KNOWLEDGE o DISCIPLINE o SERVICE o CHOICE
--------------------------------------------------------------------------------
YOU SHOULD KNOW WHAT INVESCO KNOWS (R)
--------------------------------------------------------------------------------
INVESCO INTERNATIONAL FUNDS, INC.
EUROPEAN
INTERNATIONAL BLUE CHIP VALUE (FORMERLY INTERNATIONAL BLUE CHIP)
LATIN AMERICAN GROWTH
PACIFIC BASIN
SEMI-
ANNUAL
[INVESCO ICON] INVESCO FUNDS
SEMIANNUAL REPORT | April 30, 2000
<PAGE>
"ALL OF THESE CHANGES ARE CREATING TREMENDOUS OPPORTUNITIES. OPPORTUNITIES
THAT WE FEEL OUR ANALYSTS-- WHO LIVE AND WORK IN EUROPE-- ARE UNIQUELY QUALIFIED
TO UNDERSTAND." (PAGE 5)
"LIKE A KETTLE ABOUT TO BOIL OVER, THERE IS TREMENDOUS ENERGY BUILT UP IN THESE
FIRMS -- ENERGY WE HOPE TO HARNESS WHEN MARKET CONDITIONS BECOME MORE
FAVORABLE." (PAGE 11)
<TABLE>
<CAPTION>
INVESCO INTERNATIONAL FUNDS, INC.
TOTAL RETURN -- INVESTOR CLASS
PERIODS ENDED 4/30/2000(1)
CUMULATIVE 10 YEARS MANAGER'S REPORT
FUND (INCEPTION DATE) 6 MONTHS 1 YEAR 5 YEARS* OR SINCE INCEPTION*^ PAGE NUMBER
<S> <C> <C> <C> <C> <C>
EUROPEAN 47.26% 58.19% 26.68% 15.58% 4
INTERNATIONAL BLUE
CHIP VALUE (10/98) 7.17% 13.33% N/A 12.87%^ 6
LATIN AMERICAN
GROWTH (2/95) 18.93% 11.05% 2.37% 4.58%^ 8
PACIFIC BASIN 6.95% 29.58% -2.96% 0.94% 10
</TABLE>
* Average Annualized
^ For funds introduced more recently.
<PAGE>
Graph: European Fund - Investor Class 10-Year Total Return
vs. MSCI - Europe Index and MSCI - AC Europe Index
This line graph compares the value of a $10,000 investment in INVESCO
European Fund - Investor Class to the value of a $10,000 investment in
the MSCI - Europe Index and a $10,000 investment in the MSCI-AC Europe
Index, assuming in each case reinvestment of all dividends and capital
gain distributions, for the ten year period ended April 30, 2000.
Graph: International Blue Chip Value Fund - Investor Class
Total Return Since Inception vs. MSCI - EAFE Index
This line graph compares the value of a $10,000 investment in INVESCO
International Blue Chip Value Fund - Investor Class 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 April 30, 2000.
Graph: Latin American Growth Fund - Investor Class
Total Return Since Inception vs. MSCI - Latin America Index
This line graph compares the value of a $10,000 investment in INVESCO
Latin American Growth Fund - Investor Class 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 April 30,
2000.
Graph: Pacific Basin Fund - Investor Class 10-Year Total Return
vs. MSCI - Pacific Index
This line graph compares the value of a $10,000 investment in INVESCO
Pacific Basin Fund - Investor Class 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
April 30, 2000.
The line graphs illustrate the value of a $10,000 investment, plus reinvested
dividends and capital gain distributions, for the 10-year period (or since
inception) ended 4/30/00. The chart and other total return figures cited reflect
the fund's 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) To provide a better comparison to
European Fund, we will be replacing the MSCI-AC Europe Index with the MSCI
Europe Index. Because the inception of Class C shares for INVESCO International
funds took place shortly before the reporting period, we are not including
performance figures for this class of shares. Future reports will include
separate performance figures for Class C shares.
<PAGE>
EUROPEAN FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
--------------------------------------------------------------------------------
Dear Shareholder:
We were pleased with our performance over the past six months, as investors
rewarded the high-quality growth stocks we favor. Impressive gains made by many
of our companies more than offset the impact of the weak euro, as well as the
subsequent correction in growth stocks that swept the market in March and April.
This partial reversal was not unexpected, given the dramatic outperformance of
these shares over the past year, although it did appear out of line with
generally positive market fundamentals.
Europe is experiencing its strongest economic growth in a decade, supported by
technology innovation, deregulation and cross-border consolidation. Nonetheless,
investors found causes for concern in the weak euro, budding inflationary
pressures and rising interest rates. In April, the European Central Bank raised
its official interest rate to 3.75%, its fourth move in this current cycle of
tightening.
While recent volatility has been disconcerting, it has also provided us with
opportunities to buy many of our favorite stocks at attractive prices, while
also triggering a reassessment of valuations that should benefit high-quality,
consistently performing companies.
For the six months ended April 30, 2000, the value of Investor Class shares rose
47.26%. This performance well outpaced that of the MSCI-Europe Index, which rose
8.45% over the same period. (Of course, past performance is no guarantee of
future results).(1),(2)
Over the past six months, we continued to find compelling investment
opportunities in the telecommunications sector. Many of our telecom shares
surged to unprecedented highs early in 2000, driven by positive expectations for
the growth in broadband data networking, interest in wireless data capabilities
and the prospect of accelerating industry consolidation following Vodafone
AirTouch PLC's hostile takeover of Mannesmann AG. While we remain optimistic on
the long-term prospects of these companies, concern over soaring valuations led
us to take profits on some of our higher-priced telecommunications and
technology shares. That decision helped insulate our performance from the March
sell-off. We then took advantage of the downward volatility to add back to our
exposure in some of our favorite names. For example, we bolstered our positions
in technology hardware powerhouses Nokia Ojy and LM Ericsson. Finland's Nokia
dominates the fast-growing global wireless handset market, while Sweden's
Telefonaktiebolaget Ericsson is the world's leading manufacturer of mobile
infrastructure. Both companies recently reported first quarter earnings that
exceeded even the market's high expectations.
--------------------------------------------------------------------------------
FUND MANAGEMENT
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.
<PAGE>
While New Economy shares serve as the bedrock of the fund, we have also found
compelling growth stories in other areas of the European market. One less
traditional play is Germany's Aixtron AG, the world's dominant provider of
state-of-the-art MOCVD equipment, which is used to manufacture specialized
compound semiconductors. Demand for these semiconductors is growing by 50% a
year, fueled in part by their use in light-emitting diodes, or LEDs, an
efficient light source that could someday replace light bulbs.
We have also added more defensive positions, including British pharmaceuticals
leader Glaxo Wellcome PLC, French financial services firm AXA, and Dutch
financial conglomerate ING Groep NV. At the same time, we reduced our exposure
to stocks we feel are vulnerable to worsening fundamentals or pricing pressure,
such as France Telecom SA and Telecom Italia Mobile SpA.
While the weak euro has been a focal point of concern, the introduction of this
common currency has paved the way for a single European market for capital.
This, in turn, is driving increased efficiency and economies of scale across the
Continent. Meanwhile, competitive pressures are forcing companies to improve
their bottomlines, streamline their business operations, and enhance value to
their shareholders. We are also seeing more companies issuing stock, which has
expanded our universe of investment options. All of these changes are creating
tremendous opportunities. Opportunities that we feel our analysts--who live and
work in Europe--are uniquely qualified to understand.
Thank you for your continued investment in INVESCO European Fund.
/s/ Steven A. Chamberlain
Steven Chamberlain
<PAGE>
INTERNATIONAL BLUE CHIP VALUE FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
--------------------------------------------------------------------------------
Dear Shareholder:
Foreign markets consolidated during the first part of 2000, a trend that was
exacerbated by the recent sell-off in the U.S. Nasdaq market. Notwithstanding
the severe correction in technology and telecommunications stocks during the
final six weeks of the period, the best performance for the six months was
delivered by a narrow group of industries in these areas of the market. Results
for the fund relative to its peer group improved during March and April, when
relative performance picked up in the consumer, energy, and financial groups,
where the fund is well represented.
In the six months ended April 30, 2000, the fund's Investor Class shares
delivered a return of 7.17%, which compares favorably to a 6.84% rise in the
MSCI-Europe, Australia and Far East Index. The gains achieved by the fund during
the period were almost exclusively a function of the strong returns in November
and December of last year. (Of course, past performance is not a guarantee of
future results.)(1),(2)
From an economic and interest rate perspective, the backdrop for equities
remains positive overseas. In Europe, gross domestic product has grown at an
accelerating pace of 3.7% over the most recent three months, with underlying
strength further evidenced by an unemployment rate of 9.6% -- extremely low by
historic standards. At the same time, low inflation, currently around 2%, has
allowed European short-term rates to stay below 4% and government bond yields to
hover just above 5%.
Even though Japan has registered a second consecutive quarter of negative
economic growth, there is little doubt that the world's largest economy has
stabilized following its decade-long recession. This is best captured in the
financial reports of Japan's leading companies, which are now experiencing
measurable growth in underlying revenues and profitability, as well as by the
return of individual investors to the Tokyo stock market.
High-profile corporate mergers were a prominent feature of the past six months.
In addition to the combination of the UK's Vodaphone AirTouch PLC with Germany's
Mannesmann AG, the combination of America Online and Time Warner has completely
changed the dynamics of the global media industry. Our holding in News Corp Ltd
benefited during the period, thanks to its substantial media content and
distribution assets. Other merger activity involving portfolio holdings included
--------------------------------------------------------------------------------
FUND MANAGEMENT
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 A MA IN EAST ASIAN STUDIES FROM
STANFORD UNIVERSITY.
<PAGE>
the intended marriage of pharmaceutical giants SmithKline Beecham PLC and
GlaxoWellcome PLC, as well as the purchase of French bank Credit Commercial de
France by HSBC Holdings PLC.
Looking to the balance of 2000, we remain reasonably optimistic about the
prospects for international stocks. Following the recent sell-off in global
markets, we believe that equity performance will be driven more by
stock-specific developments and valuations, rather than by industry or regional
trends. This expected improvement in market breadth should be a positive
development for the fund's style of management, which tends to focus on large
and well-established companies in a highly diversified regional and industry
context. In addition, should the recent above-average market volatility persist,
we expect fund shareholders to benefit from our preference for investments in
high-quality, stable, and growing Businesses.
We will look forward to reporting to you on our progress in six months.
/s/ John D. Rogers
John Rogers
--------------------------------------------------------------------------------
NEW NAME FOR INTERNATIONAL BLUE CHIP FUND
We've changed the name of the INVESCO International Blue Chip Fund to the
INVESCO International Blue Chip Value Fund -- a name we feel better represents
the fund's objective and investment style.
Despite the name change, the fund will retain the same characteristics that led
you to include it in your portfolio. John Rogers and his investment team will
continue to rely on their proprietary international company database to select
large, high-quality, international stocks. They will continue to use onsite
analysts in London, Paris, Tokyo, Hong Kong and Buenos Aires -- specialists who
are charged with gathering in-depth company information while monitoring risks.
We believe the new name more accurately reflects the fund's investment style,
which emphasizes the contrast between a stock's intrinsic value and its current
market price. Our managers focus on high-quality companies that may be trading
at a discount to their true valuation, while maintaining a strict sell strategy
that takes into account economic trends, company fundamentals and share price.
The result is an international fund that pursues capital growth and current
income by prudently investing in some of the world's best blue chip stocks.
--------------------------------------------------------------------------------
<PAGE>
LATIN AMERICAN GROWTH FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
--------------------------------------------------------------------------------
Dear Shareholder:
There has been a "stealth rally" underway in Latin America, where equity markets
outperformed most other international markets for the six months ending April
30, 2000. In fact, Latin American stocks have shown a striking correlation with
the U.S. Nasdaq Index, surging ahead late in 1999 and early in 2000 on the
strength of telecommunications, media and technology shares. For most of the
period, the region's indexes benefited from strong inflows of capital from
global investors seeking reasonably priced New Economy plays beyond U.S.
borders. This "crossover money" proved fickle in March and April, however, after
a correction in the Nasdaq triggered a flight to quality that sent investors
fleeing to the relatively safe haven of traditional U.S. stocks.
This correction was far from unexpected, given the market's tremendous
performance. It also did little to shake our confidence in our favorite Latin
American companies, or in the political and economic developments sweeping the
region. In particular, we are pleased with the ongoing reform process in Brazil,
where new-found fiscal restraint is starting to translate into improved
macroeconomic fundamentals.
For the six months ended April 30, 2000, the value of Investor Class shares
gained 18.93%, compared to a 22.87% gain in the MSCI-Latin America Index.
Nonetheless, the fund well outpaced the MSCI-EAFE Index, which gained 6.84%
during the period. (Of course, past performance is no guarantee of future
results.)(1),(2)
One factor driving the resurgence in Latin American markets was a rebound in
global commodity prices. To capitalize on this trend, we added to our position
in Votorantim Celulose e Papel S.A., an integrated paper and pulp producer in
Brazil. Brazil is the world's low-cost producer of both pulp and paper, and its
manufacturers have benefited from accelerating global growth as well as
improving domestic fundamentals. Meanwhile, after oil prices retreated from
recent highs, we locked in some of our recent profits on our position in
Petrobras, the Brazilian oil and gas behemoth.
We also chose to take profits on some of our higher-flying Brazilian
telecommunications stocks, following a dramatic run-up in valuations. For
example, we reduced our holdings in telecommunications powerhouse Telebras,
redistributing capital to lower-valuation Brazilian telecom stocks. We also
invested in several initial public offerings, taking positions in companies with
strong business plans that nonetheless endured a heavy beating in this volatile
market. One recent addition was Iusacell, a Mexico cellular telephone provider
effectively controlled by the U.S. company Bell Atlantic.
--------------------------------------------------------------------------------
FUND MANAGEMENT
DAVID MANUEL
PORTFOLIO MANAGER, INVESCO ASSET MANAGEMENT LIMITED BA, DOWNING COLLEGE; PHD,
IMPERIAL COLLEGE. JOINED INVESCO IN 1998. BEGAN INVESTMENT CAREER IN 1987. HAS
MANAGED THIS FUND SINCE 1998.
<PAGE>
Also in Mexico, we remain positive on Grupo Televisa, the country's dominant
media company and a leading provider of Spanish language content worldwide. We
believe Televisa is well-positioned to capitalize on rising demand for content
fueled by the global proliferation of the Internet and alternative distribution
systems.
While our overall telecommunications exposure worked in our favor, results
relative to the MSCI-Latin American Index and our peers were somewhat hindered
by our light exposure to companies partially owned by Spain's Telefonica Espana.
Our underweight position in these shares reflected our uncertainty over
Telefonica's management control, and did work in our favor for much of the
period as shares languished. It hurt our performance in January, however, after
Telefonica announced its intention to acquire its Latin American subsidiaries at
a considerable premium, triggering a surge in these companies' share prices.
While the outlook for the region continues to improve, we caution that Latin
American markets, especially Mexico, will remain sensitive to the behavior of
U.S. equities. In this environment, our focus will remain on companies that can
capitalize on firming commodity prices, as well as on the region's economic
recoveries and reform process. We believe these companies are well-positioned to
rebound as investors come to recognize their low valuations and their
strengthening domestic fundamentals.
Thank you for your continued confidence and investment in INVESCO Latin American
Growth Fund.
/s/ David Manuel
David Manuel
<PAGE>
PACIFIC BASIN FUND
YOUR FUND'S PERFORMANCE: A REPORT FROM THE MANAGER
--------------------------------------------------------------------------------
Dear Shareholder:
The fund moved ahead in the last six months, although not to the degree that we
had hoped, given our strong start. At the middle point of our reporting period,
January 31, 2000, the fund had risen 23.54% since the previous November.
Unfortunately, we gave back a significant part of this performance in the three
months since. We remain optimistic, though, that the fund will resume a stronger
upward trajectory once several short-term issues in Asian markets have been
resolved.
For the six-month period ended April 30, 2000, the value of Investor Class
shares increased 6.95%. This exceeded the gain of the MSCI-Pacific Index, which
rose 3.65% over the same period. (Of course, past performance is not a guarantee
of future results.)(1),(2)
Most investors are familiar with the problems that hit U.S. markets this spring.
After months of extremely strong returns by technology and telecommunications
stocks, a severe correction engulfed many high-growth and high-priced equities
as investors reconsidered their previous assumptions. Was inflation really
contained, many wondered, and could favored companies really continue to grow at
rates justifying their valuations?
These same concerns, along with others, took a toll on Pacific Basin markets. In
Asia, investors also worried that the Japanese economy remained mired in
recession, even as global growth re-accelerated following a downturn in 1998. In
Taiwan, the election of a government unacceptable to mainland China sparked
fears of a military showdown. When Hikari Tsushin, a leading Japanese mobile
phone retailer, announced a significant loss instead of the expected gain, the
market reacted strongly, dragging down many other high-growth stocks in Japan.
In the short-term, we expect many of these problems to continue to weigh on the
markets. Trading volumes throughout the region have been low, suggesting that
investors are adopting a wait-and-see attitude. Rising interest rates in the
United States will likely continue to hold back gains in Asia and elsewhere.
But nothing has changed to alter our long-term optimism for the region, a
confidence based on both business and market fundamentals. Chief among them is
ample liquidity. As our reporting period drew to a close, Japanese postal
savings deposits began to mature. A 900-pound gorilla in Asian markets, these
deposits are roughly equal to nearly a trillion U.S. dollars, and Japanese
savers will now start investing them in the markets. It seems highly likely that
the Japanese stock market will capture at least part of this enormous pool of
wealth.
--------------------------------------------------------------------------------
FUND MANAGEMENT
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.
<PAGE>
Another source of optimism comes in the possibilities available to Japanese
companies free of the structural entanglements that have restrained the Japanese
economy. Some of these "New Japan" firms are established exporters, such as Sony
Corp., which are loosening the ties of cross-share holdings and bloated
workforces. Others are domestically oriented companies that are gaining market
share from traditional firms. Seven-Eleven Japan, for example, has made inroads
not only into the convenience store market, but the Internet as well. It
recently announced plans to deliver goods through its Web site, making it a
global pioneer in this area.
Moving forward, we will continue to focus on leading companies throughout the
region that are breaking free of past constraints. Like a kettle about to boil
over, there is tremendous energy built up in these firms -- energy we hope to
harness when market conditions become more favorable.
Thank you for your continued investment in INVESCO Pacific Basin Fund. We look
forward to updating you on our results again in six months.
/s/ Anna Tong
Anna Tong
<PAGE>
INVESCO | SEMIANNUAL REPORT | APRIL 30, 2000
MARKET HEADLINES: NOVEMBER 1999 TO APRIL 2000
--------------------------------------------------------------------------------
The robust global economy continued to steam ahead over the past six months. For
a world still recovering from the economic shock of 1997 and 1998, this proved
good news as factories ramped up production and commodity prices returned to
pre-crisis levels. While more jobs and consumer wealth were welcomed in the
United States and Europe, breakneck growth threatened to stoke the fires of
economies already operating near capacity. The specter of higher inflation and
rising interest rates appeared on the horizon once again, causing many world
securities markets to seesaw.
As investors tried to sort out the implications of high growth and higher
inflation on the one hand, and continuing technological acceleration and
productivity gains on the other, the markets retained their split personality.
New Economy stocks -- particularly technology, telecommunications, and media
companies -- seemed to move independently of Old Economy shares, which include
financial services, industrial products and basic materials.
For the months leading up to the millennium, this disparity worked to the
advantage of the New Economy stocks, as the U.S. Nasdaq Index soared to record
heights. High-flying valuations on New Economy shares led skeptics to warn that
a bubble of exuberance was swelling the market. Proponents of the "new paradigm"
took a different stance, arguing that the gains were justified by tremendous
growth potential tied to trends such as exploding Internet use,
business-to-business e-commerce, and wireless voice and data communications.
Traditional investors in Old Economy shares claimed the upper hand in March, as
investors around the world rotated out of the most speculative technology and
communications names. Money flowed out of go-go growth stocks and into more
value-oriented shares in traditional sectors, such as basic materials and
financial services. By April, however, it became clear that even traditional
issues would not be immune from investors' skittishness. Higher interest rates
promised to take a toll on companies of all types, and the prospect of higher
bond yields suggested that equities might become less attractive overall.
With all eyes on interest rates, every piece of data on inflationary pressures
or other imbalances rocked the markets. Oil prices surged early in 2000, causing
a ripple effect in U.S. producer and consumer prices that lasted through the
first quarter. In Europe, the euro continued to decline as investors worried
about higher interest rates in the United States. Although the Continent was
enjoying its highest growth rate in a decade, the super-hot American economy
still threatened to leave it behind, putting upward pressure on European
interest rates. In April, the European Central Bank raised its official target
rate to 3.75%, its fourth move in this tightening cycle. Most investors expected
further increases. Japan, still struggling to come out of its recession, offered
a haven from inflation fears, but its massive fiscal and structural problems
limited flows into its markets.
Smaller markets around the world moved largely in sync with the major securities
exchanges, even though the implications of strong economic growth were quite
different for developing economies. Higher prices for oil, pulp, ores, and other
<PAGE>
commodities meant strong profits for exporters in Latin America and Australia.
In Asia, demand for electronics components drove healthy gains for producers in
Taiwan and South Korea. But with the emerging markets crisis a recent memory,
turmoil in the major markets still resulted in a "flight to quality," with
investors quick to pull assets toward safe havens in the United States and
Europe.
Two years ago, few could have predicted that investors around the world would
soon be worrying about too much growth rather than too little, or inflation
rather than deflation. Not surprisingly, many investors threw up their hands at
trying to sort out how the myriad factors influencing the global economy would
combine to drive world markets. As a result, while maintaining their optimism
for future gains, many expected the markets to continue to drift sideways in the
near-term.
Since the funds are actively managed, holdings will change over time.
(1) PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS FOR THE PERIOD
INDICATED. 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 MSCI-EMERGING
MARKETS-LATIN AMERICA INDEXES ARE UNMANAGED INDEXES OF COMMON STOCKS CONSIDERED
REPRESENTATIVE OF THE INTERNATIONAL, EUROPEAN, PACIFIC BASIN, AND LATIN AMERICAN
STOCK MARKETS, RESPECTIVELY.
FOREIGN INVESTMENTS ENTAIL SPECIAL RISKS, INCLUDING CURRENCY EXCHANGE RATE
FLUCTUATIONS, AS WELL AS DIFFERENCES IN SECURITIES REGULATION AND ACCOUNTING
PRACTICES.
<PAGE>
TEN LARGEST COMMON STOCK HOLDINGS
INVESCO International Funds, Inc.
April 30, 2000
UNAUDITED
DESCRIPTION VALUE
--------------------------------------------------------------------------------
EUROPEAN FUND
Nokia Oyj $54,259,860
Vodafone AirTouch PLC 48,323,500
Telefonaktiebolaget LM Ericsson Series B Shrs 38,278,789
Autonomy Corp PLC 22,048,845
EM.TV & Merchandising AG 21,713,728
Total Fina Elf Series B Shrs 21,000,499
Assa Abloy AB Series B Shrs 19,650,145
Canal Plus 18,353,582
Manchester United PLC 17,639,208
Lernout & Hauspie Speech Products NV 17,550,000
INTERNATIONAL BLUE CHIP FUND
Kyocera Corp $ 2,073,264
Koninklijke Philips Electronics NV New York
Registered Shrs Representing Ord Shrs 1,963,500
Unilever NV New York Registered Shrs 1,822,454
HSBC Holdings PLC 1,780,116
Nippon Telegraph & Telephone Sponsored ADR
Representing 1/200 Ord Shr 1,592,188
Portugal Telecom SA Sponsored ADR Representing
Ord Shrs 1,473,062
Shell Transport & Trading PLC New York Registered
Shrs Sponsored ADR Representing 6 Ord Shrs 1,447,500
Takefuji Corp 1,374,879
Alcatel SA Sponsored ADR Representing 1/5 Ord Shr 1,363,125
Total Fina Elf Sponsored ADR Representing 1/2
Series B Shr 1,326,236
LATIN AMERICAN GROWTH FUND
Carso Global Telecomunicaciones SA Series A-1 Shrs $ 1,359,940
Grupo Televisa SA de CV Participation Certificates
Representing Series A, D & L Shrs 1,266,267
Kimberly-Clark de Mexico SA de CV Series A Shrs 719,817
Grupo Financiero Bancomer SA de CV Series O Shrs 670,965
Quinenco SA ADR Representing 10 Ord Shrs 596,250
Alfa SA de CV Participation Certificates Series A Shrs 589,621
Tele Centro Sul Participacoes SA 509,184
Grupo Financiero Banorte SA de CV Series O Shrs 478,037
Cemex SA de CV Participation Certificates Representing
2 Series A Shrs & Series B Shr 461,677
Banco de Galicia y Buenos Aires SA de CV Sponsored
ADR Representing 4 Class B Shrs 459,820
PACIFIC BASIN FUND
Samsung Electronics $ 5,461,771
NTT DoCoMo 3,874,717
Rohm Co Ltd 3,416,516
Softbank Corp 3,182,975
Hyundai Electronics Industries 3,083,549
Sony Corp 2,811,955
Murata Manufacturing Ltd 2,720,333
Fujitsu Ltd 2,718,112
Winbond Electronics GDR Representing 10 Ord Shrs 2,710,050
Siliconware Precision Industries Sponsored GDR
Representing 5 Ord Shrs 2,279,000
Composition of holdings is subject to change.
<PAGE>
STATEMENT OF INVESTMENT SECURITIES
INVESCO International Funds, Inc.
April 30, 2000
UNAUDITED SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
European Fund
87.06 COMMON STOCKS & WARRANTS
1.71 BELGIUM
Lernout & Hauspie Speech Products NV(a) EL 180,000 $ 17,550,000
================================================================================
0.98 DENMARK
Vestas Wind Systems A/S MG 30,000 10,047,057
================================================================================
6.59 FINLAND
Helsingin Puhelin Oyj Series E Shrs TN 100,000 7,919,197
Nokia Oyj CM 943,600 54,259,860
Sonera Oyj TN 100,000 5,513,365
================================================================================
67,692,422
12.94 FRANCE
Altran Technologies SA EC 70,100 14,360,703
AXA IN 100,000 14,863,303
Banque Nationale de Paris BK 70,000 5,671,020
Canal Plus BR 95,000 18,353,582
Cap Gemini SA CO 20,000 3,936,816
Carrefour SA RT 80,000 5,219,926
Dassault Systemes SA CO 112,100 8,642,459
France Telecom SA TL 30,000 4,653,098
Lagardere SCA SV 200,000 13,578,370
LVL Medical SA Warrants (Exp 2000)(a) HC 380 13,159
Pinault-Printemps-Redoute SA RT 35,000 7,077,612
Sidel SA MY 90,000 5,642,770
Thomson CSF AE 250,000 8,907,958
Total Fina Elf Series B Shrs OG 138,074 21,000,499
UBI Soft Entertainment SA(a) TY 21,450 995,939
UBI Soft Entertainment SA Warrants
(Exp 2002)(a) TY 390 20,258
================================================================================
132,937,472
11.20 GERMANY
Aixtron AG ES 45,500 11,734,355
Consors Discount Broker AG(a) IV 90,000 10,161,906
EM.TV & Merchandising AG BR 280,320 21,713,728
Epcos AG(a) ES 100,800 14,238,151
Intershop Communications AG(a) CO 33,720 15,025,577
Kamps AG FD 109,870 3,624,508
MobilCom AG TC 66,503 8,120,961
Openshop Holding AG(a) CO 40,447 2,394,015
Pironet AG(a) CO 70,000 2,360,267
PlasmaSelect AG(a) HC 50,000 4,191,980
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Siemens AG MG 105,600 $ 15,686,025
Software AG(a) CO 50,000 5,786,755
================================================================================
115,038,228
0.79 IRELAND
SmartForce PLC Sponsored ADR
Representing Ord Shrs(a) CO 156,500 7,472,875
Trintech Group PLC Sponsored ADR
Representing Ord Shrs(a) CO 22,598 610,146
================================================================================
8,083,021
2.11 ITALY
Banca Fideuram SpA FN 450,000 6,725,394
Finmatica SpA(a) CO 80,000 6,634,264
Telecom Italia Mobile SpA TC 870,000 8,324,726
================================================================================
21,684,384
5.58 NETHERLANDS
Equant NV(a) CO 120,000 9,311,664
ING Groep NV IN 160,000 8,751,396
Koninklijke Philips Electronics NV EL 312,000 13,951,857
KPNQwest NV(a) CO 107,267 4,467,286
STMicroelectronics NV ES 60,000 11,476,912
Teleplan International NV(a) CO 45,000 9,431,955
================================================================================
57,391,070
1.52 NORWAY
Tomra Systems A/S A PC 753,996 15,590,618
================================================================================
0.56 PORTUGAL
Banco Comercial Portugues SA Registered
Shrs BK 772,485 3,632,462
M Accoes Portugal Closed-End Fund(a) IC 90,000 2,095,534
================================================================================
5,727,996
4.53 SPAIN
Banco Santander Central Hispano SA BK 960,000 10,034,507
Baron de Ley SA(a) BV 11,600 253,706
Sogecable SA(a) CA 93,974 3,986,473
Telefonica Publicidad e Informacion SA(a) SV 240,000 9,513,972
Telefonica SA(a) TN 421,000 9,391,931
TelePizza SA(a) RS 1,650,400 13,370,645
================================================================================
46,551,234
10.99 SWEDEN
Arkivator AB MY 100,000 4,758,182
Assa Abloy AB Series B Shrs MG 966,636 19,650,145
Framtidsfabriken AB(a) CO 248,000 4,071,931
Icon Medialab International AB(a) SV 127,500 1,936,781
OM Gruppen AB FN 250,000 10,387,580
Securitas AB Series B Shrs SV 402,500 10,430,023
Semcon AB SV 57,300 892,812
Skandia Forsakrings AB IN 300,000 14,375,070
Tele1 Europe Holding AB(a) TN 36,155 569,402
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Telefonaktiebolaget LM Ericsson
Series B Shrs CM 430,000 $ 38,278,789
Telelogic AB(a) CO 1,000,000 7,595,219
================================================================================
112,945,934
2.15 SWITZERLAND
Adecco SA Registered Shrs SV 10,757 8,846,937
Bachem AG Registered B Shrs CH 450 844,813
Charles Voegele Holding AG(a) FT 50,000 9,735,542
Kudelski SA Bearer Shrs(a) EL 260 2,680,849
================================================================================
22,108,141
24.80 UNITED KINGDOM
Advanced Medical Solutions Group PLC(a) HD 358,464 95,357
ARM Holdings PLC(a) ES 1,000,000 10,249,440
Arsenal Football Club PLC(a) ET 67 325,009
Atlantic Telecom Group PLC(a) CA 50,000 563,328
Autonomy Corp PLC(a) CO 161,530 22,048,845
Baltimore Technologies PLC(a) CO 85,000 8,596,307
Barclays PLC BK 450,000 11,562,307
Bowthorpe PLC EL 270,000 5,006,578
BP Amoco PLC OG 2,000,000 17,353,632
Celltech Group PLC(a) BI 31,500 518,543
COLT Telecom Group PLC(a) TN 345,000 14,732,670
Glaxo Wellcome PLC HD 300,000 9,299,606
ICON PLC Sponsored ADR Representing
Ord Shrs(a) SV 6,259 87,626
Imagination Technologies Group PLC(a) CO 750,000 3,344,760
Kewill Systems PLC CO 130,000 2,752,327
Lloyds TSB Group PLC BK 400,000 3,930,778
Manchester United PLC ET 3,000,000 17,639,208
Misys PLC CO 810,710 9,298,831
New Dixons Group PLC RT 1,952,380 8,004,321
Pace Micro Technology PLC EL 300,000 3,520,800
Prudential PLC IN 350,000 5,400,125
Psion PLC CO 77,076 4,627,749
Royal Bank of Scotland Group PLC BK 368,000 5,738,309
Sage Group PLC CO 1,250,000 13,907,160
SEMA Group PLC CO 503,712 8,134,312
SmithKline Beecham PLC HD 500,000 6,873,384
Thus PLC(a) TL 1,292,308 7,451,820
Tottenham Hotspur PLC(a) ET 500,000 532,032
Vodafone AirTouch PLC TC 10,486,106 48,323,500
WPP Group PLC SV 300,000 4,854,010
================================================================================
254,772,674
0.61 UNITED STATES
OpenTV Corp Class A Shrs(a) CO 60,000 4,912,500
OXiGENE Inc(a) HD 100,000 1,393,750
================================================================================
6,306,250
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
TOTAL COMMON STOCKS & WARRANTS (Cost $619,032,374) $ 894,426,501
================================================================================
2.74 PREFERRED STOCKS
2.74 GERMANY
Marschollek, Lautenschlaeger und
Partner AG, Non-Voting Pfd IN 25,000 13,315,232
Porsche AG, Non-Voting Pfd AM 3,500 8,933,930
SAP AG, Non-Voting Pfd CO 10,000 5,909,781
================================================================================
TOTAL PREFERRED STOCKS (Cost $14,233,264) 28,158,943
================================================================================
10.20 SHORT-TERM INVESTMENTS
10.20 UNITED STATES
8.76 COMMERCIAL PAPER
Ford Motor Credit, 6.020%,5/3/2000 CF $25,000,000 25,000,000
General Motors Acceptance, 6.080%,
5/1/2000 CF $30,000,000 30,000,000
Household Finance, 5.950%, 5/2/2000 CF $35,000,000 35,000,000
================================================================================
TOTAL COMMERCIAL PAPER (Cost $90,000,000) 90,000,000
================================================================================
0.97 INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market
Reserve Fund 5.924% (Cost $10,020,985) IC 10,020,985 10,020,985
================================================================================
0.47 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 4/28/2000 due 5/1/2000 at
5.580%, repurchased at $4,819,240
(Collateralized by US Treasury
Inflationary Index Notes, due 1/15/2007
at 3.375%, value $4,914,709)
(Cost $4,817,000) RA $ 4,817,000 4,817,000
================================================================================
TOTAL SHORT-TERM INVESTMENTS (Cost $104,837,985) 104,837,985
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $738,103,623)
(Cost for Income Tax Purposes $739,491,672) $1,027,423,429
================================================================================
International Blue Chip Fund
88.16 COMMON STOCKS
3.43 AUSTRALIA
National Australia Bank Ltd BK 45,000 $ 616,001
News Corp Ltd ET 70,000 888,215
Rio Tinto Ltd GP 45,594 676,728
================================================================================
2,180,944
1.59 CANADA
Barrick Gold GP 60,000 1,008,750
================================================================================
9.32 FRANCE
Alcatel SA Sponsored ADR Representing
1/5 Ord Shr CM 30,000 1,363,125
AXA IN 2,753 409,187
AXA Sponsored ADR Representing 1/2 Shr IN 4,000 307,000
Cie Generale des Etablissements Michelin
Series B Shrs AP 18,000 598,724
Societe Generale Series A Shrs BK 4,500 934,174
Total Fina Elf Sponsored ADR
Representing 1/2 Series B Shr OG 17,537 1,326,236
Vivendi SV 10,000 991,494
================================================================================
5,929,940
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
4.41 GERMANY
BASF AG CH 21,000 $ 920,313
Deutsche Bank AG Registered Shrs BK 12,500 841,813
Siemens AG MG 7,000 1,039,793
================================================================================
2,801,919
4.66 ITALY
San Paolo-IMI SpA Sponsored ADR
Representing 2 Ord Shrs BK 28,000 819,000
Telecom Italia Mobile SpA TC 105,000 1,004,708
Telecom Italia SpA Sponsored ADR
Representing 10 Ord Shrs TN 8,000 1,143,000
================================================================================
2,966,708
24.62 JAPAN
Bank of Tokyo-Mitsubishi Ltd BK 80,850 1,042,840
Canon Inc OE 20,000 914,180
Canon Inc Sponsored ADR Representing
Ord Shrs OE 15,000 696,563
Fuji Photo Film Ltd PI 30,000 1,201,943
Hitachi Ltd Sponsored ADR Representing
10 Cmn Shrs EE 7,000 859,688
Ito-Yokado Ltd RT 8,000 584,039
Kyocera Corp EL 12,400 2,073,264
Mitsubishi Heavy Industries Ltd MY 200,000 621,790
Nintendo Co Ltd TY 7,000 1,165,857
Nippon Telegraph & Telephone Sponsored ADR
Representing 1/200 Ord Shr TN 25,000 1,592,188
Nomura Securities Ltd IV 19,000 478,186
Shin-Etsu Chemical Ltd CH 17,000 898,173
Sony Corp Sponsored ADR Representing 2
Ord Shrs ET 4,500 1,015,313
Takefuji Corp CF 13,000 1,374,879
Toyota Motor AM 23,000 1,142,817
================================================================================
15,661,720
3.98 MEXICO
Grupo Modelo SA de CV Series C Shrs BV 200,000 420,672
Grupo Televisa SA de CV Sponsored GDR
Representing 20 Ord Participation
Certificates(a) BR 17,500 1,110,156
Telefonos de Mexico SA Class L Sponsored
ADR Representing 20 Series L Shrs TN 17,000 999,813
================================================================================
2,530,641
8.65 NETHERLANDS
ABN AMRO Holding NV Sponsored ADR
Representing Ord Shrs BK 30,000 624,375
ING Groep NV IN 20,000 1,093,925
Koninklijke Philips Electronics NV New
York Registered Shrs Representing Ord
Shrs EL 44,000 1,963,500
Unilever NV New York Registered Shrs CG 39,999 1,822,454
================================================================================
5,504,254
2.37 PORTUGAL
BPI-SGPS SA Registered Shrs IV 9,600 31,320
Portugal Telecom SA Sponsored ADR
Representing Ord Shrs TN 129,500 1,473,062
================================================================================
1,504,382
1.63 SOUTH KOREA
Korea Telecom Sponsored ADR Representing
1/2 Ord Shr TN 30,000 1,035,000
================================================================================
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
2.60 SPAIN
Banco Popular Espanol SA BK 22,000 $ 595,443
Telefonica SA Sponsored ADR Representing
3 Shrs(a) TN 16,000 1,060,000
================================================================================
1,655,443
3.15 SWITZERLAND
Nestle SA Registered Shrs(a) FD 700 1,236,850
Zurich Allied AG Registered Shrs IN 1,800 766,870
================================================================================
2,003,720
1.56 TAIWAN
Taiwan Semiconductor Manufacturing Ltd
Sponsored ADR Representing 5 Ord
Shrs(a) EQ 19,000 993,938
================================================================================
16.19 UNITED KINGDOM
Abbey National PLC FN 40,000 457,860
British Telecommunications PLC TN 24,980 449,911
British Telecommunications PLC
Sponsored ADR Representing 10 Ord Shrs TN 4,500 823,500
Corus Group PLC Sponsored ADR
Representing 10 Ord Shrs IS 40,000 547,500
Diageo PLC BV 125,000 1,016,142
Glaxo Wellcome PLC HD 9,900 306,887
Glaxo Wellcome PLC Sponsored ADR
Representing 2 Ord Shrs HD 10,000 628,125
HSBC Holdings PLC BK 160,000 1,780,116
Marks & Spencer PLC RT 125,000 459,171
Royal Bank of Scotland Group PLC BK 29,040 452,827
Shell Transport & Trading PLC New York
Registered Shrs Sponsored ADR
Representing 6 Ord Shrs OG 30,000 1,447,500
SmithKline Beecham PLC HD 44,900 617,230
SmithKline Beecham PLC Sponsored ADR
Representing 5 Ord Shrs HD 4,000 275,000
Vodafone AirTouch PLC TC 225,000 1,036,876
================================================================================
10,298,645
TOTAL COMMON STOCKS (Cost $51,275,502) 56,076,004
================================================================================
4.21 PREFERRED STOCKS
1.68 BRAZIL
Petroleo Brasileiro SA Sponsored ADR
Representing 100 Pfd Shrs OG 45,000 1,066,113
================================================================================
2.53 GERMANY
SAP AG, Non-Voting Pfd CO 815 481,647
SAP AG Sponsored ADR Representing 1/12
Pfd Shr CO 23,000 1,129,875
================================================================================
1,611,522
TOTAL PREFERRED STOCKS (Cost $2,369,383) 2,677,635
================================================================================
7.63 SHORT-TERM INVESTMENTS-- REPURCHASE AGREEMENTS
7.63 UNITED STATES
Repurchase Agreement with State Street
dated 4/28/2000 due 5/1/2000 at
5.580%, repurchased at $4,857,258
(Collateralized by US Treasury
Inflationary Index Notes, due
1/15/2007 at 3.375%, value
$4,951,153)(Cost $4,855,000) RA $ 4,855,000 4,855,000
================================================================================
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $58,499,885)
(Cost for Income Tax Purposes $58,714,804) $ 63,608,639
================================================================================
Latin American Growth Fund
57.60 COMMON STOCKS, RIGHTS & WARRANTS
4.65 ARGENTINA
Acindar Industria Argentina de Aceros
Series B Shrs(a) IS 133,517 $ 183,046
Banco de Galicia y Buenos Aires SA de
CV Sponsored ADR Representing 4 Class
B Shrs BK 26,560 459,820
Banco Hipotecario SA(a) FN 21,507 210,917
Bansud SA Series B Shrs(a) BK 7,772 14,233
Inversiones y Representaciones SA
Sponsored GDR Representing 10 Shrs RE 7,500 221,250
Juan Minetti SA(a) BD 102,162 163,574
================================================================================
1,252,840
8.89 BRAZIL
Cia de Saneamento Basico do Estado de
Sao Paulo(a) UW 3,500,000 321,973
Cia Paranaense de Energia-Copel EU 60,135,802 313,593
Cia Siderurgica Nacional IS 11,366,071 311,158
Rossi Residencial SA GDR Regulation S
Representing 5 Ord Shrs(c) HB 58,600 99,052
Tele Celular Sul Participacoes SA(a) TC 100,900,000 273,428
Tele Centro Sul Participacoes SA TN 49,936,000 509,184
Tele Norte Celular Participation Rights(a)TC 8,749 48
Tele Norte Leste Participacoes SA(a) TN 6,457,000 110,211
Telecomunicacoes Brasileiras SA TN 5,000,000 454,420
Telemig Celular Participacoes SA Rights(a)TC 11,984 66
Telesp Celular Participacoes SA(a) TN 852 13
================================================================================
2,393,146
5.81 CHILE
Banco de A Edwards Sponsored ADR
Representing 165 Series A Shrs BK 3,700 60,819
Cia Cervecerias Unidas SA Sponsored ADR
Representing 5 Cmn Shrs BV 19,000 423,937
Embotelladora Arica SA Sponsored ADR
Representing 10 Class B Shrs(b) BV 15,000 110,609
Quinenco SA ADR Representing 10 Ord Shrs FN 53,000 596,250
Sociedad Quimica y Minera de Chile SA
Sponsored ADR Representing 10 B Shrs(a) CH 15,000 371,250
================================================================================
1,562,865
32.04 MEXICO
Alfa SA de CV Participation Certificates
Series A Shrs CH 186,568 589,621
Carso Global Telecomunicaciones SA
Series A-1 Shrs(a) TL 506,000 1,359,940
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Cemex SA de CV
Participation Certificates
Representing 2 Series A Shrs &
Series B Shr BD 106,000 $ 461,677
Warrants (Exp 2002)(a) BD 8,000 4,249
Consorcio ARA SA de CV Sponsored ADR
Representing 10 Shrs(a)(b) HB 17,796 220,435
Corporacion GEO SA de CV Series B Shrs(a) HB 100,000 231,582
Grupo Carso SA de CV Series A-1 Shrs(a) CG 84,375 286,822
Grupo Cementos de Chihuahua SA de CV
Series B Shrs BD 100,000 69,050
Grupo Continental SA BV 200,000 237,956
Grupo Financiero Bancomer SA de CV
Series O Shrs(a) FN 1,475,732 670,965
Grupo Financiero Banorte SA de CV
Series O Shrs(a) FN 340,909 478,037
Grupo Industrial Bimbo SA de CV
Series A Shrs(a) FD 280,000 365,858
Grupo Industrial Maseca SA de CV
Series B Shrs FD 160,158 78,943
Grupo Industrial Saltillo SA de CV
Series B Shrs IS 150,000 333,829
Grupo Iusacell SA de CV ADR
Representing 10 Series V Shrs(a) TL 11,019 175,615
Grupo Mexico SA Series B Shrs GP 4,000 16,317
Grupo Posadas SA Series A Shrs(a) LH 291,600 192,056
Grupo Televisa SA de CV
Sponsored GDR Representing 20 Ord
Participation Certificates
Representing Series A, D & L Shrs(a) BR 5,000 317,187
Participation Certificates Representing
Series A, D & L Shrs(a) BR 400,000 1,266,267
Industrias Penoles SA Participation
Certificates(a) MM 100,000 223,084
Kimberly-Clark de Mexico SA de CV
Series A Shrs PF 220,000 719,817
Pepsi-Gemex SA Sponsored GDR
Representing 6 Ord Participation
Certificates(a) BV 60,000 322,500
================================================================================
8,621,807
0.92 PANAMA
Banco Latinoamericano de Exportaciones
SA Series E Shrs BK 10,000 246,875
================================================================================
3.03 PERU
Credicorp Ltd FN 38,250 404,016
Ferreyros SA(a) MY 414,036 146,391
Union de Cervecerias Backus y Johnston
SAA Series I Shrs BV 735,560 264,301
================================================================================
814,708
1.16 UNITED KINGDOM
Antofagasta PLC MM 50,000 312,178
================================================================================
1.10 VENEZUELA
CA La Electricidad de Caracas ADR
Representing 50 Equity Units EU 22,796 296,977
================================================================================
TOTAL COMMON STOCKS, RIGHTS &
WARRANTS (Cost $16,966,484) 15,501,396
================================================================================
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
35.32 PREFERRED STOCKS
3.78 ARGENTINA
Nortel Inversora SA ADR
Representing 1/20 Pfd Series B Shr TL 55,000 $ 1,017,500
================================================================================
29.60 BRAZIL
Cia Cimento Portland Itau Pfd BD 1,250,000 153,782
Cia de Tecidos Norte de Minas Coteminas
Pfd TA 3,800,000 284,289
Cia Energetica de Minas Gerais Pfd EU 26,711,876 408,561
Cia Vale do Rio Doce Pfd Series A Shrs MM 29,800 738,188
Eletropaulo Metropolitana SA Pfd EU 8,728,000 503,027
Embratel Participacoes SA
ADR Representing 1,000 Pfd Shrs TL 20,240 455,400
Pfd TL 29,000,000 642,837
Investimentos Itausa SA Pfd CG 835,737 694,711
Petrobras Distribuidora SA Pfd(a) OG 25,000,000 305,209
Petroleo Brasileiro SA Pfd OG 4,095,900 970,350
Renner Participacoes SA Pfd IV 8,800,000 21,360
Tele Centro Sul Participacoes SA ADR
Representing 5,000 Pfd Shrs TN 6,000 382,500
Tele Norte Leste Participacoes SA Pfd TN 30,000,000 613,466
Telecomunicacoes Brasileiras SA Pfd(a) TL 6,000,000 166
Telecomunicacoes de Sao Paulo SA Pfd TN 10,970,033 274,175
Telecomunicacoes do Parana SA Pfd(a) TL 225,000 79,802
Ultrapar Participacoes SA Sponsored ADR
Representing 1,000 Pfd Shrs NG 30,000 270,000
Usinas Siderurgicas de Minas Gerais Pfd
Series A Shrs IS 100,000 416,182
Votorantim Celulose e Papel SA
Pfd PF 18,353,000 547,183
Sponsored ADR Representing 500 Pfd Shrs PF 13,934 205,527
================================================================================
7,966,715
1.94 LUXEMBOURG
Quilmes Industrial Quinsa SA Sponsored
ADR Representing Non-Voting Pfd BV 55,000 522,500
================================================================================
TOTAL PREFERRED STOCKS (Cost $10,387,114) 9,506,715
================================================================================
7.08 OTHER SECURITIES
1.91 BRAZIL
Uniao de Bancos Brasileiros SA
Sponsored GDR Representing 500 Units
(Each unit consists of a Pfd Shr of
Unibanco and a Pfd B Shr of Unibanco
Holdings) BK 5,000 124,688
Units (Each unit consists of a Pfd Shr
of Unibanco and a Pfd Series B Shr
of Unibanco Holdings) BK 8,000,000 390,136
================================================================================
514,824
5.17 MEXICO
Controladora Comercial Mexicana SA de
CV GDR Representing 20 Linked BC
Units (Each unit consists of 3
Series B Shrs and a Series C Shr) RT 20,500 462,250
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
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 22,500 $ 928,125
================================================================================
1,390,375
TOTAL OTHER SECURITIES (Cost $1,355,795) 1,905,199
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $28,709,393)
(Cost for Income Tax Purposes $28,932,326) $ 26,913,310
================================================================================
Pacific Basin Fund
93.64 COMMON STOCKS & WARRANTS
0.02 AUSTRALIA
Rio Tinto Ltd GP 1,430 $ 21,225
================================================================================
4.83 HONG KONG
Cheung Kong Holdings Ltd RL 40,000 477,584
China Telecom Ltd(a) TC 114,000 823,255
Hutchison Whampoa Ltd CG 80,000 1,165,717
SmarTone Telecommunications Holdings Ltd TC 580,000 1,816,875
================================================================================
4,283,431
0.02 INDONESIA
PT Bank Pan Indonesia Tbk Warrants
(Exp 2022)(a) BK 1,110,000 17,508
================================================================================
60.99 JAPAN
Aiful Corp CF 19,700 1,988,861
Bridgestone Corp AP 33,000 716,030
Canon Inc OE 38,000 1,736,942
Fujitsu Ltd CO 96,000 2,718,112
Fujitsu Support & Service(a) SV 4,300 636,595
Itochu Techno-Science CO 1,000 796,669
Jafco Co Ltd CF 12,000 2,109,646
Kao Corp PL 50,000 1,522,091
Matsushita-Kotobuki Electrontics
Industries Ltd EL 38,000 879,019
MINEBEA Co Ltd EE 100,000 1,221,374
Moshi Moshi Hotline SV 11,000 1,475,827
Murata Manufacturing Ltd EE 14,000 2,720,333
Net One Systems Ltd SV 36 1,229,146
Nidec Corp(a) CO 7,000 485,774
Nippon Telegraph & Telephone TL 183 2,268,980
Nomura Securities Ltd IV 23,000 578,857
NTT DoCoMo TC 116 3,874,717
OMRON Corp EL 40,000 1,088,133
Orix Corp FN 9,900 1,412,519
Paramount Bed Ltd HC 11,000 864,122
Paris Miki PL 21,800 1,387,777
Rohm Co Ltd EL 10,200 3,416,516
Ryohin Keikaku Ltd RT 11,300 2,096,368
Secom Co Ltd SV 23,000 1,928,105
Seven-Eleven Japan Ltd RT 11,000 1,353,690
Shiseido Co Ltd PL 50,000 631,969
<PAGE>
SHARES,
UNITS OR
INDUSTRY PRINCIPAL
% DESCRIPTION CODE AMOUNT VALUE
Softbank Corp CO 12,900 $ 3,182,975
Sony Corp EL 24,400 2,811,955
Takeda Chemical Industries Ltd HD 28,000 1,842,054
TDK Corp CO 12,000 1,606,662
Tokyo Electron Ltd ES 5,000 814,712
Toshiba Corp ES 233,000 2,259,394
Trend Micro CO 3,000 449,688
================================================================================
54,103,612
1.48 MALAYSIA
Road Builder Holdings Berhad EC 875,000 1,146,711
United Engineers Berhad Warrants
(Exp 2002)(a) EC 120,000 167,368
================================================================================
1,314,079
2.99 SINGAPORE
NatSteel Electronics Ltd EE 149,000 855,168
Venture Manufacturing Ltd EL 153,000 1,792,094
================================================================================
2,647,262
10.87 SOUTH KOREA
Hyundai Electronics Industries(a) ES 194,430 3,083,549
Kookmin Bank BK 101,610 1,098,734
Samsung Electronics ES 20,204 5,461,771
================================================================================
9,644,054
12.44 TAIWAN
Far Eastern Textile Ltd GDR Representing
10 TWD Shrs(a)(b) TA 102,200 2,044,000
Hon Hai Precision Industry GDR
Representing 2 Cmn Shrs(a) EL 75,000 2,019,375
Siliconware Precision Industries
Sponsored GDR Representing 5 Ord Shrs ES 172,000 2,279,000
Synnex Technology International GDR
Representing 4 Ord Shrs CO 75,000 1,987,500
Winbond Electronics GDR Representing 10
Ord Shrs(a) EQ 87,000 2,710,050
================================================================================
11,039,925
0.00 THAILAND
Thai Farmers Bank PLC Warrants
(Exp 2002)(a) BK 1,875 226
================================================================================
0.00 UNITED KINGDOM
HSBC Holdings PLC BK 348 3,887
================================================================================
TOTAL COMMON STOCKS & WARRANTS (Cost $58,068,106) 83,075,209
================================================================================
6.36 SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS
6.36 UNITED STATES
Repurchase Agreement with State Street dated
4/28/2000 due 5/1/2000 at 5.580%,
repurchased at $5,642,623
(Collateralized by US Treasury
Inflationary Index Notes due
1/15/2007 at 3.375%, value $5,872,138)
(Cost $5,640,000) RA $ 5,640,000 5,640,000
================================================================================
100.00 TOTAL INVESTMENT SECURITIES AT VALUE
(Cost $63,708,106)
(Cost for Income Tax Purposes $64,013,564) $ 88,715,209
================================================================================
<PAGE>
(a) Security is non-income producing.
(b) Securities acquired pursuant to Rule 144A. The Fund deems such securities
to be "liquid" because an institutional market exists.
(c) The following is a restricted security at April 30, 2000:
SCHEDULE OF RESTRICTED OR ILLIQUID SECURITIES
VALUE AS
ACQUISITION ACQUISITION % OF
DESCRIPTION DATE(S) COST NET ASSETS
--------------------------------------------------------------------------------
Latin American Growth Fund
Rossi Residencial SA GDR Regulation S
Representing 5 Ord Shrs 7/15/1997 $ 820,400 0.37%
================================================================================
SUMMARY OF INVESTMENTS BY INDUSTRY
% OF
INDUSTRY INVESTMENT
INDUSTRY CODE SECURITIES VALUE
--------------------------------------------------------------------------------
EUROPEAN FUND
Aerospace & Defense AE 0.87% $ 8,907,958
Automobiles AM 0.87 8,933,930
Banks BK 3.95 40,569,383
Beverages BV 0.02 253,706
Biotechnology BI 0.05 518,543
Broadcasting BR 3.90 40,067,310
Cable CA 0.44 4,549,801
Chemicals CH 0.08 844,813
Communications-- Equipment & Manufacturing CM 9.01 92,538,649
Computer Related CO 16.67 171,273,801
Consumer Finance CF 8.76 90,000,000
Electronics EL 4.16 42,710,084
Electronics-- Semiconductor ES 4.64 47,698,858
Engineering & Construction EC 1.40 14,360,703
Entertainment ET 1.80 18,496,249
Financial FN 1.66 17,112,974
Foods FD 0.35 3,624,508
Footwear FT 0.95 9,735,542
Health Care Drugs-- Pharmaceuticals HD 1.72 17,662,097
Health Care Related HC 0.41 4,205,139
Insurance IN 5.52 56,705,126
Investment Bank/Broker Firm IV 0.99 10,161,906
Investment Companies IC 1.18 12,116,519
Machinery MY 1.01 10,400,952
Manufacturing MG 4.42 45,383,227
Oil & Gas Related OG 3.73 38,354,131
Pollution Control PC 1.52 15,590,618
Repurchase Agreements RA 0.47 4,817,000
Restaurants RS 1.30 13,370,645
Retail RT 1.98 20,301,859
Services SV 4.88 50,140,531
Telecommunications-- Cellular & Wireless TC 6.30 64,769,187
Telecommunications-- Long Distance TL 1.18 12,104,918
Telephone TN 3.71 38,126,565
Toys TY 0.10 1,016,197
================================================================================
100.00% $1,027,423,429
================================================================================
<PAGE>
SUMMARY OF INVESTMENTS BY INDUSTRY (CONTINUED)
% OF
INDUSTRY INVESTMENT
INDUSTRY CODE SECURITIES VALUE
--------------------------------------------------------------------------------
INTERNATIONAL BLUE CHIP FUND
Auto Parts AP 0.94% $ 598,724
Automobiles AM 1.80 1,142,817
Banks BK 12.12 7,706,589
Beverages BV 2.26 1,436,814
Broadcasting BR 1.75 1,110,156
Chemicals CH 2.86 1,818,486
Communications-- Equipment & Manufacturing CM 2.14 1,363,125
Computer Related CO 2.53 1,611,522
Conglomerates CG 2.87 1,822,454
Consumer Finance CF 2.16 1,374,879
Electrical Equipment EE 1.35 859,688
Electronics EL 6.35 4,036,764
Entertainment ET 2.99 1,903,528
Equipment-- Semiconductor EQ 1.56 993,938
Financial FN 0.72 457,860
Foods FD 1.94 1,236,850
Gold & Precious Metals Mining GP 2.65 1,685,478
Health Care Drugs-- Pharmaceuticals HD 2.87 1,827,242
Insurance IN 4.05 2,576,982
Investment Bank/Broker Firm IV 0.80 509,506
Iron & Steel IS 0.86 547,500
Machinery MY 0.98 621,790
Manufacturing MG 1.64 1,039,793
Office Equipment & Supplies OE 2.53 1,610,743
Oil & Gas Related OG 6.04 3,839,849
Photography & Imaging PI 1.89 1,201,943
Repurchase Agreements RA 7.63 4,855,000
Retail RT 1.64 1,043,210
Services SV 1.56 991,494
Telecommunications-- Cellular & Wireless TC 3.21 2,041,584
Telephone TN 13.48 8,576,474
Toys TY 1.83 1,165,857
================================================================================
100.00% $ 63,608,639
================================================================================
LATIN AMERICAN GROWTH FUND
Banks BK 4.82% $ 1,296,571
Beverages BV 10.44 2,809,928
Broadcasting BR 5.88 1,583,454
Building Materials BD 3.17 852,332
Chemicals CH 3.57 960,871
Conglomerates CG 3.65 981,533
Electric Utilities EU 5.66 1,522,158
Financial FN 8.77 2,360,185
Foods FD 1.65 444,801
Gold & Precious Metals Mining GP 0.06 16,317
Homebuilding HB 2.05 551,069
Investment Bank/Broker Firm IV 0.08 21,360
Iron & Steel IS 4.62 1,244,215
Lodging-- Hotels LH 0.71 192,056
Machinery MY 0.54 146,391
Metals Mining MM 4.73 1,273,450
Natural Gas NG 1.00 270,000
<PAGE>
SUMMARY OF INVESTMENTS BY INDUSTRY (CONTINUED)
% OF
INDUSTRY INVESTMENT
INDUSTRY CODE SECURITIES VALUE
--------------------------------------------------------------------------------
Latin American Growth Fund (Continued)
Oil & Gas Related OG 4.74% $ 1,275,559
Paper & Forest Products PF 5.47 1,472,527
Real Estate Investment Trust RE 0.82 221,250
Retail RT 1.72 462,250
Telecommunications-- Cellular & Wireless TC 1.02 273,542
Telecommunications-- Long Distance TL 13.86 3,731,260
Telephone TN 8.71 2,343,969
Textile-- Apparel Manufacturing TA 1.06 284,289
Utilities-- Water UW 1.20 321,973
================================================================================
100.00% $ 26,913,310
================================================================================
PACIFIC BASIN FUND
Auto Parts AP 0.81% $ 716,030
Banks BK 1.26 1,120,355
Computer Related CO 12.66 11,227,380
Conglomerates CG 1.32 1,165,717
Consumer Finance CF 4.62 4,096,507
Electrical Equipment EE 5.41 4,796,875
Electronics EL 13.53 12,007,092
Electronics-- Semiconductor ES 15.67 13,898,426
Engineering & Construction EC 1.48 1,314,079
Equipment-- Semiconductor EQ 3.05 2,710,050
Financial FN 1.59 1,412,519
Gold & Precious Metals Mining GP 0.02 21,225
Health Care Drugs-- Pharmaceuticals HD 2.08 1,842,054
Health Care Related HC 0.97 864,122
Investment Bank/Broker Firm IV 0.65 578,857
Office Equipment & Supplies OE 1.96 1,736,942
Personal Care PL 3.99 3,541,837
Real Estate Related RL 0.54 477,584
Repurchase Agreements RA 6.36 5,640,000
Retail RT 3.89 3,450,058
Services SV 5.94 5,269,673
Telecommunications-- Cellular & Wireless TC 7.34 6,514,847
Telecommunications-- Long Distance TL 2.56 2,268,980
Textile-- Apparel Manufacturing TA 2.30 2,044,000
================================================================================
100.00% $ 88,715,209
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
INVESCO International Funds, Inc.
April 30, 2000
UNAUDITED
INTERNATIONAL
EUROPEAN BLUE CHIP
FUND FUND
--------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 738,103,623 $ 58,499,885
================================================================================
At Value(a) $ 1,027,423,429 $ 63,608,639
Cash 0 279,533
Receivables:
Investment Securities Sold 13,559,970 554,569
Fund Shares Sold 4,844,041 160,999
Dividends and Interest 1,178,150 184,768
Prepaid Expenses and Other Assets 43,713 68,202
================================================================================
TOTAL ASSETS 1,047,049,303 64,856,710
================================================================================
LIABILITIES
Payables:
Custodian 398,372 0
Foreign Sub-Custodian (Cost $1,134,617
and $331,429, respectively) 1,164,065 333,802
Investment Securities Purchased 49,925,761 881,152
Fund Shares Repurchased 5,387,866 250,764
Depreciation on Forward Foreign Currency
Contracts 128,980 7,457
Accrued Distribution Expenses - Investor Class 186,828 12,009
Accrued Distribution Expenses - Class C 2,080 63
Accrued Expenses and Other Payables 160,492 17,407
================================================================================
TOTAL LIABILITIES 57,354,444 1,502,654
================================================================================
NET ASSETS AT VALUE $ 989,694,859 $ 63,354,056
================================================================================
NET ASSETS
Paid-in Capital(b) $ 611,484,242 $ 54,696,650
Accumulated Undistributed
(Distributions in Excess of) Net
Investment Loss (2,571,879) (411,701)
Accumulated Undistributed Net
Realized Gain on Investment
Securities and Foreign Currency
Transactions 91,643,662 4,001,488
Net Appreciation of Investment
Securities and Foreign Currency
Transactions 289,138,834 5,067,619
================================================================================
NET ASSETS AT VALUE, Applicable to
Shares Outstanding $ 989,694,859 $ 63,354,056
================================================================================
NET ASSETS AT VALUE:
Investor Class $ 986,388,479 $ 63,213,111
================================================================================
Class C $ 3,306,380 $ 140,945
================================================================================
<PAGE>
INTERNATIONAL
EUROPEAN BLUE CHIP
FUND FUND
--------------------------------------------------------------------------------
Shares Outstanding
Investor Class 37,981,651 5,426,040
Class C 127,601 12,106
NET ASSET VALUE, Offering and Redemption
Price per Share
Investor Class $ 25.97 $ 11.65
Class C $ 25.91 $ 11.64
================================================================================
(a)Investment securities at cost and value at April 30, 2000 include repurchase
agreements of $4,817,000 and $4,855,000 for European and International Blue
Chip Funds, respectively.
(b)The Fund has 1.5 billion authorized shares of common stock, par value $0.01
per share. Of such shares, 300 million have been allocated to European Fund
and 200 million to International Blue Chip Fund: 200 million to European Fund
- Investor Class and 100 million to European Fund - Class C; and 100 million
to International Blue Chip Fund - Investor Class and 100 million to
International Blue Chip Fund - Class C.
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
INVESCO International Funds, Inc.
April 30, 2000
UNAUDITED
LATIN AMERICAN PACIFIC
GROWTH BASIN
FUND FUND
--------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a) $ 28,709,393 $ 63,708,106
================================================================================
At Value(a) $ 26,913,310 $ 88,715,209
Cash 0 10,849
Foreign Currency (Cost $58,702 and
$1,274,244 respectively) 58,392 1,274,244
Receivables:
Investment Securities Sold 119,464 4,076,777
Fund Shares Sold 6,152 6,560
Dividends and Interest 114,869 73,507
Appreciation on Forward Foreign
Currency Contracts 0 46,799
Prepaid Expenses and Other Assets 89,768 34,829
================================================================================
TOTAL ASSETS 27,301,955 94,238,774
================================================================================
LIABILITIES
Payables:
Custodian 48,261 0
Investment Securities Purchased 0 586,551
Fund Shares Repurchased 46,902 1,288,750
Accrued Distribution Expenses - Investor Class 5,442 18,206
Accrued Distribution Expenses - Class C 1 1
Accrued Expenses and Other Payables 40,346 154,416
================================================================================
TOTAL LIABILITIES 140,952 2,047,924
================================================================================
NET ASSETS AT VALUE $ 27,161,003 $ 92,190,850
================================================================================
NET ASSETS
Paid-in Capital(b) $ 45,575,139 $ 85,890,722
Accumulated Undistributed
(Distributions in Excess of)
Net Investment Income (Loss) 56,352 (3,420,706)
Accumulated Undistributed Net
Realized Loss on Investment
Securities and Foreign Currency
Transactions (16,678,029) (15,284,451)
Net Appreciation (Depreciation) of
Investment Securities and Foreign
Currency Transactions (1,792,459) 25,005,285
================================================================================
NET ASSETS AT VALUE, Applicable to Shares
Outstanding $ 27,161,003 $ 92,190,850
================================================================================
NET ASSETS AT VALUE:
Investor Class $ 27,160,124 $ 92,189,104
================================================================================
Class C $ 879 $ 1,746
================================================================================
<PAGE>
LATIN AMERICAN PACIFIC
GROWTH BASIN
FUND FUND
--------------------------------------------------------------------------------
Shares Outstanding
Investor Class 2,719,790 8,995,397
Class C 88 171
NET ASSET VALUE, Offering and
Redemption Price per Share
Investor Class $ 9.99 $ 10.25
Class C $ 9.96 $ 10.21
================================================================================
(a)Investment securities at cost and value at April 30, 2000 includes a
repurchase agreement of $5,640,000 for Pacific Basin Fund.
(b)The Fund has 1.5 billion authorized shares of common stock, par value $0.01
per share. Of such shares, 200 million have been allocated to Latin American
Growth Fund and 200 million to Pacific Basin Fund: 100 million to each
Investor Class and 100 million to each Class C.
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
INVESCO International Funds, Inc.
SIX MONTHS ENDED APRIL 30, 2000
UNAUDITED
INTERNATIONAL
EUROPEAN BLUE CHIP
FUND FUND
--------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 2,142,325 $ 384,397
Dividends from Affiliated Investment
Companies 107,620 0
Interest 800,743 52,546
Foreign Taxes Withheld (267,324) (41,696)
================================================================================
TOTAL INCOME 2,783,364 395,247
================================================================================
EXPENSES
Investment Advisory Fees 2,828,854 219,913
Distribution Expenses
Investor Class 1,052,652 73,286
Class C 4,814 75
Transfer Agent Fees 949,245 211,964
Administrative Fees 194,694 18,195
Custodian Fees and Expenses 421,551 22,102
Directors' Fees and Expenses 21,052 5,717
Interest Expense 1,909 148
Professional Fees and Expenses 24,971 10,309
Registration Fees and Expenses - Investor Class 52,556 49,609
Reports to Shareholders 102,703 25,435
Other Expenses 23,668 2,224
================================================================================
TOTAL EXPENSES 5,678,669 638,977
Fees and Expenses Absorbed by Investment
Adviser 0 (31,394)
Fees and Expenses Paid Indirectly (355,527) (19,128)
================================================================================
NET EXPENSES 5,323,142 588,455
================================================================================
NET INVESTMENT LOSS (2,539,778) (193,208)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 109,705,250 4,981,927
Foreign Currency Transactions (13,040,782) (437,024)
================================================================================
Total Net Realized Gain 96,664,468 4,544,903
================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 180,934,375 542,412
Foreign Currency Transactions (38,291,657) (1,804,112)
================================================================================
Total Net Appreciation (Depreciation) 142,642,718 (1,261,700)
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 239,307,186 3,283,203
================================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 236,767,408 $ 3,089,995
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO International Funds, Inc.
SIX MONTHS ENDED APRIL 30, 2000
UNAUDITED
LATIN AMERICAN PACIFIC
GROWTH BASIN
FUND FUND
--------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 351,487 $ 353,035
Interest 15,078 64,537
Foreign Taxes Withheld (25,541) (137,472)
================================================================================
TOTAL INCOME 341,024 280,100
================================================================================
EXPENSES
Investment Advisory Fees 105,004 429,354
Distribution Expenses
Investor Class 35,001 143,118
Class C 2 2
Transfer Agent Fees 104,477 326,218
Administrative Fees 11,300 30,761
Custodian Fees and Expenses 39,213 106,098
Directors' Fees and Expenses 4,965 6,987
Interest Expense 158 24,983
Professional Fees and Expenses 25,912 14,348
Registration Fees and Expenses - Investor Class 18,398 47,898
Reports to Shareholders 27,097 43,835
Other Expenses 2,536 4,124
================================================================================
TOTAL EXPENSES 374,063 1,177,726
Fees and Expenses Absorbed by Investment
Adviser (58,307) (2)
Fees and Expenses Paid Indirectly (34,141) (82,644)
================================================================================
NET EXPENSES 281,615 1,095,080
================================================================================
NET INVESTMENT INCOME (LOSS) 59,409 (814,980)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities 941,294 10,823,201
Foreign Currency Transactions (1,042,436) 209,236
================================================================================
Total Net Realized Gain (Loss) (101,142) 11,032,437
================================================================================
Change in Net Appreciation (Depreciation) of:
Investment Securities 1,863,996 931,862
Foreign Currency Transactions 1,673,361 (1,393,894)
================================================================================
Total Net Appreciation (Depreciation) 3,537,357 (462,032)
================================================================================
NET GAIN ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 3,436,215 10,570,405
================================================================================
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,495,624 $ 9,755,425
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
European Fund
SIX MONTHS
ENDED YEAR ENDED
APRIL 30 OCTOBER 31
--------------------------------------------------------------------------------
2000 1999
UNAUDITED
OPERATIONS
Net Investment Loss $ (2,539,778) $ (3,056,849)
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 96,664,468 15,703,473
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions 142,642,718 68,996,802
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 236,767,408 81,643,426
================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
In Excess of Net Investment Income -
Investor Class 0 (189,864)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions -
Investor Class (13,208,955) (60,321,278)
================================================================================
TOTAL DISTRIBUTIONS (13,208,955) (60,511,142)
================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 641,963,782 2,188,396,810
Class C 5,032,273 --
Reinvestment of Distributions - Investor
Class 12,635,289 58,166,765
Net Assets Received from Acquisition of
European Small Company Fund (Note 3) -- 34,159,608
===============================================================================
659,631,344 2,280,723,183
Amounts Paid for Repurchases of Shares
Investor Class (438,262,819) (2,427,744,259)
Class C (1,489,096) --
================================================================================
(439,751,915) (2,427,744,259)
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 219,879,429 (147,021,076)
================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 443,437,882 (125,888,792)
NET ASSETS
Beginning of Period 546,256,977 672,145,769
================================================================================
End of Period (Including Accumulated
Undistributed (Distributions in Excess
of) Net Investment Loss of ($2,571,879)
and ($32,101), respectively) $ 989,694,859 $ 546,256,977
================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
European Fund (Continued)
SIX MONTHS
ENDED YEAR ENDED
APRIL 30 OCTOBER 31
--------------------------------------------------------------------------------
2000 1999
UNAUDITED
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 23,828,343 123,053,362
Class C 186,187 --
Shares Issued from Reinvestment of
Distributions - Investor Class 622,735 3,451,340
Shares Issued in Connection with Acquisition
of European Small Company Fund (Note 3) -- 2,004,619
================================================================================
24,637,265 128,509,321
Shares Repurchased
Investor Class (16,792,696) (136,336,597)
Class C (58,586) --
================================================================================
(16,851,282) (136,336,597)
================================================================================
NET INCREASE (DECREASE) IN FUND SHARES 7,785,983 (7,827,276)
================================================================================
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN ASSETS (CONTINUED)
International Blue Chip Fund
SIX MONTHS
ENDED YEAR ENDED
APRIL 30 OCTOBER 31
--------------------------------------------------------------------------------
2000 1999
UNAUDITED
OPERATIONS
Net Investment Income (Loss) $ (193,208) $ 84,832
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 4,544,903 805,411
Change in Net Appreciation (Depreciation)
of Investment Securities and Foreign
Currency Transactions (1,261,700) 2,355,065
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 3,089,995 3,245,308
================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income - Investor Class (244,809) (87,004)
In Excess of Net Investment Income -
Investor Class 0 (333)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions -
Investor Class (1,260,037) 0
================================================================================
TOTAL DISTRIBUTIONS (1,504,846) (87,337)
================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 28,673,317 78,226,684
Class C 143,539 --
Reinvestment of Distributions - Investor
Class 1,419,208 63,471
Net Assets Received from Acquisition of
International Growth Fund (Note 3) -- 25,686,580
================================================================================
30,236,064 103,976,735
Amounts Paid for Repurchases of Shares -
Investor Class (20,177,39) (61,711,713)
================================================================================
NET INCREASE IN NET ASSETS FROM FUND SHARE
TRANSACTIONS 10,058,665 42,265,022
================================================================================
TOTAL INCREASE IN NET ASSETS 11,643,814 45,422,993
NET ASSETS
Beginning of Period 51,710,242 6,287,249
================================================================================
End of Period(Including Accumulated
Undistributed (Distributions in Excess
of) Net Investment Income (Loss)
of ($411,701) and $26,316,
respectively) $ 63,354,056 $ 51,710,242
================================================================================
-----------------------------------------
<PAGE>
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 2,384,202 7,452,507
Class C 12,106 --
Shares Issued from Reinvestment of Distributions
Investor Class 123,332 5,677
Shares Issued in Connection with Acquisition
of International Growth Fund (Note 3) -- 2,370,352
================================================================================
2,519,640 9,828,536
Shares Repurchased - Investor Class (1,686,663) (5,850,884)
================================================================================
NET INCREASE IN FUND SHARES 832,977 3,977,652
================================================================================
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Latin American Growth Fund
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
APRIL 30 OCTOBER 31 JULY 31
------------------------------------------------------------------------------------------------
2000 1999 1999
UNAUDITED (Note 1)
<S> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ 59,409 $ (54,755) $ 122,404
Net Realized Loss on Investment Securities
and Foreign Currency Transactions (101,142) (1,288,135) (10,919,242)
Change in Net Appreciation of Investment
Securities and Foreign Currency Transactions 3,537,357 1,675,121 1,184,305
================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 3,495,624 332,231 (9,612,533)
================================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 0 (60,137)
In Excess of Net Investment Income -
Investor Class 0 (50,504) 0
In Excess of Net Realized Gain on
Investment Securities and Foreign Currency
Transactions - Investor Class 0 0 (324,757)
================================================================================================
TOTAL DISTRIBUTIONS 0 (50,504) (384,894)
================================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 14,324,593 1,785,520 38,298,451
Class C 1,000 -- --
Reinvestment of Distributions - Investor Class 0 49,592 377,451
================================================================================================
14,325,593 1,835,112 38,675,902
Amounts Paid for Repurchases of Shares -
Investor Class (12,216,922) (4,128,104) (39,835,797)
================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 2,108,671 (2,292,992) (1,159,895)
================================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 5,604,295 (2,011,265) (11,157,322)
NET ASSETS
Beginning of Period 21,556,708 23,567,973 34,725,295
================================================================================================
End of Period (Including Accumulated
Undistributed (Distributions in Excess of)
Net Investment Income (Loss) of $56,352,
($3,057) and $21,585, respectively) $ 27,161,003 $ 21,556,708 $ 23,567,973
================================================================================================
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Latin American Growth Fund (Continued)
SIX MONTHS PERIOD YEAR
ENDED ENDED ENDED
APRIL 30 OCTOBER 31 JULY 31
------------------------------------------------------------------------------------------------
2000 1999 1999
UNAUDITED (Note 1)
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 1,301,671 217,990 4,926,437
Class C 88 -- --
Shares Issued from Reinvestment of
Distributions Investor Class 0 5,904 49,594
================================================================================================
1,301,759 223,894 4,976,031
Shares Repurchased - Investor Class (1,147,994) (510,974) (5,228,033)
================================================================================================
NET INCREASE (DECREASE) IN FUND SHARES 153,765 (287,080) (252,002)
================================================================================================
</TABLE>
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Pacific Basin Fund
SIX MONTHS YEAR
ENDED ENDED
APRIL 30 OCTOBER 31
--------------------------------------------------------------------------------
2000 1999
UNAUDITED
OPERATIONS
Net Investment Loss $ (814,980) $ (390,746)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 11,032,437 8,002,083
Change in Net Appreciation (Depreciation)
of Investment Securities and Foreign
Currency Transactions (462,032) 23,947,997
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS 9,755,425 31,559,334
================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income - Investor Class (2,810,196) 0
In Excess of Net Investment Income -
Investor Class 0 (336,731)
================================================================================
TOTAL DISTRIBUTIONS (2,810,196) (336,731)
================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 85,680,049 492,941,043
Class C 1,874 --
Reinvestment of Distributions -
Investor Class 2,736,400 318,350
Net Assets Received from Acquisition of
Asian Growth Fund (Note 3) -- 27,266,407
================================================================================
88,418,323 520,525,800
Amounts Paid for Repurchases of Shares -
Investor Class (105,918,408) (494,071,137)
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS (17,500,085) 26,454,663
================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS (10,554,856) 57,677,266
NET ASSETS
Beginning of Period 102,745,706 45,068,440
================================================================================
End of Period(Including Accumulated
Undistributed (Distributions in Excess
of) Net Investment Loss of ($3,420,706)
and $204,470, respectively) $ 92,190,850 $ 102,745,706
================================================================================
----------------------------------------
FUND SHARE TRANSACTIONS
Shares Sold
Investor Class 7,696,271 65,945,648
Class C 171 --
Shares Issued from Reinvestment of
Distributions - Investor Class 221,930 44,813
Shares Issued in Connection with
Acquisition of Asian Growth Fund (Note 3) -- 3,260,838
================================================================================
7,918,372 69,251,299
Shares Repurchased - Investor Class (9,422,282) (65,485,467)
================================================================================
NET INCREASE (DECREASE) IN FUND SHARES (1,503,910) 3,765,832
================================================================================
See Notes to Financial Statements
<PAGE>
INVESCO Notes to financial statements - INVESCO International Funds, Inc.
UNAUDITED
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"). Effective June 1, 2000, International Blue Chip Fund's name will
change to International Blue Chip Value Fund. 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. The Fund is registered under
the Investment Company Act of 1940 (the "Act") as a diversified, open-end
management investment company.
Effective February 15, 2000, each Fund offered an additional class of shares,
referred to as Class C shares. Investor Class and Class C shares are subject to
an annual distribution fee to a maximum of 0.25% and 1.00%, respectively, of the
Fund's annual average net assets attributable to each Class' shares. Income,
expenses (other than those attributable to a specific class) and gains and
losses are allocated daily to each class of shares based on the relative
proportion of net assets represented by such class. Operating expenses directly
attributable to a specific class are charged against operations of that class.
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 fiscal year-end changed from July
31 to October 31.
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 Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
A. SECURITY VALUATION -- 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. Eastern time) in the
market where such securities are primarily traded. If last sales prices are not
available, securities are valued at the highest closing bid prices at the close
of the regular trading day and obtained from one or more dealers making a market
for such securities or by a pricing service approved by the Fund's board of
directors.
<PAGE>
Investments in shares of investment companies are valued at the net asset value
of the respective mutual fund as calculated each day.
If market quotations or pricing service valuations are not readily available,
securities are valued at fair value as determined in good faith under procedures
established by the Fund's board of directors. Restricted securities are valued
in accordance with procedures established by the Fund's board of directors.
Short-term securities are stated at amortized cost (which approximates market
value) if maturity is 60 days or less at the time of purchase, or market value
if maturity is greater than 60 days.
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation.
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.
<PAGE>
The Fund's use of short-term forward foreign currency contracts may subject it
to certain risks as a result of unanticipated movements in foreign exchange
rates. The Fund does not hold short-term forward foreign currency contracts for
trading purposes. The Fund may hold foreign currency in anticipation of settling
foreign security transactions and not for investment purposes.
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 a 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 a Fund to sell a security at a fair price and may substantially delay the
sale of the security which a 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
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.
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.
<PAGE>
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 accounting principles generally accepted in
the United States. These differences are primarily due to differing treatments
for foreign currency transactions, nontaxable dividends, net operating losses
and expired capital loss carryforwards.
F. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund enters into short-term forward
foreign currency contracts in connection with planned purchases or sales of
securities as a hedge against fluctuations in foreign exchange rates pending the
settlement of transactions in foreign securities. A forward foreign currency
contract is an agreement between contracting parties to exchange an amount of
currency at some future time at an agreed upon rate. These contracts are
marked-to-market daily and the related appreciation or depreciation of the
contracts is presented in the Statement of Assets and Liabilities. Any realized
gain or loss incurred by the Fund upon the sale of securities is included in the
Statement of Operations.
G. EXPENSES -- Each Fund or Class bears expenses incurred specifically on its
behalf and, in addition, each Fund or Class bears a portion of general expenses,
based on the relative net assets of each Fund or Class.
Under an agreement between each Fund and the Fund's Custodian, agreed upon
Custodian Fees and Expenses are reduced by credits granted by the Custodian from
any temporarily uninvested cash. Such credits are included in Fees and Expenses
Paid Indirectly in the Statement of Operations.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the 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
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$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
---------------------------------------------------------------------------------------------
European Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Pacific Basin Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
AVERAGE NET ASSETS
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$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 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Latin American
Growth Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
</TABLE>
<PAGE>
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 of Investor Class
shares. A master distribution plan and agreement pursuant to Rule 12b-1 of the
Act provides for financing the distribution and shareholder servicing of Class C
shares up to a maximum of 1.00% per annum of average daily net assets. For the
six months/period ended April 30, 2000, amounts paid to the Distributor were as
follows:
INVESTOR CLASS
FUND CLASS C
--------------------------------------------------------------
European Fund $ 979,123 $ 2,734
International Blue Chip Fund 71,901 12
Latin American Growth Fund 34,009 1
Pacific Basin Fund 146,121 1
IFG receives a transfer agent fee from each Class 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. Effective June 1, 2000, each Class will pay an annual rate of $22.50
per shareholder account, or, where applicable, per participant in an omnibus
account, per year.
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
0.045% of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
IFG has voluntarily agreed to absorb certain fees and expenses incurred by
Pacific Basin Fund for the six months ended April 30, 2000. IFG and IGAM have
voluntarily agreed to absorb certain fees and expenses incurred by International
Blue Chip Fund for the six months ended April 30, 2000. IFG and IAM have
voluntarily agreed to absorb certain fees and expenses incurred by Latin
American Growth Fund for the six months ended April 30, 2000.
<PAGE>
A 2% redemption fee is retained by European - Investor Class, International Blue
Chip - Investor Class, Latin American Growth - Investor Class and Pacific Basin
- Investor Class 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 six months ended April 30, 2000 were $541,010, $18,472,
$49,310 and $70,945, respectively.
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.
<PAGE>
NOTE 4 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months ended
April 30, 2000, the aggregate cost of purchases and proceeds from sales of
investment securities (excluding all U.S. Government securities and short-term
securities) were as follows:
FUND PURCHASES SALES
--------------------------------------------------------------------------------
European Fund $ 517,321,081 $ 361,196,866
International Blue Chip Fund 30,160,281 24,672,893
Latin American Growth Fund 7,371,581 4,921,222
Pacific Basin Fund 46,652,200 71,511,415
There were no purchases or sales of U.S. Government securities.
NOTE 5 -- APPRECIATION AND DEPRECIATION. At April 30, 2000, 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 APPRECIATION
FUND APPRECIATION DEPRECIATION DEPRECIATION)
--------------------------------------------------------------------------------
European Fund $ 333,487,511 $ 45,555,754 $ 287,931,757
International Blue Chip Fund 9,072,741 4,178,906 4,893,835
Latin American Growth Fund 4,705,934 6,724,950 (2,019,016)
Pacific Basin Fund 28,258,493 3,556,848 24,701,645
NOTE 6 -- TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. 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 six months ended April 30, 2000, 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 $ 8,606 $ 17,767 $ 60,416
International Blue Chip Fund 662 5,464 14,304
Latin American Growth Fund 315 0 3,314
Pacific Basin Fund 1,191 12,358 28,329
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 the INVESCO Funds. The
deferred amounts may be invested in the shares of any of the INVESCO Funds,
excluding the INVESCO Variable Investment Funds.
An affiliated company represents ownership by a Fund of at least 5% of the
voting securities of the issuer during the period, as defined in the Act. A
summary of the transactions during the six months ended April 30, 2000, in which
the issuer was an affiliate of the Fund, is as follows:
<PAGE>
<TABLE>
<CAPTION>
REALIZED
GAIN ON
PURCHASES SALES
----------------------------- INVESTMENT VALUE AT
AFFILIATE SHARES COST SHARES COST SECURITIES 4/30/2000
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
European Fund
Nokia Oyj 365,000 $ 33,306,617 201,400 $8,304,279 $445,369 $54,259,860
</TABLE>
Dividend income in the amount of $194,080 was received along with 600,000
additional shares from stock splits from Nokia Oyj during the six months ended
April 30, 2000.
NOTE 7 -- INTERFUND LENDING. Each Fund is party to an interfund lending
agreement between each Fund and other INVESCO sponsored mutual funds, which
permit it to borrow or lend cash, at rates beneficial to both the borrowing and
lending funds. Loans totaling 10% or more of a borrowing Fund's total assets are
collaterized at 102% of the value of the loan; loans of less than 10% are
unsecured. Pursuant to each Fund's prospectus, each Fund may borrow up to 33
1/3% of its total assets for temporary or emergency purposes. During the six
months ended April 30, 2000, European and Pacific Basin Funds borrowed cash at a
weighted average rate of 5.93% - 6.05%. European Fund lent cash at a weighted
average of 6.35%. There were no borrowings outstanding at April 30, 2000.
NOTE 8 -- 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 April
30, 2000, there were no such borrowings.
NOTE 9 -- CONTINGENT DEFERRED SALES CHARGE ("CDSC"). A 1.00% CDSC is charged by
each Fund's Class C shares on redemptions or exchanges of shares held thirteen
months or less (other than shares acquired through reinvestment of dividends or
other distributions). The CDSC is paid by the redeeming shareholder and
therefore, it is not an expense of the Fund. For the period ended April 30,
2000, the Distributor received an insignificant amount of CDSC from shareholder
redemptions for Internaional Blue Chip Fund - Class C, Latin American Growth
Fund - Class C and Pacific Basin Fund - Class C. The Distributor received $579
from European Fund - Class C.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
European Fund - Investor Class
(For a Fund Share Outstanding Throughout Each Period)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
---------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value--
Beginning of Period $ 18.01 $ 17.62 $ 17.34 $ 15.85 $ 14.09 $ 12.95
=============================================================================================
INCOME FROM INVESTMENT
OPERATIONS(a)
Net Investment Income (Loss) (0.07) (0.09) 0.04 0.07 0.05 0.23
Net Gains on Securities
(Both Realized and Unrealized) 8.47 2.18 3.58 2.63 3.00 1.12
=============================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 8.40 2.09 3.62 2.70 3.05 1.35
=============================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment
Income 0.00 0.00 0.06 0.07 0.08 0.21
In Excess of Net Investment
Income (b) 0.00 0.01 0.00 0.00 0.00 0.00
Distributions from Capital Gains 0.44 1.69 3.28 1.14 1.21 0.00
=============================================================================================
TOTAL DISTRIBUTIONS 0.44 1.70 3.34 1.21 1.29 0.21
=============================================================================================
Net Asset Value--
End of Period $ 25.97 $ 18.01 $ 17.62 $ 17.34 $ 15.85 $ 14.09
=============================================================================================
TOTAL RETURN 47.26%(c)(d) 12.64%(c) 24.92% 18.07% 23.47% 10.42%
RATIOS
Net Assets --
End of Period
($000 Omitted) $986,388 $546,257 $672,146 $324,819 $300,588 $224,200
Ratio of Expenses to Average
Net Assets(e) 0.67%(d) 1.56% 1.34% 1.25% 1.36% 1.40%
Ratio of Net Investment
Income (Loss) to Average
Net Assets (0.30%)(d) (0.48%) 0.24% 0.33% 0.37% 1.26%
Portfolio Turnover Rate 45%(d) 90% 102% 90% 91% 96%
</TABLE>
(a) The per share information was computed using average shares for the year
ended October 31, 1999.
(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) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, which is before any expense
offset arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
European Fund - Class C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
APRIL 30
--------------------------------------------------------------------------------
2000(a)
UNAUDITED
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 28.72
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (0.03)
Net Losses on Securities
(Both Realized and Unrealized) (2.78)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (2.81)
================================================================================
Net Asset Value-- End of Period $ 25.91
================================================================================
TOTAL RETURN(b) (9.78%)(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 3,306
Ratio of Expenses to Average Net Assets(d) 0.42%(c)
Ratio of Net Investment Loss to Average Net Assets (0.17%)(c)
Portfolio Turnover Rate 45%(e)
(a) From February 15, 2000, since inception of Class C, to April 30, 2000.
(b) The applicable CDSC 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 Class, which is before any expense
offset arrangements.
(e) Portfolio Turnover is calculated at the Fund level, and therefore represents
the six months ended April 30, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
International Blue Chip Fund - Investor Class
(For a Fund Share Outstanding Throughout Each Period)
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
APRIL 30 OCTOBER 31 OCTOBER 31
--------------------------------------------------------------------------------
2000 1999 1998(a)
UNAUDITED
PER SHARE DATA
Net Asset Value--
Beginning of Period $ 11.23 $ 10.02 $ 10.00
================================================================================
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income (Loss) (0.03) 0.02 0.00
Net Gains on Securities
(Both Realized and Unrealized) 0.78 1.21 0.02
================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.75 1.23 0.02
================================================================================
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.05 0.02 0.00
Distributions from Capital Gains 0.28 0.00 0.00
================================================================================
TOTAL DISTRIBUTIONS 0.33 0.02 0.00
================================================================================
Net Asset Value-- End of Period $ 11.65 $ 11.23 $ 10.02
================================================================================
TOTAL RETURN 7.17%(b)(c) 11.77%(b) 0.20%(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 63,213 $ 51,710 $ 6,287
Ratio of Expenses to Average Net
Assets(d)(e) 1.03%(c) 2.09% 0.90%(f)
Ratio of Net Investment Income (Loss)
to Average Net Assets(e) (0.33%)(c) 0.30% 6.16%(f)
Portfolio Turnover Rate 44%(c) 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 Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements.
(e) Various expenses of the Class were voluntarily absorbed by IFG and IGAM for
the six months ended April 31, 2000, and 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 1.08% and 2.56%,
respectively, and ratio of net investment loss to average net assets would
have been (0.38%)and (0.17%), respectively.
(f) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
International Blue Chip Fund - Class C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
APRIL 30
--------------------------------------------------------------------------------
2000(a)
UNAUDITED
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 12.06
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.01
Net Losses on Securities (Both Realized and Unrealized) (0.43)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (0.42)
================================================================================
Net Asset Value-- End of Period $ 11.64
================================================================================
TOTAL RETURN(b) (3.84%)(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 141
Ratio of Expenses to Average Net Assets(d) 0.55%(c)
Ratio of Net Investment Income to Average Net Assets 0.21%(c)
Portfolio Turnover Rate 44%(e)
(a) From February 15, 2000, since inception of Class C, to April 30, 2000.
(b) The applicable CDSC 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 Class, which is before any expense
offset arrangements.
(e) Portfolio Turnover is calculated at the Fund level, and therefore
represents the six months ended April 30, 2000.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Latin American Growth Fund - Investor Class
(For a Fund Share Outstanding Throughout Each Period)
SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED
APRIL 30 OCTOBER 31 YEAR ENDED JULY 31 JULY 31
---------------------------------------------------------------------------------------------------------
2000 1999(a) 1999 1998 1997 1996 1995(b)
UNAUDITED
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value--
Beginning of Period $ 8.40 $ 8.26 $ 11.18 $ 18.37 $ 12.86 $ 11.69 $ 10.00
=========================================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Income
(Loss)(d) 0.02 (0.02) 0.04 0.00 0.13 0.08 0.02
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) 1.57 0.18 (2.83) (5.41) 5.88 1.62 1.69
=========================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 1.59 0.16 (2.79) (5.41) 6.01 1.70 1.71
=========================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income(e) 0.00 0.02 0.02 0.00 0.14 0.09 0.02
Distributions from
Capital Gains 0.00 0.00 0.00 1.02 0.36 0.44 0.00
In Excess of Capital Gains 0.00 0.00 0.11 0.76 0.00 0.00 0.00
=========================================================================================================
TOTAL DISTRIBUTIONS 0.00 0.02 0.13 1.78 0.50 0.53 0.02
=========================================================================================================
Net Asset Value--
End of Period $ 9.99 $ 8.40 $ 8.26 $ 11.18 $ 18.37 $ 12.86 $ 11.69
=========================================================================================================
TOTAL RETURN (f) 18.93%(g) 1.93%(g) (24.87%) (30.64%) 8.06% 15.27% 17.09%(g)
RATIOS
Net Assets --
End of Period
($000 Omitted) $ 27,160 $ 21,557 $ 23,568 $ 34,725 $130,272 $ 32,064 $ 7,423
Ratio of Expenses to
Average Net Assets(h) 1.12%(g) 2.20%(j) 2.17%(i) 1.99%(i) 76%(i) 2.14%(i) 2.00%(j)
Ratio of Net Investment
Income (Loss) to
Average Net Assets(h) 0.21%(g) (1.01%)(j) 0.52% 0.00% 1.35% 1.26% 79%(j)
Portfolio Turnover Rate 18.53%(g) 2%(g) 90% 33% 72% 29% 30%(g)
</TABLE>
(a) From August 1, 1999 to October 31, 1999, the Fund's current fiscal year-
end.
(b) From February 15, 1995, commencement of investment operations, to July 31,
1995.
(c) The per share information was computed using average shares for the period
ended October 31, 1999.
<PAGE>
(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 Class were voluntarily absorbed by IFG and IAM for
the six months ended April 30, 2000, 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 1.33%, 3.59% (annualized), 3.39% and 4.49%
(annualized), respectively, and ratio of net investment income (loss) to
average net assets would have been 0.00%, and (2.40%), (0.70%) and
(1.70%) (annualized), repectively.
(i) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, where applicable, which is before any expense offset
arrangements.
(j) Annualized
<PAGE>
FINANCIAL HIGHLIGHTS
Latin American Growth Fund - Class C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
APRIL 30
--------------------------------------------------------------------------------
2000(a)
UNAUDITED
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 11.34
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.01
Net Losses on Securities (Both Realized and Unrealized) (1.39)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (1.38)
================================================================================
Net Asset Value-- End of Period $ 9.96
================================================================================
TOTAL RETURN(b) (12.17%)(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 1
Ratio of Expenses to Average Net Assets(d)(e) 0.70%(c)
Ratio of Net Investment Income to Average Net Assets(e) 0.05%(c)
Portfolio Turnover Rate 19%(c)(f)
(a) From February 15, 2000, since inception of Class C, to April 30, 2000.
(b) The applicable CDSC 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 Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(e) Various expenses of the Class were voluntarily absorbed by IFG and IAM for
the period ended April 30, 2000. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 0.86% and
ratio of net investment loss to average net assets would have been (0.11%).
(f) Portfolio Turnover is calculated at the Fund level, and therefore
represents the six months ended April 30, 2000.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Pacific Basin Fund - Investor Class
(For a Fund Share Outstanding Throughout Each Period)
SIX MONTHS
ENDED
APRIL 30 YEAR ENDED OCTOBER 31
-------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value--
Beginning of Period $ 9.79 $ 6.69 $ 9.74 $ 14.11 $ 13.83 $ 17.07
=======================================================================================================
INCOME FROM INVESTMENT
OPERATIONS(a)
Net Investment Income (Loss) (0.13) (0.05) 0.07 (0.09) (0.02) 0.06
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) 0.86 3.20 (2.80) (3.45) 0.51 (1.45)
=======================================================================================================
TOTAL FROM INVESTMENT
OPERATIONS 0.73 3.15 (2.73) (3.54) 0.49 (1.39)
=======================================================================================================
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.27 0.00 0.12 0.00 0.03 0.06
In Excess of Net Investment
Income(b) 0.00 0.05 0.00 0.00 0.00 0.00
Distributions from Capital Gains 0.00 0.00 0.00 0.83 0.18 1.79
In Excess of Capital Gains 0.00 0.00 0.20 0.00 0.00 0.00
=======================================================================================================
TOTAL DISTRIBUTIONS 0.27 0.05 0.32 0.83 0.21 1.85
=======================================================================================================
Net Asset Value--
End of Period $ 10.25 $ 9.79 $ 6.69 $ 9.74 $ 14.11 $ 13.83
=======================================================================================================
TOTAL RETURN 6.95%(c)(d) 47.43%(c) (28.68%) (26.65%) 3.55% (8.31%)
RATIOS
Net Assets -- End of
Period ($000 Omitted) $ 92,189 $ 102,746 $ 45,070 $ 63,943 $ 149,870 $ 154,374
Ratio of Expenses to
Average Net Assets(e)(f) 1.02%(d) 2.12% 2.07% 1.72% 1.60% 1.52%
Ratio of Net Investment
Income (Loss) to Average
Net Assets(e) (0.71%)(d) (0.55%) 0.25% (0.44%) (0.04%) 0.37%
Portfolio Turnover Rate 42%(d) 176% 114% 86% 70% 56%
</TABLE>
(a) The per share information was computed using average shares for the year
ended October 31, 1999.
(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.
<PAGE>
(d) Based on operations for the period shown and, accordingly, are not
representative of a full year.
(e) Various expenses of the Class were voluntarily absorbed by IFG and IAM for
the six months ended April 30, 2000, and 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 1.02%, 2.53% and 2.56%,
respectively, and ratio of net investment loss to average net assets would
have been (0.71%), (0.96%) and (0.24%), respectively.
(f) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements.
<PAGE>
FINANCIAL HIGHLIGHTS
Pacific Basin Fund - Class C
(For a Fund Share Outstanding Throughout Each Period)
PERIOD
ENDED
APRIL 30
--------------------------------------------------------------------------------
2000(a)
UNAUDITED
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 11.94
================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Loss (0.03)
Net Losses on Securities (Both Realized and Unrealized) (1.70)
================================================================================
TOTAL FROM INVESTMENT OPERATIONS (1.73)
================================================================================
Net Asset Value-- End of Period $ 10.21
================================================================================
TOTAL RETURN(b) (14.49%)(c)
RATIOS
Net Assets-- End of Period ($000 Omitted) $ 2
Ratio of Expenses to Average Net Assets(d)(e) 0.77%(c)
Ratio of Net Investment Loss to Average Net Assets(e) (0.46%)(c)
Portfolio Turnover Rate 42%(f)
(a) From February 15, 2000, since inception of Class C, to April 30, 2000.
(b) The applicable CDSC 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 Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
(e) Various expenses of the Class were voluntarily absorbed by IFG and IAM for
the period ended April 30, 2000. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 0.97%, and
ratio of net investment loss to average net assets would have been (0.71%).
(f) Portfolio Turnover is calculated at the Fund level, and therefore represents
the six months ended April 30, 2000.
<PAGE>
INVESCO FAMILY OF FUNDS
Investor Class 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 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
--------------------------------------------------------------------------------
COMBINATION STOCK & BOND
Equity Income 15 FIIIX EquityInc
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
Real Estate Opportunity 42 IVSRX Realty
Technology 55 FTCHX Tech
Telecommunications 39 ISWCX Telecom
Utilities 58 FSTUX Util
--------------------------------------------------------------------------------
INTERNATIONAL
International Blue Chip Value 09 IIBCX ItlBlChp
Pacific Basin 54 FPBSX PcBas
European 56 FEURX Europ
Latin American Growth 34 IVSLX LtnAmerGr
--------------------------------------------------------------------------------
MONEY MARKET
U.S. Government Money 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money 40 FFRXX InvTaxFree
Treasurer's Money Market Reserve 96 IMRXX INVESCOMMR
Treasurer's Tax-Exempt Reserve 95 ITTXX INVESCOTTE
FOR MORE INFORMATION ABOUT ANY OF THE INVESCO FUNDS, INCLUDING MANAGEMENT FEES,
RISKS, AND EXPENSES, PLEASE VISIT OUR WEB SITE OR CALL US AT 1-800-525-8085
FOR A PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
<PAGE>
[INVESCO ICON] INVESCO FUNDS
YOU SHOULD
KNOW WHAT
INVESCO KNOWS(R)
We're easy to stay in touch with:
Investor Services: 1-800-525-8085
Your Personal Account Line: 1-800-424-8085
On the World Wide Web: www.invescofunds.com
INVESCO Distributors, Inc.,(SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied
by a current prospectus.
SINT 9069 6/00
