ANNUAL REPORT
July 31, 1996
INVESCO
SPECIALTY
FUNDS,
INC.
Asian Growth Fund
European Small Company Fund
Latin American Growth Fund
Worldwide Capital Goods Fund
Worldwide Communications Fund
Smart choices for seeking higher returns around the globe.
INVESCO FUNDS
<PAGE>
Market Overview August 1996
1996 has proven to be another challenging year for international investors.
The MSCI-EAFE Index (which reflects stock performance in Europe, Australia and
the Far East) rose only 1.63% over the seven months ended 7/31/96. Over the same
period, the domestic S&P 500 advanced 5.25%. Markets around the globe
experienced ripple effects from the U.S. stock market correction in July: That
month, the MSCI-Far East Ex Japan Index lost 7.20%, the MSCI-Latin American
Index dropped 3.96%, and the MSCI-Europe was down 1.42%.(1,2)
United States
Over the first seven months of 1996, domestic securities markets have been
exceptionally attentive to figures: Gross Domestic Product, unemployment, and
earnings growth. Each announcement of fresh data has sent the S&P 500 and other
stock market indexes moving in a new direction.
Based on a moderate economic expansion, the S&P 500 advanced 9.60% for the
year-to-date as of 5/31/96. But, as expectations of economic vigor grew,
investors began to see the likelihood of accelerating inflation. This in turn
made action by the Federal Reserve Board appear more probable -- hikes in
short-term interest rates. In June, the broad market advanced a mere 0.40%; in
July, the index declined sharply.(1,2)
Since 1994 the Federal Reserve Board has actively manipulated short-term
rates, seeking to maintain economic expansion without sparking inflation.
Recently, there has been some indication that the Fed may allow a slightly
higher level of inflation before tightening credit availability; however, their
overall strategy is unlikely to alter in the near-term, given an impending
presidential election and the recent reappointment of Alan Greenspan as Fed
chairman.
However, according to the Bureau of Labor Statistics, less than 200,000 new
jobs were created in July 1996. While inflation is still considered a threat by
some analysts, the most recent unemployment figure was low enough to convince
the markets that the Fed will not launch a preemptive strike against inflation.
In addition, earnings reports from a variety of industries were convincingly
strong. Stocks and bonds subsequently rallied.
Latin America
As always, results from individual markets varied widely. For example, the
MSCI-Latin American Index advanced 12.84% over the seven months ended 7/31/96.
In local currency terms, the emerging Venezuelan market posted triple-digit
returns, and the Brazil index advanced over 40%. On the other hand, Chile had a
small loss and Argentina was generally flat. Despite negative economic growth in
the first quarter this year, Mexico's bolsa returned over 7%.
This strong regional market performance may be difficult to sustain over
the remainder of 1996; some analysts caution that investors had already
anticipated the rebound now underway in the region's economy, and additional
gains are likely to come only through selective stock picking.
<PAGE>
Europe
Governments throughout the region are straining to reduce budget deficits
according to European Common Market guidelines; unemployment is in the
double-digits for many countries. However, many analysts believe that European
economies have troughed, and moderate recovery is imminent. Under this scenario,
the outlook is good for smaller-capitalization firms.
Although the U.K. equity market finished slightly down, the Netherlands,
France, Germany, and Switzerland have all posted positive numbers for the seven
months ended 7/31/96. In particular, smaller company stocks have done well in
1996.
Asia
The Japanese economy expanded by 5.5% in the first quarter of 1996 -- good
news for a country experiencing an unusually high unemployment rate. The stock
market has responded with moderate enthusiasm; the Nikkei 225 Average advanced
6.6% (and outperformed the S&P 500) over the first seven months of this
year.(1,2)
Historically, Asian securities have tended to slow or decline during the
summer months. In addition, this year political problems have stymied certain
emerging markets outside of Japan. In July, riots in Indonesia sent the Jakarta
Composite tumbling by 10.2%. That same month, the Thai market declined 14.4% as
a result of tight monetary policy which has sharply slowed economic growth. And
when India's government raised tax rates to reduce the budget deficit, that
market fell 8.4%.(1,2)
On the other hand, the Hong Kong stock index lost only 3% during the
regional sell-off; despite that market's close ties to U.S. performance and the
imminent reunification of the area with the Chinese mainland, the Hang Seng
Index has performed relatively well for the year, rising 6.28%. Taiwanese
equities have done even better, with a total return of 17.35%.(1,2)
Investors should bear in mind that international investing entails special
risks, including currency fluctuations and differences in regulatory and
accounting rules.
INVESCO Specialty Funds, Inc.
The line graphs below illustrate the value of a $10,000 investment in each
of the INVESCO Specialty Funds, plus reinvested dividends and capital gain
distributions, from inception through 7/31/96. The charts and other total return
figures cited reflect the portfolios' operating expenses, but the indexes do not
have expenses, which would, of course, have lowered their performance.(2)
Asian Growth Fund
Asian Growth Fund Total Return
from 3/1/96 to 7/31/96(2)
Since inception (3/96) -10.31%
----------------------------------------------------------
For the period from the fund's inception (3/96) through 7/31/96, INVESCO
Asian Growth Fund had a total return of -10.31%, compared to a total return of
<PAGE>
- -6.69% for the MSCI-Far East Ex Japan Index. (Of course, past performance
is not a guarantee of future results.)(1,2)
The year started out strongly for many Asian securities markets. At the end
of the first quarter 1996, Hong Kong was up nearly 9%, Malaysia over 15%, and
Singapore had risen 5%.
Price weaknesses appeared in April. Technology and financial stocks led the
broad decline throughout the area's stock markets. The traditional summer
slowdown in Asian securities was magnified by tight monetary policies. Economic
growth across the region was strong during the first three months of 1996,
leading governments to fight incipient inflation by maintaining or raising
short-term interest rates. Over the longer-term, many analysts expect higher
earnings growth next year as a result of these policies.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Asian Growth Fund to the value of a $10,000
investment in the MSCI-Far East Excluding Japan Index, assuming in each
case reinvestment of all dividends and capital gain distributions, for
the period from inception (3/1/96) through 7/31/96.
U.S. Federal Reserve policy will also have a strong influence; if the Fed
remains neutral, interest rates may well come down in certain countries. In our
estimation, India and Malaysia represent the most oversold markets; accordingly,
we will be looking for inexpensive buying opportunities there in the coming
months. Thailand also holds potential as the government stabilizes and the
macro-economic picture brightens.
Presently, the fund is overweighted in finance and capital goods &
construction. These sectors stand to benefit from potential economic expansion
and decreasing short-term interest rates.
William Barron, director and portfolio manager for INVESCO Asia Limited,
leads a group of specialists in managing INVESCO Asian Growth Fund. Bill was
previously with Aetna Investment Management, Hong Kong, and Chase Manhattan
Trust. A Chartered Financial Analyst, he earned a BA from Harvard University.
European Small Company Fund
For the one-year period ended 7/31/96, Lipper Analytical Services ranked
European Small Company Fund #1 of 43 European region funds, based on total
return unadjusted for commissions.(2,3)
For the seven months ended 7/31/96, INVESCO European Small Company Fund
achieved a total return of 19.12%, compared to the James Capel Smaller European
Index, which had a total return of 8.40%. The fund outperformed the index 11
months out of the last 12. (Of course, past performance is not a guarantee of
future results.)(1,2) This outstanding performance partly resulted from
selective over- and underweighting of countries compared to the index. For
example, in recent months we have placed more emphasis on Denmark, France and
the Netherlands than the James Capel Index; simultaneously, we underweighted
Italy and Switzerland.
<PAGE>
European Small Company Fund
Average Annual Total Return
as of 7/31/96(2)
1 year 31.07%
------------------------------------------------------------
Since Inception (2/95) 32.21%
------------------------------------------------------------
July's precipitate drop in the smaller-cap market may be attributed to a
variety of short-term factors, particularly profit taking and the U.S. market
correction. Over the longer-term, the price decline in Europe has made
valuations more attractive and we regard the current situation as a buying
opportunity. Overall, earnings growth in smaller-cap companies continue to be in
line with or even exceed expectations. Low inflation continues to prevail
throughout most of the region, which may also support equity prices.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO European Small Company Fund to the value of a
$10,000 investment in the James Capel Smaller European Index, assuming
in each case reinvestment of all dividends and capital gain
distributions, for the period from inception (2/15/95) through 7/31/96.
While the fund is well-diversified geographically and across many
industries, the fund is focused on three key sectors which typically benefit
from low inflationary/moderate growth environments: consumer cyclicals, capital
goods & construction, and finance. Currently, we are favoring companies which
enjoy strong positions outside of Europe. These include consumer staples firms
like Fresenius AG, and basic materials firms including SAES Getters SpA.
Holdings also emphasize makers of luxury goods exhibiting product leadership,
like Bulgari SpA and Gucci Group NV.
Claire Griffiths and Andy Crossley of our London sister company, INVESCO
Asset Management Limited, lead a group responsible for management of INVESCO
European Small Company Fund. Claire graduated from St. John's College,
Cambridge, and began her investment career in 1989. Andy began his investment
career in 1988 after graduating from Loughborough University.
Latin American Growth Fund
For the one-year period ended 7/31/96, Lipper Analytical Services ranked
Latin American Growth Fund #9 of 22 Latin American funds, based on total return
unadjusted for commissions.(2,3)
For the seven months ended 7/31/96, INVESCO Latin American Growth Fund had
a total return of 18.57%, compared to a total return of 12.84% for the
MSCI-Latin Index. (Of course, past performance is not a guarantee of future
results.)(1,2) The fund's superior performance is the result of two factors:
geographic weighting and stock selection. Compared to the index, Latin American
Growth Fund has overweighted Brazil, which has produced excellent returns
year-to-date,
<PAGE>
and underweighted Mexico, which has provided positive but unexceptional results
over the same period.
Fund investments are spread across a broad range of industries. Currently,
we have underweighted transportation & services, while overweighting the
utilities sector.
Latin American Growth Fund
Average Annual Total Return
as of 7/31/96(2)
1 year 15.27%
----------------------------------------------------------
Since Inception (2/95) 22.13%
----------------------------------------------------------
Among our largest holdings, the Mexican firm of Grupo Carso SA de CV split
into three separate companies; this restructuring was well-received by the
market, increasing longer-term growth potential of this investment. And, while
our Brazilian telephone utilities underperformed in July, since the initial
purchases both of these holdings have appreciated strongly. (Of course, past
performance is not a guarantee of future results.)(1,2)
Peru is another country we have overweighted. Economic expansion is
continuing there, while corporate earnings are growing faster than forecasted.
Over the past six months, we have added two new utilities stocks to holdings
here, Tele 2000 SA and CPT Telefonica del Peru SA Sponsored ADR. Investments in
Colombia have fared less well. Political conflicts have hampered progress on
inflation and the trade deficit.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Latin American Growth Fund to the value of a
$10,000 investment in the MSCI-Latin American Index, assuming in each
case reinvestment of all dividends and capital gain distributions, for
the period from inception (2/15/95) through 7/31/96.
Peter Jarvis and Jane Lyon of our London sister company, INVESCO Asset
Management Limited, lead a group responsible for management of INVESCO Latin
American Growth Fund. Peter graduated from St. John's College, Oxford, and
joined INVESCO in 1993 specializing in Latin American securities. Jane began her
investment career in 1986 after graduating from Oxford University.
Worldwide Capital Goods Fund
For the one-year period ended 7/31/96, Lipper Analytical Services ranked
Worldwide Capital Goods Fund #138 of 144 global funds, based on total return
unadjusted for commissions.(2,3) While past performance is not a guarantee of
future results, for the seven months ended 7/31/96, INVESCO Worldwide Capital
Goods Fund had a total return of 1.05%, compared to a total return of 5.25% for
<PAGE>
the domestic S&P 500 and 1.63% for the international MSCI- EAFE. Keep in
mind that these indexes measure broad equity performance, while the fund invests
in a targeted market sector.(1,2)
Capital goods and basic materials stocks have underperformed globally in
1996, due to relatively anemic -- or worse -- economic conditions. Chemical
companies, however, were among the few exceptions to the group results. Earlier
this year, we took positions in Air Products & Chemicals and SAES Getters SpA
Sponsored ADR.
Paper & paper products traditionally lag during the summer months. Earnings
reports for the second quarter, however, exceeded most analysts' forecasts, and
these stocks outperformed the broad market in July. Our holdings include
Champion International, Georgia-Pacific Corp, and Mo och Domsjo AB.
The aerospace & defense industry outperformed during the first half of
1996. In our estimation, commercial aerospace companies are likely to enjoy
further upswings, and the fund is positioned to benefit from this scenario with
new or expanded holdings in Northrup Grumman, Sundstrand Corp, and Boeing Co.
Worldwide Capital Goods Fund
Average Annual Total Return
as of 7/31/96(2)
1 year 0.27%
----------------------------------------------------------
Since Inception (8/94) -0.61%
----------------------------------------------------------
Compared to other regions, certain countries in Latin America are enjoying
rapid economic expansion, and those stock markets have performed well over the
first half of 1996. We have opened numerous positions in Mexico over the past
six months, including Cemex SA de CV Sponsored ADR, Empresas ICA Sociedad
Controladora SA de CV Sponsored ADR, and DESC SA de CV.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Worldwide Capital Goods Fund to the value of a
$10,000 investment in the MSCI-EAFE Index and the S&P 500 Index,
assuming in each case reinvestment of all dividends and capital gain
distributions, for the period from inception (8/1/94) through 7/31/96.
INVESCO Worldwide Capital Goods Fund is managed by Albert M. Grossi. Before
joining INVESCO in 1995, he was associated with Westinghouse Pension Investments
Corp. Al earned an MBA and BA from Rutgers University.
<PAGE>
Worldwide Communications Fund
Worldwide Communications Fund
Average Annual Total Return
as of 7/31/96(2)
1 year 13.67%
----------------------------------------------------------
Since Inception (8/94) 19.12%
----------------------------------------------------------
For the one-year period ended 7/31/96, Lipper Analytical Services ranked
Worldwide Communications Fund #18 of 144 global funds, based on total return
unadjusted for commissions.(2,3)
While past performance is not a guarantee of future results, for the seven
months ended 7/31/96, INVESCO Worldwide Communications Fund had a total return
of 6.08%, compared to a total return of 5.25% for the domestic S&P 500 and 1.63%
for the international MSCI- EAFE. Keep in mind that these indexes measure broad
equity performance, while the fund invests in a targeted market sector.(1,2)
Worldwide Communications Fund's positive results were achieved in the face
of a challenging environment. On a global basis, telephone utilities and
communications stocks have not performed well in 1996. Selected areas, however,
have been fruitful, and we will continue to use valuation in the context of
anticipated growth as a key criteria in stock selection. We anticipate reducing
the fund's cash component significantly over the next few months.
Graph:
This line graph represents a comparison of the value of a $10,000
investment in INVESCO Worldwide Communications Fund to the value of a
$10,000 investment in the MSCI-EAFE Index and the S&P 500 Index,
assuming in each case reinvestment of all dividends and capital gain
distributions, for the period from inception (8/1/94) through 7/31/96.
Given the strong state of the U.S. stock market last year, as of 12/31/95
the fund was 83% invested in domestic equities and short-term positions. Since
that time, we have raised the level of foreign exposure, seeking higher returns
from other markets. Our largest non-U.S. concentrations are currently Canada and
the U.K. While the broad London stock exchange has languished for much of 1996,
many of the fund's British investments have appreciated strongly since their
initial purchase (though, of course, past results are not a guarantee of future
returns); these strong performers include HTV Group PLC, Scottish Television
PLC, and Yorkshire-Tyne Tees Television Holdings PLC.
Also in 1996, we have increased our exposure to telecommunications
equipment and software companies, as well as regional and foreign telephone
utilities. For example, new positions include BellSouth Corp, Ericsson (L M)
Telephone ADR, and Telefonica del Peru SA Sponsored ADR. We added to the fund's
holdings in SBC Communications, Southern New England Telecommunications, and
Century Telephone Enterprises.
Jeffrey G. Morris was named manager of Worldwide Communications Fund
earlier in 1996. Jeff joined INVESCO in 1991. He earned a BS from Colorado State
University and is a Chartered Financial Analyst.
<PAGE>
(1) The MSCI-EAFE, MSCI-Pacific Ex Japan, MSCI-Latin and James Capel Smaller
European Index are unmanaged indices of common stocks considered to be
representative respectively of the equity markets of Europe/Australia/Far East;
Pacific Basin excluding Japan; Latin American; and European small-capitalization
companies. The Hang Seng Index, Jakarta Composite, and Nikkei 225 Average are
unmanaged indexes indicative of broad market performance, respectively, in Hong
Kong, Indonesia and Japan. The S&P 500 is an unmanaged index indicative of the
broad U.S. stock market.
(2) Total return assumes reinvestment of dividends and capital gain
distributions for the periods indicated. Past performance is not a guarantee of
future results. Investment return and principal value will fluctuate so that,
when redeemed, an investor's shares may be worth more or less than when
purchased.
(3) Lipper rankings are provided for one-, five-, and 10-year periods, except
for funds introduced more recently, and are based on total return unadjusted for
commissions.
INVESCO Fund Codes
These two-digit codes appear after your account number on Investment
Summaries and confirmations. You may also use them to request information about
specific funds on PAL(r), your Personal Account Line.
Money Market Funds
44 U.S. Government Money Fund
25 Cash Reserves
40 Tax-Free Money Fund
Tax-Exempt Funds
36 Tax-Free Intermediate Bond
35 Tax-Free Long-Term Bond
Income Funds
33 Short-Term Bond
32 U.S. Government Securities
47 Intermediate Government Bond
30 Select Income
31 High Yield
Multiple Asset Funds
71 Balanced
70 Multi-Asset Allocation
48 Total Return
Equity-Income Funds
15 Industrial Income
58 Utilities
Growth Funds
10 Growth
20 Dynamics
74 Small Company
60 Emerging Growth
46 Value Equity
Sector Funds
50 Energy
<PAGE>
59 Environmental Services
57 Financial Services
51 Gold
52 Health Sciences
53 Leisure
55 Technology
38 Worldwide Capital Goods
39 Worldwide Communications
International Funds
49 International Growth
56 European
37 European Small Company
34 Latin American Growth
54 Pacific Basin
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
<PAGE>
INVESCO Specialty Funds, Inc.
Ten Largest Common Stock Holdings
July 31, 1996
Description Value
- --------------------------------------------------------------------------------
ASIAN GROWTH Fund
Swire Pacific Ltd Class A Shrs $ 565,412
CITIC Pacific Ltd 507,378
HSBC Holdings PLC 396,054
Sun Hung Kai Properties Ltd 358,709
Development Bank Ltd Foreign Shrs 351,001
Technology Resources Industries Berhad 331,076
China Light & Power Ltd 326,898
Hutchison Whampoa Ltd 310,657
New World Infrastructure Ltd 304,139
New World Development Ltd 300,415
EUROPEAN SMALL COMPANY Fund
Gucci Group NV New York Registered Shrs $1,327,950
Getronics NV 1,154,537
Simint SpA 1,089,648
Altran Technologies SA 1,056,486
Barco NV 1,047,367
Wolford AG Bearer Shrs 1,046,998
Axxicon Group NV 1,034,967
Cegedim SA 1,018,667
Salomon SA 1,015,267
Dassault Systemes SA 1,006,943
LATIN AMERICAN GROWTH Fund
Telecomunicacoes Brasileiras SA
Sponsored ADR $1,740,000
Usinas Siderurgicas de Minas
Gerais SA Usiminas Sponsored ADR 960,168
Cemex SA de CV Series B Shrs 788,403
Enersis SA Sponsored ADR 762,500
Panamerican Beverages Non-Voting
Class A 646,875
Cia de Telecomunicaciones de Chile SA
Sponsored ADR 631,313
Grupo Financiero Banamex-Accival
SA de CV Series B Shrs 629,896
Grupo Televisa SA de CV Participation
Certificates 626,815
Yacimientos Petroliferos Fiscales SA
Sponsored ADR Representing Class D Shrs $ 609,000
Empresas la Moderna SA de CV
Sponsored ADR Representing Ord
Series A Participation Certificates 608,125
WORLDWIDE CAPITAL GOODS Fund
AlliedSignal Inc $ 293,750
Air Products & Chemicals 266,875
<PAGE>
General Electric 247,125
Crown Cork & Seal 222,500
Emerson Electric 210,938
Northrop Grumman 171,875
Whitman Corp 167,813
Telefonica del Peru SA Sponsored ADR
Representing Class B Shrs 164,063
HSBC Holdings PLC 159,699
Asia Satellite Telecommunications
Holdings Ltd Sponsored ADR 158,625
WORLDWIDE COMMUNICATIONS Fund
Yorkshire-Tyne Tees Television Holdings PLC $2,794,449
Vertex Communications 2,028,422
Scottish Television PLC 1,938,667
Century Telephone Enterprises 1,877,437
SBC Communications 1,661,750
U S WEST Communications Group 1,615,950
McLeod Inc 1,449,350
HTV Group PLC 1,416,961
ALLTEL Corp 1,314,000
Frontier Corp 1,237,500
Composition of holdings is subject to change.
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Investment Securities
July 31, 1996
Shares or
Industry Principal
Description Code Amount Value
- --------------------------------------------------------------------------------
ASIAN GROWTH Fund
COMMON STOCKS & WARRANTS 89.61%
HONG KONG 27.68%
Cheung Kong Holdings Ltd RE 37,000 $ 252,383
China Light & Power Ltd UT 79,000 326,898
CITIC Pacific Ltd DV 123,000 507,378
HKR International Ltd RE 200,000 223,708
Hang Seng Bank Ltd BK 27,000 267,965
HongKong Telecommunications Ltd TC 144,000 237,415
Hutchison Whampoa Ltd DV 52,000 310,657
Hysan Development Ltd RE 73,000 201,538
Jardine Matheson Holdings Ltd DV 16,800 101,640
New World Development Ltd RE 66,000 300,415
New World Infrastructure Ltd* EG 140,000 304,139
Sun Hung Kai Properties Ltd RE 38,000 358,709
Swire Pacific Ltd Class A Shrs DV 66,000 565,412
----------
3,958,257
----------
INDIA 3.93%
BSES Ltd Regulation S GDR*^ UT 5,000 87,500
Crompton Greaves Ltd Regulation
S GDR*^ EE 20,000 147,600
Gujarat Ambuja Cement Ltd GDR BC 10,000 95,000
Mahindra & Mahindra Ltd GDR* AM 11,000 121,000
Reliance Industries Ltd GDR CH 10,000 110,000
----------
561,100
----------
INDONESIA 5.04%
PT Bank Danamon Indonesia
Foreign Shrs BK 175,000 132,016
PT Bank Internasional Indonesia
Forreign Shrs BK 47,778 106,604
PT Indosat Foreign Shrs TC 85,000 261,906
PT Semen Gresik Foreign Shrs BC 63,000 142,577
PT Telekomunikasi Indonesia
Foreign Shrs TC 57,000 78,126
----------
721,229
----------
MALAYSIA 19.16%
Arab-Malaysian Berhad DV 54,000 195,832
Bandar Raya Developments Berhad RE 160,000 233,380
Edaran Otomobil National Berhad AM 14,000 135,203
Innovest Berhad* BC 40,000 133,841
<PAGE>
Malaysian Resources Berhad RE 112,000 280,505
Perusahaan Otomobil Nasional
Berhad-Proton AM 28,000 139,130
Public Bank Berhad Foreign Shrs BK 136,000 250,691
RJ Reynolds Berhad TO 48,000 139,451
Road Builder Holdings Berhad BC 48,000 200,040
Tanjong PLC RR 90,000 292,126
Technology Resources Industries
Berhad* TC 108,000 331,076
Time Engineering Berhad DV 102,000 208,455
Time Engineering Berhad
Warrants (Exp 2002)* DV 51,000 18,393
United Engineers Berhad Ltd EG 27,000 181,767
----------
2,739,890
---------
PHILIPPINES 5.07%
C&P Homes BC 125,000 94,210
Fortune Cement* BC 300,000 157,414
Philippine National Bank* BK 17,000 265,982
Pilipino Telephone* TC 70,000 92,159
William Gothong & Aboitiz* TR 500,000 114,483
----------
724,248
----------
SINGAPORE 8.57%
Development Bank Ltd Foreign Shrs BK 31,000 351,001
Fraser & Neave Ltd FD 16,000 160,781
Keppel Corp Ltd DV 14,000 106,008
Overseas Union Bank Ltd
Foreign Shrs BK 32,000 190,220
Straits Steamship Land Ltd DV 84,000 263,930
United Industrial Ltd DV 120,000 105,300
Wing Tai Holdings Ltd RE 24,000 48,064
----------
1,225,304
----------
SOUTH KOREA 2.48%
Cho Hung Bank Ltd BK 19,500 200,275
Daewoo Heavy Industries MY 13,500 101,456
Korea Electric Power UT 1,700 52,693
----------
354,424
----------
THAILAND 14.91%
Bank of Ayudhya PLC Foreign Shrs BK 27,500 119,778
Dhana Siam Finance & Securities
PLC Foreign Shrs IB 34,000 169,629
Electricity Generating PLC
Foreign Shrs UT 45,000 141,655
IFCT Finance & Securities PLC IB 60,000 112,255
Industrial Finance of Thailand
Warrants (Exp 1997)* FR 100,000 182,142
Krung Thai Bank PLC Foreign Shrs BK 70,000 271,629
<PAGE>
National Finance & Securities
Ltd Foreign Shrs IB 20,000 59,394
Nithipat Capital PLC FR 50,000 130,667
Siam City Cement PLC BC 15,000 136,606
Siam Commercial Bank Ltd
Foreign Shrs BK 22,000 277,014
Thai Airways International PLC TR 125,000 241,288
Thai Farmers Bank PLC Foreign
Shrs BK 15,000 147,297
Total Access Communications PLC TC 20,000 143,000
----------
2,132,354
UNITED KINGDOM 2.77%
HSBC Holdings PLC BK 24,800 396,054
----------
TOTAL COMMON STOCKS & WARRANTS
(Cost $14,460,600) 12,812,860
----------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 10.39%
UNITED STATES 10.39%
Repurchase Agreement with
State Street Bank & Trust Co
dated 7/31/1996 due 8/1/1996
at 4.750%, repurchased at
$1,485,196 (Collateralized by
US Treasury Notes due 3/31/1998
at 6.125% value $1,547,676)
(Cost $1,485,000) RA 1,485,000 1,485,000
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $15,945,600#) 14,297,860
===========
EUROPEAN SMALL COMPANY Fund
COMMON STOCKS & RIGHTS 93.50%
AUSTRALIA 0.45%
Cortecs International Ltd
London Shrs* MD 100,000 384,604
-----------
AUSTRIA 1.21%
Wolford AG Bearer Shrs TA 4,400 1,046,998
-----------
BELGIUM 1.21%
Barco NV* EL 6,440 1,047,367
-----------
DENMARK 4.66%
Coloplast A/S Registered B Shrs MQ 7,100 698,488
Falck Holding A/S SA 4,200 959,191
Martin Gruppen A/S* EL 10,850 676,660
NeuroSearch A/S* MT 24,800 932,348
Nordtank Energy Group A/S MA 11,900 752,596
-----------
4,019,283
-----------
<PAGE>
FINLAND 3.50%
KCI Konecranes International* MY 18,300 476,827
Martela OY Series A Shrs OE 21,400 481,348
OY Saunatec Ltd RR 33,576 299,098
Suunto OY RR 91,200 944,435
TT Tieto OY Series B Shrs CO 16,700 818,207
-----------
3,019,915
-----------
FRANCE 16.56%
ADA BS 8,800 572,263
Altran Technologies SA BS 3,200 1,056,486
Axime* FR 6,765 988,144
BIC SA DV 3,800 536,046
CIPE France SA SA 8,200 762,951
Cegedim SA HC 11,189 1,018,667
Christian Dalloz* SA 1,700 510,235
Dassault Systemes SA* CO 27,350 1,006,943
GFI Industries SA ME 7,730 866,158
Grand Optical Photoservice PH 5,300 662,805
Infonie SA* CO 4,444 329,007
Jet Multimedia SA Registered
Shrs CO 5,900 755,547
Manutan WH 8,800 756,972
Penauille Polyservices BS 5,100 718,410
Picogiga SA* SE 20,627 532,421
Radiall SA EE 3,900 427,637
Salomon SA RR 1,180 1,015,267
Skis Rossignol SA RR 2,480 938,864
Sodexho SA BS 1,820 841,591
-----------
14,296,414
-----------
GERMANY 4.38%
Adidas AG TA 12,000 936,991
CeWe Color Holding AG PH 2,840 906,301
Data Modul AG EL 21,900 988,831
PUMA AG* TA 28,500 948,194
-----------
3,780,317
-----------
IRELAND 0.71%
Adare Printing Group PLC PR 50,000 358,033
Anglo Irish Bank PLC BK 250,000 253,029
-----------
611,062
-----------
ITALY 7.32%
Bulgari SpA RT 42,000 635,628
Bulgari SpA Sponsored ADR^ RT 56,500 854,427
De Rigo SpA Sponsored ADR* MP 51,600 941,700
Gucci Group NV New York
Registered Shrs TA 23,400 1,327,950
SAES Getters SpA Non-Convertible
Savings Shrs CH 51,460 761,865
Safilo SpA MQ 34,000 711,430
<PAGE>
Simint SpA* TA 345,000 1,089,648
-----------
6,322,648
-----------
NETHERLANDS 10.02%
Aalberts Industries NV MP 7,020 632,777
Ahrend Groep NV OE 16,300 687,302
Axxicon Group NV MA 36,400 1,034,967
BE Semiconductor Industries NV
New York Registered Shrs* SE 64,200 842,625
Baan Co NV* CO 32,680 972,230
Getronics NV CO 51,860 1,154,537
Heidemij NV PC 81,000 862,432
IHC Caland NV TR 20,300 994,737
Oce-Van Der Grinten NV OE 5,200 530,067
Toolex Alpha NV* AV 41,300 939,432
-----------
8,651,106
-----------
NORWAY 3.99%
Alvern A/S* AD 23,500 239,860
Ark A/S A CO 23,350 417,993
Nera A/S A TC 29,600 980,734
Seatex Garex A/S* CI 91,600 474,664
Sensonor A/S* AM 68,403 569,283
Tomra Systems A/S MY 69,800 761,759
-----------
3,444,293
-----------
SWEDEN 4.29%
Assa Abloy AB Series B Shrs SA 51,327 807,819
Caran AB Series B Shrs CO 62,600 710,513
Frontec AB Series B Shrs CO 50,160 592,091
Meda AB Series A Shrs MD 36,629 659,642
Pricer AB Series B Shrs* BS 23,828 429,112
Scala International AB* CO 7,000 508,482
-----------
3,707,659
-----------
SWITZERLAND 0.93%
Societe Generale D'Affichage
Genusscheine AD 1,610 807,018
-----------
<PAGE>
UNITED KINGDOM 33.45%
ABI Leisure Group PLC RR 433,666 621,240
Acorn Computer Group PLC* CO 75,000 256,922
Airsprung Furniture Group PLC FM 128,403 473,849
American Port Services PLC BS 199,500 397,621
Anglian Group PLC BC 125,000 350,348
Antonov PLC* AM 86,500 74,079
Appleyard Group PLC AM 425,000 595,591
AromaScan PLC* CI 138,693 241,874
Ashbourne PLC HC 100,000 213,323
Avonside Group PLC BC 550,000 299,742
British-Borneo Petroleum
Syndicate PLC OG 43,000 357,541
Brunel Holdings PLC BC 500,000 237,458
Burford Holdings PLC RE 149,000 285,370
CRT Group PLC BS 125,000 291,956
Cairn Energy PLC* OG 92,500 486,827
Cairn Energy PLC Rights* OG 18,500 16,708
Cantab Pharmaceuticals PLC* BI 50,000 508,393
Chiroscience Group PLC* MD 102,857 589,384
Circle Communications PLC* BR 125,000 340,616
Countryside Properties PLC RE 521,000 454,300
Court Cavendish Group PLC HC 85,000 275,295
EFT Group PLC FR 150,000 263,928
Eurocamp PLC RR 191,245 500,283
Eurodis Electron PLC EL 150,000 429,760
European Telecom PLC* TC 175,000 381,489
Fenchurch PLC IN 200,000 292,735
FirstBus PLC TR 125,000 286,117
Frost Group PLC OG 300,000 429,760
GEI International PLC CN 200,000 429,760
Games Workshop Group PLC RR 50,000 312,977
Geest PLC WH 85,000 304,413
Greenway Holdings PLC PC 100,000 84,083
Hambro Countrywide PLC* RE 600,000 710,038
Helical Bar PLC RE 115,000 648,221
Hogg Robinson PLC BS 75,000 317,648
Innovative Technologies
Group PLC* CH 175,000 515,011
Inspirations PLC RR 135,000 250,148
Intelligent Environments
Group PLC* CO 300,000 331,662
IOC International PLC* EL 127,000 288,717
Jarvis PLC* BC 310,000 395,815
Knewood Appliances PLC HA 110,000 323,721
La Senza PLC* RT 150,000 326,991
Lionheart PLC HP 531,250 84,789
London Forfaiting PLC FR 75,000 302,467
Lowndes Lambert Group
Holdings PLC IN 111,000 224,690
<PAGE>
MAID PLC* CO 83,500 369,251
McCarthy & Stone PLC BC 400,000 548,099
Memory Corp PLC CO 240,000 201,800
Mentmore Abbey PLC* OE 4,650,000 597,344
Molins PLC MY 9,723 137,393
Moss Brothers Group PLC RT 10,000 180,624
NSM PLC MM 575,000 492,433
Norbain PLC EL 30,000 233,565
Norcor Holdings PLC PP 276,000 253,558
Northern Leisure PLC RR 255,000 500,296
PPL Therapeutics PLC* BI 60,000 371,835
Page (Michael) Group PLC BS 100,000 434,431
Persona Group PLC CO 150,000 621,283
Pet City Holdings PLC* RT 100,000 568,342
Prowting PLC BC 223,000 437,514
Psion PLC CO 100,000 608,826
Quality Software Products
Holdings PLC CO 7,490 25,658
Ramco Energy PLC OG 75,000 659,821
Richards PLC TA 337,500 310,058
Rutland Trust PLC FR 500,000 400,954
SIG PLC BC 100,000 341,005
Slimma PLC TA 170,000 164,118
Specialty Shops PLC RE 90,000 155,554
Takare PLC HC 200,000 398,618
Tottenham Hotspur PLC RR 122,500 818,295
TransTec PLC ME 200,000 348,790
Tullow Oil PLC* OG 202,000 276,790
Tullow Oil PLC New Ord N/P* OG 57,400 7,150
Verity Group PLC EL 1,440,000 257,856
VideoLogic Group PLC* CO 500,000 568,342
Vymura PLC HP 355,834 736,912
Wainhomes PLC BC 416,269 609,282
Westminster Health Care
Holdings PLC HC 98,530 440,318
-----------
28,879,775
UNITED STATES 0.82%
OXiGENE Inc* MD 35,300 708,206
-----------
TOTAL COMMON STOCKS & RIGHTS
(Cost $81,690,654 ) 80,726,665
-----------
<PAGE>
PREFERRED STOCKS 6.50%
GERMANY 6.50%
Berentzen Gruppe AG
Non-Voting Pfd FD 19,600 808,460
Biotest AG Non-Voting Pfd MD 2,960 1,035,036
Fielmann AG Non-Voting Pfd RT 21,220 886,088
Fresenius AG Non-Voting Pfd MP 6,400 1,210,212
Marschollek Lautenschlaeger
und Partners AG Non-Voting
Pfd FR 575 624,270
Sander (Jil) AG Non-Voting
Pfd TA 1,604 1,045,519
-----------
TOTAL PREFERRED STOCKS
(Cost $5,617,582 ) 5,609,585
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $87,308,236) (Cost
for Income Tax Purposes
$87,503,657) 86,336,250
===========
LATIN AMERICAN GROWTH Fund
COMMON STOCKS 69.60%
ARGENTINA 10.86%
Astra Cia Argentina de
Petroleo SA OG 205,078 312,139
Banco Frances del Rio de
la Plata SA Sponsored ADR BK 20,000 477,500
Central Costanera SA
Sponsored ADR
Representing Class B Shrs^ UT 8,000 256,346
Cresud SA Series B Shrs* AG 80,000 144,194
Disco SA Sponsored ADR* RT 20,000 365,000
Dragados y Construcciones
Argentina SA Series B Shrs BC 55,000 226,355
Siderar SAIC Series A Shrs* MM 150,000 369,498
Sociedad Comercial del
Plata SA* DV 140,000 371,501
Telefonica de Argentina SA
Sponsored ADR Representing
Ord Class B Shrs UT 15,000 350,625
Yacimientos Petroliferos
Fiscales SA Sponsored ADR
Representing Class D Shrs OG 29,000 609,000
-----------
3,482,158
-----------
<PAGE>
BRAZIL 13.97%
Cia Paranaense de Energia-
Copel UT 37,000,000 402,819
Cia Siderurgica Nacional MM 17,000,000 380,256
Light Participacoe* UT 800,000 26,914
Rhodia-Ster SA TA 449,500 186,858
Souza Cruz SA TO 30,000 240,513
Telecomunicacoes
Brasileiras SA TC 6,500,000 393,081
Telecomunicacoes
Brasileiras SA
Sponsored ADR TC 24,000 1,740,000
Usinas Siderurgicas de Minas
Gerais SA Usiminas
Sponsored ADR*^ MM 89,000 960,168
White Martins Produtos de
Carbono SA CH 120,000,000 150,840
-----------
4,481,449
-----------
CHILE 12.02%
Administradora de Fondos de
Pensiones Provida SA
Sponsored ADR FR 20,000 457,500
Chilgener SA Sponsored ADR UT 11,000 261,250
Cia Telecomunicaciones de
Chile SA Sponsored ADR UT 6,500 631,313
Empresa Nacional de Electri-
cidad Chile SA Sponsored
ADR TR 15,000 305,625
Enersis SA Sponsored ADR UT 25,000 762,500
Madeco SA Sponsored ADR BC 12,500 318,750
Maderas y Sinteticos SA
Sponsored ADR PP 24,000 408,000
Santa Isabel SA Sponsored ADR RT 7,000 189,000
Sociedad Quimica y Minera de
Chile SA Sponsored ADR
Representing Series B Shrs CH 9,500 521,313
-----------
3,855,251
-----------
COLOMBIA 1.48%
Carulla & Cia SA Sponsored
ADR Representing Class
B Shrs*^ RT 37,800 212,625
Cementos Diamante SA Spon-
sored ADR Representing
Class B Shrs*^ BC 25,000 264,063
-----------
476,688
<PAGE>
-----------
ECUADOR 0.57%
La Cemento Nacional
Sponsored GDR^ BC 1,000 183,000
-----------
LUXEMBOURG 0.41%
Quilmes Industrial Quinsa
SA Registered Shrs FD 14,000 131,250
-----------
MEXICO 23.71%
Alfa SA de CV Participation
Certificates Series A Shrs DV 120,718 487,862
Carso Global Telecom SA
Series A-1* DV 140,000 397,158
Cemex SA de CV Series B Shrs BC 221,000 788,403
Cifra SA de CV Series C Shrs* RT 400,000 540,249
Corporacion GEO SA de CV
Series B Shrs* BC 100,000 428,487
Empresas la Moderna SA de CV
Sponsored ADR Representing
Ord Series A Participation
Certificates TO 35,000 608,125
Gruma SA de CV Series B Shrs* FD 88,000 474,956
Grupo Carso SA de CV Series
A-1 Shrs* DV 140,000 554,730
Grupo Casa Autrey SA de CV
Sponsored ADR WH 17,500 350,000
Grupo Corvi SA UBL Shrs* WH 150,000 125,584
Grupo Financiero Banamex-
Accival SA de CV Series
B Shrs* BK 330,000 629,896
Series L Shrs* BK 6,000 10,694
Grupo Televisa SA de CV
Participation Certificates* BR 48,000 626,815
InverCorporacion SA Series
A-1* DV 140,000 22,853
Panamerican Beverages
Non-Voting Class A FD 15,000 646,875
Sanluis Corporacion SA de
CV Participation
Certificates DV 70,000 409,136
Telefonos de Mexico SA de CV
Ord Series L Shrs UT 325,000 503,982
-----------
7,605,805
-----------
<PAGE>
PERU 6.58%
CPT Telefonica del Peru SA
Series B Shrs TC 130,000 278,063
CPT Telefonica del Peru SA
Sponsored ADR Representing
Class B Shrs TC 13,000 284,375
Cementos Lima SA Sponsored
ADR BC 33,797 470,984
Cia de Minas Buenaventura SA
Series A Shrs MM 40,257 345,735
Series B Shrs* MM 10,064 89,693
Series T Shrs MM 12,000 99,656
Credicorp Ltd FR 15,275 303,591
Tele 2000 SA* TC 150,000 237,594
-----------
2,109,691
-----------
TOTAL COMMON STOCKS
(Cost $21,773,637) 22,325,292
------------
PREFERRED STOCKS 30.40%
BRAZIL 29.23%
Banco Bradesco SA
Non-Voting Pfd Shrs BK 111,446,500 882,433
Banco Itau SA Non-Voting
Pfd Shrs BK 1,500,000 593,859
Brasmotor SA Pfd Shrs HA 2,000,000 726,488
Centrais Eletricas Brasileiras
SA-Class B Non-Voting Pfd
Shrs~ UT 3,100,000 892,865
Centrais Eletricas de Santa
Catarina SA Series B Pfd
Shrs* UT 450,000 445,395
Cia Cervejaria Brahma
Non-Voting Pfd Shrs FD 905,513 554,776
Cia Cimento Portland Itau
Non-Voting Pfd Shrs BC 1,500,000 366,708
Cia Energetica de Minas
Gerais Pfd Shrs UT 31,999,000 886,788
Cia Energetica de Minas
Gerais Sponsored ADR
Representing
Non-Voting Pfd Shrs UT 7,898 218,880
Cia Vale Do Rio Doce
Sponsored ADR Representing
Pfd Shrs MM 27,000 515,767
<PAGE>
Dixie Toga SA Pfd Shrs PP 549,898 489,843
Globex Utilidades SA Pfd Shrs* UT 35,000 568,126
Itausa-Investimentos Itau SA
Non-Voting Pfd Shrs DV 750,000 579,013
Lojas Americanas SA
Non-Voting Pfd Shrs RT 25,500,000 444,185
Marcopolo SA Series B
Non-Voting Pfd Shrs* AM 2,200,000 428,963
Paranapanema SA Mineracao
Industria e Construcao
Pfd Shrs* MM 14,000,000 78,834
Perdigao SA Comercio e
Industria Non-Voting
Pfd Shrs* FD 160,000,000 264,320
Telecomunicacoes de Sao Paulo
SA Non-Voting Pfd Shrs TC 2,189,997 437,850
-----------
9,375,093
-----------
COLOMBIA 0.96%
Banco Industrial Colombiano
SA Sponsored ADR Represent-
ing Pfd Shrs BK 16,000 250,000
Gran Cedena de Almacenes
Colombianos SA Sponsored
ADR Representing Class B
Pfd Shrs^ RT 6,000 57,000
-----------
307,000
-----------
LUXEMBOURG 0.21%
Quilmes Industrial Quinsa
SA Sponsored ADR Repre-
senting Non-Voting
Pfd Shrs FD 7,000 67,375
-----------
TOTAL PREFERRED STOCKS
(Cost $9,125,035) 9,749,468
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $30,898,672) (Cost
for Income Tax Purposes
$30,901,748) 32,074,760
===========
<PAGE>
WORLDWIDE CAPITAL GOODS Fund
COMMON STOCKS 79.94%
ARGENTINA 1.83%
Cia Naviera Perez Companc SA
Series B Shrs DV 25,000 146,197
-----------
CANADA 1.15%
Alberta Energy Ltd OG 5,000 91,875
-----------
CHILE 1.60%
Madeco SA Sponsored ADR BC 5,000 127,500
-----------
HONG KONG 1.99%
Asia Satellite Telecommuni-
cations Holdings Ltd
Sponsored ADR* TC 5,400 158,625
-----------
ITALY 0.94%
SAES Getters SpA
Sponsored ADR* CH 5,000 75,000
-----------
MALAYSIA 1.30%
Road Builder Holdings Berhad BC 25,000 104,187
-----------
MEXICO 6.05%
Alfa SA de CV Participation
Certificates Series A Shrs DV 24,573 99,308
Cemex SA de CV Sponsored
ADR Series B Shrs BC 15,000 107,022
DESC SA de CV
Series A Shrs DV 20,000 94,781
Series C Shrs* DV 417 1,998
Empresas ICA Sociedad
Controladora SA de CV
Sponsored ADR* BC 7,500 100,312
Grupo Carso SA de CV
Series A-1 Shrs* DV 20,000 79,247
-----------
482,668
-----------
PERU 2.05%
Telefonica del Peru SA
Sponsored ADR Representing
Class B Shrs UT 7,500 164,063
-----------
<PAGE>
SWEDEN 1.29%
Mo och Domsjo AB Series
A Shrs* PP 4,000 102,907
-----------
UNITED KINGDOM 2.00%
HSBC Holdings PLC BK 10,000 159,699
-----------
UNITED STATES 59.74%
AGCO Corp MY 5,000 101,250
Air Products & Chemicals CH 5,000 266,875
Albany International
Class A PP 6,000 111,000
AlliedSignal Inc MA 5,000 293,750
Applied Graphics Tech-
nologies* CO 10,000 137,500
Boeing Co AE 1,500 132,750
Champion International PP 2,500 105,625
Chevron Corp OG 2,000 115,750
Coastal Corp OG 4,000 149,000
Crown Cork & Seal CN 5,000 222,500
Emerson Electric EE 2,500 210,938
ENSCO International* OG 3,000 81,000
Fluor Corp BC 2,000 120,500
General Electric DV 3,000 247,125
Georgia-Pacific Corp PP 2,000 149,500
Goodyear Tire & Rubber AM 3,500 154,875
Harris Corp EL 2,500 143,750
Ingersoll-Rand Co MY 3,500 149,188
Lockheed Martin AE 1,500 124,312
McDermott International OG 6,000 108,750
National Data CO 3,000 119,250
Northrop Grumman AE 2,500 171,875
Olin Corp CH 1,000 84,750
Parker & Parsley Petroleum OG 5,000 113,750
Parker-Hannifin Corp CI 3,500 122,062
Potlatch Corp PP 3,500 131,250
Sealed Air* CN 3,500 121,625
Standard Products AM 5,000 119,375
Sundstrand Corp AE 2,500 90,312
Texas Industries BC 2,000 134,000
USX-Marathon Group OG 7,500 153,750
Whitman Corp DV 7,500 167,813
Worthington Industries MM 6,000 114,000
-----------
4,769,750
-----------
TOTAL COMMON STOCKS
(Cost $6,358,741) 6,382,471
-----------
FIXED INCOME SECURITIES 1.20%
UNITED STATES 1.20%
Richey Electronics, Conv
Sub Notes, 7.000%,
3/1/2006^
(Cost $100,000) WH 100,000 96,000
-----------
<PAGE>
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS 18.86%
UNITED STATES 18.86%
Repurchase Agreement
with State Street Bank
& Trust Co dated 7/31/1996
due 8/1/1996 at 5.500%,
repurchased at $1,506,230
(Collateralized by US
Treasury Bonds due
2/15/2019 at 8.875%
value $1,586,749)
(Cost $1,506,000) RA 1,506,000 1,506,000
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $7,964,741)
(Cost for Income Tax
Purposes $7,967,755) 7,984,471
===========
WORLDWIDE COMMUNICATIONS Fund
COMMON STOCKS 76.43%
CANADA 3.70%
ATI Technologies* CO 90,000 703,969
BCE Inc TC 20,000 797,500
Hummingbird Communications
Ltd* CO 12,000 300,000
-----------
1,801,469
-----------
FRANCE 0.91%
Compagnie Generale des Eaux BS 4,300 442,243
-----------
HONG KONG 1.75%
Asia SatelliteTelecommuni-
cations Holdings Ltd
Sponsored ADR* TC 29,000 851,875
-----------
NETHERLANDS 0.23%
Madge Networks NV* CO 10,000 111,250
-----------
PERU 0.90%
Telefonica del Peru SA
Sponsored ADR Represent-
ing Class B Shrs UT 20,000 437,500
-----------
SWEDEN 1.09%
Ericsson (L M) Telephone
ADR Class B Shrs TC 26,000 528,125
-----------
<PAGE>
UNITED KINGDOM 23.06%
Bell Cablemedia PLC
Sponsored ADR* CA 28,000 357,000
British Telecommunications
PLC ADR UT 15,000 847,500
Cable & Wireless PLC
Sponsored ADR TC 40,000 755,000
Carlton Communications PLC EL 37,500 268,016
Comcast Cable Partners Ltd
Class A* CA 34,000 357,000
Granada Group PLC AV 68,000 851,298
HTV Group PLC BR 250,000 1,416,961
NYNEX CableComms Group
PLC/ NYNEX CableComms
Group ADR* TC 35,000 481,250
Scottish Television PLC BR 185,000 1,938,667
United News & Media PLC PR 56,309 545,362
Videotron Holdings PLC
Sponsored ADR* CA 34,000 607,750
Yorkshire-Tyne Tees
Television Holdings PLC BR 143,000 2,794,449
-----------
11,220,253
-----------
UNITED STATES 44.79%
ALLTEL Corp UT 48,000 1,314,000
Ameritech Corp UT 11,000 610,500
Belden Inc EE 27,000 742,500
BellSouth Corp UT 15,500 635,500
Century Telephone Enter-
prises UT 58,900 1,877,437
Frontier Corp TC 44,000 1,237,500
Gaylord Entertainment
Class A MO 26,250 675,938
IES Industries UT 30,000 885,000
IndeNet Inc* RR 91,500 271,641
InterDigital Communications* TC 43,000 295,625
Lincoln Telecommunications TC 30,000 487,500
MFS Communications* TC 28,000 882,000
McLeod Inc Class A* TC 57,400 1,449,350
NYNEX Corp UT 11,400 511,575
Octel Communications* TC 28,000 658,000
P-COM Inc* TC 17,000 408,000
SBC Communications UT 34,000 1,661,750
Silicon Graphics* CO 18,000 423,000
Southern New England
Telecommunications UT 18,000 690,750
TII Industries* EE 190,000 1,021,250
<PAGE>
Teleport Communications
Group Class A* TC 50,000 775,000
U S WEST Communications
Group UT 53,200 1,615,950
Veeco Instruments* EL 50,000 637,500
Vertex Communications* EE 109,000 2,028,422
-----------
21,795,688
-----------
TOTAL COMMON STOCKS
(Cost $36,973,129) 37,188,403
-----------
OPTIONS PURCHASED 0.74%
UNITED STATES 0.74%
S&P 500 Puts 9/21/1996
625* (Cost $246,225) SP 350> 358,750
-----------
SHORT-TERM INVESTMENTS -
REPURCHASE AGREEMENTS
22.83%
UNITED STATES 22.83%
Repurchase Agreement with
State Street Bank &
Trust Co dated 7/31/1996
due 8/1/1996 at 5.500%,
repurchased at $11,110,697
(Collateralized by US
Treasury Bonds due
2/15/2019 at 8.875% value
$11,703,859)(Cost
$11,109,000) RA 11,109,000 11,109,000
-----------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $48,328,354#) 48,656,153
===========
* Security is non-income producing.
# Also represents cost for income tax purposes.
~ Security is an affiliated company (see Notes 5).
> Number of contracts.
^ The following are restricted securities at July 31, 1996:
<PAGE>
Value as
Acquisition Acquisition % of
Description Date(s) Cost Net Assets
- -------------------------------------------------------------------------------
Asian Growth Fund
BSES Ltd Regulation S GDR 5/13/96 $ 88,750 0.61%
Crompton Greaves Ltd
Regulation S GDR 7/2/96 151,200 1.03
------------
1.64%
============
European Small Company
Bulgari SpA Sponsored 2/29/96-
ADR 6/7/96 $783,220 0.91%
============
Latin American Growth Fund
Carulla & Cia SA Sponsored
ADR Representing Class
12/19/95-B Shrs 1/24/96 $223,043 0.66%
Cementos Diamante SA
Sponsored ADR Represent-
ing Class 4/18/95-B Shrs 7/2/96 $480,125 0.82
Latin American Growth Fund
(Continued)
Central Costanera SA
Sponsored ADR Representing
Class 3/6/95-B Shrs 2/2/96 $266,813 0.80%
Gran Cedena de Almacenes
Colombianos SA Sponsored
ADR Representing Class-B
Pfd Shrs 4/18/95
7/11/95 128,500 0.18
La Cemento Nacional
Sponsored GDR 2/26/96 156,000 0.57
Usinas Siderurgicas de
Minas Gerais SA Usiminas 3/2/95
Sponsored ADR 6/28/96 948,800 2.99
-----------
6.02%
===========
Worldwide Capital Goods Fund
Richey Electronics Conv
Sub Notes 7.000%,
3/1/2006 2/21/96 100,000 1.24%
===========
<PAGE>
Summary of Investments by Industry
% of
Industry Investment
Industry Code Securities Value
- -------------------------------------------------------------------------------
Asian Growth Fund
Automobile Related AM 2.76% $ 395,333
Banking BK 20.82 2,976,526
Building & Construction Related BC 6.71 959,688
Chemicals CH 0.77 110,000
Diversified Companies DV 16.67 2,383,005
Electrical Equipment EE 1.03 147,600
Engineering EG 3.40 485,906
Finance Related FR 2.19 312,809
Food Products & Beverages FD 1.12 160,781
Investment Brokers IB 2.39 341,278
Machinery MY 0.71 101,456
Real Estate Related RE 13.28 1,898,702
Recreation Related RR 2.04 292,126
Repurchase Agreements RA 10.39 1,485,000
Telecommunications TC 8.00 1,143,682
Tobacco TO 0.97 139,451
Transportation TR 2.49 355,771
Utilities UT 4.26 608,746
---------------------------
100.00% $14,297,860
===========================
European Small Company Fund
Advertising AD 1.21% $ 1,046,878
Audio/Video Related AV 1.09 939,432
Automobile Related AM 1.44 1,238,953
Banking BK 0.29 253,029
Biotechnology BI 1.02 880,228
Broadcasting BR 0.39 340,616
Building & Construction Related BC 3.73 3,219,263
Business & Commercial Services BS 5.86 5,059,518
Chemicals CH 1.48 1,276,876
Computer Related CO 11.87 10,249,294
Containers CN 0.50 429,760
Control Instruments CI 0.83 716,538
<PAGE>
Diversified Companies DV 0.62 536,046
Electrical Equipment EE 0.50 427,637
Electronics EL 4.54 3,922,756
Finance Related FR 2.99 2,579,763
Food Products & Beverages FD 0.94 808,460
Furniture Manufacturing FM 0.55 473,849
Health Care Related HC 2.72 2,346,221
Home Improvement Products HP 0.95 821,701
Household Appliances HA 0.37 323,721
Insurance IN 0.60 517,425
Machinery MY 1.59 1,375,979
Manufacturing MA 2.07 1,787,563
Medical Equipment & Supplies MQ 1.63 1,409,918
Medical Products MP 3.23 2,784,689
Medical Related-- Drugs MD 3.91 3,376,872
Medical Technology MT 1.08 932,348
Metal Products ME 1.41 1,214,948
Metals & Mining MM 0.57 492,433
Office Equipment & Supplies OE 2.66 2,296,061
Oil & Gas Related OG 2.59 2,234,597
Paper & Paper Products PP 0.29 253,558
Photo Equipment & Supplies PH 1.82 1,569,106
Pollution Control PC 1.10 946,515
Printing & Publishing PR 0.41 358,033
Real Estate Related RE 2.61 2,253,483
Recreation Related RR 7.18 6,200,903
Retail RT 4.00 3,452,100
Safety Equipment & Services SA 3.52 3,040,196
Semiconductor Equipment SE 1.59 1,375,046
Telecommunications TC 1.58 1,362,223
Textiles & Apparel Manufacturers TA 7.96 6,869,476
Transportation TR 1.48 1,280,854
Wholesale WH 1.23 1,061,385
----------------------------
100.00% $86,336,250
============================
Latin American Growth Fund
Agricultural AG 0.45 $ 144,194
Automobile Related AM 1.34 428,963
Banking BK 8.87 2,844,382
Broadcasting BR 1.96 626,815
Building & Construction Related BC 9.50 3,046,750
Chemicals CH 2.10 672,153
Diversified Companies DV 8.80 2,822,253
Finance Related FR 2.37 761,091
Food Products & Beverages FD 6.67 2,139,552
Household Appliances HA 2.26 726,488
Metals & Mining MM 8.85 2,839,607
Oil & Gas Related OG 2.87 921,139
Paper & Paper Products PP 2.80 897,843
Retail RT 5.64 1,808,059
Telecommunications TC 10.51 3,370,963
Textiles & Apparel Manufacturers TA 0.58 186,858
<PAGE>
Tobacco TO 2.65 848,638
Transportation TR 0.95 305,625
Utilities UT 19.35 6,207,803
Wholesale WH 1.48 475,584
----------------------------
100.00% $32,074,760
============================
Worldwide Capital Goods Fund
Aerospace & Defense AE 6.50 $ 519,249
Automobile Related AM 3.43 274,250
Banking BK 2.00 159,699
Building & Construction Related BC 8.69 693,521
Chemicals CH 5.34 426,625
Computer Related CO 3.22 256,750
Containers CN 4.31 344,125
Control Instruments CI 1.53 122,062
Diversified Companies DV 10.48 836,469
Electrical Equipment EE 2.64 210,938
Electronics EL 1.80 143,750
Machinery MY 3.14 250,438
Manufacturing MA 3.68 293,750
Metals & Mining MM 1.43 114,000
Oil & Gas Related OG 10.19 813,875
Paper & Paper Products PP 7.52 600,282
Repurchase Agreements RA 18.86 1,506,000
Telecommunications TC 1.99 158,625
Utilities UT 2.05 164,063
Wholesale WH 1.20 96,000
---------------------------
100.00% $ 7,984,471
===========================
Worldwide Communications Fund
Audio/Video Related AV 1.75 $ 851,298
Broadcasting BR 12.64 6,150,077
Business & Commercial Services BS 0.91 442,243
Cable Television CA 2.72 1,321,750
Computer Related CO 3.16 1,538,219
Electrical Equipment EE 7.79 3,792,172
Electronics EL 1.86 905,516
Motion Pictures & Television MO 1.39 675,938
Printing & Publishing PR 1.12 545,362
Recreation Related RR 0.56 271,641
Repurchase Agreements RA 22.83 11,109,000
S&P 100 Index Options SP 0.74 358,750
Telecommunications TC 19.74 9,606,725
Utilities UT 22.79 11,087,462
---------------------------
100.00% $48,656,153
===========================
<PAGE>
Summary of Currency
Foreign US Market
Description Currency Value
- -------------------------------------------------------------------------------
European Small Company Fund
French Francs 25,647,580 5,131,876
United Kingdom Pounds Sterling 64,402 100,280
------------
$ 5,232,156
============
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Assets and Liabilities
July 31, 1996
Asian European Latin American
Growth Small Company Growth
Fund Fund Fund
-----------------------------------------------
ASSETS
Investment Securities:
At Cost~ $ 15,945,600 $ 87,308,236 $ 30,898,672
==============================================
At Value~ $ 14,297,860 $ 86,336,250 $ 32,074,760
Cash 66,444 658,872 0
Foreign Currency
(Cost $0, $5,071,899 and
$0, respectively) 0 5,232,156 0
Receivables:
Investment Securities Sold 133,770 9,917,477 0
Fund Shares Sold 41,820 1,844,333 167,759
Dividends and Interest 8,406 253,953 110,479
Prepaid Expenses and Other Assets 12,026 41,226 15,429
----------------------------------------------
TOTAL ASSETS $ 14,560,326 $104,284,267 $ 32,368,427
----------------------------------------------
LIABILITIES
Payables:
Custodian 0 0 109,362
Foreign Sub Custodian
(Cost $0, $4,548,015 and
$0, respectively) 0 4,599,454 0
Distributions to Shareholders 242 3,200 1,789
Investment Securities Pur-
chased 209,985 5,232,156 100,320
Fund Shares Repurchased 15,401 117,181 56,849
Depreciation on Forward Foreign
Currency Contracts 208 10,957 0
Accrued Distribution Expenses 3,241 26,038 7,098
Accrued Expenses and Other
Payables 16,545 34,274 29,109
----------------------------------------------
TOTAL LIABILITIES 245,622 10,023,260 304,527
----------------------------------------------
Net Assets at Value $ 14,314,704 $ 94,261,007 $ 32,063,900
==============================================
NET ASSETS
Paid-in Capital* $ 15,998,958 $ 91,542,268 $ 30,529,761
Accumulated Undistributed
Net Investment Income 2,591 4,726 28,380
Accumulated Undistributed Net
Realized Gain (Loss) on
Investment Securities and
Foreign Currency
Transactions (39,075) 3,682,662 330,273
<PAGE>
Net Appreciation (Depreciation)
of Investment Securities and
Foreign Currency Transactions (1,647,770) (968,649) 1,175,486
----------------------------------------------
Net Assets at Value $ 14,314,704 $ 94,261,007 $ 32,063,900
==============================================
Shares Outstanding 1,599,695 6,248,937 2,493,265
Net Asset Value, Offering
and Redemption
Price per Share $ 8.95 $ 15.08 $ 12.86
==============================================
~ Investment securities at cost and value at July 31, 1996 include a
repurchase agreement of $1,485,000 for Asian Growth Fund.
* The Fund has 500 million authorized shares of common stock, par value of
$0.01 per share. Of such shares, 100 million have been allocated to each
individual Fund.
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Assets and Liabilities (Continued)
July 31, 1996
Worldwide Worldwide
Capital Goods Communications
Fund Fund
------------------------------------
ASSETS
Investment Securities:
At Cost~ $ 7,964,741 $ 48,328,354
===================================
At Value~ $ 7,984,471 $ 48,656,153
Receivables:
Investment Securities Sold 266,870 0
Fund Shares Sold 4,375 1,859,683
Dividends and Interest 10,116 116,783
Prepaid Expenses and Other Assets 10,602 26,776
-----------------------------------
TOTAL ASSETS 8,276,434 50,659,395
-----------------------------------
LIABILITIES
Payables:
Custodian 229,431 49,273
Foreign Sub-Custodian
(Cost $83,775 and $0,
respectively) 83,892 0
Distributions to Shareholders 0 8,854
Investment Securities Purchased 193,948 0
Fund Shares Repurchased 12,258 44,991
Accrued Distribution Expenses 1,746 11,017
Accrued Expenses and
Other Payables 24,194 28,874
----------------------------------
TOTAL LIABILITIES 545,469 143,009
----------------------------------
Net Assets at Value $ 7,730,965 $ 50,516,386
==================================
NET ASSETS
Paid-in Capital* $ 7,529,203 $ 46,645,459
Accumulated Undistributed
Net Investment Income 4,840 3,625
Accumulated Undistributed
Net Realized Gain on
Investment Securities
and Foreign Currency
Transactions 177,193 3,539,034
Net Appreciation of Investment
Securities and Foreign
Currency Transactions 19,729 328,268
----------------------------------
<PAGE>
Net Assets at Value $ 7,730,965 $ 50,516,386
==================================
Shares Outstanding 804,518 4,064,157
Net Asset Value, Offering and
Redemption Price per Share $ 9.61 $ 12.43
==================================
~ Investment securities at cost and value at July 31, 1996 include repurchase
agreements of $1,506,000 and $11,109,000 for Worldwide Capital Goods and
Worldwide Communications 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 Specialty Funds, Inc.
Statement of Operations
Period Ended July 31, 1996 (Note 1)
Asian European Latin American
Growth Small Company Growth
Fund Fund Fund
------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 63,165 $ 892,453 $ 573,422
Interest 49,161 243,976 51,916
Foreign Taxes Withheld (8,236) (118,096) (58,472)
------------------------------------------------
TOTAL INCOME 104,090 1,018,333 566,866
------------------------------------------------
EXPENSES
Investment Advisory Fees 26,564 271,008 130,913
Distribution Expenses 8,854 90,336 43,638
Transfer Agent Fees 16,399 66,181 47,581
Administrative Fees 3,031 15,420 12,618
Custodian Fees and Expenses 19,099 84,053 63,896
Directors' Fees and Expenses 719 3,276 2,971
Registration Fees and Expenses 396 38,091 39,764
Reports to Shareholders 70 5,150 7,644
Other Expenses 434 15,055 7,901
------------------------------------------------
TOTAL EXPENSES 99,044 605,693 373,729
Fees and Expenses Absorbed
by Investment Adviser (21,339) 0 0
Fees and Expenses Paid
Indirectly (6,854) (30,860) (26,546)
------------------------------------------------
NET EXPENSES 70,851 574,833 347,183
------------------------------------------------
NET INVESTMENT INCOME 33,239 443,500 219,683
------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT
SECURITIES
Net Realized Gain (Loss) on
Investment Securities
and Foreign Currency
Transactions (39,425) 3,681,763 481,310
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions 1,647,770) (1,229,632) 1,170,499
------------------------------------------------
NET GAIN (LOSS) ON
INVESTMENT SECURITIES (1,687,195) 2,452,131 1,651,809
------------------------------------------------
<PAGE>
Net Increase (Decrease)
in Net Assets from
Operations $(1,653,956) $2,895,631 $1,871,492
================================================
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Operations (Continued)
Year Ended July 31, 1996
Worldwide Worldwide
Capital Goods Communications
Fund Fund
---------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 120,311 $ 527,072
Interest 47,603 841,139
Foreign Taxes Withheld (2,334) (29,344)
---------------------------------------------
TOTAL INCOME 165,580 1,338,867
---------------------------------------------
EXPENSES
Investment Advisory Fees 52,495 255,873
Distribution Expenses 20,191 98,441
Transfer Agent Fees 35,801 151,435
Administrative Fees 11,211 15,905
Custodian Fees and Expenses 17,816 22,565
Directors' Fees and Expenses 7,011 9,524
Professional Fees and Expenses 23,989 26,030
Registration Fees and Expenses 24,496 41,708
Reports to Shareholders 4,357 20,268
Other Expenses 3,234 9,346
---------------------------------------------
TOTAL EXPENSES 200,601 651,095
Fees and Expenses Absorbed
by Investment Adviser (30,697) 0
Fees and Expenses Paid
Indirectly (8,380) (11,904)
---------------------------------------------
NET EXPENSES 161,524 639,191
---------------------------------------------
NET INVESTMENT INCOME 4,056 699,676
---------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT
SECURITIES
Net Realized Gain on
Investment Securities and
Foreign Currency
Transactions 760,106 4,577,595
Change in Net Depreciation
of Investment Securities
and Foreign Currency
Transactions (798,684) (1,242,052)
---------------------------------------------
NET GAIN (LOSS) ON
INVESTMENT SECURITIES (38,578) 3,335,543
---------------------------------------------
<PAGE>
Net Increase (Decrease)
in Net Assets from
Operations $ (34,522) $4,035,219
=============================================
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Asian Growth European Small Company Latin American Growth
Fund Fund Fund
--------------------------------------------------------------------------------
Period Year Period Year Period
Ended Ended Ended Ended Ended
July 31 July 31 July 31 July 31 July 31
--------------------------------------------------------------------------------
1996 1996 1995 1996 1995
(Note 1) (Note 1) (Note 1)
OPERATIONS
<S> <C> <C> <C> <C> <C>
Net Investment Income $ 33,239 $ 443,500 $ 13,139 $ 219,683 $ 13,208
Net Realized Gain (Loss)
on Investment Securities and
Foreign Currency Transactions (39,425) 3,681,763 899 481,310 224,463
Change in Net Appreciation
(Depreciation) of Investment
Securities and Foreign
Currency Transactions (1,647,770) (1,229,632) 260,983 1,170,499 4,987
--------------- ---------------------------- ---------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS (1,653,956) 2,895,631 275,021 1,871,492 242,658
-------------- ---------------------------- ---------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income (30,298) (439,757) (12,156) (217,967) (12,019)
Net Realized Gain on
Investment Securities 0 0 0 (350,025) 0
-------------- ---------------------------- ---------------------------
TOTAL DISTRIBUTIONS (30,298) (439,757) (12,156) (567,992) (12,019)
-------------- ---------------------------- ---------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 18,102,250 241,646,456 5,385,187 38,393,207 10,038,576
Reinvestment of Distributions 30,018 436,279 12,101 562,352 11,970
-------------- ---------------------------- ---------------------------
18,132,268 242,082,735 5,397,288 38,955,559 10,050,546
Amounts Paid for Repurchases
of Shares (2,133,310) (154,078,587) (1,859,168) (15,617,725) (2,858,619)
-------------- ---------------------------- ---------------------------
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 15,998,958 88,004,148 3,538,120 23,337,834 7,191,927
-------------- ---------------------------- ---------------------------
Total Increase in Net Assets 14,314,704 90,460,022 3,800,985 24,641,334 7,422,566
NET ASSETS
Beginning of Period 0 3,800,985 0 7,422,566 0
-------------- ---------------------------- ---------------------------
End of Period $ 14,314,704 $ 94,261,007 $3,800,985 $32,063,900 $ 7,422,566
============== ============================ ===========================
Accumulated Undistributed
Net Investment
Income Included in
Net Assets
at End of Period 2,591 4,726 983 28,380 1,189
--------------------------------------------------------------------------------
<PAGE>
FUND SHARE TRANSACTIONS
Shares Sold 1,818,644 16,101,290 499,857 3,077,189 887,351
Shares Issued from Reinvestment
of Distributions 3,354 28,931 1,047 48,510 1,024
-------------- ---------------------------- ---------------------------
1,821,998 6,130,221 500,904 3,125,699 888,375
Shares Repurchased (222,303) (10,210,062) (172,126) (1,267,483) (253,326)
-------------- ---------------------------- ---------------------------
Net Increase in Fund Shares 1,599,695 5,920,159 328,778 1,858,216 635,049
============== ============================ ===========================
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Changes in Net Assets (Continued)
Worldwide Capital Goods Worldwide Communications
Fund Fund
Year Ended July 31 Year Ended July 31
------------------------- -------------------------
1996 1995 1996 1995
OPERATIONS
Net Investment Income $ 4,056 $ 12,494 $ 699,676 $ 221,727
Net Realized Gain (Loss) on Investment
Securities and Foreign
Currency Transactions 760,106 (390,413) 4,577,595 2,030,773
Change in Net Appreciation (Depreciation)
of Investment Securities
and Foreign Currency Transactions (798,684) 818,413 (1,242,052) 1,570,320
----------------------------- ----------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS (34,522) 440,494 4,035,219 3,822,820
----------------------------- ----------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 (11,710) (701,251) (216,527)
Net Realized Gain on Investment Securities (192,500) 0 (2,990,139) (79,195)
----------------------------- ----------------------------
TOTAL DISTRIBUTIONS (192,500) (11,710) (3,691,390) (295,722)
----------------------------- ----------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares 8,918,314 23,303,970 86,755,968 48,393,963
Reinvestment of Distributions 191,459 11,514 3,647,177 292,191
----------------------------- ----------------------------
9,109,773 23,315,484 90,403,145 48,686,154
Amounts Paid for Repurchases of Shares (11,515,410) (13,430,644) (67,484,918) (25,008,922)
----------------------------- ----------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (2,405,637) 9,884,840 22,918,227 23,677,232
----------------------------- ----------------------------
Total Increase (Decrease) in Net Assets (2,632,659) 10,313,624 23,262,056 27,204,330
<PAGE>
NET ASSETS
Initial Subscription (Note 1) 0 50,000 0 50,000
Beginning of Period 10,363,624 0 27,254,330 0
----------------------------- ----------------------------
End of Period $ 7,730,965 $ 10,363,624 $ 50,516,386 $ 27,254,330
============================= ============================
Accumulated Undistributed Net Investment
Income Included in Net Assets
at End of Period $ 4,840 $ 784 $ 3,625 $ 5,200
--------------------------------------------------------------
FUND SHARE TRANSACTIONS
Initial Subscription (Note 1) 0 5,000 0 5,000
Shares Sold 904,991 2,492,352 6,894,716 4,388,249
Shares Issued from Reinvestment of
Distributions 20,133 1,170 306,451 25,995
----------------------------- ---------------------------
925,124 2,498,522 7,201,167 4,419,244
Shares Repurchased (1,174,317) (1,444,811) (5,352,376) (2,203,878)
----------------------------- ---------------------------
Net Increase (Decrease) in Fund Shares (249,193) 1,053,711 1,848,791 2,215,366
============================= ===========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Notes to Financial Statements
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO
Specialty Funds, Inc. (the "Fund"), was incorporated in Maryland on April 12,
1994 and presently consists of five separate Funds: Asian Growth Fund, which
commenced investment operations on March 1, 1996, European Small Company Fund
and Latin American Growth Fund, both of which commenced investment operations on
February 15, 1995, and Worldwide Capital Goods Fund and Worldwide Communications
Fund, both of which commenced investment operations on August 1, 1994. The
investment objectives of the respective Funds are: to achieve capital
appreciation for the Asian Growth, European Small Company, Latin American
Growth, and Worldwide Capital Goods Funds; and to achieve a high total return on
investments through capital appreciation and current income for the Worldwide
Communications Fund. 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 income 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.
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.
Options are valued at the last sales price on the principal
exchange on which the options are traded. If there is no last sales
price reported, then the bid price will be used.
If market quotations or pricing service valuations are not readily
available, securities are valued at fair value as determined in good
faith by the Fund's board of directors. Restricted securities are
valued in accordance with procedures established by the Fund's board
of directors. Short-term securities are stated at amortized cost
(which approximates market value) if maturity is 60 days or less at
the time of purchase, or market value if maturity is greater than 60
days.
Assets and liabilities initially expressed in terms of foreign
currencies are translated into U.S. dollars at the prevailing market
rates as quoted by one or more banks or dealers on the date of
valuation. The cost of securities is translated into U.S. dollars at
the rates of exchange prevailing when such securities were acquired.
Income and expenses are translated into U.S. dollars at rates of
exchange prevailing when accrued.
<PAGE>
B. REPURCHASE AGREEMENTS - Repurchase agreements held by the Fund are
fully collateralized by U.S. Government securities and such collateral
is in the possession of the Fund's custodian. The collateral is
evaluated daily to ensure its market value exceeds the current market
value of the repurchase agreements including accrued interest.
C. OPTIONS - The Worldwide Communications Fund may hold options for
investment purposes with the intent to hedge the portfolio against
ongoing exposure to market value and interest rate fluctuations.
The use of such instruments may involve certain risks as a result of
unanticipated movements in the market. A lack of correlation between
the value of an instrument underlying an option and the asset being
hedged, or unexpected adverse price movements, could render the World-
wide Communications Fund's hedging strategy unsuccessful. In addition,
there can be no assurance that a liquid secondary market will exist
for any option purchased or sold. Realized gains or losses on pur-
chased option transactions are included in Net Realized Gain (Loss)
on Investment Securities and Foreign Currency Transactions in the
Statement of Operations.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for on the trade date and dividend income is
recorded on the ex dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the
dividend if such information is obtained subsequent to the ex dividend
date. Interest income, which may be comprised of stated coupon rate,
market discount and original issue discount is recorded on the accrual
basis. Discounts on debt securities purchased are amortized over the
life of the respective security as adjustments to interest income.
Cost is determined on the specific identification basis.
The Fund may have elements of risk due to concentrated investments
in specific industries or 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 invest-
ments includes fluctuations from currency exchange rates and fluc-
tuations 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 trans-
actions and not for investment purposes.
Restricted securities held by the Fund may not be sold except in
exempt transactions or in a public offering registered under the
Securities Act of 1933. The risk of investing in such securities is
generally greater than the risk of investing in the securities of
widely held, publicly traded companies. Lack of a secondary market and
resale restrictions may result in the inability of the Fund to sell a
security at a fair price and may substantially delay the sale of the
security which the Fund seeks to sell. In addition, these securities
may exhibit greater price volatility than securities for which
secondary markets exist.
E. FEDERAL AND STATE TAXES - The Fund has complied and continues to comply
with the provisions of the Internal Revenue Code applicable to
regulated investment companies and, accordingly, has made or intends
<PAGE>
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. Net capital loss carry-
overs utilized in 1996 by the Worldwide Capital Goods Fund amounted to
$16,088.
Asian Growth Fund incurred and elected to defer post-October 31 net
capital losses of $39,075 to the year ended July 31, 1997. To the
extent future capital gains are offset by capital loss carryovers and
deferred post-October 31 losses, such gains will not be distributed to
shareholders.
Dividends paid by the Fund from net investment income and
distributions of net realized short-term capital gains are, for federal
income tax purposes, taxable as ordinary income to shareholders. Of the
ordinary income distributions declared for the period ended July 31,
1996, 8.49% qualified for the dividends received deduction available
to the Fund's corporate shareholders for the Worldwide Communications
Fund.
Investment income received from foreign sources may be subject to
foreign withholding taxes. Dividend and interest income is shown gross
of foreign withholding taxes in the accompanying financial statements.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distribu-
tions 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 differ-
ences are primarily due to differing treatments for foreign currency
transactions, nontaxable dividends, net operating losses and expired
capital loss carryforwards. During the year ended July 31, 1996,
Asian Growth Fund reclassified $350 from accumulated undistributed
net investment income to accumulated undistributed net realized gain
on investment securities and foreign currency transactions. During
the year ended July 31,1996, Latin American Growth Fund reclassified
$25,475 from accumulated undistributed net realized gain on invest-
ment securities and foreign currency transactions to accumulated
undistributed net investment income. Net investment income, net
realized gains, paid-in capital and net assets were not affected.
G. FORWARD FOREIGN CURRENCY CONTRACTS - The Fund enters into short-term
forward foreign currency contracts in connection with planned pur-
chases 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 agree-
ment 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 Liabi-
lities.
H. EXPENSES - Each of the Funds bears expenses incurred specifically on
its behalf and, in addition, each Fund bears a portion of general
expenses, based on the relative net assets of each Fund.
Under an agreement between each Fund and the Fund's Custodian,
agreed upon Custodian Fees and Expenses are reduced by credits granted
by the Custodian from any temporarily uninvested cash. Similarly, Other
Expenses, which include Pricing Expenses, are reduced by credits
earned by 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 period ended July 31, 1996, Fees and Expenses Paid
Indirectly consisted of the following:
<PAGE>
Custodian Fees Other
Fund and Expenses Expenses
- ------------------------------------------------------------------------------
Asian Growth Fund $ 6,854 $0
European Small Company Fund 30,860 0
Latin American Growth Fund 26,546 0
Worldwide Capital Goods Fund 7,504 876
Worldwide Communications Fund 10,609 1,295
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. The fee is based on the annual
rate of each Fund's average net assets as follows:
AVERAGE NET ASSETS
----------------------------------------------------
$0 to $500 Million Over
$500 to $1 $1
Fund Million Billion Billion
- -------------------------------------------------------------------------------
Asian Growth Fund 0.75% 0.65% 0.55%
European Small Company Fund 0.75% 0.65% 0.55%
Latin American Growth Fund 0.75% 0.65% 0.55%
Worldwide Capital Goods Fund 0.65% 0.55% 0.45%
Worldwide Communications Fund 0.65% 0.55% 0.45%
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust
Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of the
Worldwide Capital Goods and Worldwide Communications Funds are made by ITC. A
separate Sub-Advisory Agreement between IFG and INVESCO Asia Limited ("INVESCO
Asia"), a wholly owned subsidiary of IFG, investment decisions of Asian Growth
Fund are made by INVESCO Asia. Prior to November 10, 1995, a separate Sub-
Advisory Agreement between IFG and INVESCO MIM International Limited ("MIL"), an
affiliate of IFG, provided investment decisions for European Small Company and
Latin American Growth Funds were made by MIL. Effective November 10, 1995,
INVESCO Asset Management Limited ("IAM"), an affiliate of IFG, serves as sub-
advisor for European Small Company and Latin American Growth Funds under terms
similar to the previous Sub-Advisory Agreement between IFG and MIL. 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 received a transfer agent fee at an annual rate of $14.00 per
shareholder account, or per participant in an omnibus account through April 30,
1996. 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. As of
May 1, 1996, the transfer agent fee became $20.00 per shareholder account or,
where applicable, per participant in an omnibus account, per year, computed in a
manner similar to the previous fee.
<PAGE>
A plan of distribution pursuant to Rule 12b-1 of the Act provides for
reimbursement of marketing and advertising expenditures to IFG (the
"Distributor") to a maximum of 0.25% of average annual net assets. Amounts
accrued by the Fund are available to reimburse the Distributor for actual
expenditures incurred within a rolling twenty-four-month period ending April 30,
1998 for Asian Growth Fund, ending March 31, 1997 for European Small Company and
Latin American Growth Funds and ending July 31, 1996 for Worldwide Capital Goods
and Worldwide Communications Funds, and for a rolling twelve-month period
thereafter. For the period ended, July 31, 1996, the Fund paid the Distributor
$5,613, $64,913, $38,021, $20,545 and $93,172, respectively, for reimbursement
of expenses incurred.
IFG and ITC have voluntarily agreed, in some instances, to absorb certain
fees and expenses incurred by Worldwide Capital Goods Fund. IFG and IAM have
voluntarily agreed, in some instances, to absorb certain fees and expenses
incurred by European Small Company and Latin American Growth Funds. IFG and
INVESCO Asia have voluntarily agreed, in some instances, to absorb certain fees
and expenses incurred by Asian Growth Fund.
Prior to June 1, 1996, a 2% redemption fee was retained by the Latin
American Growth Fund to offset transaction costs and other expenses associated
with short-term redemptions and exchanges. The fee was imposed on redemptions or
exchanges of shares held less than twelve months. A 1% redemption fee is
retained by the Asian Growth Fund and effective June 1, 1996 for the Latin
American Growth Fund to offset transaction costs and other expenses associated
with short-term redemptions and exchanges. The fee is imposed on redemptions or
exchanges of shares held less than three months. The redemption fee is accounted
for as an addition to Paid-in Capital. Total redemption fees received by the
Asian Growth and Latin American Growth Funds for the period ended July 31, 1996
were $10,648 and $61,808, respectively.
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the period ended July
31, 1996, the aggregate cost of purchases and proceeds from sales of investment
securities (excluding all U.S. Government securities and short-term securities)
were as follows:
Fund Purchases Sales
- -------------------------------------------------------------------------------
Asian Growth Fund $ 14,679,509 $ 179,484
European Small Company Fund 127,818,175 47,793,136
Latin American Growth Fund 28,379,801 4,936,714
Worldwide Capital Goods Fund 17,923,380 21,471,290
Worldwide Communications Fund 56,336,345 38,423,544
There were no purchases or sales of U.S. Government securities.
NOTE 4 - APPRECIATION AND DEPRECIATION. At July 31, 1996, the gross
appreciation of securities in which there was an excess of value over tax cost,
the gross depreciation of securities in which there was an excess of tax cost
over value and the resulting net appreciation (depreciation) by Fund were as
follows:
<PAGE>
<TABLE>
<CAPTION>
Net
Gross Gross Appreciation
Fund Appreciation Depreciation (Depreciation)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asian Growth Fund $ 113,185 $ 1,760,925 $(1,647,740)
European Small Company Fund 4,509,551 5,676,958 (1,167,407)
Latin American Growth Fund 2,761,184 1,588,172 1,173,012
Worldwide Capital Goods Fund 270,830 254,114 16,716
Worldwide Communications Fund 2,956,472 2,628,673 327,799
</TABLE>
NOTE 5 - TRANSACTIONS WITH AFFILIATES. Certain of the Fund's officers and
directors are also officers and directors of IFG, ITC, MIL, IAM, or INVESCO
Asia. At July 31, 1996, 7.17% of outstanding shares of the Worldwide Capital
Goods Fund were held by IFG, ITC or affiliated parties.
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 were based on an annual rate equal to 25% of the retainer fee at the time
of retirement. As of July 1, 1996, benefits are based on an annual rate of 40%
of the retainer fee at the time of retirement.
Pension expenses for the period ended July 31, 1996, included in Directors'
Fees and Expenses in the Statement of Operations and unfunded accrued pension
costs and pension liability included in Prepaid Expenses and Accrued Expenses,
respectively, in the Statement of Assets and Liabilities were as follows:
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- -------------------------------------------------------------------------------
Worldwide Capital Goods Fund $ 66 $ (64) $2
Worldwide Communications Fund 244 (236) 8
For the period ended July 31, 1996, there were no pension expenses,
unfunded accrued pension costs or pension liabilities for Asian Growth, European
Small Company and Latin American Growth Funds.
An affiliated company represents ownership by the Fund of at least 5% of
the voting securities of the issuer during the period, as defined in the Act. A
summary of the transactions during the year ended July 31, 1996, in which the
issuer was an affiliate of the Fund, is as follows:
<TABLE>
<CAPTION>
Realized
Purchases Sales Dividend Gain on Value at
Affiliate Shares Cost Shares Cost Income Investments 7/31/96
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Latin American
Growth Fund
Centrais Electricas
Brasileiras SA-
Class B Non-
Voting Pfd Shrs 3,100,000 854,574 - - 28,134 - 892,865
<PAGE>
NOTE 6 - LINE OF CREDIT. The Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 10% of the Net Assets at Value of each respective
Fund. Each Fund agrees to pay annual fees and interest on the unpaid principal
balance based on prevailing market rates as defined in the agreement. For the
period ended July 31, 1996, there were no such borrowings.
<PAGE>
Report of Independent Accountants
To the Board of Directors and Shareholders of
INVESCO Specialty Funds, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the statement of investment securities, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Asian Growth Fund,
European Small Company Fund, Latin American Growth Fund, Worldwide Capital Goods
Fund and Worldwide Communications Fund (constituting INVESCO Specialty Funds,
Inc., hereafter referred to as the "Fund") at July 31, 1996, the results of each
of their operations, the changes in each of their net assets and the financial
highlights for each of the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at July 31, 1996 by
correspondence with the custodian and the application of alternative auditing
procedures for unsettled security transactions, provide a reasonable basis for
the opinion expressed above.
Price Waterhouse LLP
/s/ Price Waterhouse LLP
- ------------------------
Denver, Colorado
August 30, 1996
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
</TABLE>
<TABLE>
<CAPTION>
Period Year Period Year Period
Ended Ended Ended Ended Ended
July 31 July 31 July 31 July 31 July 31
------------ ------------------------- -------------------------------
1996 1996 1995 1996 1995
(Note 1) (Note 1) (Note 1)
Asian Growth European Small Company Latin American Growth
Fund Fund Fund
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value -
Beginning of Period $ 10.00 $ 11.56 $10.00 $11.69 $10.00
------------ ------------------------- -------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02 0.07 0.04 0.08 0.02
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (1.05) 3.52 1.56 1.62 1.69
------------ ------------------------- -------------------------------
Total from Investment Operations (1.03) 3.59 1.60 1.70 1.71
------------ ------------------------- -------------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.02 0.07 0.04 0.09 0.02
Distributions from Capital Gains 0.00 0.00 0.00 0.44 0.00
------------ ------------------------- -------------------------------
Total Distributions 0.02 0.07 0.04 0.53 0.02
------------ ------------------------- -------------------------------
Net Asset Value - End of Period 8.95 15.08 11.56 12.86 11.69
============ ========================= ===============================
TOTAL RETURN+ (10.31%)* 31.07% 15.98%* 15.27% 17.09%*
RATIOS
Net Assets - End of Period
($000 Omitted) 14,315 94,261 3,801 32,064 7,423
Ratio of Expenses to Average
Net Assets# 2.19%@~ 1.68%@ 2.00%~ 2.14%@ 2.00%~
Ratio of Net Investment Income to
Average Net Assets# 0.94%~ 1.23% 2.37%~ 1.26% 0.79%~
Portfolio Turnover Rate 2%* 141% 0%* 29% 30%*
Average Commission Rate Paid^^ 0.0198* 0.0125 - .0001 -
</TABLE>
+ Total return for the Asian Growth and Latin American Growth Funds does not
reflect the effect of the applicable redemption fees.
* Based on operations for the period shown and, accordingly, are not repre-
sentative of a full year.
<PAGE>
# Various expenses of the Asian Growth Fund were voluntarily absorbed by IFG
and INVESCO Asia for the period ended July 31, 1996. Various expenses of
the European Small Company and Latin American Growth Funds were voluntar-
ily absorbed by IFG, MIL and IAM for the period ended July 31, 1995. If
such expenses had not been voluntarily absorbed, ratio of expenses to
average net assets would have been 2.79% (annualized) for Asian Growth,
10.17% (annualized) for European Small Company and 4.49%(annualized) for
Latin American Growth, respectively, and ratio of net investment income to
average net assets would have been 0.34% (annualized) for Asian Growth,
(5.80%) (annualized) for European Small Company and (1.70%) (annualized)
for Latin American Growth, respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Advisor, if applicable, which is before any expense offset
arrangements.
~ Annualized
^ The average commission rate paid is the total brokerage commissions paid
on applicable purchases and sales of securities for the period divided by
the total number of related shares purchased or sold which was a new
disclosure requirement effective September 1, 1995.
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Year Ended July 31 Year Ended July 31
---------------------------- -----------------------------
1996 1995 1996 1995
Worldwide Capital Goods Fund Worldwide Communications Fund
PER SHARE DATA
<S> <C> <C> <C> <C>
Asset Value - Beginning of Period $ 9.84 $ 10.00 $ 12.30 $ 10.00
---------------------------- -----------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.01 0.01 0.22 0.11
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.01 (0.16) 1.38 2.35
---------------------------- -----------------------------
Total from Investment Operations 0.02 (0.15) 1.60 2.46
---------------------------- -----------------------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.00 0.01 0.22 0.11
Distributions from Capital Gains 0.25 0.00 1.25 0.05
---------------------------- -----------------------------
Total Distributions 0.25 0.01 1.47 0.16
---------------------------- -----------------------------
Net Asset Value - End of Period 9.61 9.84 12.43 12.30
============================ =============================
TOTAL RETURN 0.27% 1.49%) 13.67% 24.83%
RATIOS
Net Assets -End of Period ($000 Omitted) 7,731 10,364 50,516 27,254
Ratio of Expenses to Average Net Assets# 2.11%@ 2.00% 1.66%@ 1.95%
Ratio of Net Investment Income to
Average Net Assets# 0.05% 0.25% 1.78% 1.43%
Portfolio Turnover Rate 247% 193% 157% 215%
Average Commission Rate Paid^ 0.0907 - 0.1285 -
</TABLE>
<PAGE>
# Various expenses of the Worldwide Capital Goods Fund were voluntarily
absorbed by IFG and ITC for the years ended July 31, 1996 and 1995.
If such expenses had not been voluntarily absorbed, ratio of
expenses to average net assets would have 2.49% and 2.96%, respectively,
and ratio of net investment income to average net assets would have been
(0.33%) and (0.71%), respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
^ The average commission rate paid is the total brokerage commissions paid
on applicable purchases and sales of securities for the period divided
by the total number of related shares purchased or sold which was a
new disclosure requirement effective September 1, 1995.
<PAGE>
INVESCO FUNDS
To receive general information and prospectuses
on any of INVESCO's funds or retirement plans,
or to obtain current account or price information,
call toll-free:
1-800-525-8085
To reach PAL(R), your 24-hour Personal
Account Line call: 1-800-424-8085
You can find us on the World Wide Web:
http://www.invesco.com
Or write to:
INVESCO Funds Group, Inc.,(SM) Distributor
Post Office Box 173706
Denver, Colorado 80217-3706
If you're in Denver, please visit one of our
convenient Investor Centers:
Cherry Creek, 155-B Fillmore Street;
Denver Tech Center
7800 East Union Avenue, Lobby Level
This information must be preceded or
accompanied by an effective prospectus.
