SEMIANNUAL REPORT
January 31, 1995
INVESCO MULTIPLE ASSET FUNDS, INC.
No-load mutual funds seeking
capital appreciation and current income
INVESCO FUNDS
Market Overview March 1995
Perversely, to the securities markets, strong economic growth can be viewed as
a negative, a harbinger of inflation. Some analysts are worried about the
figures for late 1994: Gross domestic product (GDP) rose 4.5% for the fourth
quarter. That was the sixth straight quarter in which the GDP growth rate was
2.7% or better, and current indications are that growth will be at least 3% in
the current quarter. Corporate earnings growth continued strong throughout the
fourth quarter for industries as diverse as airlines, entertainment, and
packaging. And 1994 showed the biggest leap in corporate profits for at least
two decades.
We are finally seeing signs that economic growth is slowing, though. For
instance, the unemployment rate rose in January after months of improvement.
Higher unemployment, while bad for the affected individuals and their families,
does ease the upward pressure for wages and expanded employee benefits. In fact,
a major employer cost -- health care -- actually decreased about 1% last year.
Another encouraging sign, relative to inflation, is industrial production. The
output at U.S. factories and mines grew at just 0.4% in January, half the rate
of each of the two preceding months.
There are still legitimate concerns regarding inflation. The most widely used
index, the CPI, rose 0.3% in January. As a result, the next few months may see
additional modest increases in the Fed Funds rate.
By increasing short-term rates, the Federal Reserve is attempting a "soft
landing" -- that is, to moderate the current economic expansion before inflation
heats up. Over the past twelve months, the Fed has raised short-term rates by a
total of 3.00%.
While inflation is not likely to approach the eight percent-plus levels seen
in the early 1980s, it will probably be higher than the 2.5% to 3% range seen
during recent years. The INVESCO economic forecast calls for steadily increasing
inflation. We anticipate that consumer prices will rise as much as 4.0%
year-over-year by the fourth quarter of 1995; that compares to an increase of
just 2.7% in 1993 and 2.8% for 1994.
In 1994, the stock market performance reflected concern that the Fed would
overshoot its goal, bringing growth lower than the 2.5% target -- or worse,
induce a recession. Now, however, investors appear to be gaining confidence that
interest rates are stabilizing. In light of that positive factor, the stock
market may well continue its present advance. However, any interest rate or
inflation surprises, or a spate of disappointing corporate earnings reports,
could easily set off another correction.
On the international scene, the markets were jolted by two mid-winter events:
the losses in value of the Mexican peso against major currencies, and the
earthquake which hit Kobe, Japan. Both episodes resulted in negative ripples
throughout world securities exchanges. A lesser-noticed, but also important,
factor has been the weakening of the Hong Kong real estate market.
U.S. aid will assist in restoring confidence in the Mexican currency.
Increasing stability in that country, as the rebellion in the lower states comes
under control, should result in revived foreign investment. Meanwhile, the
immediate effects of the Kobe destruction have been negative. Longer-term,
however, massive government rebuilding programs may be expected to have a
positive effect throughout Japanese construction-related and capital equipment
industries.
INVESCO Balanced Fund #1
Balanced Fund Average Annualized
Total Return as of 1/31/95*
1 Year 6.80%
Since Inception (12/93) 9.71%
For the year ended 12/31/94, independent fund analyst Lipper ranked INVESCO
Balanced Fund #1 out of 152 balanced funds. (Lipper Analytical Services rankings
are based upon total return performance unadjusted for commissions. Of course,
past performance is not a guarantee of future results.)*
The line graph below illustrates the value of a $10,000 investment in INVESCO
Balanced Fund, plus reinvested dividends and capital gain distributions, for the
period from inception (12/93) through 1/31/95.*
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Balanced Fund to the value of a $10,000 investment in the
S&P 500 Index and Lehman Government/Corporate Bond Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for the period
from inception (12/93) through 1/31/95*
The chart and other total return figures cited reflect the fund's operating
expenses, but the indices do not have expenses, which would of course have
lowered their performance.
For the six-month period ended 1/31/95, Balanced Fund achieved a total return
of 6.96%. During the same period, the S&P 500 had a total return of 4.12%, while
the Lehman Government/Corporate Bond Index advanced just 0.79%. (Of course, past
performance is not a guarantee of future results.)*
Graph: Balanced Fund - Allocation by Value of Total Net Assets
This graph reflects the allocation of the Balanced Fund's portfolio as a
percentage of total net assets in cash and equivalents, government agency
securities, government bonds, corporate bonds, common stocks (including options)
and preferred stocks as of 1/31/94, 7/31/94 and 1/31/95.
Last year's stock market was extremely volatile, and a rotational pattern
emerged -- different sectors were winners and losers in rapid succession. The
chemical sector was among the year's leaders, however; for 1995, we believe
specialty chemicals in particular still have strong potential. Since last July,
we have added several new positions, including Lawter International. Also within
the basic materials sector, we purchased two mining stocks: Potash Corp
Saskatchewan and Sante Fe Pacific Gold.
As the threat of rampant inflation recedes, financial stocks are more
attractive. We have selectively added to our holdings in such areas as banking,
with PNC Bank; savings & loans, with Commercial Federal; and several insurance
companies, including Hilb, Rogal & Hamilton, Arthur J. Gallagher & Co; and three
others.
Government bonds continue to provide an important income component for the
portfolio. We are focusing on direct Treasury obligations, rather than
government agency issues. In particular, Treasury notes with maturities over
five years are presently enjoying price advances -- compared to last year's
whipsaw. The equity portion of the portfolio is managed by INVESCO Trust Company
vice president Brian Kelly. A Certified Public Accountant, Mr. Kelly earned an
MBA and JD from the University of Iowa; he holds a BA from the University of
Notre Dame. Before joining INVESCO in 1993, he served as a financial analyst
with the $7 billion pension and profit-sharing department of Sears, Roebuck.
Fixed-income investments are managed by INVESCO Senior Vice President Donovan
"Jerry" Paul. He began his investment career in 1976 with Century Life of
America, later serving as director of fixed-income research at Stein Roe &
Farnham. He holds an MBA from the University of Iowa and a BBA from the
University of Northern Iowa, and is a Chartered Financial Analyst.
INVESCO Multi-Asset Allocation Fund
Multi-Asset Allocation Fund Average Annualized
Total Return as of 1/31/95
One Year -3.45%
Since Inception (12/93) -2.30%
The line graph below illustrates the value of a $10,000 investment in INVESCO
Multi-Asset Allocation Fund, plus reinvested dividends and capital gain
distributions, for the period from inception (12/93) through 1/31/95.*
The chart and other total return figures cited reflect the fund's operating
expense, but the indices do not have expenses, which would of course lowered
their performance.
Graph: Multi-Asset Allocation Fund Total Return from inception (12/93 through
1/31/95*
This line graph represents a comparison of the value of a $10,000 investment
in INVESCO Multi-Asset Allocation Fund to the value of a $10,000 investment in
the S&P 500 Index and Lehman Government/Corporate Bond Index, assuming in each
case reinvestment of all dividends and capital gain distributions, for the
period from inception (12/93) through 1/31/95.
For the six-month period ended 1/31/95, Multi-Asset Allocation Fund had a
total return of -0.08%. During the same period, the Lehman Government/Corporate
Bond Index gained a slight 0.79%, while the S&P 500 had a total return of
positive 4.12%. The Russell 2000, which reflects smaller-cap stock performance,
advanced 2.00%. International stocks were the losers during this period: The
MSCI-EAFE had a total return of negative 5.51%. (Of course, past performance is
not a guarantee of future results.)*
The fund's results were compromised by underperformance among the
international stocks, as well as essentially flat results in the fixed-income
markets. Results from real estate-related investments were also disappointing,
due to the unexpectedly rapid increases in interest rates.
Graph: Multi-Asset Allocation Fund
Allocation by Value of Total Net Assets
This graph reflects the allocation of the Multi-Asset Allocation Fund's
portfolios as a percentage of total net assets in large cap stocks, small cap
stocks, fixed income securities, real estate securitties, foreign stocks and
cash and equivalents as of 7/31/94 and 1/31/95, as well as the maximum amounts
that may be invested in each of these asset classes.
As we noted above, the U.S. economy has maintained much of its momentum.
Accordingly, we decreased our cash and equivalent weighting over the past six
months, in favor of large- and small-capitalization domestic stocks. Large-cap
stocks now represent 32.6% of holdings, compared to 22.9% at 7/31/94. Small-cap
issues are at 9.8%, compared to 7.4% previously.
Two equity sectors have received particular focus. Given our belief that
interest rates have largely stabilized, we increased our weightings in several
finance-related industry groups, such as banking and insurance. Among the
former, new holdings include Chase Manhattan, Firstar Corp, West One Bancorp,
and Citicorp. Among the latter, we purchased Willis Corroon Group PLC, and
increased our holdings in AEGON NV ADR and NWNL Cos Sponsored ADR.
Consumer staples is another area of renewed interest, given the maturing
economic recoveries in the U.S. and Europe. Over the past few months, we have
added a number of food & beverage companies. These include such well-known,
well-capitalized firms as Anheuser-Busch Cos, ConAgra Inc, Nestle SA Sponsored
ADR Representing Registered Shares, and Unilever NV New York Shares.
We anticipate that the technology sector will be less volatile in 1995, while
still offering strong potential for price advances. New holdings in this area
include IBM (computer systems), Microsoft Corp (computer software), and
Matsushita Electric Industrial ADR (electronics).
Bob Slotpole is the lead portfolio manager for the fund. He began his
investment career in 1975. Prior to joining INVESCO in 1993, he was employed by
First Boston. Mr. Slotpole earned an MBA from Stanford University, and a BS from
the State University of New York at Buffalo.
Mr. Slotpole determines overall asset class allocations, manages the
stock selection methodology, and monitors ongoing implementation and risk-
control. Individual asset class specialists are then responsible for
securities selection for their assigned share of the allocation, within the
context of specific parameters established by Mr. Slotpole.
*Total return assumes reinvestment of dividends and capital gain distributions.
Past performance is not a guarantee of future results. Investment return and
principal value will fluctuate so that, when redeemed, an investor's shares may
be worth more or less than when originally purchased. The S&P 500 is an
unmanaged index of common stocks considered representative of the broad stock
market. The Russell 2000 is an unmanaged index of common stocks considered
representative of the small and medium-cap market. The Lehman
Government/Corporate Bond Index is an unmanaged index of fixed-income securities
considered representative of the broad bond market. And the MSCI-EAFE is an
unmanaged, weighted average of stock performance in Europe, Australia, and the
Far East.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Ten Largest Common Stock Holdings
January 31, 1995
Description Value
BALANCED Fund
Lawter International $ 630,562
Hilb, Rogal & Hamilton 602,875
U S WEST 528,188
Gallagher (Arthur J) & Co 525,525
Allmerica Property & Casualty 431,750
Houston Industries 358,875
FLIR Systems 294,000
Pioneer Hi-Bred International 294,000
WLR Foods 234,000
Television Broadcasts 214,840
MULTI-ASSET ALLOCATION Fund
Mobil Corp $ 69,100
Royal Dutch Petroleum 5 Gldr Shrs 67,125
AT&T Corp 59,850
Baxter International 59,000
International Business Machines 57,700
Ashland Inc 52,200
Procter & Gamble 52,200
AEGON NV ADR 51,500
Merck & Co 48,300
Temple-Inland Inc 45,500
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Investment Securities
January 31, 1995
UNAUDITED
Shares or
Principal
Description Amount Value
----------- --------- ---------
BALANCED Fund
COMMON STOCKS 55.07%
AEROSPACE & DEFENSE 0.35%
Rockwell International 1,500 $ 56,438
--------------
AGRICULTURAL 1.83%
Pioneer Hi-Bred International 8,000 294,000
---------------
AUTOMOBILE RELATED 0.63%
OshKosh Truck Class B 9,000 101,250
---------------
BANKING 2.03%
Firstar Corp 5,000 137,500
PNC Bank 8,000 188,000
---------------
325,500
---------------
BROADCASTING 1.76%
King World Productions* 2,000 68,750
Television Broadcasts 60,000 214,840
---------------
283,590
---------------
BUILDING & CONSTRUCTION
RELATED 1.49%
Giant Cement Holding* 14,000 164,500
Louisiana Pacific Corp 1,500 39,562
Masco Corp 1,500 35,063
---------------
239,125
---------------
CHEMICALS 5.55%
Hauser Chemical Research* 10,500 52,500
Lawter International 53,100 630,562
Lyondell Petrochemical 5,000 110,625
Vigoro Corp 3,000 98,625
---------------
892,312
---------------
COMPUTER RELATED 0.71%
Apertus Technologies* 4,000 41,000
Standard Microsystems* 2,600 72,800
---------------
113,800
---------------
<PAGE>
CONTROL INSTRUMENTS 0.50%
DSP Technology* 15,000 80,625
---------------
COSMETICS & TOILETRIES 0.26%
INBRAND Corp* 3,500 42,000
---------------
DIVERSIFIED COMPANIES 0.52%
General Electric 1,000 51,500
Minnesota Mining & Manufacturing 200 10,475
Vista Resources* 1,000 20,750
---------------
82,725
---------------
ELECTRICAL EQUIPMENT 0.56%
California Amplifier* 15,000 90,000
---------------
ELECTRONICS 2.91%
Electromagnetic Sciences* 3,000 35,250
FLIR Systems* 21,000 294,000
Tech-Sym* 4,000 $88,000
Technitrol Inc 3,500 50,313
---------------
467,563
---------------
FOOD PRODUCTS & BEVERAGES 3.63%
Anheuser-Busch Cos 1,500 82,125
DEKALB Genetics Class B 7,500 211,875
McCormick & Co 2,500 54,687
WLR Foods 9,000 234,000
---------------
582,687
---------------
INSURANCE 12.41%
Allmerica Property & Casualty 22,000 431,750
Aon Corp 2,000 65,750
BW Blanch Holdings 4,000 84,000
EXEL Ltd 2,700 105,975
Gallagher (Arthur J) & Co 15,400 525,525
Hilb, Rogal & Hamilton 53,000 602,875
Home State Holdings* 2,500 36,250
PXRE Corp 2,000 49,000
Poe & Brown 3,000 61,500
SAFECO Corp 600 31,650
---------------
1,994,275
---------------
MANUFACTURING 0.19%
Standard Motor Products 1,500 30,000
---------------
MEDICAL RELATED - DRUGS 1.44%
Mallinckrodt Group 1,000 30,250
<PAGE>
Upjohn Co 6,000 201,750
---------------
232,000
---------------
MINING 1.32%
Potash Corp Saskatchewan 5,000 175,625
Santa Fe Pacific Gold* 3,600 36,450
---------------
212,075
---------------
OIL & GAS RELATED 2.96%
Burlington Resources 1,800 62,100
Occidental Petroleum 5,000 93,750
Panaco Inc* 10,000 40,000
Panhandle Eastern 4,000 84,000
Total Petroleum North America Ltd 4,000 45,000
Ultramar Corp 2,000 48,500
Yacimientos Petroliferos Fiscales SA
Sponsored ADR 5,000 103,125
---------------
476,475
---------------
PAPER & PAPER PRODUCTS 0.25%
MacMillan Bloedel 3,500 40,578
---------------
POLLUTION CONTROL SERVICES 0.24%
Handex Environmental Recovery* 5,000 38,750
---------------
PUBLISHING 0.33%
Sing Tao Holdings Ltd 38,000 23,455
T/SF Communications* 5,000 29,375
---------------
52,830
---------------
RETAIL 0.10%
Warehouse Auto Centers* 5,000 15,900
---------------
SAVINGS & LOAN 0.65%
Commercial Federal* 5,000 104,375
---------------
SCHOOLS 1.07%
ITT Educational Services* 15,000 $ 172,500
---------------
TELECOMMUNICATIONS 1.27%
AT&T Corp 3,000 149,625
General Communication Class A* 6,000 24,750
Lincoln Telecommunications 2,000 30,500
---------------
204,875
---------------
UTILITIES 10.11%
Central Maine Power 5,000 69,375
Commonwealth Energy Systems 4,000 160,000
<PAGE>
Houston Industries 9,000 358,875
IES Industries 1,000 27,125
MDU Resources Group 5,000 138,125
Niagara Mohawk Power 6,000 93,000
NYNEX Corp 1,000 39,500
Orange & Rockland Utilities 3,000 97,875
Sprint Corp 4,000 114,000
U S WEST 13,500 528,188
---------------
1,626,063
---------------
TOTAL COMMON STOCKS
(Cost $8,642,651) 8,852,311
---------------
PREFERRED STOCKS 0.42%
MINING 0.42%
Amax Gold, $3.750, Series B, Conv Pfd
(Cost $75,000) 1,500 67,125
---------------
FIXED INCOME SECURITIES 28.57%
US Government Obligations 21.45%
US Treasury Notes
7.875%, 11/15/2004 $150,000 152,672
7.750%, 11/30/1999 $300,000 302,250
7.375%, 11/15/1997 $750,000 750,000
7.250%, 11/30/1996 $300,000 300,000
6.500%, 9/30/1996 $750,000 741,796
6.500%, 8/15/1997 $1,000,000 980,000
5.875%, 2/15/2004 $250,000 221,796
---------------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $3,459,668) 3,448,514
---------------
US Government Obligations 7.12%
Federal Farm Credit Bank
6.650%, 5/1/1996 $500,000 494,882
Federal Home Loan Mortgage, Gold
Pool, 7.000%, 12/1/2008 $160,116 152,571
Student Loan Marketing Association
Notes, Series CQ, 4.570%,
3/7/2001 $500,000 497,605
---------------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $1,167,835) 1,145,058
---------------
TOTAL FIXED INCOME SECURITIES
(Cost $4,627,503) 4,593,572
---------------
<PAGE>
OPTIONS PURCHASED 0.02% S & P 100 INDEX OPTIONS 0.02% OEX Puts 2/16/1995 400*
(Cost $25,300) 100~ $3,125
---------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 15.92%
Repurchase Agreement with State Street Bank & Trust Co dated 1/31/1995 due
2/1/1995 at 5.700%, repurchased at $2,560,405 (Collateralized by US Treasury
Bonds due 4/15/1998 at 7.875%, value $2,613,739)
(Cost $2,560,000) $2,560,000 $2,560,000
---------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $15,930,454#) $16,076,133
===============
MULTI-ASSET ALLOCATION Fund
COMMON STOCKS 62.21%
ADVERTISING 0.29%
Heritage Media Class A* 400 $10,300
True North Communications 200 7,650
---------------
17,950
---------------
AEROSPACE & DEFENSE 1.06%
Lockheed Corp 300 21,600
Martin Marietta 200 8,925
McDonnell Douglas 300 15,000
Precision Castparts 500 11,187
Thiokol Corp 100 2,688
Watkins-Johnson Co 200 6,525
---------------
65,925
---------------
AUDIO/VIDEO RELATED 0.50%
Fuji Photo Film ADR 700 30,800
---------------
AUTOMOBILE RELATED 1.13%
Chrysler Corp 300 13,500
Eaton Corp 400 18,450
Ford Motor 1,500 37,875
---------------
69,825
---------------
BANKING 3.98%
ABN AMRO Holding NV
Sponsored ADR 200 6,848
Banco Central Hispanoamericano SA
ADR 1,200 13,500
Banco de Santander SA ADR 700 25,200
<PAGE>
Boatmen's Bancshares 800 24,400
CCB Financial 200 7,325
Centura Banks 400 9,450
Chase Manhattan 700 23,187
Cie de Suez Sponsored ADR 200 4,412
Citicorp 1,000 40,625
Deposit Guaranty 100 3,188
First Midwest Bancorp 300 7,350
Firstar Corp 155 $4,249
National Australia Bank
Sponsored ADR 900 35,662
NationsBank Corp 500 23,250
Norwest Corp 400 9,600
West One Bancorp 300 8,138
---------------
246,384
---------------
BROADCASTING 0.75%
CBS Inc 365 21,307
Capital Cities/ABC 300 24,900
---------------
46,207
---------------
BUILDING & CONSTRUCTION
RELATED 0.92%
BMC West* 450 5,850
Leslie Building Products* 500 825
Lowe's Cos 300 11,025
Oakwood Homes 500 11,250
Pioneer International Sponsored ADR 1,100 2,632
Sekisui House Ltd ADR 200 25,064
---------------
56,646
---------------
CHEMICALS 1.72%
AKZO NV Sponsored ADR 400 22,750
Cabot Corp 100 3,062
Hercules Inc 600 23,700
Hoechst AG ADR 100 10,609
Monsanto Co 400 29,400
Morton International 600 16,800
---------------
106,321
---------------
CLEANING PRODUCTS 0.94%
Colgate-Palmolive Co 100 6,287
Procter & Gamble 800 52,200
---------------
58,487
---------------
COMPUTER RELATED 2.87%
Ceridian Corp* 400 11,800
<PAGE>
Compaq Computer* 500 17,875
Computer Associates International 300 14,962
Computer Data Systems 300 2,981
FTP Software* 300 8,363
Hewlett-Packard Co 100 10,050
International Business Machines 800 57,700
Microsoft Corp* 700 41,562
PLATINUM technology* 200 4,150
Read-Rite Corp* 400 6,050
Recognition International* 300 2,438
---------------
177,931
---------------
CONTAINERS 0.86%
Sealed Air* 200 8,000
Temple-Inland Inc 1,000 45,500
---------------
53,500
---------------
CONTROL INSTRUMENTS 0.19%
Measurex Corp 500 11,625
---------------
COSMETICS & TOILETRIES 0.05%
Carter-Wallace Inc 300 3,225
---------------
DIVERSIFIED COMPANIES 2.99%
du Pont (E I) de Nemours 500 $26,625
General Electric 600 30,900
ITT Corp 400 35,800
Johnson Controls 200 9,500
Pacific Dunlop Ltd ADR 1,200 11,400
Philip Morris 500 29,812
Textron Inc 800 41,300
---------------
185,337
---------------
ELECTRICAL EQUIPMENT 0.18%
AMETEK Inc 400 6,450
Cherry Corp Class B* 300 4,800
---------------
11,250
---------------
ELECTRONICS 1.23%
Intel Corp 400 27,750
KEMET Corp* 200 5,700
Logicon Inc 100 3,075
Matsushita Electric Industrial ADR* 100 14,012
Motorola Inc 200 11,825
Philips Electronics NV New York Shrs 200 6,300
Symbol Technologies* 300 7,800
---------------
76,462
---------------
<PAGE>
ENGINES 0.23%
Briggs & Stratton 400 14,200
---------------
FINANCE RELATED 0.89%
AutoFinance Group* 800 8,300
CS Holding Sponsored ADR 100 2,061
Federal Home Loan Mortgage 300 16,800
Federal National Mortgage Association 300 21,450
GFC Financial 200 6,600
---------------
55,211
---------------
FOOD PRODUCTS & BEVERAGES 4.26%
Anheuser-Busch Cos 700 38,325
Bass PLC Sponsored ADR 400 6,450
Coca-Cola Co 200 10,500
Coca-Cola Enterprises 400 8,350
Compania Cervecerias Unidas SA
Sponsored ADR 100 2,250
ConAgra Inc 1,400 43,225
Coors (Adolph) Class B 400 6,700
Goodman Fielder Ltd Sponsored ADR 3,200 11,630
GoodMark Foods 300 4,125
Heineken NV ADR 100 14,926
Hudson Foods Class A 100 2,637
IBP inc 1,000 29,875
Kirin Brewery ADR 100 11,175
Nestle SA Sponsored ADR
Representing Registered Shrs 300 13,790
Ralcorp Holdings* 600 14,175
Unigate Inc ADR* 4,000 22,225
Unilever NV New York Shrs 200 23,600
---------------
263,958
---------------
FURNITURE 0.03%
Haverty Furniture 200 2,100
---------------
HEALTH CARE RELATED 0.45%
Hillhaven Corp* 400 $10,400
Lincare Holdings* 400 10,400
Universal Health Services Class B* 300 7,050
---------------
27,850
---------------
HOUSEHOLD APPLIANCES 0.27%
Premark International 400 16,450
---------------
INSURANCE 1.57%
AEGON NV ADR 800 51,500
American International Group 100 10,413
Fremont General 300 6,562
NWNL Cos 583 18,437
USLIFE Corp 200 7,075
<PAGE>
Willis Corroon Group PLC
Sponsored ADR 300 3,300
---------------
97,287
---------------
INVESTMENT BROKERS 0.36%
Bear Stearns 420 6,983
Merrill Lynch 300 10,987
Paine Webber Group 300 4,500
---------------
22,470
---------------
JEWELRY 0.09%
Tiffany & Co 200 5,825
---------------
MACHINERY 0.54%
AGCO Corp 150 4,406
Caterpillar Inc 400 20,600
Greenfield Industries 200 4,425
Pentair Inc 100 4,100
---------------
33,531
---------------
MEDICAL RELATED 2.14%
Advanced Technology Labs* 500 8,000
Baxter International 2,000 59,000
Bio-Rad Laboratories Class A* 500 13,375
Johnson & Johnson 700 40,688
Physicians Health Services Class A* 200 5,800
Vivra Inc* 200 6,050
---------------
132,913
---------------
MEDICAL RELATED - DRUGS 3.09%
Abbott Laboratories 700 24,763
Cardinal Health 200 9,225
CIBA-GEIGY AG Sponsored ADR 900 27,087
Macrochem Corp* 400 675
McKesson Corp 100 3,687
Merck & Co 1,200 48,300
Novo-Nordisk A/S ADR 600 13,800
Pfizer Inc 400 32,700
Schering-Plough Corp 400 31,400
---------------
191,637
---------------
METALS & MINING 0.19%
Barrick Gold 300 5,963
Carpenter Technology 100 5,512
---------------
11,475
---------------
OFFICE EQUIPMENT & SUPPLIES 0.64%
Alco Standard 400 25,700
<PAGE>
Reynolds & Reynolds Class A 600 $14,250
---------------
39,950
---------------
OIL & GAS RELATED 4.84%
Ashland Inc 1,600 52,200
BJ Services* 100 1,712
Chevron Corp 800 35,700
Coastal Corp 900 24,300
Enron Corp 300 8,737
Global Marine* 1,000 3,750
Mobil Corp 800 69,100
Royal Dutch Petroleum 5 Gldr Shrs 600 67,125
Shell Transport & Trading PLC
New York Shrs 400 26,750
Total Petroleum North America Ltd 200 2,250
USX-Delhi Group 500 4,625
Weatherford International* 400 3,600
---------------
299,849
---------------
PAPER & PAPER PRODUCTS 0.84%
Chesapeake Corp 300 8,850
International Paper 600 42,675
Rayonier Inc 25 719
---------------
52,244
---------------
POLLUTION CONTROL SERVICES 0.09%
Allwaste Inc* 1,100 5,775
PUBLISHING 0.31%
Media General Class A 200 5,600
Meredith Corp 300 13,875
---------------
19,475
---------------
REAL ESTATE RELATED 10.07%
Agree Realty 1,400 22,050
American Health Properties 900 18,450
Bay Apartment Communities* 800 15,900
Burnham Pacific Properties 900 11,587
CBL & Associates Properties 1,000 19,750
Crown American Realty Trust 1,200 16,350
Developers Diversified Realty 600 16,950
Duke Realty Investments 1,700 44,200
EastGroup Properties 1,100 19,250
Evans Withycombe Residential 1,300 26,000
Excel Realty Trust 1,500 25,125
General Growth Properties 1,400 28,875
Glimcher Realty Trust 1,200 24,150
Horizon Outlet Centers 700 16,450
Kimco Realty 800 28,900
Koger Equity* 2,200 16,225
MGI Properties 1,400 19,950
<PAGE>
McArthur/Glen Realty 900 13,838
Meditrust SBI 600 18,375
Merry Land & Investment 1,500 30,750
Nationwide Health Properties 500 18,187
ROC Communities 600 11,400
Regency Realty 1,300 20,963
Simon Property Group 500 11,687
Sizeler Property Investors 1,100 11,138
Storage Equities 1,200 16,800
Storage Trust Realty 1,500 26,812
Summit Properties 2,500 42,500
Weeks Corp* 1,500 31,688
---------------
624,300
---------------
RECREATION PRODUCTS 0.17%
Arctco Inc. 300 4,350
Outboard Marine 300 6,300
---------------
10,650
---------------
RETAIL 2.78%
Albertsons Inc. 400 11,900
Apple South 400 4,750
Barnes & Noble* 200 5,950
Dayton Hudson 400 27,450
Fingerhut Cos. 500 7,500
Heilig-Meyers Co. 200 5,100
Kingfisher PLC Sponsored ADR 300 3,972
Koninklijke Ahold NV Sponsored ADR 700 21,525
Marui Ltd. ADR 200 6,023
McDonald's Corp. 600 19,575
Penney (J C) Co. 600 24,900
Smith's food & Drug Centers Class B 700 18,025
Stanhome Inc. 200 5,850
Tech Data * 300 3,975
Timberland Co. Class A 100 2,375
Waban Inc.* 200 3,475
---------------
172,345
---------------
SAVINGS & LOAN 0.50%
ALBANK Financial 600 14,175
North Side Savings Bank 300 5,925
TCF Financial 300 11,175
---------------
31,275
---------------
SEMICONDUCTOR EQUIPMENT 0.25%
Cypress Semiconductor* 300 7,050
Electoglas Inc.* 300 8,857
---------------
15,637
---------------
<PAGE>
STEEL 0.54%
Armoc Inc.* 2,000 12,750
Nucor Corp. 400 20,400
---------------
33,150
---------------
TELECOMMUNICATIONS 1.39%
AT&T Corp. 1,200 59,850
Cellular Communications of
Puerto Rico* 200 6,200
Sprint Corp. 700 19,950
---------------
86,000
---------------
TEXTILES & APPAREL MANUFACTURERS 1.17%
Benetton Group SpA ADR 100 2,163
Springs Industries Class A 300 10,912
Tommy Hilfiger* 400 8,150
VF Corp. 700 33,688
WestPoint Stevens Class A* 1,000 13,625
Winsor Industrial ADR 700 3,754
---------------
72,292
---------------
TOOLS 0.38%
Kennametal Inc. 900 $23,400
---------------
TRANSPORTATION 0.46%
Alaska Air Group * 300 4,462
Burlington Northern 200 9,500
Consolidated Freightways* 200 4,175
Mayne Nickless ADR 100 2,340
Wisconsin Central Transportation* 200 8,000
---------------
28,477
---------------
UTILITIES 3.39%
Ameritech Corp. 500 21,937
British Telecommunications PLC ADR 300 18,862
Commonwealth Energy Systems SBI 200 8,000
Eastern Utilities Associates 300 6,863
EmpresaNacional de Electricidad SA
Sponsored ADR 300 12,225
GTE Corp. 1,000 33,875
General Public Utilities 1,100 31,075
Iowa-Illinois Gas & Electric 500 10,000
PECO Energy 600 16,050
PowerGen PLC Sponsored ADR* 100 8,303
Southern Electric PLC Sponsored ADR* 200 4,693
Southern New England
Telecommunications 400 13,300
Southwestern Bell 500 21,313
<PAGE>
Telefonica de Espana SA Sponsored ADR 100 3,688
---------------
210,184
---------------
WHOLESALE 0.62%
Bindley Western Industries 500 7,500
Inchcape Berhad ADR 6,200 21,072
Richfood Holdings 600 10,050
---------------
38,622
---------------
TOTAL COMMON STOCKS
(Cost $3,920,494) 3,856,407
---------------
FIXED INCOME SECURITIES 22.05%
U.S. Government Obligations 13.30%
U.S. Treasury Notes
8.500%, 11/15/2000 $150,000 156,469
6.500%, 4/30/1999 $150,000 144,375
6.250%, 2/15/2003 $280,000 257,250
U.S. Treasury Bonds
8.750%, 5/15/2017 $145,000 159,183
7.500%, 11/15/2016 $5,000 4,844
7.125%, 2/15/2023 $110,000 102,231
---------------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $825,838) 824,352
---------------
US Government Agency Obligations 0.94%
Federal Home Loan Mortgage
Participation Certificates,
Principal Only
11/15/2023 $34,876 $7,810
2/15/2024 $22,587 5,167
Government National Mortgage
Association I Modified
Pass-Through Certificates
7.000%, 5/15/2024 $49,517 45,169
---------------
TOTAL US GOVERNMENT AGENCY
OBLIGATIONS
(Cost $57,580) 58,146
---------------
Foreign Government Obligations 0.49%
Manitoba Province, Deb, Series AZ
7.750%, 7/17/2016
(Cost $30,436) $30,000 30,130
---------------
Corporate Bonds 7.32%
<PAGE>
BANKING 1.19%
NationsBank Corp, Sr Notes
4.750%, 8/15/1996 $25,000 23,982
Norwest Corp, Medium-Term Notes
6.425%, 2/24/1999 $50,000 49,625
---------------
73,607
---------------
CABLE TELEVISION 0.17%
Tele-Communications Inc, Sr Deb
9.875%, 6/15/2022 $10,000 10,388
---------------
FINANCE RELATED 4.46%
American General Finance, Sr Notes
5.000%, 6/15/1996 $20,000 19,330
Associates Corp of North America
Notes, 4.500%, 2/15/1996 $20,000 19,440
Sr Deb, Series A, 7.950%,
2/15/2010 $50,000 51,190
AVCO Financial Services, Notes
7.500%, 11/15/1996 $35,000 34,875
CIT Group Holdings, Notes
6.375%, 1/15/1999 $50,000 49,928
Commercial Credit, Notes
8.000%, 9/1/1996 $60,000 60,424
General Motors Acceptance, Notes
8.875%, 6/1/2010 $20,000 21,434
International Lease Finance, Notes
6.625%, 6/1/1996 $20,000 19,751
---------------
276,372
---------------
POLLUTION CONTROL
EQUIPMENT & SERVICES 0.63%
WMX Technologies, Step Up Notes+
6.220%, 4/30/2004 $40,000 38,984
---------------
UTILITIES 0.87%
GTE Corp, Deb
10.250%, 11/1/2020 $50,000 $54,865
---------------
TOTAL CORPORATE BONDS
(Cost $456,325) 454,216
---------------
TOTAL FIXED INCOME SECURITIES
(Cost $1,370,179) 1,366,844
---------------
SHORT-TERM INVESTMENTS 15.74%
US Government Obligations 2.84%
US Treasury Notes
4.250%, 11/30/1995 $100,000 97,969
4.250%, 12/31/1995 $80,000 78,150
---------------
<PAGE>
TOTAL US GOVERNMENT
OBLIGATIONS (Cost $176,438) 176,119
---------------
Corporate Bonds 0.32%
INVESTMENT BROKER 0.32%
Bear Stearns, Notes
5.875%, 1/15/1996
(Cost $20,022) $20,000 19,699
---------------
Repurchase Agreements 12.58%
Repurchase Agreement with State Street
Bank & Trust Co dated 1/31/1995 due 2/1/1995 at 5.150%, repurchased at
$780,112 (Collateralized by US Treasury Notes due 1/31/1997 at 7.500%
value $799,140)
(Cost $780,000) $780,000 780,000
---------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $976,460) 975,818
---------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $6,267,133) (Cost for Income
Tax Purposes
$6,289,243) $ 6,199,069
===============
*Security is non-income producing.
~Number of contracts.
#Also represents cost for income tax purposes. +Step-up bonds are obligations
which increase the interest payment rate at a specific point in time. Rate shown
reflects current rate which may step-up at a future date.
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Assets and Liabilities
January 31, 1995
UNAUDITED
Balanced Multi-Asset
Fund Allocation Fund
-----------------------------------
ASSETS
Investment Securities:
At Cost $ 13,370,454 $ 5,487,133
========================================
At Value $ 13,516,133 $ 5,419,069
Repurchase Agreements
at Value~ 2,560,000 780,000
Cash 10,990 15,771
Receivables:
Investment Securities Sold 706,108 16,831
Fund Shares Sold 314,448 1,177
Dividends and Interest 113,168 41,673
Prepaid Expenses and
Other Assets 57,140 55,773
----------------------------------------
TOTAL ASSETS 17,277,987 6,330,294
----------------------------------------
LIABILITIES
Payables:
Distributions to
Shareholders 353 169
Investment Securities
Purchased 1,072,015 27,315
Fund Shares Repurchased 17,753 15,696
Accrued Distribution Expenses 3,049 1,328
Accrued Expenses and Other
Payables 10,367 9,696
----------------------------------------
TOTAL LIABILITIES 1,103,537 54,204
----------------------------------------
Net Assets at Value $ 16,174,450 $ 6,276,090
========================================
NET ASSETS
Paid-in Capital* $ 16,085,812 $ 6,411,022
Accumulated Undistributed
Net Investment Income 1,970 2,089
Accumulated Undistributed
Net Realized Loss on
Investment Securities (59,011) (68,957)
Net Appreciation
(Depreciation) of
Investment Securities 145,679 (68,064)
----------------------------------------
Net Assets at Value $ 16,174,450 $ 6,276,090
========================================
Shares Outstanding 1,523,492 657,731
<PAGE>
Net Asset Value, Offering
and Redemption Price
per Share $ 10.62 $ 9.54
========================================
~Also represents cost.
*The Fund has 500 million authorized shares of common stock, par value of $0.01
per share. Of such shares, 100 million have been allocated to each individual
Fund.
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Operations
Six-Months Ended January 31, 1995
UNAUDITED
Balanced Multi-Asset
Fund Allocation Fund
INVESTMENT INCOME
INCOME
Dividends $ 76,020 $ 56,169
Interest 147,757 75,649
-----------------------------------
TOTAL INCOME 223,777 131,818
-----------------------------------
EXPENSES
Investment Advisory Fees 27,084 21,728
Distribution Expenses 12,370 7,243
Transfer Agent Fees 12,978 8,904
Administrative Fees 5,742 5,434
Custodian Fees and Expenses 1,992 2,235
Directors' Fees and Expenses 2,326 529
Professional Fees and Expenses 6,433 6,811
Registration Fees and Expenses 19,198 18,888
Reports to Shareholders 3,287 3,270
Other Expenses 1,724 3,222
-----------------------------------
TOTAL EXPENSES 93,134 78,264
Fees and Expenses Absorbed by
Investment Adviser (33,887) (34,807)
-----------------------------------
NET EXPENSES 59,247 43,457
-----------------------------------
NET INVESTMENT INCOME 164,530 88,361
-----------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT
SECURITIES
Net Realized Gain (Loss) on
Investment Securities 221,696 (52,546)
Change in Net Appreciation
(Depreciation) of Investment
Securities 126,055 (41,075)
-----------------------------------
NET GAIN (LOSS) ON INVESTMENT
SECURITIES 347,751 (93,621)
-----------------------------------
Net Increase (Decrease) in
Net Assets from Operations $ 512,281 $ (5,260)
===================================
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Changes in Net Assets
Balanced
Fund
Six-Months Six-Months
Period Period
Ended Ended
January 31 July 31
1995 1994
------------------------------
UNAUDITED (Note 1)
OPERATIONS
Net Investment Income $ 164,530 $ 43,557
Net Realized Gain (Loss)
on Investment Securities 221,696 1,755
Change in Net Appreciation
(Depreciation) of Investment
Securities 126,055 19,624
------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS 512,281 64,936
------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (163,232) (42,885)
Net Realized Gain on Investment
Securities (282,462) 0
------------------------------
TOTAL DISTRIBUTIONS (445,694) (42,885)
------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 15,555,206 5,488,322
Reinvestment of Distributions 443,053 42,622
------------------------------
15,998,259 5,530,944
Amounts Paid for Repurchases
of Shares (4,142,695) (1,400,696)
-------------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 11,855,564 4,130,248
------------------------------
Total Increase in Net Assets 11,922,151 4,152,299
NET ASSETS
Initial Subscription (Note 1) - 100,000
Beginning of Period 4,252,299 0
------------------------------
End of Period $ 16,174,450 $ 4,252,299
==============================
Accumulated Undistributed Net
Investment Income Included
in Net Assets at End of Period $ 1,970 $ 672
<PAGE>
FUND SHARE TRANSACTIONS
Initial Subscription (Note 1) - 10,000
Shares Sold 1,453,920 534,118
Shares Issued from Reinvestment
of Distributions 41,772 4,140
------------------------------
1,495,692 548,258
Shares Repurchased (385,229) (135,229)
------------------------------
Net Increase in Fund Shares 1,110,463 413,029
==============================
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Changes in Net Assets
Multi-Asset
Allocation Fund
Six-Months Period
Period Ended Ended
January 31 July 31
1995 1994
-----------------------------------
UNAUDITED (Note 1)
OPERATIONS
Net Investment Income $ 88,361 $ 29,828
Net Realized Gain (Loss) on
Investment Securities (52,546) (16,411)
Change in Net Appreciation
(Depreciation) of Investment
Securities (41,075) (26,989)
-----------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS (5,260) (13,572)
-----------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (86,533) (29,567)
Net Realized Gain on Investment
Securities 0 0
-----------------------------------
TOTAL DISTRIBUTIONS (86,533) (29,567)
-----------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 3,712,289 5,528,079
Reinvestment of Distributions 85,307 29,066
-----------------------------------
3,797,596 5,557,145
Amounts Paid for Repurchases
of Shares (2,387,838) (655,881)
-----------------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 1,409,758 4,901,264
-----------------------------------
Total Increase in Net Assets 1,317,965 4,858,125
NET ASSETS
Initial Subscription (Note 1) - 100,000
Beginning of Period 4,958,125 0
-----------------------------------
End of Period $ 6,276,090 $ 4,958,125
===================================
Accumulated Undistributed Net
Investment Income Included
in Net Assets at End of
Period $ 2,089 $ 261
FUND SHARE TRANSACTIONS
Initial Subscription (Note 1) - 10,000
<PAGE>
Shares Sold 385,156 566,677
Shares Issued from Reinvest-
ment of Distributions 8,893 3,002
-----------------------------------
394,049 579,679
Shares Repurchased (248,594) (67,403)
-----------------------------------
Net Increase in Fund Shares 145,455 512,276
===================================
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES. INVESCO Multiple Asset
Funds, Inc. (the "Fund"), a Maryland Corporation, was incorporated
on August 19, 1993 and consists of two separate Funds: Balanced
Fund and Multi-Asset Allocation Fund. Investment operations of
the Fund commenced on December 1, 1993. The Fund is registered
under the Investment Company Act of 1940 (the "Act") as a
diversified, open-end management investment company.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. A. SECURITY
VALUATION -- Equity securities traded on national securities exchanges or in the
over-the-counter market are valued at the last sale price in the market where
such securities are primarily traded. If last sale prices are not available,
securities are valued at the highest closing bid price obtained from one or more
dealers making a market for such securities or by a pricing service approved by
the Fund's board of directors.
Debt securities are valued at evaluated bid prices as determined by a
pricing service approved by the Fund's board of directors. If evaluated bid
prices are not available, debt securities are valued by averaging the bid prices
obtained from one or more dealers making a market for such securities.
Options are valued at the last sale price on the principal exchange on
which the options are traded. If there is no last sale price reported, then the
bid price will be used.
If market quotations or pricing service valuations are not readily
available, securities are valued at fair value as determined in good faith by
the Fund's board of directors.
Short-term securities are stated at amortized cost (which approximates
market value) if maturity is 60 days or less, or at market value if maturity is
greater than 60 days. B. REPURCHASE AGREEMENTS -- Repurchase agreements held by
the Fund are fully collateralized by U.S. Government securities and such
collateral is in the possession of the Fund's custodian. The collateral is
evaluated daily to ensure its market value exceeds the current market value of
the repurchase agreements including accrued interest. C. OPTIONS -- The Balanced
Fund may hold options for investment purposes with the intent to hedge the
portfolio against on going exposure to market value and interest rate
fluctuations.
The use of such instruments may involve certain risks as a result of
unanticipated movements in the market. A lack of correlation between the value
of an instrument underlying an option and the asset being hedged, or unexpected
adverse price movements, could render the Balanced Fund's hedging strategy
unsuccessful. In addition, there can be no assurance that a liquid secondary
market will exist for any option purchased or sold. Realized gains or losses on
purchased option transactions are included in Net Realized Gain (Loss) on
Investment Securities in the Statement of Operations.
<PAGE>
D. 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. Interest income, which may be comprised of stated coupon rate,
market discount and original issue discount is recorded on the accrual basis.
Discounts on debt securities purchased are amortized over the life of the
respective security as adjustments to interest income. Cost is determined on the
specific identification basis. E. FEDERAL AND STATE TAXES -- The Fund has
complied 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.
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. F. DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS -- Dividends and distributions to shareholders are recorded by the
Fund on the ex dividend/distribution date. The Fund distributes net realized
capital gains, if any, to its shareholders at least annually, if not offset by
capital loss carryovers. Income distributions and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments for mortgage-backed securities, market discounts,
nontaxable dividends, net operating losses, expiring capital loss carryforwards
and deferral of wash sales. G. EXPENSES -- Each of the Funds bears expenses
incurred specifically on its behalf and, in addition, each Fund bears a portion
of general expenses, based on the relative net assets of each Fund. NOTE 2 --
INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc. ("IFG")
serves as the Fund's investment adviser. As compensation for its services to the
Fund, IFG receives an investment advisory fee which is accrued daily at the
applicable rate and paid monthly. For Balanced Fund, the fee is based on the
annual rate of 0.60% on the first $350 million in average net assets; reduced to
0.55% on the next $350 million of average net assets; and 0.50% of average net
assets in excess of $700 million. For Multi-Asset Allocation Fund, the fee is
based on the annual rate of 0.75% on the first $500 million in average net
assets; reduced to 0.65% on the next $500 million of average net assets; and
0.50% on average net assets in excess of $1 billion.
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust
Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of
Balanced Fund are made by ITC. In a separate Sub-Advisory Agreement between IFG
and INVESCO Management & Research, Inc. ("IMR"), an affiliate of IFG, investment
decisions of Multi-Asset Allocation Fund are made by IMR. Fees for such
sub-advisory services are paid by IFG.
In accordance with an Administrative Agreement, each Fund pays IFG an
annual fee of $10,000, plus an additional amount
<PAGE>
computed at an annual rate of 0.015% of average net assets to provide
administrative, accounting and clerical services. The fee is accrued daily and
paid monthly.
IFG receives a transfer agent fee at an annual rate of $14.00 per
shareholder account, or per participant in an omnibus account. 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 based upon the actual
number of accounts in existence during each month.
A plan of distribution pursuant to Rule 12b-1 of the Act provides for
reimbursement of marketing and advertising expenditures to IFG (the
"Distributor") to a maximum of 0.25% of average annual net assets. Amounts
accrued by the Fund are available to reimburse the Distributor for actual
expenditures incurred within a rolling twelve-month period. For the six-months
ended January 31, 1995, Balanced Fund and Multi-Asset Allocation Fund paid the
Distributor $10,185 and $6,804, respectively, for reimbursement of expenses
incurred.
IFG has voluntarily agreed, in some instances, to absorb certain fees and
expenses incurred by each Fund. NOTE 3 -- PURCHASES AND SALES OF INVESTMENT
SECURITIES. For the six-months ended January 31, 1995, 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
-----------------------------------------------------------------
Balanced Fund $14,971,060 $8,284,475
Multi-Asset
Allocation Fund 3,217,066 1,369,690
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities were as follows:
Fund Purchases Sales
-----------------------------------------------------------------
Balanced Fund $3,225,562 $9,448
Multi-Asset
Allocation Fund 1,065,702 1,020,572
NOTE 4 -- APPRECIATION AND DEPRECIATION. At January 31, 1995, 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
Appreciation Depreciation (Depreciation)
-----------------------------------------------------------------
Balanced Fund $406,802 $261,123 $145,679
Multi-Asset
Allocation Fund 163,133 253,307 (90,174)
<PAGE>
NOTE 5 -- TRANSACTIONS WITH AFFILIATES. Certain of the Fund's officers and
directors are also officers and directors of IFG, ITC or IMR.
The Fund has adopted an unfunded noncontributory defined benefit pension
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 25% of the retainer fee at
the time of retirement. Pension expenses for the Balanced Fund for the
six-months ended January 31, 1995, included in Directors' Fees and Expenses in
the Statement of Operations were $602. Prepaid pension costs for the Balanced
Fund of $12 and accrued pension liability of $614 are included in prepaid
expenses and accrued expenses, respectively, in the Statement of Assets and
Liabilities. Pension expenses for the Multi-Asset Allocation Fund were
insignificant.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Six Months Period
Ended Ended
January 31 July 31
------------------------------
1995 1994
UNAUDITED (Note 1)
Multi-Asset Allocation Fund
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 9.68 $ 10.00
------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.13 0.06
Net Losses on Securities
(Both Realized and Unrealized) (0.14) (0.32)
------------------------------
Total from Investment Operations (0.01) (0.26)
------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.13 0.06
------------------------------
Net Asset Value-- End of Period $ 9.54 $ 9.68
==============================
TOTAL RETURN (0.08%)* (2.60%)*
RATIOS
Net Assets --End of Period
($000 Omitted) $6,276 $4,958
Ratio of Expenses to Average
Net Assets# 0.76%* 1.50%~
Ratio of Net Investment Income
to Average Net Assets# 1.54%* 2.23%~
Portfolio Turnover Rate 52%* 42%*
*These amounts are based on operations for the period shown and, accordingly,
are not representative of a full year. #Various expenses of the Fund were
voluntarily absorbed by IFG for the six-months ended January 31, 1995 and the
period ended July 31, 1994. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 1.36%, (not annualized)
and 5.14%, respectively, and ratio of net investment income (loss) to average
net assets would have been 0.93%, (not annualized) and (1.41%), respectively.
~Annualized
<PAGE>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
International
Latin American Growth 34 * *
European Small Company 37 * *
European 56 FEURX Europ
Pacific Basin 54 FPBSX PcBas
International Growth 49 FSIGX IntlGr
Sector
Energy 50 FSTEX Enrgy
Environmental Services 59 FSEVX Envirn
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Technology 55 FTCHX Tech
Worldwide Capital
Goods 38 ISWGX WldCap
Worldwide Communications 39 ISWCX WldCom
Growth
Emerging Growth 60 FIEGX Emgrth
Small Company 74 * *
Dynamics 20 FIDYX Dynm
Growth 10 FLRFX Grwth
Equity-Income
Industrial Income 15 FIIIX IndInc
Utilities 58 FSTUX Util
Multiple-Asset
Multi-Asset Allocation 70 IMAAX MulAstAl
Balanced 71 IMABX Bal
Bond
High Yield 31 FHYPX HiYld
Select Income 30 FBDSX SelInc
U.S. Government Securities 32 FBDGX USGvt
Short-Term Bond 33 INIBX ShTrBd
Tax-Exempt
Tax-Free Long-Term Bond 35 FTIFX TxFre
Tax-Free Intermediate Bond 36 * *
Money Market
Tax-Free Money Fund 40 FFRXX N/A
Cash Reserves 25 FDSXX N/A
U.S. Government Money Fund 44 FUGXX N/A
*This fund does not meet size requirements to be assigned a ticker symbol or
appear in newspaper listings.
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
