Semiannual Report
January 31, 1998
INVESCO Specialty Funds, Inc.
Asian Growth
European Small Company
Latin American Growth
Realty
S&P 500 Index
Worldwide Capital Goods
Worldwide Communications
INVESCO FUNDS
<PAGE>
Market Overview February 1998
During the last six months, the strength of the U.S. economy and
sustainability of the seven-year old bull market in U.S. equities have been
questioned. The catalyst that fueled these doubts and concerns was the Asian
financial crisis. Although the domestic economy continues to grow at an
above-average rate, the strong dollar combined with decreased Asian demand may
hinder future economic growth and corporate profits. This uncertainty about the
direction of the U.S. economy and corporate earnings increased volatility in the
domestic equity markets and produced the first market correction in the U.S. in
more than seven years in the fall of 1997 -- a decline in value of more than 10%
from the indexes' highs. The domestic equity markets have since recovered from
the correction, with many surpassing their highs set in the summer of 1997.
The investment landscape in the U.S. has changed somewhat, yet, in many
respects, the economy is still poised for growth with benign inflation.
Unemployment remains at historically low levels, and real wages are starting to
increase. Intense price competition is keeping consumer prices in check; in many
cases, prices are declining due to the flood of cheap goods from Asian
countries. For many U.S. companies, the easy gains in earnings produced over the
last few years may be more difficult to duplicate. Thus, 1998 may be a year with
increased volatility -- leading to a more selective stock market. The
containment of the Asian financial crisis and its impact on the U.S. economy may
be the one wild card that could disrupt the markets, either positively or
negatively.
Asia/Pacific Rim
On July 2, 1997, the Asian financial crisis began innocently enough as
Thailand's government decided to abandon their expensive fixed-exchange currency
system and "free-float" the baht. The following six months were devastating, as
many Asian/Pacific Rim financial markets lost more than 50% of their value.
Although the long-term fundamental underpinnings for economic growth remain
intact -- namely high savings rates, favorable demographics, a well-educated
work force, and a strong work ethic -- Asian/Pacific Rim nations are faced with
an economic crisis that is unprecedented in their brief financial history.
When Asian countries changed to floating exchange rate systems, the dollar
significantly appreciated vis-a-vis Asian currencies. This meant that the
payments on many Asian loans, denominated in U.S. dollars, became two to three
times as expensive compared to loans under the old fixed-exchange rate systems.
As companies could not repay their loans, the weakly-regulated banking sector
was in a liquidity trap that forced numerous financial institutions into
bankruptcy because of their ill-advised lending practices -- and a financial
crisis followed.
As miserable as the investment environment has been, some positive signs are
now radiating out of the region. First, governments that have addressed
financial problems with genuine economic reforms are starting to separate from
markets that are still practicing "crony capitalism." Second, we are starting to
see an increase in both foreign direct and portfolio investments in the
Asian/Pacific Rim region. Although these markets may remain volatile on a
day-to-day basis, it appears that the worst may be behind them.
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Latin America
The Asian financial crisis swayed investors' confidence in all emerging
markets. This caused investors to speculate that Latin American markets were
afflicted with many of the same ills present in Asian economies. In fact, Brazil
came under intense selling pressure in the fall as the viability of their high
current account deficit and over-valued currency was questioned. President
Cardoso swiftly implemented severe austerity measures which improved economic
fundamentals and restored investors' confidence in Brazil's financial markets.
Although these markets have declined in value because of the "emerging-market
effect" seen around the world, Latin American markets appear fundamentally more
sound than those in Asia. Latin American financial institutions -- especially
banks -- are highly regulated and fundamentally solid. This is a direct result
of these institutions surviving the Latin America currency crisis of 1994 and
1995.
Europe
Many European markets reached record highs during the last six months,
fueled by takeover speculation and better-than-expected corporate earnings.
However, a substantial portion of the gains in equity markets was produced by
top-tier, large-capitalization stocks. These companies have implemented
structural changes similar to those experienced by U.S. companies in the 1980s.
These modifications have improved efficiency and productivity, and translated
into bottom-line results.
Another positive for these markets continues to be the constraints of the
Maastricht Treaty, which forms the foundation for the European Union --
scheduled to begin in 1999. This treaty sets strict fiscal objectives for those
wishing to participate in the common currency. This in turn has produced
declining interest rates in many European countries, and brought much-needed
fiscal discipline and market reforms to many nations -- improving the equity
culture throughout Europe.
INVESCO Specialty Funds, Inc.
Each of the funds is managed by a team of investment professionals. For the
international equity funds, a senior investment policy group determines the
country-by-country allocation of the fund's assets, overall stock selection
methodology, and risk control policies. Realty Fund's investments, however, are
selected by a team of portfolio managers who collectively determine investment
decisions.
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 1/31/98. The charts and other total return
figures cited reflect the funds' operating expenses, but the indexes do not have
expenses, which would, of course, have lowered their performance.(1),(2)
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Asian Growth Fund
Average Annualized Total Return
as of 1/31/98 (2)
-------------------------------
1 year -48.67%
-------------------------------
Since inception (3/96) -27.02%
-------------------------------
Asian Growth Fund
For the six-month period ended 1/31/98, INVESCO Asian Growth Fund had a
total return of -52.01%, compared to a total return of -50.43% for the Morgan
Stanley Capital Index-Far East Ex Japan. (Of course, past performance is not a
guarantee of future results.)(1),(2)
Last summer, what began as a currency crisis in a few isolated Asian
countries spread like a contagion through most emerging markets, causing severe
short-term pain for many investors. The carnage the financial crisis left in its
wake was devastating for Asian/Pacific Rim investors, as all Asian markets
suffered severe declines. In fact, equity markets in Thailand and Malaysia lost
more than 70% of their value (in U.S. dollars) in 1997, and even Hong Kong
equity markets (traditionally a safe haven for investors) lost more than 25%.
This has served as a reminder that investing in emerging markets is a high
risk/high return proposition, and should only be undertaken by long-term
investors.
Graph:
This line graph compares 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 Ex Japan Index, assuming in each case reinvestment of all dividends
and capital gain distributions, for the period from inception (3/96)
through 1/31/98.
During the last six months, the fund has been defensive in nature, seeking
to avoid markets and economies with deteriorating fundamentals. We have instead
focused our investments in countries that have addressed their currency and
economic problems with genuine reforms -- skewing our allocations towards Hong
Kong, India, Malaysia, and Singapore. These markets should be best-suited to
handle continued market volatility.
Looking Forward
It's important for investors to remember that market psychology usually
swings from being overly optimistic to overly pessimistic. Currently, this is
true of Asian economies as these markets have become dramatically oversold. As
we noted above, the technical underpinnings for strong future economic growth
remain intact. The financial crisis in the Asian/Pacific Rim region will
probably pass with time, and these countries will more than likely be a major
driver of worldwide economic growth in the future. Once the crisis is over, the
fund will rebuild positions where currencies and stocks have become aggressively
oversold.
<PAGE>
Although day-to-day volatility may remain high in these markets, it appears
that we are near the bottom. Presently, many Asian companies are selling below
replacement value, and we are starting to see an increase in foreign investment
activity as investors are starting to buy stocks at bargain prices. This is
usually one of the first signs that the end of the crisis is near; and, when
these economies and markets start to recover, they may have the potential for
tremendous appreciation. Patience will remain a key virtue for investors.
Fund Management
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
Average Annualized Total Return
as of 1/31/98 (2)
--------------------------------
1 year -3.52%
--------------------------------
Since inception 17.89%
--------------------------------
European Small Company Fund
For the six-month period ended 1/31/98, INVESCO European Small Company Fund
had a total return of -3.52%, compared to the James Capel Smaller European
Index, which had a total return of 7.57%. (Of course, past performance is not a
guarantee of future results.)(1),(2)
The investment environment continues to improve in Europe, as declining
interest rates, low inflation, and strong earnings growth support equity prices.
However, much like the U.S. equity markets, European investors remain infatuated
with large-capitalization stocks while ignoring many small-cap issues; most
European small-cap stocks produced negative returns during the last six months
- -- even though the underlying fundamentals appear stronger for small-cap stocks
than large-caps. The fund's underperformance compared to the index was primarily
attributed to the index's exposure to medium-cap and large-cap stocks. The fund
concentrates only in small-capitalization stocks, and these stocks
underperformed both European medium-cap and large-cap issues.
During the last six months, the fund's returns were enhanced by exposure to
stocks in the temporary employment and computer services industries, and the
health care and technology sectors. Irish, Italian, and Spanish stocks also
<PAGE>
improved results as these countries experienced declining interest rates and
strong economic growth. In fact, one of our favorite stocks is Tele Pizza SA --
a Spanish pizza chain. This company has strong regional franchises, and 62% of
the pizza market in Spain. It continues to have accelerating sales as Spain
develops a taste for the fast food market, and the firm has the potential to
expand into similar businesses.
Looking Forward
The underlying story for European small-cap stocks remains good, as the
convergence of the EMU (European Monetary Union) improves economic fundamentals
for many countries. We will continue to have a geographical bias towards
countries that will experience the strongest economic growth, namely Ireland,
Italy, and Spain. Although country allocations will remain important, individual
stock selection will drive the performance of the fund. The fund will continue
to be heavily weighted in the fastest-growing industries and sectors worldwide
- -- including restaurants, temporary employment agencies, health care, and
financial services companies.
Fund Management
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.
Graph:
This line graph compares the value of a $10,000 investment in INVESCO
European Samll 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 (2/95) through 1/31/98.
Latin American Growth Fund
Average Annualized Total Return
as of 1/31/98(2)
--------------------------------
1 year -5.69%
--------------------------------
Since inception (2/95) 13.72%
--------------------------------
Latin American Growth Fund
For the six-month period ended 1/31/98, INVESCO Latin American Growth Fund
had a total return of -26.42%, compared to a total return of -22.11% for the
Morgan Stanley Capital Index-Latin American Index. (Of course, past performance
is not a guarantee of future results.)(1),(2)
<PAGE>
The Asian financial crisis sent shock waves through the world's emerging
markets, changing the risk/reward relationship for investors and causing
short-term pain. As with most emerging markets, Latin American markets were
negatively affected by the Asian financial crisis. However, investors need to
remember that Latin American markets seem to be fundamentally more sound than
their Asian counterparts. Most governments in Latin America have both the
political will and the economic means to defend their currencies if necessary,
and most banking sectors are well-regulated with solid balance sheets -- this is
a direct result of these countries surviving the peso currency crisis of
1994/95.
Brazil and Mexico remain two of our favorite markets, as they are large and
liquid with tremendous growth opportunities. In Mexico, strong consumer demand
and continuing economic growth support equity prices. Brazil, on the other hand,
is benefiting from deregulation and privatization. Although Brazilian markets
have had a difficult time in the last six months, we remain firm in our belief
that the country offers tremendous long-term potential. President Cardoso's
economic reforms continue to be a success, and his swift reaction to currency
speculators last fall increased his credibility in the world's financial
markets. Conversely, we are less optimistic about Chile, Columbia and Venezuela,
and we will continue to underweight these regions.
Graph:
This line graph compares 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
(2/95) through 1/31/98.
Within this environment, two stocks that we are excited about are Cia
Brasileirade Distribuicao Grupo Pao de Acucar and Cia Energetica do Ceara-Coelce
Celesc. Cia Brasileirade Distribuicao Grupo Pao de Acucar, a Brazilian
supermarket retailer, is expanding its presence in Brazil while reducing costs
and improving margins. This stock trades at less than nine times projected 1998
earnings, and exhibits strong earnings growth. Celesc is a distributor of
electricity in southern Brazil, and when privatization occurs in 1999, the firm
may enjoy huge cost savings and earnings growth.
Looking Forward
The Asian financial crisis may continue to influence Latin American
markets, increasing day-to-day volatility over the near-term. However, Latin
American markets appear solid fundamentally and fears of an Asian-style crisis
are not warranted for this region. In fact, these markets have been unfairly
attacked because of a "guilt by association" mentality among many international
investors. Latin American markets presently trade at low valuations compared to
their growth rates, and may offer dynamic potential for patient, long-term
investors.
<PAGE>
Fund Management
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.
Realty Fund
Average Annualized Total Return
as of 1/31/98 (2)
--------------------------------
1 year 17.45%
--------------------------------
Since inception 17.71%
--------------------------------
Realty Fund
For the six-month period ended 1/31/98, the Realty Fund had a return of
6.31%, compared to a return of 9.79% for the NAREIT Index for the six months
ended 1/31/98. (Of course, past performance is not a guarantee of future
results.)(1),(2)
With the world worried about the financial crisis in Asia, real estate
continues to offer attractive returns to investors. The performance of REITs
(Real Estate Investment Trusts) is driven by strength in local economies and
supply/demand fundamentals in real estate -- and both remain strong. We continue
to focus on U.S. investments, as we feel that the domestic market currently
possesses the best risk/reward trade-off for real estate investors.
Over the last six months, we have made minor adjustments in the portfolio's
asset allocation. However, we did increase the fund's exposure to regional malls
as they appeared attractively priced. Although the fund has been overweighted
towards the hotel sector, we have decided to reduce our exposure as it
experienced substantial appreciation in 1997. We also reduced our weighting in
apartments because lower interest rates made buying homes attractive to many
apartment users -- putting pressure on rental rates.
Individual REITs also enhanced the fund's returns. Two strong performers for
the fund that we remain excited about are Sunstone Hotel Investors and Arden
Realty Group. Sunstone Hotel Investors is a full-service hotel REIT that
specializes in acquiring, renovating and reflagging poorly performing hotel
properties. It has improved cash flows by gradually expanding its market. Arden
Realty Group concentrates on office property in California and is profiting from
California's strong economic recovery.
<PAGE>
Looking Forward
We believe that the outlook for REITs remains bright. While a flood of new
IPOs and secondary stock offerings in 1997 caused some short-term price
constraints, the long-term fundamentals for this sector remain bullish. The fund
will continue to diversify across property and geographic sectors, searching for
real estate markets that are improving fundamentally. As long as the domestic
economy stays strong, the technical underpinnings of this sector should remain
intact.
Graph:
This line graph compares the value of a $10,000 investment in INVESCO
Realty Fund to the value of a $10,000 investment in the NAREIT Index,
assuming in each case reinvestment of all dividends and capital gain
distributions, for the period from inception (1/97) through 1/31/98.
Fund Management
The fund's investments are selected by a team of INVESCO Realty Advisors,
Inc. portfolio managers, who are collectively responsible for the investment
decisions for the fund.
Worldwide Capital Goods Fund
The fund received the prestigious 5-star risk-adjusted rating from
Morningstar, both overall and for the three-year period ended 1/31/98, among 694
international equity funds.(4)
For the one-year period ended 1/31/98, Lipper Analytical Services ranked
Worldwide Capital Goods Fund #10 of 191 global funds, based on total return
unadjusted for commissions. For the three-year period ended 1/31/98, the fund
ranked #35 of 116.(2),(3)
During the six-month period ended 1/31/98, INVESCO Worldwide Capital Goods
Fund had a total return of -5.04%, compared to a total return of 3.58% for the
domestic S&P 500 and -6.53% for the international Morgan Stanley Capital
Index-Europe/Australia/Far East. Keep in mind that these indexes measure broad
equity performance, while the fund invests in a targeted market sector. (Of
course, past performance is not a guarantee of future results.)(1),(2)
Worldwide Capital Goods Fund
Average Annualized Total Return
as of 1/31/98 (2)
--------------------------------
1 year 22.30%
--------------------------------
Since inception 10.43%
--------------------------------
<PAGE>
The last six months have been a difficult time for international investors,
especially those exposed to emerging markets. The capital goods sector did not
escape the fallout from the Asian financial crisis, as many of these companies
were heavily dependent on strong Asian growth to spur future demand. Our
decision to exit most of the emerging markets of Southeast Asia in the summer of
1997 proved timely, and helped the fund navigate this difficult environment.
During the last six months, we have increased the fund's exposure to small-
and mid-capitalization firms that are based in the U.S. These companies should
not be overly influenced by a slowdown in Asian economies, as their earnings are
more dependent on a strong domestic economy than foreign demand. We have also
increased the fund's holdings in the machinery and energy industries, as these
companies appear fundamentally cheap with strong earnings growth potential.
Parker-Hannifin Corp. remains one of our favorite machinery firms, whose stock
should benefit from strong demand for its aerospace equipment over the next five
years. We are also upbeat about the future of Owens-Illinois Inc., a diversified
capital goods firm specializing in glass and plastic packaged products.
Graph:
This line graph compares the value of a $10,000 investment in INVESCO
Worldwide Capital Goods Fund to the value of a $10,000 investment in the
S&P 500 and MSCI-EAFE Indexes, assuming in each case reinvestment of all
dividends and capital gain distributions, for the period from inception
(8/94) through 1/31/98.
Looking Forward
The Asian financial crisis has created a short-term problem for many capital
goods companies, but the long-term fundamentals for this sector remain in place.
With the passage of the Asian financial crisis, emerging economies around the
globe are likely to refocus their energy on developing their infrastructures.
This should stimulate the need for capital goods and return stability to the
sector. Until that time, stock selectivity will remain the crucial ingredient in
determining fund performance.
Fund Management
Vice President John S. Segner assumed the responsibilities of portfolio
manager in December 1997. He received a BS from the University of Alabama and an
MBA from the University of Texas at Austin. Before joining INVESCO in 1997, John
served as Managing Director and Principal for The Mitchell Group, and had
previous experience with Texaco Inc., Amerada Hess Corporation, and First
Tennessee National Corporation.
<PAGE>
Worldwide Communications Fund
Average Annualized Total Return
as of 1/31/98 (2)
--------------------------------
1 year 33.16%
--------------------------------
Since inception (8/94) 24.22%
--------------------------------
Worldwide Communications Fund
The fund received the prestigious 4-star risk-adjusted rating from
Morningstar, both overall and for the three-year period ended 1/31/98, among
2,364 equity funds.(4)
For the six-month period ended 1/31/98, INVESCO Worldwide Communications
Fund had a total return of 12.42%, compared to a total return of 3.58% for the
domestic S&P 500 and -6.53% for the international Morgan Stanley Capital
Index-Europe/Australia/Far East. Keep in mind that these indexes measure broad
equity performance, while the fund invests in a targeted market sector. (Of
course, past performance is not a guarantee of future results.)(1),(2)
The telecommunication sector experienced strong relative performance during
the last six months. Mergers and acquisitions between WorldCom Inc. and MCI
Communications, Inc., WorldCom Inc. and Brooks Fiber Properties, AT&T and
Teleport Communications Group Class A, and SBC Communications and Southern New
England Telecom intensified investors' focus on the potential of this sector.
All of these transactions have provided progressively higher valuation
benchmarks for facilities-based carriers. When the RBOCs (Regional Bell
Operating Companies) enter the long-distance market, they will have a strong
incentive to buy or build local access facilities outside their existing service
territories (market considerations will probably tip the scales towards
purchasing existing facilities). This fuels the speculation that RBOCs may
become active in acquiring competitive local exchange companies (CLECs).
Graph:
This line graph compares the value of a $10,000 investment in INVESCO
Worldwide Communications Fund to the value of a $10,000 investment in the
S&P 500 and MSCI-EAFE Indexes, assuming in each case reinvestment of all
dividends and capital gain distributions, for the period from inception
(8/94) through 1/31/98.
The CLECs remain one of our favorite investment areas. These companies are
building state-of-the-art, highly efficient networks that are well-suited to
meet the voice and data transmission needs of their customers. Many of these
companies are close to becoming cash flow positive, and are attractive as
takeover targets. Intermedia Communications is one CLEC that we are presently
excited about. This company continues to experience explosive growth, and
currently is the fifth-largest data service provider in the country.
<PAGE>
During the last six months, the one area that produced some disappointments
was telephone equipment stocks. These companies felt the effects of the Asian
financial crisis, as much of their future growth was predicated on strong Asian
economies. However, we remain positive on their long-term fundamentals and
believe that these stocks will rebound when the Asian financial crisis subsides.
Looking Forward
We are excited about the long-term potential for the telecommunications
sector. The drivers for growth remain intact:
o Developing countries need improved communications systems to compete in
the global economy.
o More than half the people in the world have never used a phone.
o The Internet and related services are growing exponentially.
o Wireless service demand is increasing worldwide.
These factors should influence this sector for at least the next 10 years.
We will remain cautious with the fund's investments in the Asian/Pacific Rim and
Latin American region as the recent financial crisis has made these areas
riskier investments -- although we are optimistic about their long-term
potential. Instead, the fund will remain heavily weighted in the U.S. and
Europe, and a significant portion of the fund's assets will be in CLECs, as
these firms possess tremendous growth opportunities.
Fund Management
Effective July 1, 1997, Brian B. Hayward assumed responsibilities of
portfolio manager of Worldwide Communications Fund. Previously, he was a senior
equity analyst for Mississippi Valley Advisors in St. Louis, Missouri and began
his investment career in 1985. Brian earned a BA in Mathematics and a MA in
Economics from the University of Missouri. He is a Chartered Financial Analyst.
S&P 500 Index Fund
Total Return Since Inception
as of 1/31/98 (2)
---------------------------------------
Since inception (12/97) Class I* 4.50%
---------------------------------------
Since inception (12/97) Class II* 5.30%
---------------------------------------
* For Class I shares, the minimum initial investment is $250,00. For Class II
shares, the minimum initial investment is $5,000 for individual accounts and
$2,000 for Individual Retirement Accounts ("IRAs"). The minimum initial
investment is waived for regular investment plans.
<PAGE>
S&P 500 Index
INVESCO launched its first index fund in December 1997. The S&P 500 Index
Fund seeks to provide price performance and income comparable to the Standard &
Poor's 500 Composite Index which is composed of 500 selected
large-capitalization stocks. In its brief performance history from inception
(12/97) to 1/31/98, the fund's total return of 5.30% for the Class II shares
beat the return of 5.24% for the index, while the fund's Class I shares return
of 4.50% underperformed the index for the same time period. (Of course, past
performance is not a guarantee of future results.)(1),(2)
Graph:
This line graph compares the value of a $10,000 investment in INVESCO S&P
500 Index Fund Class I and INVESCO S&P 500 Index Fund Class II to the
value of a $10,000 investment in the S&P 500 Index, assuming in each case
reinvestment of all dividends and capital gain distributions, for the
period from inception (12/97) through 1/31/98.
(1)The MSCI-EAFE, MSCI-Pacific Ex Japan, MSCI-Latin American and James Capel
Smaller European Index are unmanaged indexes of common stocks considered to be
representative respectively of the equity markets of Europe/Australia/Far East;
Pacific Basin excluding Japan; Latin America; and European small-capitalization.
The S&P 500 is an unmanaged index indicative of the broad U.S. stock market. The
NAREIT is an unmanaged index indicative of the U.S. real estate investment trust
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.
(4)Morningstar's proprietary rankings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated for
the fund's three-, five-, and 10-year average annual returns (based on available
track records) in excess of 90-day Treasury bill returns. The top 10% of funds
in an investment category receive 5 stars, and the next 22.5%, 4 stars. As of
1/31/98, Worldwide Capital Goods Fund received 5 stars among 694 funds in the
international equity fund category for the three-year and overall period.
Worldwide Communication Fund received 4 stars among 2,364 funds in the domestic
equity fund category for the three-year and overall period.
<PAGE>
INVESCO Specialty Funds, Inc.
Ten Largest Common Stock Holdings
January 31, 1998
Description Value
- --------------------------------------------------------------------------------
ASIAN GROWTH Fund
CLP Holdings Ltd $ 653,548
Hong Kong Telecommunications Ltd 644,954
Tianjin Development Holdings Ltd 613,812
Hutchison Whampoa Ltd 529,170
Cheung Kong Holdings Ltd 459,389
HSBC Holdings PLC 443,237
Cheung Kong Infrastructure Holdings Ltd 434,966
CITIC Pacific Ltd 395,889
Mahanagar Telephone Nigam Ltd Sponsored GDR
Representing 2 Regulation S Shrs 376,562
China Telecom Ltd 365,069
EUROPEAN SMALL COMPANY Fund
Leon de Bruxelles SA $845,081
Tomra Systems A/S A 835,856
UBI Soft Entertainment 786,669
Simint SpA 756,828
Altran Technologies SA 755,143
QIAGEN NV New York Registered Shrs 747,000
Disetronic Holding AG 713,208
Tele Pizza SA 706,474
Data Modul AG 702,238
Ryanair Holdings PLC 698,542
LATIN AMERICAN GROWTH Fund
Panamerican Beverages Class A $ 2,437,500
Light Participacoes SA 2,056,773
Cemex SA de CV Series B Shrs 1,904,256
Grupo Carso SA de CV Series A-1 Shrs 1,823,168
Telecomunicacoes Brasileiras SA 1,816,371
Cifra SA de CV Series C Shrs 1,695,036
Controladora Comercial Mexicana SA de CV GDR
Representing 20 Linked BC Units 1,660,800
Grupo Financiero Banamex-Accival SA de CV
Series B Shrs 1,529,256
Cia Paranaense de Energia-Copel 1,488,712
Alfa SA de CV Participation Certificates
Series A Shrs 1,453,363
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REALTY Fund
Arden Realty Group $ 2,276,950
Patriot American Hospitality SBI 2,228,068
Equity Office Properties Trust 1,894,666
Starwood Hotels & Resorts Trust 1,680,188
Meditrust Corp Paired Certificates 1,609,375
Mack-Cali Realty 1,596,375
Rouse Co 1,556,838
Crescent Real Estate Equities 1,366,362
AMRESCO Inc 1,332,157
Cousins Properties 1,202,500
WORLDWIDE CAPITAL GOODS Fund
Owens-Illinois Inc $ 596,550
Dana Corp 576,437
Brush Wellman 564,937
Parker-Hannifin Corp 537,356
Global Industries Ltd 508,875
Ingersoll-Rand Co 504,825
General Electric 503,750
USX-Marathon Group 493,369
Kennametal Inc 452,525
Endesa SA Sponsored ADR
Representing 1 Share 441,313
WORLDWIDE COMMUNICATIONS Fund
COLT Telecom Group PLC Sponsored
ADR Representing 4 ORD Shrs $ 3,310,875
NEXTEL Communications Class A 2,960,675
MCI Communications 2,902,344
WorldCom Inc 2,685,938
Intermedia Communications 2,416,950
Teleport Communications Group
Class A 2,399,937
SBC Communications 2,215,875
Telecom Italia Mobile SpA 2,147,373
ICG Communications 2,093,125
Sprint Corp 2,060,312
<PAGE>
S&P 500 INDEX Fund
General Electric $ 112,917
Microsoft Corp 84,888
Coca-Cola Co 67,664
Merck & Co 66,481
Exxon Corp 61,922
Intel Corp 58,968
Pfizer Inc 47,606
Procter & Gamble 46,085
Royal Dutch Petroleum New York
Registry 1.25 Gldr Shrs 46,074
AT&T Corp 45,528
Composition of holdings is subject to change.
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Investment Securities
January 31, 1998
UNAUDITED
<TABLE>
<CAPTION>
Shares or
Industry Principal
Description Code Amount Value
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASIAN GROWTH Fund
COMMON STOCKS & WARRANTS 81.06%
AUSTRALIA 1.56%
WMC Holdings Ltd GP 55,000 $ 194,196
------------
HONG KONG 41.63%
CLP Holdings Ltd EU 119,000 653,548
Cheung Kong Holdings Ltd RE 90,000 459,389
Cheung Kong Infrastructure
Holdings Ltd RE 170,000 434,966
China Telecom Ltd* TL 258,000 365,069
CITIC Pacific Ltd CG 138,000 395,889
Hang Seng Bank Ltd BK 42,900 338,165
Hong Kong Telecommunications Ltd TL 310,000 644,954
Hutchison Whampoa Ltd CG 90,000 529,170
New World Development Ltd RE 110,000 265,102
Shanghai Industrial Holdings Ltd MG 89,000 234,043
Sun Hung Kai Properties Ltd RE 50,000 256,509
Tianjin Development Holdings Ltd* DB 1,000,000 613,812
------------
5,190,616
------------
INDIA 6.82%
Gujarat Ambuja Cement Ltd Sponsored
GDR Representing Ord Shrs BD 11,700 61,425
Mahanagar Telephone Nigam
Ltd Sponsored GDR
Representing 2 Regulation S
Shrs*~ TL 25,000 376,562
Ranbaxy Laboratories Ltd GDR
Representing Ord Shrs HD 7,500 176,250
State Bank of India GDR
Representing 2 Regulation S Shrs~ BK 16,000 236,000
------------
850,237
------------
<PAGE>
INDONESIA 0.97%
PT Bank Internasional Indonesia
Warrants (Exp 2000)* BK 22,652 $ 166
PT Bimantara Citra CG 265,000 14,512
PT Dynaplast Foreign Shrs CH 1,035,000 44,357
PT Telekomunikasi Indonesia
Foreign Shrs TN 150,000 61,428
------------
120,463
------------
LUXEMBOURG 2.40%
Korea Asia Fund IDR* FN 315 299,250
------------
MALAYSIA 8.25%
Commerce Asset Holding Berhad BK 280,000 117,864
Hong Leong Credit Berhad FN 78,000 61,563
Hong Leong Credit Berhad
Warrants (Exp 2001)* FN 12,000 947
Magnum Corp Berhad CG 261,000 144,199
Malakoff Berhad AG 20,000 36,593
Malayan Banking Berhad BK 116,000 255,244
Metroplex Berhad RE 320,000 73,473
Sime Darby Berhad MY 98,000 100,787
Tanjong PLC GM 136,000 217,933
United Engineers Berhad Ltd EC 38,000 19,449
------------
1,028,052
------------
PHILIPPINES 2.92%
Benpres Holdings Sponsored GDR*^ BR 10,040 22,590
GDR Representing 20
Regulation S Shrs*~ BR 25,100 56,475
First Philippine Holdings B Shrs CG 123,000 70,656
Philippine Long Distance Telephone TL 5,000 122,509
Uniwide Holdings* DB 786,000 7,372
William Gothong & Aboitiz* AF 4,000,000 84,408
------------
364,010
------------
SINGAPORE 10.98%
Avimo Singapore Ltd EL 120,000 143,972
City Developments Ltd RE 40,000 124,636
DBS Land Ltd RE 120,000 123,005
Development Bank of Singapore
Ltd Foreign Shrs BK 23,000 147,350
<PAGE>
Parkway Holdings Ltd HC 63,000 95,032
Singapore Airlines Ltd Foreign Shrs AR 22,000 143,506
Singapore Technologies
Engineering Ltd* EC 120,000 97,845
Singapore Telecommunications Ltd TL 170,000 336,633
United Overseas Bank Ltd BK 42,000 156,552
------------
1,368,531
------------
SOUTH KOREA 0.09%
Sungmi Telecom Electronics* CM 230 10,760
------------
THAILAND 1.89%
Bangkok Expressway PLC* EC 37,000 28,232
Bangkok Expressway PLC
Foreign Shrs* EC 90,000 68,673
Electricity Generating PLC
Foreign Shrs* EU 45,000 124,550
Thai Farmers Bank PLC
Warrants (Exp 2002)* BK 1,875 323
Total Access Communications PLC TC 18,400 14,536
------------
236,314
------------
UNITED KINGDOM 3.55%
HSBC Holdings PLC BK 20,000 443,237
TOTAL COMMON STOCKS
& WARRANTS
(Cost $16,984,388) 10,105,666
------------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 18.94%
UNITED STATES 18.94%
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/30/1998 due 2/2/1998 at 5.530%,
repurchased at $2,361,725
(Collateralized by US Treasury
Bonds due 11/15/2015 at 9.875%
value $2,415,683)
(Cost $2,361,000) RA $ 2,361,000 2,361,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
<PAGE>
(Cost $19,345,388)
(Cost for Income Tax Purposes
$19,383,305) $ 12,466,666
============
EUROPEAN SMALL COMPANY Fund
COMMON STOCKS 95.66%
AUSTRIA 0.18%
Scala Business Solutions NV
Registered Shrs* SV 13,091 $ 82,443
------------
BELGIUM 1.37%
Creyf's SA SV 5,000 611,405
------------
DENMARK 3.43%
Coloplast A/S Registered B Shrs HC 6,200 498,413
Falck Holding A/S AF 10,500 513,988
NeuroSearch A/S* HD 6,900 521,008
------------
1,533,409
------------
FINLAND 1.60%
KCI Konecranes International PLC MY 6,255 214,704
TT Tieto OY Series B Shrs CO 4,600 498,619
------------
713,323
------------
FRANCE 13.29%
Altran Technologies SA EC 2,300 755,143
Dassault Systemes SA CO 22,500 679,555
FDM Pharma* BI 12,000 286,180
Genset SA* BI 8,200 534,432
GrandVision SA PI 18,000 688,596
Ingenico SA SV 19,700 466,595
LVL Medical Groupe HC 4,190 479,090
Leon de Bruxelles SA* RS 11,150 845,081
Picogiga SA* ES 13,727 414,813
UBI Soft Entertainment* TY 8,000 786,669
------------
5,936,154
------------
GERMANY 4.33%
Boewe Systec AG MY 18,200 637,195
Data Modul AG EL 16,500 702,238
LOESCH Umweltschutz AG PC 21,500 470,457
<PAGE>
Sartorius AG EL 434 $ 122,507
------------
1,932,397
------------
IRELAND 5.34%
Adare Printing Group PLC PB 30,000 309,015
IONA Technologies PLC
Sponsored ADR Representing
Ord Shrs* CO 23,900 442,150
Irish Continental Group PLC AF 22,500 323,590
Ryanair Holdings PLC* AR 150,000 698,542
Saville Systems PLC Sponsored
ADR Representing Ord Shrs* CO 15,000 611,250
------------
2,384,547
------------
ITALY 6.62%
Aeroporti di Roma SpA*^ AR 19,200 248,085
Banca Popolare Commercio e
Industria BK 27,650 521,336
Bulgari SpA CJ 122,800 676,566
Gucci Group NV New York
Registered Shrs RT 11,000 437,937
SAES Getters SpA Non-Conv
Savings Shrs EL 34,742 315,968
Simint SpA* TA 103,000 756,828
------------
2,956,720
------------
NETHERLANDS 13.93%
Aalberts Industries NV CG 22,400 603,531
Baan Co NV* CO 15,700 575,994
Beter Bed Holding NV HF 18,800 410,704
Cap Gemini NV CO 11,000 465,125
Content Beheer NV SV 22,000 585,278
Fugro NV Certificates EC 21,100 639,184
Grand Hotel Krasnapolsky NV LH 14,900 473,790
Kempen & Co NV IV 8,442 378,273
Koninklijke Ahrend Groep NV OE 11,800 359,177
Polynorm NV MG 4,800 460,222
QIAGEN NV New York
Registered Shrs* BI 16,600 747,000
Unique International NV SV 24,600 525,468
------------
6,223,746
<PAGE>
------------
NORWAY 6.47%
Ark A/S A CO 47,000 $ 496,166
Ekornes A/S A Registered Shrs HF 60,000 554,228
Tandberg A/S A* CM 23,600 451,564
Tandberg Television A/S A* CM 47,200 554,334
Tomra Systems A/S A MY 41,400 835,856
------------
2,892,148
------------
SPAIN 1.58%
Tele Pizza SA* RS 7,300 706,474
------------
SWEDEN 4.15%
Assa Abloy AB Series B Shrs MG 19,300 476,072
Caran AB Series B Shrs CO 79,950 616,289
OXiGENE Europe AB* HD 7,700 118,710
Scandic Hotels AB* LH 25,500 641,588
------------
1,852,659
------------
SWITZERLAND 3.43%
Belimo Automation AG
Registered Shrs BD 1,186 401,855
Disetronic Holding AG HC 310 713,208
Valora Holding AG Registered Shrs RS 1,820 418,722
------------
1,533,785
------------
UNITED KINGDOM 28.73%
ABI Leisure Group PLC LT 433,666 106,357
American Port Services PLC AF 100,000 204,375
Antonov PLC* AP 277,816 347,485
AromaScan PLC* EL 235,339 65,412
Ash & Lacy PLC MG 50,000 129,165
Atlantic Telecom Group PLC* CA 200,000 497,040
Avocet Mining PLC* GP 150,000 247,702
Claremont Garments Holdings PLC TA 370,000 393,218
Cortecs PLC* HD 150,000 453,713
Denby Group PLC HW 90,000 217,782
Dialog Corp PLC* CO 88,500 253,221
Electronics Boutique PLC* RT 260,000 208,299
Filtronic Comtek PLC TL 39,000 340,505
GEI International PLC MY 200,000 313,920
Games Workshop Group PLC LT 50,000 537,098
<PAGE>
Greenway Holdings PLC PC 163,749 $ 133,865
Hambro Countrywide PLC RE 256,450 511,541
Helical Bar PLC RE 35,000 336,197
Hozelock Group PLC HP 75,000 413,246
Ilion Group PLC CO 60,000 149,602
Infobank International
Holdings PLC* CO 120,454 413,579
Innovative Technologies
Group PLC* HD 186,434 317,012
Intelligent Environments
Group PLC* CO 300,000 120,172
Ionica Group PLC* TN 125,000 194,156
McCarthy & Stone PLC HB 100,000 189,660
Memory Corp PLC* CO 340,000 147,314
NSM PLC*@ GP 575,000 0
Norbain PLC EL 120,000 515,025
Orbis PLC SV 750,000 527,288
Pendragon PLC AM 107,142 442,322
Psion PLC CO 60,000 424,773
Queensborough Holdings PLC RE 500,000 155,325
Regal Hotel Group PLC LH 650,000 446,355
Richards PLC TA 337,500 179,339
Rutland Trust PLC FN 400,000 379,320
SEP Industrial Holdings PLC MG 584,000 267,355
Savills PLC SV 300,000 632,745
Slimma PLC TA 170,000 127,857
Symonds PLC MG 500,000 294,300
Syndicate Capital Trust PLC FN 200,000 379,320
TransTec PLC MG 200,000 219,090
Vero Group PLC CM 150,000 208,463
Vymura PLC BD 190,834 396,257
------------
12,836,770
------------
UNITED STATES 1.21%
OXiGENE Inc* HD 35,300 542,737
------------
TOTAL COMMON STOCKS
(Cost $43,119,118) 42,738,717
------------
PREFERRED STOCKS 4.34%
GERMANY 4.34%
Fresenius AG Non-Voting Pfd HC 3,500 746,713
Marschollek, Lautenschlaeger und
Partners AG Non-Voting Pfd IN 2,630 751,013
<PAGE>
Sander (Jil) AG Non-Voting Pfd TA 1,460 $ 439,275
------------
TOTAL PREFERRED STOCKS
(Cost $2,087,718) 1,937,001
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $45,206,836)
(Cost for Income Tax Purposes
$45,240,492) $ 44,675,718
============
LATIN AMERICAN GROWTH Fund
COMMON STOCKS 63.91%
ARGENTINA 12.34%
Aluar Aluminio Argentina SAIC
Class B Shrs AL 170,000 $ 586,751
Cresud SA Series B Shrs* FD 300,200 543,595
Disco SA Sponsored ADR
Representing 3 Shrs* RT 35,000 1,435,000
Inversiones y Representaciones
SA Sponsored GDR
Representing 10 Shrs RE 40,000 1,277,500
SA Importadora y Exportadora
de la Patagonia Series B Shrs RT 45,000 751,822
SA San Miguel AGICI y F B Shrs* AG 35,230 578,019
Sociedad Comercial del Plata SA CG 949,990 1,207,004
Telefonica de Argentina SA
Sponsored ADR Representing
10 Class B Shrs TN 35,000 1,211,875
------------
7,591,566
------------
BRAZIL 9.05%
Cia Paranaense de Energia-Copel* EU 152,000,000 1,488,712
Light Participacoes SA EU 11,000,000 2,056,773
Rossi Residencial SA GDR
Regulation S Representing
5 Ord Shrs*~ HB 63,600 206,700
Telecomunicacoes Brasileiras SA TL 20,000,000 1,816,371
------------
5,568,556
------------
CHILE 2.70%
Administradora de Fondos de
<PAGE>
Pensiones Provida SA
Sponsored ADR Representing
Cmn Shrs FN 30,000 $ 498,750
Sociedad Quimica y Minera de
Chile SA Sponsored ADR
Representing 10 Series B Shrs CH 29,000 1,167,250
------------
1,666,000
------------
MEXICO 35.02%
Alfa SA de CV Participation
Certificates Series A Shrs CH 280,718 1,453,363
Cemex SA de CV Series B Shrs* BD 450,000 1,904,256
Cifra SA de CV Series C Shrs RT 1,000,000 1,695,036
V Shrs RT 116,451 215,008
Consorcio ARA SA de CV
Regulation S Sponsored ADR
Representing 10 Shrs*~ HB 13,400 593,971
Sponsored ADR Representing
10 Shrs*^ HB 20,600 913,120
Controladora Comercial Mexicana
SA de CV GDR Representing
20 Linked BC Units RT 69,200 1,660,800
Corporacion GEO SA de CV
Series B Shrs* HB 180,000 970,213
Fomento Economico Mexicano
SA de CV Series B Shrs BV 200,000 1,252,955
Grupo Accion SA de CV
Regulation S Sponsored
ADR Representing 10
Series B Shrs*~ EC 45,000 425,529
Grupo Carso SA de CV
Series A-1 Shrs CG 320,000 1,823,168
Grupo Financiero
Banamex-Accival SA de CV
Series B Shrs* BK 575,000 1,529,256
Grupo Industrial Saltillo SA de
CV Series B Shrs IS 300,000 950,355
Grupo Televisa SA de CV
Participation Certificates
Representing Series A, D & L Shrs* BR 60,000 952,482
Panamerican Beverages Class A BV 75,000 2,437,500
Sanluis Corp SA de CV
Participation Certificates
Representing Series B, C & D Shrs MY 230,000 1,438,180
<PAGE>
Tubos de Acero de Mexico SA
Sponsored ADR Representing
Cmn Shrs* IS 80,000 $ 1,330,000
------------
21,545,192
------------
PERU 3.01%
CPT Telefonica del Peru SA
Sponsored ADR Representing
10 Class B Shrs TN 35,000 686,875
Cia de Minas Buenaventura SA
Series T Shrs GP 150,000 649,468
Ferreyros SA Regulation S
Sponsored ADR
Representing 20 Ord Shrs*~ MY 25,464 514,515
------------
1,850,858
------------
VENEZUELA 1.79%
Cia Anonima Nacional Telefonos
de Venezuela ADR
Representing 7 Class D Shrs TL 30,000 1,102,500
------------
TOTAL COMMON STOCKS
(Cost $44,057,628) 39,324,672
------------
PREFERRED STOCKS & RIGHTS 36.09%
ARGENTINA 1.30%
Nortel Inversora SA ADR
Representing 1/20th of
a Pfd B Shr TL 35,000 798,438
------------
BRAZIL 34.79%
Banco Bradesco SA
Non-Voting Pfd* BK 121,446,500 962,386
Rights Pfd* BK 5,192,466 6,935
Banco Itau SA Non-Voting Pfd BK 2,324,000 1,268,443
Centrais Eletricas Brasileiras SA
Class B Non-Voting Pfd EU 60,000,000 2,697,846
Centrais Eletricas de Santa
Catarina SA Series B Pfd EU 1,570,000 1,425,851
Cia Brasileira de Distribuicao
Grupo Pao de Acucar RT 45,000,000 801,340
Sponsored ADR Representing
1000 Pfd Shrs^ RT 50,000 890,375
<PAGE>
1000 Regulation S Pfd Shrs~ RT 38,067 $ 701,860
Cia de Tecidos Norte de
Minas Coterninas Pfd TA 5,800,000 1,313,771
Cia Energetica de Brasilia Pfd EU 2,080,000 178,717
Cia Energetica de Minas
Gerais Pfd EU 29,999,000 1,185,944
Cia Energetica do Ceara-Coelce
Series A Pfd* EU 150,000,000 447,415
Globex Utilidades SA Pfd RT 30,000 189,651
Lojas Renner SA Pfd RT 10,000,000 276,017
Perdigao SA Pfd FD 252,900,000 315,247
Petroleo Brasileiro SA Pfd OG 16,500,000 3,525,897
Telecomunicacoes Brasileiras
SA Sponsored ADR
Representing 1000 Pfd Shrs TN 47,000 5,217,000
------------
21,404,695
------------
TOTAL PREFERRED STOCKS & RIGHTS
(Cost $25,698,834) 22,203,133
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $69,756,462)
(Cost for Income Tax Purposes
$69,768,363) $ 61,527,805
============
REALTY Fund
COMMON STOCKS 89.45%
AUSTRALIA 1.41%
BT Hotel Group Ltd LH 430,000 303,534
Mirvac Property Trust RE 250,000 248,433
------------
551,967
------------
CANADA 1.87%
RioCan REIT RE 18,000 266,594
Trizec Hahn RE 20,000 465,000
------------
731,594
------------
HONG KONG 0.20%
Sun Hung Kai Properties Ltd
Sponsored ADR Representing Ord Shrs RE 15,100 77,465
------------
<PAGE>
JAPAN 0.35%
Hankyu Realty RE 26,000 $ 138,407
------------
LUXEMBOURG 1.02%
Security Capital US Realty* RE 28,500 399,000
------------
SINGAPORE 0.23%
Singapore Land Ltd ADR
Representing Ord Shrs RE 49,000 88,465
------------
UNITED STATES 84.37%
American General Hospitality RE 2,300 63,394
American Skiing* LT 40,000 552,500
AMRESCO Inc* FN 47,000 1,332,157
Apartment Investment
& Management Class A RE 10,000 371,250
Arden Realty Group RE 80,600 2,276,950
Bay Apartment Communities RE 12,040 456,767
Bedford Property Investors RE 9,500 201,281
CBL & Associates Properties RE 17,100 422,156
Cabot Industrial Trust* RE 15,100 339,750
Cadillac Fairview* RL 46,700 1,024,481
Camden Property Trust SBI RE 20,000 596,250
CarrAmerica Realty RE 40,000 1,172,500
Catellus Development* RE 38,400 727,200
Cousins Properties RE 40,000 1,202,500
Crescent Operating* RE 5,000 100,312
Crescent Real Estate Equities RE 38,900 1,366,362
Equity Office Properties Trust SBI RE 62,504 1,894,666
Equity Residential Properties
Trust SBI RE 21,250 1,086,406
Essex Property Trust RE 31,300 1,077,894
First Industrial Realty Trust RE 19,300 692,387
First Union Real Estate Equity
& Mortgage Investments SBI RE 32,400 386,775
Gables Residential Trust SBI RE 9,200 251,275
Highwoods Properties RE 27,800 1,006,012
Host Marriott* LH 20,000 350,000
Kimco Realty RE 20,700 714,150
Liberty Property Trust SBI RE 30,300 821,887
Mack-Cali Realty RE 39,600 1,596,375
Meditrust Corp Paired Certificates RE 50,000 1,609,375
Merry Land & Investment RE 12,400 285,975
Oasis Residential RE 31,000 678,125
<PAGE>
Patriot American Hospitality RE 86,949 $ 2,228,068
Prentiss Properties Trust RE 22,700 618,575
Public Storage RE 18,500 608,188
Rouse Co RE 46,300 1,556,838
Simon DeBartolo Group RE 14,730 488,852
Starwood Hotels & Resorts Trust RE 30,900 1,680,188
Sunstone Hotel Investors RE 39,800 669,138
Taubman Centers RE 20,000 260,000
Vornado Realty Trust SBI RE 3,900 177,450
------------
32,944,409
------------
TOTAL COMMON STOCKS
(Cost $34,946,623) 34,931,307
------------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 10.55%
UNITED STATES 10.55%
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/30/1998
due 2/2/1998 at 5.530%,
repurchased at $4,120,898
(Collateralized by US Treasury
Bonds due 11/15/2015 at 9.875%
value $ 4,209,145)
(Cost $4,119,000) RA 4,119,000 4,119,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $39,065,623)
(Cost for Income Tax Purposes
$39,158,216) $ 39,050,307
============
WORLDWIDE CAPITAL GOODS Fund
COMMON STOCKS 86.50%
FRANCE 2.10%
Thomson-CSF AE 9,200 $ 315,582
------------
ITALY 2.13%
Telecom Italia SpA TL 46,000 318,869
------------
MEXICO 4.81%
Cemex SA de CV
<PAGE>
Participation Certificates* BD 30,000 $ 107,979
Series A Shrs* BD 10,000 36,170
Consorcio G Grupo Dina SA
Sponsored ADR Representing
4 Shrs* AM 46,000 209,875
Grupo Carso SA de CV
Series A-1 Shrs CG 27,000 153,830
Grupo Imsa SA de CV Sponsored
ADR Representing 9 Units CG 11,100 213,675
------------
721,529
------------
SPAIN 2.94%
Endesa SA Sponsored ADR EU 23,000 441,313
------------
SWEDEN 1.66%
AB Volvo Sponsored ADR
Representing 1 Class B Shr AM 9,200 248,400
------------
UNITED KINGDOM 2.03%
Denison International PLC ADR
Representing Ord Shrs* MY 18,400 303,600
------------
UNITED STATES 70.83%
Brush Wellman MG 23,000 564,937
Coastal Corp NG 6,900 400,200
Dana Corp AP 11,500 576,437
Exxon Corp OG 4,700 278,769
Federal-Mogul Corp AP 6,900 310,500
General Electric EE 6,500 503,750
Gleason Corp MY 12,000 291,750
Global Industries Ltd* OG 34,500 508,875
Grace (W R) & Co CH 5,500 432,094
Howmet International* AE 27,500 398,750
IRI International* OG 34,000 405,875
Ingersoll-Rand Co MY 12,700 504,825
Integrated Electrical Services* SV 24,000 354,000
Kennametal Inc MY 9,200 452,525
Northern States Power EU 6,900 370,012
Owens-Illinois Inc* CT 16,400 596,550
Parker-Hannifin Corp EL 12,300 537,356
Phillips Petroleum OG 5,900 259,600
Potlatch Corp PF 9,200 409,400
Southdown Inc BD 6,900 435,131
TransTechnology Corp MG 13,800 360,525
<PAGE>
Tyco International Ltd MG 9,200 $ 408,250
USX-Marathon Group OG 14,700 493,369
US WEST Communications Group TL 7,800 375,375
Williams Cos OG 13,800 393,300
------------
10,622,155
------------
TOTAL COMMON STOCKS
(Cost $12,631,058) 12,971,448
------------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 13.50%
UNITED STATES 13.50%
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/30/1998
due 2/2/1998 at 5.530%,
repurchased at $2,025,933
(Collateralized by US Treasury
Bills, Discount Notes
due 7/23/1998 value $2,067,000)
(Cost $2,025,000) RA 2,025,000 2,025,000
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $14,656,058)
(Cost for Income Tax Purposes
$14,657,828) $ 14,996,448
============
WORLDWIDE COMMUNICATIONS Fund
COMMON STOCKS 82.09%
ARGENTINA 2.27%
Telecom Argentina STET-France
Telecom SA Sponsored ADR
Representing Class B Shrs TN 40,600 $ 1,273,825
Telefonica de Argentina SA
Sponsored ADR Representing
10 Class B Ord Shrs TN 32,000 1,108,000
------------
2,381,825
------------
BERMUDA 0.98%
Iridium World Communications Ltd * TC 25,000 1,028,125
------------
<PAGE>
CANADA 4.00%
BCE Inc TN 44,000 $ 1,375,000
MetroNet Communications
Non-Voting Class B Shrs* TN 20,000 423,125
Newbridge Networks* TN 31,100 808,600
Northern Telecom Ltd TN 35,400 1,597,425
------------
4,204,150
------------
CHILE 0.49%
Cia de Telecomunicaciones de
Chile SA Sponsored ADR
Representing Series A Shrs TL 21,250 511,328
------------
FINLAND 1.22%
Nokia Corp Sponsored ADR
Representing Class A Shrs CM 16,900 1,284,400
------------
FRANCE 1.78%
France Telecom SA Sponsored
ADR Representing Ord Shrs* TL 44,200 1,872,975
------------
HONG KONG 0.40%
Asia Satellite Telecommunications
Holdings Ltd Sponsored ADR
Representing 10 Shrs TL 29,000 424,125
------------
IRELAND 0.91%
Saville Systems PLC Sponsored
ADR Representing Ord Shrs* CO 23,500 957,625
------------
ITALY 3.56%
Telecom Italia Mobile SpA* TN 450,000 2,147,373
Telecom Italia SpA TL 229,500 1,590,878
------------
3,738,251
------------
PORTUGAL 1.77%
Portugal Telecom SA Sponsored
ADR Representing Ord Shrs TL 36,600 1,862,025
------------
SPAIN 1.70%
Telefonica de Espana SA TN 27,000 883,190
Telefonica de Espana SA
Sponsored ADR Representing
<PAGE>
10 B Shrs TN 9,200 $ 898,150
------------
1,781,340
------------
SWEDEN 1.18%
Ericsson (L M) Telephone
Sponsored ADR Representing
Class B Shrs CM 32,000 1,236,000
------------
UNITED KINGDOM 3.79%
COLT Telecom Group PLC
Sponsored ADR Representing
4 Ord Shrs* TL 54,500 3,310,875
Esat Telecom Group PLC
Sponsored ADR Representing
2 Ord Shrs* TL 39,000 667,875
------------
3,978,750
------------
UNITED STATES 58.04%
AirTouch Communications* TC 20,000 877,500
America Online* CO 10,100 966,444
Ameritech Corp TN 41,400 1,777,612
Belden Inc EL 17,000 648,125
Bell Atlantic TN 19,555 1,810,060
BellSouth Corp TN 26,800 1,623,075
Brightpoint Inc* TC 62,000 1,042,375
Century Telephone Enterprises TN 38,900 2,051,975
CIENA Corp* CM 32,400 1,784,025
Cisco Systems* CO 17,750 1,119,359
Comverse Technology* CM 26,000 875,875
Concentric Network* CO 22,500 239,062
Digital Microwave* CM 47,500 958,906
FORE Systems* CO 40,000 590,000
ICG Communications* TL 85,000 2,093,125
IDT Corp* TL 40,000 1,010,000
Intel Corp ES 8,000 648,000
Intermedia Communications* TN 39,300 2,416,950
International Telecommunication
Data Systems* SV 30,500 1,075,125
LCI International* TL 54,000 1,549,125
Loral Space & Communications Ltd* EL 71,000 1,566,438
Lucent Technologies CM 17,500 1,548,750
MCI Communications TL 62,500 2,902,344
McLeodUSA Inc Class A* TL 52,400 1,804,525
<PAGE>
Motorola Inc CM 21,900 $ 1,301,681
NEXTEL Communications Class A* TC 108,400 2,960,675
NEXTLINK Communications Class A* TC 59,100 1,470,112
P-COM Inc* TL 56,800 1,107,600
Pacific Gateway Exchange* TL 18,000 970,313
PairGain Technologies* CM 59,300 1,089,637
QUALCOMM Inc* CM 15,000 778,125
Qwest Communications International* TL 18,000 1,275,750
RSL Communications Ltd Class A* TL 75,000 1,668,750
SBC Communications TN 28,500 2,215,875
Sprint Corp TL 34,700 2,060,312
Tel-Save Holdings* TL 45,000 1,068,750
Teleport Communications Group
Class A* TL 43,000 2,399,937
Teligent Inc Class A* TL 31,150 895,563
Tellabs Inc* CM 25,000 1,279,688
US WEST Communications Group TL 33,200 1,597,750
WinStar Communications* TL 35,000 1,144,063
WorldCom Inc* TL 75,000 2,685,938
------------
60,949,294
------------
TOTAL COMMON STOCKS
(Cost $68,621,315) 86,210,213
------------
PREFERRED STOCKS 1.06%
BRAZIL 1.06%
Telecomunicacoes Brasileiras
SA Sponsored ADR
Representing 1,000 Pfd
(Cost $1,132,475) TN 10,000 1,110,000
------------
SHORT-TERM INVESTMENTS --
REPURCHASE AGREEMENTS 16.85%
UNITED STATES 16.85%
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/30/1998 due 2/2/1998
at 5.530%, repurchased at
$17,706,156 (Collateralized by
US Treasury Bills, Discount Notes
due 7/23/1998 value $18,067,554)
(Cost $17,698,000) RA 17,698,000 17,698,000
------------
<PAGE>
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $87,451,790)
(Cost for Income Tax Purposes
$87,453,920) $105,018,213
============
S&P 500 INDEX Fund
COMMON STOCKS 58.51%
CANADA 0.52%
Alcan Aluminium Ltd MM 32 $942
Barrick Gold GP 152 2,945
Inco Ltd MM 23 408
Laidlaw Inc PC 46 656
Northern Telecom Ltd TN 274 12,364
Placer Dome GP 33 425
Seagram Co BV 150 5,119
------------
22,859
------------
NETHERLANDS 1.44%
Royal Dutch Petroleum
New York Registry 1.25
Gldr Shrs OG 899 46,074
Unilever NV New York Shrs FD 289 16,491
------------
62,565
------------
UNITED STATES 56.55%
AMP Inc EE 31 1,240
AMR Corp* AR 13 1,641
AT&T Corp TL 727 45,528
Abbott Laboratories HD 307 21,739
Adobe Systems CO 10 385
Advanced Micro Devices* CM 20 401
Aetna Inc IN 21 1,543
Ahmanson (H F) & Co SL 13 758
Air Products & Chemicals CH 15 1,201
AirTouch Communications* TC 170 7,459
Albertson's Inc RT 34 1,621
Allegheny Teledyne IS 24 591
AlliedSignal Inc MG 279 10,864
Allstate Corp IN 160 14,160
ALLTEL Corp TN 26 1,111
Aluminum Co of America AL 24 1,833
<PAGE>
ALZA Corp HD 12 $ 427
Amerada Hess OG 13 711
Ameren Corp* EU 14 513
American Electric Power EU 26 1,282
American Express CF 165 13,808
American General IN 34 1,917
American Greetings Class A PB 10 433
American Home Products HD 291 27,772
American International Group IN 298 32,873
American Stores RT 38 826
Ameritech Corp TN 452 19,408
Amgen Inc BI 37 1,850
Amoco Corp OG 168 13,671
Andrew Corp* CM 13 357
Anheuser-Busch Cos BV 168 7,549
Aon Corp IN 23 1,284
Apache Corp OG 13 431
Apple Computer* CO 18 330
Applied Materials* ES 151 4,955
Archer-Daniels-Midland Co FD 278 5,855
Armco Inc* IS 15 70
Atlantic Richfield OG 45 3,347
Automatic Data Processing CO 41 2,452
AutoZone Inc* RT 21 576
Avery Dennison OE 14 628
Avon Products PL 18 1,080
BB&T Corp BK 19 1,120
Baker Hughes OG 24 925
Baltimore Gas & Electric EU 21 638
Banc One BK 282 15,757
Bank of New York BK 153 8,291
BankAmerica Corp BK 297 21,106
BankBoston Corp BK 20 1,790
Bankers Trust New York BK 14 1,460
Battle Mountain Gold GP 32 180
Baxter International HC 39 2,172
Bay Networks* CO 30 816
Becton Dickinson & Co HC 17 1,073
Bell Atlantic TN 308 28,509
BellSouth Corp TN 438 26,526
Beneficial Corp CF 14 1,087
BestFoods Inc FD 20 1,950
Bethlehem Steel* IS 16 158
Biomet Inc HC 16 458
Black & Decker HP 13 626
<PAGE>
Block (H & R) Inc SV 15 $ 658
Boeing Co AE 440 20,927
Boston Scientific* HC 27 1,370
Bristol-Myers Squibb HD 439 43,763
Browning-Ferris Industries PC 28 968
Brunswick Corp LT 14 422
Burlington Northern Santa Fe RR 22 1,908
Burlington Resources OG 25 1,069
CBS Corp BR 98 2,934
CSX Corp RR 30 1,590
CVS Corp RT 24 1,573
Cabletron Systems* CO 22 318
Campbell Soup FD 164 8,774
Cardinal Health HD 15 1,162
Carolina Power & Light EU 21 853
Case Corp MY 20 1,166
Caterpillar Inc MY 152 7,296
Cendant Corp* SV 310 10,501
Central & South West EU 30 812
Ceridian Corp* CO 11 498
Champion International PF 13 665
Charming Shoppes* RT 15 61
Chase Manhattan BK 159 17,043
Chevron Corp OG 292 21,845
Chrysler Corp AM 293 10,200
Chubb Corp IN 24 1,822
CIGNA Corp IN 10 1,696
Cincinnati Financial IN 15 1,912
CINergy Corp EU 22 759
Circuit City Stores-Circuit City
Group RT 14 478
Cisco Systems* CO 441 27,811
Citicorp BK 164 19,516
Clear Channel Communications* BR 14 1,078
Clorox Co HP 14 1,073
Coastal Corp NG 15 870
Coca-Cola Co BV 1,045 67,664
Cognizant Corp SV 23 1,044
Colgate-Palmolive Co HP 41 3,003
Columbia/HCA Healthcare HC 290 7,250
Comcast Corp Class A CA 149 4,666
Comerica Inc BK 15 1,416
Compaq Computer CO 612 18,398
Computer Associates International CO 276 14,680
Computer Sciences* CO 11 934
<PAGE>
ConAgra Inc FD 166 $ 5,250
Conseco Inc IN 26 1,189
Consolidated Edison EU 33 1,363
Consolidated Natural Gas NG 13 706
Consolidated Stores* RT 29 1,193
Cooper Industries MY 17 902
Cooper Tire & Rubber AP 11 265
CoreStates Financial BK 28 2,142
Corn Products International* FD 5 160
Corning Inc MG 32 1,088
Cort Business Services SV 200 7,687
Costco Cos* RT 30 1,301
Countrywide Credit Industries CF 15 699
Crown Cork & Seal CT 18 891
Cyprus Amax Minerals MM 13 205
DSC Communications* CM 16 320
DTE Energy EU 20 717
Dana Corp AP 15 752
Darden Restaurants RS 21 265
Dayton Hudson RT 30 2,158
Deere & Co MY 35 1,846
Dell Computer* CO 46 4,574
Delta Air Lines AR 10 1,141
Deluxe Corp SP 11 363
Digital Equipment* CO 21 1,188
Dillard's Inc Class A RT 15 527
Disney (Walt) Co ET 294 31,329
Dominion Resources EU 26 1,037
Donnelley (R R) & Sons PB 20 746
Dover Corp MY 31 1,056
Dow Chemical CH 32 2,880
Dow Jones PB 13 653
Dresser Industries OG 24 858
du Pont (E I) de Nemours & Co CH 458 25,934
Duke Energy EU 150 8,128
Dun & Bradstreet SV 24 765
EMC Corp* CO 169 5,503
Eastman Chemical CH 11 655
Eastman Kodak PI 45 2,936
Eaton Corp MG 11 987
Edison International EU 153 4,112
Emerson Electric EE 162 9,801
Englehard Corp CH 20 335
Enron Corp OG 44 1,823
Entergy Corp EU 34 973
<PAGE>
Equifax Inc SV 21 $ 690
Exxon Corp OG 1,044 61,922
FDX Corp TR 16 1,041
FPL Group EU 25 1,434
Freddie Mac FN 297 13,216
Fannie Mae FN 448 27,664
Federated Department Stores* RT 29 1,229
Fifth Third Bancorp BK 22 1,677
First Chicago NBD BK 41 3,060
First Data CO 160 4,900
First Union BK 288 13,842
FirstEnergy Corp EU 32 928
Fleet Financial Group BK 35 2,507
Fluor Corp EC 12 452
Ford Motor AM 568 28,968
Fort James PF 29 1,245
Fortune Brands TO 24 918
Freeport McMoRan Copper &
Gold Class B GP 27 397
Frontier Corp TN 23 599
Fruit of The Loom Class A* TA 10 240
GPU Inc EU 17 668
GTE Corp TN 434 23,680
Gannett Co PB 40 2,420
Gap Inc RT 137 5,352
General Dynamics AE 17 1,466
General Electric EE 1,457 112,917
General Mills FD 22 1,638
General Motors AM 299 17,323
General Re IN 11 2,289
Genuine Parts AP 25 830
Georgia-Pacific Corp PF 13 717
Gillette Co PL 278 27,452
Golden West Financial SL 15 1,267
Goodrich (B F) Co CH 10 419
Goodyear Tire & Rubber AP 22 1,378
Grace (W R) & Co CH 20 1,571
Grainger (W W) Inc EE 13 1,251
Green Tree Financial FN 19 376
Guidant Corp HC 21 1,349
HBO & Co HC 28 1,465
Halliburton Co OG 37 1,663
Harcourt General PB 10 533
Harrah's Entertainment* LH 14 308
Harris Corp CM 11 524
<PAGE>
Hartford Financial Services Group IN 16 $ 1,440
Hasbro Inc TY 18 621
HEALTHSOUTH Corp* HC 155 3,478
Heinz (H J) Co FD 151 8,371
Hercules Inc GP 13 613
Hershey Foods FD 20 1,274
Hewlett-Packard Co CO 445 26,700
Hilton Hotels LH 35 991
Home Depot RT 302 18,214
Homestake Mining GP 20 190
Honeywell Inc EE 18 1,261
Household International CF 15 1,867
Houston Industries EU 40 1,045
Humana Inc* HC 23 461
Huntington Bancshares BK 27 911
ITT Corp* LH 16 1,280
ITT Industries AP 17 527
Ikon Office Solutions OE 19 598
Illinois Tool Works MG 35 1,949
Ingersoll-Rand Co MY 23 914
Intel Corp ES 728 58,968
International Business Machines CO 436 43,028
International Flavors & Fragrances PL 15 632
International Paper CT 42 1,919
Interpublic Group SV 18 883
Jefferson-Pilot Corp IN 10 817
Johnson & Johnson HD 588 39,359
Johnson Controls AP 12 608
K mart Corp* RT 168 1,848
KLA-Tencor Corp* ES 12 450
Kellogg Co FD 157 7,251
KeyCorp BK 31 2,015
Kimberly-Clark Corp PF 276 14,404
Knight-Ridder Inc PB 12 661
Kroger Co* RT 36 1,408
LSI Logic* ES 20 480
Lehman Brothers Holdings IV 100 5,431
Lilly (Eli) & Co HD 455 30,712
Limited Inc RT 38 1,007
Lincoln National IN 14 1,060
Lockheed Martin AE 27 2,810
Loews Corp IN 16 1,596
Louisiana-Pacific Corp PF 15 301
Lowe's Cos BD 24 1,214
Lucent Technologies CM 290 25,665
<PAGE>
MBIA Inc FN 12 $ 777
MBNA Corp FN 170 5,281
MCI Communications TL 297 13,792
MGIC Investment FN 16 1,082
Mallinckrodt Inc HC 10 354
Marriott International LH 18 1,244
Marsh & McLennan IB 24 1,773
Masco Corp BD 23 1,133
Mattel Inc TY 41 1,661
May Department Stores RT 32 1,682
Maytag Corp HF 13 500
McDonald's Corp RS 296 13,949
McGraw-Hill Cos PB 14 977
Mead Corp PF 15 488
Medtronic Inc HC 166 8,476
Mellon Bank BK 36 2,174
Merck & Co HD 567 66,481
Merrill Lynch IV 47 2,967
Micron Technology* ES 30 1,039
Microsoft Corp* CO 569 84,888
Minnesota Mining & Manufacturing MG 157 13,110
Mirage Resorts* GM 25 577
Mobil Corp OG 310 21,119
Monsanto Co HD 283 13,425
Moore Corp Ltd OE 12 180
Morgan (J P) & Co BK 25 2,530
Morgan Stanley Dean Witter
Discover & Co IV 283 16,520
Morton International CH 19 627
Motorola Inc CM 283 16,821
National City BK 30 1,806
National Semiconductor* ES 23 647
NationsBank Corp BK 431 25,864
New York Times Class A PB 13 846
Newell Co HP 22 903
Newmont Mining GP 22 627
Nextlevel Systems* TL 21 365
Niagara Mohawk Power* EU 20 216
NIKE Inc Class B FT 41 1,643
Norfolk Southern RR 153 4,829
Northrop Grumman AE 18 2,207
Norwest Corp BK 305 11,133
Novell Inc* CO 49 346
Nucor Corp IS 12 572
Occidental Petroleum OG 147 3,749
<PAGE>
Omnicom Group SV 43 $ 1,744
Oracle Systems* CO 437 10,160
Oryx Energy* OG 15 360
Owens-Illinois Inc* CT 20 728
PG&E Corp EU 161 4,800
PNC Bank BK 43 2,217
PP&L Resources EU 23 503
PPG Industries CH 25 1,434
Pacific Enterprises NG 12 433
PacifiCorp EU 41 951
Pall Corp MG 18 359
Parametric Technology* CO 18 914
Parker-Hannifin Corp EL 16 699
PECO Energy EU 31 587
Penney (J C) Co RT 35 2,358
PepsiCo Inc BV 612 22,070
Pfizer Inc HD 581 47,606
Pharmacia & Upjohn HD 171 6,573
Philip Morris TO 1,039 43,119
Phillips Petroleum OG 37 1,628
Pioneer Hi-Bred International FD 18 1,801
Pitney-Bowes Inc OE 40 1,835
Praxair Inc CH 22 912
Procter & Gamble HP 588 46,085
Progressive Corp IN 19 2,078
Providian Financial BK 13 635
Public Service Enterprise Group EU 32 992
Quaker Oats FD 19 1,021
Ralston-Purina Group FD 15 1,408
Raychem Corp MG 12 448
Raytheon Co Class B AE 147 7,662
Republic New York BK 15 1,633
Rite Aid RT 17 1,061
Rockwell International ES 29 1,620
Rohm & Haas CH 16 1,372
Rowan Cos* OG 12 317
Rubbermaid Inc HF 21 543
SBC Communications TN 428 33,277
SAFECO Corp IN 20 999
St Jude Medical* HC 13 423
St Paul Cos IN 12 1,044
Sara Lee FD 167 9,112
Schering-Plough Corp HD 302 21,857
Schlumberger Ltd OG 169 12,453
Schwab (Charles) Corp IV 37 1,351
<PAGE>
Scientific-Atlanta Inc CM 11 $ 171
Seagate Technology* CO 34 788
Sears Roebuck RT 155 7,140
Service Corp International SV 35 1,365
Sherwin-Williams Co BD 24 684
Sigma-Aldrich Corp CH 14 543
Silicon Graphics* CO 26 403
Sonat Inc OG 12 524
Southern Co EU 296 7,197
Southwest Airlines AR 31 808
Sprint Corp TL 160 9,500
Stanley Works HT 12 531
State Street Bank BK 22 1,232
Stone Container* CT 14 179
Sun Microsystems* CO 152 7,287
SunAmerica Inc IN 27 1,085
SunTrust Banks BK 29 2,008
Synovus Financial BK 24 791
Sysco Corp FD 24 1,074
TJX Cos RT 23 779
TRW Inc AE 17 865
Tandy Corp RT 14 543
Tele-Communications Series A* CA 171 4,788
Tellabs Inc* CM 25 1,280
Tenet Healthcare* HC 43 1,484
Tenneco Inc CG 24 974
Texaco Inc OG 277 14,421
Texas Instruments ES 155 8,467
Texas Utilities EU 34 1,398
Textron Inc CG 23 1,376
Thermo Electron* MG 21 819
3Com Corp* CO 148 4,893
Time Warner ET 278 17,844
Times Mirror Series A PB 13 749
Torchmark Corp IN 20 831
Toys "R" Us* RT 40 1,073
Transamerica Corp IN 17 1,747
Travelers Group IN 460 22,770
Tribune Co PB 17 1,033
Tricon Global Restaurants* RS 21 572
Tyco International Ltd MG 274 12,159
USF&G Corp IN 16 381
UST Inc TO 26 897
USX-Marathon Group OG 40 1,343
USX-US Steel Group IS 12 401
<PAGE>
Unicom Corp EU 30 $ 930
Union Carbide CH 17 745
Union Pacific RR 35 2,100
Union Pacific Resources Group OG 35 783
Unisys Corp* CO 25 413
United Healthcare HC 26 1,333
US Airways Group* AR 13 792
US Bancorp BK 34 3,723
United Technologies AE 33 2,694
Unocal Corp OG 34 1,169
UNUM Corp IN 19 924
US WEST Communications Group TL 167 8,037
US WEST Media Group* TL 285 8,461
VF Corp TA 17 727
Viacom Inc Class B* ET 149 6,221
Wachovia Corp BK 29 2,255
Wal-Mart Stores RT 1,015 40,473
Walgreen Co RT 169 5,598
Warner-Lambert Co HD 38 5,719
Washington Mutual SL 36 2,313
Waste Management PC 164 3,854
Wells Fargo & Co BK 12 3,708
Wendy's International RS 18 402
Westvaco Corp PF 14 454
Weyerhaeuser Co PF 28 1,395
Willamette Industries PF 16 536
Williams Cos OG 44 1,254
Winn-Dixie Stores RT 21 1,024
Woolworth Corp* RT 19 413
WorldCom Inc* TL 426 15,256
Worthington Industries IS 14 235
Wrigley (Wm) Jr FD 16 1,183
Xerox Corp OE 46 3,697
------------
2,466,568
------------
TOTAL COMMON STOCKS
(Cost $2,514,540) 2,551,992
------------
SHORT-TERM INVESTMENTS 41.49%
UNITED STATES 2.26%
US Treasury Bills, 4/30/1998>>
(Cost $98,788) GO $100,000 $ 98,780
------------
UNITED STATES 39.23%
<PAGE>
Repurchase Agreement with
State Street Bank & Trust Co
dated 1/30/1998 due 2/2/1998 at 5.530%,
repurchased at $1,711,788
(Collateralized by US Treasury Bills,
Discount Notes due 7/23/1998 value $1,745,250)
(Cost $1,711,000) RA 1,711,000 1,711,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,809,788) 1,809,780
------------
TOTAL INVESTMENT
SECURITIES AT VALUE 100.00%
(Cost $4,324,328#) $ 4,361,772
============
</TABLE>
* Security is non-income producing.
^ Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale to institutional investors.
@ Security has no market value at January 31, 1998.
+ Security has been designated as collateral for margin account on futures
contracts.
> Security has been designated as collateral for futures contracts.
# Also represents cost for income.
~ The following are restricted securities at January 31, 1998:
<TABLE>
<CAPTION>
Value as
Acquisition Acquisition % of
Description Date(s) Cost Net Assets
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asian Growth Fund
Benpres Holdings
Sponsored GDR
Representing 20 1/6/97-
Regulation S Shrs 6/4/97 $ 183,565 0.42%
Mahanagar
Telephone Nigam
<PAGE>
Ltd Sponsored
GDR Representing 12/3/97-
2 Regulation S Shrs 12/19/97 321,450 2.78
State Bank of India
GDR Representing
2 Regulation S Shrs 7/22/97 408,000 1.74
-------
4.94%
=======
Latin American Growth Fund
Cia Brasileira de
Distribuicao Grupo
Pao de Acucar
Sponsored ADR
Representing 1,000
Regulation S 6/3/97-
Pfd Shrs 7/9/97 $ 883,459 1.11%
Consorcio ARA SA
de CV Regulation S
Sponsored ADR
Representing 1/7/97-
10 Shrs 10/17/97 582,150 0.94
Ferreyros SA
Regulation S
Sponsored ADR
Respresenting 20 4/9/97-
Ord Shrs 5/27/97 457,442 0.81
Grupo Accion SA de
CV Regulation S
Sponsored ADR
Representing 10
Series B Shrs 6/19/97 720,000 0.67
Rossi Residencial SA
GDR Regulation S
Representing 5
Ord Shrs 7/15/97 890,400 0.33
-------
3.86%
=======
</TABLE>
<PAGE>
Futures Contracts
Open at January 31, 1998:
<TABLE>
<CAPTION>
Number of Market Unrealized
Position Contracts Value Gain
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
S & P 500 Index Fund
S&P 500 Index
(Expires March 1998) Long 2 $ 1,300 $ 1,282
</TABLE>
<TABLE>
<CAPTION>
Summary of Investments by Industry
% of
Industry Investment
Industry Code Securities Value
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Agricultural Products AG 0.29% $ 36,593
Air Freight AF 0.68 84,408
Airlines AR 1.15 143,506
Banks BK 13.60 1,694,901
Broadcasting BR 0.63 79,065
Building Materials BD 0.49 61,425
Chemicals CH 0.36 44,357
Communications-- Equipment
& Manufacturing CM 0.09 10,760
Conglomerates CG 9.26 1,154,426
Distribution DB 4.98 621,184
Electric Utilities EU 6.24 778,098
Electronics EL 1.15 143,972
Engineering & Construction EC 1.72 214,199
Financial FN 2.90 361,760
Gaming GM 1.75 217,933
Gold & Precious Metals Mining GP 1.56 194,196
Health Care Drugs --
Pharmaceuticals HD 1.41 176,250
Health Care Related HC 0.76 95,032
Machinery MY 0.81 100,787
Manufacturing MG 1.88 234,043
Real Estate Investment Trust RE 13.93 1,737,080
Repurchase Agreements RA 18.94 2,361,000
<PAGE>
Telecommunications --
Cellular & Wireless TC 0.12 14,536
Telecommunications--
Long Distance TL 14.81 1,845,727
Telephone TN 0.49 61,428
--------------------------
100.00% $ 12,466,666
==========================
European Small Company Fund
Air Freight AF 2.33% $ 1,041,953
Airlines AR 2.12 946,627
Auto Parts AP 0.78 347,485
Automobiles AM 0.99 442,322
Banks BK 1.17 521,336
Biotechnology BI 3.51 1,567,612
Building Materials BD 1.79 798,112
Cable CA 1.11 497,040
Communications-- Equipment
& Manufacturing CM 2.72 1,214,361
Computer Related CO 13.19 5,893,809
Conglomerates CG 1.35 603,531
Consumer -- Jewelry,
Novelties & Gifts CJ 1.51 676,566
Electronics EL 3.85 1,721,150
Electronics-- Semiconductor ES 0.93 414,813
Engineering & Construction EC 3.12 1,394,327
Financial FN 1.70 758,640
Gold & Precious Metals Mining GP 0.55 247,702
Health Care Drugs --
Pharmaceuticals HD 4.37 1,953,180
Health Care Related HC 5.46 2,437,424
Homebuilding HB 0.42 189,660
Household Furniture & Appliances HF 2.16 964,932
Household Products HP 0.92 413,246
Housewares HW 0.49 217,782
Insurance IN 1.68 751,013
Investment Bank/Broker Firm IV 0.85 378,273
Leisure Time LT 1.44 643,455
Lodging-- Hotels LH 3.50 1,561,733
Machinery MY 4.48 2,001,675
Manufacturing MG 4.13 1,846,204
Office Equipment & Supplies OE 0.80 359,177
Photography & Imaging PI 1.54 688,596
Pollution Control PC 1.35 604,322
Publishing PB 0.69 309,015
Real Estate Investment Trust RE 2.25 1,003,063
Restaurants RS 4.41 1,970,277
Retail RT 1.45 646,236
Services SV 7.68 3,431,222
Telecommunications --
Long Distance TL 0.76 340,505
<PAGE>
Telephone TN 0.44 194,156
Textile-- Apparel Manufacturing TA 4.25 1,896,517
Toys TY 1.76 786,669
--------------------------
100.00% $ 44,675,718
==========================
Latin American Growth Fund
Agricultural Products AG 0.94% $ 578,019
Aluminum AL 0.95 586,751
Banks BK 6.12 3,767,020
Beverages BV 6.00 3,690,455
Broadcasting BR 1.55 952,482
Building Materials BD 3.09 1,904,256
Chemicals CH 4.26 2,620,613
Conglomerates CG 4.92 3,030,172
Electric Utilities EU 15.41 9,481,258
Engineering & Construction EC 0.69 425,529
Financial FN 0.81 498,750
Foods FD 1.40 858,842
Gold & Precious Metals Mining GP 1.06 649,468
Homebuilding HB 4.36 2,684,004
Iron & Steel IS 3.71 2,280,355
Machinery MY 3.17 1,952,695
Oil & Gas Related OG 5.73 3,525,897
Real Estate Investment Trust RE 2.08 1,277,500
Retail RT 14.00 8,616,909
Telecommunications-- Long Distance TL 6.04 3,717,309
Telephone TN 11.57 7,115,750
Textile-- Apparel Manufacturing TA 2.14 1,313,771
--------------------------
100.00% $ 61,527,805
==========================
Realty Fund
Financial FN 3.41% $ 1,332,157
Leisure Time LT 1.42 552,500
Lodging-- Hotels LH 1.67 653,534
Real Estate Investment Trust RE 80.33 31,368,635
Real Estate Related RL 2.62 1,024,481
Repurchase Agreements RA 10.55 4,119,000
--------------------------
100.00% $ 39,050,307
==========================
Worldwide Capital Goods Fund
Aerospace & Defense AE 4.76% $ 714,332
Auto Parts AP 5.92 886,937
Automobiles AM 3.06 458,275
Building Materials BD 3.86 579,280
Chemicals CH 2.88 432,094
Conglomerates CG 2.45 367,505
Containers CT 3.98 596,550
Electric Utilities EU 5.41 811,325
Electrical Equipment EE 3.36 503,750
<PAGE>
Electronics EL 3.58 537,356
Machinery MY 10.36 1,552,700
Manufacturing MG 8.89 1,333,712
Natural Gas NG 2.67 400,200
Oil & Gas Related OG 15.60 2,339,788
Paper & Forest Products PF 2.73 409,400
Repurchase Agreements RA 13.50 2,025,000
Services SV 2.36 354,000
Telecommunications --
Long Distance TL 4.63 694,244
--------------------------
100.00% $ 14,996,448
==========================
Worldwide Communications Fund
Communications -- Equipment
& Manufacturing CM 11.56% $ 12,137,087
Computer Related CO 3.69 3,872,490
Electronics EL 2.11 2,214,563
Electronics-- Semiconductor ES 0.62 648,000
Repurchase Agreements RA 16.85 17,698,000
Services SV 1.02 1,075,125
Telecommunications --
Cellular & Wireless TC 7.03 7,378,787
Telecommunications--
Long Distance TL 34.73 36,473,926
Telephone TN 22.39 23,520,235
--------------------------
100.00% $105,018,213
==========================
S & P 500 Index Fund
Aerospace & Defense AE 0.89% $ 38,631
Airlines AR 0.10 4,382
Aluminum AL 0.04 1,833
Auto Parts AP 0.10 4,360
Automobiles AM 1.30 56,491
Banks BK 4.02 175,362
Beverages BV 2.35 102,402
Biotechnology BI 0.04 1,850
Broadcasting BR 0.09 4,012
Building Materials BD 0.07 3,031
Cable CA 0.22 9,454
Chemicals CH 0.89 38,628
Computer Related CO 6.02 262,607
<PAGE>
Communications -- Equipment
& Manfacturing CM 1.04 45,539
Conglomerates CG 0.05 2,350
Consumer Finance CF 0.40 17,461
Containers CT 0.09 3,717
Electric Utilities EU 0.98 42,836
Electrical Equipment EE 2.90 126,470
Electronics EL 0.02 699
Electronics-- Semiconductor ES 1.76 76,626
Engineering & Construction EC 0.01 452
Entertainment ET 1.27 55,394
Financial FN 1.11 48,396
Foods FD 1.66 72,613
Footwear FT 0.04 1,643
Gaming GM 0.01 577
Gold & Precious Metals Mining GP 0.12 5,377
Hardware & Tools HT 0.01 531
Health Care Drugs --
Pharmaceuticals HD 7.49 326,595
Health Care Related HC 0.71 31,146
Household Furniture &
Appliances HF 0.02 1,043
Household Products HP 1.19 51,690
Insurance IN 2.23 97,457
Insurance Brokers IB 0.04 1,773
Investment Bank/Broker Firm IV 0.60 26,269
Iron & Steel IS 0.05 2,027
Leisure Time LT 0.01 422
Lodging-- Hotels LH 0.09 3,823
Machinery MY 0.30 13,180
Manufacturing MG 0.96 41,783
Metals Mining MM 0.04 1,555
Natural Gas NG 0.05 2,009
Office Equipment & Supplies OE 0.16 6,938
Oil & Gas Related OG 4.89 213,459
Paper & Forest Products PF 0.46 20,205
Personal Care PL 0.67 29,164
Photography & Imaging PI 0.07 2,936
Pollution Control PC 0.13 5,478
Publishing PB 0.21 9,051
Railroads RR 0.24 10,427
Repurchase Agreements RA 39.22 1,711,000
Restaurants RS 0.35 15,188
Retail RT 2.33 101,516
Savings & Loan SL 0.10 4,338
<PAGE>
Services SV 0.58 25,337
Specialty Printing SP 0.01 363
Telecommunications --
Cellular & Wireless TC 0.17 7,459
Telecommunications--
Long Distance TL 2.31 100,939
Telephone TN 3.34 145,474
Textile-- Apparel
Manufacturing TA 0.02 967
Tobacco TO 1.03 44,934
Toys TY 0.05 2,282
Transportation TR 0.02 1,041
US Government Obligations GO 2.26 98,780
--------------------------
100.00% $ 4,361,772
==========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Assets and Liabilities
January 31, 1998
UNAUDITED
<TABLE>
<CAPTION>
Asian European Latin American
Growth Small Company Growth
Fund Fund Fund
-------------------------------------------------
<S> <C> <C> <C>
Investment Securities:
At Cost~ $ 19,345,388 $ 45,206,836 $ 69,756,462
=================================================
At Value~ $ 12,466,666 $ 44,675,718 $ 61,527,805
Cash 1,129 1,105,629 1,084,909
Foreign Currency
(Cost $23,596, $0 and $0,
respectively) 24,958 0 0
Receivables:
Investment Securities Sold 205,346 1,404,137 1,567,954
Fund Shares Sold 837,426 107,029 60,622
Dividends and Interest 4,533 99,533 41,356
Appreciation on Forward
Foreign Currency Contracts 0 0 266
Prepaid Expenses and
Other Assets 87,120 61,926 39,710
-------------------------------------------------
TOTAL ASSETS 13,627,178 47,453,972 64,322,622
-------------------------------------------------
LIABILITIES
Payables:
Foreign Sub-Custodian
(Cost $0, $202,199 and
$292,229, respectively) 0 202,200 292,535
Distributions to Shareholders 0 0 54
Investment Securities Purchased 0 1,056,939 0
Fund Shares Repurchased 35,535 645,139 525,910
Depreciation on Forward Foreign
Currency Contracts 238 724 0
Accrued Distribution Expenses 2,354 9,766 14,388
Accrued Expenses and Other
Payables 25,545 34,932 51,529
-------------------------------------------------
TOTAL LIABILITIES 63,672 1,949,700 884,416
-------------------------------------------------
Net Assets at Value $ 13,563,506 $ 45,504,272 $ 63,438,206
=================================================
<PAGE>
NET ASSETS
Paid-in Capital* $ 25,939,710 $ 45,261,721 $ 75,335,727
Accumulated Undistributed
Net Investment Income (Loss) 19,419 (302,463) (405,663)
Accumulated Undistributed Net
Realized Gain (Loss) on
Investment Securities and
Foreign Currency Transactions (5,516,538) 1,081,965 (3,262,633)
Net Depreciation of Investment
Securities and Foreign
Currency Transactions (6,879,085) (536,951) (8,229,225)
-------------------------------------------------
Net Assets at Value $ 13,563,506 $ 45,504,272 $ 63,438,206
=================================================
Shares Outstanding 3,159,433 3,737,621 5,348,336
Net Asset Value, Offering and
Redemption Price per Share $4.29 $12.17 $11.86
=================================================
~ Investment securities at cost and value at January 31, 1998 include a
repurchase agreement of $2,361,000 for Asian Growth Fund.
* The Fund has 800 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 and/or class.
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Assets and Liabilities (Continued)
January 31, 1998
UNAUDITED
<TABLE>
<CAPTION>
Worldwide Worldwide
Realty Capital Goods Communications
Fund Fund Fund
-------------------------------------------------
<S> <C> <C> <C>
Investment Securities:
At Cost~ $ 39,065,623 $ 14,656,058 $ 87,451,790
=================================================
At Value~ $ 39,050,307 $ 14,996,448 $ 105,018,213
Cash 5,523 0 269
Foreign Currency (Cost $4,791,
$0 and $781, respectively) 4,849 0 781
Receivables:
Investment Securities Sold 1,526,458 0 34,151
Fund Shares Sold 994,753 6,700 5,898,318
Dividends and Interest 133,872 8,045 85,430
Prepaid Expenses and
Other Assets 157,183 16,440 18,548
-------------------------------------------------
TOTAL ASSETS 41,872,945 15,027,633 111,055,710
-------------------------------------------------
LIABILITIES
Payables:
Custodian 0 32,784 0
Distributions to Shareholders 11,548 0 0
Investment Securities Purchased 587,025 0 4,185,487
Fund Shares Repurchased 1,225,295 37,119 1,676,219
Accrued Distribution Expenses 8,627 3,190 18,393
Accrued Expenses and
Other Payables 13,535 22,288 27,389
-------------------------------------------------
TOTAL LIABILITIES 1,846,030 95,381 5,907,488
-------------------------------------------------
Net Assets at Value $ 40,026,915 $ 14,932,252 $ 105,148,222
=================================================
NET ASSETS
Paid-in Capital* $ 38,931,305 $ 14,737,561 $ 85,819,732
Accumulated Undistributed
Net Investment Income (Loss) 4,957 18,730 (190,364)
Accumulated Undistributed Net
Realized Gain (Loss) on
<PAGE>
Investment Securities and
Foreign Currency Transactions 1,103,435 (164,429) 1,952,637
Net Appreciation (Depreciation)
of Investment Securities and
Foreign Currency Transactions (12,782) 340,390 17,566,217
-------------------------------------------------
Net Assets at Value $ 40,026,915 $ 14,932,252 $ 105,148,222
=================================================
Shares Outstanding 3,800,653 1,378,221 6,529,042
Net Asset Value, Offering and
Redemption Price per Share $10.53 $10.83 $16.10
=================================================
</TABLE>
~ Investment securities at cost and value at January 31, 1998 include
repurchase agreements of $4,119,000, $2,025,000 and $17,698,000 for Realty,
Worldwide Capital Goods and Worldwide Communications Funds, respectively.
* The Fund has 800 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 and/or class.
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Assets and Liabilities (Continued)
January 31, 1998
UNAUDITED
S & P
500 Index
Fund
-------------
ASSETS
Investment Securities:
At Cost~ $ 4,324,328
=============
At Value~ $ 4,361,772
Cash 153,139
Receivables:
Investment Securities Sold 347
Fund Shares Sold 1,816,379
Dividends and Interest 1,636
Variation Margin on Futures Contracts 1,994
Prepaid Expenses and Other Assets 14,621
-------------
TOTAL ASSETS 6,349,888
-------------
LIABILITIES
Payables:
Investment Securities Purchased 1,502,213
Fund Shares Repurchased 1,786,379
Accrued Distribution Expenses - Class II 94
Accrued Expenses and Other Payables 13,186
-------------
TOTAL LIABILITIES 3,301,872
-------------
Net Assets At Value $ 3,048,016
=============
NET ASSETS
Paid-in Capital* $ 3,002,856
Accumulated Undistributed Net
Investment Income 3,862
Accumulated Undistributed Net Realized
Gain on Investment Securities,
Foreign Currency Transactions and
Futures Contracts 2,572
Net Appreciation of Investment Securities,
Foreign Currency Transactions
and Futures Contracts 38,726
-------------
<PAGE>
Net Assets At Value, Applicable to
Shares Outstanding $ 3,048,016
=============
Net Assets At Value:
Class I $ 2,292,119
=============
Class II $ 755,897
=============
Shares Outstanding
Class I 219,424
Class II 71,784
Net Asset Value, Offering and Redemption
Price per Share
Class I $10.45
=============
Class II $10.53
=============
~ Investment securities at cost and value at January 31, 1998 include a
repurchase agreement of $1,711,000.
* The Fund has 800 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 and/or class.
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Operations
Six Months Ended January 31, 1998
UNAUDITED
<TABLE>
<CAPTION>
Asian European Latin American
Growth Small Company Growth
Fund Fund Fund
------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends $ 146,807 $ 318,397 $ 564,890
Interest 59,448 36,329 41,382
Foreign Taxes Withheld (10,875) (47,741) (48,980)
-------------------------------------------------
TOTAL INCOME 195,380 306,985 557,292
-------------------------------------------------
EXPENSES
Investment Advisory Fees 66,366 227,938 364,132
Distribution Expenses 22,122 75,979 121,377
Transfer Agent Fees 75,498 197,264 166,281
Administrative Fees 6,327 9,559 12,283
Custodian Fees and Expenses 28,979 46,054 132,470
Directors' Fees and Expenses 5,271 7,576 8,028
Professional Fees and Expenses 12,847 14,715 16,198
Registration Fees and Expenses 21,125 48,937 31,005
Reports to Shareholders 5,424 11,967 13,599
Other Expenses 2,925 7,502 10,121
-------------------------------------------------
TOTAL EXPENSES 246,884 647,491 875,494
Fees and Expenses Absorbed
by Investment Adviser (64,450) (32,204) 0
Fees and Expenses Paid
Indirectly (6,611) (12,155) (34,136)
-------------------------------------------------
NET EXPENSES 175,823 603,132 841,358
-------------------------------------------------
NET INVESTMENT INCOME (LOSS) 19,557 (296,147) (284,066)
-------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT
SECURITIES
Net Realized Gain (Loss) on
Investment Securities
and Foreign Currency
Transactions (5,397,358) 3,931,200 (425,678)
<PAGE>
Change in Net Depreciation
of Investment Securities
and Foreign Currency
Transactions (7,764,633) (5,464,846) (29,035,755)
-------------------------------------------------
NET LOSS ON INVESTMENT
SECURITIES (13,161,991) (1,533,646) (29,461,433)
-------------------------------------------------
Net Decrease in Net Assets
from Operations $(13,142,434) $(1,829,793) $(29,745,499)
=================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Operations (Continued)
Six Months Ended January 31, 1998
UNAUDITED
<TABLE>
<CAPTION>
Worldwide Worldwide
Realty Capital Goods Communications
Fund Fund Fund
-------------------------------------------------
<S> <C> <C> <C>
INCOME
Dividends $ 1,036,355 $ 147,605 $ 254,480
Interest 84,913 57,698 215,122
Foreign Taxes Withheld (3,842) (3,355) (8,290)
-------------------------------------------------
TOTAL INCOME 1,117,426 201,948 461,312
-------------------------------------------------
EXPENSES
Investment Advisory Fees 154,068 68,586 257,647
Distribution Expenses 51,356 26,379 99,095
Transfer Agent Fees 100,253 39,309 154,380
Administrative Fees 8,081 6,583 10,946
Custodian Fees and Expenses 6,480 6,564 11,034
Directors' Fees and Expenses 5,724 5,193 6,869
Professional Fees and Expenses 923 12,611 15,065
Registration Fees and Expenses 33,653 14,829 21,825
Reports to Shareholders 11,471 4,407 11,478
Other Expenses 788 1,632 5,296
-------------------------------------------------
TOTAL EXPENSES 372,797 186,093 593,635
Fees and Expenses Absorbed
by Investment Adviser (124,846) 0 0
Fees and Expenses Paid
Indirectly (1,090) (2,037) (3,712)
-------------------------------------------------
NET EXPENSES 246,861 184,056 589,923
-------------------------------------------------
NET INVESTMENT INCOME (LOSS) 870,565 17,892 (128,611)
-------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT
SECURITIES
Net Realized Gain on Investment
Securities and Foreign
Currency Transactions 4,027,007 749,714 2,710,350
Change in Net Appreciation
<PAGE>
(Depreciation) of Investment
Securities and Foreign
Currency Transactions (2,212,549) (2,061,031) 5,472,791
-------------------------------------------------
NET GAIN (LOSS) ON
INVESTMENT SECURITIES 1,814,458 (1,311,317) 8,183,141
-------------------------------------------------
Net Increase (Decrease) in
Net Assets from Operations $ 2,685,023 $ (1,293,425) $ 8,054,530
=================================================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Operations (Continued)
Period Ended January 31, 1998 (See Note 1)
UNAUDITED
S & P
500 Index
Fund
--------------
INVESTMENT INCOME
INCOME
Dividends $ 1,421
Interest 2,537
--------------
TOTAL INCOME 3,958
--------------
EXPENSES
Investment Advisory Fees 341
Distribution Expenses-- Class II 94
Administrative Fees 1,069
Professional Fees and Expenses 2,526
Registration Fees and Expenses 10,687
--------------
TOTAL EXPENSES 14,717
Fees and Expenses Absorbed by
Investment Adviser (14,621)
--------------
NET EXPENSES 96
--------------
NET INVESTMENT INCOME 3,862
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities (40)
Futures Contracts 2,612
--------------
Total Net Realized Gain 2,572
--------------
Change in Net Appreciation of:
Investment Securities 37,444
Futures Contracts 1,282
--------------
Total Net Appreciation 38,726
--------------
NET GAIN ON INVESTMENT SECURITIES 41,298
--------------
Net Increase in Net Assets from
Operations $45,160
==============
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
-------------------------- ------------------------- -------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
January 31 July 31 January 31 July 31 January 31 July 31
-------------------------- ------------------------- -------------------------
1998 1997 1998 1997 1998 1997
UNAUDITED UNAUDITED UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net Investment Income (Loss) $ 19,557 $ (57,271) $ (296,147) $ (219,471) $ (284,066) $ 874,338
Net Realized Gain (Loss) on
Investment Securities and
Foreign Currency
Transactions (5,397,358) 2,717,229 3,931,200 8,995,970 (425,678) 6,819,951
Change in Net Appreciation
(Depreciation) of
Investment Securities and
Foreign Currency
Transactions (7,764,633) 2,533,318 (5,464,846) 5,896,544 (29,035,755) 19,631,044
--------------------------- ---------------------------- ----------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS (13,142,434) 5,193,276 (1,829,793) 14,673,043 (29,745,499) 27,325,333
--------------------------- ---------------------------- ----------------------------
DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income 0 0 0 0 (1,644) (898,745)
<PAGE>
Net Realized Gain on
Investment Securities
and Foreign Currency
Transactions (2,740,201) 0 (11,445,103) (3,874,335) (9,347,738) (763,367)
---------------------------- ---------------------------- ---------------------------
TOTAL DISTRIBUTIONS (2,740,201) 0 (11,445,103) (3,874,335) (9,349,382) (1,662,112)
---------------------------- ---------------------------- ---------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales
of Shares 14,397,580 58,289,655 65,145,200 390,188,113 33,227,817 147,554,103
Reinvestment of
Distributions 2,683,216 0 10,460,858 3,693,369 9,257,078 1,643,078
---------------------------- ---------------------------- ---------------------------
17,080,796 58,289,655 75,606,058 393,881,482 42,484,895 149,197,181
Amounts Paid for
Repurchases of Shares (20,603,985) (44,828,305) (91,883,826) (423,884,261) (70,223,968) (76,652,142)
---------------------------- ---------------------------- ---------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM FUND
SHARE TRANSACTIONS (3,523,189) 13,461,350 (16,277,768) (30,002,779) (27,739,073) 72,545,039
---------------------------- ---------------------------- ---------------------------
Total Increase (Decrease)
in Net Assets (19,405,824) 18,654,626 (29,552,664) (19,204,071) (66,833,954) 98,208,260
NET ASSETS
Beginning of Period 32,969,330 14,314,704 75,056,936 94,261,007 130,272,160 32,063,900
---------------------------- ---------------------------- ---------------------------
End of Period $13,563,506 $ 32,969,330 $ 45,504,272 $ 75,056,936 $ 63,438,206 $130,272,160
============================ ============================ ===========================
Accumulated Undistributed
Net Investment Income
(Loss) Included in Net
Assets at End of Period $ 19,419 $ (138) $ (302,463) $ (6,316) $ (405,663) $ (119,953)
<PAGE>
FUND SHARE TRANSACTIONS
Shares Sold 2,280,161 5,695,778 4,290,333 24,262,011 2,090,862 9,413,898
Shares Issued from
Reinvestment of
Distributions 545,369 0 881,285 240,298 726,046 108,476
---------------------------- ---------------------------- ----------------------------
2,825,530 5,695,778 5,171,618 24,502,309 2,816,908 9,522,374
Shares Repurchased (2,569,709) (4,391,861) (6,042,599) (26,142,644) (4,561,214) (4,922,997)
---------------------------- ---------------------------- ----------------------------
Net Increase (Decrease) in
Fund Shares 255,821 1,303,917 (870,981) (1,640,335) (1,744,306) 4,599,377
============================ ============================ ============================
See Notes to Financial Statements
</TABLE>
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
Worldwide Capital Goods Worldwide Communications
Realty Fund Fund Fund
---------------------------- --------------------------- ---------------------------
Six Months Period Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
January 31 July 31 January 31 July 31 January 31 July 31
---------------------------- ---------------------------- ---------------------------
1998 1997 1998 1997 1998 1997
UNAUDITED UNAUDITED UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net Investment Income
(Loss) $ 870,565 $ 660,426 $ 17,892 $ 37,893 $ (128,611) $ 309,209
Net Realized Gain (Loss)
on Investment Securities
and Foreign Currency
Transactions 4,027,007 (81,769) 749,714 1,139,730 2,710,350 4,688,859
Change in Net Appreciation
(Depreciation) of
Investment Securities and
Foreign Currency
Transactions (2,212,549) 2,199,767 (2,061,031) 2,381,692 5,472,791 11,765,158
---------------------------- --------------------------- ---------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS 2,685,023 2,778,424 (1,293,425) 3,559,315 8,054,530 16,763,226
---------------------------- --------------------------- ---------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
<PAGE>
Net Investment Income (900,399) (658,935) 0 (40,745) 0 (307,162)
Net Realized Gain on
Investment Securities
and Foreign Currency
Transactions (2,808,503) 0 (1,745,056) (487,207) (5,101,480) (3,964,664)
---------------------------- ---------------------------- ----------------------------
TOTAL DISTRIBUTIONS (3,708,902) (658,935) (1,745,056) (527,952) (5,101,480) (4,271,826)
---------------------------- ---------------------------- ----------------------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of
Shares 80,832,453 87,811,086 28,144,605 36,882,095 142,795,833 105,661,260
Reinvestment of
Distributions 3,489,695 633,951 1,655,532 523,895 4,809,015 4,049,521
---------------------------- ---------------------------- ----------------------------
84,322,148 88,445,037 29,800,137 37,405,990 147,604,848 109,710,781
Amounts Paid for
Repurchases of Shares (79,928,889) (53,906,991) (34,082,940) (25,914,782) (117,867,973) (100,260,270)
---------------------------- --------------------------- ----------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM FUND
SHARE TRANSACTIONS 4,393,259 34,538,046 (4,282,803) 11,491,208 29,736,875 9,450,511
---------------------------- --------------------------- ----------------------------
Total Increase (Decrease)
in Net Assets 3,369,380 36,657,535 (7,321,284) 14,522,571 32,689,925 21,941,911
NET ASSETS
Beginning of Period 36,657,535 0 22,253,536 7,730,965 72,458,297 50,516,386
---------------------------- --------------------------- ----------------------------
End of Period $40,026,915 $36,657,535 $14,932,252 $22,253,536 $105,148,222 $72,458,297
============================ =========================== ============================
Accumulated Undistributed
Net Investment Income
(Loss) Included in Net
<PAGE>
Assets at End of Period $4,957 $34,791 $18,730 $838 $(190,364) $(61,753)
FUND SHARE TRANSACTIONS
Shares Sold 7,202,720 8,503,849 2,220,867 3,284,566 8,826,313 7,791,340
Shares Issued from
Reinvestment of
Distribution 332,456 62,289 155,012 55,141 319,112 324,919
---------------------------- --------------------------- ---------------------------
7,535,176 8,566,138 2,375,879 3,339,707 9,145,425 8,116,259
Shares Repurchased (7,069,511) (5,231,150) (2,749,258) (2,392,625) (7,349,833) (7,446,966)
---------------------------- --------------------------- ---------------------------
Net Increase (Decrease)
in Fund Shares 465,665 3,334,988 (373,379) 947,082 1,795,592 669,293
============================ =========================== ===========================
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
S & P 500
Index Fund
-------------
Period
Ended
January 31
-------------
1998
UNAUDITED
(Note 1)
<S> <C>
Net Investment Income $ 3,862
Net Realized Gain on Investment Securities,
Foreign Currency Transactions and Futures Contracts 2,572
Change in Net Appreciation of Investment Securities,
Foreign Currency Transactions and Futures Contracts 38,726
-------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 45,160
-------------
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Class I 3,094,473
Class II 1,073,184
-------------
Amounts Paid for Repurchases of Shares
Class I (1,735,060)
Class II (429,741)
-------------
NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS 2,002,856
-------------
Total Increase in Net Assets 2,048,016
NET ASSETS
Initial Subscription (See Note 1) 1,000,000
-------------
End of Period $ 3,048,016
=============
Accumulated Undistributed Net Investment Income
Included in Net Assets at End of Period $ 3,862
FUND SHARE TRANSACTIONS Initial Subscription (See Note 1)
Class I 90,000
<PAGE>
Class II 10,000
Shares Sold
Class I 297,156
Class II 103,661
-------------
Shares Repurchased
Class I (167,732)
Class II (41,877)
-------------
Net Increase in Fund Shares 291,208
=============
</TABLE>
See Notes to Financial Statements
<PAGE>
INVESCO Specialty Funds, Inc.
Notes to Financial Statements
UNAUDITED
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Specialty
Funds, Inc. (the "Fund") is incorporated in Maryland and presently consists of
seven separate Funds: Asian Growth Fund, European Small Company Fund, Latin
American Growth Fund, Realty Fund, Worldwide Capital Goods Fund, Worldwide
Communications Fund and S & P 500 Index Fund. The investment objectives are: To
achieve capital appreciation for Asian Growth, European Small Company, Latin
American Growth and Worldwide Capital Goods Funds; to achieve current income for
Realty Fund; to achieve a high total return on investments through capital
appreciation and current income for Worldwide Communications Fund and to provide
both price performance and income comparable to the Standard and Poor's 500
composite stock index for S & P 500 Index Fund. S & P 500 Index Fund commenced
investment operations on December 23, 1997. The Fund is registered under the
Investment Company Act of 1940 (the "Act") as a diversified, open-end management
investment company.
The S & P 500 Index Fund offers two classes of shares, referred to as Class
I shares and Class II shares. Class I shares are not subject to any distribution
fees, while Class II shares are subject to an annual distribution fee of 0.25%
of the Fund's average daily net assets attributable to Class II shares.
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.
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.
<PAGE>
Short-term securities are stated at amortized cost (which approximates
market value) if maturity is 60 days or less at the time of purchase, or
market value if maturity is greater than 60 days.
Assets and liabilities initially expressed in terms of foreign
currencies are translated into U.S. dollars at the prevailing market rates
as quoted by one or more banks or dealers on the date of valuation. The
cost of securities is translated into U.S. dollars at the rates of exchange
prevailing when such securities are acquired. Income and expenses are
translated into U.S. dollars at rates of exchange prevailing when accrued.
B. FUTURES CONTRACTS -- S & P 500 Index Fund may enter into futures
contracts for hedging or other non-speculative purposes. Upon entering into
a contract, S & P 500 Index Fund deposits and maintains as collateral such
initial margin as may be required by the exchanges on which the transaction
is affected. Pursuant to the contracts, S & P 500 Index Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments are
known as "variation margin" and are recorded by S & P 500 Index Fund as
variation margin receivable or payable on futures contracts. During the
period the futures contracts are open, changes in the value of the
contracts are recognized on a daily basis to reflect the market value of
the contracts at the end of each day's trading and are recorded as
unrealized gain or loss. When the contract is closed, S & P 500 Index Fund
records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time it was
closed. S & P 500 Index Fund's use of futures contracts may subject it to
certain risks as a result of unanticipated movements in the market. A lack
of correlation between the value of an instrument underlying a futures
contract and the asset being hedged, or unexpected adverse price movements,
could render S & P 500 Index Fund's hedging strategy unsuccessful and
result in losses. In addition, there can be no assurance that a liquid
secondary market will exist for any contract purchased or sold.
C. REPURCHASE AGREEMENTS -- Repurchase agreements held by the Fund are
fully collateralized by U.S. Government securities and such collateral is
in the possession of the Fund's custodian. The collateral is evaluated
daily to ensure its market value exceeds the current market value of the
repurchase agreements including accrued interest. In the event of default
on the obligation to repurchase, the Fund has the right to liquidate the
collateral and apply the proceeds in satisfaction of the obligation. In the
event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral or proceeds may be subject
to legal proceedings.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security
transactions are accounted for on the trade date and dividend income is
recorded on the ex dividend date. Certain dividends from foreign securities
will be recorded as soon as the Fund is informed of the dividend if such
information is obtained subsequent to the ex dividend date. Interest
income, which may be comprised of stated coupon rate, market discount,
original issue discount and amortized premium, is recorded on the accrual
basis. Cost is determined on the specific identification basis.
<PAGE>
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 investments includes fluctuations
from currency exchange rates and fluctuations in market value.
The Fund's use of short-term forward foreign currency contracts may
subject it to certain risks as a result of unanticipated movements in
foreign exchange rates. The Fund does not hold short-term forward foreign
currency contracts for trading purposes. The Fund may hold foreign currency
in anticipation of settling foreign security transactions and not for
investment purposes.
Restricted securities held by the Fund may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. The risk of investing in such securities is generally greater than the
risk of investing in the securities of widely held, publicly traded
companies. Lack of a secondary market and resale restrictions may result in
the inability of each Fund to sell a security at a fair price and may
substantially delay the sale of the security which each Fund seeks to sell.
In addition, these securities may exhibit greater price volatility than
securities for which secondary markets exist.
E. FEDERAL AND STATE TAXES -- The Fund has complied, and continues to
comply, with the provisions of the Internal Revenue Code applicable to
regulated investment companies and, accordingly, has made or intends to make
sufficient distributions of net investment income and net realized capital
gains, if any, to relieve it from all federal and state income taxes and
federal excise taxes.
Latin American Growth, Worldwide Capital Goods and Worldwide
Communications Funds incurred and elected to defer post-October 31 net
currency losses of $122,389, $1,993 and $62,726, respectively, to the year
ended July 31, 1998. Asian Growth Fund incurred and elected to defer post-
October 31 net capital losses of $76,253 to the year ended July 31, 1998. 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. Each Fund has elected
to treat a portion of distributions of both realized and unrealized gains on
forward foreign currency contracts as capital gain distributions.
<PAGE>
Investment income received from foreign sources may be subject to
foreign withholding taxes. Dividend and interest income is shown gross of
foreign withholding taxes in the accompanying financial statements.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and
distributions to shareholders are recorded by the Fund on the ex
dividend/distribution date. The Fund distributes net realized capital
gains, if any, to its shareholders at least annually, if not offset by
capital loss carryovers. Income distributions and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments for foreign currency
transactions, nontaxable dividends, net operating losses and expired
capital loss carryforwards.
G. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund enters into
short-term forward foreign currency contracts in connection with planned
purchases or sales of securities as a hedge against fluctuations in foreign
exchange rates pending the settlement of transactions in foreign
securities. A forward foreign currency contract is an agreement between
contracting parties to exchange an amount of currency at some future time
at an agreed upon rate. These contracts are marked-to-market daily and the
related appreciation or depreciation of the contracts is presented in the
Statement of Assets and Liabilities.
H. EXPENSES -- Each of the Funds bears expenses incurred specifically on its
behalf and, in addition, each Fund bears a portion of general expenses,
based on the relative net assets of each Fund.
Under an agreement between each Fund and the Fund's Custodian, agreed
upon Custodian Fees and Expenses are reduced by credits granted by the
Custodian from any temporarily uninvested cash. Similarly, Transfer Agent
Fees 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 January 31, 1998, Fees and Expenses Paid
Indirectly consisted of the following:
Custodian Fees Transfer
Fund and Expenses Agent Fees
- ------------------------------------------------------------------------------
Asian Growth Fund $ 6,611 $ 0
European Small Company Fund 11,839 316
Latin American Growth Fund 34,136 0
Realty Fund 1,090 0
Worldwide Capital Goods Fund 2,001 36
Worldwide Communications Fund 3,620 92
Fees and Expenses Paid Indirectly were insignificant for S & P 500 Index
Fund.
<PAGE>
NOTE 2 - INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc.
("IFG") serves as the Fund's investment adviser. As compensation for its
services to the Fund, IFG receives an investment advisory fee which is accrued
daily at the applicable rate and paid monthly. 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%
The Realty and S & P 500 Index Fund's is based on the annual rate of 0.75%
and 0.25%, respectively, of average net assets.
In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust
Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of
Worldwide Capital Goods and Worldwide Communications Funds are made by ITC.
Effective February 4, 1998, such responsibilities were transferred to IFG. A
separate Sub-Advisory Agreement between IFG and INVESCO Asia Limited ("INVESCO
Asia"), a wholly owned subsidiary of IFG, provides that investment decisions of
Asian Growth Fund are made by INVESCO Asia. A separate Sub-Advisory Agreement
between IFG and INVESCO Asset Management Limited ("IAM"), an affiliate of IFG,
provides that investment decisions of European Small Company and Latin American
Growth Funds are made by IAM. A separate Sub-Advisory Agreement between IFG and
INVESCO Realty Advisors ("INVESCO Realty"), an affiliate of IFG, provides that
investment decisions of Realty Fund are made by INVESCO Realty. A separate Sub-
Advisory agreement between IFG and World Asset Management ("World"),
unaffiliated with any IFG entity, provides that investment decisions of S & P
500 Index Fund are made by World. Fees for such sub-advisory services are paid
by IFG.
In accordance with an Administrative Agreement, each Fund pays IFG an annual
fee of $10,000, plus an additional amount computed at an annual rate of 0.015%
of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
IFG receives a transfer agent fee at an annual rate of $20.00 per
shareholder account, or, where applicable, per participant in an omnibus
account, per year. IFG may pay such fee for participants in omnibus accounts to
affiliates or third parties. The fee is paid monthly at one-twelfth of the
annual fee and is based upon the actual number of accounts in existence during
each month.
A plan of distribution pursuant to Rule 12b-1 of the Act provides for
compensation of marketing and advertising expenditures to IFG (the
<PAGE>
"Distributor") to a maximum of 0.25% of annual average net assets. For the
period ended January 31, 1998, Asian Growth, European Small Company, Latin
American Growth, Realty, Worldwide Capital Goods, Worldwide Communications and S
& P 500 Index Funds paid the Distributor $26,726, $85,447, $135,200, $50,082,
$27,300, $95,645, and $0, respectively, under the plan of distribution.
Effective September 29, 1997, INVESCO Distributors, Inc., a wholly owned
subsidiary of IFG, replaced IFG as Distributor.
IFG has 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. IFG and World have voluntarily agreed, in some
instances, to absorb certain fees and expenses incurred by S & P 500 Index Fund.
IFG and INVESCO Realty have voluntarily agreed, in some instances, to absorb
certain fees and expenses incurred by Realty Fund.
A 1% redemption fee is retained by Asian Growth, Latin American Growth and S
& P 500 Index Funds 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 Asian
Growth, Latin American Growth and S & P 500 Index Funds for the period ended
January 31, 1998 were $37,827, $170,474 and $2,855, respectively.
NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the period ended
January 31, 1998, the aggregate cost of purchases and proceeds from sales of
investment securities (excluding all U.S. Government securities and short-term
securities) were as follows:
Fund Purchases Sales
- --------------------------------------------------------------------------------
Asian Growth Fund $8,482,612 $15,602,805
European Small Company Fund 12,887,615 36,915,729
Latin American Growth Fund 18,649,326 50,441,650
Realty Fund 51,731,088 56,919,061
Worldwide Capital Goods Fund 20,544,425 26,189,812
Worldwide Communications Fund 39,214,187 24,422,802
S & P 500 Index Fund 2,514,953 373
There were no purchases or sales of U.S. Government securities.
NOTE 4 - APPRECIATION AND DEPRECIATION. At January 31, 1998, the gross
appreciation of securities in which there was an excess of value over tax cost,
the gross depreciation of securities in which there was an excess of tax cost
over value and the resulting net appreciation (depreciation) by Fund were as
follows:
<PAGE>
Net
Gross Gross Appreciation/
Fund Appreciation Depreciation (Depreciation)
- ------------------------------------------------------------------------------
Asian Growth Fund $ 277,325 $ 7,193,964 $(6,916,639)
European Small Company Fund 6,600,959 7,165,733 (564,774)
Latin American Growth Fund 4,339,377 12,579,935 (8,240,558)
Realty Fund 869,102 977,011 (107,909)
Worldwide Capital Goods Fund 772,101 433,481 338,620
Worldwide Communications Fund 19,294,443 (1,730,150) 17,564,293
S & P 500 Index Fund 55,400 17,956 37,444
NOTE 5 -- TRANSACTIONS WITH AFFILIATES. Certain of the Fund's officers and
directors are also officers and directors of IFG, IAM, INVESCO Asia, INVESCO
Realty or World.
The Fund has adopted an unfunded deferred compensation plan covering all
independent directors of the Fund who will have served as an independent
director for at least five years at the time of retirement. Benefits under this
plan are based on an annual rate equal to 40% of the retainer fee at the time of
retirement.
Pension expenses for the period ended January 31, 1998, included in
Directors' Fees and Expenses in the Statement of Operations, and unfunded
accrued pension costs and pension liability included in Prepaid Expenses and
Accrued Expenses, respectively, in the Statement of Assets and Liabilities were
as follows:
Unfunded
Pension Accrued Pension
Fund Expenses Pension Costs Liability
- ------------------------------------------------------------------------------
Asian Growth Fund $ 191 $ 400 $ 730
European Small Company Fund 1,111 2,249 4,319
Latin American Growth Fund 680 1,535 2,516
Realty Fund 178 444 622
Worldwide Capital Goods Fund 128 237 514
Worldwide Communications Fund 660 1,175 2,696
Pension expenses, unfunded pension costs and pension liability were
insignificant for S & P 500 Index Fund
NOTE 6 - LINE OF CREDIT. The Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 10% of the Net Assets at Value of each respective
Fund. Each Fund agrees to pay annual fees and interest on the unpaid principal
balance based on prevailing market rates as defined in the agreement. At January
31, 1998, there were no such borrowings.
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Year Period
Ended Ended Ended
January 31 July 31 July 31
------------ ------------ ------------
1998 1997 1996^
UNAUDITED
Asian Growth Fund
<S> <C> <C> <C>
Net Asset Value --
Beginning of Period $ 11.35 $ 8.95 $ 10.00
------------ ------------ ------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.01 (0.02) 0.02
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) (5.75) 2.42 (1.05)
------------ ------------ ------------
Total from Investment Operations (5.74) 2.40 (1.03)
------------ ------------ ------------
LESS DISTRIBUTIONS
Dividends from Net Investment
Income 0.00 0.00 0.02
Distributions from Capital Gains 1.32 0.00 0.00
------------ ------------ ------------
Total Distributions 1.32 0.00 0.02
------------ ------------ ------------
Net Asset Value-- End of Period $ 4.29 $ 11.35 $ 8.95
============ ============ ============
TOTAL RETURN+ (52.01%)* 27.04% (10.31%)*
RATIOS
Net Assets -- End of Period
($000 Omitted) $13,564 $32,969 $14,315
Ratio of Expenses to Average
Net Assets# 1.04%*@ 2.05%@ 2.19%~@
Ratio of Net Investment Income
(Loss) to Average Net Assets# 0.11%* (0.20%) 0.94%~
Portfolio Turnover Rate 51%* 161% 2%*
Average Commission Rate Paid^^ $0.0040* $0.0047 $0.0198*
</TABLE>
<PAGE>
^ From March 1, 1996, commencement of investment operations, to July 31, 1996.
+ Total return does not reflect the effect of the applicable redemption fees.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG and INVESCO
Asia for the six months ended January 31, 1998, the year ended July 31, 1997
and the period ended July 31, 1996. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 1.41% (not annualized), 2.10% and 2.79% (annualized), respectively, and
ratio of net investment income to average net assets would have been (0.26%)
(not annualized), (0.25%) and 0.34% (annualized), respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
~ Annualized
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold.
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Ended
January 31 Year Ended July 31 July 31
----------- ----------------------------------
1998 1997 1996 1995^
UNAUDITED
European Small Company Fund
<S> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 16.29 $ 15.08 $ 11.56 $ 10.00
----------- ----------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss) (0.08) (0.05) 0.07 0.04
Net Gains or (Losses)
on Securities (Both
Realized and Unrealized) (0.59) 1.79 3.52 1.56
----------- -----------------------------------
Total from Investment
Operations (0.67) 1.74 3.59 1.60
----------- -----------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.00 0.07 0.04
Distributions from
Capital Gains 3.45 0.53 0.00 0.00
----------- -----------------------------------
Total Distributions 3.45 0.53 0.07 0.04
----------- -----------------------------------
Net Asset Value --
End of Period $12.17 $ 16.29 $ 15.08 $ 11.56
=========== ==================================
TOTAL RETURN (3.52%)* 11.71% 31.07% 15.98%*
RATIOS
Net Assets -- End of
Period ($000 Omitted) $45,504 $75,057 $94,261 $3,801
<PAGE>
Ratio of Expenses to
Average Net Assets# 1.02%*@ 1.62%@ 1.68%@ 2.00%~
Ratio of Net Investment
Income (Loss) to
Average Net Assets# (0.49%)* (0.18%) 1.23% 2.37%~
Portfolio Turnover Rate 22%* 87% 141% 0%*
Average Commission Rate
Paid^^ $0.0148* $0.0108 $0.0125 --
</TABLE>
^ From February 15, 1995, commencement of investment operations, to July 31,
1995.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG, MIL and IAM
for the six months ended January 31, 1998 and the period ended July 31,
1995. If such expenses had not been voluntarily absorbed, ratio of expenses
to average net assets would have been 1.07% (not annualized) and 10.17%
(annualized), respectively, and ratio of net investment income to average
net assets would have been (0.54%) (not annualized) and (5.80%)
(annualized), respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, 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 is required to be
disclosed for the fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Ended
January 31 Year Ended July 31 July 31
----------- ----------------------------------
1998 1997 1996 1995^
UNAUDITED
Latin American Growth Fund
<S> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 18.37 $ 12.86 $ 11.69 $ 10.00
----------- -----------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss) (0.06) 0.13 0.08 0.02
Net Gains or (Losses)
on Securities (Both
Realized and Unrealized) (4.67) 5.88 1.62 1.69
----------- -----------------------------------
Total from Investment
Operations (4.73) 6.01 1.70 1.71
----------- -----------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.14 0.09 0.02
Distributions from
Capital Gains 1.78 0.36 0.44 0.00
----------- -----------------------------------
Total Distributions 1.78 0.50 0.53 0.02
----------- -----------------------------------
Net Asset Value --
End of Period $11.86 $18.37 $ 12.86 $ 11.69
=========== ===================================
TOTAL RETURN+ (26.42%)* 48.06% 15.27% 17.09%*
RATIOS
Net Assets -- End of
Period ($000 Omitted) $63,438 $130,272 $32,064 $7,423
<PAGE>
Ratio of Expenses to
Average Net Assets# 0.91%*@ 1.76%@ 2.14%@ 2.00%~
Ratio of Net Investment
Income (Loss) to
Average Net Assets# (0.29%)* 1.35% 1.26% 0.79%~
Portfolio Turnover Rate 20%* 72% 29% 30%*
Average Commission Rate
Paid^^ $0.0002* $0.0002 $0.0001 --
</TABLE>
^ From February 15, 1995, commencement of investment operations, to July 31,
1995.
< Distributors of net investment income for the six months ended January 31,
1998 aggregated less than $0.01 on a per share basis.
+ Total return does not reflect the effect of the applicable redemption fees.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG, 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 4.49% (annualized), and ratio of net investment income to average net
assets would have been (1.70%) (annualized).
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements.
~ Annualized
^^ The average commission rate paid is the total brokerage commissions paid on
applicable purchases and sales of securities for the period divided by the
total number of related shares purchased or sold which is required to be
disclosed for the fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months Period
Ended Ended
January 31 July 31
------------ ------------
1998 1997^
UNAUDITED
Realty Fund
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value-- Beginning of Period $ 10.99 $ 10.00
------------ ------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.25 0.22
Net Gains on Securities
(Both Realized and Unrealized) 0.42 0.99
------------ ------------
Total from Investment Operations 0.67 1.21
------------ ------------
LESS DISTRIBUTIONS
Dividends from Net Investment Income 0.26 0.22
Distributions from Capital Gains 0.87 0.00
------------ ------------
Total Distributions 1.13 0.22
------------ ------------
Net Asset Value-- End of Period $ 10.53 $ 10.99
============ ============
TOTAL RETURN 6.31%* 12.24%*
RATIOS
Net Assets-- End of Period ($000 Omitted) $40,027 $36,658
Ratio of Expenses to Average Net Assets# 0.61%*@ 1.20%~@
Ratio of Net Investment Income to
Average Net Assets# 2.13%* 4.08%~
Portfolio Turnover Rate 137%* 70%*
Average Commission Rate Paid^^ $0.0851* $0.0666*
</TABLE>
^ From January 1, 1997, commencement of investment operations, to July 31, 1997.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
<PAGE>
# Various expenses of the Fund were voluntarily absorbed by IFG and INVESCO
Realty for the six months ended January 31, 1998 and the period ended July
31, 1997. If such expenses had not been voluntarily absorbed, ratio of
expenses to average net assets would have been 0.91% (not annualized) and
1.83% (annualized), respectively, and ratio of net investment income to
average net assets would have been 1.83% (not annualized) and 3.45%
(annualized), respectively.
@ Ratio is based on Total Expenses of the Fund, less Expenses Absorbed by
Investment Advisor, which is before any expense offset arrangements.
~ Annualized
^^ The average 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.
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
January 31 Year Ended July 31
------------ -----------------------------------
1998 1997 1996 1995^
UNAUDITED
Worldwide Capital Goods Fund
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net Asset Value --
Beginning of Period $ 12.70 $ 9.61 $9.84 $10.00
------------ -----------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income 0.01 0.05 0.01 0.01
Net Gains or (Losses) on
Securities (Both Realized
and Unrealized) (0.67) 4.37 0.01 (0.16)
------------ -----------------------------------
Total from Investment
Operations (0.66) 4.42 0.02 (0.15)
------------ -----------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.06 0.00 0.01
Distributions from
Capital Gains 1.21 1.27 0.25 0.00
------------ -----------------------------------
Total Distributions 1.21 1.33 0.25 0.01
------------ -----------------------------------
Net Asset Value --
End of Period $10.83 $12.70 $9.61 $9.84
============ ===================================
TOTAL RETURN (5.04%)* 50.86% 0.27% (1.49%)
RATIOS
Net Assets -- End of
Period ($000 Omitted) $14,932 $22,254 $7,731 $10,364
Ratio of Expenses to
<PAGE>
Average Net Assets# 0.89%*@ 1.98%@ 2.11%@ 2.00%
Ratio of Net Investment
Income to Average
Net Assets# 0.09%* 0.51% 0.05% 0.25%
Portfolio Turnover Rate 111%* 192% 247% 193%
Average Commission Rate
Paid^^ $0.1202* $0.0584 $0.0907 --
</TABLE>
^ Commencement of investment operations was August 1, 1994.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
# Various expenses of the Fund were voluntarily absorbed by IFG and ITC for
the years ended July 31, 1997, 1996 and 1995. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 2.58%, 2.49% and 2.96%, respectively, and ratio of net investment
income to average net assets would have been (0.09%), (0.33%) and (0.71%),
respectively.
@ Ratio is based on Total Expenses of the Fund less Expenses Absorbed by
Investment Adviser, if applicable, 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 is required to be
disclosed for the fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Six Months
Ended
January 31 Year Ended July 31
------------ ------------------------------------
1998 1997 1996 1995^
UNAUDITED
Worldwide Communications Fund
<S> <C> <C> <C> <C>
Net Asset Value --
Beginning of Period $ 15.31 $ 12.43 $12.30 $10.00
------------ -------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss) (0.02) 0.06 0.22 0.11
Net Gains on Securities
(Both Realized and
Unrealized) 1.85 3.90 1.38 2.35
------------ -------------------------------------
Total from Investment
Operations 1.83 3.96 1.60 2.46
------------ -------------------------------------
LESS DISTRIBUTIONS
Dividends from Net
Investment Income 0.00 0.06 0.22 0.11
Distributions from
Capital Gains 1.04 1.02 1.25 0.05
------------ -------------------------------------
Total Distributions 1.04 1.08 1.47 0.16
------------ -------------------------------------
Net Asset Value --
End of Period $ 16.10 $ 15.31 $12.43 $12.30
============ =====================================
TOTAL RETURN 12.42%* 33.93% 13.67% 24.83%
RATIOS
Net Assets -- End of
Period ($000 Omitted) $105,148 $72,458 $50,516 $27,254
<PAGE>
Ratio of Expenses to
Average Net Assets 0.75%*@ 1.69%@ 1.66%@ 1.95%
Ratio of Net Investment
Income (Loss) to
Average Net Assets (0.16)%* 0.56% 1.78% 1.43%
Portfolio Turnover Rate 39%* 96% 157% 215%
Average Commission Rate
Paid^^ $0.0511* $0.0611 $0.1285 --
</TABLE>
^ Commencement of investment operations was August 1, 1994.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
@ Ratio is based on Total Expenses of the Fund 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 is required to be
disclosed for the fiscal years beginning September 1, 1995 and thereafter.
<PAGE>
INVESCO Specialty Funds, Inc.
Financial Highlights (Continued)
(For a Fund Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Period Period
Ended Ended
January 31 January 31
------------ ------------
1998^ 1998^
UNAUDITED
S & P 500 Index Fund
Class I Class II
------------ ------------
<S> <C> <C>
Net Asset Value-- Beginning of Period $ 10.00 $ 10.00
------------ ------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.01 0.01
Net Gains on Securities
(Both Realized and Unrealized) 0.44 0.52
------------ ------------
Total from Investment Operations 0.45 0.53
------------ ------------
Net Asset Value-- End of Period $ 10.45 $ 10.53
============ ============
TOTAL RETURN 1.06%* 1.94%*
RATIOS
Net Assets-- End of Period ($000 Omitted) $2,292 $756
Ratio of Expenses to Average Net Assets# 0.00%* 0.00%
Ratio of Net Investment Income to
Average Net Assets# 0.00%* 0.00%*
Portfolio Turnover Rate 0%* 0%*
Average Commission Rate Paid^^ $0.0211 $0.0211*
</TABLE>
^ From December 23, 1997, commencement of investment operations to January 31,
1998.
* Based on operations for the period shown and, accordingly, are not
representative of a full year.
<PAGE>
# Various expenses of the Fund were voluntarily absorbed by IFG and the period
ended January 31, 1998. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been insignificant and
ratio of income to average net assets would have been insignificant.
^^ 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.
<PAGE>
FAMILY OF FUNDS
Newspaper
Fund Name Fund Code Ticker Symbol Abbreviation
- --------------------------------------------------------------------------------
International
International Growth 49 FSIGX IntlGr
Asian Growth 41 IVAGX AsianGr
Pacific Basin 54 FPBSX PcBas
European 56 FEURX Europ
European Small Company 37 IVECX EuroSmCo
Latin American Growth 34 IVSLX LtnAmerGr
- --------------------------------------------------------------------------------
Sector
Energy 5 FSTEX Enrgy
Environmental Services 59 FSEVX Envirn
Financial Services 57 FSFSX FinSvc
Gold 51 FGLDX Gold
Health Sciences 52 FHLSX HlthSc
Leisure 53 FLISX Leisur
Realty 42 IVSRX Realty
Technology 55 FTCHX Tech
Utilities 58 FSTUX Util
Worldwide Capital Goods 38 ISWGX WldCap
Worldwide Communications 39 ISWCX WldCom
- --------------------------------------------------------------------------------
Equity
Growth 10 FLRFX Grwth
Dynamics 20 FIDYX Dynm
Small Company Growth 60 FIEGX SmCoGth
Value Equity 46 FSEQX ValEq
Small Company Value 74 IDSCX SmCoVal
- --------------------------------------------------------------------------------
All-Weather
Industrial Income 15 FIIIX IndInc
Multi-Asset Allocation 70 IMAAX MulAstAl
Total Return 48 FSFLX TotRtn
Balanced 71 IMABX Bal
- --------------------------------------------------------------------------------
Bond
Short-Term Bond 33 INIBX ShTrBd
Intermediate Government Bond 47 FIGBX IntGov
U.S. Government Securities 32 FBDGX USGvt
Select Income 30 FBDSX SelInc
<PAGE>
High Yield 31 FHYPX HiYld
- --------------------------------------------------------------------------------
Tax-Exempt
Tax-Free Intermediate Bond 36 IVTIX *
Tax-Free Long-Term Bond 35 FTIFX TxFre
- --------------------------------------------------------------------------------
Money Market
U.S. Government Money Fund 44 FUGXX InvGvtMF
Cash Reserves 25 FDSXX InvCshR
Tax-Free Money Fund 40 FFRXX InvTaxFree
* This fund does not meet size requirements to be assigned a ticker symbol in
newspaper listings.
For more information about any of the INVESCO Funds, including management fees
and expenses, please call us at 1-800-525-8085 for a prospectus. Read it
carefully before you invest or send money.
<PAGE>
INVESCO FUNDS
INVESCO Distributors, Inc.,(SM)
Distributor
Post Office Box 173706
Denver, CO 80217-3706
1-800-525-8085
PAL(R): 1-800-424-8085
http://www.invesco.com
In Denver, visit one of our
convenient Investor Centers:
Cherry Creek,
155-B Fillmore Street
Denver Tech Center,
7800 East Union Avenue,
Lobby Level
This information must be
preceded or accompanied
by a current prospectus.
