 1,069,970
Banco Santander Central Hispano SA BK 360,000 3,734,769
Baron de Ley SA(a) BV 11,600 310,915
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Sogecable SA(a) CA 203,974 $ 5,608,627
Telefonica SA(a) TN 461,347 7,584,177
Telefonica Publicidad e Infomacion SA(a) SV 450,000 9,814,646
TelePizza SA (a) RS 1,950,400 10,414,332
============================================================================================
38,537,436
7.49 SWEDEN
Assa Abloy AB Series B Shrs MG 966,636 10,736,228
Framtidsfabriken AB(a) CO 31,000 1,245,539
Icon Medialab International AB(a) SV 25,500 1,352,662
Scandic Hotels AB LH 34,500 322,461
Securitas AB Series B Shrs SV 402,500 5,960,647
Semcon AB SV 57,300 410,369
Skandia Forsakrings AB IN 300,000 6,664,077
Telefonaktiebolaget LM Ericsson
Series B Shrs CM 320,000 13,284,455
============================================================================================
39,976,438
5.38 SWITZERLAND
Adecco SA Registered Shrs SV 10,757 6,523,245
Bachem AG Registered B Shrs CH 450 664,206
Charles Voegele Holding AG(a) FT 40,000 7,613,047
Kudelski SA Bearer Shrs(a) EL 260 1,081,840
Roche Holdings AG HD 600 7,206,143
Zurich Allied AG Registered Shrs IN 10,000 5,663,845
============================================================================================
28,752,326
26.79 UNITED KINGDOM
Advanced Medical Solutions Group PLC(a) HD 236,434 96,991
Antonov PLC(a) AP 147,816 138,254
ARM Holdings PLC(a) ES 200,000 5,670,950
Arsenal Football Club PLC(a) ET 146 598,928
Atlantic Telecom Group PLC(a) CA 40,000 231,695
BP Amoco PLC OG 600,000 5,813,709
British Aerospace PLC AE 400,000 2,333,360
Celltech Chiroscience PLC(a) BI 38,000 283,712
COLT Telecom Group PLC(a) TN 435,000 12,983,868
Compass Group PLC SV 550,000 5,884,267
Countrywide Assured Group PLC RE 86,450 209,947
Finelist Group PLC AP 131,429 286,830
General Electric PLC MG 24,000 260,509
Greenway Holdings PLC(a) PC 163,749 72,548
Halifax Group PLC FN 460,000 5,868,679
ICON PLC Sponsored ADR Representing
Ord Shrs(a) SV 11,500 155,250
Lloyds TSB Group PLC BK 400,000 5,523,269
Manchester United PLC ET 3,000,000 10,239,216
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
McCarthy & Stone PLC HB 75,000 $ 242,443
Memory Corp PLC GDR Representing
25 Ord Shrs(a) CO 8,000 159,200
Misys PLC CO 810,710 6,757,894
National Westminster Bank PLC BK 400,000 9,018,387
Orange PLC(a) TC 703,571 17,513,608
Prudential PLC IN 350,000 5,481,837
Psion PLC CO 15,000 376,587
Sage Group PLC CO 325,000 16,644,059
Savills PLC SV 130,000 369,038
SEMA Group PLC CO 503,712 6,571,001
SmithKline Beecham PLC HD 500,000 6,432,328
Tottenham Hotspur PLC ET 500,000 582,520
Vodafone AirTouch PLC TC 2,800,000 13,002,492
WPP Group PLC(a) SV 300,000 3,251,443
============================================================================================
143,054,819
0.30 UNITED STATES
OXiGENE Inc(a) HD 100,000 1,575,000
============================================================================================
TOTAL COMMON STOCKS, RIGHTS &
WARRANTS (Cost $367,634,706) 508,759,970
============================================================================================
3.44 PREFERRED STOCKS
3.44 GERMANY
Marschollek, Lautenschlaeger und Partner AG
Non-Voting Pfd IN 33,900 7,144,274
Porsche AG, Non-Voting Pfd AM 2,500 6,832,150
SAP AG, Non-Voting Pfd CO 10,000 4,414,620
============================================================================================
TOTAL PREFERRED STOCKS (Cost $13,016,392) 18,391,044
============================================================================================
1.30 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
1.30 UNITED STATES
Repurchase Agreement with State Street
dated 10/29/1999 due 11/1/1999
at 5.130%, repurchased at $6,918,957
(Collateralized by US Treasury
Notes, due 1/31/2001 at 4.500%,
value $7,068,533) (Cost $6,916,000) RA $ 6,916,000 6,916,000
============================================================================================
100.00 TOTAL INVESTMENT SECURITES AT VALUE
(Cost $387,567,098)
(Cost for Income Tax Purposes
(Cost $387,684,659) $ 534,067,014
============================================================================================
International Blue Chip Fund
98.55 COMMON STOCKS
5.21 AUSTRALIA
National Australia Bank Ltd BK 100,000 $ 1,542,266
News Corp Ltd ET 90,000 650,428
Rio Tinto Ltd GP 25,594 411,153
============================================================================================
2,603,847
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
2.28 DENMARK
Den Danske Bank Group BK 10,000 $ 1,138,292
============================================================================================
1.44 FINLAND
Nokia Oyj CM 6,308 721,447
============================================================================================
10.05 FRANCE
AXA IN 2,753 388,042
AXA Sponsored ADR Representing 1/2 Shr IN 4,000 279,000
Cie Generale des Etablissaments Michelin
Series B Shrs AP 18,000 783,280
Credit Commercial de France BK 4,000 460,382
Groupe Danone FD 2,500 637,229
Societe Generale Series A Shrs BK 6,000 1,305,466
Total Fina SA OG 17,537 1,169,499
============================================================================================
5,022,898
5.79 GERMANY
BASF AG CH 13,000 577,317
Bayer AG CH 12,000 488,383
DaimlerChrysler AG AM 12,000 933,000
Deutsche Bank AG Registered Shrs BK 12,500 893,172
============================================================================================
2,891,872
4.81 ITALY
Ente Nazionale Idrocarburi SpA
Registered Shrs OG 150,000 876,617
San Paolo-IMI SpA Sponsored ADR
Representing 2 Ord Shrs BK 35,000 931,875
Telecom Italia Mobile SpA TC 40,000 249,741
Telecom Italia SpA Sponsored ADR
Representing 10 Ord Shrs TN 4,000 346,000
============================================================================================
2,404,233
23.34 JAPAN
Bank of Tokyo-Mitsubishi Ltd BK 850 14,074
Canon Inc OE 20,000 565,351
Canon Inc Sponsored ADR Representing
Ord Shrs OE 15,000 426,563
Daiichi Pharmaceutical Ltd HD 40,000 573,016
Fuji Photo Film Ltd PI 30,000 963,013
Hitachi Ltd Sponsored ADR Representing
10 Cmn Shrs EE 4,000 435,000
Honda Motor Ltd Sponsored ADR
Representing 2 Ord Shrs AM 12,000 1,009,500
Kyocera Corp EL 17,000 1,628,977
Mitsubishi Heavy Industries Ltd MY 200,000 783,825
Murata Manufacturing Ltd EE 6,000 770,410
Nintendo Co Ltd TY 5,500 872,221
Nippon Telegraph & Telephone Sponsored ADR
Representing 1/200 Ord Shr TN 20,000 1,547,500
Nomura Securities Ltd IV 19,000 313,329
Sony Corp Sponsored ADR Representing
Ord Shrs ET 7,000 1,118,250
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Takefuji Corp CF 5,000 $ 646,800
============================================================================================
11,667,829
1.71 MEXICO
Telefonos de Mexico SA Class L Sponsored ADR
Representing 20 Series L Shrs TN 10,000 855,000
============================================================================================
7.87 NETHERLANDS
ABN AMRO Holding NV Sponsored ADR
Representing Ord Shrs BK 30,000 725,625
ING Groep NV IN 20,000 1,178,914
Koninklijke Philips Electronics NV New York
Registered Shrs Representing Ord Shrs EL 8,000 831,500
Unilever NV New York Registered Shrs CG 18,000 1,200,375
============================================================================================
3,936,414
2.45 PORTUGAL
BPI-SGPS SA Registered Shrs IV 9,600 38,344
Portugal Telecom SA Sponsored ADR
Representing Ord Shrs TN 27,000 1,188,000
============================================================================================
1,226,344
1.05 SOUTH KOREA
SK Telecom Ltd Sponsored ADR
Representing 1/90 Ord Shr TC 40,000 522,500
============================================================================================
4.93 SPAIN
Banco Popular Espanol SA BK 11,000 739,974
Endesa SA EU 40,000 800,097
Repsol SA Sponsored ADR Representing
Ord Shrs OG 45,000 922,500
============================================================================================
2,462,571
1.67 SWEDEN
Telefonaktiebolaget LM Ericsson
Series B Shrs CM 20,079 833,558
============================================================================================
4.25 SWITZERLAND
Nestle SA Registered Shrs FD 550 1,061,233
Novartis AG Registered Shrs HD 325 486,316
Zurich Allied AG Registered Shrs IN 1,022 578,845
============================================================================================
2,126,394
21.70 UNITED KINGDOM
Abbey National PLC FN 19,100 372,960
AstraZeneca Group PLC Sponsored ADR
Representing Ord Shrs HD 22,500 1,029,375
British Airways PLC Sponsored ADR
Representing 10 Ord Shrs AR 7,500 389,063
British Telecommunications PLC TN 24,980 452,321
British Telecommunications PLC Sponsored ADR
Representing 10 Ord Shrs TN 2,700 486,000
Corus Group PLC Sponsored ADR
Representing 10 Ord Shrs IS 20,000 386,250
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Glaxo Wellcome PLC HD 9,900 $ 291,759
Glaxo Wellcome PLC Sponsored ADR
Representing 2 Ord Shrs HD 10,000 598,750
HSBC Holdings PLC BK 120,000 1,475,826
Marks & Spencer PLC RT 125,000 574,315
National Westminster Bank PLC BK 30,000 676,379
PowerGen PLC EU 60,000 525,252
Scottish Power PLC EU 90,000 833,659
Shell Transport & Trading PLC New York Registered
Shrs Sponsored ADR Representing 6
Ord Shrs OG 25,000 1,146,875
SmithKline Beecham PLC HD 44,900 577,623
SmithKline Beecham PLC Sponsored ADR
Representing 5 Ord Shrs HD 4,000 256,000
Vodafone AirTouch PLC TC 167,400 777,363
============================================================================================
10,849,770
TOTAL COMMON STOCKS (Cost $43,236,194) 49,262,969
============================================================================================
1.45 PREFERRED STOCKS
1.45 GERMANY
SAP AG, Pfd CO 815 359,792
SAP AG Sponsored ADR Representing 1/12
Pfd Shr CO 10,000 365,625
============================================================================================
TOTAL PREFERRED STOCKS (Cost $423,823) 725,417
============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $43,660,017)
(Cost for Income Tax Purposes $44,423,993) $ 49,988,386
============================================================================================
Latin American Growth Fund
59.39 COMMON STOCKS
6.42 ARGENTINA
Acindar Industria Argentina de Aceros
Series B Shrs(a) IS 93,517 $ 150,638
Banco de Galicia y Buenos Aires SA de CV
Sponsored ADR Representing 4 Class B Shrs BK 10,000 211,250
Banco Hipotecario SA(a) FN 21,507 244,225
Banco Rio de la Plata SA Sponsored ADR
Representing 2 Class B Shrs BK 26,650 343,119
Bansud SA Series B Shrs(a) BK 50,000 123,562
Juan Minetti SA(a) BD 102,162 276,998
============================================================================================
1,349,792
7.61 BRAZIL
Cia Paranaense de Energia-Copel EU 132,000,000 530,840
Rossi Residencial SA GDR Regulation S
Representing 5 Ord Shrs(e) HB 58,600 43,950
Tele Centro Sul Participacoes SA(a) TN 49,936,000 360,962
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Telecomunicacoes Brasileiras SA TN 12,837,000 $ 664,210
============================================================================================
1,599,962
7.04 CHILE
Cia Cervecerias Unidas SA Sponsored ADR
Representing 5 Cmn Shrs BV 19,000 414,437
Embotelladora Arica SA Sponsored ADR
Representing 10 Class B Shrs(d) BV 15,000 135,000
Quinenco SA Sponsored ADR
Representing 10 Ord Shrs FN 53,000 493,562
Sociedad Quimica y Minera de Chile SA
Sponsored ADR Representing 10 Series
B Shrs CH 15,000 435,938
============================================================================================
1,478,937
31.46 MEXICO
Alfa SA de CV Participation Certificates
Series A Shrs(a) CH 108,568 413,646
Carso Global Telecomunicaciones SA
Series A-1 Shrs(a) TL 140,000 940,358
Cemex SA de CV Participation Certificates BD 135,000 602,647
Consorcio ARA SA de CV
Regulation S Sponsored ADR
Representing 10 Shrs(a)(e) HB 4,200 47,526
Sponsored ADR Representing 10 Shrs(a)(d) HB 17,796 201,376
Corporacion GEO SA de CV Series B Shrs(a) HB 100,000 251,233
Grupo Carso SA de CV Series A-1 Shrs(a) CG 84,375 352,128
Grupo Financiero Bancomer SA de CV
Series O Shrs(a) FN 1,475,732 386,073
Grupo Financiero Banorte SA de CV
Series O Shrs(a) FN 250,000 308,850
Grupo Industrial Bimbo SA de CV
Series A Shrs(a) FD 180,000 329,260
Grupo Industrial Maseca SA de CV
Series B Shrs FD 550,000 253,517
Grupo Industrial Saltillo SA de CV
Series B Shrs IS 150,000 390,864
Grupo Posadas SA Series A Shrs(a) LH 291,600 157,417
Grupo Televisa SA de CV Participation Certificates
Representing Series A, D & L Shrs(a) BR 45,000 948,352
Industrias Penoles SA Participation
Certificates MM 100,000 314,560
Kimberly-Clark de Mexico SA de CV
Series A Shrs PF 160,000 504,957
Pepsi-Gemex SA Sponsored GDR
Representing 6 Ord Participation
Certificates(a) BV 45,000 208,125
============================================================================================
6,610,889
1.14 PANAMA
Banco Latinoamericano de Exportaciones SA
Series E Shrs BK 10,000 239,375
============================================================================================
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
3.68 PERU
Credicorp Ltd FN 38,250 $ 406,406
Ferreyros SA MY 414,036 225,000
Union de Cervecerias Backus y Johnston SAA
Series I Shrs BV 385,560 142,257
============================================================================================
773,663
2.04 VENEZUELA
CA La Electricidad de Caracas Sponsored ADR
Representing 50 Equity Units EU 22,796 429,700
============================================================================================
TOTAL COMMON STOCKS (Cost $15,407,610) 12,482,318
============================================================================================
34.04 PREFERRED STOCKS
3.48 ARGENTINA
Nortel Inversora SA ADR
Representing 1/20th Pfd B Shr TL 48,300 730,537
============================================================================================
28.82 BRAZIL
Cia Cimento Portland Itau Pfd BD 1,250,000 123,271
Cia de Tecidos Norte de Minas Coteminas Pfd TA 3,800,000 268,453
Cia Energetica de Brasilia Pfd
Series A Shrs(a) EU 2,080,000 34,631
Cia Energetica de Minas Gerais Pfd EU 26,711,876 381,794
Cia Energetica do Ceara-Coelce Series A
Shrs Pfd EU 99,496,350 208,983
Cia Vale do Rio Doce Pfd A Shrs(a) MM 29,800 581,192
Eletropaulo Metropolitana SA Pfd(a) EU 8,728,000 397,947
Embratel Participacoes SA Pfd TL 29,000,000 366,957
Investimentos Itaus SA Pfd CG 850,000 518,186
Investimentos Itaus SA Pfd Receipts CG 40,287 23,528
Petroleo Brasileiro SA Pfd OG 6,839,900 1,093,263
Renner Participacoes SA Pfd RT 10,000,000 15,113
Tele Centro Sul Participacoes SA ADR
Representing 5,000 Pfd Shrs TN 4,000 239,000
Telecomunicacoes Brasileiras SA Sponsored ADR
Representing 1,000 Pfd Shrs TN 6,000 281
Telecomunicacoes de Sao Paulo SA Pfd TN 2,025,000 190,881
Telemar Pfd TN 25,000,000 418,801
Ultrapar Participacoes SA Sponsored ADR
Representing 1,000 Pfd Shrs(a) NG 15,000 166,875
Usinas Siderurgicas de Minas Gerais SA
Pfd A Shrs(a) IS 100,000 364,242
Votorantim Celulose e Papel SA Pfd PF 22,000,000 664,508
============================================================================================
6,057,906
1.74 LUXEMBOURG
Quilmes Industrial Quinsa SA Sponsored ADR
Representing Non-Voting Pfd BV 35,000 365,313
============================================================================================
TOTAL PREFERRED STOCKS (Cost $9,860,139) 7,153,756
============================================================================================
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
6.57 OTHER SECURITIES
1.76 BRAZIL
Uniao de Bancos Brasileiros SA Units
(Each unit consists of 1 Pfd Shr of Unibanco
and 1 Pfd B Shr of Unibanco holdings) BK 8,000,000 $ 368,852
============================================================================================
4.81 MEXICO
Controladora Comercial Mexicana SA
de CV GDR Representing 20 Linked BC
Units (Each unit consists of 3 Series B
Shrs and 1 Series C Shr) RT 21,500 354,750
Fomento Economico Mexicano SA de CV Sponsored
ADR Representing 10 Units (Each unit
consists of 10 Series B Shrs, 20
Series D-B Shrs and 20 Series D-L Shrs) BV 20,000 656,250
============================================================================================
1,011,000
TOTAL OTHER SECURITIES (Cost $1,078,906) 1,379,852
============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $26,346,655)
(Cost for Income Tax Purposes $26,558,545) $ 21,015,926
============================================================================================
Pacific Basin Fund
96.99 COMMON STOCKS, RIGHTS & WARRANTS
5.02 AUSTRALIA
Broken Hill Proprietary Ltd IS 101,570 $ 1,049,088
North Ltd MM 950,000 1,834,468
Rio Tinto Ltd GP 59,905 962,339
WMC Ltd GP 243,000 1,042,234
============================================================================================
4,888,129
1.05 CHINA
Yizheng Chemical Fibre Ltd H Shrs(a) CH 3,726,000 1,019,081
============================================================================================
9.66 HONG KONG
Bank of East Asia Ltd BK 230,000 503,250
Cable & Wireless HKT Ltd TL 388,000 886,415
Cheung Kong Holdings Ltd RL 190,000 1,724,049
China Everbright Ltd RT 2,768,000 1,977,270
COSCO Pacific Ltd SV 1,900,000 1,406,139
Hutchison Whampoa Ltd CG 290,000 2,911,384
============================================================================================
9,408,507
1.77 INDONESIA
PT Bank Internasional Indonesia
Warrants (Exp 2000)(a) BK 42,410 37
PT Bank Pan Indonesia Tbk Warrants
(Exp 2002)(a) BK 1,110,000 43,912
PT Indah Kiat Pulp & Paper Tbk(a) PF 2,480,000 1,071,941
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
PT Lippo Bank Tbk Foreign Shrs(a) BK 18,400,000 $ 606,593
============================================================================================
1,722,483
51.52 JAPAN
Aiful Corp CF 6,700 1,040,054
Bank of Tokyo-Mitsubishi Ltd BK 500 8,279
Bridgestone Corp AP 51,000 1,402,549
Canon Inc OE 38,000 1,074,166
Fujitsu Ltd CO 116,000 3,490,226
Hikari Tsushin CM 2,800 2,251,054
Ito-Yokado Co Ltd RT 13,000 1,038,904
Jafco Co Ltd CF 10,000 1,121,119
Kao Corp PL 56,000 1,706,401
Kitagawa Industries Ltd MG 25 443
Matsushita-Kotobuki Electronics
Industries Ltd EL 40,000 827,903
Moshi Moshi Hotline SV 11,000 1,370,257
Murata Manufacturing Ltd EE 20,000 2,568,034
Mycal Card CF 21,500 947,681
Nidec Corp CO 4,000 776,160
Nippon Telegraph & Telephone TL 135 2,069,759
NTT Mobile Communications Network TC 171 4,538,808
Orix Corp FN 11,100 1,489,076
Paramount Bed Ltd HC 11,000 1,296,474
Paris Miki PL 18,000 1,448,831
Rohm Co Ltd EL 11,000 2,466,462
Ryohin Keikaku Ltd RT 5,000 961,096
Secom Co Ltd SV 23,000 2,454,006
Seven-Eleven Japan Ltd RT 12,000 1,098,122
Shiseido Co Ltd PL 50,000 761,786
Shohkoh Fund & Co Ltd FN 2,400 1,467,229
Softbank Corp CO 6,300 2,613,933
Sony Corp EL 12,200 1,900,843
Takeda Chemical Industries Ltd HD 51,000 2,927,271
TDK Corp CO 15,000 1,467,516
Tokyo Electron Ltd ES 5,000 414,910
Toshiba Corp ES 183,000 1,150,326
============================================================================================
50,149,678
3.34 MALAYSIA
Berjaya Sports Toto Berhad GM 483,000 1,048,620
Malayan Banking Berhad BK 350,000 1,188,159
United Engineers Berhad(a) EC 600,000 1,018,422
United Engineers Berhad Warrants
(Exp 2002)(a)(c) EC 120,000 0
============================================================================================
3,255,201
0.21 PHILIPPINES
Philippine Long Distance Telephone TL 10,000 207,970
============================================================================================
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
8.79 SINGAPORE
Chartered Semiconductor Manufacturing(a) ES 105,000 $ 211,097
City Developments Ltd RL 292,000 1,509,316
DBS Group Holdings Ltd BK 145,375 1,642,655
DBS Land Ltd RL 720,000 1,332,853
NatSteel Electronics Ltd EE 452,000 1,765,837
Neptune Orient Lines Ltd(a) SH 1,445,000 2,093,070
============================================================================================
8,554,828
6.15 SOUTH KOREA
Kookmin Bank BK 150,510 2,346,425
Kookmin Bank Rights(c) BK 11,100 0
Pohang Iron & Steel Ltd IS 11,310 1,357,766
Pohang Iron & Steel Ltd Sponsored ADR
Representing 1/4th Ord Shr IS 7,610 253,984
Samsung Electronics ES 5,704 951,063
Shinhan Bank BK 102,000 1,079,950
============================================================================================
5,989,188
5.62 TAIWAN
Far Eastern Textile Ltd GDR
Representing 10 TWD Shrs(a)(b) TA 142,200 2,044,125
Macronix International Ltd Sponsored ADR
Representing 10 Shrs(a) ES 70,700 839,563
Winbond Electronics GDR
Representing 10 Ord Shrs(a) EQ 142,000 2,584,400
============================================================================================
5,468,088
1.49 THAILAND
Siam Cement PLC Foreign Shrs(a) BD 56,000 1,450,777
Thai Farmers Bank PLC Warrants
(Exp 2002)(a) BK 1,875 418
============================================================================================
1,451,195
1.33 UNITED KINGDOM
HSBC Holdings PLC BK 107,948 1,295,598
============================================================================================
1.04 UNITED STATES
Fujitsu Support & Service SV 3,600 1,010,732
============================================================================================
TOTAL COMMON STOCKS, RIGHTS & WARRANTS
(Cost $68,079,265) 94,420,678
============================================================================================
3.01 PREFERRED STOCKS
3.01 THAILAND
Siam Commercial Bank PLC, Pfd Foreign Shrs(a)(d)
(Cost $3,494,302) BK 2,582,000 2,926,490
============================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $71,573,567)
(Cost for Income Tax Purposes $74,939,138) $ 97,347,168
============================================================================================
</TABLE>
<PAGE>
(a) Security is non-income producing.
(b) On November 12, 1999, Elf Aquitaine SA shares of 50,000 were exchanged for
73,076 shares of Total Fina SA.
(c) Security has no market value at October 31, 1999.
(d) Securities acquired pursuant to Rule 144A. The Fund deems such securities
to be "liquid" because an institutional market exists.
(e) The following are restricted securities at October 31, 1999:
<TABLE>
<CAPTION>
SCHEDULE OF RESTRICTED OR ILLIQUID SECURITIES
VALUE AS
ACQUISITION ACQUISITION % OF
DESCRIPTION DATE(S) COST NET ASSETS
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
LATIN AMERICAN GROWTH FUND
Consorcio ARA SA deCV Regulation S
Sponsored ADR Representing 10 Shrs 1/7/1997-10/17/1997 $ 63,175 0.22%
Rossi Residencial GDR Regulation S
Representing 5 Ord Shrs 7/15/1997 820,400 0.20
========================================================================================
0.42%
========================================================================================
</TABLE>
SUMMARY OF INVESTMENTS BY INDUSTRY
<TABLE>
<CAPTION>
% OF
INDUSTRY INVESTMENT
INDUSTRY CODE SECURITIES VALUE
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EUROPEAN FUND
Aerospace & Defense AE 0.44% $ 2,333,360
Air Freight AF 0.58 3,076,750
Auto Parts AP 0.08 425,084
Automobiles AM 3.07 16,423,438
Banks BK 6.26 33,454,761
Beverages BV 0.06 310,915
Biotechnology BI 0.05 283,712
Broadcasting BR 2.81 15,000,373
Building Materials BD 0.97 5,202,945
Cable CA 1.09 5,840,322
Chemicals CH 0.12 664,206
Communications-- Equipment & Manufacturing CM 6.34 33,871,089
Computer Related CO 11.65 62,211,041
Electronics EL 0.20 1,081,840
Electronics-- Semiconductor ES 3.40 18,153,587
Engineering & Construction EC 3.00 15,997,248
Entertainment ET 2.14 11,420,664
Financial FN 1.10 5,868,679
Foods FD 2.18 11,663,514
Footwear FT 1.43 7,613,047
Health Care Drugs-- Pharmaceuticals HD 3.94 21,042,636
Health Care Related HC 0.07 394,079
Homebuilding HB 0.05 242,443
Insurance IN 5.73 30,592,133
Investment Companies IC 0.37 1,961,983
Lodging-- Hotels LH 0.25 1,353,318
Machinery MY 6.44 34,388,629
<PAGE>
SUMMARY OF INVESTMENTS BY INDUSTRY (CONTINUED)
% OF
INDUSTRY INVESTMENT
INDUSTRY CODE SECURITIES VALUE
- ------------------------------------------------------------------------------------------
EUROPEAN FUND (CONTINUED)
Manufacturing MG 2.98% $ 15,901,644
Oil & Gas Related OG 4.11 21,950,722
Pollution Control PC 2.71 14,490,033
Real Estate Investment Trust RE 0.04 209,947
Repurchase Agreements RA 1.30 6,916,000
Restaurants RS 3.35 17,889,755
Retail RT 2.63 14,069,499
Services SV 6.78 36,227,674
Telecommunications-- Cellular & Wireless TC 6.09 32,504,508
Telecommunications-- Long Distance TL 1.06 5,669,825
Telephone TN 5.01 26,737,476
Toys TY 0.12 628,135
==========================================================================================
100.00% $ 534,067,014
==========================================================================================
INTERNATIONAL BLUE CHIP FUND
Airlines AR 0.78% $ 389,063
Auto Parts AP 1.57 783,280
Automobiles AM 3.89 1,942,500
Banks BK 19.81 9,903,331
Chemicals CH 2.13 1,065,700
Communications-- Equipment & Manufacturing CM 3.11 1,555,005
Computer Related CO 1.45 725,417
Conglomerates CG 2.40 1,200,375
Consumer Finance CF 1.29 646,800
Electric Utilities EU 4.32 2,159,008
Electrical Equipment EE 2.41 1,205,410
Electronics EL 4.92 2,460,477
Entertainment ET 3.54 1,768,678
Financial FN 0.75 372,960
Foods FD 3.40 1,698,462
Gold & Precious Metals Mining GP 0.82 411,153
Health Care Drugs-- Pharmaceuticals HD 7.63 3,812,839
Insurance IN 4.85 2,424,801
Investment Bank/Broker Firm IV 0.70 351,673
Iron & Steel IS 0.77 386,250
Machinery MY 1.57 783,825
Office Equipment & Supplies OE 1.98 991,914
Oil & Gas Related OG 8.23 4,115,491
Photography & Imaging PI 1.93 963,013
Retail RT 1.16 574,315
Telecommunications-- Cellular & Wireless TC 3.10 1,549,604
Telephone TN 9.75 4,874,821
Toys TY 1.74 872,221
==========================================================================================
100.00% $ 49,988,386
==========================================================================================
LATIN AMERICAN GROWTH FUND
Banks BK 6.12% $ 1,286,158
Beverages BV 9.14 1,921,382
Broadcasting BR 4.51 948,352
Building Materials BD 4.77 1,002,916
Chemicals CH 4.04 849,584
Conglomerates CG 4.25 893,842
<PAGE>
SUMMARY OF INVESTMENTS BY INDUSTRY (CONTINUED)
% OF
INDUSTRY INVESTMENT
INDUSTRY CODE SECURITIES VALUE
- ------------------------------------------------------------------------------------------
LATIN AMERICAN GROWTH FUND (CONTINUED)
Electric Utilities EU 9.44% $ 1,983,895
Financial FN 8.75 1,839,116
Foods FD 2.77 582,777
Homebuilding HB 2.59 544,085
Iron & Steel IS 4.31 905,744
Lodging-- Hotels LH 0.75 157,417
Machinery MY 1.07 225,000
Metals Mining MM 4.26 895,752
Natural Gas NG 0.80 166,875
Oil & Gas Related OG 5.20 1,093,263
Paper & Forest Products PF 5.57 1,169,465
Retail RT 1.76 369,863
Telecommunications-- Long Distance TL 9.70 2,037,852
Telephone TN 8.92 1,874,135
Textile-- Apparel Manufacturing TA 1.28 268,453
==========================================================================================
100.00% $ 21,015,926
==========================================================================================
PACIFIC BASIN FUND
Auto Parts AP 1.44% $ 1,402,549
Banks BK 11.96 11,641,765
Building Materials BD 1.49 1,450,777
Chemicals CH 1.05 1,019,081
Communications-- Equipment & Manufacturing CM 2.31 2,251,054
Computer Related CO 8.58 8,347,835
Conglomerates CG 2.99 2,911,384
Consumer Finance CF 3.19 3,108,854
Electrical Equipment EE 4.45 4,333,871
Electronics EL 5.34 5,195,208
Electronics-- Semiconductor ES 3.66 3,566,959
Engineering & Construction EC 1.05 1,018,424
Equipment-- Semiconductor EQ 2.66 2,584,400
Financial FN 3.04 2,956,305
Gaming GM 1.08 1,048,619
Gold & Precious Metals Mining GP 2.06 2,004,573
Health Care Drugs-- Pharmaceuticals HD 3.01 2,927,271
Health Care Related HC 1.33 1,296,474
Iron & Steel IS 2.73 2,660,838
Manufacturing MG 0.00 443
Metals Mining MM 1.89 1,834,468
Office Equipment & Supplies OE 1.10 1,074,166
Paper & Forest Products PF 1.10 1,071,941
Personal Care PL 4.02 3,917,018
Real Estate Related RL 4.69 4,566,218
Retail RT 5.21 5,075,392
Services SV 6.41 6,241,134
Shipping SH 2.15 2,093,070
Telecommunications-- Cellular & Wireless TC 4.66 4,538,808
Telecommunications-- Long Distance TL 3.25 3,164,144
Textile-- Apparel Manufacturing TA 2.10 2,044,125
==========================================================================================
100.00% $ 97,347,168
==========================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO INTERNATIONAL FUNDS, INC.
OCTOBER 31, 1999
<TABLE>
<CAPTION>
INTERNATIONAL
EUROPEAN BLUE CHIP
FUND FUND
- ------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost(a) $ 387,567,098 $ 43,660,017
==========================================================================================
At Value(a) $ 534,067,014 $ 49,988,386
Cash 14,884 0
Foreign Currency (Cost $291,739 and $2,024,
respectively) 291,040 1,989
Receivables:
Investment Securities Sold 10,716,574 2,149,904
Fund Shares Sold 5,129,360 279,158
Dividends and Interest 595,929 98,188
Appreciation on Forward Foreign Currency Contracts 0 449
Prepaid Expenses and Other Assets 88,705 72,001
==========================================================================================
TOTAL ASSETS 550,903,506 52,590,075
==========================================================================================
LIABILITIES
Payables:
Custodian 0 49,922
Distributions to Shareholders 7,785 23,800
Investment Securities Purchased 2,886,938 728,492
Fund Shares Repurchased 1,439,583 48,370
Depreciation on Forward Foreign Currency Contracts 60,030 0
Accrued Distribution Expenses 113,299 10,624
Accrued Expenses and Other Payables 138,894 18,625
==========================================================================================
TOTAL LIABILITIES 4,646,529 879,833
==========================================================================================
NET ASSETS AT VALUE $ 546,256,977 $ 51,710,242
==========================================================================================
NET ASSETS
Paid-in Capital(b) $ 391,604,813 $ 44,637,985
Accumulated Undistributed (Distributions in Excess of)
Net Investment Income (Loss) (32,101) 26,316
Accumulated Undistributed Net Realized Gain on
Investment Securities and Foreign Currency
Transactions 8,188,149 716,622
Net Appreciation of Investment Securities and
Foreign Currency Transactions 146,496,116 6,329,319
==========================================================================================
NET ASSETS AT VALUE $ 546,256,977 $ 51,710,242
==========================================================================================
Shares Outstanding 30,323,269 4,605,169
NET ASSET VALUE, Offering and Redemption
Price per Share $ 18.01 $ 11.23
==========================================================================================
</TABLE>
(a) Investment securities at cost and value at October 31, 1999 includes a
repurchase agreement of $6,916,000 for European Fund.
(b) The Fund has 800 million authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to European
Fund and 100 million have been allocated to International Blue Chip Fund.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO INTERNATIONAL FUNDS, INC.
OCTOBER 31, 1999
<TABLE>
<CAPTION>
LATIN AMERICAN PACIFIC
GROWTH BASIN
FUND FUND
- ------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost $ 26,346,655 $ 71,573,567
==========================================================================================
At Value $ 21,015,926 $ 97,347,168
Cash 284,577 3,993,423
Foreign Currency (Cost $0 and $2,061,064,
respectively) 0 2,062,730
Receivables:
Investment Securities Sold 101,405 3,628,485
Fund Shares Sold 124,068 2,053,983
Dividends and Interest 106,310 73,552
Prepaid Expenses and Other Assets 17,714 68,819
==========================================================================================
TOTAL ASSETS 21,650,000 109,228,160
==========================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 868 0
Investment Securities Purchased 0 5,141,804
Fund Shares Repurchased 48,988 934,764
Depreciation on Forward Foreign Currency Contracts 0 315,924
Accrued Distribution Expenses 4,450 21,210
Accrued Expenses and Other Payables 38,986 68,752
==========================================================================================
TOTAL LIABILITIES 93,292 6,482,454
==========================================================================================
NET ASSETS AT VALUE $ 21,556,708 $ 102,745,706
==========================================================================================
NET ASSETS
Paid-in Capital(a) $ 43,466,468 $ 103,390,807
Accumulated Undistributed (Distributions in Excess of)
Net Investment Loss (3,057) 204,470
Accumulated Undistributed Net Realized Loss on Investment
Securities and Foreign Currency Transactions (16,576,887) (26,316,888)
Net Appreciation (Depreciation) of Investment Securities and
Foreign Currency Transactions (5,329,816) 25,467,317
==========================================================================================
NET ASSETS AT VALUE $ 21,556,708 $ 102,745,706
==========================================================================================
Shares Outstanding 2,566,113 10,499,478
NET ASSET VALUE, Offering and Redemption
Price per Share $ 8.40 $ 9.79
==========================================================================================
</TABLE>
(a) The Fund has 800 million authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to Latin
American Growth Fund and 100 million have been allocated to Pacific Basin
Fund.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
INVESCO INTERNATIONAL FUNDS, INC.
YEAR ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
INTERNATIONAL
EUROPEAN BLUE CHIP
FUND FUND
- -------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 6,320,852 $ 660,883
Interest 797,704 69,810
Foreign Taxes Withheld (783,750) (74,173)
===========================================================================================
TOTAL INCOME 6,334,806 656,520
===========================================================================================
EXPENSES
Investment Advisory Fees 4,445,112 214,536
Distribution Expenses 1,582,779 71,512
Transfer Agent Fees 1,883,782 199,248
Administrative Fees 181,845 20,645
Custodian Fees and Expenses 779,897 41,167
Directors' Fees and Expenses 35,230 5,753
Interest Expenses 271,920 806
Professional Fees and Expenses 53,346 25,581
Registration Fees and Expenses 142,460 93,896
Reports to Shareholders 421,746 54,872
Other Expenses 108,678 4,864
===========================================================================================
TOTAL EXPENSES 9,906,795 732,880
Fees and Expenses Absorbed by Investment Adviser 0 (133,898)
Fees and Expenses Paid Indirectly (515,140) (27,294)
===========================================================================================
NET EXPENSES 9,391,655 571,688
===========================================================================================
NET INVESTMENT INCOME (LOSS) (3,056,849) 84,832
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 37,462,489 1,368,312
Foreign Currency Transactions (21,759,016) (562,901)
===========================================================================================
Total Net Realized Gain 15,703,473 805,411
===========================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 97,001,394 1,569,392
Foreign Currency Transactions (28,004,592) 785,673
===========================================================================================
Total Net Appreciation 68,996,802 2,355,065
===========================================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 84,700,275 3,160,476
===========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 81,643,426 $ 3,245,308
===========================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
LATIN AMERICAN GROWTH FUND
<TABLE>
<CAPTION>
PERIOD YEAR
ENDED ENDED
OCTOBER 31 JULY 31
- -------------------------------------------------------------------------------------------
1999 1999
(Note 1)
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 63,790 $ 606,177
Interest 394 42,334
Foreign Taxes Withheld (9,234) (55,471)
===========================================================================================
TOTAL INCOME 54,950 593,040
===========================================================================================
EXPENSES
Investment Advisory Fees 41,203 176,481
Distribution Expenses 13,735 58,827
Transfer Agent Fees 65,653 320,395
Administrative Fees 4,974 15,500
Custodian Fees and Expenses 13,901 66,531
Directors' Fees and Expenses 2,233 10,103
Professional Fees and Expenses 22,830 25,428
Registration Fees and Expenses 8,912 36,659
Reports to Shareholders 19,986 70,405
Other Expenses 1,307 14,550
===========================================================================================
TOTAL EXPENSES 194,734 794,879
Fees and Expenses Absorbed by Investment Adviser (75,488) (286,269)
Fees and Expenses Paid Indirectly (9,541) (37,974)
===========================================================================================
NET EXPENSES 109,705 470,636
===========================================================================================
NET INVESTMENT INCOME (LOSS) (54,755) 122,404
===========================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Loss on:
Investment Securities (319,195) (7,528,927)
Foreign Currency Transactions (968,940) (3,390,315)
===========================================================================================
Total Net Realized Loss (1,288,135) (10,919,242)
===========================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 1,656,771 3,417,020
Foreign Currency Transactions 18,350 (2,232,715)
===========================================================================================
Total Net Appreciation 1,675,121 1,184,305
===========================================================================================
NET GAIN (LOSS) ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 386,986 (9,734,937)
===========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 332,231 $ (9,612,533)
===========================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO INTERNATIONAL FUNDS, INC.
YEAR ENDED OCTOBER 31, 1999
PACIFIC
BASIN
FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 924,164
Interest 198,141
Foreign Taxes Withheld (91,519)
================================================================================
TOTAL INCOME 1,030,786
================================================================================
EXPENSES
Investment Advisory Fees 531,586
Distribution Expenses 177,195
Transfer Agent Fees 552,240
Administrative Fees 33,336
Custodian Fees and Expenses 139,096
Directors' Fees and Expenses 11,010
Interest Expense 42,960
Professional Fees and Expenses 33,345
Registration Fees and Expenses 95,294
Reports to Shareholders 170,580
Other Expenses 10,737
================================================================================
TOTAL EXPENSES 1,797,379
Fees and Expenses Absorbed by Investment Adviser (293,023)
Fees and Expenses Paid Indirectly (82,824)
================================================================================
NET EXPENSES 1,421,532
================================================================================
NET INVESTMENT LOSS (390,746)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 9,015,273
Foreign Currency Transactions (1,013,190)
================================================================================
Total Net Realized Gain 8,002,083
================================================================================
Change in Net Appreciation of:
Investment Securities 19,799,757
Foreign Currency Transactions 4,148,240
================================================================================
Total Net Appreciation 23,947,997
================================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 31,950,080
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 31,559,334
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
EUROPEAN FUND
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
- ------------------------------------------------------------------------------------------
1999 1998
<S> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (3,056,849) $ 1,263,965
Net Realized Gain on Investment Securities and
Foreign Currency Transactions 15,703,473 58,673,849
Change in Net Appreciation of Investment Securities
and Foreign Currency Transactions 68,996,802 20,880,367
==========================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 81,643,426 80,818,181
==========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 (1,807,826)
In Excess of Net Investment Income (189,864) (16,166)
Net Realized Gain on Investment Securities and
Foreign Currency Transactions (60,321,278) (58,987,304)
In Excess of Net Realized Gain on Investment Securities
and Foreign Currency Transactions 0 0
==========================================================================================
TOTAL DISTRIBUTIONS (60,511,142) (60,811,296)
==========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 2,188,396,810 2,657,190,380
Reinvestment of Distributions 58,166,765 56,473,483
Net Assets Received from Acquisition of European
Small Company Fund (Note 3) 34,159,608 0
==========================================================================================
2,280,723,183 2,713,663,863
Amounts Paid for Repurchases of Shares (2,427,744,259) (2,386,344,289)
==========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (147,021,076) 327,319,574
==========================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS (125,888,792) 347,326,459
NET ASSETS
Beginning of Period 672,145,769 324,819,310
==========================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Income
(Loss) of ($32,101) and $169,684, respectively) $ 546,256,977 $ 672,145,769
==========================================================================================
--------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 123,053,362 144,625,579
Shares Issued from Reinvestment of Distributions 3,451,340 3,870,367
Shares Issued in Connection with Acquisition of European
Small Company Fund (Note 3) 2,004,619 0
==========================================================================================
128,509,321 148,495,946
Shares Repurchased (136,336,597) (129,075,181)
==========================================================================================
NET INCREASE (DECREASE) IN FUND SHARES (7,827,276) 19,420,765
==========================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
INTERNATIONAL BLUE CHIP FUND
<TABLE>
<CAPTION>
YEAR PERIOD
ENDED ENDED
OCTOBER 31 OCTOBER 31
- -------------------------------------------------------------------------------------------
1999 1998
(Note 1)
<S> <C> <C>
OPERATIONS
Net Investment Income $ 84,832 $ 2,172
Net Realized Gain on Investment Securities and
Foreign Currency Transactions 805,411 0
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 2,355,065 7,200
===========================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS 3,245,308 9,372
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (87,004) 0
In Excess of Net Investment Income (333) 0
===========================================================================================
TOTAL DISTRIBUTIONS (87,337) 0
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 78,226,684 6,281,511
Reinvestment of Distributions 63,471 0
Net Assets Received from Acquisition of International
Growth Fund (Note 3) 25,686,580 0
===========================================================================================
103,976,735 6,281,511
Amounts Paid for Repurchases of Shares (61,711,713) (3,634)
===========================================================================================
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 42,265,022 6,277,877
===========================================================================================
TOTAL INCREASE IN NET ASSETS 45,422,993 6,287,249
NET ASSETS
Beginning of Period 6,287,249 0
===========================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Income
of $26,316 and $2,172, respectively) $ 51,710,242 $ 6,287,249
===========================================================================================
--------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 7,452,507 627,880
Shares Issued from Reinvestment of Distributions 5,677 0
Shares Issued in Connection with Acquisition of International
Growth Fund (Note 3) 2,370,352 0
===========================================================================================
9,828,536 627,880
Shares Repurchased (5,850,884) (363)
===========================================================================================
NET INCREASE IN FUND SHARES 3,977,652 627,517
===========================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
LATIN AMERICAN GROWTH FUND
<TABLE>
<CAPTION>
PERIOD YEAR YEAR
ENDED ENDED ENDED
OCTOBER 31 JULY 31 JULY 31
- -------------------------------------------------------------------------------------------
1999 1999 1998
(Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ (54,755) $ 122,404 $ (2,871)
Net Realized Loss on Investment
Securities and Foreign Currency
Transactions (1,288,135) (10,919,242) (1,133,650)
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions 1,675,121 1,184,305 (28,995,772)
===========================================================================================
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS 332,231 (9,612,533) (30,132,293)
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 (60,137) 0
In Excess of Net Investment Income (50,504) 0 (1,644)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 0 0 (5,377,132)
In Excess of Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 0 (324,757) (3,968,378)
===========================================================================================
TOTAL DISTRIBUTIONS (50,504) (384,894) (9,347,154)
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 1,785,520 38,298,451 41,383,944
Reinvestment of Distributions 49,592 377,451 9,253,953
===========================================================================================
1,835,112 38,675,902 50,637,897
Amounts Paid for Repurchases of Shares (4,128,104) (39,835,797) (106,705,315)
===========================================================================================
NET DECREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS (2,292,992) (1,159,895) (56,067,418)
===========================================================================================
TOTAL DECREASE IN NET ASSETS (2,011,265) (11,157,322) (95,546,865)
NET ASSETS
Beginning of Period 23,567,973 34,725,295 130,272,160
===========================================================================================
End of Period (Including Accumulated
Undistributed (Distributions in Excess of)
Net Investment Income (Loss) of ($3,057)
$21,585 and ($42,636), respectively) $21,556,708 $23,567,973 $ 34,725,295
===========================================================================================
--------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 217,990 4,926,437 2,743,691
Shares Issued from Reinvestment
of Distributions 5,904 49,594 725,787
===========================================================================================
223,894 4,976,031 3,469,478
Shares Repurchased (510,974) (5,228,033) (7,456,925)
===========================================================================================
NET DECREASE IN FUND SHARES (287,080) (252,002) (3,987,447)
===========================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
PACIFIC BASIN FUND
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
- -------------------------------------------------------------------------------------------
1999 1998
<S> <C> <C>
OPERATIONS
Net Investment Income (Loss)$ (390,746) $ 121,093
Net Realized Gain (Loss) on Investment Securities and
Foreign Currency Transactions 8,002,083 (19,918,269)
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 23,947,997 7,204,445
===========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 31,559,334 (12,592,731)
===========================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 (645,743)
In Excess of Net Investment Income (336,731) (21,009)
In Excess of Net Realized Gain on Investment Securities
and Foreign Currency Transactions 0 (1,134,104)
===========================================================================================
TOTAL DISTRIBUTIONS (336,731) (1,800,856)
===========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 492,941,043 396,569,871
Reinvestment of Distributions 318,350 1,722,714
Net Assets Received from Acquisition
of Asian Growth Fund (Note 3) 27,266,407 0
===========================================================================================
520,525,800 398,292,585
Amounts Paid for Repurchases of Shares (494,071,137) (402,773,585)
===========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 26,454,663 (4,481,000)
===========================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 57,677,266 (18,874,587)
NET ASSETS
Beginning of Period 45,068,440 63,943,027
===========================================================================================
End of Period (Including Accumulated Undistributed
(Distributions in Excess of) Net Investment Income
of $204,470 and $233,342, respectively) $ 102,745,706 $ 45,068,440
===========================================================================================
--------------------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 65,945,648 52,503,576
Shares Issued from Reinvestment of Distributions 44,813 208,312
Shares Issued in Connection with Acquisition
of Asian Growth Fund (Note 3) 3,260,838 0
===========================================================================================
69,251,299 52,711,888
Shares Repurchased (65,485,467) (52,543,507)
===========================================================================================
NET INCREASE IN FUND SHARES 3,765,832 168,381
===========================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Notes to financial statements -- INVESCO International Funds, Inc.
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO
International Funds, Inc. is incorporated in Maryland and presently consists of
four separate Funds: European Fund, International Blue Chip Fund, Latin American
Growth Fund and Pacific Basin Fund (individually the "Fund" and collectively,
the "Funds"). The investment objectives are: to seek capital appreciation
through investments in designated geographical sectors for European, Latin
American Growth and Pacific Basin Funds and to seek a high total return through
capital appreciation and current income by investing in foreign companies for
International Blue Chip Fund. International Blue Chip Fund commenced investment
operations on October 28, 1998. The Fund is registered under the Investment
Company Act of 1940 (the "Act") as a diversified, open-end management investment
company.
On May 28, 1999, shareholders of Latin American Growth Fund approved an
Agreement and Plan of Conversion and Termination providing for the conversion of
Latin American Growth Fund from a separate series of INVESCO Specialty Funds,
Inc. to a separate series of INVESCO International Funds, Inc., effective
October 20, 1999. Latin American Growth Fund's year-end changed from July 31 to
October 31.
On February 3, 1999, the board of directors of the Fund approved the liquidation
of Emerging Markets Fund and effective May 21, 1999, Emerging Markets Fund
liquidated its assets and closed the Fund. On May 20, 1999, shareholders of
European, International Blue Chip and International Growth Funds, and on May 28,
1999, shareholders of Pacific Basin Fund approved Agreements and Plans of
Reorganization and Termination, in which the following Funds merged: INVESCO
Specialty Funds, Inc. - European Small Company Fund ("Target Fund") into
European Fund ("Surviving Fund"); International Growth Fund ("Target Fund") into
International Blue Chip Fund ("Surviving Fund") and INVESCO Specialty Funds,
Inc. - Asian Growth Fund ("Target Fund") into Pacific Basin Fund ("Surviving
Fund"). Shareholders of the Target Funds became shareholders of the Surviving
Funds and received shares of the Surviving Funds equal in dollar value to the
then current value of their shares in the Target Funds, effective at close of
business on June 18, 1999.
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 -- 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.
Equity securities traded on national securities exchanges or in the
over-the-counter market are valued at the last sales price at the close of the
regular trading day on that exchange (generally, 4:00 p.m. New York time) in the
market where such securities are primarily traded. If last sales prices are not
available, securities are valued at the highest closing bid prices at the close
of the regular trading day (generally, 4:00 p.m. New York time) and obtained
from one or more dealers making a market for such securities or by a pricing
service approved by the Fund's board of directors.
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.
<PAGE>
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.
B. REPURCHASE AGREEMENTS -- Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to ensure
its market value exceeds the current market value of the repurchase agreements
including accrued interest. In the event of default on the obligation to
repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation.
C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date and dividend income is recorded on the
ex-dividend date. Certain dividends from foreign securities will be recorded as
soon as the Fund is informed of the dividend if such information is obtained
subsequent to the ex- dividend date. Interest income, which may be comprised of
stated coupon rate, market discount, original issue discount and amortized
premium, is recorded on the accrual basis. Income and expenses on foreign
securities are translated into U.S. dollars at rates of exchange prevailing when
accrued. Cost is determined on the specific identification basis. The cost of
foreign securities is translated into U.S. dollars at the rates of exchange
prevailing when such securities are acquired.
The Fund may have elements of risk due to concentrated investments in 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 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 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.
On September 1, 1998, the Malaysian government introduced capital controls and
imposed a fixed exchange rate for the Malaysian ringgit. The controls impose a
repatriation levy on the movement of principle invested in Malaysian securities
and the profits derived therefrom. The repatriation levy ranges from 30% of
principle or profits to 10% of principle or profits based on the period of
investment. These actions may pose significant liquidity issues and risks and
may significantly affect the valuation of Malaysian securities and currency held
by the Fund.
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.
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.
At October 31, 1999, European Fund had $4,963,371 in net capital loss carryovers
which expire in the year 2006, Latin American Growth Fund had $6,196,374 and
$10,168,592 in net capital loss carryovers which expire in the years 2006 and
2007, respectively, and Pacific Basin Fund had $2,533,039 and $23,325,482 in net
<PAGE>
capital loss carryovers which expire in the years 2005 and 2006, respectively.
The capital loss carryovers from INVESCO Specialty Funds, Inc. - European Small
Company Fund (which was acquired by European Fund on June 18, 1999), and from
INVESCO Specialty Funds, Inc. - Asian Growth Fund (which was acquired by Pacific
Basin Fund on June 18, 1999), are subject to certain limitations under the
Internal Revenue Code.
Net Capital loss carryovers utilized in 1999 by European and Pacific Basin Funds
amounted to $617,877 and $8,078,973, respectively. To the extent future capital
gains are offset by capital loss carryovers and deferred post-October 31 losses,
such gains will not be distributed to shareholders.
Dividends paid by the Fund from net investment income and distributions of net
realized short-term capital gains are, for federal income tax purposes, taxable
as ordinary income to shareholders.
Investment income received from foreign sources may be subject to foreign
withholding taxes. Dividend and interest income is shown gross of foreign
withholding taxes in the accompanying financial statements.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded by the Fund on the ex-dividend/distribution date. The
Fund distributes 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.
For the period ended October 31, 1999, the effects of such differences were as
follows:
ACCUMULATED
ACCUMULATED UNDISTRIBUTED
UNDISTRIBUTED NET REALIZED
NET GAIN ON
INVESTMENT INVESTMENT PAID-IN
FUND INCOME SECURITIES CAPITAL
- --------------------------------------------------------------------------------
European Fund $ 3,044,928 $ (5,572,528) $ 2,527,600
International Blue Chip Fund 26,649 (88,789) 62,140
Latin American Growth Fund 80,617 7,410 (88,027)
Pacific Basin Fund 698,605 (13,860,940) 13,162,335
Net investment income (loss), net realized gains (losses) and net assets were
not affected.
F. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund enters into forward foreign
currency contracts in connection with planned purchases or sales of securities
as a hedge against fluctuations in foreign exchange rates pending the settlement
of transactions in foreign securities. A forward foreign currency contract is an
agreement between contracting parties to exchange an amount of currency at some
future time at an agreed upon rate. These contracts are marked-to-market daily
and the related appreciation or depreciation of the contracts is presented in
the Statement of Assets and Liabilities. Any realized gain or loss incurred by
the Fund upon the sale of securities is included in the Statement of Operations.
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. Such credits are included in Fees and Expenses
Paid Indirectly in the Statement of Operations.
<PAGE>
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the Funds' investment adviser. As compensation for its
services to the Funds, 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
- ------------------------------------------------------------------------------------------
$700 $2 $4 $6
$0 TO $350 TO MILLION BILLION BILLION BILLION OVER
$350 $700 TO $2 TO $4 TO $6 TO $8 $8
FUND MILLION MILLION BILLION BILLION BILLION BILLION BILLION
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
European Fund 0.75% 0.65% 0.55% 0.45%(a) 0.40%(a) 0.375%(a) 0.35%(a)
Pacific Basin Fund 0.75% 0.65% 0.55% 0.45%(a) 0.40%(a) 0.375%(a) 0.35%(a)
AVERAGE NET ASSETS
- ------------------------------------------------------------------------------------------
$500 $1 $2 $4 $6
$0 TO MILLION BILLION BILLION BILLION BILLION OVER
$500 TO $1 TO $2 TO $4 TO $6 TO $8 $8
FUND MILLION BILLION BILLION BILLION BILLION BILLION BILLION
- ------------------------------------------------------------------------------------------
International Blue
Chip Fund(b) 0.75% 0.65% 0.55% 0.45%(a) 0.40%(a) 0.375%(a) 0.35%(a)
Latin American
Growth Fund 0.75% 0.65% 0.55% 0.45%(a) 0.40%(a) 0.375%(a) 0.35%(a)
</TABLE>
(a) These additional contractual breakpoints became effective May 13, 1999
(b) Prior to May 13, 1999 the investment advisory fee for International Blue
Chip Fund was computed at an annual rate of 0.75% of average net assets.
Effective May 13, 1999, the investment advisory fee became contractual and
is computed at the above rates.
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Asset
Management Limited ("IAM"), an affiliate of IFG, investment decisions of
European, Latin American Growth and Pacific Basin Funds are made by IAM. A
separate Sub-Advisory Agreement between IFG and INVESCO Global Asset Management
(N.A.) ("IGAM"), an affiliate of IFG, provides that investment decisions of
International Blue Chip Fund are made by IGAM. Fees for such sub-advisory
services are paid by IFG.
A plan of distribution pursuant to Rule 12b-1 of the Act (the "Plan") provides
for compensation of marketing and advertising expenditures to INVESCO
Distributors, Inc. ("IDI" or the "Distributor"), a wholly owned subsidiary of
IFG, to a maximum of 0.25% of annual average net assets. For the period ended
October 31, 1999, European, International Blue Chip, Latin American Growth and
Pacific Basin Funds paid the Distributor $1,594,765, $63,975, $15,247 and
$167,911, respectively, under the Plan of distribution.
IFG receives a transfer agent fee from each Fund 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.
In accordance with an Administrative Services Agreement, each Fund paid 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. Effective May 13, 1999,
each Fund pays IFG an annual fee of $10,000, plus an additional amount computed
at an annual rate of 0.045% of average net assets.
<PAGE>
IFG has voluntarily agreed to absorb certain fees and expenses incurred by
Pacific Basin Fund. IFG and IGAM have voluntarily agreed to absorb certain fees
and expenses incurred by International Blue Chip Fund. IFG and IAM have
voluntarily agreed to absorb certain fees and expenses incurred by Latin
American Growth Fund.
A 2% redemption fee is retained by Latin American Growth Fund and effective May
1, 1999, a 2% redemption fee is retained by European, International Blue Chip
and Pacific Basin Funds to offset transaction costs and other expenses
associated with short-term redemptions and exchanges. The fee is imposed on
redemptions or exchanges of shares held less than three months. The redemption
fee is accounted for as an addition to Paid-in Capital by each Fund. Total
redemption fees received by European, International Blue Chip, Latin American
Growth and Pacific Basin Funds for the period ended October 31, 1999 were
$541,944, $24,102, $26,304 and $289,855, respectively. Prior to May 1, 1999, the
redemption fee retained by Latin American Growth Fund was 1% for shares held
less than three months.
NOTE 3 -- ACQUISITION OF INVESCO SPECIALTY FUNDS, INC. - EUROPEAN SMALL COMPANY
FUND ("TARGET FUND I"), INVESCO INTERNATIONAL FUNDS, INC. - INTERNATIONAL GROWTH
FUND ("TARGET FUND II") AND INVESCO SPECIALTY FUNDS, INC. - ASIAN GROWTH FUND
("TARGET FUND III"). On June 18, 1999 European Fund acquired all the net assets
of the Target Fund I pursuant to an Agreement and Plan of Reorganization and
Termination approved by the Target Fund I shareholders on May 20, 1999. The
acquisition was accomplished by a tax-free exchange of 2,004,619 shares of
European Fund (valued at $34,159,608) for 3,168,711 shares of the Target Fund I
outstanding on June 18, 1999. The Target Fund I's net assets at that date
($34,159,608), including $3,476,753 of unrealized appreciation, were combined
with those of European Fund. The aggregate net assets of European Fund and
Target Fund I immediately before the acquisition were $543,756,820 and
$34,159,608, respectively. The net assets of European Fund after the acquisition
were $577,916,428.
On June 18, 1999, International Blue Chip Fund acquired all the net assets of
the Target Fund II pursuant to an Agreement and Plan of Reorganization and
Termination approved by the Target Fund II shareholders on May 20, 1999. The
acquisition was accomplished by a tax-free exchange of 2,370,352 shares of
International Blue Chip Fund (valued at $25,686,580) for 2,548,476 shares of the
Target Fund II outstanding on June 18, 1999. The Target Fund II's net assets at
that date ($25,686,580), including $3,967,054 of unrealized appreciation, were
combined with those of International Blue Chip Fund. The aggregate net assets of
International Blue Chip Fund and Target Fund II immediately before the
acquisition were $24,684,035 and $25,686,580, respectively. The net assets of
International Blue Chip Fund after the acquisition were $50,370,615.
On June 18, 1999, Pacific Basin Fund acquired all the net assets of the Target
Fund III pursuant to an Agreement and Plan of Reorganization and Termination
approved by the Target Fund III shareholders on May 28, 1999. The acquisition
was accomplished by a tax-free exchange of 3,260,838 shares of Pacific Basin
Fund (valued at $27,266,407) for 4,965,501 shares of the Target Fund III
outstanding on June 18, 1999. The Target Fund III's net assets at that date
($27,266,407), including $6,716,283 of unrealized appreciation, were combined
with those of Pacific Basin Fund. The aggregate net assets of Pacific Basin Fund
and Target Fund III immediately before the acquisition were $62,374,705 and
$27,266,407, respectively. The net assets of Pacific Basin Fund after the
acquisition were $89,641,112.
NOTE 4 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the period ended
October 31, 1999, 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 $ 551,645,790 $ 757,007,850
International Blue Chip Fund 55,977,617 31,203,171
Latin American Growth Fund 437,216 3,517,823
Pacific Basin Fund 120,812,718 121,049,715
There were no purchases or sales of U.S. Government securities.
<PAGE>
NOTE 5 -- APPRECIATION AND DEPRECIATION. At October 31, 1999, 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:
NET
GROSS GROSS APRECIATION
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
- --------------------------------------------------------------------------------
European Fund $ 164,883,870 $ 18,501,515 $ 146,382,355
International Blue Chip Fund 7,254,051 1,689,658 5,564,393
Latin American Growth Fund 2,584,424 8,127,043 (5,542,619)
Pacific Basin Fund 24,367,367 1,959,337 22,408,030
NOTE 6 -- TRANSACTIONS WITH AFFILIATES. Certain of the Funds' officers and
directors are also officers and directors of IFG, IDI, IAM or IGAM.
Each Fund has adopted an unfunded defined benefit deferred compensation plan
covering all independent directors of the Fund who will have served as an
independent director for at least five years at the time of retirement. Benefits
under this plan are based on an annual rate equal to 50% of the sum of the
retainer fee at the time of retirement plus the meeting attendance fees.
Pension expenses for the period ended October 31, 1999, 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 $ 12,214 $ 25,549 $ 61,309
International Blue Chip Fund 227 6,201 14,794
Latin American Growth Fund 90 0 3,041
Pacific Basin Fund 1,138 13,841 29,442
The independent directors have contributed to a deferred fee agreement plan,
pursuant to which they have deferred receipt of a portion of the compensation
which they would otherwise have been paid as directors of selected INVESCO
Funds. The deferred amounts may be invested in the shares of any of the INVESCO
Funds, excluding the INVESCO Variable Investment Funds.
NOTE 7 -- LINE OF CREDIT. Each 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 October
31, 1999, there were no such borrowings.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
INVESCO International Funds, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investment securities, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of INVESCO European Fund, INVESCO
International Blue Chip Fund, INVESCO Latin American Growth Fund (formerly one
of the portfolios constituting INVESCO Specialty Funds, Inc.) and INVESCO
Pacific Basin Fund, collectively INVESCO International Funds, Inc. (the "Fund")
at October 31, 1999, and the results of each of their operations for each of the
periods indicated, the changes in each of their net assets for each of the
periods indicated and the financial highlights for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 1999 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Denver, Colorado
December 3, 1999
<PAGE>
FINANCIAL HIGHLIGHTS
EUROPEAN FUND
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
- ------------------------------------------------------------------------------------------------
1999(a) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 17.62 $17.34 $15.85 $14.09 $12.95
================================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) (0.09) 0.04 0.07 0.05 0.23
Net Gains on Securities
(Both Realized and Unrealized) 2.18 3.58 2.63 3.00 1.12
================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 2.09 3.62 2.70 3.05 1.35
================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.00 0.06 0.07 0.08 0.21
In Excess of Net Investment Income(b) 0.01 0.00 0.00 0.00 0.00
Distributions from Capital Gains 1.69 3.28 1.14 1.21 0.00
================================================================================================
TOTAL DISTRIBUTIONS 1.70 3.34 1.21 1.29 0.21
================================================================================================
Net Asset Value--End of Period $ 18.01 $17.62 $17.34 $15.85 $14.09
================================================================================================
TOTAL RETURN 12.64%(c) 24.92% 18.07% 23.47% 10.42%
RATIOS
Net Assets-- End of Period
($000 Omitted) $546,257 $672,146 $324,819 $300,588 $224,200
Ratio of Expenses to Average
Net Assets(d) 1.56% 1.34% 1.25% 1.36% 1.40%
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.48%) 0.24% 0.33% 0.37% 1.26%
Portfolio Turnover Rate 90% 102% 90% 91% 96%
</TABLE>
(a) The per share information was computed using average shares.
(b) Distributions in excess of net investment income for the year ended October
31, 1998, aggregated less than $0.01 on a per share basis.
(c) The applicable redemption fees are not included in the Total Return
calculation.
(d) Ratio is based on Total Expenses of the Fund, which is before any expense
offset arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
INTERNATIONAL BLUE CHIP FUND
(For a Fund Share Outstanding Throughout Each Period)
YEAR PERIOD
ENDED ENDED
OCTOBER 31 OCTOBER 31
- --------------------------------------------------------------------------------
1999 1998(a)
PER SHARE DATA
Net Asset Value-- Beginning of Period $10.02 $10.00
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02 0.00
Net Gains on Securities
(Both Realized and Unrealized) 1.21 0.02
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.23 0.02
================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.02 0.00
================================================================================
Net Asset Value--End of Period $11.23 $10.02
================================================================================
TOTAL RETURN 11.77%(b) 0.20%(c)
RATIOS
Net Assets-- End of Period
($000 Omitted) $51,710 $ 6,287
Ratio of Expenses to Average Net Assets(d)(e) 2.09% 0.90%(f)
Ratio of Net Investment Income
to Average Net Assets(e) 0.30% 6.16%(f)
Portfolio Turnover Rate 112% 0%(c)
(a) From October 28, 1998, commencement of investment operations, to
October 31, 1998.
(b) The applicable redemption fees are not included in the Total Return
calculation.
(c) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(d) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements.
(e) Various expenses of the Fund were voluntarily absorbed by IFG and IGAM for
the year ended October 31, 1999. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 2.56% and
ratio of net investment loss to average net assets would have been (0.17%).
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
LATIN AMERICAN GROWTH FUND
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
PERIOD PERIOD
ENDED ENDED
OCTOBER 31 YEAR ENDED JULY 31 JULY 31
- -------------------------------------------------------------------------------------------------
1999(a)(b) 1999 1998 1997 1996 1995(c)
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 8.26 $11.18 $18.37 $12.86 $11.69 $10.00
=================================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss)(d) (0.02) 0.04 0.00 0.13 0.08 0.02
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) 0.18 (2.83) (5.41) 5.88 1.62 1.69
=================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 0.16 (2.79) (5.41) 6.01 1.70 1.71
=================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment
Income(e) 0.02 0.02 0.00 0.14 0.09 0.02
Distributions from Capital Gains 0.00 0.00 1.02 0.36 0.44 0.00
In Excess of Capital Gains 0.00 0.11 0.76 0.00 0.00 0.00
=================================================================================================
TOTAL DISTRIBUTIONS 0.02 0.13 1.78 0.50 0.53 0.02
=================================================================================================
Net Asset Value --
End of Period $8.40 $8.26 $11.18 $18.37 $12.86 $11.69
=================================================================================================
TOTAL RETURN(f) 1.93%(g) (24.87%) (30.64%) 48.06% 15.27% 17.09%(g)
RATIOS
Net Assets -- End of Period
($000 Omitted) $21,557 $23,568 $34,725 $130,272 $ 32,064 $ 7,423
Ratio of Expenses to Average
Net Assets(h) 2.20%(j) 2.17%(i) 1.99%(i) 1.76%(i) 2.14%(i) 2.00%(j)
Ratio of Net Investment Income
(Loss) to Average
Net Assets(h) (1.01%)(j) 0.52% 0.00% 1.35% 1.26% 0.79%(j)
Portfolio Turnover Rate 2%(g) 90% 33% 72% 29% 30%(g)
</TABLE>
(a) The per share information was computed using average shares.
(b) From August 1, 1999 to October 31, 1999, the Fund's current fiscal year-end.
(c) From February 15, 1995, commencement of investment operations, to July 31,
1995.
(d) Net Investment Income (Loss) aggregated less than $0.01 on a per share basis
for the year ended July 31, 1998.
(e) Distributions in excess of net investment income for the year ended July 31,
1998, aggregated less than $0.01 on a per share basis.
(f) The applicable redemption fees are not included in the Total Return
calculation.
(g) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(h) Various expenses of the Fund were voluntarily absorbed by IFG and IAM for
the period ended October 31, 1999, the year ended July 31, 1999 and the
period ended July 31, 1995. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been
3.59%(annualized), 3.39% and 4.49% (annualized), respectively, and ratio of
net investment loss to average net assets would have been
(2.40%)(annualized), (0.70%) and (1.70%) (annualized), respectively.
(i) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, where applicable, which is before any expense offset
arrangements.
(j) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
PACIFIC BASIN FUND
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
- -------------------------------------------------------------------------------------------------
1999(a) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 6.69 $ 9.74 $14.11 $13.83 $17.07
=================================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) (0.05) 0.07 (0.09) (0.02) 0.06
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 3.20 (2.80) (3.45) 0.51 (1.45)
=================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 3.15 (2.73) (3.54) 0.49 (1.39)
=================================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.00 0.12 0.00 0.03 0.06
In Excess of Net Investment Income(b) 0.05 0.00 0.00 0.00 0.00
Distributions from Capital Gains 0.00 0.00 0.83 0.18 1.79
In Excess of Capital Gains 0.00 0.20 0.00 0.00 0.00
=================================================================================================
TOTAL DISTRIBUTIONS 0.05 0.32 0.83 0.21 1.85
=================================================================================================
Net Asset Value--End of Period $ 9.79 $ 6.69 $ 9.74 $14.11 $13.83
=================================================================================================
TOTAL RETURN 47.43%(c) (28.68%) (26.65%) 3.55% (8.31%)
RATIOS
Net Assets--End of Period
($000 Omitted) $102,746 $ 45,070 $ 63,943 $149,870 $154,374
Ratio of Expenses to Average
Net Assets(d)(e) 2.12% 2.07% 1.72% 1.60% 1.52%
Ratio of Net Investment Income (Loss)
to Average Net Assets(d) (0.55%) 0.25% (0.44%) (0.04%) 0.37%
Portfolio Turnover Rate 176% 114% 86% 70% 56%
</TABLE>
(a) The per share information was computed using average shares.
(b) Distributions in excess of net investment income for the years ended October
31, 1998, 1997 and 1996, aggregated less than $0.01 on a per share basis.
(c) The applicable redemption fees are not included in the Total Return
calculation.
(d) Various expenses of the Fund were voluntarily absorbed by IFG and IAM for
the years ended October 31, 1999 and 1998. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 2.53% and 2.56%, respectively, and ratio of net investment loss to
average net assets would have been (0.96%) and (0.24%), respectively.
(e) Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements.
<PAGE>
INVESCO FAMILY OF FUNDS
NEWSPAPER
FUND NAME FUND CODE TICKER SYMBOL ABBREVIATION
- --------------------------------------------------------------------------------
STOCK
Growth & Income 21 IVGIX Gro&Inc
Blue Chip Growth 10 FLRFX BlChpGro
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
INVESCO Endeavor 61 IVENX Endeavor
Value Equity 46 FSEQX ValEq
S&P 500 Index Fund-
Class II 23 ISPIX SP500II
- --------------------------------------------------------------------------------
BOND
U.S. Government
Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
Tax-Free Bond 35 FTIFX TxFreeBd
(formerly, Tax-Free
Long-Term Bond)
- --------------------------------------------------------------------------------
COMBINATION STOCK & BOND
Equity Income 15 FIIIX EquityInc
(formerly Industrial
Income)
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- --------------------------------------------------------------------------------
SECTOR
Energy 50 FSTEX Enrgy
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Realty 42 IVSRX Realty
Technology-Class II 55 FTCHX Tech
Telecommunications 39 ISWCX Telecomm
(formerly Worldwide
Communications)
Utilities 58 FSTUX Util
- --------------------------------------------------------------------------------
INTERNATIONAL
International Blue Chip 09 IIBCX ItlBlChp
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
Pacific Basin 54 FPBSX PcBas
- --------------------------------------------------------------------------------
MONEY MARKET
U.S. Government Money 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money 40 FFRXX InvTaxFree
Money Market Reserve 96 IMRXX InvescoMMR
Tax-Exempt Reserve 95 ITTXX InvescoTTE
FOR MORE INFORMATION ABOUT ANY OF THE INVESCO FUNDS, INCLUDING MANAGEMENT FEES
AND EXPENSES, PLEASE CALL US AT 1-800-525-8085 OR VISIT OUR WEB SITE FOR A
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
<PAGE>
[INVESCO ICON] INVESCO
YOU SHOULD
KNOW WHAT
INVESCO KNOWS (TM)
WE'RE EASY TO STAY IN TOUCH WITH:
Investor Services: 1-800-525-8085
PAL(R), your Personal Account Line: 1-800-424-8085
On the World Wide Web: www.invesco.com
In Denver, visit one of our convenient Investor Centers:
Cherry Creek, 3003 East Third Avenue, Suite 1
Denver Tech Center, 7800 East Union Avenue, Lobby Level
INVESCO Distributors, Inc.,(SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied
by a current prospectus.
AINT 9027 12/99
