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.
(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.
<PAGE>
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 "How To Buy Shares" is amended to add the
following sentence at the end of the first paragraph:
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 Supplements dated January 31, 2000 and
April 1, 2000.
The date of this Supplement is June 1, 2000.
<PAGE>
INVESCO COMBINATION STOCK & BOND FUNDS, INC.
Supplement to Institutional Class 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 (2) substitute the following in its place:
ANNUAL FUND OPERATING EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS
BALANCED FUND - INSTITUTIONAL CLASS
Management Fee 0.60%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.47%
Total Annual Fund Operating Expenses(1) 1.07%
The footnote is not affected by these changes.
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 the Institutional Class
shares of the 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
Institutional Class shares' operating expenses remained the same. Although
the actual costs and performance of the Fund's Institutional Class shares
may be higher or lower, based on these assumptions your costs would have
been:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
$109 $340 $590 $1,306
The date of this Supplement is June 1, 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:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
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
</TABLE>
The date of this Supplement is June 1, 2000.
<PAGE>
INVESCO COMBINATION STOCK & BOND FUNDS, INC.
Supplement to Statement of Additional Information
dated December 31, 1999
The investment chart at the end of the section of the Statement of Additional
Information entitled "Investment Restrictions" is hereby amended to (1) delete
the chart in its entirety and (2) substitute the following in its place:
=======================================================================
INVESTMENT BALANCED EQUITY INCOME TOTAL RETURN
=======================================================================
DEBT Normally, at Normally, up Normally, a
SECURITIES least 25% to 35% minimum of 30%
(investment grade (investment
only) grade only)
-----------------------------------------------------------------------
EQUITY Normally, 50% to Normally, 65% in Normally, a
SECURITIES 70% common stock dividend-paying minimum of 30%;
common stock; Up the remainder
to 30% in non- will vary
dividend with market
paying stocks conditions
----------------------------------------------------------------------
FOREIGN Up to 25% Up to 25% (must Up to 25%
SECURITIES be dominated
(Percentages and pay interest
exclude ADRs in U.S. dollars)
and Canadian
issuers)
=======================================================================
The section of the Statement of Additional Information entitled "Management of
the Funds Administrative Services Agreement" is amended to (1) delete the third
paragraph and (2) substitute the following in its place:
As full compensation for services provided under the Administrative
Services Agreement, each Fund pays a monthly fee to INVESCO consisting of
a base fee of $10,000 per year plus an additional incremental fee computed
daily and paid monthly at an annual rate of 0.015% of the average net
assets of Total Return Fund and 0.045% of the average net assets of
Balanced Fund and Equity Income Fund. Prior to June 1, 2000, the rate was
0.015% for Equity Income Fund.
The section of the Statement of Additional Information entitled "Management of
the Funds Transfer Agency Agreement" is amended to (1) delete the first sentence
of the second paragraph and (2) substitute the following in its place:
The Transfer Agency Agreement provides that each Fund pays INVESCO an
annual fee of $22.50 per shareholder account, or, where applicable, per
participant in an omnibus account. Prior to June 1, 2000, this fee was
$20.00.
This Supplement supercedes the Supplement dated January 26, 2000.
The date of this Supplement is June 1, 2000.
