INVESCO COMBINATION STOCK & BOND FUNDS, INC.
Supplement to Investor Class Prospectus dated September 30, 1999
The existing class of shares of INVESCO Equity Income Fund, INVESCO Balanced
Fund and INVESCO Total Return Fund is hereby designated as "Investor Class."
The section of the Prospectus entitled "Fees And Expenses - Annual Fund
Operating Expenses That Are Deducted From Fund Assets" is amended to (1) delete
the table and the footnotes and (2) substitute the following, respectively, in
their place:
ANNUAL FUND OPERATING EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS
EQUITY INCOME FUND
Management Fee(1) 0.48%
Distribution and Service (12b-1) Fees(2) 0.25%
Other Expenses(1)(3)(4) 0.23%
-----
Total Annual Fund Operating Expenses(1)(3)(4) 0.96%
=====
BALANCED FUND
Management Fee 0.60%
Distribution and Service (12b-1) Fees(2) 0.25%
Other Expenses(3)(4)(5) 0.47%
-----
Total Annual Fund Operating Expenses(3)(4)(5) 1.32%
=====
TOTAL RETURN FUND
Management Fee(1) 0.56%
Distribution and Service (12b-1) Fees(2) 0.25%
Other Expenses(1)(3)(4) 0.21%
-----
Total Annual Fund Operating Expenses(1)(3)(4) 1.02%
=====
(1) Certain advisory fees of Equity Income and Total Return Funds were
voluntarily absorbed by INVESCO prior to May 13, 1999. After absorption,
Equity Income Fund's Other Expenses and Total Annual Fund Operating
Expenses changed insignificantly, and Total Return Fund's Other Expenses
and Total Annual Fund Operating Expenses were 0.20% and 1.01%,
respectively, of the Fund's average net assets.
(2) Because the Funds pay 12b-1 distribution fees which are based upon each
Fund's assets, if you own shares of a Fund for a long period of time, you
may pay more than the economic equivalent of the maximum front-end sales
charge permitted for mutual funds by the National Association of Securities
Dealers, Inc.
(3) Each Fund's actual Total Annual Fund Operating Expenses were lower than the
figures shown, because their distribution fees and/or custodian fees were
reduced under expense offset arrangements.
(4) The expense information presented in the table has been restated from the
financials to reflect a change in the transfer agency fees for all Funds
and the administrative services fees for Equity Income and Balanced Funds.
<PAGE>
(5) Certain expenses of Balanced Fund were voluntarily absorbed by INVESCO
pursuant to a commitment to the Fund. This commitment may be changed at any
time following consultation with the board of directors. After absorption,
Balanced Fund's Other Expenses and Total Annual Fund Operating Expenses
were 0.41% and 1.26%, respectively, of the Fund's average net assets.
The section of the Prospectus entitled "Fees And Expenses - Example" is amended
to (1) delete the second paragraph and (2) substitute the following in its
place:
The Example assumes that you invested $10,000 in a Fund for the time
periods indicated and redeemed all of your shares at the end of each
period. The Example also assumes that your investment had a hypothetical 5%
return each year and that a Fund's operating expenses remained the same.
Although the actual costs and performance of a Fund may be higher or lower,
based on these assumptions your costs would have been:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Equity Income Fund $ 98 $ 306 $ 531 $ 1,177
Balanced Fund $ 134 $ 418 $ 722 $ 1,587
Total Return Fund $ 104 $ 324 $ 562 $ 1,246
The section of the Prospectus entitled "Portfolio Managers" is amended to (1)
delete the first paragraph and (2) substitute the following in its place:
The following individuals are primarily responsible for the day-to-day
management of their respective Fund's or Funds' portfolio holdings.
FUND PORTFOLIO MANAGER(S)
Equity Income Charles P. Mayer
Donovan J. (Jerry) Paul
Balanced Charles P. Mayer
Donovan J. (Jerry) Paul
Peter M. Lovell
Total Return David S. Griffin
James O. Baker
Thomas L. Shields
The section of the Prospectus entitled "Portfolio Managers" is amended to (1)
delete the fifth and sixth paragraphs and (2) substitute the following in their
place:
DAVID S. GRIFFIN, a Chartered Financial Analyst, is the lead portfolio
manager of Total Return Fund. He has been a portfolio manager for INVESCO
Capital Management, Inc. since 1991. Dave holds an M.B.A. from the College
of William and Mary and a B.A. from Ohio Wesleyan University.
The section of the Prospectus entitled "Portfolio Managers" is amended to (1)
delete the eighth paragraph and (2) substitute the following in its place:
THOMAS L. SHIELDS, a Chartered Financial Analyst, is an assistant portfolio
manager of Total Return Fund. Before joining INVESCO in 1983, he was a
portfolio manager with Schroder Capital Management. Tom holds an M.B.A. and
a B.B.A. from Tulane University.
The section of the Prospectus entitled "How To Buy Shares" is amended to add the
following sentence at the end of the first paragraph:
<PAGE>
If you do not specify a fund or funds, your initial investment and any
subsequent purchases will automatically go into INVESCO Cash Reserves Fund
- Investor Class, a series of INVESCO Money Market Funds, Inc.
The section of the Prospectus entitled "Your Account Services" is amended to add
the following new subsection after the subsection entitled "Telephone
Transactions":
HOUSEHOLDING. To save money for the Funds, INVESCO will send only one copy
of a prospectus or financial report to each household address. This
process, known as "householding," is used for most required shareholder
mailings. It does not apply to account statements. You may, of course,
request an additional copy of a prospectus or financial report at any time
by calling or writing INVESCO. You may also request that householding be
eliminated from all of your required mailings.
This Supplement supercedes the Supplement dated June 1, 2000.
The date of this Supplement is July 20, 2000.
<PAGE>
INVESCO COMBINATION STOCK & BOND FUNDS, INC.
Supplement to Class C Prospectus dated December 31, 1999
The section of the Prospectus entitled "Fees And Expenses - Annual Fund
Operating Expenses That Are Deducted From Fund Assets" is amended to (1) delete
the table and the footnotes and (2) substitute the following, respectively, in
their place:
ANNUAL FUND OPERATING EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS
EQUITY INCOME FUND - CLASS C
Management Fee 0.48%
Distribution and Service (12b-1) Fees(1) 1.00%
Other Expenses 0.23%
-----
Total Annual Fund Operating Expenses 1.71%
=====
BALANCED FUND - CLASS C
Management Fee 0.60%
Distribution and Service (12b-1) Fees(1) 1.00%
Other Expenses(2) 0.47%
-----
Total Annual Fund Operating Expenses(2) 2.07%
=====
TOTAL RETURN FUND - CLASS C
Management Fee 0.56%
Distribution and Service (12b-1) Fees(1) 1.00%
Other Expenses 0.21%
-----
Total Annual Fund Operating Expenses 1.77%
=====
(1) Because the Funds' Class C shares pay 12b-1 distribution and service
fees which are based upon each Fund's assets, if you own shares of a
Fund for a long period of time, you may pay more than the economic
equivalent of the maximum front-end sales charge permitted for mutual
funds by the National Association of Securities Dealers, Inc.
(2) Based on estimated expenses for the current fiscal year, which may be
more or less than actual expenses. Actual expenses are not provided
because each Fund's Class C shares were not offered until February 15,
2000. Certain expenses of Balanced Fund will be absorbed by INVESCO in
order to ensure that expenses for that Fund's Class C shares will not
exceed 2.00% of the Fund's average net assets attributable to Class C
shares pursuant to a commitment between the Fund and INVESCO. This
commitment may be changed at any time following consultation with the
board of directors. After absorption, Balanced Fund - Class C shares'
Other Expenses and Total Annual Fund Operating Expenses are estimated
to be 0.41% and 2.01%, respectively, of the Fund's average net assets.
<PAGE>
The section of the Prospectus entitled "Fees And Expenses - Examples" is amended
to (1) delete the second paragraph and (2) substitute the following in its
place:
The Examples assume that you invested $10,000 in Class C shares of a Fund
for the time periods indicated. The first Example assumes that you redeem
all of your shares at the end of each period. The second Example assumes
you keep your shares. Both Examples also assume that your investment had a
hypothetical 5% return each year and that a Fund's Class C shares'
operating expenses remained the same. Although the actual costs and
performance of a Fund's Class C shares may be higher or lower, based on
these assumptions your costs would have been:
IF SHARES ARE REDEEMED 1 year 3 years 5 years 10 years
Equity Income Fund - Class C $ 274 $ 539 $ 928 $ 2,019
Balanced Fund - Class C $ 310 $ 649 $ 1,114 $ 2,400
Total Return Fund - Class C $ 280 $ 557 $ 959 $ 2,084
IF SHARES ARE NOT REDEEMED 1 year 3 years 5 years 10 years
Equity Income Fund - Class C $ 174 $ 539 $ 928 $ 2,019
Balanced Fund - Class C $ 210 $ 649 $ 1,114 $ 2,400
Total Return Fund - Class C $ 180 $ 557 $ 959 $ 2,084
The section of the Prospectus entitled "Portfolio Managers" is amended to (1)
delete the first paragraph and (2) substitute the following in its place:
The following individuals are primarily responsible for the day-to-day
management of their respective Fund's or Funds' portfolio holdings.
FUND PORTFOLIO MANAGER(S)
Equity Income Charles P. Mayer
Donovan J. (Jerry) Paul
Balanced Charles P. Mayer
Donovan J. (Jerry) Paul
Peter M. Lovell
Total Return David S. Griffin
James O. Baker
Thomas L. Shields
The section of the Prospectus entitled "Portfolio Managers" is amended to (1)
delete the fifth and sixth paragraphs and (2) substitute the following in their
place:
DAVID S. GRIFFIN, a Chartered Financial Analyst, is the lead portfolio
manager of Total Return Fund. He has been a portfolio manager for INVESCO
Capital Management, Inc. since 1991. Dave holds an M.B.A. from the College
of William and Mary and a B.A. from Ohio Wesleyan University.
The section of the Prospectus entitled "Portfolio Managers" is amended to (1)
delete the eighth paragraph and (2) substitute the following in its place:
THOMAS L. SHIELDS, a Chartered Financial Analyst, is an assistant portfolio
manager of Total Return Fund. Before joining INVESCO in 1983, he was a
portfolio manager with Schroder Capital Management. Tom holds an M.B.A. and
a B.B.A. from Tulane University.
This Supplement supercedes the Supplement dated June 1, 2000.
The date of this Supplement is July 20, 2000.
