Annual Report
July 31, 1995
INVESCO
MULTIPLE
ASSET
FUNDS,
INC.
No-load mutual funds seeking capital appreciation and current income.
INVESCO FUNDS
<PAGE>
Overview August 1995
The U.S. economy may be close to achieving the "soft landing"
analysts have hoped for.
Fearing the long-term, corrosive effects of inflation, the Federal Reserve
Board actively sought to slow the U.S. economy in 1994. Over a period of 12
months, they doubled short-term interest rates.
The plan may have worked. After impressive annualized growth rates of 6.3%,
3.3%, 3.8%, 3.4%, and 5.1% in consecutive quarters, GDP advanced just 2.7%
during the first three months of 1995, and was estimated at 1.1% in the second
quarter. Now that they've reined in the galloping expansion, the Fed will act to
keep it at a sustainable trot. In July, they cut short-term interest rates by
0.25%, and further cuts may be made if additional stimulus is required.
Given the advances in the U.S. equities markets in the first half of 1995,
we're likely to see a period when the market "digests" its gains -- as
technology stocks did in mid-July, for instance. However, we do not anticipate a
significant setback in prices over the third and fourth quarters.
In our opinion, it's possible interest rates will drop further in 1995. That
will ease inflationary pressure somewhat, as well as have a positive impact on
the bond market. Short-term rates could drop to 5.5% or less, compared to a 6%
Fed funds rate as of late June. The benchmark 30-year Treasury bond is now
yielding around 7.0%; we may expect to see that gradually decrease. Overall,
bond prices have advanced strongly since the fourth quarter of 1994.
International Highlights. With the Japanese economy stuck in low gear, the
Nikkei Dow dropped severely in recent months. This proved to be a drag
throughout the Pacific Basin. Markets now appear to be stabilizing and have the
potential to move higher.
In U.S. dollar terms, most European markets have gained, including Belgium,
the Netherlands, Sweden, Switzerland, and the United Kingdom. Areas of strength
generally have been consumer staples, energy, and technology. Manufacturers of
heavy equipment also have done relatively well.
The devaluation of the Mexican peso on 12/20/94 caused market turmoil
throughout Latin America. Stock markets from Mexico City to Argentina declined
sharply, but recently have rallied as Mexico has stabilized and the peso has
rebounded from its lows.
<PAGE>
INVESCO Balanced Fund
Investment Performance And Strategy. For the fiscal year ended 7/31/95, The
Balanced Fund achieved a total return of 22.97%. Balanced Fund, which limits
stocks to no more than 70% of assets, was generally weighted about 60% in common
stocks; direct government and government agency debt obligations averaged about
25%. Predictably, the fund performed slightly below the all-stock S&P 500 index,
and considerably better than the all-bond Lehman index. For the year ended
7/31/95, the Standard & Poor's 500 Index was up 25.99%, and the Lehman
Government/Corporate Bond Index was up 10.12%. (Of course, past performance is
not a guarantee of future results.)*
On the equity side, INVESCO Balanced Fund benefited from diversifying across
industry segments, rather than focusing on certain sectors. Among the star
performers were the chemical stocks, Potash Corp. (Saskatchewan) and Agrium
Inc., which responded to a strong global demand for chemical products.
Graph:
Balanced Fund
Allocation by Value of Total Net Assets
as of 7/31/95
This pie chart shows the allocation by value of total net assets for each of
the following categories:
Cash & equivalents - 2.8%, Government agency - 9.3%, Government Bonds -
16.0%, Corporate bonds - 1.2%, Common stocks - 65.2%, Preferred stocks - 5.5%
During the last twelve months, we took new positions in Arco Chemical
(chemicals), ACE Ltd. (worldwide liability insurance), and Rogers Cantel Mobile
Communications (cellular telephone). Again, these reflect the fund's philosophy
of diversification across many types of companies.
Looking forward, we have some concerns about market valuations and are moving
toward a moderately more defensive posture. Given that outlook, we do not expect
to add to our weighting of capital goods stocks, which stood at 9.61% on
7/31/95. We are buying stocks of insurance companies on the basis of good
earnings at attractive prices in a favorable rate environment.
Balanced Fund
Average Annual Total Return*
as of 7/31/95
1 year 22.97%
------------------------------------------------
Since inception (12/93) 16.13%
------------------------------------------------
<PAGE>
We think technology stocks are approaching an overvalued state, and in the
near-term we will buy and sell very selectively. The outlook for many cyclical
stocks, particularly retail, is not good, as we believe consumers have nearly
depleted their disposable income for the time being. Due to poor potential for
future earnings growth, automobile related holdings will remain underweighted.
In our opinion, the best opportunities at this stage of the business cycle are
in defense electronics and media broadcast/entertainment.
We have taken a defensive posture on the bond side of the fund by decreasing
the duration of our holdings in U.S. government bonds. Shorter durations limit
the fund's downside potential in the event that interest rates rise.
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 7/31/95.
The line graph represents the value of a $10,000 investment in INVESCO
Balanced Fund plus reinvested dividends and capital gain distributions, from
inception through 7/31/95.*
The chart and other total return figures cited reflect the fund's operating
expenses, but the indexes do not have expenses, which would have lowered their
performance.
Fund Management. INVESCO Balanced Fund's equity portfolio is managed by
INVESCO Vice President Brian F. Kelly. He is a Certified Public Accountant, and
holds an MBA and JD from the University of Iowa, as well as a BA from the
University of Notre Dame. Before joining INVESCO in 1993, Brian was with the
pension department of Sears, Roebuck.
INVESCO Senior Vice President Donovan "Jerry" Paul manages the fixed-income
holdings. He earned his MBA from the University of Northern Iowa, as well as a
BBA from the University of Iowa. A Chartered Financial Analyst and Certified
Public Accountant, Jerry has more than 19 years of experience in the securities
industry. He joined INVESCO in 1994; previously, he was director of fixed-income
research for Stein, Roe & Farnham.
Multi-Asset Allocation Fund
Investment Performance And Strategy. Like a balanced fund, Multi-Asset
Allocation includes both common stock and fixed-income securities. But this fund
takes the concept several steps further by incorporating small-capitalization,
foreign, and real estate equities into the mix.
<PAGE>
For the fiscal year ended 7/31/95, this combination of holdings resulted in a
total return of 15.13%. The fund underperformed the S&P 500, which is an
all-stock index, and slightly outperformed the Lehman index, which consists
exclusively of corporate and government bonds. The Standard & Poor's 500 Index
was up 25.99% in the same period, and the Lehman Government/Corporate Bond Index
was up 10.12%. (Of course, past performance is not a guarantee of future
results.)*
The fund's gains largely came over the first six months of 1995. Our
large-capitalization equity component was 33% of the fund's assets going into
December, which opened a period in which large-cap stocks benefited the most
from a record-breaking market rally. A spring rally in Latin American markets
led to a gain in international equities in the first half of 1995. On the other
hand, the small-cap portion of the fund trailed the Russell 2000 Index slightly,
due to our cautious underweighting in technology stocks.
Multi-Asset Allocation Fund
Average Annual Total Return*
as of 7/31/95
1 year 15.13%
------------------------------------------------
Since inception (12/93) 7.10%
------------------------------------------------
As a result of declining interest rates during this period, the fixed-income
component of the fund produced positive returns. Results are ahead of the
overall bond market, due to the fund's slightly longer average maturity and
strong call protection.
Graph:
Multi-Asset Allocation Fund
Allocation by Value of Total Net Assets
as of 7/31/95
This pie chart shows the allocation by value of total net assets for each of
the following categories:
Large-capitalization stocks - 33.9%, Small cap - 12.6%, Fixed-income - 20.0%,
Real estate - 10.7%, Foreign stocks - 9.3%, Cash and equivalents - 13.5%
The fund's holdings in REITs (real estate investment trusts) performed in
line with the overall real estate market in the first half of 1995. A slight
overweighting in self-storage properties aided our results. However, that
advantage was offset by poor performance from our apartment investments and a
lack of exposure to office buildings.
<PAGE>
Going into its second fiscal year, the fund is well positioned to benefit
from what we expect to be a second leg of the market rally led by small-cap
stocks. We have gradually increased our allocation to this area, from 7.4% in
mid-1994, to 9.8% last winter, to over 12% on 7/31/95.
Graph:
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 7/31/95.
The line graph represents the value of a $10,000 investment in INVESCO
Multi-Asset Allocation Fund plus reinvested dividends and capital gain
distributions, from inception through 7/31/95.*
The chart and other total return figures cited reflect the fund's operating
expenses, but the indexes do not have expenses, which would have lowered their
performance.
Fund Management. INVESCO Multi-Asset Allocation Fund is team-managed; Bob
Slotpole, senior vice president and director of equities, serves as lead
portfolio manager. He is assisted by individual specialists who are responsible
for securities' selection within their assigned share of the allocation, given
specific parameters. Bob began his investment career in 1975. He earned an MBA
from Stanford University, and a BS from the State University of New York at
Buffalo.
*Total return assumes reinvestment of dividends and capital gain distributions
for the periods indicated. Past performance is not a guarantee of future
results. Investment return and principal value will fluctuate so that, when
redeemed, an investor's shares may be worth more or less than when purchased.
The S&P 500 is an unmanaged index considered representative of broad stock
performance; the Lehman Brothers Government/Corporate Bond Index is an unmanaged
index reflecting the broad bond market. The Russell 2000 reflects performance of
U.S. smaller-cap stocks.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Ten Largest Common Stock Holdings
July 31, 1995
Description Value
--------------------------------------------------------------
BALANCED Fund
ARCO Chemical $1,776,000
Panaco Inc 1,527,250
Potash Corp Saskatchewan 1,197,500
MK Rail 1,193,500
Agrium Inc 1,191,925
Qantas Airways Ltd ADR 958,360
Avondale Industries 891,250
Studio Plus Hotels 682,500
IES Industries 656,250
Teekay Shipping 653,125
MULTI-ASSET ALLOCATION Fund
International Business Machines $ 87,100
Royal Dutch Petroleum 5 Gldr Shrs 76,200
Chevron Corp 74,063
Motorola Inc 68,963
Mobil Corp 68,425
Coca-Cola Co 65,875
AT&T Corp 63,300
Citicorp 62,375
Chemical Banking 61,950
McDonald's Corp 61,800
Composition of holdings is subject to change.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Investment Securities
July 31, 1995
Country Code Shares or
if Principal
Description Applicable Amount Value
------------------------------------------------------------------------------
BALANCED Fund
COMMON STOCKS 64.84%
AEROSPACE & DEFENSE 0.21%
HEICO Corp 4,950 $ 76,725
-----------
AGRICULTURAL 1.69%
Pioneer Hi-Bred International 15,000 633,750
-----------
AUDIO/VIDEO RELATED 0.98%
Granada Group PLC UK 35,000 365,143
-----------
AUTOMOBILE RELATED 0.54%
R&B Inc* 25,000 203,125
-----------
BROADCASTING 0.84%
Capital Radio PLC UK 12,500 87,105
Television Broadcasts Ltd HK 60,000 225,639
-----------
312,744
-----------
CHEMICALS 11.76%
Agrium Inc CA 34,300 1,191,925
ARCO Chemical 37,000 1,776,000
Lawter International 20,900 240,350
Potash Corp Saskatchewan CA 20,000 1,197,500
-----------
4,405,775
-----------
COMPUTER RELATED 1.03%
Geodynamics Corp 15,000 153,750
SHL Systemhouse* 15,000 121,172
VeriFone Inc* 4,000 111,000
-----------
385,922
-----------
ELECTRONICS 4.21%
FLIR Systems* 31,000 437,875
Leitch Technology* CA 5,000 73,779
Logicon Inc 3,500 178,500
Moog Inc Class A* 6,000 74,250
OnTrak Systems* 14,000 409,500
Tech-Sym Corp* 15,000 401,250
-----------
1,575,154
-----------
ELECTRICAL EQUIPMENT 0.61%
M-Wave Inc* 14,800 229,400
-----------
FINANCE RELATED 1.30%
Data Broadcasting* 50,000 400,000
Wilmington Trust 3,000 87,750
-----------
487,750
-----------
FOOD PRODUCTS & BEVERAGES 0.26%
Minnesota Brewing* 21,000 97,125
-----------
<PAGE>
HOTELS 1.82%
Studio Plus Hotels* 35,000 682,500
-----------
INSURANCE 5.71%
ACE Ltd BD 13,000 385,125
Allmerica Property & Casualty 8,000 183,000
Berkley (W R) Corp 15,000 575,625
Employee Benefit Plans* 30,000 510,000
Harleysville Group 10,000 257,500
RenaissanceRe Holdings Ltd* 10,000 228,750
-----------
2,140,000
-----------
MACHINERY 1.97%
Commercial Intertech 30,000 570,000
Manitowoc Co 4,500 127,125
Stratasys Inc* 2,500 40,000
-----------
737,125
-----------
MANUFACTURING 4.07%
MK Rail 154,000 1,193,500
Tredegar Industries 5,000 144,375
United Industrial 14,000 98,000
Wolverine Tube* 2,500 87,500
-----------
1,523,375
-----------
MEDICAL EQUIPMENT & SUPPLIES 0.52%
Lifeline Systems* 15,000 144,375
Spectranetics Corp* 20,000 51,250
-----------
195,625
-----------
METALS & MINING 5.08%
Alumax Inc* 2,500 85,938
Diamond Fields Resources* CA 10,000 535,577
Franco-Nevada Mining CA 7,500 465,897
INDRESCO Inc* 20,000 315,000
Reynolds Metals 2,000 125,000
Santa Fe Pacific Gold 30,000 375,000
-----------
1,902,412
-----------
OIL & GAS RELATED 5.89%
Cairn Energy USA* 7,000 81,375
Imperial Oil Ltd CA 3,200 114,800
Panaco Inc* 298,000 1,527,250
Phillips Petroleum 10,000 353,750
Union Texas Petroleum Holdings 2,000 40,500
United Meridian* 5,000 88,750
-----------
2,206,425
-----------
PAPER & PAPER PRODUCTS 1.40%
Domtar Inc* CA 50,000 525,000
-----------
RETAIL 0.30%
DF & R Restaurants* 4,500 112,500
-----------
<PAGE>
SEMICONDUCTOR EQUIPMENT 0.51%
Paradigm Technology* 3,000 90,000
TelCom Semiconductor* 6,700 101,756
-----------
191,756
-----------
SHIP BUILDING 2.38%
Avondale Industries* 77,500 891,250
-----------
STEEL 0.23%
Roanoke Electric Steel 6,000 87,000
-----------
TELECOMMUNICATIONS 1.06%
Rogers Cantel Mobile
Communications Class B* CA 17,000 397,375
-----------
TRANSPORTATION 4.54%
Maritrans Inc 15,000 88,125
Qantas Airways Ltd ADR^ AS 65,000 958,360
Teekay Shipping* 27,500 653,125
-----------
1,699,610
-----------
UTILITIES 4.59%
Bangor Hydro Electric 29,000 344,375
Equitable Resources 6,000 166,500
IES Industries 30,000 656,250
Rochester Gas & Electric 10,500 212,625
Texas Utilities 10,000 338,750
-----------
1,718,500
-----------
WHOLESALE 1.34%
Fishery Products International Ltd* CA 30,000 150,289
Smucker (J M) Class B 10,000 197,500
Stokely USA* 25,000 153,125
-----------
500,914
-----------
TOTAL COMMON STOCKS
(Cost $21,753,390) 24,283,980
-----------
PREFERRED STOCKS 5.46%
INSURANCE 2.19%
Berkley (W R) Corp, Depository Shrs
Representing 1/6 Shr, 7.375%
Series A Pfd 35,000 818,125
-----------
MINING 0.20%
Amax Gold, $3.75, Series B, Conv Pfd 1,500 75,750
-----------
UTILITIES 3.07%
PSI Energy, 7.440%, Series K Pfd 46,000 1,150,000
-----------
TOTAL PREFERRED STOCKS
(Cost $1,952,130) 2,043,875
-----------
<PAGE>
FIXED INCOME SECURITIES 26.30%
US Government Obligations 15.90%
US Treasury Notes
7.875%, 11/15/2004 $150,000 164,390
6.750%, 4/30/2000 $2,500,000 2,554,688
6.500%, 5/15/2005 $1,000,000 1,004,061
6.125%, 5/31/1997 $1,000,000 1,004,061
5.875%, 6/30/2000 $1,000,000 987,186
5.875%, 2/15/2004 $250,000 240,703
-----------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $5,937,623) 5,955,089
-----------
US Government Agency Obligations 9.21%
Federal Home Loan Mortgage, Gold Pool
7.000%, 8/1/2010 $1,000,000 998,750
6.500%, 6/1/2010 $1,985,732 1,951,853
Student Loan Marketing Association
Notes, Series CQ, 4.570%, 3/7/2001 $ 500,000 497,289
-----------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $3,470,526) 3,447,892
-----------
Corporate Bonds 1.19%
FOOD PRODUCTS & BEVERAGES 1.19%
Dr Pepper/Seven-Up Cos,
Sr Sub Step-Up
Notes, Zero Coupon^^, 11/1/2002
(Cost $453,018) $500,000 447,500
-----------
TOTAL FIXED INCOME SECURITIES
(Cost $9,861,167) 9,850,481
-----------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 3.40%
Repurchase Agreement with
State Street Bank &
Trust Co dated 7/31/1995 due 8/1/1995
at 5.750%, repurchased
at $1,275,204 (Collateralized
by US Treasury Notes
due 9/30/1996 at 6.500%,
value $1,302,366)
Cost $1,275,000) $1,275,000 $1,275,000
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $34,841,687)
(Cost for Income Tax Purposes
$34,870,417) $37,453,336
===========
MULTI-ASSET ALLOCATION Fund
COMMON STOCKS 66.84%
ADVERTISING 0.18%
Heritage Media Class A* 200 $ 5,750
True North Communications 400 8,150
-----------
13,900
-----------
<PAGE>
AEROSPACE & DEFENSE 1.04%
Lockheed Martin 389 24,458
McDonnell Douglas 300 24,787
Precision Castparts 500 17,813
Thiokol Corp 100 3,325
Watkins-Johnson Co 200 10,200
-----------
80,583
-----------
AUDIO/VIDEO RELATED 0.48%
Fuji Photo Film Ltd ADR 700 36,837
-----------
AUTOMOBILE RELATED 1.69%
Bandag Inc 400 24,600
Chrysler Corp 300 14,625
Eaton Corp 400 22,350
Ford Motor 1,500 43,313
Strattec Security* 80 990
Toyota Motor ADR 600 24,975
-----------
30,853
-----------
BANKING 4.90%
ALBANK Financial 600 16,650
Banco Central
Hispanoamericano SA ADR 1,200 12,750
Banco Santander SA ADR 700 29,925
CCB Financial 200 8,950
Centura Banks 400 12,350
Chase Manhattan 700 37,537
Chemical Banking 1,200 61,950
Citicorp 1,000 $ 62,375
Compagnie de Suez ADR 200 4,929
Deposit Guaranty 100 3,900
First Midwest Bancorp 300 7,950
Firstar Corp 154 5,371
Magna Group 700 15,794
Mark Twain Bancshares 300 9,450
National Australia Bank Ltd ADR 800 32,700
NationsBank Corp 500 28,063
Summit Bancorp 600 14,625
Union Planters 100 2,837
West One Bancorp 300 11,025
-----------
379,131
-----------
BROADCASTING 0.45%
Capital Cities/ABC 300 35,025
-----------
BUILDING & CONSTRUCTION
RELATED 0.70%
BMC West* 450 6,750
Leslie Building Products* 500 1,125
Oakwood Homes 500 15,125
Pioneer International Ltd
Sponsored ADR 2,600 6,594
Sekisui House Ltd ADR 200 24,761
-----------
54,355
-----------
BUSINESS SERVICES 0.16%
Franklin Quest* 500 12,188
-----------
<PAGE>
CHEMICALS 1.83%
AKZO NV ADR 400 26,325
Bayer AG Sponsored ADR 700 18,200
Cabot Corp 100 5,637
Hercules Inc 600 32,175
Hoechst AG ADR 100 12,000
Morton International 600 18,000
Olin Corp 500 28,938
-----------
141,275
-----------
CLEANING PRODUCTS 0.53%
Procter & Gamble 600 41,325
-----------
COMPUTER RELATED 2.51%
Computer Associates International 300 22,012
Computer Data Systems 300 3,150
FTP Software* 300 8,700
Hewlett-Packard Co 200 15,575
International Business Machines 800 87,100
Microsoft Corp* 400 36,200
PLATINUM technology* 200 4,950
Read-Rite Corp* 400 16,500
-----------
194,187
-----------
CONTAINERS 0.61%
Premark International 400 21,150
Sealed Air* 200 10,150
Temple-Inland Inc 300 15,525
-----------
46,825
-----------
CONTROL INSTRUMENTS 0.30%
Measurex Corp 500 15,125
Teleflex Inc 200 8,250
-----------
23,375
-----------
COSMETICS & TOILETRIES 0.18%
Alberto Culver Class B 300 9,075
Carter-Wallace Inc 300 3,638
Hydron Technologies 400 1,550
-----------
14,263
-----------
DIVERSIFIED COMPANIES 1.88%
du Pont (E I) de Nemours 500 33,500
ITT Corp 400 48,000
Pacific Dunlop Ltd ADR 1,200 11,100
Textron Inc 800 53,200
-----------
145,800
-----------
ELECTRONICS 2.72%
AMETEK Inc 400 7,250
C-Cube Microsystems* 300 10,500
Intel Corp 800 52,000
KEMET Corp* 200 12,950
Logicon Inc 100 5,100
Matsushita Electric Industrial ADR 100 16,600
Motorola Inc 900 68,962
Philips Electronics NV
New York Shrs 200 9,850
<PAGE>
Symbol Technologies* 300 11,438
TDK Corp ADR 300 15,675
-----------
210,325
-----------
ENGINEERING 0.12%
Jacobs Engineering Group* 400 9,250
-----------
ENGINES 0.17%
Briggs & Stratton 400 13,350
-----------
FINANCE RELATED 0.67%
AutoFinance Group* 300 4,912
Federal Home Loan Mortgage 300 19,650
Federal National
Mortgage Association 200 18,725
FINOVA Group 200 8,175
-----------
51,462
-----------
FOOD PRODUCTS & BEVERAGES 5.08%
Anheuser-Busch Cos 700 38,938
Bass PLC ADR 400 8,450
Coca-Cola Co 1,000 65,875
ConAgra Inc 700 26,425
Coors (Adolph) Class B 400 6,900
Dean Foods 800 22,600
Goodman Fielder Ltd ADR* 3,200 10,692
GoodMark Foods 300 4,800
Heineken NV ADR 125 19,500
Hudson Foods Class A 150 2,062
IBP Inc 400 18,700
Kirin Brewery Ltd ADR 200 23,000
Nestle SA Sponsored ADR
Representing Registered Shrs 400 20,400
Ralcorp Holdings* 400 9,200
Sara Lee 1,300 37,213
Unigate PLC ADR 5,600 38,530
Unilever NV New York Shrs 300 39,525
-----------
392,810
-----------
HEALTH CARE RELATED 0.53%
Lincare Holdings* 400 13,900
Medaphis Corp* 200 5,050
OrNda Healthcorp* 300 5,962
Universal Health Services Class B* 300 9,525
Vencor Inc* 200 6,475
-----------
40,912
-----------
INSURANCE 1.72%
AEGON NV ADR 1,250 45,625
American International Group 600 45,000
Fremont General 330 8,869
Protective Life 900 26,100
ReliaStar Financial 100 3,813
Willis Corroon Group PLC ADR 300 3,487
-----------
132,894
-----------
INVESTMENT BROKERS 0.72%
Merrill Lynch 1,000 55,500
-----------
<PAGE>
JEWELRY 0.25%
Tiffany & Co 500 19,188
-----------
MACHINERY 1.13%
AGCO Corp 150 7,987
Caterpillar Inc 400 28,150
Greenfield Industries 200 5,850
Harnischfeger Industries 200 7,500
Kennametal Inc 900 33,188
Pentair Inc 100 4,575
-----------
87,250
-----------
MEDICAL RELATED 1.88%
Advanced Technology Laboratories* 500 8,625
AMSCO International* 800 14,900
Baxter International 800 29,800
Bio-Rad Laboratories Class A* 500 19,000
Invacare Corp 100 4,400
Johnson & Johnson 700 50,225
Nellcor Inc* 200 10,500
Physicians Health Services* 100 2,263
Vivra Inc* 200 5,950
-----------
145,663
-----------
MEDICAL RELATED -- DRUGS 3.56%
Abbott Laboratories 700 28,000
Bergen Brunswig Class A 200 4,325
CIBA-GEIGY Ltd Sponsored ADR 900 33,300
McKesson Corp 600 26,475
Merck & Co 300 15,487
Novo-Nordisk A/S ADR 1,100 32,175
Pfizer Inc 800 40,400
Schering-Plough Corp 800 37,200
Upjohn Co 1,500 57.750
---------
275,112
-----------
METALS & MINING 0.18%
Agnico Eagle Mines 500 6,750
Carpenter Technology 100 7,375
-----------
14,125
-----------
NURSING HOMES 0.15%
Hillhaven Corp* 400 11,550
-----------
OFFICE EQUIPMENT 0.42%
Alco Standard 400 32,550
-----------
OIL & GAS RELATED 4.87%
Ashland Inc 500 17,188
BJ Services* 100 2,488
Baker Hughes 1,000 22,125
Castle Energy* 900 8,662
Chevron Corp 1,500 74,062
Coastal Corp 900 28,013
Exxon Corp 200 14,500
Global Marine* 1,000 5,750
Mobil Corp 700 68,425
Royal Dutch Petroleum
5 Gldr Shrs 600 76,200
<PAGE>
Shell Transport & Trading PLC
New York Shrs 400 29,800
Sonat Offshore Drilling 500 16,750
Total Petroleum North America Ltd 200 2,325
USX-Delhi Group 500 5,312
Weatherford International* 400 5,100
-----------
376,700
-----------
PAPER & PAPER PRODUCTS 1.13%
Chesapeake Corp 300 9,900
Georgia-Pacific Corp 300 25,875
International Paper 600 50,700
Rayonier Inc 25 972
-----------
87,447
-----------
PRINTING & PUBLISHING 0.64%
Media General Class A 200 6,800
Meredith Corp 600 17,250
Scholastic Corp* 200 13,150
South China Morning Post ADR 4,300 12,384
-----------
49,584
-----------
REAL ESTATE RELATED 10.62%
Bay Apartment Communities 1,500 29,813
Beacon Properties 1,000 21,125
CBL & Associates Properties 1,200 24,750
Centerpoint Properties 1,300 26,650
Colonial Properties Trust SBI 700 16,975
Crown American Realty Trust 1,700 21,462
Developers Diversified Realty 600 18,225
Duke Realty Investments 1,300 37,213
Evans Withycombe Residential 1,300 25,025
Gables Residential Trust SBI 1,000 22,000
General Growth Properties 1,400 27,300
Glimcher Realty Trust 1,200 25,650
HGI Realty 1,276 31,740
Health Care REIT 900 18,338
Highwoods Properties 1,000 25,250
JDN Realty 1,200 26,100
Kimco Realty 800 31,900
Koger Equity* 2,600 22,587
MGI Properties 1,400 20,475
Meditrust SBI 600 20,250
Merry Land & Investment 1,000 21,500
Nationwide Health Properties 500 19,813
Oasis Residential 1,100 24,750
Paragon Group 1,500 28,312
ROC Communities 600 12,600
Regency Realty 1,300 21,938
Shurgard Storage Centers
Class A 800 18,900
Simon Property Group 500 12,250
Sizeler Property Investors 1,100 10,862
Starwood Lodging Trust* 900 23,400
Storage Equities 1,200 20,550
Storage Trust Realty SBI 1,100 23,100
Summit Properties 1,300 22,588
Tucker Properties 1,600 18,000
Weeks Corp 1,200 27,900
<PAGE>
Wellsford Residential Property
Trust SBI 1,000 22,250
-----------
821,541
-----------
RECREATION PRODUCTS
& SERVICES 0.28%
Arctco Inc 300 3,487
Cobra Golf* 400 12,550
Outboard Marine 300 6,000
-----------
22,037
-----------
RETAIL 3.52%
Albertson's Inc 400 11,900
Apple South 400 8,550
Barnes & Noble* 200 7,350
Consolidated Stores* 2,000 44,500
Dayton Hudson 400 30,250
Haverty Furniture 200 2,350
Kingfisher PLC Sponsored ADR 300 4,474
Koninklijke Ahold NV
Sponsored ADR 700 25,200
Marui Co Ltd ADR 600 19,900
McDonald's Corp 1,600 61,800
Penney (J C) Co 600 29,025
Smith's Food & Drug Centers
Class B 700 13,563
Stanhome Inc 200 6,425
Tech Data* 300 4,125
Waban Inc* 200 3,325
-----------
272,737
-----------
SAVINGS & LOAN 0.41%
North Side Savings Bank 315 8,347
Sovereign Bancorp 900 8,550
TCF Financial 300 15,225
-----------
32,122
-----------
SEMICONDUCTOR EQUIPMENT 0.49%
Cypress Semiconductor* 300 15,825
Electroglas Inc* 300 21,750
-----------
37,575
-----------
STEEL 0.56%
Armco Inc* 2,000 13,250
J&L Specialty Steel 400 8,850
Nucor Corp 400 21,500
-----------
43,600
-----------
TELECOMMUNICATIONS 1.34%
AT&T Corp 1,200 63,300
CellStar Corp* 200 6,325
Cellular Communications Class A* 200 10,400
Sprint Corp 700 23,975
-----------
104,000
-----------
<PAGE>
TEXTILES & APPAREL
MANUFACTURERS 0.37%
Benetton Group SpA ADR 100 2,000
Springs Industries Class A 300 11,775
Westpoint Stevens* 500 10,687
Winsor Industrial ADR 700 4,161
-----------
28,623
-----------
TOBACCO 0.74%
Philip Morris 800 57,300
-----------
TRANSPORTATION 0.98%
Alaska Air Group* 300 5,775
Burlington Northern 800 55,400
Mayne Nickless Ltd ADR 100 2,173
Wisconsin Central Transportation* 200 12,700
-----------
76,048
-----------
UTILITIES 3.54%
Ameritech Corp 500 24,188
British Telecommunications
PLC ADR 300 19,088
Commonwealth Energy Systems 200 7,375
Eastern Utilities Associates 300 6,525
Empresa Nacional de Electricidad
SA Sponsored ADR 300 15,825
GTE Corp 1,000 35,500
General Public Utilities 500 14,438
MidAmerican Energy* 735 10,657
NICOR Inc 900 22,837
PacifiCorp 2,800 51,450
PowerGen PLC Sponsored ADR 250 8,844
SBC Communications 500 24,062
Sierra Pacific Resources 400 8,650
Southern Electric Sponsored ADR 300 6,663
Southern New England
Telecommunications 400 13,700
Telefonica de Espana SA
Sponsored ADR 100 4,088
-----------
273,890
-----------
WHOLESALE 0.61%
Bindley Western Industries 500 7,813
Inchcape Berhad ADR 7,700 25,676
Richfood Holdings Class A 600 13,950
-----------
47,439
-----------
TOTAL COMMON STOCKS
(Cost $4,494,974) 5,172,506
-----------
FIXED INCOME SECURITIES 16.44%
US Government Obligations 8.65%
US Treasury Notes
8.500%, 11/15/2000 $150,000 165,281
6.500%, 4/30/1999 $65,000 65,792
6.250%, 2/15/2003 $175,000 173,469
US Treasury Bonds
8.750%, 5/15/2017 $220,000 264,618
-----------
<PAGE>
TOTAL US GOVERNMENT
OBLIGATIONS (Cost $631,986) 669,160
-----------
US Government Agency Obligations 2.59%
Federal Home Loan Mortgage
Participation Certificates
Principal Only
2/15/2024 $22,587 10,503
Federal National Mortgage
Association, Guaranteed
Pass-Through Certificates
6.000%, 3/1/2009 $58,879 56,671
6.000%, 4/1/2024 $49,334 45,871
Federal National Mortgage
Association, Pool
7.000%, 8/25/2016 $50,000 47,270
5.450%, 6/25/2000 $40,319 40,009
-----------
TOTAL US GOVERNMENT AGENCY
OBLIGATIONS
(Cost $193,028) 200,324
-----------
Foreign Government Obligations 0.40%
Manitoba Province, Deb, Series AZ
7.750%, 7/17/2016
(Cost $30,436) $30,000 30,819
-----------
Corporate Bonds 4.48%
BANKING 0.96%
NationsBank Corp, Sr Notes
4.750%, 8/15/1996 $25,000 24,653
Norwest Corp, Medium-Term
Notes, 6.112%, 2/24/1999 $50,000 49,762
-----------
74,415
-----------
FINANCE RELATED 2.23%
Associates Corp of North America
Sr Deb, Series A, 7.950%, 2/15/2010 $50,000 53,436
AVCO Financial Services, Notes
7.500%, 11/15/1996 $35,000 35,571
Commercial Credit, Notes
8.000%, 9/1/1996 $60,000 61,137
General Motors Acceptance, Notes
8.875%, 6/1/2010 $20,000 22,626
-----------
172,770
-----------
POLLUTION CONTROL RELATED 0.54%
WMX Technologies, Step Up
Notes,^^ 6.220%, 4/30/2004 $40,000 41,769
-----------
UTILITIES 0.75%
GTE Corp, Deb
10.250%, 11/1/2020 $50,000 57,677
-----------
TOTAL CORPORATE BONDS
(Cost $336,510) 346,631
-----------
<PAGE>
Asset-Backed Securities 0.32%
FINANCE RELATED 0.32%
Money Store Home Equity Trust
Series 1994B, Class A3
7.100%, 11/15/2016
(Cost $23,906) $25,000 25,139
-----------
TOTAL FIXED INCOME SECURITIES
(Cost $1,215,866) 1,272,073
-----------
SHORT-TERM INVESTMENTS 16.72%
US Government Obligations 2.57%
US Treasury Notes
4.250%, 12/31/1995
(Cost $198,996) $200,000 198,875
-----------
Corporate Bonds 1.03%
FINANCE RELATED 0.77%
American General Finance, Sr
Notes, 5.000%, 6/15/1996 $20,000 19,813
Associates Corp of North America
Notes, 4.500%, 2/15/1996 $20,000 19,842
International Lease Finance, Notes
6.625%, 6/1/1996 $20,000 20,049
-----------
59,704
-----------
INVESTMENT BROKERS 0.26%
Bear Stearns, Notes
5.875%, 1/15/1996 $20,000 19,970
-----------
TOTAL CORPORATE BONDS
(Cost $79,997) 79,674
-----------
Repurchase Agreements 13.12%
Repurchase Agreement
with State Street Bank
& Trust Co dated
7/31/1995 due 8/1/1995
at 5.250%, repurchased at
$1,015,148 (Collateralized
by US Treasury Notes due
6/30/1996 at 6.000%, value
$1,037,627)
(Cost $1,015,000) $1,015,000 1,015,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,293,993) 1,293,549
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $7,004,833)
(Cost for Income Tax Purposes
$7,020,760) $7,738,128
===========
<PAGE>
^^ 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.
* Security is non-income producing.
^ The following is a restricted security at July 31, 1995:
Value as
Acquisition Acquisition % of
Description Date Cost Net Assets
-------------------------------------------------------------------------------
Balanced Fund
Qantas Airways Ltd ADR 7/31/95 $ 972,660 2.57%
========
Summary of Investments by Country
% of
Country Investment
Country Code Securities Value
-------------------------------------------------------------------------------
Balanced Fund
Australia AS 2.56% $958,360
Bermuda BD 1.03 385,125
Canada CA 12.42 4,652,142
Hong Kong HK 0.60 225,639
United Kingdom UK 1.21 452,248
United States US 82.18 30,779,822
=======================
100.00% $37,453,336
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Assets and Liabilities
July 31, 1995
Balanced Multi-Asset
Fund Allocation Fund
--------------- ---------------
ASSETS
Investment Securities:
At Cost~ $34,841,687 $ 7,004,833
=============== ===============
At Value~ $37,453,336 $ 7,738,128
Cash 0 5,948
Receivables:
Investment Securities Sold 1,837,189 8,426
Fund Shares Sold 168,188 3,545
Dividends and Interest 108,267 34,402
Prepaid Expenses and Other Assets 17,606 10,968
--------------- ---------------
TOTAL ASSETS 39,584,586 7,801,417
--------------- ---------------
LIABILITIES
Payables:
Custodian 524,069 0
Distributions to Shareholders 4,763 869
Investment Securities Purchased 1,610,235 0
Fund Shares Repurchased 200,430 7,641
Accrued Distribution Expenses 7,734 1,609
Accrued Expenses and Other Payables 13,844 12,934
--------------- ---------------
TOTAL LIABILITIES 2,361,075 23,053
--------------- ---------------
Net Assets at Value $37,223,511 $7,778,364
=============== ===============
NET ASSETS
Paid-in Capital* $33,472,688 $7,029,840
Accumulated Undistributed
Net Investment Income 906 2,129
Accumulated Undistributed Net
Realized Gain on Investment Securities 1,138,252 13,100
Net Appreciation of Investment Securities 2,611,665 733,295
--------------- ---------------
Net Assets at Value $37,223,511 $ 7,778,364
=============== ===============
Shares Outstanding 3,080,421 717,499
Net Asset Value, Offering and
Redemption Price per Share $12.08 $10.84
=============== ===============
~ Investment securities at cost and value at July 31, 1995 include repurchase
agreements of $1,275,000 and $1,015,000 for the Balanced and Multi-Asset
Allocation Funds, respectively.
* The Fund has 500 million authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to each
individual Fund.
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Operations
Year Ended July 31, 1995
Balanced Multi-Asset
Fund Allocation Fund
--------------- ---------------
INVESTMENT INCOME
INCOME
Dividends $311,299 $125,959
Interest 503,609 159,166
--------------- ---------------
TOTAL INCOME 814,908 285,125
--------------- ---------------
EXPENSES
Investment Advisory Fees 109,635 47,678
Distribution Expenses 46,766 15,893
Transfer Agent Fees 56,538 18,599
Administrative Fees 12,806 10,954
Custodian Fees and Expenses 5,123 4,098
Directors' Fees and Expenses 6,482 4,325
Professional Fees and Expenses 13,128 13,127
Registration Fees and Expenses 33,033 31,619
Reports to Shareholders 10,367 5,431
Other Expenses 3,464 5,261
--------------- ---------------
TOTAL EXPENSES 297,342 156,985
--------------- ---------------
Fees and Expenses Absorbed by Investment Adviser (65,969) (61,628)
NET EXPENSES 231,373 95,357
--------------- ---------------
NET INVESTMENT INCOME 583,535 189,768
--------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on Investment Securities 1,418,230 29,725
Change in Net Appreciation of
Investment Securities 2,592,041 760,284
--------------- ---------------
NET GAIN ON INVESTMENT SECURITIES 4,010,271 790,009
--------------- ---------------
Net Increase in Net Assets from Operations $4,593,806 $979,777
=============== ===============
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Changes in Net Assets
Balanced Multi-Asset
Fund Allocation Fund
Year Period Year Period
Ended Ended Ended Ended
July 31 July 31 July 31 July 31
---------- ---------- --------------------
1995 1994 1995 1994
(Note 1) (Note 1)
OPERATIONS
Net Investment Income $583,535 $43,557 $189,768 $29,828
Net Realized Gain (Loss)
on Investment Securities 1,418,230 1,755 29,725 (16,411)
Change in Net Appreciation
(Depreciation) of Investment
Securities 2,592,041 19,624 760,284 (26,989)
---------- ---------- --------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS 4,593,806 64,936 979,777 (13,572)
---------- ---------- --------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (582,562) (42,885) (188,119) (29,567)
Net Realized Gain on
Investment Securities (282,472) 0 0 0
---------- ---------- --------------------
TOTAL DISTRIBUTIONS (865,034) (42,885) (188,119) (29,567)
---------- ---------- --------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 45,998,807 5,488,322 6,069,861 5,528,079
Reinvestment of Distributions 852,931 42,622 185,398 29,066
---------- ---------- --------------------
46,851,738 5,530,944 6,255,259 5,557,145
Amounts Paid for Repurchases
of Shares (17,609,298) (1,400,696)(4,226,678) (655,881)
---------- ---------- --------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 29,242,440 4,130,248 2,028,581 4,901,264
---------- ---------- --------------------
Total Increase in Net Assets 32,971,212 4,152,299 2,820,239 4,858,125
NET ASSETS
Initial Subscription (Note 1) 0 100,000 0 100,000
Beginning of Period 4,252,299 0 4,958,125 0
---------- ---------- --------------------
End of Period $37,223,511 $4,252,299 $7,778,364$4,958,125
========== ========== ====================
Accumulated Undistributed
Net Investment Income Included
in Net Assets at End of Period $906 $672 $2,129 $261
FUND SHARE TRANSACTIONS
Initial Subscription (Note 1) 0 10,000 0 10,000
Shares Sold 4,158,603 534,118 614,282 566,677
Shares Issued from Reinvestment
of Distributions 76,830 4,140 18,428 3,002
---------- ---------- --------------------
4,235,433 548,258 632,710 579,679
Shares Repurchased (1,568,041) (135,229) (427,487) (67,403)
---------- ---------- --------------------
Net Increase in Fund Shares 2,667,392 413,029 205,223 512,276
========== ========== ====================
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Notes to Financial Statements
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Multiple
Asset, 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, both of which commenced operations 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 dealers making a market for such securities.
Foreign securities are valued at the closing price on the principal stock
exchange on which they are traded. In the event the 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.
If the market quotations or pricing service valuations are not readily
available, securities are valued at fair value as determined in good faith by
the Fund's board of directors. Restricted securities are valued in accordance
with procedures established by the Fund's board of directors.
Short-term securities are stated at amortized cost (which approximates
market value) if maturity is 60 days or less at the time of purchase, or
market value if maturity is greater than 60 days.
B. REPURCHASE AGREEMENTS -- Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to
ensure its market value exceeds the current market value of the repurchase
agreements including accrued interest.
C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date and dividend income is recorded on the ex
dividend date. Certain dividends from foreign securities will be recorded as
soon as the fund is informed of the 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.
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 imposition of adverse foreign
governmental laws or currency exchange restrictions.
Restricted securities held by the Fund may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. The risk of investing in such securities is generally greater than the
risk of investing in the securities of widely held, publicly traded
companies. Lack of a secondary market and resale restrictions may result in
the inability of the Funds to sell a security at a fair price and may
substantially delay the sale of a security which the Fund seeks to sell. In
addition, these securities may exhibit greater price volatility than
securities for which secondary markets exist.
<PAGE>
Investments in securities of governmental agencies may only be guaranteed
by the respective agency's limited authority to borrow from the U.S.
Government and may not be guaranteed by the full faith and credit of the
United States.
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.
Balanced Fund incurred and elected to defer post-October 31 net capital
losses of $11,986 to the year ended July 31, 1996. To the extent future
capital gains are offset by capital loss carryovers, such gains will not be
distributed to shareholders.
Dividends paid by the Fund from net investment income and distributions of
net realized short-term capital gains are, for federal income tax purposes,
taxable as ordinary income to shareholders. Of the ordinary income
distributions declared for the year ended July 31, 1995, 26.05% for Balanced
Fund and 55.14% for Multi-Asset Allocation Fund qualified for the dividends
received deduction available to the Fund's corporate shareholders.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded by the Fund on the ex dividend/distribution date.
The Fund distributes net realized capital gains, if any, to its shareholders
at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments for mortgage-backed securities, market discount, foreign currency
transactions, nontaxable dividends, net operating losses, expiring capital
loss carryforwards. During the year ended July 31, 1995, Balanced Fund
reclassified $739 from accumulated undistributed net investment income to
accumulated undistributed net realized gain on investment securities. During
the year ended July 31, 1995, Multi-Asset Allocation Fund reclassified $5
from paid-in capital to accumulated undistributed net investment income and
$214 from undistributed net realized gain on investment securities to
accumulated undistributed net investment income. Net investment income, net
realized gains and net assets were not affected.
F. 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 of average net
assets; reduced to 0.55% on the next $350 million of average net assets; and
0.50% on 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 of 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 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.
<PAGE>
IFG receives a transfer agent fee at an annual rate of $14.00 per shareholder
account, or per participant in an omnibus account. 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. IFG may pay such fee for participants in omnibus
accounts to affiliates or third parties.
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 twenty-four-month period ending November
30, 1995, and for a rolling twelve-month period thereafter. For the year ended
July 31, 1995, Balanced and Multi-Asset Allocation Funds paid the Distributor
$39,896 and $15,173, 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 year ended July 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:
Fund Purchases Sales
------------------------------------------------------------------------------
--
Balanced Fund $55,247,159 $34,529,126
Multi-Asset Allocation Fund 4,705,477 2,358,437
For the year ended July 31, 1995, the aggregate cost of purchases and
proceeds from sales of U.S. Government securities were:
Fund Purchases Sales
------------------------------------------------------------------------------
--
Balanced Fund $11,763,844 $3,812,224
Multi-Asset Allocation Fund 1,797,545 1,836,202
NOTE 4 -- APPRECIATION AND DEPRECIATION. At July 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 by Fund were as follows:
Gross Gross Net
Fund Appreciation Depreciation Appreciation
------------------------------------------------------------------------------
--
Balanced Fund $2,889,510 $306,591 $2,582,919
Multi-Asset Allocation Fund 797,557 80,189 717,368
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 Balanced Fund for the year ended July 31, 1995, included
in Directors' Fees and Expenses in the Statement of Operations were $257.
Unfunded accrued pension costs for Balanced Fund of $431 and pension liability
of $688 are included in prepaid expenses and accrued expenses, respectively, in
the Statement of Assets and Liabilities. There were no pension expenses for
Multi-Asset Allocation Fund for the year ended July 31, 1995.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding throughout Each Period)
Year Period
Ended Ended
July 31 July 31
------------ -------------
1995 1994^
Balanced Fund
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 10.30 $10.00
------------ ------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.29 0.12
Net Gain on Securities
(Both Realized and Unrealized) 2.03 0.30
------------ ------------
Total from Investment Operations 2.32 0.42
------------ ------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.29 0.12
Distributions from Capital Gains 0.25 0.00
------------ ------------
Total Distributions 0.54 0.12
------------ ------------
Net Asset Value -- End of Period $12.08 $10.30
============ ============
TOTAL RETURN 22.97% 4.16%*
RATIOS
Net Assets -- End of Period ($000 Omitted) $37,224 $4,252
Ratio of Expenses to Average Net Assets# 1.25% 1.25%~
Ratio of Net Investment Income to
Average Net Assets# 3.12% 2.87%~
Portfolio Turnover Rate 255% 61%*
^ From December 1, 1993, commencement of operations, to July 31, 1994.
* 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 year
ended July 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 1.59% and 4.37% (annualized), respectively, and ratio of net
investment income to average net assets would have been 2.77% and (0.25%)
(annualized), respectively.
~ Annualized
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding throughout Each Period)
Year Period
Ended Ended
July 31 July31
------------ ------------
1995 1994^
Multi-Asset Allocation Fund
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 9.68 $10.00
------------ ------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.28 0.06
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.16 (0.32)
------------ ------------
Total from Investment Operations 1.44 (0.26)
------------ ------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.28 0.06
------------ ------------
Net Asset Value -- End of Period $10.84 $9.68
============ ============
TOTAL RETURN 15.13% (2.60%)*
RATIOS
Net Assets -- End of Period ($000 Omitted) $7,778 $4,958
Ratio of Expenses to Average Net Assets# 1.50% 1.50%~
Ratio of Net Investment Income to
Average Net Assets# 2.99% 2.23%~
Portfolio Turnover Rate 79% 42%*
^ From December 1, 1993, commencement of operations, to July 31, 1994.
* 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 year
ended July 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 2.47% and 5.14% (annualized), respectively, and ratio of net
investment income to average net assets would have been 2.02% and (1.41%)
(annualized), respectively.
~ Annualized
<PAGE>
Report of Independent Accountants
To the Board of Directors and Shareholders of
INVESCO Multiple Asset Funds, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investment securities, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of INVESCO Balanced Fund and INVESCO
Multi-Asset Allocation Fund (constituting the INVESCO Multiple Asset Funds,
Inc., hereafter referred to as the "Fund") at July 31, 1995, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at July
31, 1995 by correspondence with the custodian and the application of alternative
auditing procedures for unsettled security transactions, provide a reasonable
basis for the opinion expressed above.
Price Waterhouse LLP
Denver, Colorado
September 1, 1995
<PAGE>
INVESCO FUNDS
To receive general information and prospectuses on any of INVESCO's funds or
retirement plans, or to obtain current account or price information,
Call toll-free: 1-800-525-8085
To reach PAL(R), your 24-hour Personal
Account Line, call: 1-800-424-8085
Or write to:
INVESCO Funds Group, Inc., Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied by a current prospectus.
