-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, KWD3mQ61mBJkQ0dBil95SISxsw86x7hBQKjRRWVDvfBWdNLoVpAGY7lJa2qbpnsS JaDXjKzzjMw/GssX/NfoOw== 0000789940-95-000002.txt : 19950424 0000789940-95-000002.hdr.sgml : 19950424 ACCESSION NUMBER: 0000789940-95-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950228 FILED AS OF DATE: 19950418 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INVESCO VALUE TRUST CENTRAL INDEX KEY: 0000789940 STANDARD INDUSTRIAL CLASSIFICATION: 0000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04595 FILM NUMBER: 95529318 BUSINESS ADDRESS: STREET 1: 7800 EAST UNION AVE CITY: DENVER STATE: CO ZIP: 80237 BUSINESS PHONE: 8005541156 MAIL ADDRESS: STREET 1: P.O. BOX 173706 CITY: DENVER STATE: CO ZIP: 80217-3706 FORMER COMPANY: FORMER CONFORMED NAME: FINANCIAL SERIES TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: INVESCO INSTITUTIONAL SERIES TRUST DATE OF NAME CHANGE: 19910117 FORMER COMPANY: FORMER CONFORMED NAME: SHEARWATER EQUITY INC DATE OF NAME CHANGE: 19870810 N-30D 1 SEMIANNUAL REPORT February 28, 1995 INVESCO VALUE TRUST INVESCO FUNDS Market Overview March 1995 Perversely, to the securities markets, strong economic growth can be viewed as a negative, a harbinger of inflation. Some analysts are worried about the figures for late 1994: Gross domestic product (GDP) rose 4.6% for the fourth quarter. That was the sixth straight quarter in which the GDP growth rate was 2.7% or better, and current indications are that growth will be as much as 3% in the current quarter. Corporate earnings growth continued strong throughout the fourth quarter for industries as diverse as airlines, entertainment, and packaging. And 1994 showed the biggest leap in corporate profits for at least two decades. Recently we have seen signs that economic growth is slowing, though. For instance, hourly wages and hours worked remained flat or dropped through February. These factors work together in relieving pressure for increases in wages and benefits -- key contributors to rising inflation. In fact, employer-paid health care costs actually decreased about 1% last year. Another encouraging sign, relative to inflation, is industrial production. The output at U.S. factories and mines grew at just 0.4% in January, half the rate of each of the two preceding months. New factory orders slowed even more. Finally, consumer confidence -- and spending plans -- are also lessening. There are still legitimate concerns regarding inflation. The most widely used index, the CPI, rose 0.3% in January. Moreover, unemployment surprisingly dropped to 5.4% in February. As a consequence of these and other signs, the next few months may bring additional modest increases in the Fed Funds rate. By increasing short-term rates, the Federal Reserve is attempting a "soft landing" -- that is, to moderate the current economic expansion before inflation heats up. Over the past twelve months, the Fed has doubled short-term rates. Particularly during the first half of 1994, the markets reacted poorly to these increases -- the Lehman Government/Corporate Bond Index had a total return of negative 4.36% over the six months ended 6/30/94. Bond prices made up some of the lost ground during the latter half of 1994; still, for all of 1994, the Lehman Index dropped 3.53%. Last year was the worst performance ever by bonds, a strong contrast to normal fixed-income returns over the past 50 years. Stocks took the initial increases to interest rates poorly, and the S&P 500 lost 3.35% over the first six months of 1994. But they rebounded, gaining 4.87% over the following six months. While inflation is not likely to approach the eight percent-plus levels seen in the early 1980s, it will probably be higher than the 2.5% to 3% range seen during recent years. The INVESCO economic forecast calls for steadily increasing inflation. We anticipate that consumer prices could rise as much as 3.5% to 4.0% year-over-year by the fourth quarter of 1995; that compares to an increase of just 2.7% in 1993 and 2.8% in 1994. In 1994, the markets' performance reflected concern that the Fed would overshoot its goal, bringing growth lower than the 2.5% target -- or worse, induce a recession. Now, however, investors appear to be gaining confidence that interest rates are stabilizing. Investors should keep in mind that any inflation surprises, or a spate of disappointing corporate earnings reports, could trigger corrections. One final factor to bear in mind is the decline of the U.S. dollar against major world currencies. It works in favor of U.S. companies exporting goods and services, but it simultaneously discourages foreign investment in U.S. fixed-income securities -- and may encourage the Federal Reserve Board to increase short-term interest rates. Intermediate Government Bond Fund The line graph on page 2 illustrates the value of a $10,000 investment in INVESCO Intermediate Government Bond Fund, plus reinvested dividends and capital gain distributions, for the period from inception (5/86) through 2/28/95. (Of course, past performance is not a guarantee of future returns.)* The chart and other total return figures cited reflect the fund's operating expenses, but the index does not have expenses, which would have lowered its performance. For the six months ended 2/28/95, INVESCO Intermediate Government Bond Fund had a total return of 3.02%. During the same period, the Lehman Government Bond-Intermediate Index had a total return of 2.64%. (Of course, past performance is not a guarantee of future results.)* During the first half of 1994, we adopted a somewhat defensive posture to help protect against rising interest rates. Bond duration was maintained at around three years, the lower end of the intermediate maturity scale. Since September, however, our strategy has changed. As interest rates rose, we found better values at the longer end of the intermediate yield curve. By 2/28/95, we had extended bond duration to over seven years. This is near the maximum end of our range since most of the securities within the portfolio are typically three to five years in maturity. This change occurred as yields rose to levels where they represented good value given inflation trends. Intermediate Government Bond Fund Average Annualized Total Return* 12/31/94 2/28/95 1 Year -1.68% 2.62% 5 Years 7.16% 8.05% Since inception (5/86) 6.53% 6.87% One other strategic shift should be noted. We have taken the allocation to government agency bonds down, in favor of direct Treasury obligations. The reason is the difference between yields on these two types of issues. For instance, at present the spread is relatively narrow between a Treasury note and a GNMA with a similar maturity. Under these circumstances, the returns of GNMAs tend to underperform Treasuries. Conversely, when spreads are wide, we may invest as much as 70% of assets in government agency securities. Intermediate Government Bond Fund is managed by James O. Baker. Before joining INVESCO, he was associated with Willis Investment Counsel, Morgan Keegan, and Drexel Burnham Lambert. Mr. Baker holds a BA from Mercer University. Ralph H. Jenkins, Jr. assists in managing the fund. He began his investment career in 1969 and is both a Chartered Financial Analyst and Chartered Investment Counselor. He earned his MA at the University of Alabama and a BBC from Auburn University. Graph: This line graph represents a comparison of the value of a $10,000 investment in the INVESCO Intermediate Government Bond Fund to the value of a $10,000 investment in the Lehman Intermediate Government Bond Index, assuming in both cases reinvestment of all dividends and capital gain distributions, for the period from inception (5/86) through 2/28/95. Total Return Fund The line graph on page 3 illustrates the value of a $10,000 investment in INVESCO Total Return Fund, plus reinvested dividends and capital gain distributions, for the period from inception (9/87) through 2/28/95. (Of course, past performance is not a guarantee of future returns.)* The chart and other total return figures cited reflect the fund's operating expenses, but the indices do not have expenses, which would, of course, have lowered their performance. For the six months ended 2/28/95, INVESCO Total Return Fund had a total return of 3.55%. During the same period, the S&P 500 achieved a total return of 3.96%, while the Lehman Government/Corporate Bond Index had a total return of 3.09%. (Of course, past performance is not a guarantee of future results.)* Graph: Total Return Fund Diversification by Value of Net Assets This graph reflects the allocation of the Total Return Fund's portfolio by value of net assets in basic materials, capital goods and construction, consumer cyclical, consumer staples, diversified, energy, finance, technology, transportation and services, utilities, fixed income, and cash and equivalents securities as of 2/8/94, 8/31/94 and 2/28/95. Over the past six months, the managers have executed a significant change in fund strategy. As the bar chart illustrates, we increased the portfolio weighting of fixed-income to 39.57% of net assets, up from 33.52% at 8/31/94. The shift was accomplished by closing eight equity positions, with most of the proceeds being reinvested on the bond side -- where we find securities more attractively priced. Graph: This line graph represents a comparison of the value of a $10,000 investment in the INVESCO Total Return Fund to the value of a $10,000 investment in the Lehman Government/Corporate Bond and S&P 500 Indexes, assuming in each case reinvestment of all dividends and capital gain distributions, for the period from inception (9/87) through 2/28/95. At the same time, we have substantially lengthened bond duration. Our reasoning was similar to that which guided the managers of Intermediate Government Bond Fund: We are now finding better values at the longer end of the yield curve. By 2/28/95, we had extended bond duration to over seven years. Bond quality remains high, with all holdings rated A or better. The majority, of course, are direct Treasury obligations, which are attractively valued and have negligible credit risk. Three areas within equities produced particularly well for us over the past six months -- consumer staples, technology, and basic materials. In some cases, we believe the stocks have peaked. Consequently, we have taken profits, and closed or trimmed a number of holdings. Total Return Fund Average Annualized Total Return* 12/31/94 2/28/95 1 Year 2.52% 7.01% 5 Years 9.51% 11.16% Since inception (9/87) 10.85% 11.30% Our sole new equity position is Shaw Industries. This is a classic value stock. Shaw is the world's largest carpet manufacturer, whose price was battered in 1994 along with housing stocks. But with its strong fundamentals and dominant market position, this firm fits well in our stable of undervalued holdings with promising long-term prospects. Total Return Fund is managed by Edward C. Mitchell, Jr., President of INVESCO Capital Management, Inc. He began his investment career in 1969. He holds an MBA from the University of Virginia and a BA from the University of Colorado. Mr. Mitchell is a Chartered Financial Analyst. He is assisted in the fund's management by David S. Griffin, who is also a CFA. Mr. Griffin is a twelve-year veteran of the investment business, and holds an MBA from the College of William and Mary, as well as a BA from Ohio Wesleyan University. Value Equity Fund The line graph on the next page illustrates the value of a $10,000 investment in INVESCO Value Equity Fund, plus reinvested dividends and capital gain distributions, for the period from inception (5/86) through 2/28/95. (Of course, past performance is not a guarantee of future returns.)* Graph: Value Equity Fund Diversification by Value of Net Assets This graph reflects the allocation of the Value Equity Fund's portfolio by value of net assets in basic materials, capital goods and construction, consumer cyclical, consumer staples, diversified, energy, finance, technology, transportation and services, utilities, and cash and equivalent securities as of 2/28/94, 8/31/94 and 2/28/95. The chart and other total return figures cited reflect the fund's operating expenses, but the indices do not have expenses, which would, of course, have lowered their performance. For the six months ended 2/28/95, INVESCO Value Equity Fund had a total return of 4.72%. During the same period, the S&P 500 achieved a total return of 3.96%. (Of course, past performance is not a guarantee of future results.)* Value Equity Fund Average Annualized Total Return* 12/31/94 2/28/95 1 Year 4.04% 8.74% 5 Years 9.07% 11.62% Since inception (5/86) 10.46% 10.99% Over the past six months, the markets have evinced concern about some sectors which are cyclical in nature. At the same time, investors have favored companies offering stable dividends and strong fundamentals -- the type of value stocks which are featured throughout our holdings. This market sentiment aided the portfolio as it outperformed the index. Substantial exposure to health-care issues was another positive factor. Our portfolio strategy relies on selection of individual stocks, rather than concentrating on particular industry sectors. Hence, over the past six months we have taken new positions in a variety of market segments, including energy, consumer cyclicals, finance, and capital goods & construction. For instance, Fleming Companies is a new holding in consumer staples. This is a very traditional value stock: it offers a high dividend yield as well as high cash flow, and yet in the recent past the market has expressed relatively low expectations for price appreciation. We expect over time that strong fundamentals will be rewarded by price advances. Maytag Corp, on the other hand, is undergoing a "mini-restructuring" which we believe will increase its value. New management has been brought in, who are committed to reducing debt and focusing on their core domestic markets. The defense industry is seeing accelerated consolidation, which tends to have a positive effect on stock prices. We recently opened a new position in E-Systems Inc, which is often rumored to be a takeover candidate. While financial stocks as a group suffered in 1994, that retreat has opened room for price advances in the coming months. We chose to add to the portfolio Wachovia Corp, a high quality bank in the southeast. This firm has strong fundamentals allied to conservative management, and the depressed price is a buying opportunity. On the other hand, we closed our position in First of America Bank, because we felt management there has diluted value by too many acquisitions. Graph: This line graph represents a comparison of the value of a $10,000 investment in the INVESCO Value Equity Fund to the value of a $10,000 investment in the S&P 500 Index, assuming in both cases reinvestment of all dividends and capital gain distributions, for the period from inception (5/86) through 2/28/95. Value Equity Fund is managed by Michael C. Harhai. Mr. Harhai began his investment career in 1972; before joining INVESCO, he served as a portfolio manager with Citizens & Southern Investment Advisors, Inc., and later as head of the equity balanced group with Sovran Capital Management Corp. He holds a BA from the University of South Florida and an MBA from the University of Central Florida. Mr. Harhai is a Chartered Financial Analyst, as is Terrence Irrgang, who assists in managing the fund. Mr. Irrgang is a 13-year veteran of the investment business, and holds an MBA from Temple University, as well as a BA from Gettysburg College. *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 Lehman Government/Corporate Bond Index is an unmanaged index considered representative of the broad bond market, while the Lehman Government Bond-Intermediate Index is an unmanaged index of government bonds with average maturities under 10 years. 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, your Personal Account Line. Value Trust 47 Intermediate Government Bond 48 Total Return 46 Value Equity 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 30 Select Income 31 High Yield Multiple Asset Funds 71 Balanced 70 Multi-Asset Allocation Equity-Income Funds 15 Industrial Income 58 Utilities Growth Funds 10 Growth 20 Dynamics 74 Small Company 60 Emerging Growth 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 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 Value Trust Ten Largest Common Stock Holdings February 28, 1995 Description Value TOTAL RETURN Fund International Business Machines $5,267,500 Computer Associates International 5,187,000 Lilly (Eli) & Co 5,025,000 American Home Products 4,647,500 Ford Motor 4,571,875 Philip Morris 4,556,250 Heinz (H J) Co 4,331,250 Merck & Co 4,237,500 Anheuser-Busch Cos 4,228,125 American Brands 4,111,250 VALUE EQUITY Fund Disney (Walt) Co $2,668,750 PepsiCo Inc 2,535,300 Pitney-Bowes Inc 2,353,650 General Re 2,344,500 Philip Morris 2,308,500 Textron Inc 2,299,500 Exxon Corp 2,257,600 Raytheon Co 2,256,000 McDonald's Corp 2,227,750 CINergy Corp 2,190,375 *Composition of holdings is subject to change. INVESCO Value Trust Statement of Investment Securities February 28, 1995 UNAUDITED Shares or Principal Description Amount Value INTERMEDIATE GOVERNMENT BOND Fund FIXED INCOME SECURITIES 94.26% US Government Obligations 88.10% US Treasury Notes 8.500%, 7/15/1997 $5,000,000 $5,178,125 8.500%, 2/15/2000 $5,000,000 5,296,875 7.375%, 5/15/1996 $4,000,000 4,036,244 6.375%, 7/15/1999 $5,000,000 4,876,555 6.375%, 8/15/2002 $3,000,000 2,857,500 5.125%, 3/31/1998 $4,000,000 3,801,244 US Treasury Bonds 9.375%, 2/15/2006 $3,000,000 3,464,058 8.125%, 8/15/2019 $5,000,000 5,284,375 US Treasury Security Stripped Interest Payment, Generic Tint Payment, 11/15/2004 $2,000,000 988,778 ------------- TOTAL US GOVERNMENT OBLIGATIONS (Cost $35,801,055) 35,783,754 ------------- US Government Agency Obligations 6.16% Government National Mortgage Association I, Modified Pass-Through Certificates 7.000%, 10/15/2008 $844,785 818,866 6.500%, 10/15/2008 $896,865 848,882 6.000%, 11/15/2008 $905,504 836,513 ------------- TOTAL US GOVERNMENT AGENCY OBLIGATIONS (Cost $2,721,160) 2,504,261 ------------- TOTAL FIXED INCOME SECURITIES (Cost $38,522,215) 38,288,015 ------------- SHORT-TERM INVESTMENTS - REPURCHASE AGREEMENTS 5.74% Repurchase Agreement with State Street Bank & Trust Co dated 2/28/1995 due 3/1/1995 at 5.500%, repurchased at $2,330,356 (Collateralized by US Treasury Notes due 10/31/1996 at 6.875%, value $2,378,389) (Cost $2,330,000) $2,330,000 2,330,000 ------------- TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $40,852,215) (Cost for Income Tax Purposes $40,856,738) $40,618,015 ============= TOTAL RETURN Fund COMMON STOCKS 56.26% AEROSPACE & DEFENSE 2.22% Boeing Co 75,000 $3,459,375 Lockheed Corp 50,000 3,881,250 ------------- 7,340,625 ------------- AUTOMOBILE RELATED 1.38% Ford Motor 175,000 4,571,875 ------------- BANKING 3.31% First of America Bank 100,000 3,387,500 NationsBank Corp 50,000 2,493,750 SunTrust Banks 29,000 1,562,375 Wachovia Corp 100,000 3,475,000 ------------- 10,918,625 ------------- CHEMICALS 1.83% Dow Chemical 50,000 3,350,000 Imperial Chemical Industries PLC ADR 60,000 2,677,500 ------------- 6,027,500 ------------- COMPUTER RELATED 5.33% Compaq Computer* 90,000 3,105,000 Computer Associates International 91,000 5,187,000 Hewlett-Packard Co 35,000 4,025,000 International Business Machines 70,000 5,267,500 ------------- 17,584,500 ------------- DIVERSIFIED COMPANIES 8.00% du Pont (E I) de Nemours 50,000 2,806,250 Hanson PLC Sponsored ADR 200,000 3,750,000 Loews Corp 30,000 2,913,750 Minnesota Mining & Manufacturing 60,000 3,285,000 National Service Industries 76,200 2,047,875 Norsk Hydro AS Sponsored ADR 100,000 3,775,000 Philip Morris 75,000 4,556,250 Textron Inc 60,000 3,285,000 ------------- 26,419,125 ------------- FINANCE RELATED 1.17% Dun & Bradstreet 75,000 3,871,875 ------------- FOOD PRODUCTS & BEVERAGES 3.33% Anheuser-Busch Cos 75,000 4,228,125 Heinz (H J) Co 110,000 4,331,250 Unilever NV New York Shrs 20,000 2,430,000 ------------- 10,989,375 ------------- FOOD STORES - WHOLESALE 0.43% SuperValu Inc 55,600 1,431,700 ------------- HEALTH CARE FACILITIES 0.68% Columbia/HCA Healthcare 53,862 2,228,540 ------------- INSURANCE 1.86% American General 80,000 2,530,000 Provident Life & Accident Insurance of America Class A 37,100 844,025 SAFECO Corp 50,000 2,750,000 ------------- 6,124,025 ------------- INVESTMENT BROKERS 1.22% Morgan Stanley Group 60,000 $4,042,500 ------------- MEDICAL RELATED - DRUGS 6.84% Abbott Laboratories 100,000 3,550,000 Allergan Inc 48,300 1,394,663 American Home Products 65,000 4,647,500 Lilly (Eli) & Co 75,000 5,025,000 Marion Merrell Dow 150,000 3,731,250 Merck & Co 100,000 4,237,500 ------------- 22,585,913 ------------- METALS 0.55% Alcan Aluminium 75,000 1,818,750 ------------- OIL & GAS RELATED 2.87% Amoco Corp 60,000 3,555,000 Repsol SA Sponsored ADR 125,000 3,578,125 Royal Dutch Petroleum 5 Gldr Shrs 21,000 2,354,625 ------------- 9,487,750 ------------- PAPER & PAPER PRODUCTS 0.90% Westvaco Corp 75,000 2,962,500 ------------- POLLUTION CONTROL RELATED 0.94% Browning-Ferris Industries 100,000 3,112,500 ------------- RETAIL 5.15% K mart Corp 200,000 2,550,000 McDonald's Corp 100,000 3,325,000 Melville Corp 125,000 4,062,500 Rite Aid 150,000 3,712,500 Tandy Corp 75,000 3,356,250 ------------- 17,006,250 ------------- TEXTILES & APPAREL MANUFACTURERS 1.56% Liz Claiborne 125,000 2,015,625 Shaw Industries 200,000 3,125,000 ------------- 5,140,625 ------------- TOBACCO 1.25% American Brands 110,000 4,111,250 ------------- TOOLS 1.03% Snap-On Inc 100,000 3,400,000 ------------- UTILITIES 4.41% Centerior Energy 100,000 975,000 NYNEX Corp 75,000 2,943,750 Telefonica de Espana SA Sponsored ADR 100,000 3,750,000 Texas Utilities 100,000 3,287,500 U S WEST 27,000 1,046,250 Unicom Corp 100,000 2,550,000 ------------- 14,552,500 ------------- TOTAL COMMON STOCKS (Cost $154,211,772) 185,728,303 ------------- FIXED INCOME SECURITIES 39.57% US Government Obligations 34.78% US Treasury Notes 8.750%, 8/15/2000 $10,000,000 10,743,750 8.250%, 7/15/1998 $8,000,000 $8,307,488 8.000%, 1/15/1997 $4,000,000 4,086,244 7.875%, 1/15/1998 $1,750,000 1,794,294 7.875%, 11/15/1999 $7,100,000 7,326,313 7.375%, 5/15/1996 $3,300,000 3,329,901 6.375%, 7/15/1999 $3,000,000 2,925,933 6.375%, 8/15/2002 $10,000,000 9,525,000 US Treasury Bonds 9.375%, 2/15/2006 $14,000,000 16,165,604 9.250%, 2/15/2016 $15,000,000 17,592,165 8.125%, 8/15/2019 $13,000,000 13,739,375 7.250%, 8/15/2022 $20,000,000 19,287,500 ------------- TOTAL US GOVERNMENT OBLIGATIONS (Cost $112,034,367) 114,823,567 ------------- US Government Agency Obligations 1.85% Federal National Mortgage Association, Gtd Mortgage Pass-Through Certificates 7.500%, 8/1/2007 $2,349,107 2,323,382 Government National Mortgage Association I, Modified Pass-Through Certificates 7.000%, 10/15/2008 $1,298,271 1,258,438 6.500%, 10/15/2008 $1,345,297 1,273,323 6.000%, 11/15/2008 $1,358,256 1,254,769 ------------- TOTAL US GOVERNMENT AGENCY OBLIGATIONS (Cost $6,480,224) 6,109,912 ------------- Corporate Bonds 2.94% AUTOMOBILE RELATED 0.23% Ford Motor, Notes 7.500%, 11/15/1999 $750,000 745,177 ------------- BANKING 0.34% NationsBank Corp, Sr Notes 5.375%, 4/15/2000 $1,250,000 1,130,071 ------------- FINANCE RELATED 1.01% Associates Corp of North America, Notes 4.750%, 8/1/1996 $1,200,000 1,162,354 Beneficial Corp Medium-Term Notes 5.350%, 10/8/1998 $800,000 744,354 International Lease Finance, Notes 5.625%, 3/1/1998 $1,500,000 1,426,000 ------------- 3,332,708 ------------- FOOD PRODUCTS & BEVERAGES 0.46% PepsiCo Inc, Deb 7.750%, 10/1/1998 $1,500,000 1,519,500 ------------- RETAIL 0.22% Wal-Mart Stores, Notes 5.500%, 3/1/1998 $750,000 714,680 ------------- UTILITIES 0.22% Union Electric, 1st Mortgage 6.750%, 10/15/1999 $750,000 $726,496 ------------- WASTE MANAGEMENT 0.46% Waste Management, Notes 7.875%, 8/15/1996 $1,500,000 1,518,862 ------------- TOTAL CORPORATE BONDS (Cost $10,108,465) 9,687,494 ------------- TOTAL FIXED INCOME SECURITIES (Cost $128,623,056) 130,620,973 ------------- SHORT-TERM INVESTMENTS 4.17% Commercial Paper 1.51% MEDICAL RELATED - DRUGS 1.51% Warner-Lambert Co 5.900%, 3/15/1995 (Cost $4,988,528) $5,000,000 4,988,528 ------------- Repurchase Agreements 2.66% Repurchase Agreement with State Street Bank & Trust Co dated 2/28/1995 due 3/1/1995 at 5.500%, repurchased at $8,766,339 (Collateralized by US Treasury Notes due 10/31/1996 at 6.875%, value $8,949,712) (Cost $8,765,000) $8,765,000 8,765,000 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $13,753,528) 13,753,528 ------------- TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $296,588,356) (Cost for Income Tax Purposes $296,603,016) 330,102,804 ============= VALUE EQUITY Fund COMMON STOCKS 89.80% AEROSPACE & DEFENSE 3.13% Boeing Co 25,000 $1,153,125 E-Systems Inc 26,700 1,168,125 Lockheed Corp 22,000 1,707,750 ------------- 4,029,000 ------------- AGRICULTURAL 0.79% Pioneer Hi-Bred International 30,000 1,012,500 ------------- AUTOMOBILE RELATED 1.12% Ford Motor 55,000 1,436,875 ------------- BANKING 3.70% Boatmen's Bancshares 53,000 1,643,000 NBD Bancorp 50,000 1,556,250 Wachovia Corp 45,000 1,563,750 ------------- 4,763,000 ------------- CHEMICALS 3.47% Dow Chemical 30,000 2,010,000 Imperial Chemical Industries PLC ADR 25,000 $1,115,625 Nalco Chemical 39,000 1,340,625 ------------- 4,466,250 ------------- COMPUTER RELATED 4.92% Automatic Data Processing 17,000 1,045,500 Compaq Computer* 39,000 1,345,500 Computer Associates International 31,000 1,767,000 Hewlett-Packard Co 19,000 2,185,000 ------------- 6,343,000 ------------- DIVERSIFIED COMPANIES 9.24% General Electric 27,000 1,481,625 Hanson PLC Sponsored ADR 102,000 1,912,500 Minnesota Mining & Manufacturing 30,000 1,642,500 Philip Morris 38,000 2,308,500 Paytheon Co 32,000 2,256,000 Textron Inc 42,000 2,299,500 ------------- 11,900,625 ------------- ELECTRICAL EQUIPMENT 1.33% Emerson Electric 26,000 1,719,250 ------------- FINANCE RELATED 1.20% Dun & Bradstreet 30,000 1,548,750 ------------- FOOD PRODUCTS & BEVERAGES 5.32% Anheuser-Busch Cos 23,000 1,296,625 Heinz (H J) Co 35,000 1,378,125 PepsiCo Inc 64,800 2,535,300 Tyson Foods Class A 67,000 1,649,875 ------------- 6,859,925 ------------- FOOD STORES - WHOLESALE 0.75% Fleming Cos 49,900 973,050 ------------- HEALTH CARE 2.59% Columbia/HCA Healthcare 45,000 1,861,875 Manor Care 50,000 1,481,250 ------------- 3,343,125 ------------- HOUSEHOLD APPLIANCES 1.34% Maytag Corp 104,500 1,724,250 ------------- INSURANCE 7.32% American General 57,000 1,802,625 American International Group 19,000 1,971,250 General Re 18,000 2,344,500 Jefferson-Pilot Corp 29,050 1,655,850 SAFECO Corp 30,000 1,650,000 ------------- 9,424,225 ------------- INVESTMENT BROKERS 2.46% Morgan Stanley Group 31,000 2,088,625 Salomon Inc 30,000 1,080,000 ------------- 3,168,625 ------------- MEDICAL RELATED - DRUGS 8.43% Abbott Laboratories 57,000 2,023,500 American Home Products 26,000 1,859,000 Bristol-Myers Squibb 30,000 1,860,000 Lilly (Eli) & Co 32,000 2,144,000 Merck & Co 48,000 $2,034,000 Schering-Plough Corp 12,000 940,500 ------------- 10,861,000 ------------- OFFICE EQUIPMENT 1.83% Pitney-Bowes Inc 66,300 2,353,650 ------------- OIL & GAS RELATED 7.07% Amoco Corp 35,000 2,073,750 Atlantic Richfield 18,000 1,973,250 Exxon Corp 35,275 2,257,600 Repsol SA Sponsored ADR 43,000 1,230,875 Royal Dutch Petroleum 5 Gldr Shrs 13,976 1,567,059 ------------- 9,102,534 ------------- PAPER & PAPER PRODUCTS 1.31% Westvaco Corp 42,700 1,686,650 ------------- POLLUTION CONTROL RELATED 1.57% Browning-Ferris Industries 18,500 575,813 WMX Technologies 55,000 1,450,625 ------------- 2,026,438 ------------- PUBLISHING 0.88% Donnelley (R R) & Sons 33,000 1,130,250 ------------- RECREATION SERVICES 2.07% Disney (Walt) Co 50,000 2,668,750 ------------- RETAIL 7.80% Dillard Department Stores Class A 57,000 1,567,500 Giant Food Class A 64,000 1,520,000 Home Depot 34,000 1,525,750 K mart Corp 125,800 1,603,950 McDonald's Corp 67,000 2,227,750 Russell Corp 34,500 1,043,625 Toys "R" Us* 20,000 557,500 ------------- 10,046,075 ------------- TEXTILES & APPAREL MANUFACTURERS 1.66% Liz Claiborne 60,000 967,500 Shaw Industries 75,000 1,171,875 ------------- 2,139,375 ------------- TOBACCO 1.45% American Brands 50,000 1,868,750 ------------- TRANSPORTATION 0.95% Hunt (J B) Transport Services 63,000 1,228,500 ------------- UTILITIES 6.10% CINergy Corp 88,500 2,190,375 SCEcorp 93,000 1,522,875 Southern New England Telecommunications 46,000 1,523,750 Telefonos de Mexico SA de CV Sponsored ADR Representing Ord Series L Shrs 58,000 1,602,250 Unicom Corp 40,000 1,020,000 ------------- 7,859,250 ------------- TOTAL COMMON STOCKS (Cost $105,123,484) 115,683,672 ------------- SHORT-TERM INVESTMENTS 10.20% Commercial Paper 6.49% AGRICULTURAL 0.77% Cargill Inc 5.900%, 3/16/1995 $1,000,000 $997,542 ------------- MEDICAL RELATED - DRUGS 3.10% Warner-Lambert Co 5.900%, 3/15/1995 $4,000,000 3,990,822 ------------- PUBLISHING 2.62% Donnelley (R R) & Sons 6.030%, 4/17/1995 $3,400,000 3,373,233 ------------- TOTAL COMMERCIAL PAPER (Cost $8,361,597) 8,361,597 ------------- Repurchase Agreements 3.71% Repurchase Agreement with State Street Bank & Trust Co dated 2/28/1995 due 3/1/1995 at 5.500%, repurchased at $4,785,731 (Collateralized by US Treasury Notes due 10/31/1996 at 6.875%, value $4,884,923) (Cost $4,785,000) $4,785,000 4,785,000 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $13,146,597) 13,146,597 ------------- TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $118,270,081) (Cost for Income Tax Purposes $118,463,396) $128,830,269 ============= *Security is non-income producing. See Notes to Financial Statements INVESCO Value Trust Statement of Assets and Liabilities February 28, 1995 UNAUDITED
Intermediate Government Total Return Value Equity Bond Fund Fund Fund ASSETS Investment Securities: At Cost $40,852,215 $296,588,356 $118,270,081 ======================================== At Value $40,618,015 $330,102,804 $128,830,269 Cash 0 83,999 82,978 Receivables: Investment Securities Sold 0 0 1,492,531 Fund Shares Sold 138,679 2,064,146 989,400 Dividends and Interest 329,531 1,600,738 422,057 Prepaid Expenses and Other Assets 17,286 56,010 35,629 ---------------------------------------- TOTAL ASSETS 41,103,511 333,907,697 131,852,864 ---------------------------------------- LIABILITIES Payables: Custodian 5,549 0 0 Distributions to Shareholders 4,228 100,122 33,051 Investment Securities Purchased 0 0 4,571,372 Fund Shares Repurchased 656,898 185,081 64,175 Accrued Expenses and Other Payables 4,648 20,203 12,270 ---------------------------------------- TOTAL LIABILITIES 671,323 305,406 4,680,868 ---------------------------------------- Net Assets at Value $40,432,188 $333,602,291 $127,171,996 ======================================== NET ASSETS Paid-in Capital $41,638,607 $299,573,000 $115,886,944 Accumulated Undistributed Net Investment Income (Loss) 0 (36,789) 36,992 Accumulated Undistributed Net Realized Gain (Loss) on Investment Securities (972,219) 551,632 687,872 Net Appreciation (Depreciation) of Investment Securities (234,200) 33,514,448 10,560,188 ---------------------------------------- Net Assets at Value $40,432,188 $333,602,291 $127,171,996 ======================================== Shares Outstanding* 3,324,969 17,761,893 7,249,124 Net Asset Value, Offering and Redemption Price per Share $12.16 $18.78 $17.54 ======================================= *The Trust has one class of shares, which may be divided into different series, each representing an interest in a separate Fund. At February 28, 1995, there was an unlimited number of authorized Fund shares. See Notes to Financial Statements
INVESCO Value Trust Statement of Operations Six-Months Ended February 28, 1995 UNAUDITED
Intermediate Government Total Return Value Equity Bond Fund Fund Fund INVESTMENT INCOME INCOME Dividends $0 $2,665,172 $1,520,836 Interest 1,182,568 4,932,990 272,310 ---------------------------------------- TOTAL INCOME 1,182,568 7,598,162 1,793,146 ---------------------------------------- EXPENSES Investment Advisory Fees 96,941 1,139,967 407,810 Transfer Agent Fees 66,875 185,892 77,534 Administrative Fees 7,423 27,799 13,378 Custodian Fees and Expenses 3,190 12,731 4,386 Professional Fees and Expenses 6,802 16,840 9,982 Registration Fees and Expenses 12,828 27,307 18,071 Reports to Shareholders 5,707 20,753 5,803 Trustees' Fees and Expenses 4,215 13,801 7,295 Other Expenses 2,435 6,402 2,863 ---------------------------------------- TOTAL EXPENSES 206,416 1,451,492 547,122 ---------------------------------------- NET INVESTMENT INCOME 976,152 6,146,670 1,246,024 ---------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES Net Realized Gain (Loss) on Investment Securities (946,533) 1,838,599 3,676,609 Change in Net Appreciation of Investment Securities 1,035,745 3,224,909 985,043 ---------------------------------------- NET GAIN ON INVESTMENT SECURITIES 89,212 5,063,508 4,661,652 ---------------------------------------- Net Increase in Net Assets from Operations $1,065,364 $11,210,178 $5,907,676 ========================================
See Notes to Financial Statements INVESCO Value Trust Statement of Changes in Net Assets
Intermediate Government Bond Fund Total Return Fund Six-Months Year Six-Months Year Ended Ended Ended Ended February 28 August 31 February 28 August 31 1995 1994 1995 1994 UNAUDITED UNAUDITED OPERATIONS Net Investment Income $976,152 $2,058,207 $6,146,670 $8,343,044 Net Realized Gain (Loss) on Investment Securities (946,533) 620,157 1,838,599 2,193,169 Change in Net Appreciation (Depreciation) of Investment Securities 1,035,745 (2,854,227) 3,224,909 7,456,021 ----------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 1,065,364 (175,863) 11,210,178 17,992,234 ----------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS Net Investment Income (976,152) (2,052,118) (6,183,459) (8,343,044) In Excess of Net Investment Income 0 (6,095) 0 (1,271,098) Net Realized Gain on Investment Securities 0 (1,054,005) (778,408) (2,193,169) In Excess of Net Realized Gain on Investment Securities 0 0 0 (1,987,157) ----------------------------------------------------- TOTAL DISTRIBUTIONS (976,152) (3,112,218) (6,961,867) (13,794,468) ----------------------------------------------------- FUND SHARE TRANSACTIONS Proceeds from Sales of Shares 15,840,946 14,705,799 93,084,964 132,448,414 Reinvestment of Distributions 942,135 2,969,516 6,766,624 13,327,958 ----------------------------------------------------- 16,783,081 17,675,315 99,851,588 145,776,372 Amounts Paid for Repurchases of Shares (8,300,650) (21,910,324) (63,262,196) 77,433,579) ----------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE TRANSACTIONS 8,482,431 (4,235,009) 36,589,392 68,342,793 ----------------------------------------------------- Total Increase (Decrease) in Net Assets 8,571,643 (7,523,090) 40,837,703 72,540,559 NET ASSETS Beginning of Period 31,860,545 39,383,635 292,764,588 220,224,029 ----------------------------------------------------- End of Period $40,432,188 $31,860,545 $333,602,291 $292,764,588 ====================================================== Accumulated Undistributed Net Investment Income (Loss) Included in Net Assets at End of Period $0 $0 $(36,789) $0 FUND SHARE TRANSACTIONS Shares Sold 1,322,530 1,154,467 5,067,956 7,264,152 Shares Issued from Reinvestment of Distributions 78,788 235,197 368,416 728,959 ----------------------------------------------------- 1,401,318 1,389,664 5,436,372 7,993,111 Shares Repurchased (695,477) (1,743,095) (3,463,029) (4,260,757) ----------------------------------------------------- Net Increase (Decrease) in Fund Shares 705,841 (353,431) 1,973,343 3,732,354 =====================================================
See Notes to Financial Statements INVESCO Value Trust Statement of Changes in Net Assets (Continued)
Value Equity Fund Six-Months Year Ended Ended February 28 August 31 1995 1994 UNAUDITED OPERATIONS Net Investment Income $1,246,024 $1,802,411 Net Realized Gain on Investment Securities 3,676,609 5,051,741 Change in Net Appreciation of Investment Securities 985,043 2,024,162 --------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS 5,907,676 8,878,314 DISTRIBUTIONS TO SHAREHOLDERS --------------------------- Net Investment Income (1,209,032) (1,802,411) In Excess of Net Investment Income 0 (239,803) Net Realized Gain on Investment Securities (7,115,174) (5,176,510) --------------------------- TOTAL DISTRIBUTIONS (8,324,206) (7,218,724) --------------------------- FUND SHARE TRANSACTIONS Proceeds from Sales of Shares 43,655,952 106,482,312 Reinvestment of Distributions 8,242,235 7,097,380 --------------------------- 51,898,187 113,579,692 --------------------------- Amounts Paid for Repurchases of Shares (34,159,492) (85,303,387) --------------------------- NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS 17,738,695 28,276,305 --------------------------- Total Increase in Net Assets 15,322,165 29,935,895 NET ASSETS Beginning of Period 111,849,831 81,913,936 --------------------------- End of Period $127,171,996 $111,849,831 =========================== Accumulated Undistributed Net Investment Income Included in Net Assets at End of Period $6,992 $0 FUND SHARE TRANSACTIONS Shares Sold 2,519,652 6,026,761 Shares Issued from Reinvestment of Distributions 491,957 405,056 --------------------------- 3,011,609 6,431,817 Shares Repurchased (1,936,182) (4,861,383) --------------------------- Net Increase in Fund Shares 1,075,427 1,570,434 ===========================
See Notes to Financial Statements INVESCO Value Trust Notes to Financial Statements UNAUDITED NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES. INVESCO Value Trust (the "Trust") is registered under the Investment Company Act of 1940 (the "Act") as a diversified, open-end management investment company. The Trust is organized under the laws of the Commonwealth of Massachusetts and consists of three separate funds: Intermediate Government Bond Fund ("Government Bond") and Value Equity Fund ("Value Equity") which commenced investment operations on May 19, 1986 and Total Return Fund ("Total Return") which commenced investment operations on September 22, 1987. The Trust's fiscal year-end was changed from December 31 to August 31 in 1993. The following is a summary of significant accounting policies consistently followed by the Trust 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 Trust's trustees. Debt securities are valued at evaluated bid prices as determined by a pricing service approved by the Trust's trustees. If evaluated bid prices are not available, debt securities are valued by averaging the bid prices obtained from one or more dealers making a market for such securities. If market quotations or pricing service valuations are not readily available, securities are valued at fair value as determined in good faith by the Trust's trustees. Short-term securities are stated at amortized cost (which approximates market value) if maturity is 60 days or less, or at market value if maturity is greater than 60 days. B. REPURCHASE AGREEMENTS - - - Repurchase agreements held by the Trust are fully collateralized by U.S. Government securities and such collateral is in the possession of the Trust's custodian. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements including accrued interest. C. 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. Interest income, which may be comprised of stated coupon rate, market discount and original issue discount is recorded on the accrual basis. Discounts on debt securities purchased are amortized over the life of the respective security as adjustments to interest income. Cost is determined on the specific identification basis. Investments in securities of governmental agencies may only be guaranteed by the respective agency's limited authority to borrow from the U. S. Government and may not be guaranteed by the full faith and credit of the United States. D. FEDERAL AND STATE TAXES - The Trust has complied 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. Government Bond incurred and elected to defer post-October 31 net capital losses of $31,563 to the period ended August 31, 1994. To the extent future capital gains are offset by such deferred losses, these gains will not be distributed to shareholders. Dividends paid by the Trust 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. E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - For Value Equity and Total Return Funds dividends and distributions to shareholders are recorded on the ex dividend/distribution date. All of Government Bond net investment income is distributed to shareholders by dividends declared daily and paid monthly. Reinvestment of dividends is effected at the month-end net asset value. The Trust 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 mortgage-backed securities, market discounts, nontaxable dividends, net operating losses, expiring capital loss carryforwards and deferral of wash sales. F. 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. NOTE 2 - INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Funds Group, Inc. ("IFG") serves as the Trust's investment adviser. As compensation for its services to the Trust, 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 Government Bond 0.60% 0.50% 0.40% Total Return 0.75% 0.65% 0.50% Value Equity 0.75% 0.65% 0.50% In accordance with a Sub-Advisory Agreement between IFG and INVESCO Capital Management, Inc. ("ICM"), an affiliate of IFG, investment decisions of the Trust are made by ICM. 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 $14.00 for Total Return Fund and Value Equity Fund, and $20.00 for Government Bond Fund 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. NOTE 3 - PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six-months ended February 28, 1995, 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 Total Return $17,480,440 $13,489,977 Value Equity 42,389,385 29,720,017 The aggregate cost of purchases and proceeds from sales of U.S. Government securities were as follows: Fund Purchases Sales Government Bond $31,924,831 $24,184,727 Total Return 109,798,906 79,379,837 NOTE 4 - APPRECIATION AND DEPRECIATION. At February 28, 1995, 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: Net Gross Gross Appreciation Appreciation Depreciation (Depreciation) Government Bond $317,881 $556,604 $(238,723) Total Return 39,390,842 5,891,055 33,499,788 Value Equity 13,471,621 3,104,748 10,366,873 NOTE 5 - TRANSACTIONS WITH AFFILIATES. Certain of the Trust's officers and trustees are also officers and directors of ICM or IFG. The Trust has adopted an unfunded noncontributory defined benefit pension plan covering all independent trustees of the Trust who will have served as an independent trustee 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 28, 1995, included in Trustees' Fees and Expenses in the Statements of Operations, prepaid pension costs and accrued pension liability included in prepaid expenses and accrued expenses, respectively, in the Statement of Assets and Liabilities were as follows: Prepaid Accrued Pension Pension Pension Fund Expenses Costs Liability Government Bond $32 $1,608 $1,640 Total Return 297 14,924 15,221 Value Equity 122 6,113 6,235 INVESCO Value Trust Financial Highlights (For a Fund Share Outstanding throughout Each Period)
Six-Months Year Period Ended Ended Ended February 28 August 31 August 31 Year Ended December 31 1995 1994 1993 1992 1991 1990 UNAUDITED (Note 1) Intermediate Government Bond Fund PER SHARE DATA Net Asset Value-- Beginning of Period $12.16 $13.25 $12.68 $12.89 $12.13 $12.07 ------ ------ ------ ------------------------------ INCOME FROM INVESTMENT OPERATIONS Net Investment Income 0.36 0.70 0.48 0.90 0.89 1.00 Net Gains or (Losses) on Securities (Both Realized and Unrealized) 0.00 (0.75) 0.57 (0.16) 0.77 0.05 ------ ------ ------ ------------------------------ Total from Investment Operations 0.36 (0.05) 1.05 0.74 1.66 1.05 ------ ------ ------ ------------------------------ LESS DISTRIBUTIONS Dividends from Net Investment Income+ 0.36 0.70 0.48 0.90 0.90 0.99 Distributions from Capital Gains 0.00 0.34 0.00 0.05 0.00 0.00 ------ ------ ------ ------------------------------ Total Distributions 0.36 1.04 0.48 0.95 0.90 0.99 Net Asset Value-- End of Period $12.16 $12.16 $13.25 $12.68 $12.89 $12.13 ====== ====== ====== ============================== TOTAL RETURN 3.02%* (0.37%) 8.38%* 6.03% 14.16% 9.08% RATIOS Net Assets-- End of Period ($000 Omitted) $40,432 $31,861 $39,384 $29,649 $24,385 $18,380 Ratio of Expenses to Average Net Assets# 0.63%* 1.07% 0.96%~ 0.97% 0.93% 0.85% Ratio of Net Investment Income to Average Net Assets# 3.00%* 5.58% 5.48%~ 6.38% 7.28% 8.16% Portfolio Turnover Rate 76%* 49% 34%* 93% 51% 31% +Distributions in excess of net investment income for the year ended August 31, 1994 aggregated less than $0.01 on a per share basis. *These amounts are 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 for the year ended December 31, 1990. If such expenses had not been voluntarily absorbed, ratio of expenses to average net assets would have been 0.96% and ratio of net investment income to average net assets would have been 8.05%. ~Annualized
INVESCO Value Trust Financial Highlights (Continued) (For a Fund Share Outstanding throughout Each Period) Six-Months Year Period Ended Ended Ended February 28 August 31 August 31 Year Ended December 31 1995 1994 1993 1992 1991 1990 UNAUDITED (Note 1) Total Return Fund PER SHARE DATA Net Asset Value-- Beginning of Period $18.54 $18.27 $17.18 $16.43 $14.21 $15.08 ------ ------ ------ ------------------------------ INCOME FROM INVESTMENT OPERATIONS Net Investment Income 0.36 0.69 0.40 0.66 0.71 0.74 Net Gains or (Losses) on Securities (Both Realized and Unrealized) 0.29 0.60 1.09 0.93 2.78 (0.80) ------ ------ ------ ------------------------------ Total from Investment Operations 0.65 1.29 1.49 1.59 3.49 (0.06) ------ ------ ------ ------------------------------ LESS DISTRIBUTIONS Dividends from Net Investment Income 0.36 0.60 0.40 0.65 0.72 0.75 In Excess of Net Investment Income 0.00 0.09 0.00 0.00 0.00 0.00 Distributions from Capital Gains 0.05 0.17 0.00 0.19 0.55 0.06 In Excess of Capital Gains 0.00 0.16 0.00 0.00 0.00 0.00 ------ ------ ------ ----------------------------- Total Distributions 0.41 1.02 0.40 0.84 1.27 0.81 ------ ------ ------ ----------------------------- Net Asset Value-- End of Period $18.78 $18.54 $18.27 $17.18 $16.43 $14.21 ====== ====== ====== ============================= TOTAL RETURN 3.55%* 7.22% 8.72%* 9.84% 24.96% (0.35%) RATIOS Net Assets-- End of Period ($000 Omitted) $333,602 $292,765 $220,224 $137,196 $82,219 $54,874 Ratio of Expenses to Average Net Assets 0.47%* 0.96% 0.93%~ 0.88% 0.92% 1.00% Ratio of Net Investment Income to Average Net Assets 2.01%* 3.31% 3.51%~ 4.06% 4.62% 5.22% Portfolio Turnover Rate 32%* 12% 19%* 13% 49% 24% *These amounts are based on operations for the period shown and, accordingly, are not representative of a full year. ~Annualized
INVESCO Value Trust Financial Highlights (For a Fund Share Outstanding throughout Each Period)
Six-Months Year Period Ended Ended Ended February 28 August 31 August 31 Year Ended December 31 1995 1994 1993 1992 1991 1990 UNAUDITED (Note 1) Value Equity Fund PER SHARE DATA Net Asset Value-- Beginning of Period $18.12 $17.79 $16.91 $16.57 $13.88 $15.32 ------ ------ ------ ------------------------------ INCOME FROM INVESTMENT OPERATIONS Net Investment Income 0.19 0.36 0.24 0.36 0.40 0.44 Net Gains or (Losses) on Securities (Both Realized and Unrealized) 0.59 1.20 0.88 0.45 4.54 (1.33) ------ ------ ------ ------------------------------ Total from Investment Operations 0.78 1.56 1.12 0.81 4.94 (0.89) ------ ------ ------ ------------------------------ LESS DISTRIBUTIONS Dividends from Net Investment Income 0.19 0.31 0.24 0.34 0.40 0.47 In Excess of Net Investment Income 0.00 0.04 0.00 0.00 0.00 0.00 Distributions from Capital Gains 1.17 0.88 0.00 0.13 1.85 0.06 ------ ------ ------ ------------------------------ Total Distributions 1.36 1.23 0.24 0.47 2.25 0.53 ------ ------ ------ ------------------------------ Net Asset Value-- End of Period $17.54 $18.12 $17.79 $16.91 $16.57 $13.80 ====== ====== ====== ============================== TOTAL RETURN 4.72%* 9.09% 6.65%* 4.98% 35.84% (5.80%) RATIOS Net Assets-- End of Period ($000 Omitted) $127,172 $111,850 $81,914 $78,608 $39,741 $29,825 Ratio of Expenses to Average Net Assets# 0.49%* 1.35% 1.00%~ 0.91% 0.98% 1.00% Ratio of Net Investment Income to Average Net Assets# 1.11%* 2.42% 2.07%~ 2.19% 2.39% 3.00% Portfolio Turnover Rate 11%* 53% 35%* 37% 64% 23% *These amounts are 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 for the year ended December 31, 1990. If such expenses had not been voluntarily absorbed, ratio of expenses to average net assets would have been 1.04% and ratio of net investment income to average net assets would have been 2.96%. ~Annualized
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, 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-----