-----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, WKMwHAipAPGaoHHzx39Uc6o0WP94FKiKehlEzRMVTYf7sErBdDPoKJ0taJuHz0b6 NpzwXmxsA70oglRlnAEUxA== 0000789940-95-000011.txt : 19951031 0000789940-95-000011.hdr.sgml : 19951031 ACCESSION NUMBER: 0000789940-95-000011 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950831 FILED AS OF DATE: 19951030 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INVESCO VALUE TRUST CENTRAL INDEX KEY: 0000789940 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [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: 95585488 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 ANNUAL REPORT August 31, 1995 INVESCO VALUE TRUST 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. In our opinion, it's possible interest rates will drop further in 1995. That will ease inflationary pressure somewhat, as well as have a positive impact on the bond market. Short-term rates could drop to 5.5% or less, compared to a 6% Fed funds rate as of late June. The benchmark 30-year Treasury bond is now yielding around 6.6%; we may expect to see that gradually decrease. Overall, bond prices have advanced strongly since the fourth quarter of 1994. -------------------------------- The line graphs on the following pages illustrate the value of a $10,000 investment in the INVESCO Value Trust Funds, plus reinvested dividends and capital gain distributions, for the periods through 8/31/95. (Of course, past performance is not a guarantee of future returns.)* The charts and other total return figures cited reflect each fund's operating expenses, but the indexes do not have expenses, which would, of course, have lowered their performance. Value Equity Fund For the year ended 8/31/95, INVESCO Value Equity Fund had a total return of 17.84%. During the same period, the S&P 500 index achieved a total return of 21.35%. (Of course, past performance is not a guarantee of future results.)* Value Equity Fund Average Annualized Total Return as of 8/31/95* 1 year 17.84% ------------------------------- 5 years 15.49% ------------------------------- Since inception (5/86) 11.77% ------------------------------- During the first half of the fund's fiscal year -- September 1994 through February 1995 -- the market 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 during this six-month period. Our substantial weighting in health-care issues was another positive factor. The six months ended 8/31/95 told a different tale. As fears of recession and inflation faded, growth stocks returned to favor. Technology and financial companies especially saw strong price advances. Our portfolio strategy relies on selection of individual stocks, rather than concentrating on particular industry sectors; while we hold positions in a wide variety of industries, we do not utilize a timing strategy that temporarily focuses on particular sectors in turn. As a result of our diversification policy, the fund underperformed the broad equity market during this six-month period. Graph: This line graph represents a comparison of the value of a $10,000 investment in the Value Equity 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 period from inception (5/86) through 8/31/95. The fund's performance has benefited from its holdings in financial and technology stocks. For instance, American International Group, General Re, and Morgan Stanley Group have all performed well since their initial purchase, as have Compaq Computer, Hewlett-Packard Co, and Computer Associates International. Over the past months, we have taken positions in stocks in a variety of industries. These include insurance (Marsh & McLennan), publishing (Gannett Co), retail (J C Penney Co), and utilities (Southern Corp). We have closed several positions which no longer met our criteria. These included firms whose marketing positions or managements, for instance, led us to downgrade their long-term prospects, such as Pioneer Hi-Bred International (agriculture), Salomon Inc (investment brokers), and Liz Claiborne (textiles & apparel manufacturers). 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 an MBA from the University of Central Florida and a BA from the University of South 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. Intermediate Government Bond Fund For the year ended 8/31/95, INVESCO Intermediate Government Bond Fund had a total return of 10.36%. During the same period, the Lehman Intermediate Government Bond Index had a total return of 8.95%. We are pleased to note that in their 2/6/95 issue, U.S. News & World Report placed Intermediate Government Bond Fund among its "best funds for the long haul." Your fund was rated #8 of 572 medium-term government bond funds.** (Of course, past performance is not a guarantee of future results.)* Intermediate Government Bond Fund Average Annualized Total Return as of 8/31/95* 1 year 10.36% ---------------------------------- 5 years 8.77% ---------------------------------- Since inception (5/86) 7.28% ---------------------------------- Graph: This line graph represents a comparison of the value of a $10,000 investment in the Intermediate Government Bond Fund to the value of a $10,000 investment in the Lehman Intermediate Government Bond Fund Index, assuming in each case reinvestment of all dividends and capital gain distributions, for the period from inception (5/86) through 8/31/95. Since the summer of 1994, our investment strategy regarding duration 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. This is now 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 on government securities rose to levels where they represented good value given inflation trends. As we mentioned in the semiannual report dated 2/28/95, we have reduced the allocation to government agency bonds 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. Total Return Fund For the year ended 8/31/95, INVESCO Total Return Fund achieved a total return of 17.54%. During the same period, the S&P 500 had a total return of 21.35%, while the Lehman Government/Corporate Index had a total return of 11.49%. In the issue dated 2/6/95, U.S. News & World Report placed Total Return Fund among its "best funds for the long haul," rating the fund #8 of 343 balanced/total return funds.** (Of course, past performance is not a guarantee of future results.)* Over the first half of the fund's fiscal year, we substantially lengthened bond duration. At that time, we were finding better values at the longer end of the yield curve. By 2/28/95, we had extended bond duration to over seven years. That position reflected our view that "real" interest rates (adjusted for inflation) were quite high by historical standards. Simultaneously, we have shifted the bond allocation down in favor of a higher concentration in equities, which in our opinion enjoy better near-term prospects for superior total returns. Graph: This line graph represents a comparison of the value of a $10,000 investment in the Total Return Fund to the value of a $10,000 investment in the S&P 500 and Lehman Government/Corporate Indexes, assuming in each case reinvestment of all dividends and capital gain distributions, for the period from inception (9/87) through 8/31/95. We continue to find direct Treasury obligations more attractively valued than government agency and corporate obligations. As a result, fixed-income holdings overwhelmingly consist of Treasury bonds and notes. Among our new common stock holdings, you will find several financial stocks, such as First Union and NBD Bancorp (banking), Deluxe Corp (finance related), and Marsh & McLennan (insurance). These stocks fit our profile of companies with strong past earnings growth, temporarily out of favor with the market. Other new holdings include General Electric (diversified), Kimberly-Clark Corp (paper products), and Bristol-Myers Squibb (medical related-drugs). Total Return Fund Average Annualized Total Return as of 8/31/95* 1 year 17.54% ------------------------------- 5 years 14.47% ------------------------------- Since inception (9/87) 12.32% ------------------------------- We have also taken a position in Telefonos de Mexico SA de CV Sponsored ADR (utilities). In our opinion, this stock was unfairly tarred by the same brush that took all Mexican stocks down after the peso devaluation last winter. Over the longer term, we anticipate that the market will recognize and reward the company's strong fundamentals. 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 12-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. *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 Index is an unmanaged index considered representative of the broad bond market, while the Lehman Government Intermediate Bond Index is an unmanaged index of government bonds with average maturities under 10 years. **U.S. News & World Report 2/6/95, ranking of funds at least three years old and with assets of at least $25 million. Rankings were based on total return over the one-, three-, five- and 10-year periods ended 12/31/94 and during the 1990 bear market, plus volatility over the three years ended 12/31/94. INVESCO Value Trust Ten Largest Common Stock Holdings August 31, 1995 Description Value - -------------------------------------------------------------------- TOTAL RETURN Fund Ford Motor $7,656,250 Philip Morris 7,462,500 General Electric 7,359,375 International Business Machines 7,236,250 Dun & Bradstreet 7,234,375 NBD Bancorp 7,150,000 Lilly (Eli) & Co 6,959,375 American Home Products 6,930,000 Bristol-Myers Squibb 6,862,500 Lockheed Martin 6,696,250 VALUE EQUITY Fund Philip Morris $ 3,731,250 Dun & Bradstreet 3,472,500 Dow Chemical 3,256,000 WMX Technologies 3,055,000 Hewlett-Packard Co 3,040,000 PepsiCo Inc 2,932,200 Pitney-Bowes Inc 2,912,813 Textron Inc 2,877,000 Columbia/HCA Healthcare 2,867,000 Disney (Walt) Co 2,806,250 Composition of holdings is subject to change. INVESCO Value Trust Statement of Investment Securities August 31, 1995 - ------------------------------------------------------------------------ Shares or Principal Description Amount Value - ------------------------------------------------------------------------ INTERMEDIATE GOVERNMENT BOND Fund FIXED INCOME SECURITIES 86.00% US Government Obligations 79.14% US Treasury Bonds 9.375%, 2/15/2006 $ 3,000,000 $ 3,675,000 8.125%, 8/15/2019 $ 4,000,000 4,622,500 US Treasury Notes 8.500%, 7/15/1997 $ 4,000,000 4,186,244 8.500%, 2/15/2000 $ 4,000,000 4,376,244 6.375%, 7/15/1999 $ 4,000,000 4,045,000 6.375%, 8/15/2002 $ 2,000,000 2,017,500 5.125%, 3/31/1998 $ 5,000,000 4,906,250 US Treasury Security Stripped Interest Payment, Generic Tint Payment, Zero Coupon, 11/15/2004 $ 2,000,000 1,113,038 ----------- TOTAL US GOVERNMENT OBLIGATIONS (Cost $27,532,826) 28,941,776 ----------- US Government Agency Obligations 6.86% Government National Mortgage Association I, Modified Pass-Through Certificates 7.000%, 10/15/2008 $ 802,003 805,884 6.500%, 10/15/2008 $ 856,674 845,861 6.000%, 11/15/2008 $ 881,566 856,203 ----------- TOTAL US GOVERNMENT AGENCY OBLIGATIONS (Cost $2,610,936) 2,507,948 ----------- TOTAL FIXED INCOME SECURITIES (Cost $30,143,762) 31,449,724 ----------- SHORT-TERM INVESTMENTS 14.00% US Government Obligations 9.68% US Treasury Notes 7.375%, 5/15/1996 (Cost $3,577,432) $ 3,500,000 3,540,464 ----------- Repurchase Agreements 4.32% Repurchase Agreement with State Street Bank & Trust Co dated 8/31/1995 due 9/1/1995 at 5.250%, repurchased at $1,580,230 (Collateralized by US Treasury Notes due 5/31/1999 at 6.750%, value $1,610,976) (Cost $1,580,000) $ 1,580,000 1,580,000 ----------- TOTAL SHORT-TERM INVESTMENTS (Cost $5,157,432) 5,120,464 ----------- TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $35,301,194) (Cost for Income Tax Purposes $35,305,717) $36,570,188 =========== TOTAL RETURN Fund COMMON STOCKS 60.35% AEROSPACE & DEFENSE 2.05% Boeing Co 75,000 $4,781,250 Lockheed Martin 110,000 6,696,250 ----------- 11,477,500 ----------- AUTOMOBILE RELATED 1.37% Ford Motor 250,000 7,656,250 ----------- BANKING 5.42% First of America Bank 125,000 5,531,250 First Union 132,000 6,616,500 NBD Bancorp 200,000 7,150,000 NationsBank Corp 100,000 6,137,500 Wachovia Corp 125,000 4,968,750 ----------- 30,404,000 ----------- CHEMICALS 1.60% Dow Chemical 50,000 3,700,000 Imperial Chemical Industries PLC ADR 110,000 5,238,750 ----------- 8,938,750 ----------- COMPUTER RELATED 4.55% Compaq Computer* 125,000 5,968,750 Computer Associates International 91,000 6,324,500 Hewlett-Packard Co 75,000 6,000,000 International Business Machines 70,000 7,236,250 ----------- 25,529,500 ----------- DIVERSIFIED COMPANIES 6.49% du Pont (E I) de Nemours 50,000 3,268,750 General Electric 125,000 7,359,375 Hanson PLC Sponsored ADR 300,000 5,137,500 Loews Corp 30,000 3,941,250 Minnesota Mining & Manufacturing 100,000 5,462,500 National Service Industries 100,000 2,900,000 Norsk Hydro AS Sponsored ADR 100,000 4,225,000 Textron Inc 60,000 4,110,000 ----------- 36,404,375 ----------- FINANCE RELATED 1.99% Deluxe Corp 125,000 3,906,250 Dun & Bradstreet 125,000 7,234,375 ----------- 11,140,625 ----------- FOOD PRODUCTS & BEVERAGES 2.95% Anheuser-Busch Cos 100,000 5,712,500 Heinz (H J) Co 110,000 4,661,250 Unilever NV New York Shrs 50,000 6,181,250 ----------- 16,555,000 ----------- FOOD STORES -- WHOLESALE 0.69% SuperValu Inc 130,000 3,851,250 ----------- HEALTH CARE FACILITIES 0.96% Columbia/HCA Healthcare 115,000 $ 5,405,000 ----------- INSURANCE 2.88% American General 100,000 3,525,000 Marsh & McLennan 75,000 6,178,125 SAFECO Corp 100,000 6,462,500 ----------- 16,165,625 ----------- INVESTMENT BROKERS 1.16% Morgan Stanley Group 75,000 6,515,625 ----------- MEDICAL RELATED -- DRUGS 5.28% Abbott Laboratories 100,000 3,875,000 American Home Products 90,000 6,930,000 Bristol-Myers Squibb 100,000 6,862,500 Lilly (Eli) & Co 85,000 6,959,375 Merck & Co 100,000 4,987,500 ----------- 29,614,375 ----------- METALS 0.44% Alcan Aluminum 75,000 2,446,875 ----------- OIL & GAS RELATED 3.05% Amoco Corp 75,000 4,781,250 Repsol SA Sponsored ADR 200,000 6,325,000 Royal Dutch Petroleum 5 Gldr Shrs 50,000 5,962,500 ----------- 17,068,750 ----------- PAPER & PAPER PRODUCTS 1.93% Kimberly-Clark Corp 100,000 6,387,500 Westvaco Corp 100,000 4,412,500 ----------- 10,800,000 ----------- POLLUTION CONTROL RELATED 0.60% Browning-Ferris Industries 100,000 3,362,500 ----------- PRINTING & PUBLISHING 1.19% Gannett Co 125,000 6,687,500 ----------- RETAIL 5.26% K mart Corp 300,000 4,087,500 McDonald's Corp 100,000 3,650,000 Melville Corp 150,000 5,006,250 Penney (J C) Co 125,000 5,656,250 Rite Aid 175,000 4,900,000 Tandy Corp 100,000 6,212,500 ----------- 29,512,500 ----------- TEXTILES & APPAREL MANUFACTURERS 1.61% Liz Claiborne 200,000 4,550,000 Shaw Industries 300,000 4,500,000 ----------- 9,050,000 ----------- TOBACCO 2.46% American Brands 150,000 6,300,000 Philip Morris 100,000 7,462,500 ----------- 13,762,500 ----------- TOOLS 0.89% Snap-On Inc 122,000 5,002,000 ----------- TRANSPORTATION 1.08% Roadway Services 110,000 6,050,000 ----------- UTILITIES 4.45% NYNEX Corp 135,000 $6,075,000 Telefonica de Espana SA Sponsored ADR 125,000 5,078,125 Telefonos de Mexico SA de CV Sponsored ADR Representing Ord Series L Shrs 150,000 4,912,500 Texas Utilities 175,000 6,081,250 Unicom Corp 100,000 2,812,500 ----------- 24,959,375 ----------- TOTAL COMMON STOCKS (Cost $271,776,422) 338,359,875 ----------- FIXED INCOME SECURITIES 28.77% US Government Obligations 25.83% US Treasury Bonds 9.375%, 2/15/2006 $15,000,000 18,375,000 9.250%, 2/15/2016 $16,000,000 20,380,000 8.125%, 8/15/2019 $16,000,000 18,490,000 7.250%, 8/15/2022 $20,000,000 21,156,240 6.250%, 8/15/2023 $ 3,500,000 3,281,250 US Treasury Notes 8.750%, 8/15/2000 $15,000,000 16,682,790 8.250%, 7/15/1998 $ 8,000,000 8,475,000 8.000%, 1/15/1997 $ 4,000,000 4,116,244 7.875%, 1/15/1998 $ 1,750,000 1,825,469 7.875%, 11/15/1999 $ 7,100,000 7,568,146 6.375%, 7/15/1999 $ 3,000,000 3,033,750 6.375%, 8/15/2002 $15,000,000 15,131,250 5.750%, 8/15/2003 $ 3,500,000 3,380,776 5.500%, 2/28/1999 $ 3,000,000 2,954,058 ----------- TOTAL US GOVERNMENT OBLIGATIONS (Cost $134,197,818) 144,849,973 ----------- US Government Agency Obligations 1.09% Federal National Mortgage Association, Gtd Mortgage Pass-Through Certificates 7.500%, 8/1/2007 $ 2,280,997 2,319,955 Government National Mortgage Association I, Modified Pass-Through Certificates 7.000%, 10/15/2008 $1,237,942 1,243,932 6.500%, 10/15/2008 $1,285,011 1,268,793 6.000%, 11/15/2008 $1,322,349 1,284,304 ----------- TOTAL US GOVERNMENT AGENCY OBLIGATIONS (Cost $6,250,303) 6,116,984 ----------- Corporate Bonds 1.85% AEROSPACE & DEFENSE 0.27% Rockwell International, Notes 6.625%, 6/1/2005 $1,500,000 1,483,411 ----------- AUTOMOBILE RELATED 0.14% Ford Motor, Notes 7.500%, 11/15/1999 $ 750,000 $ 773,392 ----------- BANKING 0.57% National City Bank, Sub Notes 7.200%, 5/15/2005 $2,000,000 2,026,374 NationsBank Corp, Sr Notes 5.375%, 4/15/2000 $1,250,000 1,192,836 ----------- 3,219,210 ----------- FINANCE RELATED 0.14% Beneficial Corp Medium-Term Notes 5.350%, 10/8/1998 $ 800,000 775,887 ----------- FOOD PRODUCTS & BEVERAGES 0.28% PepsiCo Inc, Deb 7.750%, 10/1/1998 $1,500,000 1,561,703 ----------- RETAIL 0.13% Wal-Mart Stores, Notes 5.500%, 3/1/1998 $ 750,000 737,880 ----------- UTILITIES 0.32% Duke Power, 1st & Ref Mortgage 7.500%, 4/1/1999 $1,000,000 1,032,525 Union Electric, 1st Mortgage 6.750%, 10/15/1999 $ 750,000 756,377 ----------- 1,788,902 ----------- TOTAL CORPORATE BONDS (Cost $10,482,629) 10,340,385 ----------- TOTAL FIXED INCOME SECURITIES (Cost $150,930,750) 161,307,342 ----------- SHORT-TERM INVESTMENTS 10.88% US Government Obligations 0.60% US Treasury Notes 7.375%, 5/15/1996 (Cost $3,354,656) $3,300,000 3,338,151 ----------- Corporate Bonds 0.48% FINANCE RELATED 0.21% Associates Corp of North America, Notes 4.750%, 8/1/1996 $1,200,000 1,186,385 ----------- WASTE MANAGEMENT 0.27% Waste Management, Notes 7.875%, 8/15/1996 $1,500,000 1,525,103 ----------- TOTAL CORPORATE BONDS (Cost $2,738,466) 2,711,488 ----------- Commercial Paper 9.58% AEROSPACE & DEFENSE 0.89% Raytheon Co 5.690%, 9/8/1995 $5,000,000 4,994,468 ----------- FINANCE RELATED 3.88% American General Capital 5.850%, 9/1/1995 $1,800,000 1,800,000 Bell Atlantic Financial Services 5.720%, 9/11/1995 $5,000,000 4,992,056 Cargill Inc 5.700%, 9/20/1995 $5,000,000 $ 4,984,958 National Rural Utilities Cooperative Finance, 5.700%, 9/28/1995 $5,000,000 4,978,625 South Carolina Fuel 5.740%, 9/22/1995 $5,000,000 4,983,258 ----------- 21,738,897 ----------- FOOD PRODUCTS & BEVERAGES 0.89% Campbell Soup 5.700%, 9/29/1995 $5,000,000 4,977,833 ----------- INSURANCE 0.89% AIG Funding 5.680%, 9/22/1995 $5,000,000 4,983,433 ----------- MEDICAL RELATED -- DRUGS 1.15% Abbott Laboratories 5.700%, 9/27/1995 $6,500,000 6,473,242 ----------- PRINTING & PUBLISHING 0.99% Donnelley (R R) & Sons 5.700%, 9/14/1995 $5,600,000 5,588,473 ----------- TELECOMMUNICATIONS 0.89% AT & T Corp 5.690%, 9/22/1995 $5,000,000 4,983,404 ----------- TOTAL COMMERCIAL PAPER (Cost $53,739,750) 53,739,750 ----------- Repurchase Agreements 0.22% Repurchase Agreement with State Street Bank & Trust Co dated 8/31/1995 due 9/1/1995 at 5.250%, repurchased at $1,245,182 (Collateralized by US Treasury Notes due 5/31/1999 at 6.750%, value $1,273,190)(Cost $1,245,000) $1,245,000 1,245,000 ----------- TOTAL SHORT-TERM INVESTMENTS (Cost $61,077,872) 61,034,389 ----------- TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $483,785,044) (Cost for Income Tax Purposes $483,799,704) $ 560,701,606 ============= VALUE EQUITY Fund COMMON STOCKS 99.26% AEROSPACE & DEFENSE 4.24% Boeing Co 25,000 $ 1,593,750 Lockheed Martin 35,860 2,182,978 Raytheon Co 32,000 2,588,000 ----------- 6,364,728 ----------- AUTOMOBILE RELATED 2.39% Cooper Tire & Rubber 60,000 $ 1,560,000 Ford Motor 66,000 2,021,250 ----------- 3,581,250 ----------- BANKING 4.16% Boatmen's Bancshares 53,000 1,961,000 NBD Bancorp 60,000 2,145,000 Wachovia Corp 53,700 2,134,575 ----------- 6,240,575 ----------- CHEMICALS 3.08% Dow Chemical 44,000 3,256,000 Nalco Chemical 39,000 1,365,000 ----------- 4,621,000 ----------- COMPUTER RELATED 6.12% Automatic Data Processing 20,200 1,313,000 Compaq Computer* 56,000 2,674,000 Computer Associates International 31,000 2,154,500 Hewlett-Packard Co 38,000 3,040,000 ----------- 9,181,500 ----------- DIVERSIFIED COMPANIES 6.13% General Electric 42,100 2,478,637 Hanson PLC Sponsored ADR 128,300 2,197,137 Minnesota Mining & Manufacturing 30,000 1,638,750 Textron Inc 42,000 2,877,000 ----------- 9,191,524 ----------- ELECTRICAL EQUIPMENT 1.55% Emerson Electric 32,700 2,333,962 ----------- FINANCE RELATED 2.31% Dun & Bradstreet 60,000 3,472,500 ----------- FOOD PRODUCTS & BEVERAGES 5.18% Anheuser-Busch Cos 23,000 1,313,875 Heinz (H J) Co 35,000 1,483,125 PepsiCo Inc 64,800 2,932,200 Tyson Foods Class A 79,200 2,039,400 ----------- 7,768,600 ----------- FOOD STORES -- WHOLESALE 0.86% Fleming Cos 44,500 1,296,062 ----------- HEALTH CARE FACILITIES 2.99% Columbia/HCA Healthcare 61,000 2,867,000 Manor Care 50,000 1,618,750 ----------- 4,485,750 ----------- HOUSEHOLD APPLIANCES 1.67% Maytag Corp 161,700 2,506,350 ----------- INSURANCE 8.49% American General 67,000 2,361,750 American International Group 28,500 2,297,812 General Re 18,000 2,675,250 Jefferson-Pilot Corp 29,050 1,826,519 Marsh & McLennan 20,000 1,647,500 SAFECO Corp 30,000 1,938,750 ----------- 12,747,581 ----------- INVESTMENT BROKERS 1.79% Morgan Stanley Group 31,000 2,693,125 ----------- MEDICAL RELATED -- DRUGS 10.80% Abbott Laboratories 57,000 $ 2,208,750 American Home Products 26,000 2,002,000 Bristol-Myers Squibb 30,000 2,058,750 Lilly (Eli) & Co 32,000 2,620,000 Merck & Co 48,000 2,394,000 Schering-Plough Corp 47,400 2,210,025 Warner-Lambert Co 30,000 2,711,250 ----------- 16,204,775 ----------- OFFICE EQUIPMENT 1.94% Pitney-Bowes Inc 71,700 2,912,813 ----------- OIL & GAS RELATED 6.24% Amoco Corp 40,000 2,550,000 Exxon Corp 35,275 2,425,156 Repsol SA Sponsored ADR 55,400 1,752,025 Royal Dutch Petroleum 5 Gldr Shrs 22,076 2,632,563 ----------- 9,359,744 ----------- PAPER & PAPER PRODUCTS 1.25% Westvaco Corp 42,700 1,884,138 ----------- POLLUTION CONTROL RELATED 2.45% Browning-Ferris Industries 18,500 $ 622,063 WMX Technologies 104,000 3,055,000 ----------- 3,677,063 ----------- PRINTING & PUBLISHING 1.91% Donnelley (R R) & Sons 33,000 1,254,000 Gannett Co 30,000 1,605,000 ----------- 2,859,000 ----------- RECREATION SERVICES 1.87% Disney (Walt) Co 50,000 2,806,250 ----------- RETAIL 8.34% Dillard Department Stores Class A 57,000 1,759,875 Giant Food Class A 64,000 1,992,000 Home Depot 50,800 2,025,650 K mart Corp 125,800 1,714,025 McDonald's Corp 67,000 2,445,500 Penney (J C) Co 34,000 1,538,500 Toys "R" Us* 40,000 1,040,000 ----------- 12,515,550 ----------- TELECOMMUNICATIONS 1.03% Southern New England Telecommunications 46,000 1,546,750 ----------- TEXTILES & APPAREL MANUFACTURERS 2.15% Russell Corp 44,700 1,229,250 Shaw Industries 133,100 1,996,500 ----------- 3,225,750 ----------- TOBACCO 3.41% Philip Morris 50,000 3,731,250 UST Inc 50,800 1,384,300 ----------- 5,115,550 ----------- TRANSPORTATION 1.44% Hunt (J B) Transport Services 63,000 1,008,000 Illinois Central Series A 30,000 1,151,250 ----------- 2,159,250 ----------- UTILITIES 5.47% CINergy Corp 100,700 $2,580,438 SCEcorp 93,000 1,546,125 Southern Co 50,000 1,056,250 Telefonos de Mexico de CV Sponsored ADR Representing Ord Series L Shrs 58,000 1,899,500 Unicom Corp 40,000 1,125,000 ----------- 8,207,313 ----------- TOTAL COMMON STOCKS (Cost $124,789,343) 148,958,453 ----------- SHORT-TERM INVESTMENTS -- REPURCHASE AGREEMENTS 0.74% Repurchase Agreement with State Street Bank & Trust Co dated 8/31/1995 due 9/1/1995 at 5.250%, repurchased at $1,110,162 (Collateralized by US Treasury Notes due 5/31/1999 at 6.750%, value $1,132,880) (Cost $1,110,000) $ 1,110,000 $ 1,110,000 ------------- TOTAL INVESTMENT SECURITIES AT VALUE 100.00% (Cost $125,899,343) (Cost for Income Tax Purposes $126,092,658) $ 150,068,453 ============= *Security is non-income producing. See Notes to Financial Statements INVESCO Value Trust Statement of Assets and Liabilities August 31, 1995
Intermediate Government Total Return Value Equity Bond Fund Fund Fund ------------ ------------ ------------ ASSETS Investment Securities: At Cost~ $35,301,194 $ 483,785,044 $ 125,899,343 =========== ============= ============= At Value~ $36,570,188 $ 560,701,606 $ 150,068,453 Cash 1,741 83,915 3,436 Receivables: Investment Securities Sold 0 0 2,422,932 Fund Shares Sold 446,625 1,059,923 229,888 Dividends and Interest 325,445 2,197,868 497,341 Prepaid Expenses and Other Assets 12,662 51,061 25,648 ----------- ------------- ------------- TOTAL ASSETS 37,356,661 564,094,373 153,247,698 ----------- ------------- ------------- LIABILITIES Payables: Distributions to Shareholders 5,404 100,481 35,071 Fund Shares Repurchased 7,264 504,085 30,961 Accrued Expenses and Other Payables 4,649 21,317 10,777 ----------- ------------- ------------- TOTAL LIABILITIES 17,317 625,883 76,809 ----------- ------------- ------------- Net Assets at Value $37,339,344 $ 563,468,490 $ 153,170,889 =========== ============= ============= NET ASSETS Paid-in Capital $37,002,946 $ 484,925,751 $ 126,093,101 Accumulated Undistributed Net Investment Income (Loss) 0 (6,527) 12,616 Accumulated Undistributed Net Realized Gain (Loss) on Investment Securities (932,596) 1,632,704 2,896,062 Net Appreciation of Investment Securities 1,268,994 76,916,562 24,169,110 ----------- ------------- ------------- Net Assets at Value $37,339,344 $ 563,468,490 $ 153,170,889 =========== ============= ============= Shares Outstanding* 2,953,843 26,892,589 7,842,096 Net Asset Value, Offering and Redemption Price per Share $12.64 $20.95 $19.53 ~ Investment securities at cost and value at August 31, 1995 include repurchase agreements of $1,580,000, $1,245,000 and $1,110,000 for Intermediate Government Bond, Total Return and Value Equity Funds, respectively. * The Trust has one class of shares, which may be divided into different series, each representing an interest in a separate Fund. At August 31, 1995, there was an unlimited number of authorized Fund shares.
See Notes to Financial Statements INVESCO Value Trust Statement of Operations Year Ended August 31, 1995
Intermediate Government Total Return Value Equity Bond Fund Fund Fund ------------ ------------ ------------ INVESTMENT INCOME INCOME Dividends $ 0 $ 7,016,050 $ 3,599,838 Interest 2,585,959 11,704,821 573,461 Foreign Taxes Withheld 0 (164,839) (49,319) ----------- ----------- ------------ TOTAL INCOME 2,585,959 18,556,032 4,123,980 ----------- ----------- ------------ EXPENSES Investment Advisory Fees 214,128 2,824,847 974,578 Transfer Agent Fees 130,781 477,373 168,354 Administrative Fees 15,353 66,616 29,713 Custodian Fees and Expenses 6,222 27,232 10,178 Professional Fees and Expenses 14,510 36,669 22,429 Registration Fees and Expenses 24,834 58,964 38,357 Reports to Shareholders 10,544 39,239 12,989 Trustees' Fees and Expenses 9,116 28,146 14,940 Other Expenses 4,232 13,086 5,684 ----------- ----------- ------------ TOTAL EXPENSES 429,720 3,572,172 1,277,222 ----------- ----------- ------------ NET INVESTMENT INCOME 2,156,239 14,983,860 2,846,758 ----------- ----------- ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES Net Realized Gain (Loss) on Investment Securities (915,758) 2,916,413 5,886,502 Change in Net Appreciation of Investment Securities 2,538,939 46,627,023 14,593,965 ----------- ----------- ------------ NET GAIN ON INVESTMENT SECURITIES 1,623,181 49,543,436 20,480,467 ----------- ----------- ------------ Net Increase in Net Assets from Operations $ 3,779,420 $64,527,296 $ 23,327,225 =========== =========== ============
See Notes to Financial Statements INVESCO Value Trust Statement of Changes in Net Assets Year Ended August 31
Intermediate Government Bond Fund Total Return Fund ----------- ------------ ------------ ------------ 1995 1994 1995 1994 OPERATIONS Net Investment Income $ 2,156,239 $ 2,058,207 $ 14,983,860 $ 8,343,044 Net Realized Gain (Loss) on Investment Securities (915,758) 620,157 2,916,413 2,193,169 Change in Net Appreciation (Depreciation) of Investment Securities 2,538,939 (2,854,227) 46,627,023 7,456,021 ----------- ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 3,779,420 (175,863) 64,527,296 17,992,234 ----------- ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS Net Investment Income (2,147,391) (2,052,118) (14,983,860) (8,343,044) In Excess of Net Investment Income 0 (6,095) (20,316) (1,271,098) Net Realized Gain on Investment Securities 0 (1,054,005) (787,737) (2,193,169) In Excess of Net Realized Gain on Investment Securities 0 0 0 (1,987,157) ----------- ------------ ----------- ----------- TOTAL DISTRIBUTIONS (2,147,391) (3,112,218) (15,791,913) (13,794,468) ----------- ------------ ----------- ----------- FUND SHARE TRANSACTIONS Proceeds from Sales of Shares 27,363,047 14,705,799 326,800,315 132,448,414 Reinvestment of Distributions 2,080,851 2,969,516 15,396,556 13,327,958 ----------- ------------ ----------- ----------- 29,443,898 17,675,315 342,196,871 145,776,372 Amounts Paid for Repurchases of Shares (25,597,128) (21,910,324) (120,228,352) (77,433,579) ------------ ------------ ------------- ------------ NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE TRANSACTIONS 3,846,770 (4,235,009) 221,968,519 68,342,793 ------------ ------------ ----------- ----------- Total Increase (Decrease) in Net Assets 5,478,799 (7,523,090) 270,703,902 72,540,559 NET ASSETS Beginning of Period 31,860,545 39,383,635 292,764,588 220,224,029 End of Period $ 37,339,344 $ 31,860,545 $ 563,468,490 $292,764,588 ============ ============ ============= ============ Accumulated Undistributed Net Investment Loss Included in Net Assets at End of Period $ 0 $ 0 $ (6,527) $ 0 ------------------------------------ FUND SHARE TRANSACTIONS Shares Sold $ 2,246,918 $ 1,154,467 $ 16,593,356 $ 7,264,152 Shares Issued from Reinvestment of Distributions 170,015 235,197 786,039 728,959 ----------- ------------ ----------- ----------- 2,416,933 1,389,664 17,379,395 7,993,111 Shares Repurchased (2,082,218) (1,743,095) (6,275,356) (4,260,757) ----------- ------------ ----------- ----------- Net Increase (Decrease) in Fund Shares $ 334,715 $ (353,431) $ 11,104,039 $ 3,732,354 ============ ============ ============ ============
See Notes to Financial Statements INVESCO Value Trust Statement of Changes in Net Assets (Continued) Year Ended August 31 Value Equity Fund --------------------------- 1995 1994 OPERATIONS Net Investment Income $2,846,758 $ 1,802,411 Net Realized Gain on Investment Securities 5,886,502 5,051,741 Change in Net Appreciation of Investment Securities 14,593,965 2,024,162 --------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS 23,327,225 8,878,314 --------------------------- DISTRIBUTIONS TO SHAREHOLDERS Net Investment Income (2,834,142) (1,802,411) In Excess of Net Investment Income 0 (239,803) Net Realized Gain on Investment Securities (7,116,877) (5,176,510) --------------------------- TOTAL DISTRIBUTIONS (9,951,019) (7,218,724) --------------------------- FUND SHARE TRANSACTIONS Proceeds from Sales of Shares 98,871,021 106,482,312 Reinvestment of Distributions 9,797,324 7,097,380 --------------------------- 108,668,345 113,579,692 Amounts Paid for Repurchases of Shares (80,723,493) (85,303,387) --------------------------- NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS 27,944,852 28,276,305 --------------------------- Total Increase in Net Assets 41,321,058 29,935,895 NET ASSETS Beginning of Period 111,849,831 81,913,936 --------------------------- End of Period $153,170,889 $ 111,849,831 =========================== Accumulated Undistributed Net Investment Income Included in Net Assets at End of Period $12,616 $ 0 FUND SHARE TRANSACTIONS Shares Sold 5,496,357 6,026,761 Shares Issued from Reinvestment of Distributions 573,039 405,056 6,069,396 6,431,817 Shares Repurchased (4,400,997) (4,861,383) Net Increase in Fund Shares 1,668,399 1,570,434 See Notes to Financial Statements INVESCO Value Trust Notes to Financial Statements NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Value Trust (the "Trust") is organized under the laws of the Commonwealth of Massachusetts and consists of three separate funds: Intermediate Government Bond Fund, Total Return Fund and Value Equity Fund. The Trust is registered under the Investment Company Act of 1940, (the "Act") as a diversified, open-end management investment company. 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 dealers making a market for such securities. 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 Trust's trustees. 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. 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. Certain dividends from foreign securities will be recorded as soon as the Trust 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. 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. The Trust may have elements of risk due to concentrated investments in foreign issuers located in a specific country. Such concentrations may subject the Trust to additional risks resulting from future political or economic conditions and/or possible imposition of adverse foreign governmental laws or currency exchange restrictions. D. FEDERAL AND STATE TAXES -- The Trust 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. At August 31, 1995, Intermediate Government Bond Fund had $411,995 in net capital loss carryovers which expire in the year 2003. Intermediate Government Bond Fund incurred and elected to defer post-October 31 net capital losses of $524,072 to the year ended August 31, 1996. To the extent future capital gains are offset by capital loss carryovers and deferred post-October 31 losses, such gains will not be distributed to shareholders. Dividends paid by the 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. Of the ordinary income distributions declared for the year ended August 31, 1995, 39.09% for Total Return Fund and 63.08% for Value Equity Fund qualified for the dividends received deduction available to the Trust'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. 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 Intermediate Government Bond Fund's 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, foreign currency transactions, nontaxable dividends, net operating losses and expiring capital loss carryforwards. During the year ended August 31, 1995, Intermediate Government Bond Fund reclassified $8,848 from accumulated undistributed net investment income to accumulated undistributed net realized gain on investment securities. During the year ended August 31, 1995, Total Return Fund reclassified $13,789 from paid-in capital to accumulated undistriuted net investment income and $12,587 from paid-in capital to accumulated undistributed net realized gain on investment securities. Net investment income and net assets were not affected. 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. s compensation for its services to the Trust, IFG receives an investment advisory fee which is accrued daily at the applicable rate and paid monthly. he 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 - --------------------------------------------------------------------------- Intermediate Government Bond Fund 0.60% 0.50% 0.40% Total Return Fund 0.75% 0.65% 0.50% Value Equity Fund 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. he fee is accrued daily and paid monthly. IFG receives a transfer agent fee at an annual rate of $14.00 for Total Return and Value Equity Funds, and $20.00 for Intermediate 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 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 as follows: Fund Purchases Sales - -------------------------------------------------------------------------------- Total Return Fund $148,343,238 $ 24,774,702 Value Equity Fund 71,334,113 41,209,341 For the year ended August 31, 1995, the aggregate cost of purchases and proceeds from sales of U.S. Government securities were as follows: Fund Purchases Sales - -------------------------------------------------------------------------------- Intermediate Government Bond Fund $ 34,012,018 $31,192,247 Total Return Fund 135,272,188 79,604,469 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, the gross depreciation of securities in which there was an excess of tax cost over value and the resulting net appreciation by Fund were as follows: Gross Gross Net Fund Appreciation Depreciation Appreciation - -------------------------------------------------------------------------------- Intermediate Government Bond Fund $ 1,404,427 $ 139,956 $ 1,264,471 Total Return Fund 80,479,718 3,577,816 76,901,902 Value Equity Fund 26,505,004 2,529,209 23,975,795 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 year ended August 31, 1995, included in Trustees' Fees and Expenses in the Statement of Operations, and unfunded accrued pension costs and pension liability included in prepaid expenses and accrued expenses, respectively, in the Statement of Assets and Liabilities were as follows: Unfunded Pension Accrued Pension Fund Expenses Pension Costs Liability - -------------------------------------------------------------------------------- Intermediate Government Bond Fund $ 703 $ 1,129 $ 1,832 Total Return Fund 6,527 10,474 17,001 Value Equity Fund 2,674 4,290 6,964 INVESCO Value Trust Financial Highlights (For a Fund Share Outstanding throughout Each Period)
Period Ended Year Ended August 31 August 31 Year Ended December 31 --------------------------------------------------------------------- 1995 1994 1993 1992 1991 1990 (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 0.73 0.70 0.48 0.90 0.89 1.00 Net Gains or (Losses) on Securities (Both Realized and Unrealized) 0.48 (0.75) 0.57 (0.16) 0.77 0.05 -------- -------- -------- -------- -------- -------- Total from Investment Operations 1.21 (0.05) 1.05 0.74 1.66 1.05 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS Dividends from Net Investment Income+ 0.73 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 0.73 1.04 0.48 0.95 0.90 0.99 -------- -------- -------- -------- -------- -------- Net Asset Value -- End of Period $ 12.64 $ 12.16 $ 13.25 $ 12.68 $ 12.89 $ 12.13 ======== ======== ======== ======== ======== ======== TOTAL RETURN 10.36% (0.37%) 8.38%* 6.03% 14.16% 9.08% RATIOS Net Assets -- End of Period ($000 Omitted) $ 37,339 $ 31,861 $ 39,384 $ 29,649 $ 24,385 $ 18,380 Ratio of Expenses to Average Net Assets# 1.20% 1.07% 0.96%~ 0.97% 0.93% 0.85% Ratio of Net Investment Income to Average Net Assets# 6.04% 5.58% 5.48%~ 6.38% 7.28% 8.16% Portfolio Turnover Rate 92% 49% 34%* 93% 51% 31% + Distributions in excess of net investment income for the year ended August 31, 1994, aggregated less than $0.01on 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 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)
Period Ended Year Ended August 31 August 31 Year Ended December 31 -------------------- --------- ---------------------------------- 1995 1994 1993 1992 1991 1990 (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 0.72 0.69 0.40 0.66 0.71 0.74 Net Gains or (Losses) on Securities (Both Realized and Unrealized) 2.46 0.60 1.09 0.93 2.78 (0.80) --------- --------- --------- --------- --------- --------- Total from Investment Operations 3.18 1.29 1.49 1.59 3.49 (0.06) --------- --------- --------- --------- --------- --------- LESS DISTRIBUTIONS Dividends from Net Investment Income 0.72 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 0.77 1.02 0.40 0.84 1.27 0.81 --------- --------- --------- --------- --------- --------- Net Asset Value -- End of Period $ 20.95 $ 18.54 $ 18.27 $ 17.18 $ 16.43 $ 14.21 ========= ========= ========= ========= ========= ========= TOTAL RETURN 17.54% 7.22% 8.72%* 9.84% 24.96% (0.35%) RATIOS Net Assets -- End of Period ($000 Omitted) $ 563,468 $ 292,765 $ 220,224 $ 137,196 $ 82,219 $ 54,874 Ratio of Expenses to Average Net Assets 0.95% 0.96% 0.93%~ 0.88% 0.92% 1.00% Ratio of Net Investment Income to Average Net Assets 3.97% 3.31% 3.51%~ 4.06% 4.62% 5.22% Portfolio Turnover Rate 30% 12% 19%* 13% 49% 24% + Distributions in excess of net investment income for the year ended August 31, 1995, 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. ~ Annualized
INVESCO Value Trust Financial Highlights (Continued) (For a Fund Share Outstanding throughout Each Period)
Period Ended Year Ended August 31 August 31 Year Ended December 31 -------------------- --------- -------------------------------- 1995 1994 1993 1992 1991 1990 (Note 1) Value Equity Fund PER SHARE DATA Net Asset Value -- Beginning of Period $ 18.12 $ 17.79 $ 16.91 $ 16.57 $ 13.88 $ 15.30 --------- --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS Net Investment Income 0.39 0.36 0.24 0.36 0.40 0.44 Net Gains or (Losses) on Securities (Both Realized and Unrealized) 2.58 1.20 0.88 0.45 4.54 (1.33) --------- --------- --------- --------- --------- --------- Total from Investment Operations 2.97 1.56 1.12 0.81 4.94 (0.89) --------- --------- --------- --------- --------- --------- LESS DISTRIBUTIONS Dividends from Net Investment Income 0.39 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 1.56 1.23 0.24 0.47 2.25 0.53 --------- --------- --------- --------- --------- --------- Net Asset Value -- End of Period $ 19.53 $ 18.12 $ 17.79 $ 16.91 $ 16.57 $ 13.88 ========= ========= ========= ========= ========= ========= TOTAL RETURN 17.84% 9.09% 6.65%* 4.98% 35.84% (5.80%) RATIOS Net Assets -- End of Period ($000 Omitted) $ 153,171 $ 111,850 $ 81,914 $ 78,609 $ 39,741 $ 29,825 Ratio of Expenses to Average Net Assets# 0.97% 1.01% 1.00%~ 0.91% 0.98% 1.00% Ratio of Net Investment Income to Average Net Assets# 2.17% 1.80% 2.07%~ 2.19% 2.39% 3.00% Portfolio Turnover Rate 34% 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
Report of Independent Accountants To the Trustees and Shareholders of INVESCO Value Trust 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 Intermediate Government Bond Fund, INVESCO Total Return Fund and INVESCO Value Equity Fund (constituting the INVESCO Value Trust, hereafter referred to as the "Fund") at August 31, 1995, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for the periods indicated, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at 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 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-----