SEMIANNUAL REPORT
January 31, 1997
INVESCO
MULTIPLE ASSET FUNDS, INC.
Balanced Fund
Multi-Asset Allocation Fund
No-load mutual funds seeking capital appreciation and current income.
INVESCO FUNDS
<PAGE>
Market Overview February 1997
Like the stock and bond markets, the U.S. economy has produced startling
numbers in recent years. After moderating during the third quarter 1996, the
expansion again gained steam the following three months, growing at an
annualized rate of 3.9%. Consequently, fears of reigniting inflation -- or
action from the Federal Reserve Board to stave off that threat -- have reemerged
among investors.
The moderate inflation level of about 3% represents a positive factor for
the economy. At the same time, though, the longevity of the current expansion --
over six years -- remains a cause for concern; the post-World War II average is
only four and a half years. Negative growth hasn't been experienced since the
first quarter of 1993. If the growth rate again approaches 5%, many economists
expect the Federal Reserve Board to launch a preemptive strike against
inflation, with the concomitant danger of cutting the expansion short.
Last summer, concern about the Fed and the national elections caused a
pullback in equity markets. Subsequently, with the political status quo
generally maintained vis-a-vis the president and Congress, and the economy
slowing on its own, the S&P 500 resumed its volatile hike upward.
In comparison, investors in fixed-income securities experienced a bumpier
ride in 1996. The second half of the year was smoother, as inflation fears waned
and interest rates stabilized.
1997 is a post-presidential election year, when the stock market often
drops. And, compared to historical levels, valuations for many individual stocks
appear high. Equity markets have been jumpy this winter, responding
instantaneously to the smallest clues about the economy, interest rates, or
fiscal and monetary policies. Securities markets around the globe immediately
dropped following Fed Chairman Alan Greenspan's December remark that current
stock prices may reflect "irrational exuberance."
INVESCO Multiple Asset Funds, Inc.
The line graphs on the following pages illustrate the value of a $10,000
investment in each of the INVESCO Multiple Asset Funds, plus reinvested
dividends and capital gain distributions, from inception through 1/31/97. The
charts and other total return figures cited reflect the funds' operating
expenses, but the indexes do not have expenses, which would, of course, have
lowered their performance.(1),(2)
<PAGE>
While past performance is not a guarantee of future results, $10,000
invested in Balanced Fund upon inception (12/93) would have been worth $17,657
on 1/31/97, including reinvestment of dividends and capital gains. A $10,000
investment in Multi-Asset Allocation Fund made on the same date would have grown
to $14,541.(2) Composition of holdings is, of course, subject to change.
Balanced Fund
For the three-year period ended 1/31/97, Lipper Analytical Services ranked
Balanced Fund #1 of 166 balanced funds, based on total return unadjusted for
commissions. For the one-year period, the fund was ranked #95 of 281
funds.(2),(3)
For the six-month period ended 1/31/97, INVESCO Balanced Fund achieved a
total return of 13.79%, compared to a total return of 24.13% for the S&P 500,
and 4.75% for the Lehman Government/Corporate Bond Index. (Of course, past
performance is not a guarantee of future results.)(1),(2)
Mutual funds which combine stocks and bonds in a single portfolio seek
capital appreciation with enhanced yields, wrapped in a low-risk strategy. This
fund is not expected to outperform an all-equity fund in an up market, but has
the potential to outperform in a down stock market. Balanced Fund features a
lower beta than the S&P 500, higher earnings growth rate, and a lower
price-to-earnings ratio, a profile that seeks to offer growth and income at a
lower price than the broad market.
In the last half of 1996, sector rotation within the market seemed to
change monthly. Industry groups such as consumer cyclicals, energy, financial
services, and technology fell in and then out of favor with investors. In such
an environment, the only way to stay ahead of the market is to constantly
rebalance portfolios. Over the last six months, we have increased our allocation
to the fixed-income market, expanded our interest in technology and health care
stocks, and decreased our exposure to consumer cyclicals. We have also sought to
consolidate the portfolio by reducing the number of stocks; we believe that
stock selectivity will be crucial in 1997.
For 1997, we plan to increase our weightings in financial services and
technology stocks, as we believe that their relative valuations are low compared
to their underlying growth rates. We plan to remain defensive about consumer
cyclicals due to concerns about consumer spending and credit.
Two stocks that we like for the upcoming year are China Eastern Airlines
Ltd. and Warner-Lambert Co. China Eastern Airlines Ltd. (a recently purchased
American Depositary Receipt) offers dynamic growth potential, as it is based out
of Shanghai and serves the whole Shanghai Province. This company possesses a
unique niche in its market and should benefit from growing exposure to Hong Kong
and increased economic activity in Shanghai. We are also excited about
Warner-Lambert Co., as we feel that their new products for 1997 should be well
received.
Balanced Fund
Average Annual Total Return
as of 1/31/97(2)
1 year 15.85%
-----------------------------------------
Since inception (12/93) 19.67%
-----------------------------------------
<PAGE>
During the last six months, we have added to the fixed-income portion of
the portfolio. Fund management believes this should benefit the fund as there is
a strong possibility for lower interest rates in 1997. Newer holdings consist
primarily of mortgage securities and investment grade putable bonds,
selected for their structural value. (Putable bonds are debt obligations that
allow the holder to redeem the issue at specified intervals before maturity and
receive full face value.) Presently, we are avoiding investment grade corporate
bonds, which appear less attractive due to their narrow spreads compared to
other fixed-income securities. For 1997, we will continue to examine the market
closely, looking for value and special situations.
Graph: Balanced Fund Total Return
This line graph illustrates the value of a $10,000 investment in INVESCO
Balanced Fund, plus reinvested dividends and capital gain distributions,
for the period from inception (12/1/93) through 1/31/97.
Fund Management
INVESCO Balanced Fund is managed by three industry veterans. Senior Vice
President Charles P. Mayer and Vice President Albert M. Grossi co-manage the
equity portfolio. With 26 years of professional experience, Charlie earned an
MBA from St. John's University and a BA from St. Peter's College. Previously,
Charlie was with Westinghouse Pension Investments Corporation.
Al Grossi began his career as a securities analyst in 1974. Previously, he
served as a portfolio manager/senior analyst with Westinghouse Pension
Investments Corporation. He holds both an MBA and a BA from Rutgers University.
Senior Vice President Donovan "Jerry" Paul has served as co-portfolio
manager of the fund since 1994, concentrating on fixed-income securities. Jerry
began his investment career in 1976; before joining INVESCO, he worked for
Stein, Roe & Farnham Inc., as well as Quixote Investment Management. He earned
an MBA from the University of Northern Iowa, and a BBA from the University of
Iowa. He is a Chartered Financial Analyst and Certified Public Accountant.
Multi-Asset Allocation Fund
For the six-month period ended 1/31/97, INVESCO Multi-Asset Allocation Fund
had a total return of 16.88%, compared to a total return of 24.13% for the S&P
500 and 4.75% for the Lehman Government/Corporate Bond Index. (Of course, past
performance is not a guarantee of future results.)(1),(2)
The fund's investment approach of broad diversification across five markets
with low correlation to each other seeks to produce positive returns in up
markets, while limiting risk in down markets. INVESCO shareholders also benefit
by having five separate research and analysis teams that specialize in their
individual asset classes. As economic and market cycles shift over time, our
fund's combination of asset classes run by experienced management may prove
especially advantageous.
<PAGE>
Multi-Asset Allocation Fund
Average Annual Total Return
as of 1/31/97(2)
1 Year 18.45%
-----------------------------------------
Since Inception (12/93) 12.55%
-----------------------------------------
This type of diversification helped produce superior competitive returns
over the one-year period ended 1/31/97, as the fund had a total return of
18.45%, outperforming the Lipper flexible portfolio fund average return of
14.80%. For the one-year period ended 1/31/97, Lipper Analytical Services ranked
Multi-Asset Allocation Fund #36 of 185 flexible portfolio funds, based on
total return unadjusted for commissions.(Of course, past performance is not a
guarantee of future results.)(2),(3)
Graph: Multi-Asset Allocation Fund Total Return
This line graph illustrates the value of a $10,000 investment in INVESCO
Multi-Asset Allocation Fund, plus reinvested dividends and capital gain
distributions, for the period from inception (12/1/93) through 1/31/97.
As of 1/31/97, the fund continued to be heavily weighted in favor of
large-capitalization stocks, which accounted for nearly one-third of the assets.
The other two-thirds were divided among the other four investment categories,
with small-cap stocks and fixed-income securities the next highest allocations.
In 1997, we will continue our overweighting in small-cap stocks, as we feel
that the divergence of returns between large- and small-cap stocks has created
substantial value within small-cap markets. In the fixed-income market, we will
continue to invest in shorter-duration Treasury issues, since corporate bonds
continue to be at historically expensive levels. In the international arena, we
will maintain our relatively heavy exposure in Asia (excluding Japan) and Europe
as we feel they offer the most attractive valuation levels at the present time.
Graph: Multi-Asset Allocation Fund - Allocation by Value of
Total Net Assets
This pie chart reflects the allocation of the Multi-Asset Allocation
Fund's portfolio as a percentage of total net assets in large-cap stocks,
fixed-income, small-cap stocks, equity real estate securities,
international stocks and cash and equivalents as of 1/31/97.
Fund Management
INVESCO Multi-Asset Allocation Fund is managed by a team, which is led by
Bob Slotpole. He earned an MBA from Stanford University, as well as a BS from
the State University of New York-Buffalo. Now a senior vice president and
director of equities for INVESCO Management & Research, Inc., Bob began his
investment career in 1975. Previously, he was associated with First Boston and
Lehman Brothers.
(1) The S&P 500 and Lehman Government/Corporate Bond Index are unmanaged indexes
of securities considered to be representative of the broad domestic equity and
domestic fixed-income markets, respectively.
<PAGE>
(2) 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.
(3) Lipper rankings are provided for one-, five-, and 10-year periods,
except for funds introduced more recently, and are based on total return
unadjusted for commissions.
<PAGE>
Introducing
INVESCO'S net PAL for
Account Information
INVESCO now offers secure access
to your account information from your
own computer -- at your convenience.
Account Balance
Latest Transactions
Latest Distributions
1. Go to the INVESCO Funds web site
at http://www.invesco.com.
2. Select netPal on the
navigation bar.
3. Click on INVESCO Account
Information.
4. Key in your account number
and pasword. (Your password
is identical to the four-digit
personal identification number
code you use for the PAL(R)
Personal Account Line,
INVESCO's automated telephone
information system.)
5. Click on "Submit." Your current
account summary will then be
displayed automatically.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Ten Largest Common Stock Holdings
January 31, 1997
Description Value
- --------------------------------------------------------------------------------
BALANCED Fund
Bristol-Myers Squibb $2,540,000
Sonat Inc 2,130,000
SmithKline Beecham PLC Sponsored
ADR Representing Ord A Shrs 2,095,250
Lilly (Eli) & Co 1,742,500
Novartis AG Registered Shrs 1,716,906
Nokia Corp Sponsored ADR
Representing Series A Shrs 1,671,875
Intel Corp 1,622,500
Warner-Lambert Co 1,610,000
Avon Products 1,568,750
Exxon Corp 1,554,375
MULTI-ASSET ALLOCATION Fund
Intel Corp $210,925
Coca-Cola Co 208,350
AT&T Corp 189,000
Merck & Co 172,425
Royal Dutch Petroleum New York
Registry 5 Gldr Shrs 147,475
NIKE Inc Class B 142,538
Ahmanson (H F) & Co 131,250
International Business Machines 125,800
BankAmerica Corp 122,787
Price/Costco Inc 119,813
Composition of holdings is subject to change.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Investment Securities
January 31, 1997
UNAUDITED
Shares or
Principal
Description Amount Value
- ----------------------------------------------------------------------
BALANCED Fund
COMMON STOCKS 59.19%
AEROSPACE/DEFENSE 1.74%
Thiokol Corp 15,000 $840,000
United Technologies 20,000 1,395,000
-------------
2,235,000
-------------
AUTOMOBILES 0.73%
Volkswagen AG 2,000 939,121
-------------
BANKS 3.01%
Banc One 30,000 1,361,250
BanPonce Corp 30,000 1,012,500
CoreStates Financial 15,000 746,250
Mellon Bank 10,000 746,250
-------------
3,866,250
-------------
BEVERAGES 0.66%
Anheuser-Busch Cos 20,000 850,000
-------------
BROADCASTING 0.36%
Scottish Television PLC 46,600 466,728
-------------
CHEMICALS 1.00%
OM Group 20,000 590,000
Praxair Inc 15,000 695,625
-------------
1,285,625
-------------
COMMUNICATIONS -
EQUIPMENT/MANUFACTURING 1.30%
Nokia Corp Sponsored ADR
Representing Series A Shrs 25,000 1,671,875
-------------
COMPUTER RELATED 1.67%
Compaq Computer* 15,000 1,303,125
International Business Machines 5,000 786,250
Peerless Group* 9,500 62,937
-------------
2,152,312
-------------
CONGLOMERATES 0.85%
Grupo Imsa SA de CV
Sponsored ADR* 50,000 1,093,750
-------------
<PAGE>
DRUGS 8.96%
Abbott Laboratories 15,000 815,625
Bristol-Myers Squibb 20,000 2,540,000
Lilly (Eli) & Co 20,000 1,742,500
Merck & Co 11,000 998,250
Novartis AG Registered Shrs* 1,500 1,716,906
SmithKline Beecham PLC
Sponsored ADR Representing
Ord A Shrs 29,000 2,095,250
Warner-Lambert Co 20,000 1,610,000
-------------
11,518,531
-------------
ELECTRIC UTILITIES 2.07%
Entergy Corp 30,000 806,250
IES Industries 25,000 765,625
Idaho Power 35,000 1,089,375
-------------
2,661,250
-------------
ELECTRICAL EQUIPMENT 0.77%
Emerson Electric 10,000 987,500
-------------
ELECTRONICS 2.80%
DuPont Photomasks* 20,000 1,090,000
General Motors 15,000 885,000
Itel Corp 10,000 1,622,500
-------------
3,597,500
-------------
ENTERTAINMENT 0.56%
Granada Group PLC 50,000 719,523
-------------
FINANCIAL - DIVERSIFIED 2.23%
Green Tree Financial 25,000 971,875
HomeSide Inc* 72,300 1,211,025
MBNA Corp 20,000 690,000
-------------
2,872,900
-------------
FOODS 1.81%
Flowers Industries 30,000 641,250
Heinz (H J) Co 24,400 982,100
Kellogg Co 10,100 703,213
-------------
2,326,563
-------------
GOLD & PRECIOUS
METALS MINING 0.40%
Franco-Nevada Mining Ltd 12,000 516,857
-------------
FRANCE 0.54%
AmerUs Life Holdings Class A* 35,400 699,150
-------------
INVESTMENT BANK -
BROKER FIRM 0.89%
Dean Witter Discover & Co 30,000 1,143,750
-------------
IRON & STEEL 0.46%
Valmont Industries 15,000 592,500
-------------
<PAGE>
MACHINERY 1.23%
Gradall Industries* 50,000 737,500
New Holland NV* 38,500 847,000
-------------
1,584,500
-------------
MANUFACTURING 1.53%
Allied Signal 15,000 1,053,750
Premark International 40,000 920,000
-------------
1,973,750
-------------
NATURAL GAS 4.15%
Coastal Corp 30,000 1,451,250
Columbia Gas System 15,000 976,875
Questar Corp 20,000 782,500
Sonat Inc 40,000 2,130,000
-------------
5,340,625
-------------
OIL & GAS RELATED 8.56%
Amoco Corp 10,000 870,000
Burlington Resources 20,000 995,000
Exxon Corp 15,000 1,554,375
Forcenergy Group AB Series B Shrs 100,000 1,292,955
Nabors Industries* 30,000 555,000
Oryx Energy* 40,000 970,000
Rowan Cos* 35,000 883,750
Santa Fe Energy Resources 50,000 743,750
Seagull Energy* 50,000 1,068,750
Tidewater Inc 20,000 940,000
Union Pacific Resources Group 40,000 1,135,000
-------------
11,008,580
-------------
PAPER & FOREST PRODUCTS 0.50%
James River Corp of Virginia 20,000 642,500
-------------
PERSONAL CARE 1.22%
Avon Products 25,000 1,568,750
-------------
PUBLISHING 0.53%
Applied Graphics Technologies* 25,000 681,250
-------------
RAILROADS 0.84%
Canadian Pacific Ltd 40,000 1,085,000
-------------
REAL ESTATE INVESTMENT
TRUST 0.52%
Kilroy Realty* 25,900 663,688
-------------
RETAIL 2.91%
Dayton Hudson 30,000 1,128,750
Ingles Markets Class A 80,000 1,170,000
Sears Roebuck & Co 30,000 1,440,000
-------------
3,738,750
-------------
<PAGE>
TELECOMMUNICATIONS -
LONG DISTANCE 2.91%
Deutsche Telekom AG* 70,000 1,307,931
LCI International* 60,000 1,350,000
Lucent Technologies 20,000 1,085,000
-------------
3,742,931
-------------
TOBACCO 0.80%
Philip Morris 8,600 1,022,325
-------------
UTILITIES - ELECTRIC 0.68%
Calpine Corp* 40,000 880,000
-------------
TOTAL COMMON STOCKS
(Cost $65,747,060) 76,129,334
-------------
FIXED INCOME SECURITIES 34.29%
US Government Obligations 3.98%
US Treasury Notes
6.875%, 5/15/2006
(Cost $5,076,037) 5,000,000 5,125,000
-------------
US Government Agency Obligations 21.99%
Federal Home Loan Mortgage
Gold, Participation Certificates
6.500%, 6/1/2010 1,652,020 1,632,294
6.500%, 8/1/2010 1,727,814 1,703,625
6.500%, 10/1/2010 1,779,335 1,754,424
6.500%, 11/1/2010 1,813,719 1,788,327
6.500%, 4/1/2011 1,902,846 1,870,003
6.500%, 6/1/2011 9,624,393 9,458,276
6.500%, 9/1/2011 9,742,555 9,574,399
Student Loan Marketing
Association, Notes, Series CQ
5.460%, 3/7/2001 500,000 498,345
-------------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $28,079,219) 28,279,693
-------------
Corporate Bonds 8.32%
AUTOMOBILES 0.78%
General Motors Acceptance
Medium-Term Notes
6.700%, 4/25/2001 1,000,000 1,000,194
-------------
CABLE 0.63%
Continental Cablevision, Sr Deb
9.500%, 8/1/2013 715,000 813,054
-------------
COMPUTER RELATED 0.58%
International Business
Machines, Deb
7.125%, 12/1/2096 800,000 749,743
-------------
<PAGE>
ELECTRIC UTILITIES 1.33%
Enersis SA, Notes
6.900%, 12/01/2006 1,000,000 972,159
Korea Electric Power, Deb
7.400%, 4/1/2016 741,533 745,336
-------------
1,717,495
-------------
FINANCIAL - DIVERSIFIED 0.78%
Abbey National PLC, Sub Notes
7.350%, 10/29/2049 1,000,000 1,002,586
-------------
GOLD & PRECIOUS
METALS MINING 0.77%
Freeport McMoRan Copper &
Gold, Sr Notes
7.200%, 11/15/2026 1,000,000 990,373
-------------
HEALTHCARE DRUGS -
PHARMACEUTICALS 1.01%
McKesson Corp, Sub Deb
4.500%, 3/1/2004 1,500,000 1,297,500
-------------
PUBLISHING 0.76%
Time Warner, Deb
6.850%, 1/15/2026 1,000,000 976,673
-------------
UTILITIES - ELECTRIC 1.68%
DQU-II Funding, Collateral
Lease Bonds, 8.700%, 6/1/2016 2,000,000 2,156,344
-------------
TOTAL CORPORATE BONDS
(Cost $10,801,659) 10,703,962
-------------
TOTAL FIXED INCOME
SECURITIES
(Cost $43,956,916) 44,108,655
-------------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 6.52%
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/31/1997 due 2/3/1997
at 5.470%, repurchased at
$8,388,822 (Collateralized by
US Treasury Notes due
2/15/2015 at 11.250%
value $8,856,759)
(Cost $8,385,000) 8,385,000 8,385,000
-------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $118,088,976)
(Cost for Income Tax Purposes
$118,104,006) 128,622,989
=============
<PAGE>
MULTI-ASSET ALLOCATION Fund
COMMON STOCKS 76.34%
AEROSPACE/DEFENSE 1.27%
Coltec Industries* 1,600 $32,000
Lockheed Martin 319 29,356
McDonnell Douglas 800 53,800
Northrop Grumman 800 62,500
Primex Technologies* 140 2,712
UNC Inc* 600 6,675
-------------
187,043
-------------
AIRLINES 0.99%
British Airways PLC ADR 400 38,100
Continental Airlines Class B* 2,200 61,325
Swire Pacific Ltd Sponsored
ADR Representing
Class A Shrs 5,000 45,973
-------------
145,398
-------------
AUTO PARTS 0.85%
Arvin Industries 500 12,062
Borg-Warner Automotive 2,600 103,675
Detroit Diesel* 500 9,625
-------------
125,362
-------------
AUTOMOBILES 0.62%
Chrysler Corp 1,600 55,800
Ford Motor 1,100 35,337
-------------
91,137
-------------
BANKS 4.67%
BankAmerica Corp 1,100 122,787
CCB Financial 100 6,500
Chase Manhattan 928 85,840
Community First Bankshares 1,100 30,662
Deposit Guaranty 600 18,825
Development Bank Ltd
Sponsored ADR 800 44,328
First of America Bank 1,500 89,250
HSBC Holdings PLC
Sponsored ADR 200 46,328
Magna Group 1,000 29,625
National Australia Bank Ltd
Sponsored ADR 800 48,600
NationsBank Corp 700 75,600
Provident Bankshares 300 11,812
Riggs National 400 7,400
SouthTrust Corp 1,900 71,725
-------------
689,282
-------------
<PAGE>
BEVERAGES 1.83%
Coca-Cola Co 3,600 208,350
Kirin Brewery Ltd ADR 300 26,212
Moet Hennessy Louis
Vuitton Sponsored ADR 700 35,525
-------------
270,087
-------------
BIOTECHNOLOGY 0.07%
Gilead Sciences* 300 9,787
-------------
BROADCASTING 0.97%
King World Productions* 3,000 117,375
Renaissance Communications* 700 25,025
-------------
142,400
-------------
BUILDING MATERIALS 0.45%
Centex Construction Products 300 5,887
Centex Corp 900 35,100
Martin Marietta Materials 329 8,760
Medusa Corp 300 11,100
Texas Industries 100 5,525
-------------
66,372
-------------
CHEMICALS 2.58%
Akzo Nobel NV Sponsored ADR 500 35,187
Bayer AG Sponsored ADR 1,500 56,970
Dexter Corp 1,000 30,250
duPont (EI) de Nemours 900 98,662
Fuller (HB) Co 600 29,925
Ionics Inc* 100 5,012
Minerals Technologies 2,000 79,750
Morton International 1,100 44,687
-------------
380,443
-------------
COMPUTER RELATED 3.27%
American Management Systems* 600 13,125
BancTec Inc* 300 5,812
Cadence Design Systems* 1,100 42,075
Davox Corp* 400 16,800
Dell Computer* 800 52,900
Evans & Sutherland Computer* 400 10,000
Fair Issac & Co 100 4,037
Harbinger Corp* 200 8,050
International Business Machines 800 125,800
Manugistics Group* 300 13,125
Microsoft Corp* 600 61,200
NCR Corp* 75 2,841
National Data 300 12,300
Seagate Technology* 1,200 61,800
<PAGE>
Stratus Computer 300 9,525
Synopsys Inc* 300 13,247
Technology Solutions* 200 7,675
Transaction System Architects
Class A* 800 21,300
-------------
481,612
-------------
CONGLOMERATES 0.46%
Textron Inc 700 68,162
-------------
CONSUMER FINANCE 0.57%
American Express 1,200 74,850
Imperial Credit Industries* 400 8,750
-------------
83,600
-------------
CONSUMER - JEWLERY,
NOVELTY & GIFT 0.05%
Oneida Ltd 400 6,950
-------------
CONTAINERS 0.20%
Amcor Ltd ADR 1,200 30,000
-------------
DISTRIBUTION -
FOOD & HEALTH 0.09%
Richfood Holdings 600 12,750
-------------
ELECTRIC UTILITIES 1.06%
Central Louisiana Electric 400 10,850
CILCORP Inc 200 7,700
Commonwealth Energy
Systems SBI 400 9,750
Empresa Nacional de Electricidad
SA Sponsored ADR 500 32,875
Hawaiian Electric Industries 300 10,612
IES Industries 300 9,187
Minnesota Power & Light 200 5,725
PacifiCorp 1,800 38,250
PowerGen PLC Sponsored ADR 750 31,031
-------------
155,980
-------------
ELECTRICAL EQUIPMENT 0.86%
Bell Industries 335 7,579
Dynatech Corp* 100 3,600
Hitachi Ltd ADR 400 35,900
Kent Electronics* 800 26,100
Kyocera Corp ADR 250 29,562
Molecular Dynamics* 500 5,875
<PAGE>
Nimbus CD International 100 1,100
Sterling Electronics* 1,200 16,950
-------------
126,666
-------------
ELECTRONICS 2.31%
BMC Industries 300 9,825
Belden Inc 400 15,250
Dallas Semiconductor 1,600 42,200
Intel Corp 1,300 210,925
International Rectifier* 400 6,350
Logicon Inc 400 13,850
Periphonics Corp* 1,100 35,200
Unitrode Corp* 200 7,350
-------------
340,950
-------------
ENGINEERING &
CONSTRUCTION 0.86%
JLG Industries 4,000 76,000
NVR Inc* 600 7,725
Sekisui House Ltd ADR 300 26,689
Stone & Webster 500 17,000
-------------
127,414
-------------
FINANCIAL - DIVERSIFIED 0.14%
CMAC Investment 200 6,950
Lawyers Title 300 6,937
Mercury Finance 3,500 7,000
-------------
20,887
-------------
FOODS 2.00%
Associated British Foods
Ltd ADR 4,000 30,672
Dean Foods 400 12,600
Earthgrains Co 300 13,987
Nestle SA Sponsored ADR
Representing Registered Shrs 900 48,819
Sara Lee 2,500 98,750
Unigate Ltd ADR 5,600 40,786
Unilever NV New York Shrs 300 49,350
-------------
294,964
-------------
FOOTWEAR 0.97%
NIKE Inc Class B 2,100 142,538
-------------
GAMING 0.04%
Primadonna Resorts* 300 6,300
-------------
<PAGE>
GOLD & PRECIOUS
METALS MINING 0.31%
CRA Ltd Sponsored ADR 800 45,270
-------------
HEALTHCARE DRUGS -
PHARMACEUTICALS 5.30%
Astra AB Sponsored ADR
Representing Series A Shrs 750 35,906
Bergen Brunswig Class A Shrs 200 5,950
Bindley Western Industries 500 8,875
Bristol-Myers Squibb 900 114,300
Carter-Wallace Inc 2,600 39,000
Glaxo Wellcome PLC
Sponsored ADR 1,000 31,875
Immunex Corp* 700 14,131
Johnson & Johnson 1,400 80,675
Lilly (Eli) & Co 1,200 104,550
Merck & Co 1,900 172,425
Novartis AG Sponsored ADR
Representing Registered Shrs* 1,000 57,252
Novo-Nordisk A/S ADR 1,000 46,625
Pfizer Inc 600 55,725
TheraTech Inc* 1,000 13,500
-------------
780,789
-------------
HEALTHCARE RELATED 0.84%
Integrated Health Services 1,300 34,612
Tenet Healthcare* 2,160 58,320
West Co 1,100 30,525
-------------
123,457
-------------
HEALTH MAINTENANCE
ORGANIZATIONS 0.04%
Sierra Health Services* 200 5,475
-------------
HOUSEHOLD FURNITURE
& APPLIANCES 0.78%
Ethan Allen Interiors 800 35,100
Matsushita Electric Industrial
ADR 300 44,550
Miller (Herman) Inc 600 34,725
-------------
114,375
-------------
HOUSEHOLD PRODUCTS 0.87%
Clorox Co 500 59,312
Procter & Gamble 600 69,300
-------------
128,612
-------------
<PAGE>
INSURANCE 3.52%
ACE Ltd 1,300 76,862
AEGON NV ADR 500 30,937
American Bankers Insurance
Group 300 16,650
CIGNA Corp 500 75,813
Commerce Group 600 14,550
Frontier Insurance Group 440 17,380
Guarantee Life 600 12,300
HCC Insurance Holdings 1,900 52,962
Horace Mann Educators 200 8,550
ING Groep NV Sponsored ADR 1,000 37,695
Loews Corp 900 88,987
Orion Capital 100 6,300
Protective Life 1,400 55,475
Reliance Group Holdings 1,200 10,950
20th Century Industries 800 14,100
-------------
519,511
-------------
INVESTMENT BANK -
BROKER FIRM 1.01%
Alex Brown 150 7,950
Inter-Regional Financial Group 700 29,750
Morgan Stanley Group 1,600 91,400
Raymond James Financial 600 19,350
-------------
148,450
-------------
IRON & STEEL 0.48%
AK Steel Holding 900 36,225
Commercial Metals 300 8,738
Quanex Corp 1,000 26,500
-------------
71,463
-------------
LEISURE TIME 0.06%
Coachmen Industries 500 9,438
-------------
LODGING - HOTELS 0.82%
HFS Inc* 1,600 112,000
Prime Hospitality* 500 8,563
-------------
120,563
-------------
MACHINERY 0.26%
Blount International Class A 100 4,063
Graco Inc 600 19,275
IDEX Corp 400 15,000
-------------
38,338
-------------
MANUFACTURING 0.81%
Dionex Corp* 200 8,100
Foamex International* 800 15,900
Giddings & Lewis 1,100 14,300
<PAGE>
RWE AG Sponsored ADR
Representing Ord Shrs 750 31,737
Robbins & Myers 600 15,900
Scotsman Industries 300 7,200
Teleflex Inc 400 18,900
Tredegar Industries 200 7,875
-------------
119,912
-------------
MEDICAL EQUIPMENT
& DEVICES 1.23%
Advanced Technology
Laboratories* 400 13,350
Allegiance Corp 340 8,713
Ballard Medical Products 300 5,850
DENTSPLY International 1,800 89,550
Kinetic Concepts 800 10,000
OEC Medical Systems* 400 6,900
Safeskin Corp* 1,100 26,400
Sofamor/Danek Group* 500 20,625
-------------
181,388
-------------
METALS & MINING 0.94%
Mueller Industries* 2,100 87,938
Olin Corp 1,400 51,275
-------------
139,213
-------------
NATURAL GAS 0.78%
Coastal Corp 800 38,700
MCN Corp 2,100 67,988
ONEOK Inc 300 8,888
-------------
115,576
-------------
OFFICE EQUIPMENT
& SUPPLIES 0.83%
Symbol Technologies* 100 5,475
Wallace Computer Services 3,500 117,250
-------------
122,725
-------------
OIL & GAS RELATED 5.63%
Amoco Corp 700 60,900
Camco International 400 19,150
Elf Aquitaine SA Sponsored
ADR 1,000 48,500
Exxon Corp 700 72,538
Global Marine* 3,000 67,125
Mobil Corp 700 91,875
Norsk Hydro AS Sponsored
ADR 800 45,000
<PAGE>
Phillips Petroleum 2,700 119,138
Repsol SA Sponsored ADR 600 23,775
Royal Dutch Petroleum
New York Shrs Registry
5 Gldr Shrs 850 147,475
Santa Fe Energy Resources* 1,800 26,775
Tidewater Inc 2,300 108,100
-------------
830,351
-------------
PAPER & FOREST PRODUCTS 0.17%
Chesapeake Corp 600 17,850
Fibreboard Corp* 200 6,925
-------------
24,775
-------------
PHOTOGRAPH/IMAGING 0.29%
Fuji Photo Film Ltd ADR 1,400 42,525
-------------
PHYSICIANS PRACTICE
MANAGEMENT 0.12%
Universal Health Services
Class B* 600 17,400
-------------
POLLUTION CONTROL 0.07%
World Fuel Services 500 10,750
-------------
PUBLISHING 0.59%
Central Newspapers Class A 300 13,650
Media General Class A 400 12,600
Meredith Corp 1,000 51,375
Pulitzer Publishing 200 9,525
-------------
87,150
-------------
REAL ESTATE INVESTMENT
TRUST 11.23%
American General Hospitality 1,500 40,313
Arden Realty Group 1,300 34,775
Bay Apartment Communities 1,200 43,200
Beacon Properties 900 32,175
CBL & Associates Properties 1,900 48,688
Cali Realty 1,700 56,100
CarrAmerica Realty 700 20,388
Chelsea GCA Realty 900 30,938
Duke Realty Investments 800 31,700
Equity Residential Properties
Trust SBI 1,500 64,500
Essex Property Trust 1,100 32,175
FelCor Suite Hotels 1,800 63,900
First Industrial Realty Trust 1,300 37,700
Gables Residential Trust SBI 2,100 55,913
General Growth Properties 700 22,050
<PAGE>
Highwoods Properties 1,300 45,500
Horizon Group 1,276 21,692
JDN Realty 1,600 44,000
JP Realty 1,300 34,938
Kilroy Realty* 2,000 51,250
Kimco Realty 750 24,563
Koger Equity 3,500 62,563
Liberty Property Trust SBI 2,400 61,800
MGI Properties 2,200 47,850
Meditrust SBI 800 30,800
Meridian Industrial Trust 1,400 30,800
Merry Land & Investment 2,800 62,300
Nationwide Health Properties 1,900 43,463
Patriot American Hospitality 1,500 70,500
Public Storage 3,000 87,750
RFS Hotel Investors 2,300 43,125
Regency Realty 1,000 26,125
Security Capital Industrial
Trust SBI 700 14,875
Shurgard Storage Centers
Class A 1,000 27,875
Simon DeBartolo Group 1,100 32,175
Spieker Properties 900 31,500
Starwood Lodging Trust 600 24,525
Sun Communities 1,200 38,850
Sun Hung Kai Properties
Ltd Sponsored ADR 2,500 28,229
Wellsford Residential Property
Trust SBI 1,000 28,125
Winston Hotels 1,900 25,650
-------------
1,655,338
-------------
RESTAURANTS 0.43%
Applebee's International 200 5,400
CKE Restaurants 750 15,656
Ryan's Family Steak Houses* 5,400 41,850
-------------
62,906
-------------
RETAIL 2.44%
Borders Group* 700 31,238
Carson Pirie Scott* 400 10,700
Dayton Hudson 2,000 75,250
Federated Department Stores* 1,500 49,313
Lands' End* 1,500 42,563
Meyer (Fred) Inc* 400 13,850
Price/Costco Inc* 4,500 119,813
Ross Stores 300 12,300
Waban Inc* 200 5,425
-------------
360,452
-------------
<PAGE>
SAVINGS & LOAN COMPANIES 1.63%
Ahmanson (H F) & Co 3,500 131,250
ALBANK Financial 660 20,790
Astoria Financial 900 35,100
St Paul Bancorp 2,200 52,800
-------------
239,940
-------------
SERVICES - ADVERTISING
& MARKETING 0.15%
Catalina Marketing* 400 22,300
-------------
SERVICES - COMMERCIAL
& CONSUMER 0.97%
G & K Services Class A 200 6,400
ITT Educational Services* 500 12,688
Kinder-Care Learning Centers* 1,300 24,213
Norrell Corp 900 25,088
PHH Corp 200 9,625
Robert Half International* 1,500 64,500
-------------
142,514
-------------
SERVICES - COMPUTER
SYSTEMS 0.18%
Gerber Scientific 700 9,975
Measurex Corp 500 17,313
-------------
27,288
-------------
TELECOMMUNICATIONS -
CELLULAR/WIRELESS 0.12%
Centennial Cellular Class A* 1,500 17,813
-------------
TELECOMMUNICATIONS - LONG
DISTANCE 2.11%
AT&T Corp 4,800 189,000
British Telecommunications
PLC ADR 900 61,763
Lucent Technologies 388 21,049
Societa Finanziaria Telefonica
SpA Sponsored ADR 800 39,600
-------------
311,412
-------------
TELEPHONE 1.66%
Ameritech Corp 1,500 89,625
GTE Corp 1,200 56,400
SBC Communications 900 49,388
Telefonica de Espana SA
Sponsored ADR 700 49,000
-------------
244,413
-------------
<PAGE>
TEXTILE - APPAREL
MANUFACTURERS 0.79%
Kellwood Co 300 6,675
Nautica Enterprises* 1,000 23,500
VF Corp 1,300 86,450
-------------
116,625
-------------
TEXTILE - HOME FURNISHING 0.11%
Springs Industries Class A 400 16,900
-------------
TOBACCO 0.81%
Philip Morris 800 95,100
Universal Corp 800 24,800
-------------
119,900
-------------
TRANSPORTATION 0.06%
Yellow Corp* 500 8,563
-------------
TRUCKERS 0.13%
Heartland Express* 750 18,703
-------------
UTILITIES - ELECTRIC 0.59%
GPU Inc 1,100 36,850
MidAmerican Energy Holdings 2,400 39,000
SIGCORP Inc 300 10,538
-------------
86,388
-------------
TOTAL COMMON STOCKS
(Cost $9,397,162) 11,255,045
-------------
PREFERRED STOCKS 0.47%
CHEMICALS 0.20%
Dow Chemical, 11.095% Pfd 30 30,000
-------------
REAL ESTATE INVESTMENT
TRUST 0.27%
Staircase Properties, 13.740%
Stepdown Pfd^ 40 40,000
-------------
TOTAL PREFERRED STOCKS (Cost $70,000) 70,000
-------------
FIXED INCOME SECURITIES 20.98%
US Government Obligations 10.51%
US Treasury Bonds
8.750%, 5/15/2017 125,000 150,508
7.500%, 11/15/2016 180,000 192,319
US Treasury Notes
7.250%, 8/15/2004 225,000 235,758
6.250%, 5/31/2000 100,000 100,344
5.875%, 8/15/1998 150,000 150,094
<PAGE>
5.875%, 10/31/1998 50,000 49,969
5.375%, 5/31/1998 625,000 621,875
5.125%, 11/30/1998 50,000 49,344
-------------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $1,544,187) 1,550,211
-------------
US Government Agency
Obligations 4.67%
Federal Home Loan Bank
6.075%, 1/22/1999 100,000 99,640
Federal Home Loan Mortgage
Gold, Participation Certificates
12.000%, 8/1/2015 61,545 70,235
9.000%, 1/1/2005 26,810 28,046
9.000%, 1/1/2007 33,849 35,491
8.000%, 8/1/2017 36,380 37,411
Federal National Mortgage
Association, Gtd Pass-Through
Certificates
7.500%, 11/25/2006 75,000 76,489
7.000%, 5/25/2006 105,000 105,843
6.000%, 4/1/2011 47,824 46,014
6.000%, 4/1/2024 45,610 42,688
Government National Mortgage
Association I, Pass-Through
Certificates
7.000%, 1/16/2007 75,000 75,578
6.500%, 2/15/2026 73,886 70,548
-------------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $683,241) 687,983
-------------
Asset-Backed Securities 1.53%
AUTOMOBILES 0.51%
Premier Auto Trust, 1996-4
Notes, Class A-3, 6.200%
9/9/1999 75,000 75,190
-------------
CONSUMER FINANCE 1.02%
Nationsbank Auto Owner Trust
1996-A Notes, Class A.3
6.375%, 7/15/2000 75,000 75,401
Olympic Automobile
Receivables Trust, 1996-A
Notes, Class A, 5.700%
4/15/2000 75,000 74,758
-------------
150,159
-------------
TOTAL ASSET-BACKED SECURITIES
(Cost $224,824) 225,349
-------------
<PAGE>
Mortgage-Backed Securities 1.36%
CONSUMER FINANCE 0.51%
IMC Home Equity Loan Trust
Pass-Through Certificates
Series 1997-1, Class A2
6.620%, 10/25/2011 75,000 75,035
-------------
FINANCIAL - DIVERSIFIED 0.85%
Contimortgage Home Equity
Loan Trust, Pass-Through
Certificates
Series 1995-4, Class A4
6.330%, 10/15/2010 25,000 24,921
Series 1997-1, Class A3
6.480%, 1/15/2012 100,000 100,000
-------------
124,921
-------------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $199,740) 199,956
-------------
Corporate Bonds 2.91%
COMMUNICATIONS - EQUIPMENT/
MANUFACTURING 0.39%
Motorola Inc, Deb
8.400%, 8/15/2031 50,000 57,607
-------------
CONSUMER FINANCE 0.38%
Beneficial Corp, Deb
8.400%, 5/15/2008 50,000 55,970
-------------
FINANCIAL - DIVERSIFIED 0.73%
Associates Corp of North
America, Sr Deb, Series A
7.950%, 2/15/2010 50,000 54,149
General Electric Capital
Medium-Term Notes
5.800%, 4/1/2008 50,000 53,494
-------------
107,643
-------------
POLLUTION CONTROL 0.29%
WMX Technologies
Step-Up Discount Notes
6.220%, 4/30/2004^^ 40,000 42,580
-------------
TELECOMMUNICATIONS -
CELLULAR/WIRELESS 0.33%
BellSouth Telecommunications
Deb, 5.850%, 11/15/2045 50,000 49,191
-------------
TELEPHONE 0.79%
GTE Corp, Deb
10.250%, 11/1/2020 50,000 56,815
<PAGE>
US WEST Capital Funding
Notes, 6.310%, 11/1/2005 60,000 59,443
-------------
116,258
-------------
TOTAL CORPORATE BONDS
(Cost $419,228) 429,249
-------------
TOTAL FIXED INCOME
SECURITIES
(Cost $3,071,220) 3,092,748
-------------
SHORT-TERM INVESTMENTS -
US GOVERNMENT OBLIGATIONS 2.21%
US Treasury Notes
5.750%, 9/30/1997 220,000 220,343
5.625%, 8/31/1997 30,000 30,028
5.250%, 12/31/1997 75,000 74,742
-------------
(Cost $324,714) 325,113
-------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $12,863,096)
(Cost for Income Tax Purposes
$12,870,583) 14,742,906
=============
* Security is non-income producing.
^^ 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,
1997:
Value as
Acquisition Acquisition % of
Description Date(s) Cost Net Assets
- --------------------------------------------------------------------------------
Multi-Asset Allocation Fund
Staircase Properties
13.740%
Stepdown Pfd 1/2/97 $40,000 0.27%
=====
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Assets and Liabilities
January 31, 1997
UNAUDITED
<TABLE>
<CAPTION>
Balanced Multi-Asset
Fund Allocation Fund
------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost~ $118,088,976 $12,863,096
====================================
At Value~ 128,622,989 14,742,906
Cash 403,659 745,586
Foreign Currency
(Cost $20,185 and $0) 19,139 0
Receivables:
Investment Securities Sold 1,197,265 116,998
Fund Shares Sold 114,184 37,453
Dividends and Interest 453,028 57,580
Prepaid Expenses and Other Assets 96,120 41,122
------------------------------------
TOTAL ASSETS 130,906,384 15,741,645
------------------------------------
LIABILITIES
Payables:
Distributions to Shareholders 6,702 674
Investment Securities Purchased 2,966,344 910,413
Fund Shares Repurchased 291,632 27,583
Accrued Distribution Expenses 28,510 3,333
Accrued Expenses and Other Payables 24,495 13,832
------------------------------------
TOTAL LIABILITIES 3,317,683 955,835
------------------------------------
Net Assets at Value 127,588,701 14,785,810
====================================
NET ASSETS
Paid-in Capital* 112,791,535 12,704,557
Accumulated Undistributed Net
Investment Income 31,900 1,187
Accumulated Undistributed
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 4,231,455 200,256
<PAGE>
Net Appreciation of Investment
Securities and Foreign Currency
Transactions 10,533,811 1,879,810
------------------------------------
Net Assets at Value 127,588,701 14,785,810
====================================
Shares Outstanding 9,036,778 1,197,673
Net Asset Value, Offering and
Redemption Price per Share 14.12 12.35
====================================
</TABLE>
~ Investment securities at cost and value at January 31, 1997 include a
repurchase agreement of $8,385,000 for Balanced Fund.
* 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, 1997
UNAUDITED
<TABLE>
<CAPTION>
Balanced Multi-Asset
Fund Allocation Fund
-----------------------------------
<S> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $743,249 $104,275
Interest 1,624,719 128,649
Foreign Taxes Withheld (9,757) (119)
----------------------------------
TOTAL INCOME 2,358,211 232,805
----------------------------------
EXPENSES
Investment Advisory Fees 391,255 45,002
Distribution Expenses 163,023 15,001
Transfer Agent Fees 192,996 18,739
Administrative Fees 14,835 5,954
Custodian Fees and Expenses 44,306 6,820
Directors' Fees and Expenses 6,191 3,941
Professional Fees and Expenses 11,962 7,270
Registration Fees and Expenses 37,829 12,400
Reports to Shareholders 27,125 2,058
Other Expenses 4,102 1,738
-----------------------------------
TOTAL EXPENSES 893,624 118,923
Fees and Expenses Absorbed
by Investment Adviser (31,559) (24,856)
Fees and Expenses Paid Indirectly (44,414) (2,965)
-----------------------------------
NET EXPENSES 817,651 91,102
-----------------------------------
NET INVESTMENT INCOME 1,540,560 141,703
-----------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT SECURITIES
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 5,045,926 497,825
Change in Net Appreciation of
Investment Securities and
Foreign Currency Transactions 9,476,479 1,128,501
-----------------------------------
NET GAIN ON INVESTMENT SECURITIES 14,522,405 1,626,326
-----------------------------------
Net Increase in Net Assets
from Operations 16,062,965 1,768,029
===================================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Balanced Multi-Asset
Fund Allocation Fund
Six Months Year Six Months Year
Ended Ended Ended Ended
January 31 July 31 January 31 July 31
------------------------------ ------------------------------
1997 1996 1997 1996
UNAUDITED UNAUDITED
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income $ 1,540,560 $2,834,839 $141,703 $224,940
Net Realized Gain on Investment Securities
and Foreign Currency Transactions 5,045,926 11,022,562 497,825 665,235
Change in Net Appreciation (Depreciation) of
Investment Securities and Foreign
Currency Transactions 9,476,479 (1,554,333) 1,128,501 18,014
------------------------------ ------------------------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS 16,062,965 12,303,068 1,768,029 908,189
------------------------------ ------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (1,518,679) (2,832,865) (141,720) (225,039)
Net Realized Gain on Investment Securities (7,920,012) (5,048,134) (828,800) (147,924)
------------------------------ ------------------------------
TOTAL DISTRIBUTIONS (9,438,691) (7,880,999) (970,520) (372,963)
------------------------------ ------------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 76,866,139 201,328,435 26,621,955 13,724,833
Reinvestment of Distributions 9,235,066 7,491,818 954,388 366,691
------------------------------ ------------------------------
86,101,205 208,820,253 27,576,343 14,091,524
Amounts Paid for Repurchases of Shares (80,202,629) (135,399,982) (23,161,622) (12,831,534)
------------------------------ ------------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 5,898,576 73,420,271 4,414,721 1,259,990
------------------------------ ------------------------------
Total Increase in Net Assets 12,522,850 77,842,340 5,212,230 1,795,216
NET ASSETS
Beginning of Period 115,065,851 37,223,511 9,573,580 7,778,364
------------------------------ ------------------------------
End of Period 127,588,701 115,065,851 14,785,810 9,573,580
============================== ==============================
Accumulated Undistributed Net Investment
Income Included in Net Assets at
End of Period 31,900 10,019 1,187 1,204
<PAGE>
FUND SHARE TRANSACTIONS
Shares Sold 5,423,829 14,985,724 2,176,787 1,194,602
Shares Issued from Reinvestment
of Distributions 668,386 564,187 80,078 32,203
------------------------------ ------------------------------
6,092,215 15,549,911 2,256,865 1,226,805
Shares Repurchased (5,665,801) (10,019,968) (1,887,816) (1,115,680)
------------------------------ ------------------------------
Net Increase in Fund Shares 426,414 5,529,943 369,049 111,125
============================== ==============================
</TABLE>
See Notes to Financial Statements
<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 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 incomes 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 one or more 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
<PAGE>
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.
Assets and liabilities initially expressed in terms of foreign
currencies are translated into U.S. dollars at the prevailing market rates
as quoted by one or more banks or dealers on the date of valuation. The
cost of securities is translated into U.S. dollars at the rates of exchange
prevailing when such securities were acquired. Income and expenses are
translated into U.S. dollars at rates of exchange prevailing when accrued.
B. REPURCHASE AGREEMENTS - Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to
ensure its market value exceeds the current market value of the repurchase
agreements including accrued interest.
C. OPTIONS - Balanced Fund may hold options for investment purposes with the
intent to hedge the portfolio against ongoing exposure to market value and
interest rate fluctuations.
The use of such instruments may involve certain risks as a result of
unanticipated movements in the market. A lack of correlation between the
value of an instrument underlying an option and the asset being hedged, or
unexpected adverse price movements could render the Balanced Fund's hedging
strategy unsuccessful. In addition, there can be no assurance that a
liquid secondary market will exist for any option purchased or sold.
Realized gains or losses on purchased option transactions are included in
Net Realized Gain (Loss) on Investment Securities and Foreign Currency
Transactions in the Statement of Operations.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for on the trade date and dividend income is
recorded on the ex dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend
if such information is obtained subsequent to the ex dividend date.
Interest income, which may be comprised of stated coupon rate, market
discount, original issue discount and amortized premium, is recorded on
the accrual basis. 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.
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.
<PAGE>
The Fund's use of short-term forward foreign currency contracts may
subject it to certain risks as a result of unanticipated movements in
foreign exchange rates. The Fund does not hold short-term forward foreign
currency contracts for trading purposes. The Fund may hold foreign currency
in anticipation of settling foreign security transactions and not for
investment purposes.
Restricted securities held by the Fund may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. The risk of investing in such securities is generally greater than the
risk of investing in the securities of widely held, publicly traded
companies. Lack of a secondary market and resale restrictions may result in
the inability of each Fund to sell a security at a fair price and may
substantially delay the sale of the security which each Fund seeks to sell.
In addition, these securities may exhibit greater price volatility than
securities for which secondary markets exist.
E. 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.
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.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distributions
to shareholders are recorded by the Fund on the ex dividend/distribution
date. The Fund distributes net realized capital gains, if any, to its
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for mortgage-backed securities, market discounts,
foreign currency transactions, nontaxable dividends, net operating losses
and expired capital loss carryforwards.
G. FORWARD FOREIGN CURRENCY CONTRACTS - The Fund enters into short-term
forward foreign currency contracts in connection with planned purchases or
sales of securities as a hedge against fluctuations in foreign exchange
rates pending the settlement of transactions in foreign securities. A
forward foreign currency contract is an agreement between contracting
parties to exchange an amount of currency at some future time at an agreed
upon rate. These contracts are marked-to-market daily and the related
appreciation or depreciation of the contracts is presented in the Statement
of Assets and Liabilities.
H. EXPENSES - Each of the Funds bears expenses incurred specifically on its
behalf and, in addition, each Fund bears a portion of general expenses,
based on the relative net assets of each Fund.
Under an agreement between each Fund and the Fund's Custodian, agreed
upon Custodian Fees and Expenses are reduced by credits granted by the
Custodian from any temporarily uninvested cash. Such credits are included in
Fees and Expenses Paid Indirectly in the Statement of Operations.
<PAGE>
NOTE 2 - INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the 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. A separate Sub-Advisory Agreement between IFG and
INVESCO Management & Research, Inc. ("IMR"), an affiliate of IFG, provides that
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 $20.00 per
shareholder account, or, where applicable, per participant in an omnibus
account, per year. IFG may pay such fee for participants in omnibus accounts to
affiliates or third parties. The fee is paid monthly at one-twelfth of the
annual fee and is based upon the actual number of accounts in existence during
each month.
A plan of distribution pursuant to Rule 12b-1 of the Act has provided 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, 1997, Balanced and Multi-Asset Allocation Funds paid the
Distributor $159,763 and $13,823, respectively, for reimbursement of expenses
incurred. Effective January 1, 1997, the Rule 12b-1 distribution plan was
modified by action of the Board of Directors so that the Fund compensates IFG
for permissable acitivities and services in connection with distribution of each
Fund's shares. Accordingly, the above amounts reflect reimbursements under the
plan for the five months ended December 31, 1996 and compensation under the plan
for the month of January 1997.
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.
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months
ended January 31, 1997, 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 $82,532,270 $75,698,163
Multi-Asset Allocation Fund 6,600,260 2,888,888
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities were as follows:
<PAGE>
Fund Purchases Sales
- --------------------------------------------------------------------------------
Balanced Fund $9,704,094 $12,021,241
Multi-Asset Allocation Fund 2,002,165 1,978,210
NOTE 4 - APPRECIATION AND DEPRECIATION. At January 31, 1997, 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 $11,232,348 $713,365 $10,518,983
Multi-Asset Allocation Fund 2,009,286 136,963 1,872,323
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 deferred compensation plan covering all
independent directors of the Fund who will have served as an independent
director for at least five years at the time of retirement. Benefits are based
on an annual rate of 40% of the retainer fee at the time of retirement.
Pension expenses for the six months ended January 31, 1997, 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 $696 $1,797 $3,246
Multi-Asset Allocation Fund 302 91 460
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 of the fund redemptions of investor shares. The LOC
permits borrowings to a maximum of 10% of the Net Assets at Value of each
respective Fund. Each Fund agrees to pay annual fees and interest on the unpaid
principal balance based on prevailing market rates as defined in the agreement.
At January 31, 1997, there were no such borrowings.
Other Information
UNAUDITED
On January 31, 1997, a special meeting of the shareholders of the Fund was held
at which the eleven directors identified below were elected, the selection of
Price Waterhouse LLP as independent accountants (Proposal 1), the approval of a
new investment advisory agreement with INVESCO Funds Group, Inc. ("IFG"),
<PAGE>
(Proposal 2), a new sub-advisory agreement between IFG and INVESCO Trust
Company for Balanced Fund (Proposal 3) and a new sub-advisory agreement between
IFG and INVESCO Management & Research, Inc. for Multi-Asset Allocation Fund
(Proposal 4) were ratified. The following is a report of the votes cast:
<TABLE>
<CAPTION>
Withheld/
Nominee/Proposal For Against Abstain Total
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balanced Fund
Charles W. Brady 5,850,650 0 185,754 6,036,404
Dan J. Hesser 5,851,533 0 184,871 6,036,404
Fred A. Deering 5,845,934 0 190,470 6,036,404
Victor L. Andrews 5,850,276 0 186,128 6,036,404
Bob R. Baker 5,813,495 0 222,909 6,036,404
Lawrence H. Budner 5,850,628 0 185,776 6,036,404
Daniel D. Chabris 5,843,014 0 193,390 6,036,404
A.D. Frazier, Jr. 5,850,245 0 186,159 6,036,404
Hubert L. Harris, Jr. 5,850,859 0 185,545 6,036,404
Kenneth T. King 5,845,102 0 191,302 6,036,404
John W. McIntyre 5,851,528 0 184,876 6,036,404
Proposal No. 1 5,781,291 55,341 199,772 6,036,404
Proposal No. 2 5,576,620 117,814 341,969 6,036,403
Proposal No. 3 5,572,341 121,041 343,022 6,036,404
Multi-Asset Allocation Fund
Charles W. Brady 631,936 0 6,274 638,210
Dan J. Hesser 631,936 0 6,274 638,210
Fred A. Deering 631,463 0 6,747 638,210
Victor L. Andrews 631,936 0 6,274 638,210
Bob R. Baker 631,936 0 6,274 638,210
Lawrence H. Budner 631,936 0 6,274 638,210
Daniel D. Chabris 631,445 0 6,765 638,210
A.D. Frazier, Jr. 632,215 0 5,995 638,210
Hubert L. Harris, Jr. 632,215 0 5,995 638,210
Kenneth T. King 630,728 0 7,482 638,210
John W. McIntyre 631,936 0 6,274 638,210
Proposal No. 1 623,741 1,502 12,968 638,211
Proposal No. 2 620,542 2,847 14,821 638,210
Proposal No. 4 616,466 5,586 16,157 638,209
</TABLE>
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Ended
January 31 Year Ended July 31 July 31
------------ ------------------- ---------
1997 1996 1995 1994^
UNAUDITED
Balanced Fund
<S> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $ 13.36 $ 12.08 $ 10.30 $ 10.00
------------ --------------------- --------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.16 0.37 0.29 0.12
Net Gains on Securities (Both Realized
and Unrealized) 1.63 2.12 2.03 0.30
------------ --------------------- --------
Total from Investment Operations 1.79 2.49 2.32 0.42
------------ --------------------- --------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.16 0.37 0.29 0.12
Distributions from Capital Gains 0.87 0.84 0.25 0.00
------------ --------------------- --------
Total Distributions 1.03 1.21 0.54 0.12
------------ --------------------- --------
Net Asset Value - End of Period 14.12 13.36 12.08 10.30
============ ===================== ========
TOTAL RETURN $ 13.79%* 20.93% 23.18% 4.16%*
RATIOS
Net Assets - End of Period ($000 Omitted) 127,589 $115,066 $ 37,224 $ 4,252
Ratio of Expenses to Average Net Assets# 0.67%*@ 1.29%@ 1.25% 1.25%~
Ratio of Net Investment Income to
Average Net Assets# 1.20%* 3.03% 3.12% 2.87%~
Portfolio Turnover Rate 77%* 259% 255% 61%*
Average Commission Rate Paid^^ $ 0.0639* - - -
</TABLE>
^ 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, 1997, for the years ended July 31, 1996 and 1995
and the period ended July 31, 1994. If such
<PAGE>
expenses had not been voluntarily absorbed, ratio of expenses to average net
assets would have been 0.69% (not annualized), 1.29%, 1.59% and 4.37%
(annualized), respectively, and ratio of net investment income to average net
assets would have been 1.18% (not annualized), 3.03%, 2.77% and (0.25%)
(annualized), respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
~ Annualized
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the total
number of related shares purchased or sold which is required to be disclosed for
fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Ended
January 31 Year Ended July 31 July 31
------------ ------------------- ---------
1997 1996 1995 1994^
UNAUDITED
Multi-Asset Allocation Fund
<S> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value - Beginning of Period $ 11.55 $ 10.84 $ 9.68 $ 10.00
------------ --------------------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.12 0.28 0.28 0.06
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.78 0.89 1.16 (0.32)
------------ --------------------- ---------
Total from Investment Operations 1.90 1.17 1.44 (0.26)
------------ --------------------- ---------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.12 0.28 0.28 0.06
Distributions from Capital Gains 0.98 0.18 0.00 0.00
------------ --------------------- ---------
Total Distributions 1.10 0.46 0.28 0.06
------------ --------------------- ---------
Net Asset Value - End of Period $ 12.35 $ 11.55 $ 10.84 $ 9.68
============ ===================== =========
TOTAL RETURN 16.88%* 10.96% 15.11% (2.60%)*
RATIOS
Net Assets - End of Period ($000 Omitted) $ 14,786 $ 9,574 $ 7,778 $ 4,958
Ratio of Expenses to Average Net Assets# 0.80%*@ 1.62%@ 1.50% 1.50%~
Ratio of Net Investment Income to
Average Net Assets# 1.20%* 2.43% 2.99% 2.23%~
Portfolio Turnover Rate 45%* 92% 79% 42%*
Average Commision Rate Paid^^ 0.0367* - - -
</TABLE>
^ 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, 1997, the years ended July 31, 1996 and 1995 and
the period ended July 31, 1994. If such expenses
<PAGE>
had not been voluntarily absorbed, ratio of expenses to average net assets would
have been 1.01% (not annualized), 2.24%, 2.47% and 5.14% (annualized),
respectively, and ratio of net investment income to average net assets would
have been 0.99% (not annualized), 1.81%, 2.02% and (1.41%) (annualized),
respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Advisor, which is before any expense offset arrangements.
~ Annualized
^^ The average commision rate paid is the total brokerage commisions paid on
applicable purchases and sales of securities for the period divided by the total
number of related shares purchased or sold which is required to be disclosed for
fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
<TABLE>
<CAPTION>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
International
International Growth 49 FSIGX IntlGr
Asian Growth 41 IVAGX AsianGr
European 56 FEURX Europ
European Small Company 37 IVECX EuroSmCo
Latin American Growth 34 IVSLX LatinAmGr
Pacific Basin 54 FPBSX PcBas
- ----------------------------------------------------------------------------------------------------------
Sector
Energy 50 FSTEX Enrgy
Environmental Services 59 FSEVX Envirn
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Realty 42 IVSRX Realty
Technology 55 FTCHX Tech
Utilities 58 FSTUX Util
Worldwide Capital Goods 38 ISWGX WldCap
Worldwide Communications 39 ISWCX WldCom
- ----------------------------------------------------------------------------------------------------------
Capital Appreciation
Growth 10 FLRFX Grwth
Dynamics 20 FIDYX Dynm
Small Company 74 IDSCX DivSmCo
Emerging Growth 60 FIEGX Emgrth
- ----------------------------------------------------------------------------------------------------------
Growth & Income
Industrial Income 15 FIIIX IndInc
Value Equity 46 FSEQX ValEq
Multi-Asset Allocation 70 IMAAX MulAstAl
Balanced 71 IMABX Bal
Total Return 48 FSFLX TotRtn
- ----------------------------------------------------------------------------------------------------------
Bond
Short-Term Bond 33 INIBX ShTrBd
Intermediate Government Bond 47 FIGBX IntGov
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
High Yield 31 FHYPX HiYld
- ----------------------------------------------------------------------------------------------------------
Tax-Exempt
Tax-Free Intermediate Bond 36 IVTIX *
Tax-Free Long-Term Bond 35 FTIFX TxFre
- ----------------------------------------------------------------------------------------------------------
Money Market
U.S. Government Money Fund 44 FUGXX N/A
Cash Reserves 25 FDSXX N/A
Tax-Free Money Fund 40 FFRXX N/A
</TABLE>
<PAGE>
* This fund does not meet size requirements to be assigned a ticker symbol in
newspaper listings.
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
<PAGE>
INVESCO FUNDS
We're easy to stay in touch with:
INVESCO Services Representatives,
1-800-525-8085
PAL(R), your Personal Account Line,
1-800-424-8085
On the World Wide Web:
http://www.invesco.com
Denver Investor Centers:
Cherry Creek, 155-B Fillmore Street;
Denver Tech Center, 7800 E. Union
Avenue, Lobby Level
INVESCO Funds Group, Inc. (SM), Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
This information must be preceded or accompanied by a current prospectus.
