Semiannual Report
January 31, 1998
INVESCO Multiple Asset Funds
Balanced Fund
Multi-Asset Allocation Fund
No-load mutual funds
seeking capital appreciation
and current income.
INVESCO FUNDS
<PAGE>
Market Overview February 1998
After seven years of economic expansion, will 1998 be the year in which the
U.S. economy slows down? That's the question currently being pondered by
investment professionals. In 1997, near-perfect conditions contributed to
above-average economic growth as measured by the Gross Domestic Product. This
environment was appropriately named the "Goldilocks Economy," as low inflation,
declining interest rates, and increased worker productivity produced
double-digit gains in operating earnings for the fifth straight year for
companies in the S&P 500 -- an unprecedented record. Also, consumer confidence
in 1997 reached the highest level in 28 years, as jobs were plentiful and real
wages improved for many Americans.(1)
Against this backdrop, equity markets produced euphoric returns for
investors -- major equity market indexes (both the S&P 500 and Dow Jones
Industrial Average) returned more than 20% for the third straight year, the
first time in history. However, most of the gains in 1997 were accumulated in
the first eight months of the year; doubts about the sustainability of corporate
profits increased market volatility over the latter half of 1997. In fact, the
Dow Jones Industrial Average experienced swings greater than 100 points on 52
occasions in 1997 (27 up days and 25 down). Fears of slowing economies in the
Asian/Pacific Rim region, and their affect on the U.S. economy, produced the
first market correction in more than seven years -- a decline in value of more
than 10% from the indexes' highs.(1)
Fixed-income markets also produced above-average results in 1997; however,
these returns exhibited a different performance pattern. In the spring of 1997,
fears of inflation and an overheating economy encouraged the Federal Reserve
Board to increase short-term interest rates by 25 basis points. This action
intensified speculation that the economy was expanding too fast, and higher
interest rates were needed to cool it off. However, as inflation remained
subdued, fears diminished. Investors then focused on the potential deflationary
pressure exerted by the Asian currency crisis -- producing strong returns for
fixed-income investors over the last six months. In fact, the implied rate on
the 30-year U.S. government bond started off 1997 at 6.64%, moved to a high of
7.17% in April, and experienced a steady decline throughout the second half of
the year, ending at 5.97%. (Yields tend to decline as prices rise.)
The investment landscape in the U.S. has changed somewhat in 1998, yet, in
many respects, the economy is still poised for growth with benign inflation.
Unemployment remains at historically low levels and real wages are starting to
increase. Intense price competition is keeping consumer prices in check; in many
cases, prices are declining due to the flood of cheap goods from Asian
countries. But for many companies, the easy gains in earnings produced over the
last few years may be difficult to duplicate. Thus, this may be a year with
increased volatility in the equity markets -- leading to a more selective stock
market. For the fixed-income market, the fundamentals driving the rally in bond
prices remain intact, with additional help from the Asian crisis.
<PAGE>
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 1/31/98. 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)
Balanced Fund
While past performance is not a guarantee of future results, $10,000
invested in Balanced Fund upon inception (12/93) would have been worth $20,858
on 1/31/98, including reinvestment of dividends and capital gains. (Of course,
past performance is not a guarantee of future results.)(2)
The fund received the prestigious 4-star risk-adjusted rating from
Morningstar, both overall and for the three-year period ended 1/31/98, among
2,364 equity funds.(3)
For the six-month period ended 1/31/98, INVESCO Balanced Fund had a total
return of 3.99%, compared to a total return of 3.58% for the S&P 500, and 5.12%
for the Lehman Government/Corporate Bond Index. (Of course, past performance is
not a guarantee of future results.)(1),(2)
Strategic Summary
Over the last six months, the Asian financial crisis has changed the
investment landscape, making equity investing a more difficult process. With
this change, we have reduced the fund's exposure to companies that derive a
significant portion of their revenues from Asian economies. Thus, holdings in
the basic materials and capital goods sectors have been reduced since much of
these firms' future growth was dependent on strong Asian economies. We continue
to believe that there is no "quick fix" for Asian financial problems, and
day-to-day market volatility may remain extreme -- leading us to be fairly
conservative with the fund's investments.
Balanced Fund
Average Annual Total Return
as of 1/31/98 (2)
---------------------------------
1 Year 18.21%
---------------------------------
Since inception (12/93) 19.30%
---------------------------------
During the last six months, fund holdings in utilities, consumer staples,
and retailers were increased. Investments in the utility sector may provide
price stability and a high-dividend yield. This should help mitigate market
volatility. Consumer staples and retailers, on the other hand, are likely to
<PAGE>
benefit from continuing strength in the domestic economy. Consumer staples
firms like Colgate-Palmolive Co may also increase their market share in Asian
economies in the long run due to the regional financial crisis -- increasing
potential returns.
The Asian financial crisis has also provided earnings growth opportunities
for selected companies which import from Asia, but sell domestically. These
firms may benefit from cheaper import prices and improved profit margins. One of
our favorite companies fitting this criteria is Tandy Corp., a retailer (Radio
Shack) which specializes in consumer electronics. Also, their recent agreement
to sell Sprint products in their Radio Shack stores should enhance the firm's
profitability for years to come.
Graph:
This line graph compares 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 (12/93) through 1/31/98.
In the fixed-income portion of the portfolio, the fund's strong relative
performance can be attributed to the further development of the "stranded cost"
theme of electric utilities and the use of putable bonds. The electric utilities
industry is in a state of dynamic transition as it moves towards deregulation
and increased competition, ultimately benefiting the low-cost provider of
electricity. But deregulation has also created a problem, because many electric
utilities built power plants on the premise of restricted competition and
regulated prices set forth by the government. State legislatures are now
addressing this issue, allowing many utilities to securitize their stranded
costs. This may permit selected utilities to generate substantial cash flows,
which could in turn reduce their debt levels and possibly improve their credit
ratings. One of our favorite "stranded cost" investments that has produced
strong returns for the fund is Pacific Gas & Electric, based in San Francisco.
The use of putable bonds has also enhanced the performance of the fund.
Putable bonds allow investors to redeem the issue at specified intervals before
maturity and receive full face value. These obligations continue to appear
undervalued compared to the broad market, and offer strong performance with
reduced volatility. Both of these obligations will remain dominant themes in the
fixed-income portion of the portfolio for the near future.
Looking Forward
With the present uncertainty in equity markets, investors need to remember
that this fund is a true balanced fund -- not a "closet equity" fund. The fund
is designed to perform well over the entire market cycle, perhaps lagging the
broad market in extended bull rallies, but potentially outperforming in market
declines.
<PAGE>
We believe that the problems in Asia will continue to exert pressure on
domestic equity markets, and market volatility will remain high. Stock dividends
and fixed-income securities may play a crucial role in determining portfolio
performance in the near future.
Fund Management
Senior Vice President and Director of Investments Charles Mayer is
responsible for the equity side of the portfolio. An industry veteran with 28
years of professional experience, he earned an MBA from St. John's University
and a BA from St. Peter's College. Previously, Charlie was with Westinghouse
Pension.
Since 1994, Senior Vice President and Director of Fixed-Income Investments
Donovan "Jerry" Paul has served as co-portfolio manager of the fund,
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
A $10,000 investment in Multi-Asset Allocation Fund on the fund's inception
date (12/93) would have been worth $16,956 on 1/31/98, including reinvestment of
dividends and capital gains. (Of course, past performance is not a guarantee of
future results.)(2)
The fund received the prestigious 4-star risk-adjusted rating from
Morningstar, both overall and for the three-year period ended 1/31/98, among
2,364 equity funds.(3)
For the six-month period ended 1/31/98, INVESCO Multi-Asset Allocation Fund
had a total return of 3.72%, compared to a total return of 3.58% for the S&P 500
and 5.12% for the Lehman Government/Corporate Bond Index. (Of course, past
performance is not a guarantee of future results.)(1),(2)
Strategic Summary
Equity markets around the world experienced extreme volatility over the last
six months, as the Asian financial crisis raised doubts about corporate earnings
and worldwide economic growth. This volatility highlighted the benefits
associated with the fund's investment approach and active management philosophy,
because combining multiple assets in a single portfolio helped mitigate the
difficult investment environment. The fund allocates investments to the
following asset classes: large-capitalization stocks, small-cap stocks, real
estate securities, fixed-income securities, foreign securities, and cash --
gradually modifying the mix based on our assessment of their relative
valuations.
<PAGE>
Multi-Asset Allocation Fund
Average Annual Total Return
as of 1/31/98 (2)
-------------------------------
1 Year 16.61%
-------------------------------
Since inception (12/93) 13.51%
-------------------------------
During the last six months, the Asian financial crisis spurred a "flight to
quality" in the bond market, so Treasury obligations experienced strong
performance and enhanced the fund's returns. Real estate securities also
benefited from lower interest rates and strength in the domestic economy.
However, what was good for the bond market proved detrimental for U.S. equities,
and both large- and small-cap stocks suffered -- albeit large-cap stocks have
recovered much faster than small-caps. Although the broad equity markets
experienced a correction in the fall of 1997, superior stock selection continues
to improve the relative performance of both small- and large-cap stocks within
the fund.
Graph:
This line graph compares 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 (12/93) through 1/31/98.
We reduced the fund's exposure to large-cap stocks and fixed-income
securities over the last six months. After three years of more than 30% annual
returns for the S&P 500, it appears that many large-cap stocks may be fully
valued -- in many cases overvalued. We have also decreased the fund's allocation
to fixed-income securities as our models indicate that equities offer superior
return opportunities, compared to fixed-income obligations.
The Asian financial crisis also affected foreign securities, causing a sharp
contraction in most of the world's emerging markets. The fund's international
investment team did an excellent job avoiding many of the pitfalls produced by
the Asian financial crisis, as we underweighted the Far East and favored
European securities.
Over the last six months, we increased the fund's presence in real estate,
small-cap stocks, and international stocks. Small-cap stocks appear more
reasonably valued than their large-cap brethren, and we may witness a rotation
into small-cap stocks in 1998. The technical underpinnings for real estate
remain strong, as the projected earnings growth rates for Real Estate Investment
Trusts this year may exceed the earnings growth rate for the S&P 500. For
international stocks, we continue to feel that Europe offers excellent
investment opportunities, as European companies should benefit from decreasing
interest rates, benign inflation, and accelerating earnings.
<PAGE>
Looking Forward
We will continue to monitor the investment climate, making slight
adjustments to the portfolio's asset mix. Presently, our valuation models favor
small-cap stocks, real estate, and international securities. The easy gains in
earnings produced by large-cap stocks in the U.S. over the last couple of years
may be more difficult to reproduce in 1998, and day-to-day volatility in the
equity markets is likely to remain high. This may favor a multiple asset
allocation approach to investing, as diversification may help limit volatility.
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 indexes are unmanaged
indexes of securities considered to be representative of the broad domestic
equity and domestic fixed-income markets, respectively. The Dow Jones Industrial
Average represents large-capitalization U.S. stocks.
(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) Morningstar's proprietary rankings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated for
the fund's three-, five-, and 10-year average annual returns (based on available
track records) in excess of 90-day Treasury bill returns. The top 10% of funds
in an investment group receive 5 stars, the next 22.5%, 4 stars. As of 1/31/98,
Both Balanced Fund and Multi-Asset Allocation Fund received 4 stars among 2,364
funds in the domestic equity fund category for the three-year and overall
period, respectively.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Ten Largest Common Stock Holdings
January 31, 1998
Description Value
- --------------------------------------------------------------------------------
BALANCED Fund
Tandy Corp $4,022,250
SmithKline Beecham PLC ADR
Representing 5 Ord Shrs 3,027,000
America Online 2,870,625
Merck & Co 2,814,000
GTE Corp 2,728,125
MBNA Corp 2,711,756
General Electric 2,673,750
Anheuser-Busch Cos 2,664,794
Bristol-Myers Squibb 2,591,875
Novartis AG Registered Shrs 2,571,735
MULTI-ASSET ALLOCATION Fund
General Electric $286,750
Merck & Co 199,325
AT&T Corp 175,350
SBC Communications 171,050
Bristol-Myers Squibb 159,500
International Business Machines 148,031
Intel Corp 145,800
Travelers Group 133,650
Chase Manhattan 131,626
Abbott Laboratories 120,381
Composition of holdings is subject to change.
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Investment Securities
January 31, 1998
UNAUDITED
<TABLE>
<CAPTION>
Shares or
Principal
Description Amount Value
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCED Fund
COMMON STOCKS 59.86%
AEROSPACE & DEFENSE 1.36%
Northrop Grumman $ 20,000 $ 2,452,500
--------------
BANKS 3.32%
Bank of New York 35,000 1,896,563
Fleet Financial Group 30,500 2,184,563
Wells Fargo & Co 6,100 1,884,900
--------------
5,966,026
--------------
BEVERAGES 1.48%
Anheuser-Busch Cos 59,300 2,664,794
--------------
CHEMICALS 0.87%
Grace (W R) & Co 20,000 1,571,250
--------------
COMPUTER RELATED 5.27%
America Online* 30,000 2,870,625
Cisco Systems* 28,500 1,797,281
CompUSA Inc* 75,700 2,341,969
International Business Machines 25,000 2,467,187
--------------
9,477,062
--------------
CONTAINERS 1.42%
Owens-Illinois Inc* 70,000 2,546,250
--------------
ELECTRIC UTILITIES 2.71%
Endesa SA Sponsored ADR
Representing Ord Shrs 94,000 1,803,625
New Century Energies 33,300 1,517,231
Unicom Corp 50,000 1,550,000
--------------
4,870,856
--------------
<PAGE>
ELECTRICAL EQUIPMENT 4.18%
Emerson Electric $ 41,600 $ 2,516,800
General Cable 60,000 2,328,750
General Electric 34,500 2,673,750
--------------
7,519,300
--------------
FINANCIAL 2.41%
ACNielsen Corp* 75,000 1,621,875
MBNA Corp 87,300 2,711,756
--------------
4,333,631
--------------
FOODS 2.97%
Kellogg Co 37,500 1,732,031
Ralston Purina Group 22,700 2,130,962
Tasty Baking 80,000 1,480,000
--------------
5,342,993
--------------
HEALTH CARE DRUGS --
PHARMACEUTICALS 8.08%
American Home Products 21,000 2,004,188
Bristol-Myers Squibb 26,000 2,591,875
Merck & Co 24,000 2,814,000
Novartis AG Sponsored ADR
Representing 1/20 Shrs 1,500 2,571,735
SmithKline Beecham PLC ADR
Representing 5 Ord Shrs 48,000 3,027,000
Warner-Lambert Co 10,000 1,505,000
--------------
14,513,798
--------------
HEALTH CARE RELATED 0.96%
Tenet Healthcare* 50,000 1,725,000
--------------
HOUSEHOLD PRODUCTS 2.57%
Colgate-Palmolive Co 29,000 2,124,250
Procter & Gamble 31,900 2,500,163
--------------
4,624,413
--------------
LODGING -- HOTELS 0.79%
Hilton Hotels 50,000 1,415,625
--------------
<PAGE>
MACHINERY 1.10%
Kennametal Inc $ 40,000 $ 1,967,500
--------------
NATURAL GAS 0.81%
Coastal Corp 25,000 1,450,000
--------------
OFFICE EQUIPMENT & SUPPLIES 0.83%
Xerox Corp 18,600 1,494,975
--------------
OIL & GAS RELATED 4.98%
Baker Hughes 44,000 1,696,750
EEX Corp* 110,000 928,125
Exxon Corp 40,000 2,372,500
Phillips Petroleum 40,000 1,760,000
United Meridian* 79,500 2,186,250
--------------
8,943,625
--------------
PERSONAL CARE 1.15%
Gillette Co 21,000 2,073,750
--------------
REAL ESTATE INVESTMENT TRUST 1.17%
Boston Properties 59,200 2,105,300
--------------
RETAIL 6.75%
Dayton Hudson 35,000 2,517,812
Dollar General 56,250 2,046,094
Federated Department Stores* 45,000 1,906,875
Tandy Corp 103,800 4,022,250
Williams-Sonoma Inc* 38,500 1,638,656
--------------
12,131,687
--------------
SAVINGS & LOAN 0.84%
Ahmanson (H F) & Co 25,800 1,504,463
--------------
TELECOMMUNICATIONS -- LONG DISTANCE 2.32%
Teleport Communications
Group Class A* 35,500 1,981,344
WorldCom Inc* 61,000 2,184,562
--------------
4,165,906
--------------
<PAGE>
TELEPHONE 1.52%
GTE Corp $ 50,000 $ 2,728,125
--------------
TOTAL COMMON STOCKS
(Cost $89,577,107) 107,588,829
--------------
FIXED INCOME SECURITIES 33.62%
US Government Obligations 3.02%
US Treasury Notes
6.875%, 5/15/2006
(Cost $5,069,834) $ 5,000,000 5,429,690
--------------
US Government Agency Obligations 10.03%
Freddie Mac, Gold, Participation
Certificates
6.500%, 6/1/2011 $ 8,574,842 8,638,809
6.500%, 9/1/2011 $ 8,819,876 8,885,671
Student Loan Marketing
Association, Notes, Series CQ
5.469%, 3/7/2001 $ 500,000 497,507
--------------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $17,409,989) 18,021,987
--------------
Corporate Bonds 20.57%
AUTOMOBILES 1.47%
Auburn Hills Trust, Deb
Gtd Exchangeable Certificates
12.000%, 5/1/2020 $ 1,000,000 1,627,870
General Motors Acceptance
Medium-Term Notes
6.700%, 4/25/2001 $ 1,000,000 1,021,441
--------------
2,649,311
--------------
ELECTRIC UTILITIES 11.72%
Boston Edison, Deb
7.800%, 3/15/2023 $1,925,000 2,037,503
Carolina Power & Light
1st Mortgage
8.625%, 9/15/2021 $1,000,000 1,238,563
6.875%, 8/15/2023 $1,000,000 1,000,637
DQU-II Funding, Collateral Lease
8.700%, 6/1/2016 $2,000,000 2,258,839
Detroit Edison
<PAGE>
Secured Medium-Term Notes
Series C, 8.300%, 1/13/2023 $ 1,000,000 $ 1,109,674
Jersey Central Power & Light
1st Mortgage
7.500%, 5/1/2023 $ 1,000,000 1,058,137
6.750%, 11/1/2025 $ 1,000,000 988,736
Metropolitan Edison
Medium-Term Secured Notes
Series B, 8.150%, 1/30/2023 $ 2,000,000 2,201,267
New York State Electric & Gas, 1st
Mortgage, 8.300%, 12/15/2022 $ 1,500,000 1,620,471
Pacific Gas & Electric
1st & Ref Mortgage
Series 91A, 8.800%, 5/1/2024 $ 1,000,000 1,272,659
Series 92D, 8.250%, 11/1/2022 $ 1,000,000 1,068,665
Pennsylvania Power & Light
1st Mortgage, 8.500%, 5/1/2022 $ 1,500,000 1,692,784
Potomac Electric Power, 1st
Mortgage, 6.250%, 10/15/2007 $ 1,500,000 1,527,105
South Carolina Electric & Gas, 1st
Mortgage, 8.875%, 8/15/2021 $ 1,750,000 1,985,429
--------------
21,060,469
--------------
ENTERTAINMENT 0.57%
Time Warner, Deb
6.850%, 1/15/2026 $ 1,000,000 1,020,048
--------------
HEALTH CARE DRUGS --
PHARMACEUTICALS 1.04%
McKesson Corp, Sub Deb
4.500%, 3/1/2004 $ 2,000,000 1,862,956
--------------
INSURANCE 1.28%
Equitable Cos, Sr Notes
9.000%, 12/15/2004 $ 2,000,000 2,306,542
--------------
OIL & GAS RELATED 1.29%
Sun Inc, Deb, 9.375%, 6/1/2016 $ 2,000,000 2,316,060
--------------
PAPER & FOREST PRODUCTS 1.49%
Champion International, Deb
6.400%, 2/15/2026 $ 1,000,000 1,025,170
Quno Corp, Sr Notes
9.125%, 5/15/2005 $ 1,500,000 1,653,750
--------------
<PAGE>
$ 2,678,920
--------------
TELECOMMUNICATIONS --
CELLULAR & WIRELESS 0.83%
360 Communications, Sr Notes
6.650%, 1/15/2008 $ 1,500,000 1,492,128
--------------
TELEPHONE 0.88%
Frontier Corp, Notes
7.250%, 5/15/2004 $ 1,500,000 1,585,852
--------------
TOTAL CORPORATE BONDS
(Cost $35,666,919) 36,972,286
--------------
TOTAL FIXED INCOME SECURITIES
(Cost $58,146,742) 60,423,963
--------------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 6.52%
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/30/1998 due 2/2/1998
at 5.530%, repurchased at
$11,727,402 (Collateralized by
US Treasury Bills, Discount
Notes due 7/23/1998, value
$11,958,375)
(Cost $11,722,000) $11,722,000 11,722,000
--------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $159,445,849)
(Cost for Income Tax Purposes
$159,453,292) $ 179,734,792
==============
MULTI-ASSET ALLOCATION Fund
COMMON STOCKS & WARRANTS 71.74%
AEROSPACE & DEFENSE 0.67%
GenCorp Inc 500 $ 12,375
Northrop Grumman 800 98,100
--------------
110,475
--------------
<PAGE>
AIR FREIGHT 0.46%
Airborne Freight 300 21,338
Expeditors International of Washington 400 12,450
Halter Marine Group* 400 8,250
Hvide Marine Class A* 400 7,350
Yellow Corp* 1,000 26,125
--------------
75,513
--------------
AIRLINES 0.34%
America West Holdings Class B* 600 13,087
British Airways PLC Sponsored
ADR Representing 10 Ord Shrs 500 42,125
--------------
55,212
--------------
AUTO PARTS 0.78%
Arvin Industries 800 27,600
Borg-Warner Automotive 1,600 85,700
Detroit Diesel* 800 15,400
--------------
128,700
--------------
AUTOMOBILES 0.90%
Chrysler Corp 3,100 107,919
Volvo AB Sponsored ADR
Representing Class B Shrs 1,500 40,500
--------------
148,419
--------------
BANKS 6.29%
Banco Santander SA Sponsored
ADR Representing Ord Shrs 1,500 52,031
BankAmerica Corp 1,400 99,487
CCB Financial 100 10,219
Chase Manhattan 1,228 131,626
Citicorp 700 83,300
Cullen Frost Bankers 300 16,462
Den Danske Bank ADR
Representing Ord Shrs 500 66,752
Deutsche Bank AG Sponsored
ADR Representing Ord Shrs 700 45,530
Development Bank of Singapore Ltd
Sponsored ADR Representing
4 Ord Shrs 1,200 29,913
<PAGE>
First American 800 $ 35,850
HSBC Holdings PLC Sponsored
ADR Representing 10 Ord Shrs 200 44,324
Imperial Bancorp* 400 18,425
Istituto Mobiliare Italiano SpA
Sponsored ADR Representing
3 Shrs 1,400 57,400
KeyCorp 600 39,000
Magna Group 800 36,050
National Australia Bank Ltd
Sponsored ADR Representing
5 Ord Shrs 800 55,200
Riggs National 400 10,275
Societe Generale Sponsored
ADR Representing 1/5 Ord Shrs 2,000 52,009
Southtrust Corp 1,900 107,231
TR Financial 400 11,900
US Trust 200 11,875
Vermont Financial Services 200 5,438
Webster Financial 300 18,281
--------------
1,038,578
--------------
BEVERAGES 0.61%
Canandaigua Brands Class A* 300 16,012
Coca-Cola Co 800 51,800
Kirin Brewery Ltd ADR
Representing 10 Ord Shrs 400 33,200
--------------
101,012
--------------
BROADCASTING 0.32%
Carlton Communications PLC
Sponsored ADR Representing
5 Ord Shrs 1,500 52,688
--------------
BUILDING MATERIALS 0.56%
Cemex SA de CV Sponsored ADR
Representing 2 Series B Shrs* 3,000 25,390
Centex Construction Products 500 15,375
Southdown Inc 400 25,225
TJ International 300 7,388
Texas Industries 400 19,575
--------------
92,953
--------------
<PAGE>
CABLE 0.21%
CableVision Systems Class A* 400 $ 35,350
--------------
CHEMICALS 1.99%
Akzo Nobel NV Sponsored ADR
Representing 0.5 Ord Shrs 700 63,438
Bayer AG Sponsored ADR
Representing Ord Shrs 1,000 37,582
Dexter Corp 500 20,406
du Pont (E I) de Nemours 1,800 101,925
Fuller (H B) Co 500 26,250
Morton International 1,100 36,300
Rohm & Haas 500 42,875
--------------
328,776
--------------
COMMUNICATIONS --
EQUIPMENT & MANUFACTURING 0.16%
Comverse Technology* 260 8,759
Tekelec* 400 12,975
World Access* 200 5,075
--------------
26,809
--------------
COMPUTER RELATED 3.65%
Activision Inc* 1,100 15,675
BancTec Inc* 1,000 25,562
CHS Electronics* 500 10,031
Compaq Computer 1,500 45,094
Computer Horizons* 200 8,369
Computer Task Group 200 7,500
Data General* 500 7,719
Dell Computer* 900 89,494
Hyperion Software* 300 12,112
International Business Machines 1,500 148,031
Manugistics Group* 400 16,150
Microsoft Corp* 800 119,350
Networks Associates* 1,000 54,000
SMART Modular Technologies* 600 17,194
Symantec Corp* 400 9,450
Systems & Computer Technology* 400 16,700
--------------
602,431
--------------
<PAGE>
CONSUMER FINANCE 0.25%
American Express 500 $ 41,844
--------------
DISTRIBUTION 0.53%
Arrow Electronics* 2,700 87,412
--------------
ELECTRIC UTILITIES 1.82%
Central Louisiana Electric 400 12,425
CILCORP Inc 300 13,425
Commonwealth Energy System SBI 400 13,750
Endesa SA Sponsored ADR
Representing Ord Shrs 2,000 38,375
GPU Inc 1,100 43,244
Hawaiian Electric Industries 300 11,719
MidAmerican Energy Holdings 2,400 49,650
Minnesota Power & Light 200 7,900
PacifiCorp 1,800 41,738
PowerGen PLC Sponsored ADR
Representing 4 Ord Shrs 1,000 55,188
SIGCORP Inc 450 12,853
--------------
300,267
--------------
ELECTRICAL EQUIPMENT 2.48%
C&D Technologies 100 4,887
General Electric 3,700 286,750
Hitachi Ltd Sponsored ADR
Representing 10 Shrs 600 48,150
Kyocera Corp Sponsored ADR
Representing 2 Shrs 350 38,675
Matsushita Electric Industrial
Ltd Sponsored ADR
Representing 10 Shrs 200 30,788
--------------
409,250
--------------
ELECTRONICS 0.65%
Brown & Sharpe Manufacturing Class A* 700 7,219
SCI Systems* 2,300 100,050
--------------
107,269
--------------
ELECTRONICS -- SEMICONDUCTOR 1.23%
Burr-Brown Corp* 300 10,631
DSP Group* 400 8,950
<PAGE>
Dallas Semiconductor 800 $ 37,800
Intel Corp 1,800 145,800
--------------
203,181
--------------
ENGINEERING & CONSTRUCTION 0.05%
Stone & Webster 200 7,750
--------------
FOODS 2.49%
Associated British Foods PLC
ADR Representing Ord Shrs 6,000 59,105
Dean Foods 2,000 114,750
Dole Food 2,300 106,950
Nestle SA Sponsored ADR
Representing 1/20 Registered Shrs 900 71,815
Smithfield Foods* 400 13,350
Unilever NV New York Shrs 800 45,650
--------------
411,620
--------------
GAMING 0.04%
Anchor Gaming* 100 5,750
--------------
GOLD & PRECIOUS METALS MINING 0.32%
Rio Tinto Ltd Sponsored ADR
Representing 4 Ord Shrs 1,000 53,061
--------------
HEALTH CARE DRUGS --
PHARMACEUTICALS 5.37%
Abbott Laboratories 1,700 120,381
Agouron Pharmaceuticals* 500 17,375
ALPHARMA Inc Class A 700 14,394
Astra AB Sponsored ADR
Representing Series A Shrs 3,500 63,438
Bindley Western Industries 500 13,969
Bristol-Myers Squibb 1,600 159,500
Carter-Wallace Inc 1,100 18,425
Glaxo Wellcome PLC Sponsored
ADR Representing 2 Ord Shrs 1,000 53,813
Johnson & Johnson 1,400 93,713
Merck & Co 1,700 199,325
Novartis AG Sponsored ADR
Representing 1/20 Shrs 700 60,007
<PAGE>
Novo-Nordisk A/S Sponsored ADR
Representing 0.5 Class B Shrs 900 $ 64,575
Perrigo Co* 700 8,138
--------------
887,053
--------------
HEALTH CARE RELATED 2.02%
ATL Ultrasound* 700 29,050
Arterial Vascular Engineering* 200 14,700
Cooper Cos* 200 9,925
Hillenbrand Industries 1,000 51,250
Hooper Holmes 600 8,700
Integrated Health Services 800 22,900
NovaCare Inc* 600 7,500
PAREXEL International* 300 10,350
Safeskin Corp* 1,800 101,813
Sun Healthcare Group* 900 16,763
Trigon Healthcare* 1,200 29,850
Universal Health Services Class B* 400 18,650
West Co 400 12,225
--------------
333,676
--------------
HOMEBUILDING 0.30%
Nortek Inc* 300 7,781
Pulte Corp 700 29,838
US Home* 300 11,381
--------------
49,000
--------------
HOUSEHOLD FURNITURE
& APPLIANCES 1.05%
Ethan Allen Interiors 800 38,300
Furniture Brands International* 1,000 25,812
Miller (Herman) Inc 1,900 109,962
--------------
174,074
--------------
HOUSEHOLD PRODUCTS 0.57%
Procter & Gamble 1,200 94,050
--------------
INSURANCE 3.50%
ACE Ltd 1,000 93,063
CIGNA Corp 500 84,781
Commerce Group 200 6,512
Frontier Insurance Group 880 21,010
Guarantee Life 600 16,575
<PAGE>
Horace Mann Educators 600 $ 19,275
ING Groep NV Sponsored ADR
Representing Ord Shrs 1,000 45,625
Life Re 200 12,300
Loews Corp 1,100 109,794
Orion Capital 500 22,281
Presidential Life 700 12,513
Travelers Group 2,700 133,650
--------------
577,379
--------------
INVESTMENT BANK/BROKER FIRM 0.83%
Bear Stearns 2,600 108,712
Dain Rauscher 500 28,375
--------------
137,087
--------------
IRON & STEEL 0.69%
USX-US Steel Group 3,400 113,475
--------------
LEISURE TIME 0.04%
Carmike Cinemas Class A* 200 6,012
--------------
LODGING -- HOTELS 0.05%
Bristol Hotels* 300 7,537
--------------
MACHINERY 0.67%
Asyst Technologies* 400 9,150
Graco Inc 600 25,087
Manitowoc Co 450 15,300
Terex Corp* 600 12,638
Timken Co 1,500 48,375
--------------
110,550
--------------
MANUFACTURING 0.49%
RWE AG Sponsored ADR
Representing Ord Shrs 1,000 55,935
Robbins & Myers 600 18,750
Tredegar Industries 100 6,431
--------------
81,116
--------------
NATURAL GAS 0.84%
Coastal Corp 1,200 69,600
<PAGE>
MCN Corp 1,100 $ 40,700
New Jersey Resources 400 14,200
ONEOK Inc 400 13,675
--------------
138,175
--------------
OFFICE EQUIPMENT & SUPPLIES 0.09%
United Stationers* 300 14,438
--------------
OIL & GAS RELATED 4.44%
Amoco Corp 700 56,962
Cliffs Drilling* 400 16,900
Cooper Cameron* 800 41,150
Elf Aquitaine SA Sponsored ADR
Representing 0.5 Ord Shrs 600 33,938
Energen Corp 400 15,600
Exxon Corp 1,400 83,037
HS Resources* 600 8,437
Marine Drilling* 600 10,800
Maverick Tube* 400 8,675
Mobil Corp 1,400 95,375
Newpark Resources* 900 14,625
Norsk Hydro A/S Sponsored ADR
Representing Ord Shrs 800 36,000
Phillips Petroleum 2,200 96,800
Repsol SA Sponsored ADR
Representing Ord Shrs 1,000 42,688
Royal Dutch Petroleum New York
Registry 1.25 Gldr Shrs 1,000 51,250
St Mary Land & Exploration 300 10,125
Smith International* 1,400 69,475
Veritas DGC* 800 29,550
YPF SA Sponsored ADR
Representing Class D Shrs 400 12,175
--------------
733,562
--------------
PERSONAL CARE 0.08%
Rexall Sundown* 400 13,825
--------------
PHOTOGRAPHY & IMAGING 0.38%
Fuji Photo Film Ltd ADR 1,500 62,813
--------------
PUBLISHING 0.79%
Central Newspapers Class A 800 51,400
<PAGE>
Consolidated Graphics* 300 $ 12,244
Gannett Co 800 48,400
Media General Class A 400 18,200
--------------
130,244
--------------
REAL ESTATE INVESTMENT TRUST 11.01%
American General Hospitality 2,400 66,150
Apartment Investment &
Management Class A 900 33,412
Arden Realty Group 2,000 56,500
Bedford Property Investors 2,000 42,375
CBL & Associates Properties 2,600 64,187
Chelsea GCA Realty 400 15,250
EastGroup Properties SBI 1,200 25,200
Equity Office Properties Trust SBI 2,531 76,731
Equity Residential Properties Trust SBI 1,400 71,575
Essex Property Trust 1,900 65,431
Excel Realty Trust 900 28,800
FelCor Suite Hotels 1,300 48,506
First Industrial Realty Trust 700 25,112
Gables Residential Trust SBI 1,400 38,237
General Growth Properties 700 25,725
Healthcare Realty Trust 600 17,962
Highwoods Properties 1,100 39,806
JP Realty 600 14,587
Kimco Realty 1,550 53,475
Koger Equity 3,100 70,525
Liberty Property Trust SBI 3,100 84,087
MGI Properties 1,900 47,500
Mack-Cali Realty 1,500 60,469
Merry Land & Investment 1,800 41,513
Oasis Residential 1,100 24,063
Pan Pacific Retail Properties 700 15,400
Patriot American Hospitality 2,698 69,136
Prentiss Properties Trust 2,700 73,575
Price REIT 1,200 53,250
Prime Group Realty Trust 1,300 26,650
Public Storage 1,100 36,163
Security Capital Industrial Trust SBI 763 19,504
Shurgard Storage Centers Class A 1,800 51,413
Simon DeBartolo Group 1,300 43,144
Smith (Charles E) Residential Realty 1,300 45,013
Starwood Hotels & Resorts Trust 900 48,938
<PAGE>
Sun Hung Kai Properties Ltd
Sponsored ADR Representing Ord Shrs 5,500 $ 28,216
Sunstone Hotel Investors 2,500 42,031
Tower Realty Trust 1,400 35,525
TriNet Corporate Realty Trust 800 31,300
Vornado Realty Trust SBI 600 27,300
Weeks Corp 1,100 34,306
--------------
1,818,042
--------------
REAL ESTATE RELATED 0.40%
Kilroy Realty 1,600 45,600
Parkway Properties 600 20,475
Security Capital Group
Warrants (Exp 1998)* 35 123
--------------
66,198
--------------
RESTAURANTS 0.44%
Brinker International* 800 13,400
CKE Restaurants 935 41,315
ShowBiz Pizza Time* 700 17,238
--------------
71,953
--------------
RETAIL 2.10%
Ames Department Stores* 1,300 18,687
Bon-Ton Stores* 200 2,800
Cash America International 700 8,312
Costco Cos* 2,300 99,762
Federated Department Stores* 1,500 63,562
Footstar Inc* 400 10,700
Lands' End* 200 7,862
Paul Harris Stores* 300 2,588
Pier 1 Imports 1,050 24,544
TJX Cos 3,200 108,400
--------------
347,217
--------------
SAVINGS & LOAN 0.59%
Astoria Financial 700 35,962
Downey Financial 100 2,812
FirstFed Financial* 300 10,537
ONBANCorp Inc 200 13,950
Peoples Heritage Financial Group 300 12,900
Sovereign Bancorp 800 14,900
WSFS Financial* 300 6,000
--------------
97,061
--------------
<PAGE>
SERVICES 1.10%
Caribiner International* 700 $ 22,050
Cendant Corp* 2,403 81,405
DeVRY Inc* 600 18,150
G&K Services Class A 700 29,575
Gerber Scientific 400 7,250
Norrell Corp 800 15,900
True North Communications 300 7,444
--------------
181,774
--------------
SPECIALTY PRINTING 0.23%
Dai Nippon Printing Ltd ADR
Representing 10 Ord Shrs 200 37,066
TELECOMMUNICATIONS --
CELLULAR & WIRELESS 0.37%
Brightpoint Inc* 800 13,450
CellStar Corp* 700 13,912
Centennial Cellular Class A* 600 12,600
PriCellular Corp Class A* 500 5,844
Spectrian Corp* 900 15,750
--------------
61,556
--------------
TELECOMMUNICATIONS --
LONG DISTANCE 2.25%
AT&T Corp 2,800 175,350
British Telecommunications PLC
Sponsored ADR Representing
10 Ord Shrs 800 76,300
MasTec Inc* 200 6,413
Portugal Telecom SA Sponsored
ADR Representing Ord Shrs 1,000 50,875
Premiere Technologies* 300 7,500
Telecom Italia SpA Sponsored
ADR Representing 10 Shrs 800 55,500
--------------
371,938
--------------
TELEPHONE 1.45%
SBC Communications 2,200 171,050
Telefonica de Espana SA
<PAGE>
Sponsored ADR Representing
3 Ord Shrs 700 $ 68,338
--------------
239,388
--------------
TEXTILE -- APPAREL
MANUFACTURING 1.05%
Jones Apparel Group* 2,500 108,750
Kellwood Co 300 9,113
Nautica Enterprises* 300 8,400
Oxford Industries 200 6,000
Unifi Inc 1,000 41,000
--------------
173,263
--------------
TEXTILE -- HOME FURNISHINGS 0.21%
Interface Inc Class A 400 14,150
Springs Industries Class A 400 21,050
--------------
35,200
--------------
TOBACCO 0.58%
Philip Morris 1,400 58,100
Standard Commercial* 400 6,550
Universal Corp 800 30,950
--------------
95,600
--------------
TOYS 0.32%
Nintendo Co Ltd ADR
Representing 1/8 Shrs 4,000 52,000
--------------
TRUCKERS 0.64%
CNF Transportation 2,300 105,081
--------------
TOTAL COMMON STOCKS & WARRANTS
(Cost $9,765,121) 11,841,723
--------------
PREFERRED STOCKS 0.43%
REAL ESTATE INVESTMENT TRUST 0.43%
Home Ownership Funding
13.331%^^, Stepdown Pfd^ 40 39,600
Tier I Properties
11.095%^^, Stepdown Pfd^ 30 31,275
--------------
70,875
--------------
<PAGE>
TOTAL PREFERRED STOCKS
(Cost $70,000)
FIXED INCOME SECURITIES 17.22%
US Government Obligations 4.41%
US Treasury Bonds 7.875%, 2/15/2021 $ 310,000 $ 386,144
US Treasury Notes 7.500%, 11/15/2001 $ 225,000 241,031
6.250%, 5/31/1999 $ 100,000 101,094
--------------
TOTAL US GOVERNMENT OBLIGATIONS
(Cost $701,950) 728,269
--------------
US Government Agency Obligations 5.22%
Federal Home Loan Bank
6.150%, 11/5/1999 $ 100,000 100,057
Freddie Mac, Gold Participation
Certificates
9.000%, 1/1/2005 $ 20,948 21,748
9.000%, 1/1/2007 $ 24,610 25,515
8.000%, 8/1/2017 $ 28,752 29,674
Fannie Mae, Gtd Pass-Through Certificates
9.000%, 12/1/2006 $ 65,250 68,020
9.000%, 8/1/2007 $ 49,417 51,514
7.000%, 1/1/2028 $ 199,708 202,579
6.500%, 9/1/2027 $ 69,094 68,782
6.000%, 4/1/2024 $ 42,541 41,602
Fannie Mae, Gtd REMIC
Pass-Through Certificates
7.500%, 11/25/2006 $ 75,000 77,241
6.000%, 2/25/2013 ~~ $ 100,000 99,125
Government National Mortgage
Association I, REMIC Pass-Through
Certificates, 7.000%, 1/16/2007 $ 75,000 75,785
--------------
TOTAL US GOVERNMENT
AGENCY OBLIGATIONS
(Cost $ 853,711) 861,642
--------------
Asset-Backed Securities 1.08%
CONSUMER FINANCE 1.08%
Advanta Mortgage Loan Trust, Notes,
Series 1997-4, Class A4
6.660%, 3/25/2022 $ 100,000 101,421
FirstPlus Home Loan Trust, Notes
Series 1997-4, Class A4
6.570%, 4/10/2013 $ 75,000 76,375
TOTAL ASSET-BACKED SECURITIES
(Cost $ 174,823)
--------------
177,796
--------------
<PAGE>
Mortage-Backed Securities 1.06%
CONSUMER FINANCE 0.60%
Contimortgage Home Equity Loan Trust,
Pass-Through Certificates,
Series 1997-2 Class A2,
6.400%, 1/15/2012 $ 100,000 $ 99,909
--------------
FINANCIAL 0.46%
IMC Home Equity Loan Trust Pass-Through
Certificates Series 1997-3, Class A3
6.710%, 1/20/2012 $ 75,000 75,708
--------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $ 174,909) 175,617
--------------
Corporate Bonds 5.45%
AUTOMOBILES 0.46%
General Motors Acceptance Medium-Term Notes
6.400%, 5/19/1999 $ 75,000 75,464
--------------
COMMUNICATIONS -- EQUIPMENT &
MANUFACTURING 0.59%
Motorola Inc, Deb 8.400%, 8/15/2031 $ 75,000 96,745
--------------
CONSUMER FINANCE 0.36%
Beneficial Corp, Deb 8.400%, 5/15/2008 $ 50,000 58,974
--------------
FINANCIAL 1.48%
Associates Corp of North America,
Sr Notes, 7.750%, 2/15/2005 $ 100,000 109,377
Commercial Credit, Notes
6.625%, 6/1/2015 $ 75,000 76,783
General Electric Capital Medium-Term
Step-Up Notes++
5.800%, 4/1/2008 $ 50,000 58,448
--------------
$ 244,608
--------------
INVESTMENT BANK/BROKER FIRM 0.30%
Bear Stearns, Sr Notes
6.250%, 12/1/2000 $ 50,000 50,422
--------------
<PAGE>
REAL ESTATE INVESTMENT TRUST 0.89%
Kimko Realty, Medium-Term
Notes, 7.060%, 7/14/2009 $ 50,000 $ 52,840
Spieker Properties LP, Notes
7.125%, 12/1/2006 $ 50,000 51,760
Weingarten Realty Investors
Series A, Medium-Term Notes
6.900%, 11/24/2008 $ 40,000 42,081
--------------
146,681
--------------
TELECOMMUNICATIONS -- 0.30%
LONG DISTANCE
BellSouth Telecommunications
Deb, 5.850%, 11/15/2045 $ 50,000 50,422
--------------
TELEPHONE 1.07% GTE Corp, Deb
10.250%, 11/1/2020 $ 50,000 57,071
7.510%, 4/1/2009 $ 40,000 43,532
US WEST Capital Funding, Notes
6.310%, 11/1/2005 $ 75,000 75,571
--------------
176,174
--------------
TOTAL CORPORATE BONDS
(Cost $ 865,375) 899,490
--------------
TOTAL FIXED INCOME SECURITIES
(Cost $2,770,768) 2,842,814
--------------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 10.61%
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/30/1998 due 2/2/1998
at 5.530%, repurchased at
$1,752,807 (Collateralized by
US Treasury Bonds due
11/15/2015 at 9.875%, value
$1,793,462)
(Cost $1,752,000) $ 1,752,000 1,752,000
--------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $14,357,889)
(Cost for Income Tax Purposes
$14,361,320) $ 16,507,412
==============
</TABLE>
<PAGE>
* Security is non-income producing.
^^ Security is a perpetual stepdown. Step down securities are obligations
which decrease the interest payment rate at a specific point in time. Rate
shown reflects current rate which will step down at a future date.
^ Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale to institutional investors.
~ Security is a To-Be-Announced (TBA) Security.
++ Step up bonds are obligations which increase the interest payment rate at a
specific point in time. Rate shown reflects current rate which may step up
at a future date.
See Notes to Financial Statements
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Assets and Liabilities
January 31, 1998
UNAUDITED
<TABLE>
<CAPTION>
Balanced Multi-Asset
Fund Allocation Fund
------------------------------------
<S> <C> <C>
ASSETS
Investment Securities:
At Cost~ $159,445,849 $14,357,889
====================================
At Value~ $179,734,792 $16,507,412
Cash 639 208
Receivables:
Investment Securities Sold 2,825,179 573,866
Fund Shares Sold 245,082 54,036
Dividends and Interest 949,520 27,605
Prepaid Expenses and Other Assets 44,280 61,314
------------------------------------
TOTAL ASSETS 183,799,492 17,224,441
------------------------------------
LIABILITIES
Payables:
Distributions to Shareholders 15,124 1,415
Investment Securities Purchased 5,349,192 380,203
Fund Shares Repurchased 361,983 78,851
Accrued Distribution Expenses 35,512 3,385
Accrued Expenses and Other Payables 21,719 13,648
------------------------------------
TOTAL LIABILITIES 5,783,530 477,502
------------------------------------
Net Assets at Value $178,015,962 $16,746,939
====================================
NET ASSETS
Paid-in Capital* $158,373,414 $14,354,696
Accumulated Undistributed
(Distributions in Excess of)
Net Investment Income 14,518 (1,417)
Accumulated Undistributed Net
Realized Gain (Loss) on
Investment Securities and
Foreign Currency Transactions (660,989) 244,137
------------------------------------
Net Appreciation of Investment
<PAGE>
Securities and Foreign Currency
Transactions 20,289,019 2,149,523
------------------------------------
Net Assets at Value $178,015,962 $16,746,939
====================================
Shares Outstanding 12,174,467 1,334,267
Net Asset Value, Offering and
Redemption Price per Share $14.62 $12.55
====================================
</TABLE>
~ Investment securities at cost and value at January 31, 1998 include repurchase
agreements of $11,722,000 and $1,752,000 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, 1998
UNAUDITED
<TABLE>
<CAPTION>
Balanced Multi-Asset
Fund Allocation Fund
INVESTMENT INCOME ------------------------------------
INCOME
<S> <C> <C>
Dividends $ 589,361 $ 130,952
Interest 2,325,060 136,184
Foreign Taxes Withheld (6,587) (2,823)
------------------------------------
TOTAL INCOME 2,907,834 264,313
EXPENSES
Investment Advisory Fees 508,528 61,855
Distribution Expenses 211,907 20,618
Transfer Agent Fees 217,576 30,422
Administrative Fees 17,713 6,237
Custodian Fees and Expenses 4,376 7,188
Directors' Fees and Expenses 9,888 5,035
Professional Fees and Expenses 13,333 7,717
Registration Fees and Expenses 37,653 17,404
Reports to Shareholders 28,857 2,887
Other Expenses 6,726 1,994
------------------------------------
TOTAL EXPENSES 1,056,557 161,357
Fees and Expenses Absorbed by
Investment Adviser (1,934) (35,153)
Fees and Expenses Paid Indirectly (2,853) (2,560)
------------------------------------
NET EXPENSES 1,051,770 123,644
------------------------------------
NET INVESTMENT INCOME 1,856,064 140,669
------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 4,876,828 825,040
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions (186,607) (347,594)
------------------------------------
NET GAIN ON INVESTMENT SECURITIES 4,690,221 477,446
------------------------------------
Net Increase in Net Assets from
Operations $ 6,546,285 $ 618,115
====================================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Multiple Asset Funds, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Balanced Multi-Asset
Fund Allocation Fund
------------------------------- ------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
January 31 July 31 January 31 July 31
------------------------------- ------------------------------
1998 1997 1998 1997
UNAUDITED UNAUDITED
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income $ 1,856,064 3,268,902 $ 140,669 $ 294,219
Net Realized Gain on Investment
Securities and Foreign Currency
Transactions 4,876,828 12,406,672 825,040 1,555,676
Change in Net Appreciation of
Investment Securities and Foreign
Currency Transactions (186,607) 19,416,347 (347,594) 1,745,166
------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS 6,546,285 35,091,921 618,115 3,595,061
------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (1,989,596) (3,256,031) (152,941) (292,965)
Net Realized Gain on Investment Securities
and Foreign Currency Transactions (17,002,467) (7,920,456) (1,829,971) (828,800)
------------------------------- ------------------------------
TOTAL DISTRIBUTIONS (18,992,063) (11,176,487) (1,982,912) (1,121,765)
------------------------------- ------------------------------
<PAGE>
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 72,992,944 157,332,062 11,649,484 42,685,783
Reinvestment of Distributions 18,015,461 10,886,903 1,914,897 1,101,635
------------------------------ ------------------------------
91,008,405 168,218,965 13,564,381 43,787,418
Amounts Paid for Repurchases of Shares (62,467,386) (145,279,529) (12,569,987) (38,716,952)
------------------------------ ------------------------------
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS 28,541,019 22,939,436 994,394 5,070,466
------------------------------ ------------------------------
Total Increase (Decrease) in Net Assets 16,095,241 46,854,870 (370,403) 7,543,762
NET ASSETS
Beginning of Period 161,920,721 115,065,851 17,117,342 9,573,580
------------------------------ ------------------------------
End of Period $178,015,962 $161,920,721 $16,746,939 $17,117,342
============================== ==============================
Accumulated Undistributed (Distributions
in Excess of) Net Investment Income
Included in Net Assets at End of Period $14,518 $148,050 $(1,417) $10,855
============================== ==============================
FUND SHARE TRANSACTIONS
Shares Sold 4,671,558 10,958,657 849,301 3,446,561
Shares Issued from Reinvestment
of Distributions 1,257,741 779,085 155,015 91,434
------------------------------ ------------------------------
5,929,299 11,737,742 1,004,316 3,537,995
Shares Repurchased (3,966,816) (10,136,122) (915,378) (3,121,290)
------------------------------ ------------------------------
Net Increase in Fund Shares 1,962,483 1,601,620 88,938 416,705
============================== ==============================
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") is incorporated in Maryland and
presently consists of two separate Funds: Balanced Fund and Multi-Asset
Allocation Fund. The investment objectives of each Fund 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
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.
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 are acquired. Income and expenses are
translated into U.S. dollars at the rates of exchange prevailing when
accrued.
<PAGE>
B. TO-BE-ANNOUNCED SECURITIES -- To-Be-Announced ("TBA") securities held by
the Fund are fully collateralized by other 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
TBA securities.
C. REPURCHASE AGREEMENTS-- Repurchase agreements held by the Fund are fully
collateralized by U.S. Government securities and such collateral is in the
possession of the Fund's custodian. The collateral is evaluated daily to
ensure its market value exceeds the current market value of the repurchase
agreements including accrued interest. In the event of default on the
obligation to repurchase, the Fund has the right to liquidate the
collateral and apply the proceeds in satisfaction of the obligation. In the
event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral or proceeds may be subject
to legal proceedings.
D. DOLLAR ROLL TRANSACTIONS -- The Fund may enter into mortgage "dollar
rolls" in which it sells securities for delivery in the current month and
simutaneously contracts with the same counter party to repurchase similar
(same type, coupon and maturity) but not identical securities on a
specified future date. The Fund would benefit to the extent of any
difference between the price received for the securities sold and the lower
forward price for the future purchase plus any fee income received. These
amounts are included in interest income. The Fund maintains segregated
assets, the dollar value of which meets or exceeds its obligations with
respect to dollar rolls.
E. 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 and premiums 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.
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.
<PAGE>
Investments in securities of governmental agencies may only be guaranteed
by the respective agency's limited authority to borrow from the U.S.
Government and may not be guaranteed by the full faith and credit of the
United States.
F. 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.
To the extent future capital gains are offset by capital loss carryovers,
such gains will not be distributed to shareholders.
Dividends paid by the Fund from net investment income and distributions
of net realized short-term capital gains are, for federal income tax
purposes, taxable as ordinary income to shareholders.
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.
G. 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, amortized premiums, foreign currency
transactions, nontaxable dividends, net operating losses and expired
capital loss carryforwards.
H. 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.
I. 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. Similarly, Transfer
Agent Fees and Distribution Expenses are reduced by credits earned by
<PAGE>
each Fund from security brokerage transactions under certain broker/service
arrangements with third parties. Such credits are included in Fees and
Expenses Paid Indirectly in the Statement of Operations.
For the six months ended January 31, 1998, Fees and Expenses Paid
Indirectly consisted of the following:
Custodian Fees Transfer Distribution
Fund and Expenses Agent Fees Expenses
----------------------------------------------------------------------------
Balanced Fund $2,789 $44 $20
Multi-Asset Allocation Fund 2,560 0 0
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. Effective February 4, 1998, such responsibilities
were transferred to IFG. 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 provides for
compensation of marketing and advertising expenditures to IFG (the
"Distributor") to a maximum of 0.25% of annual average net assets. For the six
months ended January 31, 1998, Balanced and Multi-Asset Allocation Funds paid
the Distributor $210,102 and $20,893, respectively, under the plan of
distribution. Effective September 29, 1997, INVESCO Distributors, Inc., a wholly
owned subsidiary of IFG, replaced IFG as Distributor.
<PAGE>
IFG has 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, 1998, 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 $110,919,081 $97,924,717
Multi-Asset Allocation Fund 4,537,470 4,566,532
The aggregate cost of purchases and proceeds from sales of U.S. Government
securities were as follows:
Fund Purchases Sales
- --------------------------------------------------------------------------------
Balanced Fund $ 0 $1,013,438
Multi-Asset Allocation Fund 2,462,397 3,311,827
NOTE 4 --APPRECIATION AND DEPRECIATION. At January 31, 1998, 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 $21,296,867 $1,015,367 $20,281,500
Multi-Asset Allocation Fund 2,476,511 330,419 2,146,092
NOTE 5 --TRANSACTIONS WITH AFFILIATES. Certain of the Fund's officers and
directors are also officers and directors of IFG 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 under this
plan are based on an annual rate equal to 40% of the retainer fee at the time of
retirement.
Pension expenses for the six months ended January 31, 1998, 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:
<PAGE>
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- --------------------------------------------------------------------------------
Balanced Fund $1,538 $3,239 $6,914
Multi-Asset Allocation Fund 141 238 807
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. At January
31, 1998, 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 Period
Ended Ended
January 31 Year Ended July 31 July 31
------------- -------------------------------------- --------
1998 1997 1996 1995 1994^
UNAUDITED
Balanced Fund
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 15.86 $ 13.36 $ 12.08 $ 10.30 $ 10.00
------------- -------------------------------------- --------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.17 0.34 0.37 0.29 0.12
Net Gains on Securities (Both
Realized and Unrealized) 0.41 3.37 2.12 2.03 0.30
------------- -------------------------------------- --------
Total from Investment Operations 0.58 3.71 2.49 2.32 0.42
------------- -------------------------------------- --------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.19 0.34 0.37 0.29 0.12
Distributions from Capital Gains 1.63 0.87 0.84 0.25 0.00
------------- -------------------------------------- --------
Total Distributions 1.82 1.21 1.21 0.54 0.12
------------- -------------------------------------- --------
Net Asset Value-- End of Period $ 14.62 $ 15.86 $ 13.36 $ 12.08 $ 10.30
============= ====================================== ========
<PAGE>
TOTAL RETURN 3.99%* 29.27% 20.93% 23.18% 4.16%*
RATIOS
Net Assets -- End of Period
($000 Omitted) $178,016 $161,921 $115,066 $37,224 $4,252
Ratio of Expenses to Average
Net Assets# 0.63%*@ 1.29%@ 1.29%@ 1.25% 1.25%~
Ratio of Net Investment Income to
Average Net Assets# 1.10%* 2.46% 3.03% 3.12% 2.87%~
Portfolio Turnover Rate 63%* 155% 259% 255% 61%*
Average Commission Rate Paid^^ $0.1694* $0.1304 -- -- --
</TABLE>
^ From December 1, 1993, commencement of investment 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 for the six
months ended January 31, 1998, the years ended July 31, 1997, 1996, 1995 and
the period ended July 31, 1994. If such expenses had been not voluntarily
absorbed, ratio of expenses to average net assets would have been 0.63% (not
annualized), 1.34%, 1.29%, 1.59% and 4.37% (annualized), respectively,
and ratio of net investment income to average net assets would have been
1.10% (not annualized), 2.41%, 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 purchase 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
------------- -------------------------------------- ---------
1998 1997 1996 1995 1994^
UNAUDITED
Multi-Asset Allocation Fund
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 13.75 $ 11.55 $ 10.84 $ 9.68 $ 10.00
------------- -------------------------------------- --------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.12 0.25 0.28 0.28 0.06
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.35 3.18 0.89 1.16 (0.32)
------------- -------------------------------------- --------
Total from Investment Operations 0.47 3.43 1.17 1.44 (0.26)
------------- -------------------------------------- --------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.13 0.25 0.28 0.28 0.06
Distributions from Capital Gains 1.54 0.98 0.18 0.00 0.00
------------- -------------------------------------- --------
Total Distributions 1.67 1.23 0.46 0.28 0.06
------------- -------------------------------------- --------
Net Asset Value-- End of Period $12.55 $13.75 $11.55 $10.84 $9.68
============= ====================================== ========
<PAGE>
TOTAL RETURN 3.72%* 31.41% 10.96% 15.11% (2.60%)*
RATIOS
Net Assets -- End of Period
($000 Omitted) $16,747 $17,117 $9,574 $7,778 $4,958
Ratio of Expenses to Average
Net Assets# 0.77%@ 1.55%@ 1.62%@ 1.50% 1.50%~
Ratio of Net Investment Income to
Average Net Assets# 0.86%* 2.19% 2.43% 2.99% 2.23%~
Portfolio Turnover Rate 47%* 98% 92% 79% 42%*
Average Commision Rate Paid^^ $0.0594* $0.0555 -- -- --
</TABLE>
^ From December 1, 1993, commencement of investment 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, 1998, the years ended July 31, 1997, 1996,
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 0.99% (not annualized), 1.97%, 2.24%, 2.47% and 5.14% (annualized),
respectively, and ratio of net investment income to average net assets
would have been 0.64% (not annualized), 1.77%, 1.81%, 2.02% and (1.41%)
(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 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>
EasiVest makes it easy to pay yourself first.
It seems that for most of us the hardest part of investing at regular
intervals comes down to simply writing the check, finding the stamp, and putting
it in the mail. But with INVESCO's EasiVest it's so easy that we'll do almost
all the work for you.
After you fill out the authorization and return it with a voided check, the
exact dollar amount you specify will be electronically transferred from your
bank account to your designated fund on the same day each month.
Using EasiVest is one of the few time when you'll find the easy way may also be
one of the best.
For years smart investors have used an investment strategy known as
dollar-cost averaging. It only makes sense that when prices are high an investor
will want to buy fewer shares, and when prices are low he will want to buy more.
By investing a fixed amount at regular intervals with INVESCO's EasiVest, you
can take advantage of these market fluctuations.
Over a sufficient period of time, dollar-cost averaging may make the average
price you pay per share less than the actual average price per share. So follow
the lead of successful investors and take advantage of dollar-cost averaging
with INVESCO's EasiVest.
Like other investment systems, periodic investment plans to not insure a
profit, nor do they protect against loss in a falling market. Since these plans
involve continuous investment in securities regardless of fluctuating price
levels in the market, you should consider your financial ability to continue
purchases through low price levels. Finally, be aware that you will incur a loss
under the plan if you decide to liquidate your account when the market value of
accumulated shares is less than their cost.
Just follow these simple authorization instructions and let INVESCO's
EasiVest help you build for your future.
1. Call your bank for their ABA and account numbers. Then complete the
EasiVest authorization and sign it the same way you would your
personal checks.
2. Enclose an unsigned, personal check or savings deposit slip marked "Void."
3. Place a voided check or savings deposit slip and signed
authorization form in an envelope; then mail it to us.
It's that easy to start building your mutual fund portfolio. And you can take
advantage of INVESCO's EasiVest with as little as $50 a month.
Questions? Call us at 1-800-525-8085.
Start building for your future today.
<PAGE>
EASIVEST AUTHORIZATION FOR AUTOMATIC INVESTMENTS
Before returning this Authorization, please be sure to contact your bank for
the correct ABA number and account number.
I authorize INVESCO Funds Group to transfer money from my checking or savings
account on or about the 7th or 21st (check one) day of each month for the
amounts and funds indicated below:
Fund--------------------------------- Acct.#------------------------------------
$------------- ($50 minimum) --- 7th ---21st
- --------------------------------------------------------------------------------
Bank Name
- --------------------------------------------------------------------------------
Bank Street Address
- --------------------------------------------------------------------------------
City, State, Zip ( )
- ------------------------------------ ----------------------------------------
ABA Number (available from your bank) Bank Phone Number
- ------------------------------------
Bank Account Number This is a ---Checking Account ---Savings Account
- --------------------------------------------------------------------------------
Owner's Name (First, Middle Initial, Last)
- --------------------------------------------------------------------------------
Joint Owner's Name (First, Middle Initial, Last)
- --------------------------------------------------------------------------------
Owner Street Address
- --------------------------------------------------------------------------------
City, State, Zip
- --------------------------------------------------------------------------------
Signature
Date
- --------------------------------------------------------------------------------
Signature
( ) ( ) Date
- --------------------------------------------------------------------------------
Daytime Telephone Number Evening Telephone Number
Don't forget to attach a voided check or deposit slip.
<PAGE>
This authority is to remain in effect until I revoke it in writing and, until
INVESCO receives such notification, I agree INVESCO will be fully protected in
honoring any such electronic debit. I further agree that if any such electronic
debit is not honored, whether with cause or without cause and whether
intentionally or unintentionally, INVESCO will not be liable whatsoever. This
authorization will become a part of the fund application subject to the terms,
representations and conditions thereof.
Like other investment systems, period investment plans do not insure a profit,
nor do they protect against loss in a falling market. Since these plans involve
continuous investment in securities regardless of fluctuating price levels in
the market, you should consider your financial ability to continue purchases
through low price levels. Finally, be aware that you will incur a loss under the
plan if you decide to liquidate your account when the market value of
accumulated shares is less than their cost.
<PAGE>
INVESCO FUNDS
INVESCO Distributors, Inc.,(SM)
Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
1-800-525-8085
PAL(R): 1-800-424-8085
http://www.invesco.com
In Denver, 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 a current prospectus.
