-----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, Mx3h+yJ9qiO8aBqG9W+bWbfzZxFmTgyVef+cAQCbZNmO9jisqHss0CaR2GAfDbxL yFBJ6sCUhFwkrBWCl4AnpA== 0000110042-96-000004.txt : 19960429 0000110042-96-000004.hdr.sgml : 19960429 ACCESSION NUMBER: 0000110042-96-000004 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960426 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: 96551123 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 SEMIANNUAL REPORT February 29, 1996 INVESCO GROWTH FUND, INC. A Smart Choice For Seeking Steady Capital Growth INVESCO FUNDS Economic Overview March 1996 1995 will long stand out as a banner year for U.S. investors. The S&P 500 achieved a total return of 37.44% for the 12 months ended 12/31/95; only the fourth time in fifteen years the broad market returned over 25%. Fixed-income markets followed suit, with the Lehman Government/Corporate Bond Index gaining 19.24%.(1) These spectacular results were influenced by a number of positive economic factors. Inflation was low at a mere 2.8%, unemployment was down, and growth in Gross Domestic Product slowed to apparently sustainable levels. In addition, the Federal Reserve Board appeared to take a pro-growth stand, easing rates by .50% during the second half of 1995. In 1996, however, a repeat performance appears unlikely. During January and February, the stock and bond markets whipsawed in the wake of stalled federal budget negotiations. For the first two months of 1996, the Dow Jones Industrial Average advanced 7.60%. However, in response to political and economic uncertainty, it had swung up and down more than 50 points 24 times by the end of February, versus 29 times for all of 1995.(1) Bond markets also reflected the general political and economic uncertainty. The Lehman Corporate/Government Bond Index showed a negative 2.12% return in February, despite a further interest-rate reduction of .25% on January 31. It seems likely that, over the short-term, the securities markets will continue to provide roller-coaster returns. However, while a budget settlement in Washington remains uncertain, it is expected that the Federal Reserve Board will continue to gradually ease short-term interest rates during the year. As a result, we anticipate a slow growth trend for the economy, as well as the stock and bond markets, during the remainder of 1996. /s/ R. Dalton Sim - -------------------- R. Dalton Sim Chairman and President INVESCO Trust Company Growth Fund Growth Fund Average Annualized Total Return as of 2/29/96(2) 1 year 31.95% ----------------------------------- 5 years 13.01% ----------------------------------- 10 years 11.19% ----------------------------------- INVESCO Growth Fund achieved a total return of 13.71% for the six-month period ended 2/29/96,(2) below the 15.26% returned by the S&P 500 broad market index for the same period. However, the fund significantly outperformed its peers as measured by the Lipper Growth Fund Index, which had a total return of 9.27% for the six months measured.(1) The following line graph illustrates the growth of the S&P 500 compared to the value of a $10,000 investment in INVESCO Growth Fund, plus reinvested dividends and capital gain distributions, for the ten years ended 2/29/96.(2) The chart and other total return figures cited reflect the fund's operating expenses. However, the index does not have expenses, which would, of course, have lowered its performance. Graph: Growth Fund Total Return Performance (2) 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 and Lipper Growth Fund Indexes, assuming in each case reinvestment of all dividends and capital gain distributions, for the ten year period ended 2/29/96. Strategic Overview In recent months, growth funds in general have underperformed the S&P 500, largely due to the effect of unusually strong performance from cyclical issues on the broad market. However, as mentioned above, INVESCO Growth Fund has exceeded the average for growth funds over the six months measured.(2) The fund's strong relative performance can be attributed to a recent focus on growth-oriented, larger-capitalization stocks. While some are not classic "growth" companies, names such as Sears Roebuck & Co and Boeing Co do offer the potential for above-market returns. Others, such as PepsiCo Inc and Coca-Cola Co, serve the fund by providing large-cap, classic growth opportunities. In choosing equities for the fund, we attempt to identify companies whose revenue prospects are not dependent on overall economic cycles. Moreover, if their stocks are priced below their inherent value, if the companies have cut costs or restructured, or if there is pent-up demand for goods and services, they are likely candidates for investment. Graph: Fund Diversification by Value(3) 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 Net Cash & Short Term for the periods ending 2/95, 8/95, and 2/96. Retail. A restructuring that included shedding non-core subsidiaries, such as Dean Witter Discover, Allstate Insurance and Caldwell Banker, has allowed Sears to focus on making its fundamental retail business profitable. However, the slow retail environment depressed the company's stock value up until mid-1995, resulting in the type of large-cap, low-cost, growth-oriented stock which Growth Fund seeks. And with recent retail upswings in response to pent-up consumer demand, Sears returned more than 40% to the fund over the past six months. Air Transportation. Aging fleets worldwide, strict noise regulations, and more intense scrutiny of safety records have increased pressure to retire fleets and bring on new aircraft. This more constant level of demand means that traditionally cyclical aircraft producers such as Boeing now provide strong growth opportunities regardless of the economic cycle. Corporate Outsourcing. As virtually every industry focuses on downsizing, a trend has developed toward "outsourcing" projects as an alternative to maintaining costly internal divisions. During periods of economic slowing we expect that this trend will strengthen, responding to greater cost-cutting and increasing need for these services. Companies such as Computer Associates International and General Motors Class E (formerly EDS) have capitalized on this demand, providing strong returns for the fund in recent months. Sector Analysis In addition to locating growth opportunities in industries with changing fundamentals, we have capitalized on the explosive growth occurring in various sectors. Drug companies such as Pharmacia and Upjohn Inc have met the fund's criteria and provided superior returns, both from their fundamental strengths and renewed momentum within the Health Care sector. Similarly, Sterling Software provided exceptional opportunity in Technology, as did BankAmerica Corp and Wells Fargo in Finance. Looking Forward In the face of a projected economic slowing, large capitalization stocks can often provide a substantial base for withstanding potential market downturns. We continue to focus our selection on long-established, large companies with unique opportunities for growth despite the market cycle. And as we move through 1996, we believe that this strategy will leave us well-positioned to withstand the uncertain market environment. Fund Management INVESCO Growth Fund is managed by INVESCO Trust Company vice president Douglas N. Pratt. Mr. Pratt 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. Prior to joining INVESCO, he was an equity analyst with Loomis, Sayles & Company. In addition to managing Growth Fund, Mr. Pratt is manager of INVESCO Strategic Financial Services Portfolio. (1) The S&P 500 and Dow Jones Industrial Average are unmanaged indexes considered representative of the performance of the broad U.S. stock market. The Lehman Government/Corporate Index is an unmanaged index illustrating the broad fixed-income market. The Lipper Growth Fund Index is an unmanaged index representative of Growth Funds measured by Lipper Analytical Services, Inc. (2) Total return assumes reinvestment of dividends and capital gain distributions for the periods indicated. Investment return and principal value will fluctuate so that, when redeemed, an investor's shares may be worth more or less than when purchased. Of course, past performance is not a guarantee of future results. (3) Holdings are subject to change. INVESCO Fund Codes These two-digit codes appear after your account number on Investment Summaries and confirmations. You may also use them to request information about specific funds on PAL(R), your Personal Account Line. Money Market Funds 44 U.S. Government Money Fund 25 Cash Reserves 40 Tax-Free Money Fund Tax-Exempt Funds 36 Tax-Free Intermediate Bond 35 Tax-Free Long-Term Bond Income Funds 33 Short-Term Bond 32 U.S. Government Securities 47 Intermediate Government Bond 30 Select Income 31 High Yield Multiple Asset Funds 71 Balanced 70 Multi-Asset Allocation 48 Total Return Equity-Income Funds 15 Industrial Income 58 Utilities Growth Funds 10 Growth 20 Dynamics 74 Small Company 60 Emerging Growth 46 Value Equity Sector Funds 50 Energy 59 Environmental Services 57 Financial Services 51 Gold 52 Health Sciences 53 Leisure 55 Technology 38 Worldwide Capital Goods 39 Worldwide Communications International Funds 49 International Growth 56 European 37 European Small Company 34 Latin American Growth 41 Asian Growth 54 Pacific Basin For more information about any of the INVESCO Funds, including management fees and expenses, please call us at 1-800-525-8085 for a prospectus. Read it carefully before you invest or send money. INVESCO Growth Fund, Inc. Ten Largest Common Stock Holdings February 29, 1996 Description Value - ------------------------------------------------------------------------ Columbia/HCA Healthcare $20,531,250 Boeing Co 20,281,250 International Business Machines 20,233,125 Sterling Software 19,987,500 Tektronix Inc 19,965,000 BankAmerica Corp 19,950,000 Digital Equipment 19,800,000 Wells Fargo 19,730,000 Intel Corp 19,114,063 Kroger Co 18,562,500 Composition of holdings is subject to change. INVESCO Growth Fund, Inc. Statement of Investment Securities February 29, 1996 UNAUDITED Shares or Principal Description Amount Value ------------- COMMON STOCKS 99.44% AEROSPACE & DEFENSE 6.31% Boeing Co 250,000 $20,281,250 Lockheed Martin 200,000 15,250,000 ------------- 35,531,250 ------------- BANKING 8.97% BankAmerica Corp 280,000 19,950,000 First Chicago NBD 250,000 10,843,750 Wells Fargo 80,000 19,730,000 ------------- 50,523,750 ------------- CHEMICALS 2.37% Potash Corp Saskatchewan 180,000 13,365,000 ------------- COMPUTER RELATED 15.12% Computer Associates International 200,000 13,750,000 Digital Equipment* 275,000 19,800,000 General Motors Class E 200,000 11,425,000 International Business Machines 165,000 20,233,125 Sterling Software* 300,000 19,987,500 ------------- 85,195,625 ------------- ELECTRONICS 6.64% Nokia Corp Sponsored ADR Representing Ord A Shrs 500,000 17,437,500 Tektronix Inc 440,000 19,965,000 ------------- 37,402,500 ------------- FOOD PRODUCTS & BEVERAGES 10.67% Anheuser-Busch Cos 220,000 14,822,500 Coca-Cola Co 220,000 17,765,000 Heinz (H J) Co 399,800 13,593,200 PepsiCo Inc 220,000 13,915,000 ------------- 60,095,700 ------------- HEALTH CARE RELATED 3.64% Columbia/HCA Healthcare 375,000 20,531,250 ------------- MEDICAL PRODUCTS 3.04% Baxter International 375,000 17,156,250 ------------- MEDICAL RELATED - DRUGS 2.93% American Home Products 125,000 12,312,500 Pharmacia & Upjohn Inc* 100,500 4,208,438 ------------- 16,520,938 ------------- OFFICE EQUIPMENT 2.31% Xerox Corp 100,000 13,025,000 ------------- OIL & GAS RELATED 6.41% Amoco Corp 265,000 18,417,500 Anadarko Petroleum 325,000 17,712,500 ------------- 36,130,000 ------------- RETAIL 19.83% Gap Inc 300,000 16,087,500 Kroger Co* 500,000 18,562,500 McDonald's Corp 300,000 15,000,000 Price/Costco Inc* 300,000 5,175,000 Rite Aid 500,000 15,750,000 Safeway Inc* 525,000 15,684,375 Sears Roebuck & Co 315,000 14,293,125 Starbucks Corp* 400,000 7,050,000 Walgreen Co 125,000 4,125,000 ------------- 111,727,500 ------------- SEMICONDUCTOR EQUIPMENT 3.39% Intel Corp 325,000 19,114,062 ------------- TEXTILES & APPAREL MANUFACTURERS 2.25% NIKE Inc Class B 195,000 12,650,625 ------------- TRANSPORTATION 3.24% AMR Corp* 55,000 4,826,250 Continental Airlines Class B* 100,000 4,800,000 KLM Royal Dutch Airlines New York Registered Shrs 125,000 4,156,250 UAL Corp* 25,000 4,465,625 ------------- 18,248,125 ------------- UTILITIES 2.32% U S WEST Communications Group 400,000 13,100,000 ------------- TOTAL COMMON STOCKS (Cost $501,577,536) $560,317,575 ------------- SHORT-TERM INVESTMENTS - COMMERCIAL PAPER 0.56% FINANCE RELATED 0.56% Associates Corp of North America 5.430%, 3/1/1996 (Cost $3,175,000) 3,175,000 3,175,000 ------------- TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $504,752,536) (Cost for Income Tax Purpose $505,638,907) $563,492,575 ============= * Security is non-income producing. See Notes to Financial Statements INVESCO Growth Fund, Inc. Statement of Assets and Liabilities February 29, 1996 UNAUDITED ASSETS Investment Securities at Value (Cost $504,752,536) $563,492,575 Cash 13,772 Receivables: Fund Shares Sold 209,433 Dividends and Interest 919,529 Prepaid Expenses and Other Assets 65,001 ------------- TOTAL ASSETS 564,700,310 ------------- LIABILITIES Payables: Distributions to Shareholders 77,677 Investment Securities Purchased 3,733,587 Fund Shares Repurchased 1,646,770 Accrued Distribution Expenses 1,225,621 Accrued Expenses and Other Payables 36,671 ------------- TOTAL LIABILITIES 6,720,326 ------------- Net Assets at Value $557,979,984 ============= NET ASSETS Paid-in Capital* $461,234,897 Accumulated Undistributed Net Investment Income 29,733 Accumulated Undistributed Net Realized Gain on Investment Securities and Foreign Currency Transactions 37,975,315 Net Appreciation of Investment Securities and Foreign Currency Transactions 58,740,039 ------------- Net Assets at Value $557,979,984 ============= Net Asset Value, Offering and Redemption Price per Share $5.16 ====== * The Fund has 200 million authorized shares of common stock, par value of $0.01 per share, of which 108,052,770 were outstanding at February 29, 1996. See Notes to Financial Statements INVESCO Growth Fund, Inc. Statement of Operations Six Months Ended February 29, 1996 UNAUDITED INVESTMENT INCOME INCOME Dividends $3,661,039 Interest 948,446 Foreign Taxes Withheld (11,640) ------------- TOTAL INCOME 4,597,845 ------------- EXPENSES Investment Advisory Fees 1,549,695 Distribution Expenses 662,544 Transfer Agent Fees 328,064 Administrative Fees 44,886 Custodian Fees and Expenses 46,565 Directors' Fees and Expenses 16,940 Professional Fees and Expenses 20,867 Registration Fees and Expenses 28,308 Reports to Shareholders 51,182 Other Expenses 22,781 ------------- TOTAL EXPENSES 2,771,832 Fees and Expenses Paid Indirectly (24,629) ------------- NET EXPENSES 2,747,203 ------------- NET INVESTMENT INCOME 1,850,642 ------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES Net Realized Gain on Investment Securities and Foreign Currency Transactions 84,713,327 Change in Net Depreciation of Investment Securities and Foreign Currency Transactions (17,743,425) ------------- NET GAIN ON INVESTMENT SECURITIES 66,969,902 ------------- Net Increase in Net Assets from Operations $68,820,544 ============= See Notes to Financial Statements INVESCO Growth Fund, Inc. Statement of Changes in Net Assets Six Months Year Ended Ended February 29 August 31 ------------- ------------- 1996 1995 UNAUDITED OPERATIONS Net Investment Income $1,850,642 $5,036,824 Net Realized Gain on Investment Securities and Foreign Currency Transactions 84,713,327 38,774,461 Change in Net Appreciation (Depreciation) of Investment Securities and Foreign Currency Transactions (17,743,425) 10,770,469 ------------- ------------- NET INCREASE IN NET ASSETS FROM OPERATIONS 68,820,544 54,581,754 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS Net Investment Income (1,793,032) (5,058,251) In Excess of Net Investment Income 0 (27,877) Net Realized Gain on Investment Securities (79,379,786) (44,862,069) ------------- ------------- TOTAL DISTRIBUTIONS (81,172,818) (49,948,197) ------------- ------------- FUND SHARE TRANSACTIONS Proceeds from Sales of Shares 122,246,660 116,103,132 Reinvestment of Distributions 72,251,903 44,471,512 ------------- ------------- 194,498,563 160,574,644 Amounts Paid for Repurchases of Shares (125,451,608) (152,333,754) ------------- ------------- NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS 69,046,955 8,240,890 ------------- ------------- Total Increase in Net Assets 56,694,681 12,874,447 NET ASSETS Beginning of Period 501,285,303 488,410,856 ------------- ------------- End of Period (Including Accumulated Undistributed (Overdistributed) Net Investment Income of $29,733 and ($27,877), respectively) $557,979,984 $501,285,303 ============= ============= FUND SHARE TRANSACTIONS Shares Sold 22,842,570 23,465,171 Shares Issued from Reinvestment of Distributions 14,566,753 9,743,145 ------------- ------------- 37,409,323 33,208,316 Shares Repurchased (23,348,211) (30,729,512) ------------- ------------- Net Increase in Fund Shares 14,061,112 2,478,804 ============= ============= See Notes to Financial Statements INVESCO Growth Fund, Inc. Notes to Financial Statements UNAUDITED NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Growth Fund, Inc. (the "Fund"), was incorporated in Maryland. The investment objective of the Fund is to seek long- term capital growth. The Fund is registered under the Investment Company Act of 1940 (the "Act") as a diversified, open-end management investment company. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues 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. 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. 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 dividend if such information is obtained subsequent to the ex dividend date. Interest income, which may be comprised of stated coupon rate, market discount and original issue discount, is recorded on the accrual basis. 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 or currency exchange restrictions. Net realized and unrealized gain or loss from investments includes fluctuations from currency exchange rates and fluctuations in market value. 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. 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 expired capital loss carryforwards. E. EXPENSES - Under an agreement between the Fund and the Fund's Custodian, agreed upon Custodian Fees and Expenses are reduced by credits granted by the Custodian from any temporarily uninvested cash. Similarly, Other Expenses, which include Pricing Expenses, are reduced by credits earned by the Fund from security brokerage transactions under certain broker/serices arrangements with third parties. Such credits are included in Fees and Expenses Paid Indirectly in the Statement of Operations. For the six months ended February 29, 1996, Fees and Expenses Paid Indirectly consisted of $23,715 included in Custodian Fees and Expenses and $914 included in Other Expenses. 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% on 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 six months ended February 29, 1996, the Fund paid the Distributor $584,280 for reimbursement of expenses incurred. NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months ended February 29, 1996, the aggregate cost of purchases and proceeds from sales of investment securities (excluding all U.S. Government securities and short-term securities) were $666,197,808 and $653,471,575, respectively. There were no purchases or sales of U.S. Government securities. NOTE 4 - APPRECIATION AND DEPRECIATION. At February 29, 1996, the gross appreciation of securities in which there was an excess of value over tax cost amounted to $69,293,493 and the gross depreciation of securities in which there was an excess of tax cost over value amounted to $11,439,825, resulting in net appreciation of $57,853,668. 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 six months ended February 29, 1996, included in Directors' Fees and Expenses in the Statement of Operations were $2,830. Unfunded accrued pension costs of $12,721 and pension liability of $25,980 are included in Prepaid Expenses and Accrued Expenses, respectively, in the Statement of Assets and Liabilities. 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 5% of the Net Assets at Value of the Fund. The Fund agrees to pay annual fees and interest on the unpaid principal balance based on prevailing market rates as defined in the agreement. For the six months ended February 29, 1996, there were no such borrowings. INVESCO Growth Fund, Inc. Financial Highlights (For a Fund Share Outstanding Throughout Each Period)
Six Months Ended February 29 Year Ended August 31 ------------ --------------------------------------------------------- 1996 1995 1994 1993 1992 1991 UNAUDITED PER SHARE DATA Net Asset Value - Beginning of Period $5.33 $5.34 $5.28 $4.72 $5.26 $4.37 ------------ --------------------------------------------------------- INCOME FROM INVESTMENT OPERATIONS Net Investment Income 0.02 0.05 0.03 0.04 0.05 0.07 Net Gains on Securities (Both Realized and Unrealized) 0.67 0.49 0.11 1.00 0.05 1.28 ------------ --------------------------------------------------------- Total from Investment Operations 0.69 0.54 0.14 1.04 0.10 1.35 ------------ --------------------------------------------------------- LESS DISTRIBUTIONS Dividends from Net Investment Income+ 0.02 0.05 0.03 0.04 0.05 0.08 Distributions from Capital Gains 0.84 0.50 0.05 0.44 0.59 0.38 ------------ --------------------------------------------------------- Total Distributions 0.86 0.55 0.08 0.48 0.64 0.46 ------------ --------------------------------------------------------- Net Asset Value - End of Period $5.16 $5.33 $ 5.34 $5.28 $4.72 $5.26 ============ ========================================================= TOTAL RETURN 13.71%* 12.05% 2.52% 22.17% 2.04% 31.16% RATIOS Net Assets - End of Period ($000 Omitted) $557,980 $501,285 $488,411 $483,957 $408,218 $428,564 Ratio of Expenses to Average Net Assets 0.52%*@ 1.06% 1.03% 1.04% 1.04% 1.00% Ratio of Net Investment Income to Average Net Assets 0.35%* 1.07% 0.47% 0.72% 0.93% 1.52% Portfolio Turnover Rate 130%* 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. * 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.
FAMILY OF FUNDS Newspaper Fund Name Fund Code Ticker Symbol Abbreviation - -------------------------------------------------------------------------------- International Latin American Growth 34 IVSLX LatinAmGr European Small Company 37 IVECX EuroSmCo European 56 FEURX Europ Pacific Basin 54 FPBSX PcBas International Growth 49 FSIGX IntlGr Asian Growth 41 * * - -------------------------------------------------------------------------------- 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.,(SM) Distributor Post Office Box 173706 Denver, Colorado 80217-3706 If you're in Denver, pleas visit one of our convenient Investor Centers: Cherry Creek, 155-B Fillmore Street; Denver Tech Center 7800 East Union Avenue, Lobby Level This information must be preceded or accompanied by an effective prospectus. -----END PRIVACY-ENHANCED MESSAGE-----