SEMIANNUAL REPORT
January 31, 1996
INVESCO
MULTIPLE
ASSET
FUNDS,
INC.
Balanced Fund
Multi-Asset Allocation Fund
No-load mutual funds seeking
capital appreciation and current income.
INVESCO FUNDS
<PAGE>
Economic Overview February 1996
1995 will long stand out as a banner year for U.S. investors. The S&P
achieved a total return of 37.44% for the 12 months ended 12/31/95, only the
fourth time in fifteen years the broad market returned over 25%. By other
measures, market results were even more exciting: The Dow Jones Industrial
Average broke 5000 for the first time in history, and fixed-income markets
followed suit, with the Lehman Government/Corporate Bond Index gaining
19.24%.(1)
In January 1996 the stock market whipsawed in the wake of stalled federal
budget negotiations. Yet continuing economic easing by the Fed, including a
0.25% short-term interest rate decrease on 1/31/96, helped the S&P 500 rise to
new heights, ending the month up 3.45%.
Despite strong January performance, this year earnings improvements almost
certainly won't see the dramatic gains enjoyed in 1994 and 1995. While a budget
settlement in Washington seems uncertain, it is expected that the Federal
Reserve will continue to gradually reduce interest rates. We believe this will
lead to a slow-growth trend for the economy, as well as the stock and bond
markets, during 1996.
International Highlights
Europe. European monetary union as agreed to in the Maastricht Treaty
would almost certainly improve the economies of all involved. Recently, however,
doubts have grown that Europe's highly socialistic governments will reach the
mandated 3% maximum budget deficit by 1997. While various deficit-cutting
proposals have been presented by the participating countries, the securities
markets have treated them with varying degrees of confidence, leading to
roller-coaster returns throughout the Continent.
Pacific Basin. Japan appears to be starting its recovery from a year of
disappointments -- from the Kobe earthquake to the trading scandal at Daiwa
Bank. Other Pacific Basin markets such as Hong Kong, Taiwan and Singapore appear
ready to expand after hitting what seems to have been their cyclical bottom.
However, political stress between Taiwan and mainland China has continued to
hamper these markets' performance.
Latin America. Despite continued financial stress relating to the 1994
devaluation of the Mexican peso, Latin American markets have moved dramatically
upward recently in response to renewed emphasis on social reform and
privatization, combined with relative improvements in inflation, Gross Domestic
Product growth, and export activity.
/s/ R. Dalton Sim
- -------------------------------------
R. Dalton Sim, Chairman and President
INVESCO Trust Company
<PAGE>
INVESCO Multiple Asset Funds, Inc.
The following line graphs illustrate the value of a $10,000 investment in
each INVESCO Multiple Asset Fund and the indexes, plus reinvested dividends and
capital gain distributions, if any, for the periods from inception through
1/31/96.(2) The charts and other total return figures cited reflect the funds'
operating expenses. However, the indexes do not have expenses, which would, of
course, have lowered their performance.
International investing is not risk-free. Foreign markets and currencies
fluctuate, and investors may see sudden variations in price per share.
Balanced Fund
Balanced Fund Average Annualized
Total Return as of 1/31/96(2)
1 year 36.80%
-----------------------------------
Since inception (12/93) 21.47%
-----------------------------------
For the six months ended 1/31/96, Balanced Fund achieved a total return of
18.78%, significantly outperforming the S&P 500 and Lehman Government/Corporate
Bond indexes, which rose 14.46% and 7.75%, respectively, for the same period.(2)
As a result of this stellar performance, the fund was ranked number 2 of 237
balanced funds by Lipper Analytical Services for the one-year period ended
1/31/96.(3)
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 and Lehman Government/Corporate Bond Indexes, assuming in
each case reinvestment of all dividends and capital gain distributions,
for the period from inception (12/1/93) through 1/31/96
Strategic Overview
Balanced Fund is managed to seek a high total return, using a combination
of equity and fixed-income vehicles. Our strong performance in equities has been
due primarily to our broad-based emphasis on stocks with increasing earnings,
attractive valuations, and, when possible, superior dividend growth. And, hand
in hand with good stock selection, we have maintained discipline in selling
strong performers as target prices were reached.
While the fund has been diversified across several sectors, recent returns
have benefited from increased weightings in the agricultural industry. Increased
demand for grain worldwide has meant high demand for seed and fertilizer,
leading us to select equities from chemical and other companies providing these
products. Other strongly weighted areas during the last six months have included
insurance and basic materials.
<PAGE>
Graph: Portfolio Diversification by Value of Total Net Assets(4)
This bar graph reflects the allocation of the Balanced Fund's portfolio as
a percentage of total net assets in Fixed-Income, Basic Materials, Capital
Goods & Construction, Consumer Cyclical, Consumer Staples, Energy,
Finance, Technology, Transportation & Services, Utilites, and Net Cash &
Short-Term
as of 1/31/95, 7/31/95 and 1/31/96.
On the fixed-income side, our performance benefited from a focus on
seeking a high return, with minimal relative credit risk. In our view,
investment-grade corporate bonds are not providing strong returns relative to
more secure U.S. Treasury bonds. Therefore, we currently are not participating
in the corporate market.
By contrast, mortgage-backed securities are trading at somewhat above
average levels relative to comparable Treasury bonds. This means that, compared
to the relative risk, we feel we are receiving above-market returns, and have
placed approximately 9% of the portfolio into these obligations.
Looking Forward
The fund is positioned defensively in the face of a projected U.S.
economic softening. We have diversified equity holdings across a broad range of
industries, as well as holding realized gains from stock sales in bonds and
cash.
Fund Managers
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
For the six months ended 1/31/96, Multi-Asset Allocation Fund had a total
return of 9.50%.(2) This return was achieved in a portfolio which is measured
against a variety of indexes, several examples of which are included in this
report.
For example, large-capitalization stocks, as measured by the S&P 500,
returned 14.46% for the same period.
At the same time, smaller-capitalization stocks returned 6.01% based on
the Russell 2000 index, and bonds returned 7.75% according to the Lehman
Government/Corporate Bond Index.(1)
<PAGE>
When taken as a whole, the fund outperformed our Multi-Asset Index, which
returned 8.8% for the six-month period measured. This index separately measures
each area into which we allocate funds, and weights the returns to develop a
more exact measure of our performance.(2)
Strategic Overview
The Multi-Asset Allocation Fund allows investors to gain exposure to six
asset classes. While there is flexibility, we typically allocate 25% to
fixed-income, 35% to large-cap stocks, 10% to small-cap, 10% to real estate, 10%
to international, and 10% to cash. The fund seeks superior returns from our
ability to allocate between and manage within the different asset classes. The
result is a portfolio that provides broad diversification to help reduce risk.
Multi-Asset Allocation Fund Average Annualized
Total Return as of 1/31/96(2)
1 year 26.14%
-----------------------------------
Since inception (12/93) 9.93%
-----------------------------------
Large-cap ($1 billion or greater) stocks represented roughly half the
portfolio for the six-month period measured. These stocks provide access to
solid performers from among America's largest companies, and aided the fund's
results, particularly in December and January.
The remainder of the portfolio has been allocated among
smaller-capitalization, international, and real-estate equities. These asset
classes have each represented 15% to 20% of the portfolio during the six-month
period measured.
Small-cap (below $1 billion) equities, over the long-term, have
outperformed their larger-cap peers. During the past six months, performance in
this sector has been mixed. Overall, Multi-Asset Allocation's equities in this
category provided returns above the benchmark Russell 2000 small-cap index.
Real estate investments have contributed current income and upward price
momentum from booming regional economies. Recently, however, this portion of the
fund has slightly under-performed the NAREIT index, as a result of lower returns
from several retail real estate properties.
Foreign securities benefit from growth trends around the world. While
recent international returns were outstripped by stellar U.S. performance, this
asset class has provided positive returns for the fund.
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 and Lehman Government/Corporate Bond
Indexes, assuming in each case reinvestment of all dividends and capital
gain distributions, for the period from inception (12/1/93) through
1/31/96
<PAGE>
Fixed-income investments seek to provide the portfolio with stability and
consistent income. Performance for the past six months has been strong, due
primarily to a slightly longer average maturity relative to the market index.
Looking Forward
In February we increased our allocations among small-cap and foreign
stocks, in anticipation that these markets will outperform others in the current
economic climate.
Fund Management
Multi-Asset Allocation Fund is managed by a team of specialists with
expertise in the various asset classes in which the fund invests. Bob Slotpole,
senior vice president and director of equities for INVESCO Management &
Research, Inc., serves as lead portfolio manager for the fund.
He began his investment career in 1975, and joined INVESCO in 1993. Mr.
Slotpole earned an MBA from Stanford University, and a BS from the State
University of New York at Buffalo.
In addition, when evaluating individual markets, the Multi-Asset
Allocation team is able to tap into the expertise of sister INVESCO companies,
such as INVESCO Realty Advisors and INVESCO Capital Management.
(1) The S&P 500 and Dow Jones Industrial Average are unmanaged indexes
considered representative of the performance of the broad U.S. stock market. The
Lehman Government/Corporate Index is an unmanaged index representative of the
broad fixed-income market. The Multi-Asset Index Average is compiled by INVESCO
Management and Research, Inc., and is a weighted average which is composed of
the S&P 500, Russell 2000, Lehman Brothers Aggregate Bond, NAREIT Equity REIT,
and EAFE indexes. These indexes measure the broad U.S. stock market, the broad
small-cap stock market, domestic corporate debt averages, the broad U.S. real
estate investment trust market, and European, Australian and Far Eastern market
performance, respectively.
(2) Total return assumes reinvestment of dividends and capital gain
distributions for the periods indicated. Investment return and principal value
will fluctuate so that, when redeemed, an investor's shares may be worth more or
less than when purchased. Of course, past performance is not a guarantee of
future results.
(3) Rankings provided by Lipper Analytical Services, an independent fund
analyst, are based on total return performance unadjusted for commissions.
(4) Holdings are subject to change.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Ten Largest Common Stock Holdings
January 31, 1996
Description Value
- ------------------------------------------------------------------------------
BALANCED Fund
Potlatch Corp $3,985,312
Granada Group PLC 3,889,314
U S WEST Communications Group 3,793,500
Agrium Inc 3,246,375
GCR Holdings Ltd 2,790,750
Sonat Inc 2,760,000
Weyerhaeuser Co 2,260,125
ARCO Chemical 2,183,937
Santa Fe Pacific Gold 2,145,125
SANDOZ AG Ltd Registered Shrs 2,084,456
MULTI-ASSET ALLOCATION Fund
International Business Machines $119,625
Royal Dutch Petroleum 5 Gldr Shrs 83,400
Pfizer Inc 82,500
Public Storage 81,500
AT&T Corp 80,250
Ford Motor 79,987
Pharmacia & Upjohn 78,934
Chevron Corp 77,813
Mobil Corp 77,525
American International Group 77,500
Composition of holdings is subject to change.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Investment Securities
January 31, 1996
UNAUDITED
Country Code Shares or
if Principal
Description Non US Amount Value
- ------------------------------------------------------------------------------
BALANCED Fund
COMMON STOCKS 51.01%
AUDIO/VIDEO RELATED 3.71%
Granada Group PLC UK 360,000 $3,889,314
BROADCASTING 2.13%
Scottish Television PLC UK 146,200 1,093,496
Television Broadcasts Ltd HK 316,700 1,138,681
------------
2,232,177
------------
CHEMICALS 5.18%
Agrium Inc CA 236,100 3,246,375
ARCO Chemical 42,100 2,183,937
------------
5,430,312
------------
COMPUTER RELATED 0.93%
Geodynamics Corp 88,000 979,000
------------
FOOD PRODUCTS & BEVERAGES 0.10%
Tingyi Cayman Islands
Holding ADR*^ CH 480,000 104,294
------------
INSURANCE 6.75%
GCR Holdings Ltd* 122,000 2,790,750
Guarantee Life* 50,000 812,500
Harleysville Group 26,000 780,000
LaSalle Re Holdings Ltd* BD 55,000 1,292,500
Liberty Corp 40,000 1,395,000
------------
7,070,750
------------
MEDICAL RELATED - DRUGS 8.21%
Abbott Laboratories 35,000 1,478,750
Astra AB Series B Shrs SW 30,000 1,202,594
Boots Co PLC UK 130,000 1,222,777
Bristol-Myers Squibb 15,000 1,327,500
Glaxo Wellcome PLC
Sponsored ADR UK 44,300 1,290,238
SANDOZ AG Ltd Registered Shrs SZ 2,400 2,084,456
------------
8,606,315
------------
<PAGE>
METALS & MINING 5.69%
Euro-Nevada Mining CA 3,500 134,177
Miramar Mining* CA 125,000 750,000
Royal Oak Mines* CA 308,000 1,347,500
Santa Fe Pacific Gold 131,000 2,145,125
Viceroy Resources* CA 300,000 1,580,696
------------
5,957,498
------------
OIL & GAS RELATED 4.10%
Panaco Inc* 287,700 1,204,744
Phillips Petroleum 10,000 326,250
Sonat Inc 80,000 2,760,000
------------
4,290,994
------------
PAPER & PAPER PRODUCTS 5.96%
Potlatch Corp 97,507 3,985,312
Weyerhaeuser Co 49,000 2,260,125
------------
6,245,437
------------
RETAIL 0.82%
Price/Costco Inc* 55,000 859,375
------------
SHIP BUILDING 0.08%
Avondale Industries* 5,000 88,125
------------
TRANSPORTATION 1.82%
Canadian National Railway
Represented by Installment
Receipts* CA 41,750 735,844
Illinois Central Series A 31,100 1,174,025
------------
1,909,869
------------
UTILITIES 5.53%
Pacific Telesis Group 68,000 2,006,000
U S WEST Communications Group 108,000 3,793,500
------------
5,799,500
------------
TOTAL COMMON STOCKS
(Cost $50,024,721) 53,462,960
------------
PREFERRED STOCKS 2.28%
INSURANCE 2.28%
Berkley (W R) Corp, Depository
Shrs Representing 1/6 Shr,
7.375% Series A Pfd
(Cost $2,253,125) 95,000 2,386,875
------------
<PAGE>
FIXED INCOME SECURITIES 25.05%
US Government Obligations 16.24%
US Treasury Bonds
7.625%, 2/15/2025+ 4,000,000 4,845,000
US Treasury Notes
6.500%, 5/15/2005 1,000,000 1,063,750
6.125%, 5/31/1997 2,000,000 2,028,122
5.625%, 10/31/1997 2,000,000 2,021,250
5.500%, 12/31/2000 4,000,000 4,041,244
5.375%, 11/30/1997 3,000,000 3,021,558
------------
TOTAL US GOVERNMENT
OBLIGATIONS (Cost $16,800,206) 17,020,924
------------
US Government Agency Obligations 8.81%
Federal Home Loan Mortgage
Participiation Certificates
7.000%, 8/1/2010 949,264 969,605
6.500%, 6/1/2010 1,878,062 1,896,052
6.500%, 8/1/2010 1,934,355 1,950,215
6.500%, 10/1/2010 1,938,505 1,954,399
6.500%, 11/1/2010 1,947,900 1,963,871
Student Loan Marketing
Association, Notes
Series CQ 4.570%, 3/7/2001 500,000 496,422
------------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $9,070,054) 9,230,564
------------
TOTAL FIXED INCOME SECURITIES
(Cost $25,870,260) 26,251,488
------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 21.66%
Repurchase Agreement with State
Street Bank & Trust Co
dated 1/31/1996 due 2/1/1996
at 5.750%, repurchased at
$22,710,627 (Collateralized
by US Treasury Bonds due
11/15/2022 at 7.625%, value
$23,203,204)
(Cost $22,707,000) 22,707,000 22,707,000
------------
TOTAL INVESTMENT SECURITIES
AT VALUE 100.00%
(Cost $100,855,106)
(Cost for Income Tax
Purposes 100,871,172) 104,808,323
------------
<PAGE>
MULTI-ASSET ALLOCATION Fund
COMMON STOCKS 63.61%
ADVERTISING 0.10%
Heritage Media Class A* 200 6,025
True North Communications 200 3,675
------------
9,700
------------
AEROSPACE & DEFENSE 0.85%
Lockheed Martin 389 29,321
McDonnell Douglas 400 35,600
Precision Castparts 200 7,975
Thiokol Corp 100 3,537
Watkins-Johnson Co 200 7,700
------------
84,133
------------
AUDIO/VIDEO RELATED 0.44%
Fuji Photo Film Ltd ADR 700 39,462
Harman International Industries 100 3,837
------------
43,299
------------
AUTOMOBILE RELATED 1.43%
Borg-Warner Automotive 100 2,900
Eaton Corp 400 23,200
Ford Motor 2,700 79,987
ITT Industries 400 10,400
Toyota Motor ADR 600 25,950
------------
142,437
------------
BANKING 3.87%
Banco Santander SA ADR 700 33,775
Boatmen's Bancshares 900 38,587
CCB Financial 200 10,450
Cal Fed Bancorp* 200 3,125
Centura Banks 100 3,412
Chase Manhattan 700 48,300
Chemical Banking 1,000 67,000
Citicorp 600 44,325
Deposit Guaranty 100 4,300
First Midwest Bancorp 300 8,700
Firstar Corp 154 6,641
Magna Group 700 16,012
Mark Twain Bancshares 300 11,475
National Australia Bank Ltd ADR 800 38,500
NationsBank Corp 500 34,937
Summit Bancorp 400 12,900
Union Planters 100 3,050
------------
385,489
------------
<PAGE>
BIOTECHNOLOGY 0.04%
Cephalon Inc* 100 2,475
Regeneron Pharmaceuticals* 100 1,525
------------
4,000
------------
BROADCASTING 0.39%
Capital Cities/ABC 300 38,587
------------
BUILDING & CONSTRUCTION RELATED 0.87%
Fibreboard Corp* 100 2,300
Lowe's Cos 800 24,900
Oakwood Homes 400 17,900
Pioneer International Ltd
Sponsored ADR 2,600 7,300
Sekisui House Ltd ADR 200 25,441
Southdown Inc* 300 6,412
US Home* 100 2,800
------------
87,053
------------
BUSINESS SERVICES 0.10%
Franklin Quest* 400 9,600
------------
CHEMICALS 2.02%
AKZO NV ADR 400 21,275
Bayer AG Sponsored ADR 700 20,936
Cabot Corp 100 5,750
Hercules Inc 600 33,150
Hoechst AG ADR 100 14,769
Morton International 1,100 40,700
Olin Corp 700 57,662
Sterling Chemicals* 600 7,125
------------
201,367
------------
CLEANING PRODUCTS 0.76%
Clorox Co 300 24,787
Procter & Gamble 600 50,325
------------
75,112
------------
COMPUTER RELATED 2.85%
Acxiom Corp* 100 2,750
BancTec Inc* 300 5,400
Computer Associates International 450 30,769
Computervision Corp* 200 2,475
Comverse Technology* 200 3,875
Continuum Co* 200 7,875
Gerber Scientific 1,000 15,625
Integrated Systems* 200 7,750
International Business Machines 1,100 119,625
Microsoft Corp* 200 18,500
National Data 300 6,750
<PAGE>
Network Equipment Technologies* 100 2,762
Network General* 100 4,000
Read-Rite Corp* 2,600 46,800
System Software Associates 150 3,384
Trident Microsystems* 100 1,375
Wang Laboratories* 200 3,725
------------
283,440
------------
CONTAINERS 0.68%
Amcor Ltd Sponsored ADR 800 23,700
Premark International 400 20,700
Sealed Air* 300 8,812
West Co 600 14,850
------------
68,062
------------
CONTROL INSTRUMENTS 0.15%
Measurex Corp 500 14,812
------------
COSMETICS & TOILETRIES 0.18%
Alberto-Culver Co Class B 300 10,800
Carter-Wallace Inc 500 7,187
------------
17,987
------------
DIVERSIFIED COMPANIES 1.97%
du Pont (E I) de Nemours 500 38,437
ITT Corp 400 22,200
Laidlaw Inc Class B 2,100 22,050
Loews Corp 800 66,100
Textron Inc 600 47,175
------------
195,962
------------
ELECTRONICS 1.45%
AMETEK Inc 400 6,750
Arrow Electronics* 400 17,200
Intel Corp 400 22,094
KEMET Corp* 300 8,212
Logicon Inc 200 5,475
Marshall Industries* 300 9,562
Matsushita Electric Industrial ADR 100 16,650
Park Electrochemical 200 6,475
Philips Electronics NV
New York Shrs 200 8,025
SCI Systems* 200 7,325
Symbol Technologies* 200 6,675
TDK Corp ADR 300 15,037
Teleflex Inc 200 8,050
Wyle Electronics 200 6,050
------------
143,580
------------
<PAGE>
ENGINEERING 0.06%
Jacobs Engineering Group* 200 5,450
------------
FINANCE RELATED 1.06%
American Express 800 36,800
CMAC Investment 100 5,750
Federal Home Loan Mortgage 400 34,250
FINOVA Group 200 10,100
Inter-Regional Financial Group 150 3,262
PHH Corp 300 15,450
------------
105,612
------------
FOOD PRODUCTS & BEVERAGES 4.08%
Anheuser-Busch Cos 300 20,850
Bass PLC ADR 400 9,000
Coca-Cola Co 1,000 75,375
Coors (Adolph) Co Class B 400 9,600
Dean Foods 2,200 58,575
GoodMark Foods 300 4,912
Heineken NV ADR 125 22,248
Kirin Brewery Ltd ADR 200 24,500
Moet Hennessy Louis Vuitton
Sponsored ADR 700 30,887
Nestle SA Sponsored ADR
Representing Registerd Shrs 400 21,072
Ralcorp Holdings* 200 5,375
Sara Lee 1,300 43,875
Unigate PLC ADR 5,600 36,554
Unilever NV New York Shrs 300 43,462
------------
406,285
------------
FURNITURE 0.06%
La-Z-Boy Chair 200 6,300
------------
GLASS & CERAMIC PRODUCTS 0.02%
Libbey Inc 100 2,050
------------
HEALTH CARE RELATED 0.27%
Medaphis Corp* 200 8,000
Sierra Health Services* 100 3,400
Universal Health Services
Class B* 300 14,962
------------
26,362
------------
INSURANCE 2.84%
ACE Ltd 1,500 66,187
AEGON NV ADR 1,250 51,875
American Bankers
Insurance Group 300 10,050
American International Group 800 77,500
Commerce Group 400 7,750
<PAGE>
Fremont General 330 11,880
ITT Hartford Group* 400 20,050
NAC Re 200 6,800
Protective Life 500 17,375
United Cos Financial 200 5,700
Vesta Insurance Group 150 4,387
Willis Corroon Group PLC ADR 300 3,525
------------
283,079
------------
INVESTMENT BROKERS 0.15%
Alex Brown 300 14,625
------------
JEWELRY 0.28%
Tiffany & Co 500 27,688
------------
MACHINERY 0.52%
Caterpillar Inc 400 25,750
Greenfield Industries 100 2,850
Harnischfeger Industries 200 6,775
JLG Industries 200 5,325
Kennametal Inc 200 5,750
Pentair Inc 100 5,250
------------
51,700
------------
MANUFACTURING 0.07%
Watts Industries Class A 400 6,950
------------
MEDICAL RELATED 2.39%
Advanced TechnologyLaboratories* 500 13,625
AMSCO International* 300 4,275
Baxter International 800 36,400
Bio-Rad Laboratories Class A* 100 4,025
Datascope Corp* 200 4,950
Invacare Corp 200 5,700
Johnson & Johnson 700 67,200
Mentor Corp 200 5,625
Nellcor Puritan Bennett* 100 6,200
Pharmacia & Upjohn* 1,885 78,934
Physicians Health Services* 100 3,600
Vivra Inc* 300 7,575
------------
238,109
------------
MEDICAL RELATED - DRUGS 2.69%
Bergen Brunswig Class A 200 5,275
CIBA-GEIGY Ltd Sponsored ADR 900 37,521
Glaxo Wellcome PLC Sponsored ADR 1,000 29,125
McKesson Corp 600 30,000
Novo-Nordisk A/S ADR 1,100 35,750
<PAGE>
Pfizer Inc 1,200 82,500
Schering-Plough Corp 800 43,300
Watson Pharmaceuticals* 100 4,575
------------
268,046
------------
METALS & MINING 0.70%
ASARCO Inc 600 19,050
Carpenter Technology 200 7,600
Cleveland-Cliffs Inc 100 4,363
J&L Specialty Steel 400 7,100
Nucor Corp 400 23,250
Zeigler Coal Holding 600 8,250
------------
69,613
------------
OFFICE EQUIPMENT 0.29%
Canon Inc ADR 300 28,500
------------
OIL & GAS RELATED 4.36%
BJ Services* 100 2,675
Baker Hughes 1,000 25,875
Camco International 200 5,350
Chevron Corp 1,500 77,813
Coastal Corp 800 30,300
Elf Aquitaine Sponsored ADR 700 26,163
Exxon Corp 200 16,050
Louis Dreyfus Natural Gas* 200 2,475
Mobil Corp 700 77,525
Repsol SA Sponsored ADR 600 20,925
Royal Dutch Petroleum
5 Gldr Shrs 600 83,400
Shell Transport & Trading
PLC New York Shrs 400 31,550
Sonat Offshore Drilling 500 23,063
Tesoro Petroleum* 600 5,100
Weatherford Enterra* 200 5,950
------------
434,214
------------
PAPER & PAPER PRODUCTS 0.58%
Chesapeake Corp 300 8,513
International Paper 1,200 49,050
------------
57,563
------------
PHOTO EQUIPMENT 0.29%
Eastman Kodak 400 29,350
------------
POLLUTION CONTROL RELATED 0.04%
Sanifill Inc* 100 3,638
------------
<PAGE>
PRINTING & PUBLISHING 0.43%
Media General Class A 200 6,675
Meredith Corp 300 13,650
Scholastic Corp* 100 7,300
South China Morning Post ADR 4,300 15,154
------------
42,779
------------
REAL ESTATE RELATED 13.55%
Bay Apartment Communities 2,000 47,750
Beacon Properties 1,500 37,313
CBL & Associates Properties 2,000 41,000
Cali Realty 1,200 25,950
CenterPoint Properties 1,400 33,250
Chelsea GCA Realty 900 26,100
Colonial Properties Trust SBI 1,600 39,400
Crown American Realty Trust 6,100 47,275
Duke Realty Investments 2,000 64,250
Equity Residential Properties
Trust SBI 1,300 39,975
FelCor Suite Hotels 1,200 35,850
Gables Residential Trust SBI 1,600 37,000
Glimcher Realty Trust 1,700 26,138
HGI Realty 1,276 27,913
Highwoods Properties 1,400 42,700
JDN Realty 1,600 36,800
Kimco Realty 1,450 37,700
Koger Equity* 2,600 31,200
Liberty Property Trust SBI 2,400 53,100
MGI Properties 2,200 37,400
Meditrust SBI 600 20,925
Merry Land & Investment 800 18,400
Nationwide Health Properties 500 21,250
Oasis Residential 1,400 33,250
Patriot American Hospitality* 1,700 46,750
Price REIT 800 24,200
Public Storage 4,000 81,500
ROC Communities 600 14,775
Regency Realty 1,300 21,613
Shurgard Storage Centers Class A 1,200 32,400
Sizeler Property Investors 1,900 17,100
South West Property Trust 2,200 30,800
Spieker Properties 500 12,563
Starwood Lodging Trust 1,700 54,613
Summit Properties 900 17,663
Sun Communities 1,200 33,000
Tucker Properties 1,600 15,200
Weeks Corp 1,200 31,500
Wellsford Residential
Property Trust SBI 2,300 53,188
------------
1,348,754
------------
<PAGE>
RECREATION PRODUCTS & SERVICES 0.67%
Arctco Inc 300 3,338
Disney (Walt) Co 600 38,550
GTECH Holdings* 700 18,988
Outboard Marine 300 6,000
------------
66,876
------------
RETAIL 2.42%
Apple South 400 7,050
Applebee's International 200 3,725
CompUSA Inc* 200 7,100
Consolidated Stores* 2,000 40,000
Dayton Hudson 400 29,900
Koninklijke Ahold NV Sponsored ADR 714 29,274
Marui Co Ltd ADR* 600 23,458
McDonald's Corp 800 40,200
Penney (J C) Co 600 29,400
Smith's Food & Drug Centers Class B 700 17,763
Stanhome Inc 200 5,350
Tech Data* 300 4,088
Waban Inc* 200 3,850
------------
241,158
------------
SAVINGS & LOAN 0.22%
ALBANK Financial 300 8,438
Charter One Financial 100 3,163
North Side Savings Bank 115 3,450
TCF Financial 200 6,575
------------
21,626
------------
SEMICONDUCTOR EQUIPMENT 0.06%
Dallas Semiconductor 300 6,375
------------
TELECOMMUNICATIONS 1.46%
AT&T Corp 1,200 80,250
Aspect Telecommunications* 200 7,400
Cellular Communications Class A* 100 4,938
PictureTel Corp* 100 3,913
Sprint Corp 700 30,188
STET-Societa Finanziaria
Telefonica SpA Sponsored ADR 600 18,675
------------
145,364
------------
TEXTILES & APPAREL MANUFACTURERS 0.20%
G & K Services Class A 200 5,000
Nautica Enterprises* 100 3,900
Springs Industries Class A 200 8,000
Winsor Industrial ADR 700 3,418
------------
20,318
------------
<PAGE>
TOBACCO 0.75%
Philip Morris 800 74,400
------------
TRANSPORTATION 0.90%
Airborne Freight 200 5,325
Alaska Air Group* 300 5,925
Burlington Northern Santa Fe 500 40,938
Comair Holdings 600 14,775
Mayne Nickless Ltd ADR 100 2,227
Swire Pacific Ltd Sponsored ADR
Representing Class A Shrs 2,000 17,460
USAir Group* 200 3,000
------------
89,650
------------
UTILITIES 3.63%
Ameritech Corp 500 30,063
British Telecommunications
PLC ADR 300 16,163
Cincinnati Bell 800 26,000
Commonwealth Energy Systems SBI 200 9,350
Empresa Nacional de Electricidad
SA Sponsored ADR 300 16,500
GTE Corp 1,000 46,000
General Public Utilities 800 27,200
IES Industries 300 8,550
MCN Corp 1,200 29,550
MidAmerican Energy 1,600 27,600
Minnesota Power & Light 200 5,775
National Grid Group PLC
Sponsored ADR* 198 6,013
ONEOK Inc 300 6,263
PacifiCorp 1,300 27,625
PowerGen PLC Sponsored ADR 250 7,938
SBC Communications 1,100 62,288
Southern Electric Sponsored ADR 279 3,491
Telefonica de Espana SA Sponsored ADR 100 4,413
------------
360,782
------------
WHOLESALE 0.42%
Inchcape Berhad ADR 7,700 27,017
Richfood Holdings 600 15,225
------------
42,242
------------
TOTAL COMMON STOCKS
(Cost $5,247,120) 6,330,078
------------
FIXED INCOME SECURITIES 20.41%
US Government Obligations 13.81%
US Treasury Bonds
8.750%, 5/15/2017 295,000 388,294
7.500%, 11/15/2016 30,000 35,025
<PAGE>
US Treasury Notes
8.500%, 11/15/2000 150,000 170,390
7.875%, 11/15/2004 185,000 214,138
7.500%, 11/15/2001 15,000 16,598
6.500%, 4/30/1999 65,000 67,681
6.250%, 5/31/2000 90,000 93,515
6.250%, 2/15/2003 125,000 130,703
5.625%, 6/30/1997 255,000 257,311
------------
TOTAL US GOVERNMENT
OBLIGATIONS (Cost $1,291,632) 1,373,655
------------
US Government Agency Obligations 3.69%
Federal Home Loan Mortgage
Participation Certificates
9.000%, 1/1/2005 36,030 37,834
8.500%, 6/1/2017 60,720 63,723
8.000%, 8/1/2017 45,529 47,267
Prinicpal Only 2/15/2024 22,587 13,453
Federal National Mortgage
Association, Gtd
Pass-Through Certificates
8.500%, 7/1/2001 50,000 51,997
6.000%, 3/1/2009 55,886 55,674
6.000%, 4/1/2024 48,313 46,870
Federal National Mortgage
Association, Pool
7.000%, 8/25/2016 50,000 50,362
------------
TOTAL US GOVERNMENT AGENCY
OBLIGATIONS (Cost $350,034) 367,180
------------
Corporate Bonds 2.65%
BANKING 0.50%
Norwest Corp, Medium-Term
Notes, 6.112%, 2/24/1999 50,000 49,944
------------
FINANCE RELATED 1.10%
Associates Corp of North
America, Sr Deb, Series A
7.950%, 2/15/2010 50,000 57,913
------------
US WEST Capital Funding
Notes, 6.310%, 11/1/2005 50,000 51,329
------------
109,242
------------
POLLUTION CONTROL RELATED 0.44%
WMX Technologies
Step Up Discount Notes^^
6.220%, 4/30/2004 40,000 44,133
------------
<PAGE>
UTILITIES 0.61%
GTE Corp, Deb
10.250%, 11/1/2020 50,000 60,676
------------
TOTAL CORPORATE BONDS
(Cost $242,585) 263,995
------------
Asset-Backed Securities 0.26%
FINANCE RELATED 0.26%
Money Store Home Equity
Trust, Series 1994B, Class A3
7.100%, 11/15/2016 (Cost $23,906) 25,000 25,693
------------
TOTAL FIXED INCOME SECURITIES
(Cost $1,908,157) 2,030,523
------------
SHORT-TERM INVESTMENTS 15.98%
Corporate Bonds 0.60%
FINANCE RELATED 0.60%
American General Finance
Sr Notes, 5.000%, 6/15/1996 20,000 19,978
Associates Corp of North
America, Notes
4.500%, 2/15/1996 20,000 19,995
International Lease Finance
Notes, 6.625%, 6/1/1996 20,000 20,075
------------
TOTAL CORPORATE BONDS
(Cost $60,192) 60,048
------------
Repurchase Agreements 15.38%
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/31/1996 due 2/1/1996
at 5.000%, repurchased at
$1,530,213 (Collateralized
by US Treasury Bonds due
5/15/2017 at 8.750%, value
$1,563,484)
(Cost $1,530,000) 1,530,000 1,530,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,590,192) 1,590,048
------------
TOTAL INVESTMENT SECURITIES AT VALUE 100.00%
(Cost $8,745,469)
(Cost for Income Tax Purposes
$8,761,486) 9,950,649
------------
<PAGE>
* Security is non-income producing.
+ Security has been designated as collateral for installment
receipts.
^^ 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.
^ The following are restricted securities at January 31, 1996:
Value as
Acquisition Acquisition % of
Description Date Cost Net Assets
- ------------------------------------------------------------------------------
Balanced Fund
Tingyi Cayman
Islands Holding ADR 1/29/96 105,337 0.10%
========
Summary of Investments by Country
% of
Country Investment
Country Code Securities Value
- ------------------------------------------------------------------------------
Balanced Fund
Bermuda BD 1.23% 1,292,500
Canada CA 7.44 7,794,592
Hong Kong HK 1.09 1,138,681
Peoples Republic of China CH 0.10 104,294
Sweden SW 1.15 1,202,594
Switzerland SZ 1.99 2,084,456
United Kingdom UK 7.15 7,495,825
United States US 79.85 83,695,381
------------------------
100.00% 104,808,323
========================
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Assets and Liabilities
January 31, 1996
UNAUDITED
Balanced Multi-Asset
Fund Allocation Fund
ASSETS
Investment Securities:
At Cost~ $100,855,106 $8,745,469
=================================
At Value~ $104,808,323 $9,950,649
Cash 799 5,255
Foreign Currency
(Cost $577,966 and $0,
respectively) 577,393 0
Receivables:
Investment Securities Sold 4,656,537 5,304
Fund Shares Sold 388,661 22,114
Dividends and Interest 410,083 37,267
Prepaid Expenses and Other Assets 52,984 46,177
---------------------------------
TOTAL ASSETS 110,894,780 10,066,766
---------------------------------
LIABILITIES
Payables:
Distributions to Shareholders 15,549 157
Investment Securities Purchased 5,025,949 0
Fund Shares Repurchased 360,066 13,690
Accrued Distribution Expenses 20,310 2,075
Accrued Expenses and Other Payables 17,500 12,957
---------------------------------
TOTAL LIABILITIES 5,439,374 28,879
Net Assets at Value 105,455,406 10,037,887
=================================
NET ASSETS
Paid-in Capital* $97,156,616 $8,740,677
Accumulated Undistributed Net
Investment Income 6,740 2,204
Accumulated Undistributed Net
Realized Gain on Investment
Securities and Foreign Currency
Transactions 4,339,677 89,826
Net Appreciation of Investment
Securities and Foreign Currency
Transactions 3,952,373 1,205,180
---------------------------------
Net Assets at Value $105,455,406 $10,037,887
=================================
Shares Outstanding 7,911,559 870,575
Net Asset Value, Offering and
Redemption Price per Share 13.33 11.53
=================================
~ Investment securities at cost and value at January 31, 1996 include
repurchase agreements of $22,707,000 and $1,530,000 for 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
Six Months Ended January 31, 1996
UNAUDITED
Balanced Multi-Asset
Fund Allocation Fund
---------------------------------
INVESTMENT INCOME
INCOME
Dividends $524,951 $88,263
Interest 861,570 96,920
---------------------------------
Foreign Taxes Withheld (5,826) (1,589)
TOTAL INCOME 1,380,695 183,594
---------------------------------
EXPENSES
Investment Advisory Fees 202,617 33,277
Distribution Expenses 84,424 11,092
Transfer Agent Fees 69,946 10,961
Administrative Fees 10,065 5,666
Custodian Fees and Expenses 12,425 5,421
Directors' Fees and Expenses 5,165 4,191
Professional Fees and Expenses 16,675 8,930
Registration Fees and Expenses 21,168 13,490
Reports to Shareholders 14,266 1,872
Other Expenses 4,197 1,320
---------------------------------
TOTAL EXPENSES 440,948 96,220
---------------------------------
Fees and Expenses Absorbed
by Investment Adviser (11,228) (26,970)
Fees and Expenses Paid Indirectly (7,601) (2,695)
---------------------------------
NET EXPENSES 422,119 66,555
---------------------------------
NET INVESTMENT INCOME 958,576 117,039
---------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain on Investment
Securities and Foreign
Currency Transactions 8,250,424 224,650
---------------------------------
Change in Net Appreciation of
Investment Securities and
Foreign Currency Transactions 1,340,708 471,885
---------------------------------
NET GAIN ON INVESTMENT SECURITIES 9,591,132 696,535
---------------------------------
Net Increase in Net Assets
from Operations $10,549,708 $813,574
================================
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Balanced Fund Multi-Asset Allocation Fund
------------------------------ ------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
January 31 July 31 January 31 July 31
------------------------------ ------------------------------
1996 1995 1996 1995
UNAUDITED UNAUDITED
OPERATIONS
<S> <C> <C> <C> <C>
Net Investment Income $958,576 $583,535 $117,039 $ 189,768
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 8,250,424 1,418,230 224,650 29,725
Change in Net Appreciation of Investment Securities
and Foreign Currency Transactions 1,340,708 2,592,041 471,885 760,284
------------------------------ ------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 10,549,708 4,593,806 813,574 979,777
------------------------------ ------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (952,742) (582,562) (116,964) (188,119)
Net Realized Gain on Investment Securities (5,048,999) (282,472) (147,924) 0
------------------------------ ------------------------------
TOTAL DISTRIBUTIONS (6,001,741) (865,034) (264,888) (188,119)
------------------------------ ------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 107,022,925 45,998,807 7,301,493 6,069,861
Reinvestment of Distributions 5,689,401 852,931 260,790 185,398
------------------------------ ------------------------------
112,712,326 46,851,738 7,562,283 6,255,259
Amounts Paid for Repurchases of Shares (49,028,398) (17,609,298) (5,851,446) (4,226,678)
------------------------------ ------------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 63,683,928 29,242,440 1,710,837 2,028,581
Total Increase in Net Assets 68,231,895 32,971,212 2,259,523 2,820,239
------------------------------ ------------------------------
NET ASSETS
Beginning of Period 37,223,511 4,252,299 7,778,364 4,958,125
End of Period 105,455,406 37,223,511 10,037,887 7,778,364
------------------------------ ------------------------------
Accumulated Undistributed Net Investment
Income Included in Net Assets at End of Period 6,740 906 2,204 2,129
------------------------------ ------------------------------
FUND SHARE TRANSACTIONS
Shares Sold 8,075,100 4,158,603 648,335 614,282
Shares Issued from Reinvestment of Distributions 431,129 76,830 23,108 18,428
------------------------------ ------------------------------
8,506,229 4,235,433 671,443 632,710
Shares Repurchased (3,675,091) (1,568,041) (518,367) (427,487)
------------------------------ ------------------------------
Net Increase in Fund Shares 4,831,138 2,667,392 153,076 205,223
============================== ==============================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Multiple
Asset Funds, Inc. (the "Fund"), was incorporated in Maryland on August 19, 1993
and presently consists of two separate Funds: Balanced Fund and Multi-Asset
Allocation Fund. The investment objectives of the Funds are to achieve a high
total return on investment through capital appreciation and current income. The
Fund is registered under the Investment Company Act of 1940 (the "Act") as a
diversified, open-end management investment company.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION - Equity securities traded on national securities
exchanges or in the over-the-counter market are valued at the last sales
price in the market where such securities are primarily traded. If last
sales prices are not available, securities are valued at the highest
closing bid price obtained from one or more dealers making a market for
such securities or by a pricing service approved by the Fund's board of
directors.
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 that closing prices
are not available for foreign securities, prices will be obtained from the
principal stock exchange at or prior to the close of the New York Stock
Exchange. Foreign currency exchange rates are determined daily prior to
the close of the New York Stock Exchange.
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. 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.
<PAGE>
C. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for on the trade date and dividend income is
recorded on the ex dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the
dividend if such information is obtained subsequent to the ex dividend
date. Interest income, which may be comprised of stated coupon rate,
market discount 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 impositions of adverse foreign
governmental laws or currency exchange restrictions. Net realized and
unrealized gain or loss from investments includes fluctuations from
currency exchange rates and fluctuations in market value.
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 Fund to sell a security at
a fair price and may substantially delay the sale of the security which
the Fund seeks to sell. In addition, these securities may exhibit greater
price volatility than securities for which secondary markets exist.
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 and deferred
post-October 31 losses, such gains will not be distributed to
shareholders.
Dividends paid by the Fund from net investment income and
distributions of net realized short-term capital gains are, for federal
income tax purposes, taxable as ordinary income to shareholders.
Investment income received from foreign sources may be subject to
foreign withholding taxes. Dividend and interest income is shown gross of
foreign withholding taxes in the accompanying financial statements.
<PAGE>
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 discounts,
foreign currency transactions, nontaxable dividends, net operating losses
and expired capital loss carryforwards.
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.
Under an agreement between each Fund and the Fund's Custodian,
agreed upon Custodian Fees and Expenses are reduced by credits granted by
the Custodian from any temporarily uninvested cash. Such credits are
included in Fees and Expenses Paid Indirectly in the Statement of
Operations.
NOTE 2 - INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the Fund's investment adviser. As compensation for its
services to the Fund, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. 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% 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.
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 is based upon the
actual number of accounts in existence during each month.
A plan of distribution pursuant to Rule 12b-1 of the Act 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, 1996, Balanced and Multi-Asset Allocation Funds paid the
Distributor $71,848 and $10,626, respectively, for reimbursement of expenses
incurred.
IFG and ITC have voluntarily agreed, in some instances, to absorb certain
fees and expenses incurred by Balanced Fund and IFG and IMR have voluntarily
agreed, in some instances, to absorb certain fees and expenses incurred by
Multi-Asset Allocation Fund.
<PAGE>
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months ended
January 31, 1996, 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 $88,164,763 $68,012,900
Multi-Asset Allocation Fund 2,206,528 1,775,011
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities were as follows:
Fund Purchases Sales
- ----------------------------------------------------------------------
Balanced Fund $21,654,926 $5,483,459
Multi-Asset Allocation Fund 1,533,598 967,337
NOTE 4 - APPRECIATION AND DEPRECIATION. At January 31, 1996, 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 $4,408,005 $470,854 $3,937,151
Multi-Asset Allocation Fund 1,288,293 99,130 1,189,163
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 six months ended January 31, 1996, included in
Directors' Fees and Expenses in the Statement of Operations, and unfunded
accrued pension costs and pension liability included in Prepaid Expenses and
Accrued Expenses, respectively, in the Statement of Assets and Liabilities were
as follows:
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- -------------------------------------------------------------------------------
Balanced Fund $190 $(13) $434
Multi-Asset Allocation Fund 22 (65) (43)
NOTE 6 - LINE OF CREDIT. The Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 10% of the Net Assets at Value of each respective
Fund. Each Fund agrees to pay annual fees and interest on the unpaid principal
balance based on prevailing market rates as defined in the agreement. For the
six months ended January 31, 1996, there were no such borrowings.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Year Period
Ended Ended Ended
January 31 July 31 July 31
------------ ------------ ------------
1996 1995 1994^
UNAUDITED
Balanced Fund
<S> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $12.08 $10.30 $10.00
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.16 0.29 0.12
Net Gain on Securities
(Both Realized and Unrealized) 2.09 2.03 0.30
------------ ------------ ------------
Total from Investment Operations 2.25 2.32 0.42
------------ ------------ ------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.16 0.29 0.12
Distributions from Capital Gains 0.84 0.25 0.00
------------ ------------ ------------
Total Distributions 1.00 0.54 0.12
------------ ------------ ------------
Net Asset Value -
End of Period 13.33 12.08 10.30
============ ============ ============
TOTAL RETURN 18.78%* 23.18% 4.16%*
RATIOS
Net Assets -
End of Period ($000 Omitted) 105,455 37,224 4,252
Ratio of Expenses to Average
Net Assets# 0.64%*@ 1.25% 1.25%~
Ratio of Net Investment Income
to Average Net Assets# 1.43%* 3.12% 2.87%~
Portfolio Turnover Rate 129%* 255% 61%*
<FN>
^ From December 1, 1993, commencement of operations, to July 31, 1994.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG and ITC for the
six months ended January 31, 1996, 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 0.66% (not
annualized), 1.59% and 4.37% (annualized), respectively, and ratio of net
investment income to average net assets would have been 1.41% (not
annualized), 2.77% and (0.25%) (annualized), respectively.
@ Ratio reflects Total Expenses, less Expenses Absorbed by Investment Adviser.
~ Annualized
</FN>
</TABLE>
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Year Period
Ended Ended Ended
January 31 July 31 July 31
------------ ------------ ------------
1996 1995 1994^
UNAUDITED
Multi-Asset Allocation Fund
<S> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $10.84 $9.68 $10.00
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.15 0.28 0.06
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) 0.87 1.16 (0.32)
------------ ------------ ------------
Total from Investment Operations 1.02 1.44 (0.26)
------------ ------------ ------------
LESS DISTRIBUTIONS
Dividends from Net Investment
Income 0.15 0.28 0.06
------------ ------------ ------------
Distributions from Capital Gains 0.18 0.00 0.00
Total Distributions 0.33 0.28 0.06
------------ ------------ ------------
Net Asset Value -
End of Period $11.53 $10.84 $9.68
============ ============ ============
TOTAL RETURN 9.50%* 15.11% (2.60%)*
RATIOS
Net Assets -
End of Period ($000 Omitted) $10,038 $7,778 $4,958
Ratio of Expenses to Average
Net Assets# 0.79%*@ 1.50% 1.50%~
Ratio of Net Investment Income
to Average Net Assets# 1.33%* 2.99% 2.23%~
Portfolio Turnover Rate 36%* 79% 42%*
<FN>
^ From December 1, 1993, commencement of operations, to July 31, 1994.
* Based on operations for the period shown and accordingly, are not
representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG and IMR for the
six months ended January 31, 1996, 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 1.09% (not
annualized), 2.47% and 5.14% (annualized), respectively, and ratio of net
investment income to average net assets would have been 1.02% (not
annualized), 2.02% and (1.41%) (annualized), respectively.
@ Ratio reflects Total Expenses, less Expenses Absorbed by Investment Adviser.
~ Annualized
</FN>
</TABLE>
<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.,(SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
If you're in Denver, pleas visit one of our
convenient Investor Centers:
Cherry Creek, 155-B Fillmore Street;
Denver Tech Center, 7800 East Union
Avenue, Lobby Level
This information must be preceded or
accompanied by an effective prospectus.
