-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BF29NuNPbo078ZIifK8GJnSSWwMPamhP3+f6kr+jy7w5R+1KPos++A9y/CFLg8a2 NPpKD+HZmWlLhSwtzowstQ== 0000110042-95-000009.txt : 19951030 0000110042-95-000009.hdr.sgml : 19951030 ACCESSION NUMBER: 0000110042-95-000009 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950831 FILED AS OF DATE: 19951027 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INVESCO GROWTH FUND INC /CO/ CENTRAL INDEX KEY: 0000110042 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 840202353 STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-00352 FILM NUMBER: 95584638 BUSINESS ADDRESS: STREET 1: 7800 E UNION AVE STREET 2: STE 800 CITY: DENVER STATE: CO ZIP: 80237 BUSINESS PHONE: 303-930-6300 MAIL ADDRESS: STREET 1: P.O. BOX 173706 CITY: DENVER STATE: CO ZIP: 80217-3706 N-30D 1 ANNUAL REPORT August 31, 1995 INVESCO GROWTH FUND, INC. A Smart Choice For Seeking Steady Capital Growth INVESCO FUNDS Market Overview September 1995 The U.S. economy may be close to achieving the "soft landing" analysts have hoped for. Fearing the long-term, corrosive effects of inflation, the Federal Reserve Board actively sought to slow the U.S. economy in 1994. Over a period of 12 months, they doubled short-term interest rates. The plan may have worked. After impressive annualized growth rates of 6.3%, 3.3%, 3.8%, 3.4%, and 5.1% in consecutive quarters, GDP advanced just 2.7% during the first three months of 1995, and was estimated at 1.3% in the second quarter. Now that they've reined in the galloping expansion, the Fed will act to keep it at a sustainable trot. In July, they cut short-term interest rates by 0.25%, and further cuts may be made if additional stimulus is required. Given the advances in the U.S. equities markets in the first half of 1995, we're likely to see a period when the market "digests" its gains -- as technology stocks did in mid-July, for instance. However, we do not anticipate a significant setback in prices over the fourth quarter. Growth Fund Growth Fund had a total return of 12.05% for the fiscal year ended 8/31/95, compared to a total return of 21.35% for the S&P 500 index in the same period. While results for the full year were not equal to the index, the fund picked up momentum in the last half of the fiscal year. From 1/1/95 through 8/31/95, the fund climbed 18.92%, compared to 24.45% for the S&P 500. And over the months of June, July and August, the fund was up a cumulative 8.00%, while the index was up only 6.06%. (Of course, past performance is no guarantee of future results.)* Growth Fund Avergage Annualize Total Return as of 8/31/95* 1 year 12.05% ------------------------------- 5 years 13.44% ------------------------------- 10 years 12.28% ------------------------------- The underperformance of the fund compared to the index over the last 12 months can be attributed mainly to the fund's lower weighting in technology and financial stocks. These two industry sectors led the market advances for much of the period. Fund performance also was influenced by real-estate and capital goods investments that failed to produce results. A large stake in Telefonos de Mexico SA, a Mexican telephone utilities firm, was sold after the Mexican currency crisis in December. Going into the domestic market rally beginning in December, the fund was constrained by a relatively high level of cash and cash equivalents. The cash position has since been reduced to under 10% as of 8/31/95. Growth Fund Total Return Performance* Graph: This line graph represents a comparison of the value of a $10,000 investment in the INVESCO Growth Fund 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 ten year period ended 8/31/95. Just as technology stocks outperformed the broad market, our technology holdings outperformed all other industry groups in the fund. We saw significant increases in value in IBM (one of our larger positions), Intel Corp., Texas Instruments, cisco Systems, and Ceridian Corp. As of 8/31/95, we had increased the fund's technology position to 28%, up from 18% as of 2/28/95. We are in the process of restructuring the portfolio to focus on stocks of well-managed, large-capitalization companies expected to show consistently higher earnings growth rates than the market in the next five years. Our method combines "top-down" analysis of economic factors with "bottom-up" scrutiny of individual stocks most likely to benefit, given the overview. In choosing stocks, a company's earnings outlook is the prime criterion. As long as the economy continues on its present stable course, we expect to decrease our exposure to capital goods and basic materials. At the same time, we anticipate maintaining our commitment to technology, health care, consumer staples, and pharmaceuticals. Graph:Portfolio Diversification by Value This bar graph reflects the allocation of the Growth Fund's portfolio by value of net assets in Basic Materials, Capital Goods & Construction, Consumer Cyclical, Consumer Staples, Energy, Finance, Technology, Transportation & Services, Utilities, and Cash & Equivalents for the periods ending 8/94, 2/95, and 8/95. Among recent stock selections are Coca-Cola Co. and McDonald's Corp., both of which we believe are in a position to capitalize on expanding overseas markets. We think they are good buys now due to exaggerated fears of adverse currency exchange rates. We also recently purchased shares of Safeway Inc., a supermarket chain that we believe is well run and, like all of our growth favorites, has a strong and sustainable competitive position. Another pick is Boeing Co., which could get an earnings boost from its new, cleaner and quieter 777 jet airplanes. We like Microsoft Corp. for its exposure to budding markets and commitment to reinvesting its strong cash flow into the business. Though we have already seen strong upward movement in the equity markets this year, we believe continuing strength in the U.S. economy will translate into sustained stock price advances. Continuing the momentum established in the first half of 1995, we believe we have taken the steps to put the fund in a strong position to benefit from positive market trends in the second half. Fund Management The fund is co-managed by R. Dalton Sim, chairman and president, and vice president Douglas N. Pratt, both of INVESCO Trust Company. Dalton has managed Growth Fund since 1988 and has been chief investment officer for the INVESCO funds for seven years. He has 28 years of experience with prominent financial and investment companies: Putnam Companies, Lazard Freres, Aetna Life & Casualty, Anchor Corporation, and Price Waterhouse. Dalton earned his MBA from Stanford University and a B. Comm. from the University of Toronto. He is a CA, Canadian Institute of Chartered Accountants. Doug is a 10-year veteran of the investment business and a Chartered Financial Analyst. He earned an MBA from Columbia University and an AB from Brown University. He was an equity analyst with Loomis, Sayles & Company from 1987 to 1992, when he joined INVESCO. In addition to co-managing Growth Fund, Doug is the manager of INVESCO Strategic Financial Services Portfolio. *Total return assumes reinvestment of dividends and capital gain distributions. Past performance is not a guarantee of future results. Investment return and principal value will vary so that, when redeemed, an investor's shares may be worth more or less than when purchased. The S&P 500 is an unmanaged index of common stocks considered representative of the broad market. The line graph on the previous page illustrates the value of a $10,000 investment in INVESCO Growth Fund, plus reinvested dividends and capital gain distributions, for the 10-year period ended 8/31/95. (Of course, past performance is no guarantee of future results.) The chart and other total return figures cited reflect the fund's operating expenses, but the index does not have expenses, which would, of course, have lowered its performance. INVESCO Growth Fund, Inc. Ten Largest Common Stock Holdings August 31, 1995 Description Value - ------------------------------------------------- Wells Fargo $13,978,125 cisco Systems 13,125,000 International Business Machines 12,921,875 Travelers Group 12,480,000 Amgen Inc 12,447,500 Micron Technology 12,300,000 Intel Corp 12,275,000 Viacom Inc Class B 12,156,250 Union Pacific 11,790,000 Coca-Cola Co 11,243,750 Composition of holdings is subject to change. INVESCO Growth Fund, Inc. Statement of Investment Securities August 31, 1995 Shares or Principal Description Amount Value - --------------------------------------------------------------------------- COMMON STOCKS 96.63% AEROSPACE & DEFENSE 3.31% Boeing Co 115,000 $7,331,250 Lockheed Martin 150,000 9,131,250 ------------ 16,462,500 ------------ BANKING 2.81% Wells Fargo 75,000 13,978,125 ------------ BIOTECHNOLOGY 2.50% Amgen Inc* 260,000 12,447,500 ------------ BROADCASTING 3.54% Tele-Communications International Class A* 350,000 5,468,750 Viacom Inc Class B* 250,000 12,156,250 ------------ 17,625,000 ------------ BUILDING & CONSTRUCTION RELATED 0.43% Webb (Del) Corp 114,500 2,132,562 ------------ CLEANING PRODUCTS 2.05% Colgate-Palmolive Co 150,000 10,200,000 ------------ COMPUTER RELATED 16.45% Autodesk Inc 200,000 9,225,000 Ceridian Corp* 150,000 6,562,500 cisco Systems* 200,000 13,125,000 Computer Associates International 85,000 5,907,500 Hewlett-Packard Co 140,000 11,200,000 International Business Machines 125,000 12,921,875 Microsoft Corp* 100,000 9,250,000 Oracle Systems* 200,000 8,025,000 Sterling Software* 125,000 5,578,125 ------------ 81,795,000 ------------ COSMETICS & TOILETRIES 0.97% Dial Corp 200,000 4,800,000 ------------ DIVERSIFIED COMPANIES 1.78% Tyco International Ltd 150,000 8,868,750 ------------ FOOD PRODUCTS & BEVERAGES 3.45% Coca-Cola Co 175,000 11,243,750 Seagram Co Ltd 160,000 5,920,000 ------------ 17,163,750 ------------ HEALTH CARE RELATED 3.35% Caremark International 270,000 5,602,500 Columbia/HCA Healthcare 235,000 11,045,000 ------------ 16,647,500 ------------ HOTELS 1.07% Marriott International 150,000 5,325,000 ------------ INSURANCE 3.61% Mid Ocean Ltd 160,000 5,480,000 Travelers Group 260,000 12,480,000 ------------ 17,960,00 ------------ MACHINERY 4.06% Ingersoll-Rand Co 250,000 9,468,750 Varity Corp* 236,100 10,742,550 ------------ 20,211,300 ------------ MEDICAL RELATED 1.89% Guidant Corp 325,000 8,206,250 St Jude Medical* 20,000 1,192,500 ------------ 9,398,750 ------------ MEDICAL RELATED -- DRUGS 4.26% Merck & Co 125,000 6,234,375 Mylan Laboratories 375,000 8,578,125 Upjohn Co 150,000 6,356,250 ------------ 21,168,750 ------------ OFFICE EQUIPMENT 2.18% Xerox Corp 90,000 10,867,500 ------------ OIL & GAS RELATED 11.71% Apache Corp 300,000 8,737,500 Noble Affiliates 200,000 5,525,000 Petroleum Geo-Services A/S Sponsored ADR* 335,000 8,584,375 Phillips Petroleum 300,000 9,862,500 Schlumberger Ltd 100,000 6,450,000 Tidewater Inc 200,000 4,950,000 TOTAL SA Sponsored ADR Representing Ord B Shrs 204,666 6,088,814 Unocal Corp 191,000 5,562,875 Vastar Resources 80,000 2,500,000 ------------ 58,261,064 ------------ PAPER & PAPER PRODUCTS 1.14% Union Camp 100,000 5,687,500 ------------ PUBLISHING 0.64% Time Warner 75,000 $ 3,159,375 ------------ REAL ESTATE RELATED 0.33% Crescent Real Estate Equities 53,500 1,651,813 ------------ RECREATION PRODUCTS & SERVICES 2.69% Circus Circus Enterprises* 150,000 4,912,500 Gaylord Entertainment Class A 305,235 8,470,271 ------------ 13,382,771 ------------ RETAIL 6.39% McDonald's Corp 275,000 10,037,500 Safeway Inc* 250,000 9,843,750 Sears Roebuck & Co 215,000 6,960,625 Wal-Mart Stores 200,000 4,925,000 ------------ 31,766,875 ------------ SEMICONDUCTOR EQUIPMENT 8.18% Intel Corp 200,000 12,275,000 Micron Technology 160,000 12,300,000 Motorola Inc 75,000 5,606,250 Texas Instruments 140,000 10,482,500 ------------ 40,663,750 ------------ TELECOMMUNICATIONS 1.06% DSC Communications* 100,000 5,250,000 ------------ TOBACCO 2.25% Philip Morris 150,000 11,193,750 ------------ TRANSPORTATION 4.53% Federal Express* 150,000 10,762,500 Union Pacific 180,000 11,790,000 ------------ 22,552,500 ------------ TOTAL COMMON STOCKS (Cost $404,137,921) 480,621,385 ------------ SHORT-TERM INVESTMENTS -- COMMERCIAL PAPER 3.37% FINANCE RELATED 3.37% Associates Corp of North America 5.840%, 9/1/1995 (Cost $16,740,000) $16,740,000 16,740,000 ------------ TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $420,877,921#) $ 497,361,385 ============= *Security is non-income producing. #Also represents cost for income tax purposes. See Notes to Financial Statements INVESCO Growth Fund, Inc. Statement of Assets and Liabilities August 31, 1995 ASSETS Investment Securities at Value (Cost $420,877,921) $497,361,385 Cash 20,844 Receivables: Investment Securities Sold 3,607,993 Fund Shares Sold 1,541,247 Dividends and Interest 665,947 Prepaid Expenses and Other Assets 64,183 ------------ TOTAL ASSETS 503,261,599 ------------ LIABILITIES Payables: Distributions to Shareholders 169,590 Investment Securities Purchased 287,500 Fund Shares Repurchased 338,196 Accrued Distribution Expenses 1,147,357 Accrued Expenses and Other Payables 33,653 ------------ TOTAL LIABILITIES 1,976,296 ------------ Net Assets at Value $501,285,303 ============ NET ASSETS Paid-in Capital* $392,187,942 Accumulated Overdistributed Net Investment Income (27,877) Accumulated Undistributed Net Realized Gain on Investment Securities 32,641,774 Net Appreciation of Investment Securities 76,483,464 ------------ Net Assets at Value $501,285,303 ============ Net Asset Value, Offering and Redemption Price per Share $5.33 ===== * The Fund has 200 million authorized shares of common stock, par value of $0.01 per share, of which 93,991,658 were outstanding at August 31, 1995. See Notes to Financial Statements INVESCO Growth Fund, Inc. Statement of Operations Year Ended August 31, 1995 INVESTMENT INCOME INCOME Dividends $6,839,962 Interest 3,223,036 Foreign Taxes Withheld (34,221) ------------ TOTAL INCOME 10,028,777 ------------ EXPENSES Investment Advisory Fees 2,757,404 Distribution Expenses 1,173,887 Transfer Agent Fees 681,911 Administrative Fees 80,433 Custodian Fees and Expenses 31,725 Directors' Fees and Expenses 38,127 Professional Fees and Expenses 49,998 Registration Fees and Expenses 56,517 Reports to Shareholders 107,077 Other Expenses 14,874 ------------ TOTAL EXPENSES 4,991,953 ------------ NET INVESTMENT INCOME 5,036,824 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES Net Realized Gain on Investment Securities 38,774,461 Change in Net Appreciation of Investment Securities 10,770,469 ------------ NET GAIN ON INVESTMENT SECURITIES 49,544,930 ------------ Net Increase in Net Assets from Operations $54,581,754 =========== See Notes to Financial Statements INVESCO Growth Fund, Inc. Statement of Changes in Net Assets Year Ended August 31 ----------------------------------- 1995 1994 OPERATIONS Net Investment Income $ 5,036,824 $ 2,326,577 Net Realized Gain on Investment Securities 38,774,461 43,030,605 Change in Net Appreciation (Depreciation) of Investment Securities 10,770,469 (33,651,104) ----------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS 54,581,754 11,706,078 ----------------------------------- DISTRIBUTIONS TO SHAREHOLDERS Net Investment Income (5,058,251) (2,299,634) In Excess of Net Investment Income (27,877) 0 Net Realized Gain on Investment Securities (44,862,069) (4,543,653) ----------------------------------- TOTAL DISTRIBUTIONS (49,948,197) (6,843,287) ----------------------------------- FUND SHARE TRANSACTIONS Proceeds from Sales of Shares 116,103,132 177,341,865 Reinvestment of Distributions 44,471,512 6,075,869 ----------------------------------- 160,574,644 183,417,734 Amounts Paid for Repurchases of Shares (152,333,754) (183,826,443) ----------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE TRANSACTIONS 8,240,890 (408,709) ----------------------------------- Total Increase in Net Assets 12,874,447 4,454,082 NET ASSETS Beginning of Period 488,410,856 483,956,774 ----------------------------------- End of Period (Including Accumulated Undistributed (Overdistributed) Net Investment Income of ($27,877) and $21,427, respectively) $501,285,303 $ 488,410,856 ================================== FUND SHARE TRANSACTIONS Shares Sold 23,465,171 33,033,950 Shares Issued from Reinvestment of Distributions 9,743,145 1,107,074 ----------------------------------- 33,208,316 34,141,024 Shares Repurchased (30,729,512) (34,227,070) ----------------------------------- Net Increase (Decrease) in Fund Shares 2,478,804 (86,046) =================================== See Notes to Financial Statements INVESCO Growth Fund, Inc. Notes to Financial Statements NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Growth Fund, Inc. (the "Fund"), a Maryland Corporation, is registered under the Investment Company Act of 1940 (the "Act") as a diversified, open-end management investment company. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. A. SECURITY VALUATION -- Equity securities traded on national securities exchanges or in the over-the-counter market are valued at the last sale price in the market where such securities are primarily traded. If last sale 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. 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 at market value if maturity is greater than 60 days. B. 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 ex dividend date. Interest income, which may be comprised of stated coupon rate, market discount and original issue discount, is recorded on the accrual basis. Cost is determined on the specific identification basis. The Fund may have elements of risk due to concentrated investments in foreign issuers located in a specific country. Such concentrations may subject the Fund to additional risks resulting from future political or economic conditions and/or possible impositions of adverse foreign governmental laws on currency exchange restrictions. C. 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. Dividends paid by the Fund from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders. Of the ordinary income distributions declared for the year ended August 31, 1995, 100.00% qualified for the dividends received deduction available to the Fund's corporate shareholders. Investment income received from foreign sources may be subject to foreign withholding taxes. Dividend and interest income is shown gross of foreign withholding taxes in the accompanying financial statements. D. 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 expiring capital loss carryforwards. As of August 31, 1995, there were no such differences. 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 0.60% on the first $350 million of average net assets; reduced to 0.55% on the next $350 million of average net assets; and 0.50% of average net assets in excess of $700 million. In accordance with a Sub-Advisory Agreement between IFG and INVESCO Trust Company ("ITC"), a wholly owned subsidiary of IFG, investment decisions of the Fund are made by ITC. Fees for such sub-advisory services are paid by IFG. In accordance with an Administrative Agreement, the 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 $14.00 per shareholder account, or per participant in an omnibus account. 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 reimbursement of marketing and advertising expenditures to IFG (the "Distributor") to a maximum of 0.25% of average annual net assets. Amounts accrued by the Fund are available to reimburse the Distributor for actual expenditures incurred within a rolling twelve-month period. For the year ended August 31, 1995, the Fund paid the Distributor $582,942 for reimbursement of expenses incurred. NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the year ended August 31, 1995, the aggregate cost of purchases and proceeds from sales of investment securities (excluding all U.S. Government securities and short-term securities) were $462,942,405 and $464,104,166, respectively. There were no purchases or sales of U.S. Government securities. NOTE 4 -- APPRECIATION AND DEPRECIATION. At August 31, 1995, the gross appreciation of securities in which there was an excess of value over tax cost amounted to $79,338,337 and the gross depreciation of securities in which there was an excess of tax cost over value amounted to $2,854,873 resulting in net appreciation of $76,483,464. NOTE 5 -- TRANSACTIONS WITH AFFILIATES. Certain of the Fund's officers and directors are also officers and directors of IFG or ITC. The Fund has adopted an unfunded noncontributory defined benefit pension 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 25% of the retainer fee at the time of retirement. Pension expenses for the year ended August 31, 1995, included in Directors' Fees and Expenses in the Statement of Operations were $10,429. Unfunded accrued pension costs of $16,735 and pension liability of $27,164 are included in prepaid expenses and accrued expenses, respectively, in the Statement of Assets and Liabilities. INVESCO Growth Fund, Inc. Financial Highlights (For a Fund Share Outstanding throughout Each Period)
Year Ended August 31 ---------- ---------- ---------- ---------- ---------- 1995 1994 1993 1992 1991 PER SHARE DATA Net Asset Value-- Beginning of Period $ 5.34 $5.28 $4.72 $5.26 $4.37 ---------- ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS Net Investment Income 0.05 0.03 0.04 0.05 0.07 Net Gains on Securities (Both Realized and Unrealized) 0.49 0.11 1.00 0.05 1.28 ---------- ---------- ---------- ---------- ---------- Total from Investment Operations 0.54 0.14 1.04 0.10 1.35 ---------- ---------- ---------- ---------- ---------- LESS DISTRIBUTIONS Dividends from Net Investment Income+ 0.05 0.03 0.04 0.05 0.08 Distributions from Capital Gains 0.50 0.05 0.44 0.59 0.38 ---------- ---------- ---------- ---------- ---------- Total Distributions 0.55 0.08 0.48 0.64 0.46 ---------- ---------- ---------- ---------- ---------- Net Asset Value-- End of Period $5.33 $5.34 $ 5.28 $4.72 $5.26 ========== ========== ========== ========== ========== TOTAL RETURN 12.05% 2.52% 22.17% 2.04% 31.16% RATIOS Net Assets-- End of Period ($000 Omitted) $501,285 $488,411 $483,957 $408,218 $428,564 Ratio of Expenses to Average Net Assets 1.06% 1.03% 1.04% 1.04% 1.00% Ratio of Net Investment Income to Average Net Assets 1.07% 0.47% 0.72% 0.93% 1.52% Portfolio Turnover Rate 111% 63% 77% 77% 69% + Distributions in excess of net investment income for the year ended August 31, 1995, aggregated less than $0.01 on a per share basis.
Report of Independent Accountants To the Board of Directors and Shareholders of INVESCO Growth Fund, Inc. In our opinion, the accompanying statement of assets and liabilities, including the statement of investment securities, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of INVESCO Growth Fund, Inc.(the "Fund") at August 31, 1995, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 1995 by correspondence with the custodian and the application of alternative auditing procedures for unsettled security transactions, provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP Denver, Colorado October 2, 1995 FAMILY OF FUNDS Newspaper Fund Name Fund Code Ticker Symbol Abbreviation - -------------------------------------------------------------------------------- International Latin American Growth 34 IVSLX LatinAmGr European Small Company 37 * * European 56 FEURX Europ Pacific Basin 54 FPBSX PcBas International Growth 49 FSIGX IntlGr - -------------------------------------------------------------------------------- Sector Energy 50 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 Technology 55 FTCHX Tech Worldwide Capital Goods 38 ISWGX WldCap Worldwide Communications 39 ISWCX WldCom - -------------------------------------------------------------------------------- Growth, Value Emerging Growth 60 FIEGX Emgrth Value Equity 46 FSEQX ValEq Small Company 74 IDSCX DivSmCo Dynamics 20 FIDYX Dynm Growth 10 FLRFX Grwth - -------------------------------------------------------------------------------- Equity-Income Industrial Income 15 FIIIX IndInc Utilities 58 FSTUX Util - -------------------------------------------------------------------------------- Balanced/Multiple-Asset Multi-Asset Allocation 70 IMAAX MulAstAl Balanced 71 IMABX Bal Total Return 48 FSFLX TotRtn - -------------------------------------------------------------------------------- Bond High Yield 31 FHYPX HiYld Select Income 30 FBDSX SelInc U.S. Government Securities 32 FBDGX USGvt Intermediate Government Bond 47 FIGBX IntGov Short-Term Bond 33 INIBX ShTrBd - -------------------------------------------------------------------------------- Tax-Exempt Tax-Free Long-Term Bond 35 FTIFX TxFre Tax-Free Intermediate Bond 36 * * - -------------------------------------------------------------------------------- Money Market Tax-Free Money Fund 40 FFRXX N/A Cash Reserves 25 FDSXX N/A U.S. Government Money Fund 44 FUGXX N/A * 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. INVESCO FUNDS To receive general information and prospectuses on any of INVESCO's funds or retirement plans, or to obtain current account or price information, Call toll-free: 1-800-525-8085 To reach PAL(r), your 24-hour Personal Account Line, call: 1-800-424-8085 Or write to: INVESCO Funds Group, Inc., Distributor Post Office Box 173706 Denver, Colorado 80217-3706 This information must be preceded or accompanied by a current prospectus. -----END PRIVACY-ENHANCED MESSAGE-----