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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR/A
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-1474
----------------------------------------
AIM Stock Funds (Successor to: INVESCO Stock Funds, Inc.)
------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 100 Houston, Texas 77046
------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert H. Graham 11 Greenway Plaza, Suite 100 Houston, Texas 77046
------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (713) 626-1919
------------------------
Date of fiscal year end: 7/31/03
----------------
Date of reporting period: 7/31/03
---------------
Explanatory Note
The Registrant is filing this Amendment to its Certified Shareholder Report on
Form N-CSR filed with the Securities and Exchange Commission on October 6, 2003:
to provide the Certifications required by Rule 30a-2(a) of the Investment
Company Act of 1940, as amended, identified as included in the original Form
N-CSR but not attached thereto, to provide the Certifications required by Rule
30a-2(b) of the Investment Company Act of 1940, as amended, and to comply with
the applicable exhibit requirements of Form N-CSR. This Form N-CSR/A is also
being filed to amend Item 1 "Reports to Stockholders" with respect to the
INVESCO Mid-Cap Growth Fund's annual report to correct an error in the chart
in such annual report that shows the total return of the fund's Institutional
Class shares during the period between 9/98 and 7/03. This N-CSR/A also amends
the previous filing disclosure for Item 2 "Code of Ethics" to provide all
applicable disclosure, and updates Item 9 "Controls and Procedures" as
required. Other than the aforementioned revisions this Form N-CSR/A does not
reflect events occurring after the filing of the original Form N-CSR, or modify
or update the disclosures therein in any way.
ITEM 1. REPORT TO SHAREHOLDERS
JULY 31, 2003
ANNUAL REPORT
INVESCO STOCK FUNDS, INC.
DYNAMICS FUND
GROWTH FUND
GROWTH & INCOME FUND
MID-CAP GROWTH FUND
S&P 500 INDEX FUND
SMALL COMPANY GROWTH FUND
VALUE EQUITY FUND
"AFTER THREE YEARS OF DECLINES IN THE STOCK MARKET, CONDITIONS IMPROVED..."
SEE PAGE 18
[INVESCO ICON] INVESCO(R)
INVESCO MID-CAP GROWTH FUND
Supplement dated August 3, 2004
to the Annual Report dated July 31, 2003
On page 12 of the Annual Report dated July 31, 2003, incorrect information was
presented in the line chart depicting the growth of $10,000 for the
Institutional Class shares of INVESCO Mid-Cap Growth Fund. Set forth below is
the corrected line chart.
[LINE CHART]
INVESCO MID-CAP GROWTH FUND-INSTITUTIONAL CLASS
GROWTH OF $10,000
9/9/98 (Class inception date)-7/31/03
Index data from 8/31/98
INVESCO Mid-Cap Growth Fund Institutional Class Shares
- ---------------------------------------------------------
8/31/98 $10,000
- ----------------------------- ---------------------------
7/99 $13,451
- ----------------------------- ---------------------------
7/00 $19,420
- ----------------------------- ---------------------------
7/01 $16,492
- ----------------------------- ---------------------------
7/02 $13,483
- ----------------------------- ---------------------------
7/03 $15,643
- ---------------------------------------------------------
Russell Midcap Growth Index
- ---------------------------------------------------------
8/31/98 $10,000
- ----------------------------- ---------------------------
7/99 $15,040
- ----------------------------- ---------------------------
7/00 $21,621
- ----------------------------- ---------------------------
7/01 $14,743
- ----------------------------- ---------------------------
7/02 $10,514
- ----------------------------- ---------------------------
7/03 $12,948
- ---------------------------------------------------------
If you wish to obtain a copy of the Annual Report dated July 31, 2003, please
contact us:
By Mail: AIM Investment Services, Inc.
P.O. Box 4739
Houston, TX 77210-4739
By Telephone: 800-959-4246
On the Internet: You can send us a request by email or download the
Annual Report dated July 31, 2003, via our Web site,
aiminvestments.com
Past performance cannot guarantee comparable future results.
Fund performance includes reinvested distributions, fund expenses and management
fees. Index results include reinvested dividends, but they do not reflect fund
expenses or management fees. Performance shown in the chart does not reflect
deduction of taxes a shareholder would pay on fund distributions or sale of fund
shares. Performance of the index does not reflect the effects of taxes.
AIMinvestments.com
I-MCG-INS-3 8/04
A I M Distributors, Inc.
AIM Investments Logo--Registered Trademark--
Your goals. Our solutions--Registered Trademark--
[PHOTOGRAPH OF RAYMOND R. CUNNINGHAM OMITTED]
NEW DISTRIBUTOR FOR INVESCO FUNDS
FELLOW SHAREHOLDER:
In recent months, we at INVESCO have taken some key steps in our ongoing effort
to provide you with high-quality investment products and services. As you may
have already heard, we've decided to work more closely with AIM
Investments(SM),* a well-respected leader in the asset management industry. As a
result, A I M Distributors, Inc., became the distributor of INVESCO's U.S.
retail funds effective July 1, 2003. This move has allowed us to create a single
distribution system for both our companies that is supported by more than
200,000 financial consultants.
Some of the INVESCO stock funds discussed in this annual report also underwent
portfolio management shifts on July 1. You'll notice that, while the investment
objectives for Growth Fund, Growth & Income Fund, and Value Equity Fund remain
the same, these funds are now under the stewardship of veteran portfolio
management teams from AIM. You can read more about the new managers in the
relevant fund reports.
Another step we hope to take in combining resources with AIM is the
restructuring of 14 INVESCO funds and six AIM funds. By now you've likely
received one or more proxies concerning your INVESCO funds, and I encourage you
to vote every proxy you receive. There are three convenient ways to vote. For
those of you with Internet access, simply go to www.aiminvestments.com and click
on the icon for Proxy Voting. Or, you can mail your proxy card in the
postage-paid envelope that accompanies every proxy. The final option is to phone
in your vote by calling 1-800-880-9347.
Thank you for your continued support. If you have questions about any of these
changes, please don't hesitate to call us at 1-800-959-4246.
Sincerely,
/s/Ray Cunningham
Ray Cunningham
President and CEO, INVESCO Funds Group, Inc.
*AIM INVESTMENTS IS A SERVICE MARK OF A I M MANAGEMENT GROUP INC. AND IS THE
SUBJECT OF A PENDING APPLICATION FOR TRADEMARK REGISTRATION. A I M ADVISORS,
INC., A I M CAPITAL MANAGEMENT, INC., AIM PRIVATE ASSET MANAGEMENT, INC. AND AIM
ALTERNATIVE ASSET MANAGEMENT COMPANY, INC. ARE THE INVESTMENT ADVISORS FOR THE
PRODUCTS AND SERVICES REPRESENTED BY AIM INVESTMENTS. A I M DISTRIBUTORS, INC.
IS THE DISTRIBUTOR FOR THE RETAIL MUTUAL FUNDS AND FUND MANAGEMENT COMPANY IS
THE DISTRIBUTOR FOR THE INSTITUTIONAL MONEY MARKET FUNDS REPRESENTED BY AIM
INVESTMENTS.
INVESCO STOCK FUNDS, INC.
TOTAL RETURN PERIODS ENDED 7/31/03*
Manager's
Cumulative 10 years or Report
Fund (Inception) 6 months 1 year 5 years+ Since Inception** Page #
- -------------------------------------------------------------------------------------------------------------------------------
DYNAMICS FUND - CLASS A (4/02) WITH SALES CHARGE 14.13% 12.04% N/A (15.95%)**+ 3
- -------------------------------------------------------------------------------------------------------------------------------
DYNAMICS FUND - CLASS B (4/02) WITH CDSC 15.40% 12.72% N/A (16.24%)**+ 3
- -------------------------------------------------------------------------------------------------------------------------------
DYNAMICS FUND - CLASS C (2/00) WITH CDSC 19.31% 16.47% N/A (20.99%)**+ 3
- -------------------------------------------------------------------------------------------------------------------------------
DYNAMICS FUND - CLASS K (12/00) 20.64% 18.40% N/A (19.17%)**+ 3
- -------------------------------------------------------------------------------------------------------------------------------
DYNAMICS FUND - INVESTOR CLASS (9/67) 20.74% 18.50% (1.43%) 8.75% 3
- -------------------------------------------------------------------------------------------------------------------------------
DYNAMICS FUND - INSTITUTIONAL CLASS (5/00) 21.12% 19.12% N/A (17.74%)**+ 3
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH FUND - CLASS A (4/02) WITH SALES CHARGE 13.29% 2.87% N/A (21.68%)**+ 6
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH FUND - CLASS B (4/02) WITH CDSC 15.13% 4.82% N/A (21.42%)**+ 6
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH FUND - CLASS C (2/00) WITH CDSC 18.86% 8.38% N/A (32.52%)**+ 6
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH FUND - CLASS K (12/00) 20.44% 10.00% N/A (35.72%)**+ 6
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH FUND - INVESTOR CLASS (11/35) 20.00% 9.76% (15.27%) 0.49% 6
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND - CLASS A (4/02) WITH SALES CHARGE 11.52% 1.52% N/A (20.29%)**+ 8
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND - CLASS B (4/02) WITH CDSC 12.62% 1.61% N/A (20.69%)**+ 8
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND - CLASS C (2/00) WITH CDSC 16.36% 5.39% N/A (24.40%)**+ 8
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND - CLASS K (12/00) 17.73% 7.10% N/A (26.42%)**+ 8
- -------------------------------------------------------------------------------------------------------------------------------
GROWTH & INCOME FUND - INVESTOR CLASS (7/98) 17.84% 7.23% (6.56%) (4.44%)**+ 8
- -------------------------------------------------------------------------------------------------------------------------------
MID-CAP GROWTH FUND - CLASS A (10/01) WITH SALES CHARGE 11.13% 9.22% N/A 6.35%**+ 11
- -------------------------------------------------------------------------------------------------------------------------------
MID-CAP GROWTH FUND - CLASS B (10/01) WITH CDSC 12.26% 9.82% N/A 6.84% **+ 11
- -------------------------------------------------------------------------------------------------------------------------------
MID-CAP GROWTH FUND - CLASS C (10/01) WITH CDSC 16.19% 13.36% N/A 8.50%**+ 11
- -------------------------------------------------------------------------------------------------------------------------------
MID-CAP GROWTH FUND - INSTITUTIONAL CLASS (9/98) 17.88% 16.03% N/A 9.58% **+ 11
- -------------------------------------------------------------------------------------------------------------------------------
MID-CAP GROWTH FUND - INVESTOR CLASS (9/02) 17.65% N/A N/A 20.07%**u 11
- -------------------------------------------------------------------------------------------------------------------------------
S&P 500 INDEX FUND - INSTITUTIONAL CLASS (12/97) 16.35% 9.98% (1.64%) 1.94%**+ 13
- -------------------------------------------------------------------------------------------------------------------------------
S&P 500 INDEX FUND - INVESTOR CLASS (12/97) 16.25% 9.73% (1.71%) 2.05%**+ 13
- -------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND - CLASS A (4/02) WITH SALES CHARGE 16.55% 12.36% N/A (12.22%)**+ 14
- -------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND - CLASS B (4/02) WITH CDSC 17.95% 12.84% N/A (12.18%)**+ 14
- -------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND - CLASS C (2/00) WITH CDSC 21.14% 16.45% N/A (18.67%)**+ 14
- -------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND - CLASS K (12/01) 23.33% 18.51% N/A (9.57%)**+ 14
- -------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND - INVESTOR CLASS (12/91) 23.33% 18.79% 3.17% 8.69% 14
- -------------------------------------------------------------------------------------------------------------------------------
VALUE EQUITY FUND - CLASS A (4/02) WITH SALES CHARGE 7.91% 1.98% N/A (13.72%)**+ 16
- -------------------------------------------------------------------------------------------------------------------------------
VALUE EQUITY FUND - CLASS B (4/02) WITH CDSC 8.83% 2.30% N/A (13.28%)**+ 16
- -------------------------------------------------------------------------------------------------------------------------------
VALUE EQUITY FUND - CLASS C (2/00) WITH CDSC 12.91% 6.30% N/A (4.38%)**+ 16
- -------------------------------------------------------------------------------------------------------------------------------
VALUE EQUITY FUND - INVESTOR CLASS (5/86) 14.29% 8.10% (2.70%) 7.68% 16
- -------------------------------------------------------------------------------------------------------------------------------
*PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. 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 FUNDS' CLASS A PERFORMANCE REFLECTS
THE MAXIMUM SALES CHARGE OF 5.50%. THE FUNDS' CLASS B AND CLASS C PERFORMANCE
REFLECTS THE DEDUCTION OF THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE (CDSC)
FOR THE PERIODS SHOWN. THE CDSC ON CLASS B SHARES DECLINES FROM 5% BEGINNING AT
THE TIME OF PURCHASE TO 0% AT THE BEGINNING OF THE SEVENTH YEAR. THE CDSC ON
CLASS C SHARES IS 1% FOR THE FIRST 13 MONTHS AFTER PURCHASE. EFFECTIVE AUGUST
18, 2003, THE CDSC ON CLASS C SHARES IS 1% FOR THE FIRST 12 MONTHS AFTER
PURCHASE. THE PERFORMANCE OF THE FUNDS' INVESTOR CLASS, INSTITUTIONAL CLASS,
CLASS A, CLASS B, CLASS C AND CLASS K SHARES WILL DIFFER DUE TO THE DIFFERENT
SALES CHARGE STRUCTURES AND EXPENSES. INVESTOR CLASS SHARES ARE CLOSED TO NEW
INVESTORS AS OF APRIL 1, 2002.
+AVERAGE ANNUALIZED
uNOT ANNUALIZED
**FOR FUNDS OR SHARE CLASSES INTRODUCED MORE RECENTLY
PERFORMANCE INFORMATION PROVIDED IN THIS REPORT DOES NOT REFLECT THE DEDUCTION
OF TAXES SHAREHOLDERS PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
THE INDUSTRIES AND/OR SECTORS USED FOR PORTFOLIO SECURITIES CLASSIFICATION THAT
MAY BE USED THROUGHOUT THIS REPORT ARE THE GLOBAL INDUSTRY CLASSIFICATION
STANDARD WHICH WAS DEVELOPED BY AND IS THE EXCLUSIVE PROPERTY AND A SERVICE MARK
OF MORGAN STANLEY CAPITAL INTERNATIONAL INC., AND STANDARD & POOR'S.(R)
TABLE OF CONTENTS
LETTER FROM THE PRESIDENT & CEO.......1
FUND REPORTS..........................3
MARKET HEADLINES.....................18
INVESTMENT HOLDINGS..................19
FINANCIAL STATEMENTS.................62
NOTES TO FINANCIAL
STATEMENTS...........................82
FINANCIAL HIGHLIGHTS.................93
OTHER INFORMATION...................120
YOUR FUND'S REPORT
DYNAMICS FUND
FUND PERFORMANCE
DEAR SHAREHOLDER:
For the year ended July 31, 2003, the value of Dynamics Fund-Investor Class
shares advanced by 18.50%, underperforming the Russell Midcap Growth Index,
which gained 23.15%. (Of course, past performance is not a guarantee of future
results.)(1),(2) For performance of other share classes, please see page 2.
MOST ECONOMIC SECTORS ADVANCED
Overall, it was a strong period for the fund, as all but one of the fund's
economic sector weightings finished the fiscal year on positive ground. The lone
exception was the consumer staples sector, where our underweighted exposure was
hurt by food and household product stocks. By period-end, we sold our positions
in the underperforming stocks, believing better growth opportunities could be
found elsewhere.
Although it was a strong period in an absolute sense, on a relative basis
several areas detracted from performance. In a few of these weaker areas, our
stock selection was on the mark, but our sector selection detracted from
relative performance. For example, our industrial holdings outperformed the
broader industrial sector. However, our weighting in the group was in line with
that of the market, and because industrials underperformed the market overall,
we would have been better served had we underweighted industrials. The same was
true in the financial services sector. Once again, our stock selection added
value, as our picks in the group outperformed the financial services group on
the whole. However, the fact that we were overweighted in a lagging sector
undermined returns.
- --------------------------------------------------------------------------------
DYNAMICS FUND --
Top 10 COMMON STOCK HOLDINGS
% OF TOTAL NET ASSETS AS OF 7/31/03
- --------------------------------------------------------------------------------
Teva Pharmaceutical Industries Ltd Sponsored ADR
Representing Ord Shrs............................1.94%
Gilead Sciences....................................1.87%
Alcon Inc..........................................1.67%
Varian Medical Systems.............................1.52%
Legg Mason.........................................1.45%
Lamar Advertising Class A Shrs.....................1.41%
EchoStar Communications Class A Shrs...............1.38%
UTStarcom Inc......................................1.34%
Amdocs Ltd.........................................1.28%
Robert Half International..........................1.25%
HOLDINGS AND COMPOSITION OF HOLDINGS ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
ENERGY STOCKS HURT RELATIVE PERFORMANCE
Other areas of weakness included the fund's energy holdings. For most of the
period, we were overweighted in services companies and in oil and gas companies.
In our view, prices of the underlying commodities were likely headed higher. On
the one hand, if the economy improved, we believed that demand for energy would
increase. On the other, we felt that turmoil in the Middle East could lead to
potential oil supply disruptions. We were right: Oil and natural gas prices rose
throughout the spring, and the stocks performed well. However, the sector lost
momentum during the second quarter and gave back a significant portion of those
earlier gains. Although our energy holdings finished the period in the black,
they hurt relative performance.
Even with these areas of relative weakness, when you consider the annual returns
recorded during the past few years, it's hard to be too disappointed with
returns in the high teens. Indeed, as we previously outlined, most of our sector
allocations advanced during the year on an absolute basis. And several of our
holdings contributed positively on a relative basis as well.
LINE GRAPH: INVESCO DYNAMICS FUND - INVESTOR CLASS GROWTH OF $10,000(1)
This line graph compares the value of a $10,000 investment in INVESCO Dynamics
Fund - Investor Class to the value of a $10,000 investment in the Russell Midcap
Growth Index(2), assuming in each case reinvestment of all dividends and capital
gain distributions, for the ten year period ended 7/31/03.
INVESCO Dynamics Fund - Investor Class Russell Midcap Growth Index(2)
7/93 $10,000 $10,000
7/94 $10,723 $10,524
7/95 $14,007 $13,761
7/96 $15,358 $14,759
7/97 $20,989 $20,617
7/98 $24,849 $22,336
7/99 $33,293 $27,181
7/00 $50,052 $39,075
7/01 $31,062 $26,645
7/02 $19,516 $19,003
7/03 $23,127 $23,403
BIOTECHNOLOGY AND PHARMACEUTICAL STOCKS ADDED VALUE
The fund's health care stocks made the most significant positive contributions
to relative performance. Although our weighting in the sector was less than that
of the market, our stock selection more than made up for our lack of exposure.
Standouts included the fund's biotechnology, health care services and
pharmaceutical stocks, led by Gilead Sciences and Teva Pharmaceutical Industries
Ltd.
Our technology stocks were another bright spot. Overall fund performance was
aided by our decision to overweight our technology exposure vis-a-vis the
benchmark, the Russell Midcap Growth Index. Most technology subsectors advanced
during the year and triple digit returns were not uncommon. Among the
portfolio's better performers were BEA Systems in software, Expedia Inc in
Internet Software, UTStarcom Inc in communications equipment and Altera Corp in
semiconductors.
LINE GRAPH: INVESCO DYNAMICS FUND - CLASS A & B GROWTH OF $10,000(1)
This line graph compares the value of a $10,000 investment in INVESCO Dynamics
Fund - Class A and the value of a $10,000 investment in INVESCO Dynamics Fund -
Class B to the value of a $10,000 investment in the Russell Midcap Growth
Index(2), assuming in each case reinvestment of all dividends and capital gain
distributions, and in the cases of INVESCO Dynamics Fund - Class A and Class B
inclusion of front-end sales charge and contingent deferred sales charge,
respectively, for the period since inception (4/02) through 7/31/03.
INVESCO DYNAMICS FUND - CLASS A INVESCO DYNAMICS FUND - CLASS B RUSSELL MIDCAP GROWTH INDEX(2)
4/02 $10,000 $10,000 $10,000
7/02 $ 6,689 $ 7,046 $ 7,380
7/03 $ 7,931 $ 7,894 $ 9,088
LINE GRAPH: INVESCO DYNAMICS FUND - CLASS C GROWTH OF $10,000(1)
This line graph compares the value of a $10,000 investment in INVESCO Dynamics
Fund - Class C to the value of a $10,000 investment in the Russell Midcap Growth
Index(2), assuming in each case reinvestment of all dividends and capital gain
distributions, and in the case of INVESCO Dynamics Fund - Class C inclusion of
contingent deferred sales charge, for the period since inception (2/00) through
7/31/03.
INVESCO Dynamics Fund - Class C Russell Midcap Growth Index(2)
2/00 $10,000 $10,000
7/00 $ 9,834 $ 8,682
7/01 $ 6,053 $ 5,920
7/02 $ 3,767 $ 4,222
7/03 $ 4,425 $ 5,200
(1)PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT, WHEN REDEEMED, AN INVESTOR'S SHARES MAY
BE WORTH MORE OR LESS THAN WHEN PURCHASED. THE LINE GRAPHS ILLUSTRATE THE VALUE
OF A $10,000 INVESTMENT, PLUS REINVESTED DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ALONG WITH APPLICABLE FRONT-END SALES CHARGES AND CDSC. THE CHARTS
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.
(2)THE RUSSELL MIDCAP GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL
MIDCAP COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH
VALUES. THE INDEX IS NOT MANAGED; THEREFORE, ITS PERFORMANCE DOES NOT REFLECT
MANAGEMENT FEES AND OTHER EXPENSES ASSOCIATED WITH THE FUND INCLUDING FRONT-END
SALES CHARGES AND CDSC. INVESTORS CANNOT INVEST DIRECTLY IN ANY MARKET INDEX.
AT ANY GIVEN TIME, THE FUND MAY BE SUBJECT TO SECTOR RISK, WHICH MEANS A CERTAIN
SECTOR MAY UNDERPERFORM OTHER SECTORS OR THE MARKET AS A WHOLE. THE FUND IS NOT
LIMITED WITH RESPECT TO THE SECTORS IN WHICH IT CAN INVEST.
FUND MANAGEMENT
[PHOTOGRAPH OF TIMOTHY J. MILLER OMITTED]
TIMOTHY J. MILLER, CFA
CHIEF INVESTMENT OFFICER TIM MILLER IS MANAGER OF INVESCO DYNAMICS FUND. HE ALSO
LEADS INVESCO'S GROWTH INVESTMENT MANAGEMENT TEAM. PRIOR TO JOINING INVESCO
FUNDS GROUP, TIM WAS ASSOCIATED WITH MISSISSIPPI VALLEY ADVISORS FOR 13 YEARS,
WHERE HE WAS AN ANALYST AND PORTFOLIO MANAGER. HE HOLDS AN MBA FROM THE
UNIVERSITY OF MISSOURI (ST. LOUIS), A BSBA FROM ST. LOUIS UNIVERSITY, AND IS A
CHARTERED FINANCIAL ANALYST CHARTERHOLDER. TIM HAS MORE THAN 20 YEARS OF
INVESTMENT EXPERIENCE.
Going forward, we believe the economy remains on track for a modest economic
recovery during 2003. In our opinion, recent economic data support this view.
Therefore, we continue to emphasize companies that we believe will thrive in the
environment we anticipate. Furthermore, we remain confident that we will be able
to find compelling mid-cap growth companies that will allow us to deliver on the
fund's mandate.
LINE GRAPH: INVESCO DYNAMICS FUND - CLASS K GROWTH OF $10,000(1)
This line graph compares the value of a $10,000 investment in INVESCO Dynamics
Fund - Class K to the value of a $10,000 investment in the Russell Midcap Growth
Index(2), assuming in each case reinvestment of all dividends and capital gain
distributions, for the period since inception (12/00) through 7/31/03.
INVESCO Dynamics Fund - Class K Russell Midcap Growth Index(2)
12/00 $10,000 $10,000
7/01 $ 7,640 $ 8,544
7/02 $ 4,789 $ 6,094
7/03 $ 5,670 $ 7,504
LINE GRAPH: INVESCO DYNAMICS FUND - INSTITUTIONAL CLASS GROWTH OF $10,000(1)
This line graph compares the value of a $10,000 investment in INVESCO Dynamics
Fund - Institutional Class to the value of a $10,000 investment in the Russell
Midcap Growth Index(2), assuming in each case reinvestment of all dividends and
capital gain distributions, for the period since inception (5/00) through
7/31/03.
INVESCO Dynamics Fund -
Institutional Class Russell Midcap Growth Index(2)
5/00 $10,000 $10,000
7/00 $11,474 $10,361
7/01 $ 7,139 $ 7,065
7/02 $ 4,501 $ 5,039
7/03 $ 5,362 $ 6,205
PIE CHART: DYNAMICS FUND
INDUSTRY BREAKDOWN
AS OF 7/31/03
[PIE CHART]
% OF TOTAL NET ASSETS
Application Software...................6.69%
Pharmaceuticals........................5.14%
Semiconductors.........................4.74%
Health Care Equipment..................4.55%
Biotechnology..........................4.13%
Semiconductor Equipment................3.50%
Managed Health Care....................3.15%
Investment Adviser/Broker
Dealer Services........................3.04%
Cable & Satellite Operators............2.92%
Data Processing Services...............2.76%
Other Industries......................59.28%
Net Cash & Cash Equivalents............0.10%
YOUR FUND'S REPORT
GROWTH FUND
FUND PERFORMANCE
DEAR SHAREHOLDER:
For the year ended July 31, 2003, Growth Fund-Investor Class shares posted a
gain of 9.76%. In comparison, the Russell 1000 Growth Index advanced 11.64%
during the same time frame. (Of course, past performance is not a guarantee of
future results.)(3),(4) For performance of other share classes, please see page
2.
INDUSTRIAL HOLDINGS DISAPPOINT
It was a difficult year for many companies within the industrials sector, and
the fund's holdings in this area underperformed. Specifically, General Electric
weighed on the fund's return during the period. In addition, some of our
aerospace and defense stocks detracted, as many of these names appeared to be
hindered by their exposure to airline bankruptcies.
The fund was also held back somewhat by its position in consumer staples.
Although underweight relative to the index in this area, more defensive holdings
such as Coca-Cola Co lagged the broad market by a significant margin for the
annual period. Furthermore, the fund maintained few telecommunications holdings
during the year. One of these -- AT&T Wireless Services -- was a detractor
though many companies in the sector saw substantial gains. (AT&T Wireless
Services is no longer a portfolio holding.)
STRONG STOCK SELECTION IN TECH AND FINANCIAL SECTORS BENEFICIAL
The technology sector performed extremely well during the second half of the
fiscal year, and the fund was positioned to take advantage of this trend.
Indeed, we held an overweighting in technology relative to the index;
furthermore, our tech holdings outpaced their counterparts in the Russell 1000
Growth Index. Intel Corp, Cisco Systems, and VERITAS Software were among the
leaders for the fund.
We also had success with our positioning in the financial services sector. As
the period progressed, we moved from focusing on regional banks -- which did
well early on -- to emphasizing more diversified multi-national companies, and
the timing of this shift worked well for the fund. For example, Citigroup Inc
and JP Morgan Chase & Co both finished the year with strong gains.
PURSUING THE MARKET'S GROWTH STORIES
We continue to target companies that we believe possess strong fundamentals and
the potential for significant growth over the long term. Given this underlying
objective, we believe the fund is positioned to perform well in an improving
economic environment because of its emphasis on more economically sensitive
stocks. Furthermore, it is relatively concentrated with around 60 stocks and has
substantial position sizes in some of the largest market-capitalization
companies.
- --------------------------------------------------------------------------------
GROWTH FUND --
TOP 10 COMMON STOCK HOLDINGS
% OF TOTAL NET ASSETS AS OF 7/31/03
- --------------------------------------------------------------------------------
Citigroup Inc.............................................4.47%
Pfizer Inc................................................4.27%
Microsoft Corp............................................4.05%
Intel Corp................................................3.67%
Cisco Systems.............................................3.14%
Johnson & Johnson.........................................2.68%
Wal-Mart Stores...........................................2.65%
Software HOLDRs Trust.....................................2.60%
JP Morgan Chase & Co......................................2.55%
United Technologies.......................................2.45%
HOLDINGS AND COMPOSITION OF HOLDINGS ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
SINCE 7/1/03 THE FUND HAS BEEN MANAGED BY GEOFFREY V. KEELING AND ROBERT L.
SHOSS.
LINE GRAPH: INVESCO GROWTH FUND - INVESTOR CLASS GROWTH OF $10,000(3)
This line graph compares the value of a $10,000 investment in INVESCO Growth
Fund - Investor Class to the value of a $10,000 investment in the Russell 1000
Growth Index(4), assuming in each case reinvestment of all dividends and capital
gain distributions, for the ten year period ended 7/31/03.
INVESCO Growth Fund - Investor Class Russell 1000 Growth Index(4)
7/93 $10,000 $10,000
7/94 $10,211 $10,499
7/95 $11,769 $13,798
7/96 $13,701 $15,939
7/97 $19,657 $24,204
7/98 $24,038 $29,025
7/99 $29,526 $36,003
7/00 $40,868 $44,780
7/01 $17,804 $29,080
7/02 $ 9,564 $20,720
7/03 $10,497 $23,131
LINE GRAPH: INVESCO GROWTH FUND - CLASS C GROWTH OF $10,000(3)
This line graph compares the value of a $10,000 investment in INVESCO Growth
Fund - Class C to the value of a $10,000 investment in the Russell 1000 Growth
Index(4), assuming in each case reinvestment of all dividends and capital gain
distributions, and in the case of INVESCO Growth Fund - Class C inclusion of
contingent deferred sales charge, for the period since inception (2/00) through
7/31/03.
INVESCO Growth Fund - Class C Russell 1000 Growth Index(4)
2/00 $10,000 $10,000
7/00 $10,218 $ 9,992
7/01 $ 4,428 $ 6,489
7/02 $ 2,344 $ 4,623
7/03 $ 2,563 $ 5,161
PIE CHART: GROWTH FUND
INDUSTRY BREAKDOWN
AS OF 7/31/03
[PIE CHART]
% OF TOTAL NET ASSETS
Pharmaceuticals.......................12.54%
Diversified Financial Services.........9.24%
Systems Software.......................7.44%
Semiconductors.........................6.56%
Biotechnology..........................5.20%
Health Care Equipment..................5.10%
Application Software...................4.98%
Diversified Banks......................4.57%
Investment Companies...................3.58%
Networking Equipment...................3.14%
Other Industries......................34.39%
Net Cash & Cash Equivalents............3.26%
LINE GRAPH: INVESCO GROWTH FUND - CLASS K GROWTH OF $10,000(3)
This line graph compares the value of a $10,000 investment in INVESCO Growth
Fund - Class K to the value of a $10,000 investment in the Russell 1000 Growth
Index(4), assuming in each case reinvestment of all dividends and capital gain
distributions, for the period since inception (12/00) through 7/31/03.
INVESCO Growth Fund - Class K Russell 1000 Growth Index(4)
12/00 $10,000 $10,000
7/01 $ 5,601 $ 8,097
7/02 $ 2,799 $ 5,769
7/03 $ 3,079 $ 6,441
LINE GRAPH: INVESCO GROWTH FUND - CLASS A & B GROWTH OF $10,000(3)
This line graph compares the value of a $10,000 investment in INVESCO Growth
Fund - Class A and the value of a $10,000 investment in INVESCO Growth Fund -
Class B to the value of a $10,000 investment in the Russell 1000 Growth
Index(4), assuming in each case reinvestment of all dividends and capital gain
distributions, and in the cases of INVESCO Growth Fund - Class A and Class B
inclusion of front-end sales charge and contingent deferred sales charge,
respectively, for the period since inception (4/02) through 7/31/03.
INVESCO Growth Fund - INVESCO Growth Fund - Russell 1000 Growth
Class A Class B Index(4)
4/02 $10,000 $10,000 $10,000
7/02 $ 6,613 $ 6,966 $ 7,686
7/03 $ 7,218 $ 7,250 $ 8,581
(3)PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT, WHEN REDEEMED, AN INVESTOR'S SHARES MAY
BE WORTH MORE OR LESS THAN WHEN PURCHASED. THE LINE GRAPHS ILLUSTRATE THE VALUE
OF A $10,000 INVESTMENT, PLUS REINVESTED DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ALONG WITH APPLICABLE FRONT-END SALES CHARGES AND CDSC. THE CHARTS
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.
(4)THE RUSSELL 1000 GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000
COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH VALUES.
THE INDEX IS NOT MANAGED; THEREFORE, ITS PERFORMANCE DOES NOT REFLECT MANAGEMENT
FEES AND OTHER EXPENSES ASSOCIATED WITH THE FUND INCLUDING FRONT-END SALES
CHARGES AND CDSC. INVESTORS CANNOT INVEST DIRECTLY IN ANY MARKET INDEX.
AT ANY GIVEN TIME, THE FUND MAY BE SUBJECT TO SECTOR RISK, WHICH MEANS A CERTAIN
SECTOR MAY UNDERPERFORM OTHER SECTORS OR THE MARKET AS A WHOLE. THE FUND IS NOT
LIMITED WITH RESPECT TO THE SECTORS IN WHICH IT CAN INVEST.
MEET THE NEW MANAGEMENT TEAM (AS OF 7/1/03)
[PHOTOGRAPH OF GEOFFREY V. KEELING OMITTED]
GEOFFREY V. KEELING, CFA
GEOFF JOINED AIM IN 1995. HE RECEIVED A BBA IN FINANCE FROM THE UNIVERSITY OF
TEXAS AT AUSTIN.
[PHOTOGRAPH OF ROBERT L. SHOSS OMITTED]
ROBERT L. SHOSS
ROBERT JOINED AIM IN 1995. HE RECEIVED A BACHELOR'S DEGREE FROM THE UNIVERSITY
OF TEXAS AT AUSTIN AND AN MBA AND JD FROM THE UNIVERSITY OF HOUSTON.
YOUR FUND'S REPORT
GROWTH & INCOME FUND
FUND PERFORMANCE
DEAR SHAREHOLDER:
For the year ended July 31, 2003, the value of Growth & Income Fund-Investor
Class shares gained 7.23%, which lagged its benchmark, the Russell 1000 Growth
Index, which gained 11.64% over the same period. (Of course, past performance is
not a guarantee of future results.)(5),(6) For performance of other share
classes, please see page 2.
AGGRESSIVE OPPORTUNITIES OUTPERFORMED DEFENSIVE INVESTMENTS
When the market turned during the fourth quarter of 2002, the defining
characteristic of the rebound seemed to be investors' rediscovered willingness
to look into the future when assessing stock price valuations. This trend
starkly contrasted with attitudes during the bear market, when investors favored
opportunities capable of delivering consistent returns, such as cash, or
companies possessing more sustainable, consistent financial results, traits that
investors believed made them more defensive investments. As investors became
more willing to consider future cash flows and grew more optimistic about the
economy, they rotated into investments possessing a more aggressive risk/reward
profile. In this environment, stocks outperformed bonds, growth stocks
outperformed value stocks and small-cap growth stocks outperformed large-cap
growth stocks. True, investors' move to riskier investments paused during the
buildup to the war in Iraq. But once Saddam Hussein's regime fell and Iraq was
liberated, confidence returned.
This trend worked against several of the fund's holdings. Although many of our
stocks advanced during the year, our relatively conservative approach and our
large-cap growth mandate resulted in the fund lagging its benchmark.
HEALTH CARE STOCKS HURT RELATIVE PERFORMANCE
Our investments in the health care sector exemplify how the market worked
against our conservative approach. For most of the period, the health care
sector represented the fund's largest sector weighting. Because of its fairly
consistent, non-cyclical revenue stream, many investors regard companies in the
health care sector, particularly pharmaceutical firms, as relatively
conservative investments. After all, people will buy their prescriptions
regardless of how well the economy is faring.
- --------------------------------------------------------------------------------
GROWTH & INCOME FUND --
TOP 10 COMMON STOCK HOLDINGS
% OF TOTAL NET ASSETS AS OF 7/31/03
- --------------------------------------------------------------------------------
Microsoft .....................................4.30%
Pfizer Inc.....................................3.94%
General Electric...............................3.64%
Wal-Mart Stores................................2.98%
Citigroup Inc..................................2.92%
Johnson & Johnson..............................2.83%
Cisco Systems..................................2.78%
Intel Corp.....................................2.50%
Standard & Poor's Depositary Receipts Trust
Series 1 Shrs................................2.16%
Amgen Inc......................................2.01%
HOLDINGS AND COMPOSITION OF HOLDINGS ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
Health care stocks behaved like defensive investments for much of the bear
market, as health care companies held up relatively well while more aggressive
economic sectors declined. When confidence improved, however, these stocks
generally lagged. The exceptions were biotechnology stocks, which leapt higher
as investors' tolerance for risk improved.
Aside from health care, other areas of weakness included the consumer staples
sector, which was another victim of the rotation toward more aggressive
investments. Although we were underweight in the group, and our stocks, on
balance, outperformed the rest of the sector, our exposure nonetheless hurt
performance. In particular, the fund's food and staples retailers and our
beverage stocks hurt performance.
AEROSPACE AND DEFENSE STOCKS UNDERPERFORMED; TECHNOLOGY A BRIGHT SPOT
The fund's industrial stocks also underperformed. Disappointments included the
fund's aerospace and defense stocks, such as Lockheed Martin, which declined
despite the fact that our government continues to ramp up defense spending.
Elsewhere in the industrial sector, General Electric, the diversified industrial
conglomerate that is sometimes viewed as a proxy for the broader U.S. economy,
also hindered performance.
The period was not all bad, however. The fund's technology stocks were a bright
spot. Companies in a diverse set of technology subsectors, such as Intel Corp in
semiconductors, Dell Inc in computer hardware, Cisco Systems in communications
equipment and Microsoft Corp in software, all benefited from the market's
growing appetite for risk.
The fund's consumer discretionary stocks also added value, particularly its
Internet catalog and retailers, notably online auctioneer eBay Inc, as well as
its media and hotel stocks.
LINE GRAPH: INVESCO GROWTH & INCOME FUND - INVESTOR CLASS GROWTH OF $10,000(5)
This line graph compares the value of a $10,000 investment in INVESCO Growth &
Income Fund - Investor Class to the value of a $10,000 investment in the Russell
1000 Growth Index(6), assuming in each case reinvestment of all dividends and
capital gain distributions, for the period since inception (7/98) through
7/31/03.
INVESCO Growth & Income Fund - Investor Class Russell 1000 Growth Index(6)
7/98 $10,000 $10,000
7/99 $16,180 $12,322
7/00 $21,163 $15,326
7/01 $12,009 $ 9,953
7/02 $ 7,401 $ 7,091
7/03 $ 7,937 $ 7,917
LINE GRAPH: INVESCO GROWTH & INCOME FUND - CLASS C GROWTH OF $10,000(5)
This line graph compares the value of a $10,000 investment in INVESCO Growth &
Income Fund - Class C to the value of a $10,000 investment in the Russell 1000
Growth Index(6), assuming in each case reinvestment of all dividends and capital
gain distributions, and in the case of INVESCO Growth & Income Fund - Class C
inclusion of contingent deferred sales charge, for the period since inception
(2/00) through 7/31/03.
INVESCO Growth & Income Fund - Class C Russell 1000 Growth Index(6)
2/00 $10,000 $10,000
7/00 $10,374 $ 9,992
7/01 $ 5,838 $ 6,489
7/02 $ 3,571 $ 4,623
7/03 $ 3,799 $ 5,161
(5)PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT, WHEN REDEEMED, AN INVESTOR'S SHARES MAY
BE WORTH MORE OR LESS THAN WHEN PURCHASED. THE LINE GRAPHS ILLUSTRATE THE VALUE
OF A $10,000 INVESTMENT, PLUS REINVESTED DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ALONG WITH APPLICABLE FRONT-END SALES CHARGES AND CDSC. THE CHARTS
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.
(6)THE RUSSELL 1000 GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000
COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH VALUES.
THE INDEX IS NOT MANAGED; THEREFORE, ITS PERFORMANCE DOES NOT REFLECT MANAGEMENT
FEES AND OTHER EXPENSES ASSOCIATED WITH THE FUND INCLUDING FRONT-END SALES
CHARGES AND CDSC. INVESTORS CANNOT INVEST DIRECTLY IN ANY MARKET INDEX.
AT ANY GIVEN TIME, THE FUND MAY BE SUBJECT TO SECTOR RISK, WHICH MEANS A CERTAIN
SECTOR MAY UNDERPERFORM OTHER SECTORS OR THE MARKET AS A WHOLE. THE FUND IS NOT
LIMITED WITH RESPECT TO THE SECTORS IN WHICH IT CAN INVEST.
Going forward, in our view, the economy appears on course for a modest recovery
during 2003. We believe the portfolio is well positioned to capitalize on the
environment we anticipate. Furthermore, we believe its current composition is
consistent with its objective.
SINCE 7/1/03 THE FUND HAS BEEN MANAGED BY MONIKA H. DEGAN AND KIRK L. ANDERSON.
LINE GRAPH: INVESCO GROWTH & INCOME FUND - CLASS A & B GROWTH OF $10,000(5)
This line graph compares the value of a $10,000 investment in INVESCO Growth &
Income Fund - Class A and the value of a $10,000 investment in INVESCO Growth &
Income Fund - Class B to the value of a $10,000 investment in the Russell 1000
Growth Index(6), assuming in each case reinvestment of all dividends and capital
gain distributions, and in the cases of INVESCO Growth & Income Fund - Class A
and Class B inclusion of front-end sales charge and contingent deferred sales
charge, respectively, for the period since inception (4/02) through 7/31/03.
INVESCO Growth & Income INVESCO Growth & Income Russell 1000 Growth Index(6)
Fund - Class A Fund - Class B
4/02 $10,000 $10,000 $10,000
7/02 $ 6,881 $ 7,260 $ 7,686
7/03 $ 7,389 $ 7,340 $ 8,581
LINE GRAPH: INVESCO GROWTH & INCOME FUND - CLASS K GROWTH OF $10,000(5)
This line graph compares the value of a $10,000 investment in INVESCO Growth &
Income Fund - Class K to the value of a $10,000 investment in the Russell 1000
Growth Index(6), assuming in each case reinvestment of all dividends and capital
gain distributions, for the period since inception (12/00) through 7/31/03.
INVESCO Growth & Income Fund - Class K Russell 1000 Growth Index(6)
12/00 $10,000 $10,000
7/01 $ 6,708 $ 8,097
7/02 $ 4,121 $ 5,769
7/03 $ 4,414 $ 6,441
PIE CHART: GROWTH & INCOME FUND
INDUSTRY BREAKDOWN
AS OF 7/31/03
[PIE CHART]
% OF TOTAL NET ASSETS
Pharmaceuticals......................13.71%
Diversified Financial Services........7.53%
Systems Software......................6.08%
Semiconductors........................5.22%
Industrial Conglomerates..............4.37%
Computer Hardware.....................3.42%
Health Care Equipment.................3.36%
Hypermarkets & Super Centers..........2.98%
Diversified Banks.....................2.84%
Networking Equipment..................2.78%
Other Industries.....................44.70%
Net Cash & Cash Equivalents...........3.01%
MEET THE NEW MANAGEMENT TEAM (AS OF 7/1/03)
[PHOTOGRAPH OF MONIKA H. DEGAN OMITTED]
MONIKA H. DEGAN, CFA
MONIKA JOINED AIM IN 1995 AS AN INVESTMENT OFFICER AND PORTFOLIO ANALYST FOR
EQUITY SECURITIES AND WAS PROMOTED TO HER CURRENT POSITION IN 1997. SHE HAS BEEN
IN THE INVESTMENT BUSINESS SINCE 1991. SHE RECEIVED A BBA IN FINANCE AND AN MBA
IN FINANCE AND INTERNATIONAL BUSINESS FROM THE UNIVERSITY OF HOUSTON.
[PHOTOGRAPH OF KIRK L. ANDERSON OMITTED]
KIRK L. ANDERSON
KIRK STARTED AT AIM IN 1994 IN THE FUND SERVICES AREA. HE THEN MOVED TO
PORTFOLIO ADMINISTRATION IN 1995, BECAME AN ANALYST IN 1997, AND A PORTFOLIO
MANAGER IN 2003. HE EARNED A BA IN POLITICAL SCIENCE FROM TEXAS A&M UNIVERSITY,
AND AN MS IN FINANCE FROM THE UNIVERSITY OF HOUSTON.
YOUR FUND'S REPORT
MID-CAP GROWTH FUND
FUND PERFORMANCE
DEAR SHAREHOLDER:
Due to a change in the fund's fiscal year-end, it was only recently that we last
reported to you. Since our April 30 annual report, the improvement in the stock
market continued. However, the rally of the past few quarters has been defined
by the market's seeming willingness to take risk. As such, more speculative
companies that endured the most intense selling during the bear market, or that
stand to benefit the most from an improving economy, have performed the best.
Unfortunately, the fund's exclusive emphasis on higher-quality, core midcap
growth franchises resulted in it having minimal exposure to some of the market's
best performing stocks.
CONSERVATIVE APPROACH HURT RELATIVE PERFORMANCE
In our last report, our conservative approach had helped the fund outperform its
benchmark for the previous 12 months. However, with the recent turn in market
sentiment this approach resulted in the fund underperforming its benchmark for
the period from May 1 through July 31, 2003. In this period, the value of
Mid-Cap Growth Fund-Institutional Class shares appreciated by 10.64%, and
underperformed the Russell Midcap Growth Index which gained 15.16%. During the
year ended July 31, 2003, the value of Midcap Growth Fund-Institutional Class
shares appreciated by 16.03%, while the Russell Midcap Growth Index gained
23.15%. (Of course, past performance is not a guarantee of future
results.)(7),(8) For performance of other share classes, please see page 2.
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND --
TOP 10 COMMON STOCK HOLDINGS
% OF TOTAL NET ASSETS AS OF 7/31/03
- --------------------------------------------------------------------------------
EchoStar Communications Class A Shrs............2.66%
Fiserv Inc......................................2.31%
Donaldson Co....................................2.19%
Ambac Financial Group...........................2.11%
Legg Mason......................................2.08%
CH Robinson Worldwide...........................2.02%
Microchip Technology............................2.01%
Cox Communications Class A Shrs.................1.99%
Teva Pharmaceutical Industries Ltd
Sponsored ADR Representing Ord Shrs...........1.90%
Intuit Inc......................................1.86%
HOLDINGS AND COMPOSITION OF HOLDINGS ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
Nowhere did our conservative approach hurt relative performance more than in the
telecommunications sector. Telecom stocks benefited greatly from the market's
surging appetite for risk. However, according to our research, no midcap telecom
companies possess earnings that are sustainable enough, balance sheets that are
solid enough or market positions that are dominant enough to merit consideration
for this relatively conservative portfolio. As such, the fund did not
participate in the rally within the telecommunications sector, which
significantly hurt relative performance.
FINANCIAL SERVICES STOCKS LAGGED
Conversely, we have found several core midcap growth franchises within the
financial services sector -- research that led us to overweight the group versus
the benchmark. Our holdings whose financial health is closely tied to the
strength of the capital markets (such as asset manager Legg Mason) kept pace
with the broad market rally. However, our more conservative holdings in the
insurance and commercial banking industries lagged.
Another source of our relative performance shortfall was the fund's industrial
exposure. In this area, our stock selection added value, as our industrial
holdings outperformed the broader industrial sector. However, while our
industrial companies outperformed the rest of their sector, they still
underperformed the broader market. Our decision to overweight the energy sector
also detracted from performance. We reported in April that these holdings had
performed well as prices of the underlying commodities rose in response to
rising demand and turmoil in the Middle East. More recently, however,
unseasonably cool temperatures curtailed demand for electricity, which pushed
natural gas prices lower. This, combined with profit taking, led to the energy
sector giving back a portion of its earlier gains.
TECHNOLOGY STOCKS ADVANCED SHARPLY
The last 12 months have not been all bad, however. After all, most of the fund's
holdings finished on positive ground and the portfolio logged a double-digit
gain. Contributing to this strong absolute performance were the fund's
technology stocks, which benefited from the market's growing tolerance for risk.
Standouts included our semiconductor stocks, such as Altera Corp and Microchip
Technology, our Internet travel stocks, notably Expedia Inc, and our computer
holdings, namely Network Appliance.
Going forward, we believe our holdings continue to possess compelling growth
prospects, which we believe will only improve as the economic recovery finds its
footing. As such, we do not anticipate making any significant changes to the
fund's positioning, as we believe that it's well-positioned to deliver results
with our conservative growth approach.
PIE CHART: MID-CAP GROWTH FUND
INDUSTRY BREAKDOWN
AS OF 7/31/03
[PIE CHART]
% OF TOTAL ASSETS
Semiconductors.....................7.20%
Application Software...............6.64%
Cable & Satellite Operators........4.65%
Health Care Equipment..............4.63%
Data Processing Services...........3.78%
Pharmaceuticals....................3.44%
Investment Adviser/
Broker Dealer Services.............3.11%
Managed Health Care................3.10%
Diversified Financial Services.....3.06%
Apparel Retail.....................2.96%
Other Industries..................51.21%
Net Cash & Cash Equivalents........6.22%
LINE GRAPH: INVESCO MID-CAP GROWTH FUND - INVESTOR CLASS GROWTH OF $10,000(7)
This line graph compares the value of a $10,000 investment in INVESCO Mid-Cap
Growth Fund - Investor Class to the value of a $10,000 investment in the Russell
Midcap Growth Index(8), assuming in each case reinvestment of all dividends and
capital gain distributions, for the period since inception (9/02) through
7/31/03.
INVESCO Mid-Cap Growth Fund - Russell Midcap
Investor Class Growth Index(8)
9/02 $10,000 $10,000
7/03 $12,006 $12,358
LINE GRAPH: INVESCO MID-CAP GROWTH FUND - INSTITUTIONAL CLASS GROWTH OF
$10,000(7)
This line graph compares the value of a $10,000 investment in INVESCO Mid-Cap
Growth Fund - Institutional Class to the value of a $10,000 investment in the
Russell Midcap Growth Index(8), assuming in each case reinvestment of all
dividends and capital gain distributions, for the period since inception (9/98)
through 7/31/03.
INVESCO Mid-Cap Growth Fund - Russell Midcap
Institutional Class Growth Index(8)
9/98 $10,000 $10,000
7/99 $13,450 $13,892
7/00 $19,421 $19,971
7/01 $16,490 $13,618
7/02 $13,482 $ 9,713
7/03 $15,643 $11,961
LINE GRAPH: INVESCO MID-CAP GROWTH FUND - CLASS A, B & C GROWTH OF $10,000(7)
This line graph compares the value of a $10,000 investment in INVESCO Mid-Cap
Growth Fund - Class A, the value of a $10,000 investment in INVESCO Mid-Cap
Growth Fund - Class B, and the value of a $10,000 investment in INVESCO Mid-Cap
Growth Fund - Class C to the value of a $10,000 investment in the Russell Midcap
Growth Index(8) assuming in each case reinvestment of all dividends and capital
gain distributions, and in the case of INVESCO Mid-Cap Fund - Class A, Class B,
and Class C inclusion of front-end sales charge and contingent deferred sales
charge, respectively, for the period since inception (10/01) through 7/31/03.
Russell
INVESCO Mid-Cap INVESCO Mid-Cap INVESCO Mid-Cap Midcap
Growth Fund - Growth Fund - Growth Fund - Growth
Class A Class B Class C Index(8)
10/01 $10,000 $10,000 $10,000 $10,000
7/02 $ 9,688 $10,178 $10,153 $ 9,211
7/03 $11,192 $11,286 $11,610 $11,343
(7)PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT, WHEN REDEEMED, AN INVESTOR'S SHARES MAY
BE WORTH MORE OR LESS THAN WHEN PURCHASED. THE LINE GRAPHS ILLUSTRATE THE VALUE
OF A $10,000 INVESTMENT, PLUS REINVESTED DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ALONG WITH APPLICABLE FRONT-END SALES CHARGES AND CDSC. THE CHARTS
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.
(8)THE RUSSELL MIDCAP GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL
MIDCAP COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH
VALUES. THE INDEX IS NOT MANAGED; THEREFORE, ITS PERFORMANCE DOES NOT REFLECT
MANAGEMENT FEES AND OTHER EXPENSES ASSOCIATED WITH THE FUND INCLUDING FRONT-END
SALES CHARGES AND CDSC. INVESTORS CANNOT INVEST DIRECTLY IN ANY MARKET INDEX.
AT ANY GIVEN TIME, THE FUND MAY BE SUBJECT TO SECTOR RISK, WHICH MEANS A CERTAIN
SECTOR MAY UNDERPERFORM OTHER SECTORS OR THE MARKET AS A WHOLE. THE FUND IS NOT
LIMITED WITH RESPECT TO THE SECTORS IN WHICH IT CAN INVEST.
FUND MANAGEMENT
[PHOTOGRAPH OF TIMOTHY J. MILLER OMITTED]
TIMOTHY J. MILLER, CFA
CHIEF INVESTMENT OFFICER TIM MILLER IS MANAGER OF INVESCO MID-CAP GROWTH FUND.
HE ALSO LEADS INVESCO'S GROWTH INVESTMENT MANAGEMENT TEAM. PRIOR TO JOINING
INVESCO FUNDS GROUP, TIM WAS ASSOCIATED WITH MISSISSIPPI VALLEY ADVISORS FOR 13
YEARS, WHERE HE WAS AN ANALYST AND PORTFOLIO MANAGER. HE HOLDS AN MBA FROM THE
UNIVERSITY OF MISSOURI (ST. LOUIS), A BSBA FROM ST. LOUIS UNIVERSITY, AND IS A
CHARTERED FINANCIAL ANALYST CHARTERHOLDER. TIM HAS MORE THAN 20 YEARS OF
INVESTMENT EXPERIENCE.
YOUR FUND'S REPORT
S&P 500 INDEX FUND
FUND PERFORMANCE
DEAR SHAREHOLDER:
A NOTE ABOUT INDEX FUNDS AT INVESCO
INVESCO S&P 500 Index Fund is designed to track the performance of the S&P 500
Index(R), an index comprised of common stocks of U.S. companies that is weighted
to companies with large market capitalizations. The fund seeks to attain its
objective by investing in the common stocks that comprise the index in
approximately the same proportions as they are represented in the S&P 500
Index.(R)
For the year ended July 31, 2003, the value of Institutional Class shares gained
9.98%, while the value of Investor Class shares advanced 9.73%. These returns
tracked those of the S&P 500 Index(R) over the same period, which gained 10.65%.
(Of course, past performance is not a guarantee of future results.)(9),(10)
PIE CHART: S&P 500 INDEX FUND
INDUSTRY BREAKDOWN
AS OF 7/31/03
[PIE CHART]
% OF TOTAL NET ASSETS
Pharmaceuticals....................9.16%
Diversified Banks .................7.11%
Diversified Financial Services.....4.87%
Systems Software ..................4.09%
Industrial Conglomerates...........3.98%
Integrated Oil & Gas...............3.90%
Computer Hardware..................3.29%
Semiconductors.....................2.97%
Integrated Telecommunication
Services...........................2.91%
Hypermarkets & Super Centers.......2.55%
Other Industries..................50.34%
Net Cash & Cash Equivalents........4.83%
LINE GRAPH: INVESCO S&P 500 INDEX FUND - INSTITUTIONAL CLASS & INVESTOR CLASS
GROWTH OF $10,000(9)
This line graph compares the value of a $10,000 investment in INVESCO S&P 500
Index Fund - Institutional Class and the value of a $10,000 investment in
INVESCO S&P 500 Index Fund - Investor Class to the value of a $10,000 investment
in the S&P 500 Index(R)(10), assuming in each case reinvestment of all dividends
and capital gain distributions, for the period since inception (12/97) through
7/31/03.
INVESCO S&P 500 Index Fund INVESCO S&P 500 Index Fund S&P 500
- Investor Class - Institutional Class Index(R)(10)
12/97 $10,000 $10,000 $10,000
7/98 $12,211 $12,093 $11,646
7/99 $14,664 $14,560 $13,998
7/00 $15,886 $15,792 $15,256
7/01 $13,492 $13,410 $13,069
7/02 $10,209 $10,125 $ 9,982
7/03 $11,202 $11,135 $11,046
- --------------------------------------------------------------------------------
S&P 500 INDEX FUND --
TOP 10 COMMON STOCK HOLDINGS
% OF TOTAL NET ASSETS AS OF 7/31/03
- --------------------------------------------------------------------------------
General Electric.......................2.96%
Microsoft Corp.........................2.95%
Pfizer Inc.............................2.74%
Wal-Mart Stores........................2.55%
Exxon Mobil............................2.48%
Citigroup Inc..........................2.40%
American International Group...........1.74%
Intel Corp.............................1.70%
Johnson & Johnson......................1.60%
International Business Machines........1.46%
HOLDINGS AND COMPOSITION OF HOLDINGS ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
(9)PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT, WHEN REDEEMED, AN INVESTOR'S SHARES MAY
BE WORTH MORE OR LESS THAN WHEN PURCHASED. THE LINE GRAPHS ILLUSTRATE THE VALUE
OF A $10,000 INVESTMENT, PLUS REINVESTED DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS. THE CHARTS 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.
(10)THE S&P 500 INDEX(R) IS AN UNMANAGED INDEX OF THE 500 LARGEST COMMON STOCKS
(IN TERMS OF MARKET VALUE), WEIGHTED BY MARKET CAPITALIZATION AND CONSIDERED
REPRESENTATIVE OF THE BROAD STOCK MARKET. THE INDEX IS NOT MANAGED; THEREFORE,
ITS PERFORMANCE DOES NOT REFLECT MANAGEMENT FEES AND OTHER EXPENSES ASSOCIATED
WITH THE FUND. INVESTORS CANNOT INVEST DIRECTLY IN ANY MARKET INDEX.
"STANDARD & POOR'S(R)", "S&P(R)", "S&P 500(R)", "STANDARD & POOR'S 500", AND
"500" ARE TRADEMARKS OF THE MCGRAW-HILL COMPANIES, INC. AND HAVE BEEN LICENSED
FOR USE BY INVESCO FUNDS GROUP, INC. THE INVESCO S&P 500 INDEX FUND IS NOT
SPONSORED, ENDORSED, SOLD OR PROMOTED BY STANDARD & POOR'S AND STANDARD & POOR'S
MAKES NO REPRESENTATION REGARDING THE ADVISABILITY OF INVESTING IN THE INVESCO
S&P 500 INDEX FUND.
YOUR FUND'S REPORT
SMALL COMPANY GROWTH FUND
FUND PERFORMANCE
DEAR SHAREHOLDER:
For the year ended July 31, 2003, the value of Small Company Growth
Fund-Investor Class shares appreciated 18.79%, which lagged the 27.97% gain
recorded by the fund's benchmark, the Russell 2000 Growth Index, over the same
period. (Of course, past performance is not a guarantee of future
results.)(11),(12) For performance of other share classes, please see page 2.
EDUCATION STOCKS RESISTED MARKET WEAKNESS
In absolute terms, the fund had a strong year with eight of ten economic sector
allocations delivering double-digit gains. Making strong contributions to
absolute and relative performance were the fund's stakes in the industrial,
telecommunications, materials and consumer staples sectors. In industrials, the
fund's education stocks stood out. Companies such as Corinthian Colleges and
Career Education saw their fundamentals improve, despite the prevailing economic
weakness. Other notable performers included the fund's food retailers in the
consumer staples sector, such as Performance Food Group and United Natural
Foods.
But these areas of strength were offset by weakness in other sectors. The most
significant drag on performance came from the health care sector. Specifically,
the fund's health care services stocks had a difficult period as investors
worried that several developments, including decreased hospital spending and
concerns about Medicare reimbursements, would translate into fundamental
weakness for the group. Aside from services, the fund's exposure to the other
health care industries -- biotechnology, pharmaceuticals and equipment -- all
added value.
Another source of disappointment came from the financial services sector.
Holding back performance were the fund's commercial banks, such as City
National, as well as its diversified financial services companies and its
insurers.
STAGNANT ECONOMY HURT CONSUMER DISCRETIONARY STOCKS
Our decision to overweight the consumer discretionary sector relative to our
benchmark also detracted from performance. At the beginning of the period, we
were confident that the Federal Reserve's campaign to stimulate the economy
would be effective and business would improve. We looked for opportunities that
we believed were positioned to benefit when the expansion gained traction. In
our view, the consumer discretionary sector offered many such opportunities.
However, the expansion did not find its footing until late in the period.
Furthermore, consumer confidence, which remained relatively high throughout the
economic downturn finally broke lower in early 2003 in anticipation of another
war in Iraq. Consequently, several industries that are dependent on consumer
discretionary spending, such as retailers, hotels and other leisure industries,
came under pressure. Although many of our holdings in these areas finished the
year at higher levels than where they started, in many cases those gains were
less than that of the broader market.
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND--
TOP 10 COMMON STOCK HOLDINGS
% OF TOTAL NET ASSETS AS OF 7/31/03
- --------------------------------------------------------------------------------
Investors Financial Services....................1.12%
Eaton Vance.....................................1.06%
iShares Trust Russell 2000 Growth Index Fund....1.05%
J.B. Hunt Transport Services....................0.99%
NetScreen Technologies..........................0.95%
Tekelec.........................................0.94%
Raymond James Financial.........................0.91%
Vitesse Semiconductor...........................0.86%
SRA International Class A Shrs..................0.86%
Integrated Circuit Systems......................0.86%
HOLDINGS AND COMPOSITION OF HOLDINGS ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
LINE GRAPH: INVESCO SMALL COMPANY GROWTH FUND - INVESTOR CLASS GROWTH OF
$10,000(11)
This line graph compares the value of a $10,000 investment in INVESCO Small
Company Growth Fund - Investor Class to the value of a $10,000 investment in the
Russell 2000 Growth Index(12) and to the value of a $10,000 investment in the
Russell 2000 Index(12), assuming in each case reinvestment of all dividends and
capital gain distributions, for the ten year period ended 7/31/03.
INVESCO Small Company Growth Russell 2000 growth Index(12) Russell 2000 Index(12)
Fund - Investor Class
7/93 $10,000 $10,000 $10,000
7/94 $11,173 $10,128 $10,461
7/95 $13,359 $13,548 $13,074
7/96 $15,073 $13,957 $13,978
7/97 $18,849 $17,482 $18,645
7/98 $19,690 $17,251 $19,075
7/99 $26,055 $19,754 $20,489
7/00 $40,008 $23,928 $23,310
7/01 $29,393 $18,350 $22,912
7/02 $19,373 $12,733 $18,797
7/03 $23,012 $16,295 $23,141
ENERGY AND TECHNOLOGY HOLDINGS DETRACTED FROM PERFORMANCE
The fund's energy exposure was another disappointment. Although our picks
advanced during the fiscal year, they underperformed the broader market. Since
the fund was overweight in the group, the energy sector undermined our relative
showing.
Finally, our market-weighted exposure to the technology sector also hurt
performance. In this area, our stock selection hurt. Our picks in the Internet
software, computer hardware, and software industries generally lagged the rest
of their industry. Since the tech sector was one of the market's better
performing areas, the fact that we missed out on some of the group's better
performers negatively affected returns. Within the technology sector, only our
selections in the communications equipment and semiconductor industries were
highlights.
Although the past year was difficult, we remain confident in our ability to
deliver on our mandate. We continue to find what we believe are compelling
opportunities within the small-cap growth universe. At period end, the fund was
overweighted in the energy, consumer staples and financial services sectors.
PIE CHART: SMALL COMPANY GROWTH FUND
INDUSTRY BREAKDOWN
AS OF 7/31/03
[PIE CHART]
% OF TOTAL NET ASSETS
Biotechnology................6.65%
Semiconductors...............6.07%
Diversified Banks............5.61%
Health Care Equipment........4.40%
Pharmaceuticals..............3.34%
Semiconductor Equipment......3.29%
Specialty Stores.............3.08%
Networking Equipment.........2.73%
Communications Equipment.....2.67%
Investment Adviser/Broker
Dealer Services..............2.67%
Other Industries............50.47%
Net Cash & Cash Equivalents..9.02%
LINE GRAPH: INVESCO SMALL COMPANY GROWTH FUND - CLASS A & B GROWTH OF
$10,000(11)
This line graph compares the value of a $10,000 investment in INVESCO Small
Company Growth Fund - Class A and the value of a $10,000 investment in INVESCO
Small Company Growth Fund - Class B to the value of a $10,000 investment in the
Russell 2000 Growth Index(12) and to the value of a $10,000 investment in the
Russell 2000 Index(12), assuming in each case reinvestment of all dividends and
capital gain distributions, and in the cases of INVESCO Small Company Growth
Fund - Class A and Class B inclusion of front-end sales charge and contingent
deferred sales charge, respectively, for the period since inception (4/02)
through 7/31/03.
INVESCO Small Company INVESCO Small Company Russell 2000 Growth Russell 2000 Index(12)
Growth Fund - Class A Growth Fund - Class B Index(12)
4/02 $10,000 $10,000 $10,000 $10,000
7/02 $ 7,067 $ 7,476 $ 7,135 $ 7,781
7/03 $ 8,403 $ 8,409 $ 9,131 $ 9,579
LINE GRAPH: INVESCO SMALL COMPANY GROWTH FUND - CLASS C GROWTH OF $10,000(11)
This line graph compares the value of a $10,000 investment in INVESCO Small
Company Growth Fund - Class C to the value of a $10,000 investment in Russell
2000 Growth Index(12) and to the value of a $10,000 investment in the Russell
2000 Index(12), assuming in each case reinvestment of all dividends and capital
gain distributions, and in the case of INVESCO Small Company Growth Fund - Class
C inclusion of contingent deferred sales charge, for the period since inception
(2/00) thru 7/31/03.
INVESCO Small Company Growth Russell 2000 Growth Russell 2000 Index(12)
Fund - Class C Index(12)
2/00 $10,000 $10,000 $10,000
7/00 $ 8,883 $ 7,579 $ 8,698
7/01 $ 6,463 $ 5,812 $ 8,549
7/02 $ 4,165 $ 4,033 $ 7,014
7/03 $ 4,891 $ 5,161 $ 8,615
LINE GRAPH: INVESCO SMALL COMPANY GROWTH FUND - CLASS K GROWTH OF $10,000(11)
This line graph compares the value of a $10,000 investment in INVESCO Small
Company Growth Fund - Class K to the value of a $10,000 investment in Russell
2000 Growth Index(12) and to the value of a $10,000 investment in the Russell
2000 Index(12), assuming in each case reinvestment of all dividends and capital
gain distributions, for the period since inception (12/01) through 7/31/03.
INVESCO Small Company Growth Russell 2000 Growth Index(12) Russell 2000 Index(12)
Fund - Class K
12/01 $10,000 $10,000 $10,000
7/02 $ 7,168 $ 6,995 $ 8,091
7/03 $ 8,495 $ 8,952 $ 9,961
(11)PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT, WHEN REDEEMED, AN INVESTOR'S SHARES MAY
BE WORTH MORE OR LESS THAN WHEN PURCHASED. THE LINE GRAPHS ILLUSTRATE THE VALUE
OF A $10,000 INVESTMENT, PLUS REINVESTED DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ALONG WITH APPLICABLE FRONT-END SALES CHARGES AND CDSC. THE CHARTS
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.
(12)THE RUSSELL 2000 GROWTH INDEX COMPRISES SECURITIES IN THE RUSSELL 2000 INDEX
WITH A GREATER-THAN-AVERAGE GROWTH ORIENTATION. COMPANIES IN THIS INDEX TEND TO
EXHIBIT HIGHER PRICE-TO-BOOK AND PRICE-TO-EARNINGS RATIOS. THE RUSSELL 2000
INDEX MEASURES THE PERFORMANCE OF THE 2,000 SMALLEST COMPANIES IN THE RUSSELL
3000 INDEX. THE INDEXES ARE NOT MANAGED; THEREFORE, THEIR PERFORMANCE DOES NOT
REFLECT MANAGEMENT FEES AND OTHER EXPENSES ASSOCIATED WITH THE FUND INCLUDING
FRONT-END SALES CHARGES AND CDSC. INVESTORS CANNOT INVEST DIRECTLY IN ANY MARKET
INDEX.
AT ANY GIVEN TIME, THE FUND MAY BE SUBJECT TO SECTOR RISK, WHICH MEANS A CERTAIN
SECTOR MAY UNDERPERFORM OTHER SECTORS OR THE MARKET AS A WHOLE. THE FUND IS NOT
LIMITED WITH RESPECT TO THE SECTORS IN WHICH IT CAN INVEST.
FUND MANAGEMENT
[PHOTOGRAPH OF STACIE L. COWELL OMITTED]
STACIE L. COWELL, CFA
SENIOR VICE PRESIDENT STACIE COWELL IS THE LEAD MANAGER OF INVESCO SMALL COMPANY
GROWTH FUND. STACIE RECEIVED HER BA FROM COLGATE UNIVERSITY, AND HER MS IN
FINANCE FROM THE UNIVERSITY OF COLORADO AT DENVER. STACIE BEGAN HER INVESTMENT
CAREER IN 1989, AND SHE HAS MANAGED THIS FUND SINCE 1996. SHE IS A CHARTERED
FINANCIAL ANALYST CHARTERHOLDER.
[PHOTOGRAPH OF CAMERON COOKE OMITTED]
CAMERON COOKE
CAMERON COOKE IS CO-PORTFOLIO MANAGER OF INVESCO SMALL COMPANY GROWTH FUND. HE
RECEIVED HIS BACHELOR'S DEGREE IN ECONOMICS FROM THE UNIVERSITY OF NORTH
CAROLINA AT CHAPEL HILL, AND BEGAN HIS INVESTMENT CAREER IN 1996. HE JOINED
INVESCO IN 2000.
YOUR FUND'S REPORT
VALUE EQUITY FUND
FUND PERFORMANCE
DEAR SHAREHOLDER:
For the year ended July 31, 2003, Value Equity Fund-Investor Class shares gained
8.10%, while the fund's benchmark, the S&P 500 Index,(R) returned 10.65%. (Of
course, past performance is not a guarantee of future results.)(13),(14) For
performance of other share classes, please see page 2.
INDUSTRIALS AND CONSUMER STAPLES HOLDINGS LAG
During the first half of the fiscal year, bear market conditions persisted, as
evidenced by the S&P 500's(R) 5.25% decline for the six-month period ended
1/31/03. However, in the second half of the year, stock performance improved
dramatically -- hence the index's full-year return of 10.65%. This turnaround
allowed growth-oriented sectors, such as technology and telecommunications, to
rebound and finish the fiscal year as market leaders.
At the same time, areas of the economy generally deemed more defensive lagged.
For example, many consumer staples names were left behind, and, though we were
underweight relative to the index in staples, the fund's holdings representing
this area detracted from our annual return. Specifically, Altria Group (formerly
Philip Morris and no longer a fund holding) retreated, and food producers like
Hershey Foods (no longer a fund holding) and H.J. Heinz experienced essentially
flat performance for the year.
The fund was also hampered by its overweight position in the industrials sector,
which lagged during the reporting period. Disappointments included Lockheed
Martin (no longer a fund holding) and General Electric.
FINANCIAL SERVICES AND HEALTH CARE STOCKS PROVIDE SUPPORT
On the positive side, the fund enjoyed strong performance from its financial
services and health care holdings, with both of these groups outpacing their S&P
500(R) counterparts for the year. Within financial services, we focused on
market-sensitive names that we believed were positioned to benefit from a stock
market rebound -- a strategy that worked to our advantage in the latter half of
the period when market conditions improved dramatically. Leading the way for the
fund were Citigroup Inc, Merrill Lynch & Co, and JP Morgan Chase & Co.
Our health care holdings outperformed thanks to a nimble positioning change we
implemented within the sector. Heading into the reporting period, the fund's
health care exposure focused on hospital stocks. These continued to do well for
the fund through the summer and early fall. However, we grew concerned that
hospital fundamentals were deteriorating as October progressed, and opted to
sell those companies we deemed to be at risk -- a decision that proved
beneficial, as hospitals were hard-hit in the fourth quarter of 2002 over
worries about their Medicare pricing policies.
LINE GRAPH: INVESCO VALUE EQUITY FUND - INVESTOR CLASS GROWTH OF $10,000(13)
This line graph compares the value of a $10,000 investment in INVESCO Value
Equity Fund - Investor Class to the value of a $10,000 investment in the S&P 500
Index(R)(14), assuming in each case reinvestment of all dividends and capital
gain distributions, for the ten-year period ended 7/31/03.
INVESCO Value Equity Fund - Investor Class S&P 500 Index(R)(14)
7/93 $10,000 $10,000
7/94 $10,979 $10,517
7/95 $13,522 $13,263
7/96 $15,476 $15,462
7/97 $21,875 $23,524
7/98 $24,023 $28,062
7/99 $25,957 $33,730
7/00 $24,266 $36,759
7/01 $24,314 $31,491
7/02 $19,382 $24,053
7/03 $20,952 $26,615
LINE GRAPH: INVESCO VALUE EQUITY FUND - CLASS A & B GROWTH OF $10,000(13)
This line graph compares the value of a $10,000 investment in INVESCO Value
Equity Fund - Class A and the value of a $10,000 investment in INVESCO Value
Equity Fund - Class B to the value of a $10,000 investment in the S&P 500
Index(R)(14), assuming in each case reinvestment of all dividends and capital
gain distributions, and in the cases of INVESCO Value Equity Fund - Class A and
Class B inclusion of front-end sales charge and contingent deferred sales
charge, respectively, for the period since inception (4/02) through 7/31/03.
INVESCO Value Equity Fund INVESCO Value Equity Fund S&P 500 Index(R)(14)
- Class A - Class B
4/02 $10,000 $10,000 $10,000
7/02 $ 7,609 $ 8,079 $ 7,985
7/03 $ 8,213 $ 8,269 $ 8,835
LINE GRAPH: INVESCO VALUE EQUITY FUND - CLASS C GROWTH OF $10,000(13)
This line graph compares the value of a $10,000 investment in INVESCO Value
Equity Fund - Class C to the value of a $10,000 investment in the S&P 500
Index(R)(14), assuming in each case reinvestment of all dividends and capital
gain distributions, and in the case of INVESCO Value Equity Fund - Class C
inclusion of contingent deferred sales charge, for period since inception (2/00)
through 7/31/03.
INVESCO Value Equity Fund - Class C S&P 500 Index(R)(14)
2/00 $10,000 $10,000
7/00 $10,152 $10,520
7/01 $10,102 $ 9,012
7/02 $ 7,982 $ 6,884
7/03 $ 8,565 $ 7,617
SEEKING GROWTH POTENTIAL AT ATTRACTIVE VALUATIONS
The economic landscape remains somewhat clouded at this time, but we were
pleased to see stocks perform so well during the second quarter of 2003. Our
strategy is unchanged: Going forward, we will continue to target industry
leaders across a wide array of market sectors, generally looking for growth
potential offered at attractive valuations.
SINCE 7/1/03, THE FUND HAS BEEN MANAGED BY BRETT W. STANLEY, R. CANON COLEMAN
II, MATTHEW W. SEINSHEIMER, AND MICHAEL J. SIMON.
- --------------------------------------------------------------------------------
VALUE EQUITY FUND --
TOP 10 COMMON STOCK HOLDINGS
% OF TOTAL NET ASSETS AS OF 7/31/03
- --------------------------------------------------------------------------------
Citigroup Inc..........................3.56%
Wells Fargo & Co.......................3.20%
Merrill Lynch & Co.....................3.01%
Pfizer Inc.............................2.97%
Bank of America........................2.89%
Exxon Mobil............................2.70%
Marsh & McLennan.......................2.63%
Computer Associates International .....2.30%
Merck & Co.............................2.18%
JP Morgan Chase & Co...................2.07%
HOLDINGS AND COMPOSITION OF HOLDINGS ARE SUBJECT TO CHANGE.
- --------------------------------------------------------------------------------
PIE CHART: VALUE EQUITY FUND
INDUSTRY BREAKDOWN
AS OF 7/31/03
[PIE CHART]
% OF TOTAL NET ASSETS
Diversified Banks...............9.89%
Pharmaceuticals ................7.30%
Diversified Financial Services..5.63%
Investment Adviser/Broker
Dealer Services ................5.60%
Industrial Conglomerates........3.98%
Industrial Machinery............3.71%
Computer Hardware...............3.32%
Advertising.....................3.22%
Integrated Oil & Gas............2.70%
Insurance Brokers...............2.63%
Other Industries ..............46.77%
Net Cash & Cash Equivalents.....5.25%
(13)PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TOTAL RETURN ASSUMES
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT, WHEN REDEEMED, AN INVESTOR'S SHARES MAY
BE WORTH MORE OR LESS THAN WHEN PURCHASED. THE LINE GRAPHS ILLUSTRATE THE VALUE
OF A $10,000 INVESTMENT, PLUS REINVESTED DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ALONG WITH APPLICABLE FRONT-END SALES CHARGES AND CDSC. THE CHARTS
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.
(14)THE S&P 500 INDEX(R) IS AN UNMANAGED INDEX OF THE 500 LARGEST COMMON STOCKS
(IN TERMS OF MARKET VALUE), WEIGHTED BY MARKET CAPITALIZATION AND CONSIDERED
REPRESENTATIVE OF THE BROAD STOCK MARKET. THE INDEX IS NOT MANAGED; THEREFORE,
ITS PERFORMANCE DOES NOT REFLECT MANAGEMENT FEES AND OTHER EXPENSES ASSOCIATED
WITH THE FUND INCLUDING FRONT-END SALES CHARGES AND CDSC. INVESTORS CANNOT
INVEST DIRECTLY IN ANY MARKET INDEX.
AT ANY GIVEN TIME, THE FUND MAY BE SUBJECT TO SECTOR RISK, WHICH MEANS A CERTAIN
SECTOR MAY UNDERPERFORM OTHER SECTORS OR THE MARKET AS A WHOLE. THE FUND IS NOT
LIMITED WITH RESPECT TO THE SECTORS IN WHICH IT CAN INVEST.
MEET THE NEW MANAGEMENT TEAM (AS OF 7/1/03)
[PHOTOGRAPH OF BRETT W. STANLEY OMITTED] [PHOTOGRAPH OF R. CANON COLEMAN II
OMITTED]
BRETT W. STANLEY, CFA (LEFT)
BEFORE JOINING AIM IN 1998, BRETT WAS A VICE PRESIDENT AND PORTFOLIO MANAGER
WITH VAN KAMPEN AMERICAN CAPITAL, INC., WHERE HE MANAGED GROWTH AND INCOME,
EQUITY INCOME, AND VALUE PORTFOLIOS. HE BEGAN HIS INVESTMENT CAREER IN 1988. HE
RECEIVED A BBA IN FINANCE FROM THE UNIVERSITY OF TEXAS AT AUSTIN AND AN MS IN
FINANCE FROM THE UNIVERSITY OF HOUSTON. HE IS A CHARTERED FINANCIAL ANALYST.
R. CANON COLEMAN II, CFA
CANON JOINED INVESCO'S PARENT COMPANY, AMVESCAP, IN 1999. HE PREVIOUSLY WORKED
AS A CPA WITH DELOITTE & TOUCHE. CANON EARNED A BS AND AN MS IN ACCOUNTING FROM
THE UNIVERSITY OF FLORIDA. HE ALSO HAS AN MBA FROM THE WHARTON SCHOOL AT THE
UNIVERSITY OF PENNSYLVANIA AND IS A CHARTERED FINANCIAL ANALYST.
[PHOTOGRAPH OF MATTHEW W. SEINSHEIMER OMITTED] [PHOTOGRAPH OF MICHAEL J. SIMON
OMITTED]
MATTHEW W. SEINSHEIMER, CFA (LEFT)
MATT BEGAN HIS INVESTMENT CAREER IN 1992 AS A FIXED-INCOME TRADER AT NEUBERGER &
BERMAN. IN 1995, HE JOINED AMERICAN INDEMNITY COMPANY, WHERE HE SERVED AS A
PORTFOLIO MANAGER ON BOTH FIXED-INCOME AND EQUITY PORTFOLIOS. HE JOINED AIM IN
1998. HE RECEIVED A BBA FROM SOUTHERN METHODIST UNIVERSITY AND AN MBA FROM THE
UNIVERSITY OF TEXAS AT AUSTIN.
MICHAEL J. SIMON, CFA
PRIOR TO JOINING AIM IN 2001, MICHAEL WAS A VICE PRESIDENT, EQUITY ANALYST AND
PORTFOLIO MANAGER WITH LUTHER KING CAPITAL MANAGEMENT. HE STARTED HIS INVESTMENT
CAREER IN 1989 AND RECEIVED HIS BBA IN FINANCE FROM TEXAS CHRISTIAN UNIVERSITY
AND AN MBA FROM THE UNIVERSITY OF CHICAGO. HE IS A CHARTERED FINANCIAL ANALYST.
MARKET HEADLINES
MARKET OVERVIEW
AUGUST 2002 TO JULY 2003
After three years of declines in the stock market, conditions improved for the
12-month period ended July 31, 2003. During this time frame, the Dow Jones
Industrial Average was up 8.19%, the Nasdaq Composite Index leapt 30.62%, and
the S&P 500 Index(R) gained 10.65%.(15)
Nevertheless, the first half of the fiscal year was fraught with setbacks.
First, a series of corporate accounting scandals dominated the news well into
summer 2002, tainting investors' perception of the market. Talk of Enron's
collapse lingered -- and new scandals surrounding companies such as WorldCom
Inc, Tyco International Ltd, and HealthSouth Corp followed. Furthermore,
geopolitical uncertainty persisted throughout the year to varying degrees as
threats of terrorist attacks, a nuclear standoff between India and Pakistan, the
war in Iraq, and North Korea's refusal to obey a 1994 arms agreement all clouded
the landscape.
During these months, investors flocked to investments with a defensive
reputation. However, starting in March 2003, sentiment underwent a dramatic
change as investors grew increasingly optimistic. This turnaround was spurred in
part by the American-led coalition's success in Iraq, which muted one source of
uncertainty. Additionally, investors were encouraged by improved corporate
earnings and a better-than expected report on gross domestic product (GDP)
growth in the second quarter, to name two factors cheering investors.
To be sure, risks remained. However, the end of the fiscal year saw investors
focusing on the positives rather than the negatives. For example, the dollar's
slide versus the euro could have stirred concerns that foreign investors might
sell dollar-denominated assets. Instead, investors pointed to the potentially
stimulative effects that the weak dollar might have on exports and
manufacturing. Investors' newfound optimism was also reflected in the market
technical profile at period-end, which saw trading volume spike higher during
rallies, while dropping as stocks slid, reflecting investors' overall preference
to buy stocks.
Given the sharp turnaround, it was not surprising to see sectors heavily
influenced by market moves finish the year ahead. Technology stocks fared
particularly well, as did many consumer discretionary and telecommunications
names. Conversely, companies with more defensive reputations from sectors like
consumer staples trailed the broad market for the year.
(15)THE DOW JONES INDUSTRIAL AVERAGE IS A PRICE-WEIGHTED AVERAGE OF 30 BLUE-CHIP
STOCKS THAT ARE GENERALLY THE LEADERS IN THEIR INDUSTRIES. THE NASDAQ COMPOSITE
INDEX IS AN UNMANAGED INDEX OF STOCKS TRADED OVER-THE-COUNTER. THE S&P 500
INDEX(R) IS AN UNMANAGED INDEX OF THE 500 LARGEST COMMON STOCKS (IN TERMS OF
MARKET VALUE), WEIGHTED BY MARKET CAPITALIZATION AND CONSIDERED REPRESENTATIVE
OF THE BROAD STOCK MARKET. THE INDEXES ARE NOT MANAGED; THEREFORE, THEIR
PERFORMANCE DOES NOT REFLECT MANAGEMENT FEES AND OTHER EXPENSES ASSOCIATED WITH
THE FUND INCLUDING FRONT-END SALES CHARGES AND CDSC. INVESTORS CANNOT INVEST
DIRECTLY IN ANY MARKET INDEX.
INVESTMENT HOLDINGS
STATEMENT OF INVESTMENT SECURITIES
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
DYNAMICS FUND
99.90 COMMON STOCKS & WARRANTS
2.23 ADVERTISING
Lamar Advertising Class A Shrs(a) 1,628,300 $ 55,866,973
Omnicom Group 437,200 32,300,336
======================================================================================================
88,167,309
0.49 AEROSPACE & DEFENSE
L-3 Communications Holdings(a) 393,600 19,317,888
======================================================================================================
0.68 AGRICULTURAL PRODUCTS
Bunge Ltd 899,100 26,928,045
======================================================================================================
1.24 APPAREL RETAIL
Chico's FAS(a) 787,000 21,367,050
TJX Cos 1,429,100 27,795,995
======================================================================================================
49,163,045
6.69 APPLICATION SOFTWARE
Amdocs Ltd(a) 2,484,900 50,642,262
BEA Systems(a) 2,650,800 34,990,560
Check Point Software Technologies Ltd(a) 1,606,300 28,576,077
Cognos Inc(a) 452,100 12,233,826
Fair Isaac & Co 170,000 9,186,800
Intuit Inc(a) 705,500 30,350,610
Mercury Interactive(a) 325,300 12,803,808
Oracle Corp Japan 209,000 8,842,341
Siebel Systems(a) 2,978,400 27,937,392
Software HOLDRs Trust(b)(e) 971,100 31,415,085
Synopsys Inc(a) 285,800 17,865,358
======================================================================================================
264,844,119
0.45 AUTO PARTS & EQUIPMENT
Advance Auto Parts(a) 261,800 17,784,074
======================================================================================================
4.13 BIOTECHNOLOGY
Biotech HOLDRs Trust(a)(b)(c) 339,700 45,818,736
Chiron Corp(a) 168,000 7,660,800
Genzyme Corp-General Division(a) 600,200 30,274,088
Gilead Sciences(a) 1,078,375 73,922,606
MedImmune Inc(a) 148,000 5,800,120
======================================================================================================
163,476,350
0.30 BREWERS
Constellation Brands Class A Shrs(a) 414,800 11,966,980
======================================================================================================
2.47 BROADCASTING -- RADIO/TV
Cox Radio Class A Shrs(a) 553,900 11,604,205
Entercom Communications Class A Shrs(a) 522,050 24,739,949
Grupo Televisa SA de CV Sponsored ADR
Representing 20 Ord Participation Certificates(c) 176,500 6,618,750
Univision Communications Class A Shrs(a)(c) 955,000 29,796,000
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Westwood One(a) 816,500 $ 24,935,910
======================================================================================================
97,694,814
2.92 CABLE & SATELLITE OPERATORS
Cablevision Systems New York Group(a) 548,400 11,680,920
Cox Communications Class A Shrs(a) 1,549,500 49,258,605
EchoStar Communications Class A Shrs(a) 1,507,700 54,684,279
======================================================================================================
115,623,804
1.23 CASINOS & GAMING
Harrah's Entertainment(a) 485,900 21,209,535
Mandalay Resort Group 235,000 8,168,600
Wynn Resorts Ltd(a) 1,131,100 19,285,255
======================================================================================================
48,663,390
2.57 COMMUNICATIONS EQUIPMENT
Alcatel Sponsored ADR Representing Ord Shrs(a) 2,163,300 21,330,138
Corning Inc(a) 2,789,100 22,703,274
JDS Uniphase(a) 1,500,800 4,517,408
UTStarcom Inc(a) 1,250,600 53,238,042
======================================================================================================
101,788,862
0.89 COMPUTER & ELECTRONICS RETAIL
CDW Corp(a) 737,200 35,297,136
======================================================================================================
2.40 COMPUTER STORAGE & PERIPHERALS
EMC Corp(a) 1,346,900 14,331,016
Emulex Corp(a) 462,200 9,405,770
Lexmark International Class A Shrs(a) 562,100 36,069,957
Network Appliance(a) 1,347,101 21,526,674
Seagate Technology(a) 629,302 13,718,784
======================================================================================================
95,052,201
0.92 CONSTRUCTION MACHINERY, FARM
MACHINERY & HEAVY TRUCKS
Cummins Inc 310,000 14,362,300
Navistar International(a) 566,000 22,085,320
======================================================================================================
36,447,620
0.60 CONSUMER FINANCE
SLM Corp 570,800 23,665,368
======================================================================================================
2.76 DATA PROCESSING SERVICES
DST Systems(a) 967,400 35,561,624
Fiserv Inc(a) 1,092,600 42,655,104
Paychex Inc 953,750 31,025,487
======================================================================================================
109,242,215
1.36 DIVERSIFIED BANKS
M&T Bank 90,700 8,033,299
Northern Trust 800,800 34,962,928
Synovus Financial 465,000 10,941,450
======================================================================================================
53,937,677
1.18 DIVERSIFIED COMMERCIAL SERVICES
ChoicePoint Inc(a) 734,300 28,006,202
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Cintas Corp 449,900 $ 18,607,864
======================================================================================================
46,614,066
2.08 DIVERSIFIED FINANCIAL SERVICES
Ambac Financial Group(c) 549,200 36,175,804
Franklin Resources 718,000 31,197,100
Neuberger Berman 371,500 14,967,735
======================================================================================================
82,340,639
2.59 EDUCATION SERVICES
Apollo Group Class A Shrs(a) 380,550 24,644,418
Career Education(a) 495,900 41,358,060
ITT Educational Services(a) 928,400 36,421,132
======================================================================================================
102,423,610
1.11 ELECTRICAL COMPONENTS & EQUIPMENT
Molex Inc 1,025,662 28,636,483
SPX Corp(a) 323,400 15,228,906
======================================================================================================
43,865,389
0.41 ELECTRONIC EQUIPMENT MANUFACTURERS
Garmin Ltd(a) 86,700 3,317,142
Jabil Circuit(a) 562,000 12,954,100
======================================================================================================
16,271,242
2.47 EMPLOYMENT SERVICES
Manpower Inc 1,276,600 48,638,460
Robert Half International(a) 2,275,400 49,398,934
======================================================================================================
98,037,394
1.10 ENVIRONMENTAL SERVICES
Republic Services(a) 1,806,000 43,705,200
======================================================================================================
0.13 FOOD DISTRIBUTORS
United Natural Foods(a) 164,400 5,025,708
======================================================================================================
0.97 FOOD RETAIL
Dean Foods(a) 841,900 25,198,067
Whole Foods Market(a) 262,500 13,381,200
======================================================================================================
38,579,267
0.64 FOOTWEAR
NIKE Inc Class B Shrs 492,000 25,456,080
======================================================================================================
1.19 GENERAL MERCHANDISE STORES
Dollar Tree Stores(a) 230,100 8,440,068
Family Dollar Stores 626,000 23,481,260
Ross Stores 337,000 15,400,900
======================================================================================================
47,322,228
1.00 HEALTH CARE DISTRIBUTORS
AdvancePCS Class A Shrs(a) 562,000 21,294,180
Express Scripts(a) 276,501 18,249,066
======================================================================================================
39,543,246
4.55 HEALTH CARE EQUIPMENT
Biomet Inc 1,152,200 34,116,642
Boston Scientific(a)(c) 587,000 37,116,010
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
C.R. Bard(c) 113,000 $ 7,747,280
Medtronic Inc 21,100 1,086,650
Stryker Corp 161,500 12,357,980
Varian Medical Systems(a) 984,100 60,384,376
Zimmer Holdings(a) 573,400 27,414,254
======================================================================================================
180,223,192
0.26 HEALTH CARE FACILITIES
Health Management Associates Class A Shrs 508,000 10,144,760
======================================================================================================
0.21 HEALTH CARE SUPPLIES
Smith & Nephew PLC 1,395,000 8,319,282
======================================================================================================
1.42 HOTELS & RESORTS
Expedia Inc(a) 224,400 17,550,324
Expedia Inc Warrants(a) (Exp 2009) 216,572 11,920,123
Hilton Hotels 1,842,000 26,893,200
======================================================================================================
56,363,647
0.90 INDUSTRIAL GASES
Praxair Inc 552,000 35,692,320
======================================================================================================
2.05 INDUSTRIAL MACHINERY
Danaher Corp 141,700 10,230,740
Donaldson Co 91,000 4,436,250
Eaton Corp 211,000 17,759,870
Illinois Tool Works 436,900 30,430,085
ITT Industries 274,400 18,302,480
======================================================================================================
81,159,425
1.01 INTEGRATED OIL & GAS
Murphy Oil 812,200 40,106,436
======================================================================================================
1.81 INTERNET SOFTWARE & SERVICES
Mindspeed Technologies(a) 427,933 1,369,386
VeriSign Inc(a) 2,377,500 31,739,625
Yahoo! Inc(a) 1,239,400 38,582,522
======================================================================================================
71,691,533
3.04 INVESTMENT ADVISER/BROKER DEALER SERVICES
Bear Stearns 213,800 14,324,600
Federated Investors Class B Shrs 196,200 5,638,788
Legg Mason 822,400 57,568,000
Lehman Brothers Holdings 297,080 18,796,252
T Rowe Price Group 593,000 24,069,870
======================================================================================================
120,397,510
0.37 INVESTMENT COMPANIES
iShares Trust Russell Midcap Growth Index Fund(c) 9,500 603,725
NASDAQ-100 Trust Series 1 Shrs(a)(c) 436,100 13,881,063
======================================================================================================
14,484,788
1.17 IT CONSULTING & OTHER SERVICES
Affiliated Computer Services Class A Shrs(a) 146,200 7,244,210
BISYS Group(a) 1,343,000 22,226,650
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
SunGard Data Systems(a) 637,200 $ 16,720,128
======================================================================================================
46,190,988
1.11 LEISURE PRODUCTS
Marvel Enterprises(a) 706,100 13,839,560
Mattel Inc 1,548,100 30,079,583
======================================================================================================
43,919,143
0.29 LIFE & HEALTH INSURANCE
AFLAC Inc 20,700 664,056
Nationwide Financial Services Class A Shrs 355,200 10,993,440
======================================================================================================
11,657,496
3.15 MANAGED HEALTH CARE
Aetna Inc 475,000 29,269,500
Anthem Inc(a) 469,000 35,414,190
Caremark Rx(a) 1,011,000 25,295,220
Mid Atlantic Medical Services(a) 175,000 9,516,500
WellPoint Health Networks(a) 300,000 25,095,000
======================================================================================================
124,590,410
0.30 METAL & GLASS CONTAINERS
Ball Corp 243,400 12,096,980
======================================================================================================
0.16 MOTORCYCLE MANUFACTURERS
Harley-Davidson Inc 137,900 6,464,752
======================================================================================================
0.29 MOVIES & ENTERTAINMENT
Pixar(a) 170,500 11,559,900
======================================================================================================
0.14 MULTI-LINE INSURANCE
Willis Group Holdings Ltd 186,800 5,622,680
======================================================================================================
0.32 NETWORKING EQUIPMENT
Juniper Networks(a) 866,300 12,500,709
======================================================================================================
0.37 OIL & GAS DRILLING
Nabors Industries Ltd(a) 257,450 9,216,710
Noble Corp(a) 162,500 5,341,375
======================================================================================================
14,558,085
2.33 OIL & GAS EQUIPMENT & SERVICES
BJ Services(a) 615,200 21,070,600
Cooper Cameron(a) 311,195 14,878,233
Smith International(a) 1,156,200 41,438,208
Weatherford International Ltd(a) 410,000 14,870,700
======================================================================================================
92,257,741
2.35 OIL & GAS EXPLORATION & PRODUCTION
Apache Corp 617,917 38,286,137
EOG Resources 80,200 3,110,156
Kerr-McGee Corp 468,200 20,600,800
Pioneer Natural Resources(a) 638,500 15,324,000
Talisman Energy 369,000 15,826,410
======================================================================================================
93,147,503
5.14 PHARMACEUTICALS
Alcon Inc 1,296,000 66,057,120
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Barr Laboratories(a) 637,800 $ 43,083,390
Forest Laboratories(a) 371,100 17,768,268
Teva Pharmaceutical Industries Ltd Sponsored ADR
Representing Ord Shrs 1,338,170 76,730,668
======================================================================================================
203,639,446
0.46 PROPERTY & CASUALTY INSURANCE
SAFECO Corp 490,000 18,242,700
======================================================================================================
0.01 PUBLISHING & PRINTING
Knight-Ridder Inc 3,900 267,657
======================================================================================================
2.65 RESTAURANTS
CBRL Group 1,300,000 45,812,000
Outback Steakhouse 589,600 22,021,560
P.F. Chang's China Bistro(a) 6,800 328,984
Starbucks Corp(a) 1,351,600 36,939,228
======================================================================================================
105,101,772
3.50 SEMICONDUCTOR EQUIPMENT
ASML Holding NV New York Registered Shrs(a) 2,092,200 27,073,068
KLA-Tencor Corp(a) 843,200 43,551,280
Lam Research(a) 1,276,550 27,777,728
Novellus Systems(a) 734,100 26,288,121
Tokyo Electron Ltd 238,000 13,958,771
======================================================================================================
138,648,968
4.74 SEMICONDUCTORS
Agere Systems Class A Shrs(a) 2,207,200 6,202,232
Altera Corp(a) 1,631,400 31,388,136
Conexant Systems(a) 3,332,500 16,395,900
Linear Technology 873,900 32,229,432
Marvell Technology Group Ltd(a) 155,000 5,449,800
Maxim Integrated Products 516,600 20,188,728
Microchip Technology 1,552,715 40,929,567
PMC-Sierra Inc(a) 779,200 9,552,992
Semiconductor HOLDRs Trust(b)(c) 643,900 20,926,750
Xilinx Inc(a) 171,800 4,514,904
======================================================================================================
187,778,441
0.77 SPECIALTY STORES
AutoZone Inc(a) 110,000 9,158,600
Tiffany & Co 627,000 21,543,720
======================================================================================================
30,702,320
2.49 SYSTEMS SOFTWARE
Adobe Systems 829,300 27,101,524
Symantec Corp(a) 514,800 24,077,196
VERITAS Software(a) 1,542,600 47,512,080
======================================================================================================
98,690,800
0.65 TRADING COMPANIES & DISTRIBUTORS
Fastenal Co(c) 679,100 25,805,800
======================================================================================================
0.30 TRUCKING
Arkansas Best 435,400 12,047,518
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
2.39 WIRELESS TELECOMMUNICATION SERVICES
AT&T Wireless Services(a) 2,308,600 $ 19,692,358
Nextel Communications Class A Shrs(a) 1,902,300 34,735,998
Nextel Partners Class A Shrs(a) 2,185,350 19,384,054
Sprint Corp-PCS Group Series 1 Shrs(a) 3,390,000 20,848,500
======================================================================================================
94,660,910
TOTAL COMMON STOCKS & WARRANTS
(COST $3,207,411,451) 3,956,980,578
======================================================================================================
0.00 PREFERRED STOCKS -- NETWORKING EQUIPMENT
Calient Networks, Pfd, Series D Shrs(a)(j)
(Cost $648,056) 89,696 17,173
======================================================================================================
1.41 SHORT-TERM INVESTMENTS
0.46 COMMERCIAL PAPER -- TRADE RECEIVABLES
New Center Asset Trust, Series 1, Discount Notes
1.130%, 8/1/2003 (Amortized Cost $18,000,000) $ 18,000,000 18,000,000
======================================================================================================
0.93 INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund(d)(e)
0.949% (Cost $36,892,514) 36,892,514 36,892,514
======================================================================================================
0.02 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 7/31/2003 due 8/1/2003 at 1.000%,
repurchased at $937,026 (Collateralized by
Fannie Mae, Benchmark Notes, due 3/17/2006
at 2.375%, value $955,548) (Cost $937,000) $ 937,000 937,000
======================================================================================================
TOTAL SHORT-TERM INVESTMENTS (COST $55,829,514) 55,829,514
======================================================================================================
101.31 TOTAL INVESTMENTS AT VALUE
(COST $3,263,889,021) 4,012,827,265
======================================================================================================
(1.31) OTHER ASSETS LESS LIABILITIES (51,906,992)
======================================================================================================
100.00 NET ASSETS AT VALUE $ 3,960,920,273
======================================================================================================
GROWTH FUND
96.74 COMMON STOCKS
2.45 AEROSPACE & DEFENSE
United Technologies 152,900 $ 11,502,667
======================================================================================================
4.98 APPLICATION SOFTWARE
Mercury Interactive(a) 168,400 6,628,224
SAP AG Sponsored ADR Representing 1/4 Ord Shr 155,600 4,566,860
Software HOLDRs Trust(b)(e) 376,900 12,192,715
======================================================================================================
23,387,799
5.20 BIOTECHNOLOGY
Amgen Inc(a) 113,200 7,876,456
Biotech HOLDRs Trust(a)(b) 76,600 10,331,808
Gilead Sciences(a) 90,900 6,231,195
======================================================================================================
24,439,459
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
1.56 BREWERS
Anheuser-Busch Cos 141,800 $ 7,348,076
======================================================================================================
1.40 CABLE & SATELLITE OPERATORS
EchoStar Communications Class A Shrs(a) 181,270 6,574,663
======================================================================================================
1.16 CASINOS & GAMING
International Game Technology 215,000 5,471,750
======================================================================================================
1.25 COMPUTER & ELECTRONICS RETAIL
Best Buy(a) 134,000 5,849,100
======================================================================================================
1.15 COMPUTER HARDWARE
Dell Inc(a) 160,000 5,388,800
======================================================================================================
2.29 COMPUTER STORAGE & PERIPHERALS
EMC Corp(a) 555,700 5,912,648
Network Appliance(a) 303,500 4,849,930
======================================================================================================
10,762,578
1.82 CONSUMER FINANCE
SLM Corp 206,000 8,540,760
======================================================================================================
2.93 DATA PROCESSING SERVICES
First Data 114,700 4,331,072
Fiserv Inc(a) 242,000 9,447,680
======================================================================================================
13,778,752
4.57 DIVERSIFIED BANKS
Bank of America 135,300 11,171,721
Wells Fargo & Co 204,100 10,313,173
======================================================================================================
21,484,894
9.24 DIVERSIFIED FINANCIAL SERVICES
American Express 137,500 6,073,375
Citigroup Inc 468,221 20,976,301
Goldman Sachs Group 50,000 4,357,000
JP Morgan Chase & Co 342,200 11,994,110
======================================================================================================
43,400,786
1.90 GENERAL MERCHANDISE STORES
Target Corp 232,300 8,901,736
======================================================================================================
5.10 HEALTH CARE EQUIPMENT
Biomet Inc 189,100 5,599,251
Boston Scientific(a) 79,800 5,045,754
Guidant Corp 105,000 4,958,100
Medtronic Inc 103,500 5,330,250
St Jude Medical(a) 56,000 3,004,400
======================================================================================================
23,937,755
2.65 HYPERMARKETS & SUPER CENTERS
Wal-Mart Stores 222,500 12,439,975
======================================================================================================
2.26 INDUSTRIAL CONGLOMERATES
General Electric 373,490 10,622,056
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
1.54 INVESTMENT ADVISER/BROKER DEALER SERVICES
Merrill Lynch & Co 133,000 $ 7,231,210
======================================================================================================
3.58 INVESTMENT COMPANIES
DIAMONDS Trust Series 1 Shrs(f) 66,000 6,103,020
NASDAQ-100 Trust Series 1 Shrs(a)(c) 336,900 10,723,527
======================================================================================================
16,826,547
1.11 IT CONSULTING & OTHER SERVICES
Affiliated Computer Services Class A Shrs(a) 105,700 5,237,435
======================================================================================================
1.00 MANAGED HEALTH CARE
UnitedHealth Group 90,000 4,688,100
======================================================================================================
1.95 MOVIES & ENTERTAINMENT
AOL Time Warner(a) 276,500 4,266,395
Viacom Inc Class B Shrs(a) 112,700 4,904,704
======================================================================================================
9,171,099
3.14 NETWORKING EQUIPMENT
Cisco Systems(a) 756,540 14,767,661
======================================================================================================
0.80 PERSONAL PRODUCTS
Avon Products 60,000 3,743,400
======================================================================================================
12.54 PHARMACEUTICALS
Abbott Laboratories 212,400 8,336,700
Johnson & Johnson 243,400 12,605,686
Merck & Co 66,600 3,681,648
Pfizer Inc 601,000 20,049,360
Teva Pharmaceutical Industries Ltd Sponsored ADR
Representing Ord Shrs 93,800 5,378,492
Wyeth 194,000 8,842,520
======================================================================================================
58,894,406
1.23 RESTAURANTS
Starbucks Corp(a) 211,500 5,780,295
======================================================================================================
2.74 SEMICONDUCTOR EQUIPMENT
Applied Materials(a) 538,740 10,505,430
Novellus Systems(a) 66,300 2,374,203
======================================================================================================
12,879,633
6.56 SEMICONDUCTORS
Intel Corp 690,700 17,232,965
Semiconductor HOLDRs Trust(b)(c) 274,300 8,914,750
Texas Instruments 247,280 4,666,173
======================================================================================================
30,813,888
1.20 SOFT DRINKS
Coca-Cola Co 125,800 5,657,226
======================================================================================================
7.44 SYSTEMS SOFTWARE
Microsoft Corp 719,980 19,007,472
Oracle Corp(a) 532,645 6,391,740
VERITAS Software(a) 310,000 9,548,000
======================================================================================================
34,947,212
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $389,566,990) $ 454,469,718
======================================================================================================
4.92 SHORT-TERM INVESTMENTS -- INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund(d)(e)
0.949% (Cost $23,098,473) 23,098,473 23,098,473
======================================================================================================
101.66 TOTAL INVESTMENTS AT VALUE
(COST $412,665,463) 477,568,191
======================================================================================================
(1.66) OTHER ASSETS LESS LIABILITIES (7,790,942)
======================================================================================================
100.00 NET ASSETS AT VALUE $ 469,777,249
======================================================================================================
GROWTH & INCOME FUND
96.99 COMMON STOCKS
0.78 ADVERTISING
Omnicom Group 4,900 $ 362,012
======================================================================================================
1.46 AEROSPACE & DEFENSE
Lockheed Martin 7,000 366,380
United Technologies 4,100 308,443
======================================================================================================
674,823
0.86 APPAREL RETAIL
Gap Inc 13,000 233,870
Pacific Sunwear of California(a) 5,300 160,855
======================================================================================================
394,725
2.01 BIOTECHNOLOGY
Amgen Inc(a) 13,300 925,414
======================================================================================================
0.59 BREWERS
Anheuser-Busch Cos 5,300 274,646
======================================================================================================
0.64 BROADCASTING -- RADIO/TV
Clear Channel Communications(a) 7,200 294,840
======================================================================================================
0.49 CABLE & SATELLITE OPERATORS
Comcast Corp Special Class A Shrs(a) 7,700 225,610
======================================================================================================
0.44 CASINOS & GAMING
International Game Technology 8,000 203,600
======================================================================================================
0.58 COMPUTER & ELECTRONICS RETAIL
Best Buy(a) 6,100 266,265
======================================================================================================
3.42 COMPUTER HARDWARE
Dell Inc(a) 21,600 727,488
Hewlett-Packard Co 6,400 135,488
International Business Machines 8,800 715,000
======================================================================================================
1,577,976
2.39 CONSUMER FINANCE
Fannie Mae 9,600 614,784
SLM Corp 11,700 485,082
======================================================================================================
1,099,866
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
0.52 CRUISE LINES
Carnival Corp Paired Certificates SBI 7,000 $ 240,170
======================================================================================================
1.76 DATA PROCESSING SERVICES
First Data 12,140 458,407
Fiserv Inc(a) 9,000 351,360
======================================================================================================
809,767
2.84 DIVERSIFIED BANKS
Bank of America 7,900 652,303
Fifth Third Bancorp 4,100 225,541
Wells Fargo & Co 8,500 429,505
======================================================================================================
1,307,349
7.53 DIVERSIFIED FINANCIAL SERVICES
American Express 15,000 662,550
Citigroup Inc 30,000 1,344,000
Goldman Sachs Group 8,000 697,120
JP Morgan Chase & Co 13,700 480,185
Prudential Financial 8,000 284,640
======================================================================================================
3,468,495
0.49 DRUG RETAIL
Walgreen Co 7,500 224,400
======================================================================================================
1.17 EDUCATION SERVICES
Apollo Group Class A Shrs(a) 4,500 291,420
Career Education(a) 3,000 250,200
======================================================================================================
541,620
1.00 ELECTRIC UTILITIES
Dominion Resources 2,500 150,250
FPL Group 3,000 185,010
Southern Co 4,400 125,136
======================================================================================================
460,396
0.76 GENERAL MERCHANDISE STORES
Target Corp 9,100 348,712
======================================================================================================
3.36 HEALTH CARE EQUIPMENT
Boston Scientific(a) 4,500 284,535
Medtronic Inc 11,700 602,550
St Jude Medical(a) 4,000 214,600
Stryker Corp 1,900 145,388
Zimmer Holdings(a) 6,300 301,203
======================================================================================================
1,548,276
1.92 HOME IMPROVEMENT RETAIL
Home Depot 20,400 636,480
Lowe's Cos 5,200 247,312
======================================================================================================
883,792
2.19 HOUSEHOLD PRODUCTS
Colgate-Palmolive Co 6,100 333,060
Procter & Gamble 7,720 678,356
======================================================================================================
1,011,416
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
2.98 HYPERMARKETS & SUPER CENTERS
Wal-Mart Stores 24,600 $ 1,375,386
======================================================================================================
4.37 INDUSTRIAL CONGLOMERATES
General Electric 59,000 1,677,960
3M Co 2,400 336,480
======================================================================================================
2,014,440
0.41 INDUSTRIAL MACHINERY
Danaher Corp 2,600 187,720
======================================================================================================
1.00 INTEGRATED OIL & GAS
Exxon Mobil 13,000 462,540
======================================================================================================
1.16 INTERNET RETAIL
Amazon.com Inc(a) 3,500 146,020
eBay Inc(a) 3,610 386,992
======================================================================================================
533,012
0.28 INTERNET SOFTWARE & SERVICES
Yahoo! Inc(a) 4,100 127,633
======================================================================================================
2.40 INVESTMENT ADVISER/BROKER DEALER SERVICES
Lehman Brothers Holdings 4,205 266,050
Merrill Lynch & Co 9,500 516,515
Morgan Stanley 6,800 322,592
======================================================================================================
1,105,157
2.16 INVESTMENT COMPANIES
Standard & Poor's Depositary Receipts Trust Series 1 Shrs 10,000 993,900
======================================================================================================
0.23 LIFE & HEALTH INSURANCE
AFLAC Inc 3,300 105,864
======================================================================================================
1.83 MANAGED HEALTH CARE
Aetna Inc 4,400 271,128
UnitedHealth Group 11,000 572,990
======================================================================================================
844,118
1.77 MOVIES & ENTERTAINMENT
AOL Time Warner(a) 16,500 254,595
Viacom Inc Class B Shrs(a) 12,860 559,667
======================================================================================================
814,262
1.29 MULTI-LINE INSURANCE
American International Group 9,257 594,300
======================================================================================================
2.78 NETWORKING EQUIPMENT
Cisco Systems(a) 65,685 1,282,171
======================================================================================================
0.86 OIL & GAS DRILLING
ENSCO International 8,000 200,560
Nabors Industries Ltd(a) 5,500 196,900
======================================================================================================
397,460
0.88 OIL & GAS EQUIPMENT & SERVICES
Schlumberger Ltd 9,000 405,630
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
0.23 OIL & GAS EXPLORATION & PRODUCTION
Devon Energy 2,200 $ 104,214
======================================================================================================
0.89 PACKAGED FOODS & MEATS
Sysco Corp 13,700 412,781
======================================================================================================
0.73 PERSONAL PRODUCTS
Avon Products 2,200 137,258
Gillette Co 6,500 199,940
======================================================================================================
337,198
13.71 PHARMACEUTICALS
Abbott Laboratories 10,500 412,125
Alcon Inc 4,200 214,074
Allergan Inc 3,500 281,680
Eli Lilly & Co 7,100 467,464
Forest Laboratories(a) 3,450 165,186
Johnson & Johnson 25,200 1,305,108
Merck & Co 6,900 381,432
Pfizer Inc 54,400 1,814,784
Taro Pharmaceutical Industries Ltd(a) 3,600 196,452
Teva Pharmaceutical Industries Ltd Sponsored ADR
Representing Ord Shrs 7,600 435,784
Wyeth 14,100 642,678
======================================================================================================
6,316,767
0.56 PUBLISHING & PRINTING
Gannett Co 1,700 130,611
Tribune Co 2,700 127,494
======================================================================================================
258,105
0.56 RAILROADS
Canadian National Railway 5,000 260,250
======================================================================================================
2.31 SEMICONDUCTOR EQUIPMENT
Applied Materials(a) 23,200 452,400
KLA-Tencor Corp(a) 7,000 361,550
Novellus Systems(a) 7,000 250,670
======================================================================================================
1,064,620
5.22 SEMICONDUCTORS
Analog Devices(a) 6,500 246,675
Intel Corp 46,205 1,152,815
Linear Technology 11,900 438,872
Microchip Technology 8,500 224,060
Xilinx Inc(a) 13,000 341,640
======================================================================================================
2,404,062
2.64 SOFT DRINKS
Coca-Cola Co 11,700 526,149
PepsiCo Inc 15,000 691,050
======================================================================================================
1,217,199
0.55 SPECIALTY STORES
Bed Bath & Beyond(a) 6,500 252,395
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
6.08 SYSTEMS SOFTWARE
Microsoft Corp 75,100 $ 1,982,640
Oracle Corp(a) 35,860 430,320
Symantec Corp(a) 2,500 116,925
VERITAS Software(a) 8,800 271,040
======================================================================================================
2,800,925
1.91 WIRELESS TELECOMMUNICATION SERVICES
AT&T Wireless Services(a) 33,000 281,490
Nextel Communications Class A Shrs(a) 15,800 288,507
Vodafone Group PLC Sponsored ADR Representing 10 Ord Shrs 16,400 311,272
======================================================================================================
881,269
TOTAL COMMON STOCKS (COST $41,435,629) 44,697,548
======================================================================================================
3.41 SHORT-TERM INVESTMENTS -- INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund(e)
0.949% (Cost $1,572,820) 1,572,820 1,572,820
======================================================================================================
100.40 TOTAL INVESTMENTS AT VALUE
(COST $43,008,449) 46,270,368
======================================================================================================
(0.40) OTHER ASSETS LESS LIABILITIES (184,580)
======================================================================================================
100.00 NET ASSETS AT VALUE $ 46,085,788
======================================================================================================
MID-CAP GROWTH FUND
93.78 COMMON STOCKS & WARRANTS
0.82 ADVERTISING
Omnicom Group 1,800 $ 132,984
======================================================================================================
1.54 AEROSPACE & DEFENSE
L-3 Communications Holdings(a) 5,100 250,308
======================================================================================================
2.96 APPAREL RETAIL
Chico's FAS(a) 6,600 179,190
TJX Cos 15,585 303,128
======================================================================================================
482,318
6.64 APPLICATION SOFTWARE
Amdocs Ltd(a) 10,100 205,838
BEA Systems(a) 22,500 297,000
Intuit Inc(a) 7,050 303,291
Siebel Systems(a) 29,400 275,772
======================================================================================================
1,081,901
2.86 BIOTECHNOLOGY
Biotech HOLDRs Trust(a)(b) 1,400 188,832
Gilead Sciences(a) 4,050 277,627
======================================================================================================
466,459
2.07 BROADCASTING -- RADIO/TV
Cox Radio Class A Shrs(a) 3,000 62,850
Entercom Communications Class A Shrs(a) 2,440 115,632
Univision Communications Class A Shrs(a) 5,100 159,120
======================================================================================================
337,602
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
4.65 CABLE & SATELLITE OPERATORS
Cox Communications Class A Shrs(a) 10,200 $ 324,258
EchoStar Communications Class A Shrs(a) 11,950 433,426
======================================================================================================
757,684
0.54 CASINOS & GAMING
Harrah's Entertainment(a) 2,000 87,300
======================================================================================================
2.23 COMPUTER STORAGE & PERIPHERALS
Brocade Communications Systems(a) 12,680 70,754
Network Appliance(a) 18,325 292,834
======================================================================================================
363,588
3.78 DATA PROCESSING SERVICES
Fiserv Inc(a) 9,647 376,619
Paychex Inc 7,325 238,282
======================================================================================================
614,901
1.54 DIVERSIFIED BANKS
M&T Bank 350 31,000
Northern Trust 5,020 219,173
======================================================================================================
250,173
0.63 DIVERSIFIED COMMERCIAL SERVICES
Cintas Corp 2,500 103,400
======================================================================================================
3.06 DIVERSIFIED FINANCIAL SERVICES
Ambac Financial Group 5,217 343,644
Moody's Corp 3,000 155,160
======================================================================================================
498,804
2.34 EDUCATION SERVICES
Apollo Group Class A Shrs(a) 3,515 227,631
ITT Educational Services(a) 3,900 152,997
======================================================================================================
380,628
1.81 EMPLOYMENT SERVICES
Robert Half International(a) 13,600 295,256
======================================================================================================
1.16 FOOD RETAIL
Whole Foods Market(a) 3,695 188,356
======================================================================================================
0.73 GENERAL MERCHANDISE STORES
Dollar Tree Stores(a) 700 25,676
Family Dollar Stores 2,500 93,775
======================================================================================================
119,451
2.61 HEALTH CARE DISTRIBUTORS
Lincare Holdings(a) 6,125 222,950
Patterson Dental(a) 3,775 201,963
======================================================================================================
424,913
4.63 HEALTH CARE EQUIPMENT
Biomet Inc 6,900 204,309
Boston Scientific(a) 2,625 165,979
Stryker Corp 2,200 168,344
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Zimmer Holdings(a) 4,500 $ 215,145
======================================================================================================
753,777
0.93 HEALTH CARE SUPPLIES
Smith & Nephew PLC 25,500 152,073
======================================================================================================
1.64 HOTELS & RESORTS
Expedia Inc(a) 1,350 105,583
Expedia Inc Warrants(a) (Exp 2009) 614 33,795
Hilton Hotels 8,800 128,480
======================================================================================================
267,858
1.40 INDUSTRIAL GASES
Praxair Inc 3,525 227,927
======================================================================================================
2.19 INDUSTRIAL MACHINERY
Donaldson Co 7,315 356,606
======================================================================================================
1.52 INTEGRATED OIL & GAS
Murphy Oil 5,000 246,900
======================================================================================================
0.96 INTERNET SOFTWARE & SERVICES
Yahoo! Inc(a) 5,000 155,650
======================================================================================================
3.11 INVESTMENT ADVISER/BROKER DEALER SERVICES
Legg Mason 4,850 339,500
T Rowe Price Group 4,100 166,419
======================================================================================================
505,919
0.74 INVESTMENT COMPANIES
NASDAQ-100 Trust Series 1 Shrs(a) 3,800 120,954
======================================================================================================
2.08 IT CONSULTING & OTHER SERVICES
Affiliated Computer Services Class A Shrs(a) 1,455 72,095
BISYS Group(a) 16,100 266,455
======================================================================================================
338,550
1.20 LEISURE PRODUCTS
Mattel Inc 10,050 195,272
======================================================================================================
3.10 MANAGED HEALTH CARE
Anthem Inc(a) 1,900 143,469
Caremark Rx(a) 6,600 165,132
Mid Atlantic Medical Services(a) 700 38,066
WellPoint Health Networks(a) 1,900 158,935
======================================================================================================
505,602
1.18 METAL & GLASS CONTAINERS
Ball Corp 3,875 192,587
======================================================================================================
1.05 MOTORCYCLE MANUFACTURERS
Harley-Davidson Inc 3,660 171,581
======================================================================================================
0.37 OIL & GAS DRILLING
Nabors Industries Ltd(a) 1,690 60,502
======================================================================================================
2.22 OIL & GAS EQUIPMENT & SERVICES
Smith International(a) 5,100 182,784
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Weatherford International Ltd(a) 4,945 $ 179,355
======================================================================================================
362,139
1.44 OIL & GAS EXPLORATION & PRODUCTION
Apache Corp 2,457 152,236
Kerr-McGee Corp 1,875 82,500
======================================================================================================
234,736
3.44 PHARMACEUTICALS
Barr Laboratories(a) 2,550 172,252
Forest Laboratories(a) 1,630 78,044
Teva Pharmaceutical Industries Ltd Sponsored ADR
Representing Ord Shrs 5,400 309,636
======================================================================================================
559,932
0.84 RESTAURANTS
Starbucks Corp(a) 5,000 136,650
======================================================================================================
2.68 SEMICONDUCTOR EQUIPMENT
KLA-Tencor Corp(a) 5,000 258,250
Teradyne Inc(a) 10,800 177,660
======================================================================================================
435,910
7.20 SEMICONDUCTORS
Altera Corp(a) 14,325 275,613
Linear Technology 6,870 253,366
Maxim Integrated Products 5,685 222,170
Microchip Technology 12,425 327,523
Xilinx Inc(a) 3,600 94,608
======================================================================================================
1,173,280
1.50 SOFT DRINKS
Pepsi Bottling Group 11,150 245,077
======================================================================================================
1.61 SPECIALTY STORES
Bed Bath & Beyond(a) 6,745 261,908
======================================================================================================
2.11 SYSTEMS SOFTWARE
Symantec Corp(a) 3,200 149,664
VERITAS Software(a) 6,300 194,040
======================================================================================================
343,704
0.65 TRADING COMPANIES & DISTRIBUTORS
Fastenal Co 2,775 105,450
======================================================================================================
2.02 TRUCKING
C.H. Robinson Worldwide 8,901 328,625
======================================================================================================
TOTAL COMMON STOCKS & WARRANTS
(COST $13,530,885) 15,275,195
======================================================================================================
6.45 SHORT-TERM INVESTMENTS -- INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund(e)
0.949% (Cost $1,050,344) 1,050,344 1,050,344
======================================================================================================
100.23 TOTAL INVESTMENTS AT VALUE
(COST $14,581,229) 16,325,539
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
(0.23) OTHER ASSETS LESS LIABILITIES $ (37,397)
======================================================================================================
100.00 NET ASSETS AT VALUE $ 16,288,142
======================================================================================================
S&P 500 INDEX FUND
95.17 COMMON STOCKS(g)
0.23 ADVERTISING
Interpublic Group of Cos 8,136 $ 112,277
Monster Worldwide(a) 2,300 61,065
Omnicom Group 3,943 291,309
======================================================================================================
464,651
1.70 AEROSPACE & DEFENSE
Boeing Co 17,456 578,143
General Dynamics 4,134 327,992
Goodrich Corp 2,410 55,430
Honeywell International 17,836 504,402
Lockheed Martin 9,356 489,693
Northrop Grumman 3,852 355,308
Raytheon Co 8,547 262,393
Rockwell Collins 3,737 97,274
United Technologies 9,706 730,182
======================================================================================================
3,400,817
0.06 AGRICULTURAL PRODUCTS
Monsanto Co 5,470 125,810
======================================================================================================
0.94 AIR FREIGHT & COURIERS
FedEx Corp 6,232 401,278
United Parcel Service Class B Shrs 23,400 1,476,072
======================================================================================================
1,877,350
0.15 AIRLINES
Delta Air Lines 2,598 30,916
Southwest Airlines 16,166 265,284
======================================================================================================
296,200
0.24 ALUMINUM
Alcoa Inc 17,600 488,752
======================================================================================================
0.12 APPAREL, ACCESSORIES & LUXURY GOODS
Jones Apparel Group(a) 2,700 78,165
Liz Claiborne 2,200 75,746
VF Corp 2,217 84,534
======================================================================================================
238,445
0.36 APPAREL RETAIL
Gap Inc 18,494 332,707
Limited Brands 10,858 181,437
TJX Cos 10,592 206,014
======================================================================================================
720,158
0.32 APPLICATION SOFTWARE
Autodesk Inc 2,300 34,408
Citrix Systems(a) 3,400 61,710
Compuware Corp(a) 7,900 40,685
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Intuit Inc(a) 4,300 $ 184,986
Mercury Interactive(a) 1,800 70,848
Parametric Technology(a) 5,536 17,660
PeopleSoft Inc(a) 7,647 127,475
Siebel Systems(a) 10,200 95,676
======================================================================================================
633,448
0.19 AUTO PARTS & EQUIPMENT
Dana Corp 3,107 47,848
Delphi Corp 11,630 97,692
Johnson Controls 1,812 175,057
Snap-On Inc 1,200 33,984
Visteon Corp 2,742 17,357
======================================================================================================
371,938
0.43 AUTOMOBILE MANUFACTURERS
Ford Motor 38,117 421,574
General Motors 11,664 436,584
======================================================================================================
858,158
1.32 BIOTECHNOLOGY
Amgen Inc(a) 26,232 1,825,223
Applera Corp-Applied Biosystems Group 4,300 93,095
Biogen Inc(a) 3,100 119,102
Chiron Corp(a) 3,900 177,840
Genzyme Corp-General Division(a) 4,500 226,980
MedImmune Inc(a) 5,200 203,788
======================================================================================================
2,646,028
0.47 BREWERS
Adolph Coors Class B Shrs 800 41,104
Anheuser-Busch Cos 17,344 898,766
======================================================================================================
939,870
0.34 BROADCASTING -- RADIO/TV
Clear Channel Communications(a) 12,803 524,283
Univision Communications Class A Shrs(a) 4,770 148,824
======================================================================================================
673,107
0.19 BUILDING PRODUCTS
American Standard(a) 1,500 114,600
Crane Co 1,250 31,012
Masco Corp 9,916 241,653
======================================================================================================
387,265
0.71 CABLE & SATELLITE OPERATORS
Comcast Corp Class A Shrs(a) 46,842 1,420,249
======================================================================================================
0.14 CASINOS & GAMING
Harrah's Entertainment(a) 2,314 101,006
International Game Technology 7,200 183,240
======================================================================================================
284,246
0.03 COMMERCIAL PRINTING
R.R. Donnelley & Sons 2,320 61,387
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
0.92 COMMUNICATIONS EQUIPMENT
ADC Telecommunications(a) 16,700 $ 36,406
Andrew Corp(a) 3,213 34,990
CIENA Corp(a) 9,800 56,938
Comverse Technology(a) 3,900 57,525
Corning Inc(a) 26,305 214,123
JDS Uniphase(a) 29,800 89,698
Lucent Technologies(a) 86,099 151,534
Motorola Inc 48,208 435,800
QUALCOMM Inc 16,400 614,344
Scientific-Atlanta Inc 3,122 94,565
Tellabs Inc(a) 8,538 57,461
======================================================================================================
1,843,384
0.21 COMPUTER & ELECTRONICS RETAIL
Best Buy(a) 6,700 292,455
Circuit City Stores 4,328 39,731
RadioShack Corp 3,528 93,739
======================================================================================================
425,925
3.29 COMPUTER HARDWARE
Apple Computer(a) 7,636 160,738
Dell Inc(a) 53,412 1,798,916
Gateway Inc(a) 6,700 34,237
Hewlett-Packard Co 63,514 1,344,591
International Business Machines 35,976 2,923,050
NCR Corp(a) 2,000 55,140
Sun Microsystems(a) 67,216 251,388
======================================================================================================
6,568,060
0.39 COMPUTER STORAGE & PERIPHERALS
EMC Corp(a) 45,504 484,163
Lexmark International Class A Shrs(a) 2,700 173,259
Network Appliance(a) 7,100 113,458
======================================================================================================
770,880
0.04 CONSTRUCTION & ENGINEERING
Fluor Corp 1,712 60,999
McDermott International(a) 1,400 8,274
======================================================================================================
69,273
0.51 CONSTRUCTION MACHINERY, FARM
MACHINERY & HEAVY TRUCKS
Caterpillar Inc 7,144 482,006
Cummins Inc 900 41,697
Deere & Co 4,966 252,173
Navistar International(a) 1,400 54,628
PACCAR Inc 2,400 185,280
=======================================================================================================
1,015,784
0.04 CONSTRUCTION MATERIALS
Vulcan Materials 2,100 84,462
=======================================================================================================
1.73 CONSUMER FINANCE
Capital One Financial 4,700 225,177
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Countrywide Financial 2,715 $ 181,389
Fannie Mae 20,397 1,306,224
Freddie Mac 14,356 701,291
MBNA Corp 26,614 593,226
Providian Financial(a) 6,038 58,267
SLM Corp 9,300 385,578
======================================================================================================
3,451,152
0.23 CRUISE LINES
Carnival Corp Paired Certificates SBI 13,100 449,461
======================================================================================================
0.83 DATA PROCESSING SERVICES
Automatic Data Processing 12,484 462,907
Concord EFS(a) 10,100 137,461
First Data 15,520 586,035
Fiserv Inc(a) 4,050 158,112
Paychex Inc 7,800 253,734
Sabre Holdings Class A Shrs 2,937 67,786
======================================================================================================
1,666,035
0.59 DEPARTMENT STORES
Dillard's Inc Class A Shrs 1,715 25,845
Federated Department Stores 3,938 157,559
J.C. Penney Holding 5,564 103,379
Kohl's Corp(a) 7,100 421,385
May Department Stores 6,028 148,952
Nordstrom Inc 2,800 59,108
Sears Roebuck & Co 6,357 258,730
======================================================================================================
1,174,958
0.05 DISTILLERS & VINTNERS
Brown-Forman Corp Class B Shrs 1,300 101,270
======================================================================================================
7.11 DIVERSIFIED BANKS
AmSouth Bancorp 7,350 159,274
Bank of America 31,189 2,575,276
Bank of New York 16,094 484,751
Bank One 23,743 939,273
BB&T Corp 11,580 404,142
Charter One Financial 4,663 151,641
Comerica Inc 3,603 174,673
Fifth Third Bancorp 11,950 657,370
First Tennessee National 2,600 111,540
FleetBoston Financial 21,910 681,182
Golden West Financial 3,145 259,777
Huntington Bancshares 4,741 96,906
KeyCorp 8,788 236,485
Marshall & Ilsley 4,700 147,204
Mellon Financial 8,984 271,766
National City 12,780 421,101
North Fork Bancorp 3,300 115,665
Northern Trust 4,600 200,836
PNC Financial Services Group 5,900 288,805
Regions Financial 4,600 166,060
SouthTrust Corp 7,100 203,486
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
SunTrust Banks 5,838 $ 355,534
Synovus Financial 6,286 147,910
Union Planters 4,100 131,774
US Bancorp 39,930 979,084
Wachovia Corp 27,990 1,222,883
Washington Mutual 19,341 763,583
Wells Fargo & Co 34,866 1,761,779
Zions Bancorp 1,900 106,096
======================================================================================================
14,215,856
0.87 DIVERSIFIED CHEMICALS
Dow Chemical 19,007 670,947
E.I. du Pont de Nemours & Co 20,722 910,525
Rohm & Haas 4,576 161,853
======================================================================================================
1,743,325
0.35 DIVERSIFIED COMMERCIAL SERVICES
Cintas Corp 3,500 144,760
Convergys Corp(a) 3,100 52,297
Deluxe Corp 1,111 49,328
Ecolab Inc 5,500 135,905
Equifax Inc 2,921 68,030
H&R Block 3,730 158,115
IMS Health 5,012 96,932
======================================================================================================
705,367
4.87 DIVERSIFIED FINANCIAL SERVICES
Ambac Financial Group 2,200 144,914
American Express 27,015 1,193,253
Citigroup Inc 107,108 4,798,438
Franklin Resources 5,300 230,285
Goldman Sachs Group 9,800 853,972
JP Morgan Chase & Co 42,303 1,482,720
MBIA Inc 3,018 152,771
Moody's Corp 3,124 161,573
Prudential Financial 11,400 405,612
State Street 6,912 317,261
======================================================================================================
9,740,799
0.08 DIVERSIFIED METALS & MINING
Freeport-McMoran Copper & Gold Class B Shrs 3,027 81,093
Phelps Dodge(a) 1,889 79,697
======================================================================================================
160,790
0.44 DRUG RETAIL
CVS Corp 8,226 246,698
Walgreen Co 21,346 638,672
======================================================================================================
885,370
0.12 EDUCATION SERVICES
Apollo Group Class A Shrs(a) 3,600 233,136
======================================================================================================
2.29 ELECTRIC UTILITIES
Allegheny Energy 2,600 21,502
Ameren Corp 3,314 138,393
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
American Electric Power 8,203 $ 230,176
Calpine Corp(a) 7,900 45,109
CenterPoint Energy 6,340 51,164
Cinergy Corp 3,622 123,220
CMS Energy 3,000 19,500
Consolidated Edison 4,654 184,810
Constellation Energy Group 3,421 114,261
Dominion Resources 6,457 388,066
DTE Energy 3,520 125,699
Duke Energy 18,772 329,449
Edison International(a) 6,753 110,817
Entergy Corp 4,734 243,848
Exelon Corp 6,757 388,325
FirstEnergy Corp 6,205 214,010
FPL Group 3,819 235,518
NiSource Inc 5,501 106,169
PG&E Corp(a) 8,561 183,633
Pinnacle West Capital 1,900 65,208
PPL Corp 3,523 139,476
Progress Energy 5,014 204,270
Public Service Enterprise Group 4,732 192,829
Southern Co 14,996 426,486
TECO Energy 3,700 45,880
TXU Corp 6,662 134,373
Xcel Energy 8,340 120,763
======================================================================================================
4,582,954
0.44 ELECTRICAL COMPONENTS & EQUIPMENT
American Power Conversion(a) 4,100 71,463
Cooper Industries Ltd Class A Shrs 1,917 84,981
Emerson Electric 8,791 472,077
Molex Inc 3,975 110,982
Power-One Inc(a) 1,700 18,003
Rockwell Automation 3,837 99,148
Thomas & Betts(a) 1,200 18,312
======================================================================================================
874,966
0.37 ELECTRONIC EQUIPMENT MANUFACTURERS
Agilent Technologies(a) 9,859 214,236
Jabil Circuit(a) 4,100 94,505
Millipore Corp(a) 1,000 44,490
PerkinElmer Inc 2,600 38,636
Sanmina-SCI Corp(a) 10,600 84,164
Solectron Corp(a) 17,300 88,403
Symbol Technologies 4,750 60,848
Tektronix Inc(a) 1,800 38,034
Thermo Electron(a) 3,321 73,892
======================================================================================================
737,208
0.04 EMPLOYMENT SERVICES
Robert Half International(a) 3,500 75,985
======================================================================================================
0.17 ENVIRONMENTAL SERVICES
Allied Waste Industries(a) 4,400 53,328
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Waste Management 12,353 $ 295,113
======================================================================================================
348,441
0.03 FOOD DISTRIBUTORS
SUPERVALU Inc 2,800 65,940
======================================================================================================
0.32 FOOD RETAIL
Albertson's Inc 7,666 144,581
Kroger Co(a) 15,734 266,691
Safeway Inc(a) 9,200 196,420
Winn-Dixie Stores 2,921 33,475
======================================================================================================
641,167
0.16 FOOTWEAR
NIKE Inc Class B Shrs 5,491 284,104
Reebok International Ltd(a) 1,200 39,480
======================================================================================================
323,584
0.19 FOREST PRODUCTS
Louisiana-Pacific Corp(a) 2,215 26,912
Plum Creek Timber 3,800 103,208
Weyerhaeuser Co 4,531 255,050
======================================================================================================
385,170
0.15 GAS UTILITIES
KeySpan Corp 3,300 111,375
Nicor Inc 900 32,652
People's Energy 800 32,792
Sempra Energy 4,318 120,170
======================================================================================================
296,989
0.69 GENERAL MERCHANDISE STORES
Big Lots(a) 2,429 37,431
Costco Wholesale(a) 9,480 351,234
Dollar General 6,897 126,905
Family Dollar Stores 3,600 135,036
Target Corp 18,972 727,007
======================================================================================================
1,377,613
0.15 GOLD
Newmont Mining 8,322 300,424
======================================================================================================
0.18 HEALTH CARE DISTRIBUTORS
McKesson Corp 5,986 193,108
Quest Diagnostics(a) 2,200 131,472
Quintiles Transnational(a) 2,500 34,375
======================================================================================================
358,955
1.86 HEALTH CARE EQUIPMENT
Baxter International 12,468 344,241
Becton Dickinson & Co 5,334 195,384
Biomet Inc 5,361 158,739
Boston Scientific(a) 8,556 540,996
C.R. Bard 1,100 75,416
Guidant Corp 6,394 301,925
Medtronic Inc 25,416 1,308,924
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
St Jude Medical(a) 3,726 $ 199,900
Stryker Corp 4,100 313,732
Waters Corp(a) 2,600 82,446
Zimmer Holdings(a) 4,110 196,499
======================================================================================================
3,718,202
0.33 HEALTH CARE FACILITIES
HCA Inc 10,690 376,823
Health Management Associates Class A Shrs 5,000 99,850
Manor Care(a) 1,900 54,150
Tenet Healthcare(a) 9,750 134,355
======================================================================================================
665,178
0.02 HEALTH CARE SUPPLIES
Bausch & Lomb 1,100 46,497
======================================================================================================
0.04 HOME FURNISHINGS
Leggett & Platt 4,000 88,560
======================================================================================================
1.18 HOME IMPROVEMENT RETAIL
Home Depot 47,790 1,491,048
Lowe's Cos 16,260 773,326
Sherwin-Williams Co 3,024 90,720
======================================================================================================
2,355,094
0.12 HOMEBUILDING
Cavco Industries(a) 65 1,251
Centex Corp 1,300 94,341
KB HOME 1,000 56,610
Pulte Homes 1,278 78,111
======================================================================================================
230,313
0.42 HOTELS & RESORTS
Cendant Corp(a) 21,179 380,163
Hilton Hotels 7,835 114,391
Marriott International Class A Shrs 4,868 200,075
Starwood Hotels & Resorts Worldwide Paired Certificates SBI 4,200 136,920
======================================================================================================
831,549
0.13 HOUSEHOLD APPLIANCES
Black & Decker 1,613 65,907
Maytag Corp 1,613 41,051
Stanley Works 1,812 51,334
Whirlpool Corp 1,400 90,692
======================================================================================================
248,984
1.85 HOUSEHOLD PRODUCTS
Clorox Co 4,536 196,817
Colgate-Palmolive Co 11,188 610,865
Kimberly-Clark Corp 10,576 511,878
Procter & Gamble 26,982 2,370,908
======================================================================================================
3,690,468
0.17 HOUSEWARES & SPECIALTIES
American Greetings Class A Shrs(a) 1,410 25,112
Fortune Brands 3,024 168,165
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Newell Rubbermaid 5,753 $ 135,943
Tupperware Corp 1,200 18,612
======================================================================================================
347,832
2.55 HYPERMARKETS & SUPER CENTERS
Wal-Mart Stores 91,160 5,096,756
======================================================================================================
3.98 INDUSTRIAL CONGLOMERATES
General Electric 208,047 5,916,857
Textron Inc 2,808 121,923
3M Co 8,168 1,145,154
Tyco International Ltd 41,523 772,328
======================================================================================================
7,956,262
0.22 INDUSTRIAL GASES
Air Products & Chemicals 4,744 220,501
Praxair Inc 3,422 221,267
======================================================================================================
441,768
0.72 INDUSTRIAL MACHINERY
Danaher Corp 3,200 231,040
Dover Corp 4,246 155,446
Eaton Corp 1,511 127,181
Illinois Tool Works 6,387 444,855
Ingersoll-Rand Co Class A Shrs 3,523 191,088
ITT Industries 1,917 127,864
Pall Corp 2,518 56,831
Parker Hannifin 2,416 111,378
======================================================================================================
1,445,683
0.36 INSURANCE BROKERS
Aon Corp 6,515 156,686
Marsh & McLennan 11,136 552,568
======================================================================================================
709,254
3.90 INTEGRATED OIL & GAS
Amerada Hess 1,913 89,854
ChevronTexaco Corp 22,218 1,602,140
ConocoPhillips 14,134 739,774
Exxon Mobil 139,070 4,948,111
Marathon Oil 6,489 167,027
Occidental Petroleum 7,847 256,518
======================================================================================================
7,803,424
2.91 INTEGRATED TELECOMMUNICATION SERVICES
ALLTEL Corp 6,470 302,731
AT&T Corp 16,319 346,942
BellSouth Corp 38,402 978,099
CenturyTel Inc 3,000 102,870
Citizens Communications(a) 5,900 69,915
Qwest Communications International(a) 35,337 140,995
SBC Communications 69,172 1,615,858
Sprint Corp 18,664 263,536
Verizon Communications 57,215 1,994,515
======================================================================================================
5,815,461
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
0.35 INTERNET RETAIL
eBay Inc(a) 6,600 $ 707,520
======================================================================================================
0.20 INTERNET SOFTWARE & SERVICES
Yahoo! Inc(a) 12,600 392,238
======================================================================================================
1.57 INVESTMENT ADVISER/BROKER DEALER SERVICES
Bear Stearns 2,050 137,350
Charles Schwab 28,083 292,344
Federated Investors Class B Shrs 2,300 66,102
Janus Capital Group 5,000 87,500
Lehman Brothers Holdings 5,000 316,350
Merrill Lynch & Co 19,338 1,051,407
Morgan Stanley 22,678 1,075,844
T. Rowe Price Group 2,500 101,475
======================================================================================================
3,128,372
0.31 IT CONSULTING & OTHER SERVICES
Computer Sciences(a) 3,902 158,304
Electronic Data Systems 10,000 222,700
SunGard Data Systems(a) 5,900 154,816
Unisys Corp(a) 6,825 83,675
======================================================================================================
619,495
0.28 LEISURE PRODUCTS
Brunswick Corp 1,914 51,582
Electronic Arts(a) 3,000 252,000
Hasbro Inc 3,577 67,426
Mattel Inc 9,191 178,581
======================================================================================================
549,589
0.82 LIFE & HEALTH INSURANCE
AFLAC Inc 10,700 343,256
Jefferson-Pilot Corp 2,922 128,568
John Hancock Financial Services 6,000 195,900
Lincoln National 3,734 139,428
MetLife Inc 15,800 437,976
Principal Financial Group 6,800 221,680
Torchmark Corp 2,420 98,349
UnumProvident Corp 6,030 81,887
======================================================================================================
1,647,044
0.68 MANAGED HEALTH CARE
Aetna Inc 3,198 197,061
Anthem Inc(a) 2,900 218,979
Humana Inc(a) 3,323 58,219
UnitedHealth Group 12,296 640,499
WellPoint Health Networks(a) 3,000 250,950
======================================================================================================
1,365,708
0.03 METAL & GLASS CONTAINERS
Ball Corp 1,200 59,640
======================================================================================================
0.15 MOTORCYCLE MANUFACTURERS
Harley-Davidson Inc 6,300 295,344
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
1.98 MOVIES & ENTERTAINMENT
AOL Time Warner(a) 93,654 $ 1,445,081
Viacom Inc Class B Shrs(a) 36,506 1,588,741
Walt Disney 42,529 932,236
=======================================================================================================
3,966,058
2.12 MULTI-LINE INSURANCE
American International Group 54,319 3,487,280
CIGNA Corp 2,947 137,861
Cincinnati Financial 3,345 131,458
Hartford Financial Services Group 5,856 305,625
Loews Corp 3,852 177,192
=======================================================================================================
4,239,416
0.04 MULTI-UTILITIES
AES Corp(a) 12,800 80,512
=======================================================================================================
0.16 NATURAL GAS PIPELINES
Dynegy Inc Class A Shrs(a) 7,750 24,567
El Paso 12,485 87,894
Kinder Morgan 2,500 133,750
Williams Cos 10,763 68,345
=======================================================================================================
314,556
1.46 NETWORKING EQUIPMENT
Avaya Inc(a) 7,958 76,397
Cisco Systems(a) 146,064 2,851,169
=======================================================================================================
2,927,566
0.09 OFFICE ELECTRONICS
Xerox Corp(a) 16,428 177,422
=======================================================================================================
0.16 OFFICE SERVICES & SUPPLIES
Avery Dennison 2,314 124,863
Pitney Bowes 4,890 186,309
=======================================================================================================
311,172
0.19 OIL & GAS DRILLING
Nabors Industries Ltd(a) 3,000 107,400
Noble Corp(a) 2,800 92,036
Rowan Cos(a) 1,912 41,968
Transocean Inc(a) 6,640 129,945
======================================================================================================
371,349
0.54 OIL & GAS EQUIPMENT & SERVICES
Baker Hughes 6,994 219,682
BJ Services(a) 3,300 113,025
Halliburton Co 9,096 201,658
Schlumberger Ltd 12,125 546,474
======================================================================================================
1,080,839
0.60 OIL & GAS EXPLORATION & PRODUCTION
Anadarko Petroleum 5,180 226,884
Apache Corp 3,402 210,788
Burlington Resources 4,225 195,068
Devon Energy 4,818 228,229
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
EOG Resources 2,400 $ 93,072
Kerr-McGee Corp 2,116 93,104
Unocal Corp 5,342 156,467
======================================================================================================
1,203,612
0.05 OIL & GAS REFINING & MARKETING & TRANSPORTATION
Ashland Inc 1,400 45,906
Sunoco Inc 1,600 59,200
=====================================================================================================
105,106
1.38 PACKAGED FOODS & MEATS
Archer-Daniels-Midland Co 13,406 176,155
Campbell Soup 8,500 205,275
ConAgra Foods 11,166 251,570
General Mills 7,708 353,566
Hershey Foods 2,694 196,150
H.J. Heinz 7,341 250,034
Kellogg Co 8,470 290,775
McCormick & Co Non-Voting Shrs 2,900 74,124
Sara Lee 16,130 301,470
SYSCO Corp 13,548 408,201
Wm. Wrigley Jr. 4,652 252,557
=====================================================================================================
2,759,877
0.13 PAPER PACKAGING
Bemis Inc 1,100 49,159
Pactiv Corp(a) 3,324 65,649
Sealed Air(a) 1,719 82,048
Temple-Inland Inc 1,130 52,421
=====================================================================================================
249,277
0.32 PAPER PRODUCTS
Boise Cascade 1,200 29,748
Georgia-Pacific Corp 5,232 114,319
International Paper 9,992 390,887
MeadWestvaco Corp 4,189 101,416
=====================================================================================================
636,370
0.51 PERSONAL PRODUCTS
Alberto-Culver Co Class B Shrs 1,200 66,756
Avon Products 4,874 304,089
Gillette Co 21,236 653,219
=====================================================================================================
1,024,064
9.16 PHARMACEUTICALS
Abbott Laboratories 32,504 1,275,782
Allergan Inc 2,700 217,296
AmerisourceBergen Corp 2,300 145,107
Bristol-Myers Squibb 40,306 1,056,017
Cardinal Health 9,328 510,708
Eli Lilly & Co 23,428 1,542,500
Forest Laboratories(a) 7,600 363,888
Johnson & Johnson 61,802 3,200,726
King Pharmaceuticals(a) 4,966 74,788
Merck & Co 46,674 2,580,139
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Pfizer Inc 164,354 $ 5,482,849
Schering-Plough Corp 30,562 518,943
Watson Pharmaceuticals(a) 2,200 87,868
Wyeth 27,654 1,260,469
======================================================================================================
18,317,080
0.08 PHOTOGRAPHIC PRODUCTS
Eastman Kodak 6,013 166,139
======================================================================================================
1.12 PROPERTY & CASUALTY INSURANCE
ACE Ltd 5,500 181,445
Allstate Corp 14,664 557,672
Chubb Corp 3,859 250,063
MGIC Investment 2,075 115,163
Progressive Corp 4,557 300,716
SAFECO Corp 2,920 108,712
St Paul 4,782 168,183
Travelers Property Casualty Class B Shrs 20,978 338,585
XL Capital Ltd Class A Shrs 2,850 226,575
======================================================================================================
2,247,114
0.67 PUBLISHING & PRINTING
Dow Jones & Co 1,713 72,511
Gannett Co 5,586 429,172
Knight-Ridder Inc 1,712 117,495
McGraw-Hill Cos 3,928 238,744
Meredith Corp 1,000 45,480
New York Times Class A Shrs 3,126 139,420
Tribune Co 6,434 303,813
======================================================================================================
1,346,635
0.42 RAILROADS
Burlington Northern Santa Fe 7,709 212,460
CSX Corp 4,443 139,066
Norfolk Southern 8,153 156,782
Union Pacific 5,262 320,666
======================================================================================================
828,974
0.37 REAL ESTATE INVESTMENT TRUSTS
Apartment Investment & Management Class A Shrs 2,000 78,820
Equity Office Properties Trust 8,400 233,016
Equity Residential SBI 5,700 159,030
Prologis SBI 3,700 101,935
Simon Property Group 3,900 165,165
======================================================================================================
737,966
0.57 RESTAURANTS
Darden Restaurants 3,481 65,130
McDonald's Corp 26,504 609,857
Starbucks Corp(a) 8,100 221,373
Wendy's International 2,318 68,126
Yum! Brands(a) 6,042 180,837
======================================================================================================
1,145,323
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
0.53 SEMICONDUCTOR EQUIPMENT
Applied Materials(a) 34,504 $ 672,828
KLA-Tencor Corp(a) 3,924 202,675
Novellus Systems(a) 3,100 111,011
Teradyne Inc(a) 3,800 62,510
======================================================================================================
1,049,024
2.97 SEMICONDUCTORS
Advanced Micro Devices(a) 7,240 52,852
Altera Corp(a) 8,000 153,920
Analog Devices(a) 7,600 288,420
Applied Micro Circuits(a) 6,300 36,099
Broadcom Corp Class A Shrs(a) 5,800 117,566
Intel Corp 135,996 3,393,100
Linear Technology 6,500 239,720
LSI Logic(a) 7,840 72,990
Maxim Integrated Products 6,721 262,657
Micron Technology(a) 12,660 185,342
National Semiconductor(a) 3,823 85,444
NVIDIA Corp(a) 3,300 63,096
PMC-Sierra Inc(a) 3,500 42,910
QLogic Corp(a) 2,000 84,300
Texas Instruments 36,024 679,773
Xilinx Inc(a) 7,000 183,960
======================================================================================================
5,942,149
2.12 SOFT DRINKS
Coca-Cola Co 51,224 2,303,543
Coca-Cola Enterprises 9,400 160,270
Pepsi Bottling Group 5,700 125,286
PepsiCo Inc 35,799 1,649,260
======================================================================================================
4,238,359
0.26 SPECIALTY CHEMICALS
Eastman Chemical 1,611 58,479
Englehard Corp 2,620 68,854
Great Lakes Chemical 1,000 21,800
Hercules Inc(a) 2,313 26,414
International Flavors & Fragrances 1,915 57,737
PPG Industries 3,517 198,605
Sigma-Aldrich Corp 1,514 86,253
======================================================================================================
518,142
0.48 SPECIALTY STORES
AutoNation Inc(a) 5,900 101,421
AutoZone Inc(a) 1,821 151,616
Bed Bath & Beyond(a) 6,100 236,863
Office Depot(a) 6,400 106,240
Staples Inc(a) 10,100 203,414
Tiffany & Co 3,000 103,080
Toys "R" Us(a) 4,410 49,172
======================================================================================================
951,806
0.08 STEEL
Allegheny Technologies 1,662 12,548
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Nucor Corp 1,612 $ 79,504
United States Steel 2,112 33,285
Worthington Industries 1,814 26,666
======================================================================================================
152,003
4.09 SYSTEMS SOFTWARE
Adobe Systems 4,840 158,171
BMC Software(a) 4,900 69,090
Computer Associates International 12,076 307,334
Microsoft Corp 223,440 5,898,816
Novell Inc(a) 7,649 27,154
Oracle Corp(a) 109,164 1,309,968
Symantec Corp(a) 3,100 144,987
VERITAS Software(a) 8,600 264,880
======================================================================================================
8,180,400
0.02 TIRES & RUBBER
Cooper Tire & Rubber 1,511 25,687
Goodyear Tire & Rubber 3,603 19,853
======================================================================================================
45,540
0.94 TOBACCO
Altria Group 42,192 1,688,102
R.J. Reynolds Tobacco Holdings 1,800 63,936
UST Inc 3,526 117,240
======================================================================================================
1,869,278
0.10 TRADING COMPANIES & DISTRIBUTORS
Genuine Parts 3,625 112,158
W.W. Grainger 1,926 94,759
======================================================================================================
206,917
0.02 TRUCKING
Ryder System 1,300 37,778
======================================================================================================
0.50 WIRELESS TELECOMMUNICATION SERVICES
AT&T Wireless Services(a) 56,491 481,868
Nextel Communications Class A Shrs(a) 21,400 390,764
Sprint Corp-PCS Group Series 1 Shrs(a) 21,282 130,884
======================================================================================================
1,003,516
TOTAL COMMON STOCKS (COST $202,106,413) 190,250,136
======================================================================================================
4.77 SHORT-TERM INVESTMENTS
0.30 US GOVERNMENT OBLIGATIONS
US Treasury Bills, 8/21/2003(h)(Amortized Cost $609,605) $ 610,000 609,704
======================================================================================================
4.47 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 7/31/2003 due 8/1/2003 at 1.000%,
repurchased at $8,932,248 (Collateralized by
Fannie Mae, Benchmark Notes, due 3/17/2006
at 2.375%, value $9,097,825) (Cost $8,932,000) $ 8,932,000 8,932,000
======================================================================================================
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $9,541,605) 9,541,704
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
99.94 TOTAL INVESTMENTS AT VALUE
(COST $211,648,018) $ 199,791,840
======================================================================================================
0.06 OTHER ASSETS LESS LIABILITIES 115,929
======================================================================================================
100.00 NET ASSETS AT VALUE $ 199,907,769
======================================================================================================
SMALL COMPANY GROWTH FUND
90.95 COMMON STOCKS
0.66 AEROSPACE & DEFENSE
Alliant Techsystems(a) 118,700 $ 6,516,630
======================================================================================================
0.61 AIR FREIGHT & COURIERS
UTI Worldwide 171,400 6,047,849
======================================================================================================
0.54 AIRLINES
AirTran Holdings(a) 414,300 5,398,329
======================================================================================================
0.91 APPAREL, ACCESSORIES & LUXURY GOODS
Aeropostale Inc(a) 181,200 4,738,380
Coach Inc(a) 80,500 4,266,500
======================================================================================================
9,004,880
1.59 APPAREL RETAIL
Abercrombie & Fitch Class A Shrs(a) 153,100 4,912,979
Chico's FAS(a) 217,100 5,894,265
Hot Topic(a) 171,600 4,959,240
======================================================================================================
15,766,484
2.62 APPLICATION SOFTWARE
Cognos Inc(a) 122,500 3,314,850
Documentum Inc(a) 139,600 2,394,140
FileNET Corp(a) 226,600 4,128,652
Jack Henry & Associates 285,380 5,333,752
Parametric Technology(a) 1,112,400 3,548,556
Portal Software(a) 1,260,800 4,148,032
SERENA Software(a) 170,100 3,213,189
======================================================================================================
26,081,171
6.62 BIOTECHNOLOGY
Bio-Rad Laboratories Class A Shrs(a) 52,700 2,951,200
Biotech HOLDRs Trust(a)(b) 54,200 7,310,496
Celgene Corp(a) 118,900 4,352,929
CV Therapeutics(a)(i) 150,700 5,378,483
Gen-Probe Inc(a) 105,200 5,786,000
IDEXX Laboratories(a) 125,400 5,074,938
ILEX Oncology(a) 271,700 4,534,673
Medicines Co(a) 213,300 5,791,095
Neurocrine Biosciences(a) 75,000 4,026,000
NPS Pharmaceuticals(a) 180,500 4,608,165
OSI Pharmaceuticals(a) 113,000 3,797,930
Regeneration Technologies(a) 360,300 5,404,500
Sepracor Inc(a) 112,600 2,730,550
Trimeris Inc(a)(c) 91,200 4,044,720
======================================================================================================
65,791,679
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
1.63 BROADCASTING -- RADIO/TV
Cumulus Media Class A Shrs(a) 295,700 $ 5,171,793
Lin TV Corp Class A Shrs(a) 229,300 4,994,154
Radio One Class D Shrs(a) 363,000 6,022,170
=======================================================================================================
16,188,117
1.71 CASINOS & GAMING
Alliance Gaming(a) 360,400 7,687,332
Mandalay Resort Group 108,600 3,774,936
Station Casinos(a) 191,800 5,562,200
=======================================================================================================
17,024,468
2.67 COMMUNICATIONS EQUIPMENT
ADTRAN Inc(a) 92,600 4,522,584
Centillium Communications(a) 427,500 3,830,400
Powerwave Technologies(a) 648,600 4,994,220
REMEC Inc(a) 404,700 3,889,167
Tekelec(a) 633,800 9,297,846
=======================================================================================================
26,534,217
0.64 COMPUTER STORAGE & PERIPHERALS
Avid Technology(a) 95,900 4,455,514
Hutchinson Technology(a) 68,000 1,952,960
=======================================================================================================
6,408,474
0.46 CONSUMER ELECTRONICS
Harman International Industries 55,100 4,606,360
=======================================================================================================
1.06 CONSUMER FINANCE
iDine Rewards Network(a) 321,900 4,696,521
Providian Financial(a) 605,700 5,845,005
=======================================================================================================
10,541,526
5.61 DIVERSIFIED BANKS
Cullen/Frost Bankers 187,600 6,869,912
Dime Community Bancshares 273,600 6,785,280
Greater Bay Bancorp(c) 195,500 3,829,845
Independence Community Bank 223,700 7,288,146
Investors Financial Services(c) 348,600 11,109,882
PrivateBancorp Inc 141,100 4,903,225
Silicon Valley Bancshares(a) 183,600 4,522,068
Southwest Bancorp of Texas(a) 186,700 6,627,850
Wintrust Financial 109,100 3,861,049
======================================================================================================
55,797,257
1.21 DIVERSIFIED COMMERCIAL SERVICES
Corporate Executive Board(a) 143,700 6,239,454
Corrections Corp of America(a) 233,900 5,770,313
======================================================================================================
12,009,767
0.42 DIVERSIFIED FINANCIAL SERVICES
Portfolio Recovery Associates(a)(c) 149,400 4,175,730
======================================================================================================
1.83 EDUCATION SERVICES
Career Education(a) 59,200 4,937,280
Corinthian Colleges(a) 143,600 7,841,996
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
ITT Educational Services(a) 136,830 $ 5,367,841
======================================================================================================
18,147,117
1.82 ELECTRICAL COMPONENTS & EQUIPMENT
Aeroflex Inc(a) 956,860 8,372,525
Benchmark Electronics(a) 149,200 5,938,160
Microsemi Corp(a) 219,600 3,746,376
======================================================================================================
18,057,061
1.24 ELECTRONIC EQUIPMENT MANUFACTURERS
Cognex Corp(a) 239,444 6,824,154
Plexus Corp(a) 379,800 5,480,514
======================================================================================================
12,304,668
1.78 EMPLOYMENT SERVICES
FTI Consulting(a) 165,600 3,643,200
Heidrick & Struggles International(a) 415,650 7,448,448
Resources Connection(a) 251,600 6,589,404
======================================================================================================
17,681,052
0.47 ENVIRONMENTAL SERVICES
Stericycle Inc(a) 103,200 4,657,416
======================================================================================================
1.48 FOOD DISTRIBUTORS
Performance Food Group(a) 202,300 7,642,894
United Natural Foods(a) 232,700 7,113,639
======================================================================================================
14,756,533
0.91 GENERAL MERCHANDISE STORES
Fred's Inc Class A Shrs 218,400 6,394,752
Ross Stores 57,600 2,632,320
======================================================================================================
9,027,072
1.64 HEALTH CARE DISTRIBUTORS
DaVita Inc(a) 133,400 3,735,200
Henry Schein(a) 105,800 6,182,952
Renal Care Group(a) 89,700 3,208,569
United Surgical Partners International(a) 120,800 3,133,552
======================================================================================================
16,260,273
4.40 HEALTH CARE EQUIPMENT
Advanced Neuromodulation Systems(a) 189,150 7,777,848
ALARIS Medical Systems(a) 346,300 6,042,935
ArthroCare Corp(a) 247,175 4,140,182
Conceptus Inc(a)(c) 127,800 2,144,484
CTI Molecular Imaging(a)(c) 194,700 3,087,942
Integra LifeSciences Holdings(a) 187,500 4,689,375
ResMed Inc(a) 116,800 4,636,960
Varian Medical Systems(a) 42,300 2,595,528
VISX Inc(a)(c) 215,300 5,012,184
Wilson Greatbatch Technologies(a) 92,700 3,625,497
======================================================================================================
43,752,935
0.94 HEALTH CARE FACILITIES
Community Health Systems(a) 217,700 4,832,940
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Triad Hospitals(a) 147,800 $ 4,462,082
======================================================================================================
9,295,022
0.49 HEALTH CARE SERVICES
Fisher Scientific International(a) 128,900 4,872,420
======================================================================================================
0.78 HEALTH CARE SUPPLIES
Cooper Cos 92,300 3,235,115
INAMED Corp(a) 68,400 4,541,760
======================================================================================================
7,776,875
0.20 HOMEBUILDING
Ryland Group 31,200 2,024,568
======================================================================================================
0.80 INDUSTRIAL GASES
Airgas Inc 410,000 7,970,400
======================================================================================================
0.80 INDUSTRIAL MACHINERY
Kennametal Inc 206,200 7,938,700
======================================================================================================
2.32 INTERNET SOFTWARE & SERVICES
Ask Jeeves(a) 287,900 5,023,855
EarthLink Inc(a) 591,600 4,525,740
FreeMarkets Inc(a) 381,400 2,635,474
iPass Inc(a) 138,700 2,524,340
RSA Security(a) 340,930 4,159,346
webMethods Inc(a) 542,400 4,230,720
======================================================================================================
23,099,475
2.67 INVESTMENT ADVISER/BROKER DEALER SERVICES
Affiliated Managers Group(a) 106,100 6,941,062
Eaton Vance 314,800 10,533,208
Raymond James Financial 259,700 9,024,575
======================================================================================================
26,498,845
1.05 INVESTMENT COMPANIES
iShares Trust Russell 2000 Growth Index Fund 203,500 10,466,005
======================================================================================================
2.49 IT CONSULTING & OTHER SERVICES
BISYS Group(a) 258,600 4,279,830
Cognizant Technology Solutions Class A Shrs(a) 139,300 4,287,654
Manhattan Associates(a) 112,900 3,109,266
MAXIMUS Inc(a) 150,900 4,527,000
SRA International Class A Shrs(a) 243,299 8,510,599
======================================================================================================
24,714,349
0.58 LEISURE PRODUCTS
Leapfrog Enterprises Class A Shrs(a) 190,200 5,763,060
======================================================================================================
1.57 MANAGED HEALTH CARE
Mid Atlantic Medical Services(a) 121,400 6,601,732
Molina Healthcare(a) 218,900 5,187,930
Sierra Health Services(a) 143,200 3,769,024
======================================================================================================
15,558,686
2.73 NETWORKING EQUIPMENT
Extreme Networks(a) 923,500 5,651,820
Foundry Networks(a) 418,900 7,556,956
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
NetScreen Technologies(a) 435,300 $ 9,415,539
SafeNet Inc(a) 131,000 4,552,250
======================================================================================================
27,176,565
0.38 OFFICE ELECTRONICS
Zebra Technologies Class A Shrs(a) 48,500 3,762,630
======================================================================================================
1.45 OIL & GAS DRILLING
Patterson-UTI Energy(a) 237,800 6,563,280
Precision Drilling(a) 215,800 7,833,540
======================================================================================================
14,396,820
1.79 OIL & GAS EQUIPMENT & SERVICES
Key Energy Services(a) 605,600 5,638,136
Maverick Tube(a) 360,800 5,953,200
National-Oilwell Inc(a) 337,600 6,211,840
======================================================================================================
17,803,176
1.35 OIL & GAS EXPLORATION & PRODUCTION
Evergreen Resources(a) 125,700 6,251,061
Spinnaker Exploration(a) 330,200 7,214,870
======================================================================================================
13,465,931
0.52 PACKAGED FOODS & MEATS
American Italian Pasta Class A Shrs(a) 129,900 5,207,691
======================================================================================================
0.59 PERSONAL PRODUCTS
NBTY Inc(a) 236,800 5,837,120
======================================================================================================
3.34 PHARMACEUTICALS
Adolor Corp(a) 150,300 2,021,535
Andrx Group(a) 199,700 4,529,196
Connetics Corp(a) 225,700 4,098,712
Ligand Pharmaceuticals Class B Shrs(a) 313,500 4,022,205
Ligand Pharmaceuticals Class B Shrs(a)(j) 100,000 1,154,700
MGI Pharma(a) 186,400 7,154,032
Pharmaceutical Resources(a) 100,800 5,705,280
Taro Pharmaceutical Industries Ltd(a) 82,300 4,491,111
======================================================================================================
33,176,771
0.32 PHOTOGRAPHIC PRODUCTS
Pinnacle Systems(a) 381,200 3,141,088
======================================================================================================
0.40 PUBLISHING & PRINTING
Getty Images(a) 103,500 3,946,455
======================================================================================================
0.48 REAL ESTATE INVESTMENT TRUSTS
Novastar Financial(c) 68,800 4,798,800
======================================================================================================
0.29 REAL ESTATE MANAGEMENT & DEVELOPMENT
WCI Communities(a) 162,300 2,861,349
======================================================================================================
0.70 REINSURANCE
Platinum Underwriters Holdings Ltd 257,000 6,951,850
======================================================================================================
1.08 RESTAURANTS
P.F. Chang's China Bistro(a) 114,400 5,534,672
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
Panera Bread Class A Shrs(a) 126,000 $ 5,212,620
======================================================================================================
10,747,292
3.29 SEMICONDUCTOR EQUIPMENT
ATMI Inc(a) 178,400 4,597,368
Cymer Inc(a) 162,800 6,585,260
Entegris Inc(a) 520,200 7,449,264
MKS Instruments(a) 348,200 7,872,802
Varian Semiconductor Equipment Associates(a) 184,700 6,141,275
======================================================================================================
32,645,969
6.07 SEMICONDUCTORS
Artisan Components(a) 234,900 4,911,759
ChipPAC Inc Class A Shrs(a) 627,300 3,575,610
Exar Corp(a) 257,760 3,685,968
Integrated Circuit Systems(a) 283,100 8,507,155
International Rectifier(a) 139,800 3,858,480
OmniVision Technologies(a)(c) 75,200 3,052,368
Power Integrations(a) 288,200 8,308,806
QLogic Corp(a) 88,700 3,738,705
Skyworks Solutions(a)(c) 658,100 5,600,431
Vitesse Semiconductor(a) 1,325,200 8,547,540
Zoran Corp(a)(c) 241,400 6,544,354
======================================================================================================
60,331,176
3.08 SPECIALTY STORES
Guitar Center(a) 150,500 5,071,850
Hollywood Entertainment(a) 496,200 8,306,388
Linens 'n Things(a) 199,600 5,339,300
PETCO Animal Supplies(a) 225,500 5,657,795
Pier 1 Imports 335,500 6,240,300
======================================================================================================
30,615,633
1.62 SYSTEMS SOFTWARE
Borland Software(a) 437,200 4,065,960
Magma Design Automation(a) 210,800 4,205,460
Micromuse Inc(a) 574,700 4,126,346
Secure Computing Corp(a) 391,300 3,674,307
======================================================================================================
16,072,073
1.35 TRUCKING
Arkansas Best 130,100 3,599,867
J.B. Hunt Transport Services(a) 208,500 9,828,690
======================================================================================================
13,428,557
0.90 WIRELESS TELECOMMUNICATION SERVICES
Nextel Partners Class A Shrs(a)(c) 517,500 4,590,225
Western Wireless Class A Shrs(a) 295,300 4,326,145
======================================================================================================
8,916,370
TOTAL COMMON STOCKS (COST $754,039,141) 903,798,786
======================================================================================================
12.55 SHORT-TERM INVESTMENTS
0.00 US GOVERNMENT OBLIGATIONS
US Government Securities(d) (Cost $29,695) $ 29,695 29,695
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
4.93 COMMERCIAL PAPER -- TRADE RECEIVABLES
New Center Asset Trust, Series 1, Discount Notes, 1.130%
8/1/2003 (Amortized Cost $49,000,000) $ 49,000,000 $ 49,000,000
======================================================================================================
6.81 INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund(d)(e)
0.949% (Cost $67,718,082) 67,718,082 67,718,082
======================================================================================================
0.81 REPURCHASE AGREEMENTS
Repurchase Agreement with State Street
dated 7/31/2003 due 8/1/2003 at 1.000%,
repurchased at $8,005,222 (Collateralized by
Fannie Mae, Benchmark Notes, due 3/17/2006
at 2.375%, value $8,152,335) (Cost $8,005,000) $ 8,005,000 8,005,000
======================================================================================================
TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $124,752,777) 124,752,777
======================================================================================================
0.03 OPTIONS PURCHASED -- PUTS
0.03 BIOTECHNOLOGY
CV Therapeutics, 10/18/2003, $22.50 (Cost $257,040) 1,507 286,330
======================================================================================================
103.53 TOTAL INVESTMENTS AT VALUE
(COST $879,048,958) 1,028,837,893
======================================================================================================
(3.53) OTHER ASSETS LESS LIABILITIES (35,052,686)
======================================================================================================
100.00 NET ASSETS AT VALUE $ 993,785,207
======================================================================================================
VALUE EQUITY FUND
94.75 COMMON STOCKS
3.22 ADVERTISING
Interpublic Group of Cos 125,000 $ 1,725,000
Omnicom Group 20,000 1,477,600
======================================================================================================
3,202,600
1.95 AEROSPACE & DEFENSE
L-3 Communications Holdings(a) 11,100 544,788
United Technologies 18,600 1,399,278
======================================================================================================
1,944,066
1.62 ALUMINUM
Alcoa Inc 58,000 1,610,660
======================================================================================================
1.50 COMMUNICATIONS EQUIPMENT
Nokia Corp Sponsored ADR Representing Ord Shrs 97,400 1,490,220
======================================================================================================
3.32 COMPUTER HARDWARE
Hewlett-Packard Co 88,100 1,865,077
International Business Machines 17,700 1,438,125
======================================================================================================
3,303,202
0.90 CONSTRUCTION MACHINERY, FARM MACHINERY
& HEAVY TRUCKS
Navistar International(a) 22,900 893,558
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
1.93 CONSUMER FINANCE
Fannie Mae 30,000 $ 1,921,200
======================================================================================================
1.33 DATA PROCESSING SERVICES
First Data 35,000 1,321,600
======================================================================================================
9.89 DIVERSIFIED BANKS
Bank of America 34,864 2,878,720
Bank of New York 60,000 1,807,200
Mellon Financial 65,300 1,975,325
Wells Fargo & Co 63,000 3,183,390
======================================================================================================
9,844,635
0.93 DIVERSIFIED CHEMICALS
Olin Corp 49,300 920,924
======================================================================================================
0.94 DIVERSIFIED COMMERCIAL SERVICES
H&R Block 22,000 932,580
======================================================================================================
5.63 DIVERSIFIED FINANCIAL SERVICES
Citigroup Inc 79,026 3,540,365
JP Morgan Chase & Co 58,800 2,060,940
======================================================================================================
5,601,305
1.28 ELECTRICAL COMPONENTS & EQUIPMENT
SPX Corp(a) 27,000 1,271,430
======================================================================================================
1.17 ELECTRIC UTILITIES
Dominion Resources 19,400 1,165,940
======================================================================================================
1.94 ENVIRONMENTAL SERVICES
Waste Management 80,900 1,932,701
======================================================================================================
1.28 FOOD RETAIL
Kroger Co(a) 75,000 1,271,250
======================================================================================================
2.00 GENERAL MERCHANDISE STORES
Target Corp 52,000 1,992,640
======================================================================================================
1.30 HEALTH CARE DISTRIBUTORS
McKesson Corp 40,000 1,290,400
======================================================================================================
1.59 HEALTH CARE FACILITIES
HCA Inc 45,000 1,586,250
======================================================================================================
1.71 HOTELS & RESORTS
Cendant Corp(a) 95,000 1,705,250
======================================================================================================
0.79 HOUSEHOLD PRODUCTS
Procter & Gamble 9,000 790,830
======================================================================================================
3.98 INDUSTRIAL CONGLOMERATES
General Electric 70,700 2,010,708
Tyco International Ltd 105,000 1,953,000
======================================================================================================
3,963,708
1.37 INDUSTRIAL GASES
Praxair Inc 21,100 1,364,326
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
3.71 INDUSTRIAL MACHINERY
Danaher Corp 18,700 $ 1,350,140
Illinois Tool Works 22,515 1,568,170
Timken Co 50,400 771,120
======================================================================================================
3,689,430
2.63 INSURANCE BROKERS
Marsh & McLennan 52,700 2,614,974
======================================================================================================
2.70 INTEGRATED OIL & GAS
Exxon Mobil 75,600 2,689,848
======================================================================================================
2.52 INTEGRATED TELECOMMUNICATION SERVICES
SBC Communications 28,902 675,151
Verizon Communications 52,500 1,830,150
======================================================================================================
2,505,301
5.60 INVESTMENT ADVISER/BROKER DEALER SERVICES
Janus Capital Group 66,300 1,160,250
Merrill Lynch & Co 55,000 2,990,350
Morgan Stanley 30,000 1,423,200
======================================================================================================
5,573,800
1.03 IT CONSULTING & OTHER SERVICES
Ceridian Corp(a) 55,000 1,025,750
======================================================================================================
1.31 MANAGED HEALTH CARE
UnitedHealth Group 25,000 1,302,250
======================================================================================================
1.98 MOVIES & ENTERTAINMENT
Walt Disney 90,000 1,972,800
======================================================================================================
1.17 MULTI-LINE INSURANCE
American International Group 18,100 1,162,020
======================================================================================================
0.72 OIL & GAS EQUIPMENT & SERVICES
Baker Hughes 22,900 719,289
======================================================================================================
1.17 PACKAGED FOODS & MEATS
H.J. Heinz 34,100 1,161,446
======================================================================================================
0.85 PAPER PRODUCTS
International Paper 21,600 844,992
======================================================================================================
7.30 PHARMACEUTICALS
Bristol-Myers Squibb 41,600 1,089,920
Eli Lilly & Co 16,000 1,053,440
Merck & Co 39,200 2,166,976
Pfizer Inc 88,480 2,951,693
======================================================================================================
7,262,029
0.97 PHOTOGRAPHIC PRODUCTS
Eastman Kodak 35,000 967,050
======================================================================================================
1.82 PROPERTY & CASUALTY INSURANCE
ACE Ltd 55,000 1,814,450
======================================================================================================
</Table>
<Table>
<Caption>
SHARES,
CONTRACTS OR
PRINCIPAL
% DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------
1.95 PUBLISHING & PRINTING
McGraw-Hill Cos 32,000 $ 1,944,960
======================================================================================================
1.94 RESTAURANTS
McDonald's Corp 83,700 1,925,937
======================================================================================================
0.81 SEMICONDUCTOR EQUIPMENT
Applied Materials(a) 41,500 809,250
======================================================================================================
0.70 SPECIALTY CHEMICALS
Potash Corp of Saskatchewan 10,700 695,928
======================================================================================================
2.30 SYSTEMS SOFTWARE
Computer Associates International 90,000 2,290,500
======================================================================================================
TOTAL COMMON STOCKS (COST $81,166,303) 94,293,279
======================================================================================================
5.26 SHORT-TERM INVESTMENTS -- INVESTMENT COMPANIES
INVESCO Treasurer's Series Money Market Reserve Fund(e)
0.949% (Cost $5,233,482) 5,233,482 5,233,482
======================================================================================================
100.01 TOTAL INVESTMENTS AT VALUE
(COST $86,399,785) 99,526,761
======================================================================================================
(0.01) OTHER ASSETS LESS LIABILITIES (14,864)
======================================================================================================
100.00 NET ASSETS AT VALUE $ 99,511,897
======================================================================================================
(a) Security is non-income producing.
(b) HOLDRs - Holding Company Depositary Receipts.
(c) Loaned security, a portion or all of the security is on loan at July 31,
2003.
(d) All or a portion of the security is purchased with the cash collateral
received from securities on loan (Note 6).
(e) Security is an affiliated company (Note 5).
(f) DIAMONDS Trust Series 1 is a unit investment trust that issues securities
called "DIAMONDS". DIAMONDS represent an undivided ownership in a portfolio
of all the common stocks of the Dow Jones Industrial Average.
(g) All common stock securities have been designated as collateral for futures
contracts.
(h) Security has been designated as collateral for variation margin for futures
contracts.
(i) A portion of the security has been designated as collateral for written
options.
(j) The following are restricted and/or illiquid securities at July 31, 2003:
SCHEDULE OF RESTRICTED AND/OR ILLIQUID
SECURITIES
% OF
ACQUISITION ACQUISITION NET ASSETS
DESCRIPTION DATE COSTS AT VALUE
- --------------------------------------------------------------------------------
DYNAMICS FUND
Calient Networks, Pfd, Series D Shrs 12/8/00 $ 648,056 0.00%
================================================================================
SMALL COMPANY GROWTH FUND
Ligand Pharmaceuticals Class B Shrs(k) 7/3/03 $ 1,150,000 0.12%
================================================================================
(k) Fair value represents 90% of the security's publicly traded value.
FUTURES CONTRACTS
OPEN AT JULY 31, 2003
NUMBER OF FACE MARKET
POSITION CONTRACTS AMOUNT VALUE
- --------------------------------------------------------------------------------
S&P 500 Index Fund
S&P 500 Index
(Expires September 2003) Long 39 $ 9,750 $ 9,645,675
================================================================================
OPTION CONTRACTS
NUMBER OF EXPIRATION EXERCISE PREMIUM MARKET
CONTRACTS DATE PRICE RECEIVED VALUE
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
OPTIONS WRITTEN
Calls
CV Therapeutics (1,507) 8/16/03 $ 37.50 $ 57,887 $ (94,188)
================================================================================
See Notes to Financial Statements
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
DYNAMICS GROWTH
FUND FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a)(b) $ 3,263,889,021 $ 412,665,463
================================================================================
At Value(a)(b) $ 4,012,827,265 $ 477,568,191
Cash 402,997 0
Receivables:
Investment Securities Sold 36,210,345 19,224,995
Fund Shares Sold 14,147,875 539,088
Dividends and Interest 356,957 259,126
Foreign Tax Reclaims 89,468 0
Prepaid Expenses and Other Assets 587,162 91,030
================================================================================
TOTAL ASSETS 4,064,622,069 497,682,430
================================================================================
LIABILITIES
Payables:
Investment Securities Purchased 48,506,264 10,070,716
Fund Shares Repurchased 17,211,576 1,082,881
Securities Loaned 36,892,514 16,570,263
Accrued Distribution Expenses
Investor Class 817,426 99,316
Class A 2,093 399
Class B 1,120 100
Class C 11,550 2,643
Class K 17,014 818
Accrued Expenses and Other Payables 242,239 78,045
================================================================================
TOTAL LIABILITIES 103,701,796 27,905,181
================================================================================
NET ASSETS AT VALUE $ 3,960,920,273 $ 469,777,249
================================================================================
NET ASSETS
Paid-in Capital(c) $ 7,595,539,160 $ 1,993,982,129
Accumulated Undistributed Net Investment Loss (316,835) (109,493)
Accumulated Undistributed Net Realized Loss on
Investment Securities and Foreign Currency
Transactions (4,383,240,826) (1,588,998,115)
Net Appreciation of Investment Securities
and Foreign Currency Transactions 748,938,774 64,902,728
================================================================================
NET ASSETS AT VALUE, Applicable to Shares
Outstanding $ 3,960,920,273 $ 469,777,249
================================================================================
NET ASSETS AT VALUE:
Institutional Class $ 30,787,502 --
================================================================================
Investor Class $ 3,863,821,488 $ 462,977,848
================================================================================
Class A $ 6,108,350 $ 1,362,913
================================================================================
Class B $ 1,408,567 $ 137,145
================================================================================
Class C $ 13,536,648 $ 3,102,544
================================================================================
Class K $ 45,257,718 $ 2,196,799
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
(CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
DYNAMICS GROWTH
FUND FUND
(CONTINUED) (CONTINUED)
================================================================================
Shares Outstanding
Institutional Class 2,375,943 --
Investor Class 301,553,019 256,766,249
Class A 475,893 761,805
Class B 111,026 76,726
Class C 1,088,193 1,777,787
Class K 3,553,659 1,333,390
================================================================================
NET ASSET VALUE PER SHARE:
Institutional Class, Offering and Redemption
Price per Share $ 12.96 --
Investor Class, Offering and Redemption Price
per Share $ 12.81 $ 1.80
Class A
Redemption Price per Share $ 12.84 $ 1.79
Offering Price per Share (Maximum sales
charge of 5.50%) $ 13.59 $ 1.89
Class B, Offering and Redemption Price per
Share $ 12.69 $ 1.79
Class C, Offering and Redemption Price per
Share $ 12.44 $ 1.75
Class K, Offering and Redemption Price per
Share $ 12.74 $ 1.65
================================================================================
(a) Investment securities at cost and value at July 31, 2003 includes a
repurchase agreement of $937,000 for Dynamics Fund.
(b) Investment securities at cost and value at July 31, 2003 include
$36,562,536 and $16,407,099 of securities loaned for Dynamics and Growth
Funds, respectively (Note 6).
(c) The INVESCO Stock Funds, Inc. have 10 billion authorized shares of common
stock, par value of $0.01 per share. Of such shares, 2.4 billion have been
allocated to Dynamics Fund and 2.6 billion to Growth Fund: 200 million to
Dynamics Fund - Institutional Class, 1 billion to Dynamics Fund - Investor
Class, 300 million to each additional class of Dynamics Fund, 1 billion to
Growth Fund - Investor Class and 400 million to each additional class of
Growth Fund.
See Notes to Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
(CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
GROWTH & MID-CAP
INCOME FUND GROWTH FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost $ 43,008,449 $ 14,581,229
================================================================================
At Value $ 46,270,368 $ 16,325,539
Cash 0 61,654
Receivables:
Investment Securities Sold 399,261 15,996
Fund Shares Sold 93,724 7,368
Dividends and Interest 36,151 1,464
Prepaid Expenses and Other Assets 28,655 35,926
================================================================================
TOTAL ASSETS 46,828,159 16,447,947
================================================================================
LIABILITIES
Payables:
Investment Securities Purchased 695,590 126,386
Fund Shares Repurchased 26,765 520
Accrued Distribution Expenses
Investor Class 9,412 781
Class A 104 1,894
Class B 57 2,063
Class C 921 1,908
Class K 78 --
Accrued Expenses and Other Payables 9,444 26,253
================================================================================
TOTAL LIABILITIES 742,371 159,805
================================================================================
NET ASSETS AT VALUE $ 46,085,788 $ 16,288,142
================================================================================
NET ASSETS
Paid-in Capital(a) $ 135,817,691 $ 16,937,836
Accumulated Undistributed Net Investment
Loss (5,495) (117)
Accumulated Undistributed Net Realized Loss
on Investment Securities (92,988,327) (2,393,887)
Net Appreciation of Investment Securities 3,261,919 1,744,310
================================================================================
NET ASSETS AT VALUE, Applicable to Shares
Outstanding $ 46,085,788 $ 16,288,142
================================================================================
NET ASSETS AT VALUE:
Institutional Class -- $ 1,269,141
================================================================================
Investor Class $ 44,362,292 $ 3,797,647
================================================================================
Class A $ 350,549 $ 6,443,560
================================================================================
Class B $ 101,626 $ 2,469,969
================================================================================
Class C $ 1,066,750 $ 2,307,825
================================================================================
Class K $ 204,571 --
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
(CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
GROWTH & MID-CAP
INCOME FUND GROWTH FUND
(CONTINUED) (CONTINUED)
- --------------------------------------------------------------------------------
Shares Outstanding
Institutional Class -- 90,418
Investor Class 6,648,258 271,239
Class A 52,504 460,889
Class B 15,382 179,142
Class C 164,390 168,492
Class K 30,788 --
================================================================================
NET ASSET VALUE PER SHARE:
Institutional Class. Offering and
Redemption Price per Share -- $ 14.04
Investor Class, Offering and Redemption
Price per Share $ 6.67 $ 14.00
Class A
Redemption Price per Share $ 6.68 $ 13.98
Offering Price per Share (Maximum
sales charge of 5.50%) $ 7.07 $ 14.79
Class B, Offering and Redemption
Price per Share $ 6.61 $ 13.79
Class C, Offering and Redemption
Price per Share $ 6.49 $ 13.70
Class K, Offering and Redemption Price
per Share $ 6.64 --
================================================================================
(a) The INVESCO Stock Funds, Inc. have 10 billion authorized shares of common
stock, par value of $0.01 per share. Of such shares, 500 million have been
allocated to Growth & Income Fund and 1.2 billion have been allocated to
Mid-Cap Growth Fund: 100 million to each class of Growth & Income Fund and
200 million to each class of Mid-Cap Growth Fund.
See Notes to Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
(CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
SMALL
S&P 500 COMPANY
INDEX FUND GROWTH FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost(a)(b) $ 211,648,018 $ 879,048,958
================================================================================
At Value(a)(b) $ 199,791,840 $ 1,028,837,893
Cash 0 68
Receivables:
Investment Securities Sold 0 10,016,195
Fund Shares Sold 165,780 1,595,421
Dividends and Interest 238,075 313,807
Variation Margin on Futures Contracts 26,325 0
Prepaid Expenses and Other Assets 42,734 122,014
================================================================================
TOTAL ASSETS 200,264,754 1,040,885,398
================================================================================
LIABILITIES
Options Written at Value (Premiums Received
$0 and $57,887, respectively) 0 94,188
Payables:
Custodian 25,301 0
Distributions to Shareholders 9,652 0
Investment Securities Purchased 0 10,151,010
Fund Shares Repurchased 259,744 3,833,268
Securities Loaned 0 32,721,694
Accrued Distribution Expenses
Investor Class 41,164 183,743
Class A -- 1,988
Class B -- 331
Class C -- 2,132
Class K -- 34,634
Accrued Expenses and Other Payables 21,124 77,203
================================================================================
TOTAL LIABILITIES 356,985 47,100,191
================================================================================
NET ASSETS AT VALUE $ 199,907,769 $ 993,785,207
================================================================================
NET ASSETS
Paid-in Capital(c) $ 229,028,121 $ 1,590,094,318
Accumulated Undistributed Net Investment
Income (Loss) 16,808 (70,302)
Accumulated Undistributed Net Realized Loss on
Investment Securities, Futures Contracts and
Option Contracts (17,248,979) (745,991,443)
Net Appreciation (Depreciation) of Investment
Securities, Futures Contracts and Option
Contracts (11,888,181) 149,752,634
================================================================================
NET ASSETS AT VALUE, Applicable to Shares
Outstanding $ 199,907,769 $ 993,785,207
================================================================================
NET ASSETS AT VALUE:
Institutional Class $ 4,239,435 --
================================================================================
Investor Class $ 195,668,334 $ 890,227,209
================================================================================
Class A -- $ 6,372,320
================================================================================
Class B -- $ 408,314
================================================================================
Class C -- $ 1,672,768
================================================================================
Class K -- $ 95,104,596
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
(CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
SMALL
S&P 500 COMPANY
INDEX FUND GROWTH FUND
(CONTINUED) (CONTINUED)
- --------------------------------------------------------------------------------
Shares Outstanding
Institutional Class 425,164 --
Investor Class 18,789,850 89,087,737
Class A -- 637,084
Class B -- 41,194
Class C -- 176,358
Class K -- 9,521,279
================================================================================
NET ASSET VALUE PER SHARE:
Institutional Class, Offering and Redemption
Price per Share $ 9.97 --
Investor Class, Offering and Redemption Price
per Share $ 10.41 $ 9.99
Class A
Redemption Price per Share -- $ 10.00
Offering Price per Share (Maximum sales
charge of 5.50%) -- $ 10.58
Class B, Offering and Redemption Price per Share -- $ 9.91
Class C, Offering and Redemption Price per Share -- $ 9.49
Class K, Offering and Redemption Price per Share -- $ 9.99
================================================================================
(a) Investment securities at cost and value at July 31, 2003 include repurchase
agreements of $8,932,000 and $8,005,000 for S&P 500 Index and Small Company
Growth Funds, respectively.
(b) Investment securities at cost and value at July 31, 2003 includes
$31,945,909 of securities loaned for Small Company Growth Fund (Note 6).
(c) The INVESCO Stock Funds, Inc. have 10 billion authorized shares of common
stock, par value of $0.01 per share. Of such shares, 200 million have been
allocated to S&P 500 Index Fund and 1.3 billion have been allocated to
Small Company Growth Fund: 100 million to each class of S&P 500 Index Fund,
500 million to Small Company Growth Fund - Investor Class and 200 million
to each additional class of Small Company Growth Fund.
See Notes to Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
(CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
VALUE
EQUITY
FUND
- --------------------------------------------------------------------------------
ASSETS
Investment Securities:
At Cost $ 86,399,785
================================================================================
At Value $ 99,526,761
Receivables:
Fund Shares Sold 41,816
Dividends 119,456
Prepaid Expenses and Other Assets 33,264
================================================================================
TOTAL ASSETS 99,721,297
================================================================================
LIABILITIES
Payables:
Distributions to Shareholders 1,898
Fund Shares Repurchased 163,948
Accrued Distribution Expenses
Investor Class 20,495
Class A 101
Class B 195
Class C 1,124
Accrued Expenses and Other Payables 21,639
================================================================================
TOTAL LIABILITIES 209,400
================================================================================
NET ASSETS AT VALUE $ 99,511,897
================================================================================
NET ASSETS
Paid-in Capital(a) $ 94,048,577
Accumulated Undistributed Net Investment Loss (14,968)
Accumulated Undistributed Net Realized Loss on
Investment Securities (7,648,688)
Net Appreciation of Investment Securities 13,126,976
================================================================================
NET ASSETS AT VALUE, Applicable to Shares Outstanding $ 99,511,897
================================================================================
NET ASSETS AT VALUE:
Investor Class $ 97,712,791
================================================================================
Class A $ 339,901
================================================================================
Class B $ 235,173
================================================================================
Class C $ 1,224,032
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
(CONTINUED)
INVESCO STOCK FUNDS, INC.
JULY 31, 2003
VALUE
EQUITY
FUND
(CONTINUED)
- --------------------------------------------------------------------------------
Shares Outstanding
Investor Class 5,626,841
Class A 19,865
Class B 13,583
Class C 71,891
================================================================================
NET ASSET VALUE PER SHARE:
Investor Class, Offering and Redemption Price per Share $ 17.37
Class A
Redemption Price per Share $ 17.11
Offering Price per Share (Maximum sales charge of 5.50%) $ 18.11
Class B, Offering and Redemption Price per Share $ 17.31
Class C, Offering and Redemption Price per Share $ 17.03
================================================================================
(a) The INVESCO Stock Funds, Inc. have 10 billion authorized shares of common
stock, par value of $0.01 per share. Of such shares, 500 million have been
allocated to the Value Equity Fund: 100 million to each class.
See Notes to Financial Statements
STATEMENT OF OPERATIONS
INVESCO STOCK FUNDS, INC.
YEAR ENDED JULY 31, 2003
DYNAMICS GROWTH
FUND FUND
- -------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 14,007,721 $ 5,137,116
Dividends from Affiliated Investment Companies 0 7,745
Interest 1,262,364 308,222
Securities Loaned Income 274,708 29,386
Foreign Taxes Withheld (162,283) (12,464)
=====================================================================================
TOTAL INCOME 15,382,510 5,470,005
=====================================================================================
EXPENSES
Investment Advisory Fees 17,957,855 2,757,654
Distribution Expenses 9,274,525 1,202,745
Transfer Agent Fees 22,197,175 3,609,499
Administrative Services Fees 1,653,465 221,308
Custodian Fees and Expenses 529,845 86,550
Directors' Fees and Expenses 259,003 42,840
Interest Expenses 55,111 837
Professional Fees and Expenses 219,428 64,818
Registration Fees and Expenses
Institutional Class 10,810 --
Investor Class 342,682 136,386
Class A 3,287 2,586
Class B 3,273 2,583
Class C 9,339 3,443
Class K 6,856 4,076
Reports to Shareholders 832,351 438,549
Other Expenses 225,790 32,878
=====================================================================================
TOTAL EXPENSES 53,580,795 8,606,752
Fees and Expenses Absorbed/Reimbursed by
Investment Adviser (9,216,794) (93,539)
Fees and Expenses Paid Indirectly (447,799) (71,479)
======================================================================================
NET EXPENSES 43,916,202 8,441,734
======================================================================================
NET INVESTMENT LOSS (28,533,692) (2,971,729)
======================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Loss on:
Investment Securities (487,560,159) (103,696,949)
Foreign Currency Transactions (45,099) 0
======================================================================================
Total Net Realized Loss (487,605,258) (103,696,949)
======================================================================================
Change in Net Appreciation/Depreciation of:
Investment Securities 1,162,295,144 146,695,576
Foreign Currency Transactions (343,629) 0
======================================================================================
Total Change in Net Appreciation/
Depreciation 1,161,951,515 146,695,576
=======================================================================================
NET GAIN ON INVESTMENT SECURITIES
AND FOREIGN CURRENCY TRANSACTIONS 674,346,257 42,998,627
=======================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 645,812,565 $ 40,026,898
=======================================================================================
See Notes to Financial Statements
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
YEAR ENDED JULY 31, 2003
GROWTH &
INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 438,668
Dividends from Affiliated Investment Companies 1,493
Interest 93,315
Foreign Taxes Withheld (1,085)
================================================================================
TOTAL INCOME 532,391
================================================================================
EXPENSES
Investment Advisory Fees 324,601
Distribution Expenses 117,137
Transfer Agent Fees 512,012
Administrative Services Fees 29,476
Custodian Fees and Expenses 14,900
Directors' Fees and Expenses 11,355
Interest Expenses 811
Professional Fees and Expenses 35,351
Registration Fees and Expenses
Investor Class 16,379
Class A 2,593
Class B 2,590
Class C 3,431
Class K 4,090
Reports to Shareholders 115,456
Other Expenses 5,746
================================================================================
TOTAL EXPENSES 1,195,928
Fees and Expenses Absorbed/Reimbursed by Investment Adviser (537,686)
Fees and Expenses Paid Indirectly (104)
================================================================================
NET EXPENSES 658,138
================================================================================
NET INVESTMENT LOSS (125,747)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Loss on Investment Securities (8,077,586)
Change in Net Appreciation/Depreciation of Investment Securities 11,064,121
================================================================================
NET GAIN ON INVESTMENT SECURITIES 2,986,535
================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 2,860,788
================================================================================
See Notes to Financial Statements
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
MID-CAP GROWTH FUND
PERIOD YEAR
ENDED ENDED
JULY 31 APRIL 30
- --------------------------------------------------------------------------------
2003 2003
(Note 1) (Note 1)
INVESTMENT INCOME
INCOME
Dividends $ 12,366 $ 40,884
Dividends from Affiliated Investment Companies 344 0
Interest 1,515 8,950
Foreign Taxes Withheld (89) (164)
================================================================================
TOTAL INCOME 14,136 49,670
================================================================================
EXPENSES
Investment Advisory Fees 38,175 100,996
Distribution Expenses 18,974 50,073
Transfer Agent Fees 14,933 29,391
Administrative Services Fees 4,218 14,545
Custodian Fees and Expenses 3,915 10,914
Directors' Fees and Expenses 2,228 5,315
Professional Fees and Expenses 27,978 42,636
Registration Fees and Expenses
Institutional Class 3,143 12,387
Investor Class 3,613 8,168
Class A 2,775 4,042
Class B 2,146 3,096
Class C 2,204 3,220
Reports to Shareholders 1,508 41,888
Other Expenses 541 4,692
================================================================================
TOTAL EXPENSES 126,351 331,363
Fees and Expenses Absorbed/Reimbursed by
Investment Adviser (57,651) (149,818)
Fees and Expenses Paid Indirectly (93) (178)
================================================================================
NET EXPENSES 68,607 181,367
================================================================================
NET INVESTMENT LOSS (54,471) (131,697)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on Investment
Securities 358,022 (647,698)
================================================================================
Change in Net Appreciation/Depreciation of:
Investment Securities 1,153,148 (379,521)
Foreign Currency Transactions 341 (703)
================================================================================
Total Change in Net Appreciation/
Depreciation 1,153,489 (380,224)
================================================================================
NET GAIN (LOSS) ON INVESTMENT SECURITIES AND
FOREIGN CURRENCY TRANSACTIONS 1,511,511 (1,027,922)
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 1,457,040 $ (1,159,619)
================================================================================
See Notes to Financial Statements
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
YEAR ENDED JULY 31, 2003
SMALL
S&P 500 COMPANY
INDEX FUND GROWTH FUND
- ---------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 2,704,705 $ 3,421,402
Dividends from Affiliated Investment Companies 0 63,629
Interest 82,073 1,169,687
Securities Loaned Income 0 188,258
Foreign Taxes Withheld 0 (6,712)
=======================================================================================
TOTAL INCOME 2,786,778 4,836,264
=======================================================================================
EXPENSES
Investment Advisory Fees 387,336 5,773,820
Distribution Expenses 384,046 2,324,554
Transfer Agent Fees 550,920 6,292,976
Administrative Services Fees 79,720 396,494
Custodian Fees and Expenses 52,431 137,693
Directors' Fees and Expenses 17,652 67,550
Interest Expenses 0 360
Professional Fees and Expenses 31,353 74,856
Registration Fees and Expenses
Institutional Class 9,842 --
Investor Class 34,049 92,675
Class A -- 2,623
Class B -- 2,585
Class C -- 4,167
Class K -- 1,861
Reports to Shareholders 84,733 221,409
Other Expenses 9,414 54,487
=======================================================================================
TOTAL EXPENSES 1,641,496 15,448,110
Fees and Expenses Absorbed/Reimbursed by
Investment Adviser (637,739) (2,393,156)
Fees and Expenses Paid Indirectly (632) (2,609)
=======================================================================================
NET EXPENSES 1,003,125 13,052,345
=======================================================================================
NET INVESTMENT INCOME (LOSS) 1,783,653 (8,216,081)
=======================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Gain (Loss) on:
Investment Securities (1,342,673) (68,176,568)
Futures Contracts 300,793 0
Option Contracts 0 123,613
=======================================================================================
Total Net Realized Loss (1,041,880) (68,052,955)
=======================================================================================
Change in Net Appreciation/Depreciation of:
Investment Securities 17,001,177 229,165,154
Futures Contracts (40,299) 0
Option Contracts 0 (36,301)
=======================================================================================
Total Change in Net Appreciation/Depreciation 16,960,878 229,128,853
=======================================================================================
NET GAIN ON INVESTMENT SECURITIES, FUTURES
CONTRACTS AND OPTION CONTRACTS 15,918,998 161,075,898
=======================================================================================
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 17,702,651 $ 152,859,817
=======================================================================================
See Notes to Financial Statements
STATEMENT OF OPERATIONS (CONTINUED)
INVESCO STOCK FUNDS, INC.
YEAR ENDED JULY 31, 2003
VALUE
EQUITY
FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Dividends $ 2,223,531
Dividends from Affiliated Investment Companies 3,569
Interest 60,776
Foreign Taxes Withheld (15,684)
================================================================================
TOTAL INCOME 2,272,192
================================================================================
EXPENSES
Investment Advisory Fees 745,275
Distribution Expenses 260,262
Transfer Agent Fees 610,252
Administrative Services Fees 54,717
Custodian Fees and Expenses 20,663
Directors' Fees and Expenses 15,533
Interest Expenses 1,279
Professional Fees and Expenses 37,373
Registration Fees and Expenses
Investor Class 27,821
Class A 2,602
Class B 2,604
Class C 3,566
Reports to Shareholders 89,957
Other Expenses 9,060
================================================================================
TOTAL EXPENSES 1,880,964
Fees and Expenses Absorbed/Reimbursed by Investment Adviser (577,110)
Fees and Expenses Paid Indirectly (206)
================================================================================
NET EXPENSES 1,303,648
================================================================================
NET INVESTMENT INCOME 968,544
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT SECURITIES
Net Realized Loss on Investment Securities (5,662,800)
Change in Net Appreciation/Depreciation of Investment Securities 10,971,645
================================================================================
NET GAIN ON INVESTMENT SECURITIES 5,308,845
================================================================================
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 6,277,389
================================================================================
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS
DYNAMICS FUND
YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------
2003 2002
(Note 1)
OPERATIONS
Net Investment Loss $ (28,533,692) $ (47,390,082)
Net Realized Loss (487,605,258) (2,394,287,069)
Change in Net Appreciation/Depreciation 1,161,951,515 62,507,291
===================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 645,812,565 (2,379,169,860)
===================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Institutional Class 0 (14,953)
Investor Class 0 (8,421,070)
Class C 0 (80,624)
Class K 0 (84,604)
===================================================================================
TOTAL DISTRIBUTIONS 0 (8,601,251)
===================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Institutional Class 15,709,144 35,692,949
Investor Class 8,458,071,739 14,256,183,765
Class A 125,881,340 8,734,823
Class B 928,642 500,161
Class C 442,269,623 1,220,215,124
Class K 23,785,225 80,446,673
Reinvestment of Distributions
Institutional Class 0 14,947
Investor Class 0 8,219,289
Class C 0 52,260
Class K 0 81,490
Net Assets Received from Acquisition of INVESCO
Endeavor Fund (Note 3)
Investor Class 47,634,088 --
Class A 507,690 --
Class B 12,735 --
Class C 838,403 --
Class K 985 --
===================================================================================
9,115,639,614 15,610,141,481
Amounts Paid for Repurchases of Shares
Institutional Class (15,141,041) (9,426,772)
Investor Class (8,962,021,941) (14,785,336,080)
Class A (123,183,262) (6,288,847)
Class B (94,496) (4,882)
Class C (443,958,251) (1,229,382,393)
Class K (30,058,663) (20,987,745)
===================================================================================
(9,574,457,654) (16,051,426,719)
NET DECREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (458,818,040) (441,285,238)
===================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 186,994,525 (2,829,056,349)
NET ASSETS
Beginning of Period 3,773,925,748 6,602,982,097
===================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($316,835) and ($254,274), respectively) $ 3,960,920,273 $ 3,773,925,748
===================================================================================
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS
(CONTINUED)
GROWTH FUND
YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------
2003 2002
(Note 1)
OPERATIONS
Net Investment Loss $ (2,971,729) $ (10,389,125)
Net Realized Loss (103,696,949) (937,036,510)
Change in Net Appreciation/Depreciation 146,695,576 425,195,008
===================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 40,026,898 (522,230,627)
===================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Investor Class 0 (8,433,763)
Class C 0 (67,169)
Class K 0 (37,778)
===================================================================================
TOTAL DISTRIBUTIONS 0 (8,538,710)
===================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 286,768,246 682,767,593
Class A 1,744,758 117,396
Class B 203,122 48,462
Class C 2,445,895 6,388,175
Class K 1,043,619 8,562,546
Reinvestment of Distributions
Investor Class 0 7,887,172
Class C 0 63,610
Class K 0 37,714
===================================================================================
292,205,640 705,872,668
Amounts Paid for Repurchases of Shares
Investor Class (388,718,904) (891,104,786)
Class A (654,189) (2,256)
Class B (112,217) 0
Class C (3,192,254) (7,911,299)
Class K (1,825,481) (4,195,177)
===================================================================================
(394,503,045) (903,213,518)
NET DECREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (102,297,405) (197,340,850)
===================================================================================
TOTAL DECREASE IN NET ASSETS (62,270,507) (728,110,187)
NET ASSETS
Beginning of Period 532,047,756 1,260,157,943
===================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($109,493) and ($101,824), respectively) $ 469,777,249 $ 532,047,756
===================================================================================
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS
(CONTINUED)
GROWTH & INCOME FUND
YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------
2003 2002
(Note 1)
OPERATIONS
Net Investment Loss $ (125,747) $ (702,505)
Net Realized Loss (8,077,586) (50,203,808)
Change in Net Appreciation/Depreciation 11,064,121 17,515,562
===================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 2,860,788 (33,390,751)
===================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Investor Class 0 (870,866)
Class C 0 (20,943)
Class K 0 (149)
===================================================================================
TOTAL DISTRIBUTIONS 0 (891,958)
===================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 46,740,507 63,165,278
Class A 874,561 54,987
Class B 98,644 5,991
Class C 4,637,743 2,714,384
Class K 159,035 70,795
Reinvestment of Distributions
Investor Class 0 841,595
Class C 0 20,675
Class K 0 148
===================================================================================
52,510,490 66,873,853
Amounts Paid for Repurchases of Shares
Investor Class (49,199,372) (74,932,736)
Class A (577,565) (207)
Class B (9,433) 0
Class C (4,824,621) (2,855,444)
Class K (33,156) (5,264)
===================================================================================
(54,644,147) (77,793,651)
NET DECREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (2,133,657) (10,919,798)
===================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 727,131 (45,202,507)
NET ASSETS
Beginning of Period 45,358,657 90,561,164
===================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($5,495) and ($4,727), respectively) $ 46,085,788 $ 45,358,657
===================================================================================
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS
(CONTINUED)
MID-CAP GROWTH FUND
PERIOD
ENDED
JULY 31 YEAR ENDED APRIL 30
- ------------------------------------------------------------------------------------------
2003 2003 2002
(Note 1) (Note 1) (Note 1)
OPERATIONS
Net Investment Loss $ (54,471) $ (131,697) $ (135,468)
Net Realized Gain (Loss) 358,022 (647,698) (39,450)
Change in Net Appreciation/Depreciation 1,153,489 (380,224) (1,601,251)
=========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 1,457,040 (1,159,619) (1,776,169)
=========================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Institutional Class 51,600 700,351 1,199,412
Investor Class 2,163,284 8,614,158 --
Class A 662,425 4,762,893 2,532,399
Class B 144,105 1,554,913 1,061,283
Class C 1,341,516 2,630,204 718,705
=========================================================================================
4,362,930 18,262,519 5,511,799
Amounts Paid for Repurchases of Shares
Institutional Class (13,759) (1,639,112) (16,398,485)
Investor Class (1,209,251) (6,157,356) --
Class A (401,325) (1,361,959) (75,190)
Class B (38,729) (343,659) (24)
Class C (1,303,771) (951,662) (217,592)
=========================================================================================
(2,966,835) (10,453,748) (16,691,291)
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 1,396,095 7,808,771 (11,179,492)
=========================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,853,135 6,649,152 (12,955,661)
NET ASSETS
Beginning of Period 13,435,007 6,785,855 19,741,516
=========================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss
of ($117), ($102) and $0, respectively) $ 16,288,142 $ 13,435,007 $ 6,785,855
=========================================================================================
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS
(CONTINUED)
S&P 500 INDEX FUND
YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------
2003 2002
OPERATIONS
Net Investment Loss $ 1,783,653 $ 1,121,152
Net Realized Loss (1,041,880) (4,776,216)
Change in Net Appreciation/Depreciation 16,960,878 (33,132,274)
===================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 17,702,651 (36,787,338)
===================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Institutional Class (36,320) (6,932)
Investor Class (1,732,526) (1,112,643)
===================================================================================
TOTAL DISTRIBUTIONS (1,768,846) (1,119,575)
===================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Institutional Class 3,905,983 60,055
Investor Class 98,378,776 113,976,490
Reinvestment of Distributions
Institutional Class 36,320 6,932
Investor Class 1,697,518 1,086,073
===================================================================================
104,018,597 115,129,550
Amounts Paid for Repurchases of Shares
Institutional Class (369,477) (153,889)
Investor Class (55,590,990) (58,005,970)
===================================================================================
(55,960,467) (58,159,859)
NET INCREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 48,058,130 56,969,691
===================================================================================
TOTAL INCREASE IN NET ASSETS 63,991,935 19,062,778
NET ASSETS
Beginning of Period 135,915,834 116,853,056
===================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Income of
$16,808 and $8,166, respectively) $ 199,907,769 $ 135,915,834
===================================================================================
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS
(CONTINUED)
SMALL COMPANY GROWTH FUND
YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------
2003 2002
(Note 1)
OPERATIONS
Net Investment Loss $ (8,216,081) $ (11,838,207)
Net Realized Loss (68,052,955) (343,900,434)
Change in Net Appreciation/Depreciation 229,128,853 (118,826,648)
===================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 152,859,817 (474,565,289)
===================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 885,646,023 1,668,964,619
Class A 33,795,850 5,175,121
Class B 293,246 83,804
Class C 359,966,858 242,988,367
Class K 21,412,308 97,590,130
===================================================================================
1,301,114,285 2,014,802,041
Amounts Paid for Repurchases of Shares
Investor Class (933,636,362) (1,817,548,640)
Class A (30,723,978) (2,036,706)
Class B (4,930) 0
Class C (359,916,569) (242,505,249)
Class K (6,638,961) (4,561,049)
===================================================================================
(1,330,920,800) (2,066,651,644)
NET DECREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (29,806,515) (51,849,603)
===================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 123,053,302 (526,414,892)
NET ASSETS
Beginning of Period 870,731,905 1,397,146,797
===================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($70,302) and ($55,787), respectively) $ 993,785,207 $ 870,731,905
===================================================================================
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS
(CONTINUED)
VALUE EQUITY FUND
YEAR ENDED JULY 31
- -----------------------------------------------------------------------------------
2003 2002
(Note 1)
OPERATIONS
Net Investment Loss $ 968,544 $ 961,063
Net Realized Loss (5,662,800) (276,900)
Change in Net Appreciation/Depreciation 10,971,645 (36,981,073)
====================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS 6,277,389 (36,296,910)
====================================================================================
DISTRIBUTIONS TO SHAREHOLDERS
Investor Class (959,004) (7,145,493)
Class A (5,560) (1,496)
Class B (794) (1,972)
Class C (1,364) (40,643)
====================================================================================
TOTAL DISTRIBUTIONS (966,722) (7,189,604)
====================================================================================
FUND SHARE TRANSACTIONS
Proceeds from Sales of Shares
Investor Class 88,471,555 234,949,185
Class A 843,658 194,149
Class B 84,108 294,702
Class C 4,247,104 15,133,201
Reinvestment of Distributions
Investor Class 943,764 7,004,884
Class A 2,723 1,049
Class B 756 1,907
Class C 1,235 38,509
====================================================================================
94,594,903 257,617,586
Amounts Paid for Repurchases of Shares
Investor Class (122,225,098) (272,467,187)
Class A (686,034) (2,898)
Class B (115,478) (5,125)
Class C (4,768,477) (14,183,369)
====================================================================================
(127,795,087) (286,658,579)
NET DECREASE IN NET ASSETS
FROM FUND SHARE TRANSACTIONS (33,200,184) (29,040,993)
====================================================================================
TOTAL DECREASE IN NET ASSETS (27,889,517) (72,527,507)
NET ASSETS
Beginning of Period 127,401,414 199,928,921
====================================================================================
End of Period (Including Accumulated
Undistributed Net Investment Loss of
($14,968) and ($16,773), respectively) $ 99,511,897 $ 127,401,414
====================================================================================
See Notes to Financial Statements
NOTES TO FINANCIAL
STATEMENTS
INVESCO STOCK FUNDS, INC.
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. INVESCO Stock Funds,
Inc. is incorporated in Maryland and presently consists of seven separate Funds:
Dynamics Fund, Growth Fund, Growth & Income Fund, Mid-Cap Growth Fund, S&P 500
Index Fund, Small Company Growth Fund and Value Equity Fund (individually the
"Fund" and collectively, the "Funds"). The investment objectives of the Funds
are: to seek long-term capital growth for Dynamics, Growth and Small Company
Growth Funds; to seek a high rate of total return from capital growth plus
income on investments for Growth & Income Fund; to seek long-term capital growth
by investing in companies with medium size market capitalizations for Mid-Cap
Growth Fund; to provide both price performance and income comparable to the
Standard & Poor's 500 Composite Stock Price Index for the S&P 500 Index Fund;
and to achieve a high total return on investments from capital appreciation and
current income for Value Equity Fund. INVESCO Stock Funds, Inc. is registered
under the Investment Company Act of 1940 (the "Act") as a diversified, open-end
management investment company. Effective October 1, 2003, the name of INVESCO
Stock Funds, Inc. will change to A I M Stock Funds, Inc.
At a special meeting held on September 14, 2001, shareholders approved an
Agreement and Plan of Reorganization and Liquidation by which Pell Rudman
Mid-Cap Growth Portfolio reorganized into the Mid-Cap Growth Fund. Effective
October 2, 2001, prior shareholders of the Pell Rudman Mid-Cap Growth Portfolio
received Institutional Class shares of the Fund. Effective October 2, 2001, the
Mid-Cap Growth Fund began offering Class A, Class B and Class C shares. Mid-Cap
Growth Class K shares were effective December 31, 2001. Effective September 4,
2002, the Fund began offering Investor Class shares. Effective May 1, 2003, the
Mid-Cap Growth Fund's fiscal year end changed from April 30 to July 31.
At a special meeting held on January 29, 2003, shareholders of INVESCO Endeavor
Fund approved an Agreement and Plan of Reorganization and Termination under
which Dynamics Fund would acquire all of the assets of INVESCO Endeavor Fund in
exchange solely for shares of equal value of the corresponding classes of
Dynamics Fund and the assumption by Dynamics Fund of all INVESCO Endeavor Fund's
liabilities on January 31, 2003. In addition the shares were distributed to
shareholders of INVESCO Endeavor Fund, effective January 31, 2003.
Effective April 1, 2002, Dynamics, Growth, Growth & Income, Small Company Growth
and Value Equity Funds began offering two additional classes of shares, referred
to as Class A and Class B shares. Value Equity Fund's Class K shares were
effective August 31, 2001. Income, expenses (other than those attributable to a
specific class) and realized and unrealized gains and losses are allocated daily
to each class of shares based on the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against operations of that class. Class A shares are
sold with a front-end sales charge ranging from 5.50% to 2.00% of the offering
price on purchases of less than $1,000,000. Class B shares and Class C shares
are subject to a contingent deferred sales charge paid by the redeeming
shareholder. Class B shares convert to Class A shares after eight years along
with a pro rata portion of its reinvested dividends and distributions.
Effective April 1, 2002, the Investor Class shares are offered only to
grandfathered investors who have established and maintained an account in any of
the funds managed and distributed by INVESCO Funds Group, Inc. ("IFG") in
Investor Class shares.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
A. SECURITY VALUATION -- Domestic (U.S.) equity securities and futures contracts
traded on national securities exchanges or in the over-the-counter market are
valued at the last sales price at the close of the regular trading day on the
exchange (generally 4:00 p.m. Eastern time) where such securities are primarily
traded. If last sales prices are not available, securities are valued at the
closing bid price for the regular trading day as obtained from one or more
dealers making a market for such securities or by a pricing service approved by
the Fund's board of directors.
Foreign equity securities are valued at the closing price. The closing price is
designated by the principal stock exchange in the country in which the
securities are traded. In the event that closing prices are not available for
foreign securities, a snapshot of 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.
Option contracts are valued at the average of the closing bid and ask prices
from the exchange with the highest trading volume on that particular day.
Investments in shares of investment companies are valued at the net asset value
of the respective fund as calculated each day.
If market quotations or pricing service valuations are not readily available, or
events or circumstances that may affect the value of portfolio securities are
identified between the closing of their principal markets and the time that the
net asset value per share is determined, securities are valued at fair value as
determined in good faith under procedures established by the Fund's board of
directors. Restricted and illiquid securities are valued in accordance with
procedures established by the Fund's board of directors.
Short-term securities are stated at amortized cost (which approximates market
value) if maturity is 60 days or less at the time of purchase, or market value
if maturity is greater than 60 days.
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation.
B. FUTURES CONTRACTS -- The Funds may enter into futures contracts for
non-speculative purposes. Upon entering into a contract, the Fund deposits and
maintains initial margin deposits as required by the broker. The Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments are known as
"variation margin" and are recorded by the Fund as variation margin receivable
or payable on futures contracts. During the period the futures contracts are
open, changes in the value of the contracts are recognized on a daily basis to
reflect the market value of the contracts at the end of each day's trading and
are recorded as unrealized gain or loss. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed. The
Fund's use of futures contracts may subject it to certain risks as a result of
unanticipated movements in the market. In addition, there can be no assurance
that a liquid secondary market will exist for any contract purchased or sold.
Securities designated as collateral for market value on futures contracts are
noted in the Statement of Investment Securities.
C. REPURCHASE AGREEMENTS -- Repurchase agreements held by the Fund are fully
collateralized by securities issued by the U.S. Government, its agencies or
instrumentalities and such collateral is in the possession of the Fund's
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. In the event of default on the obligation to repurchase, the Fund has
the right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date and dividend income is recorded on the
ex-dividend date. Interest income, which may be comprised of stated coupon rate,
market discount, original issue discount or amortized premium, is recorded on
the accrual basis. Cost is determined on the specific identification basis.
Certain dividends from foreign securities will be recorded as soon as the Fund
is informed of the dividend if such information is obtained subsequent to the
ex-dividend date. 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. Income and
expenses on foreign securities are translated into U.S. dollars at rates of
exchange prevailing when accrued. The cost of foreign securities is translated
into U.S. dollars at the rates of exchange prevailing when such securities are
acquired.
Each Fund may invest in securities issued by other INVESCO investment companies
that invest in short-term debt securities and seek to maintain a net asset value
of one dollar per share. During the year/period ended July 31, 2003, Growth,
Growth & Income, Mid-Cap Growth, Small Company Growth and Value Equity Funds
invested in INVESCO Treasurer's Series Money Market Reserve Fund. During that
same period, there were no such investments by Dynamics and S&P 500 Index Funds.
The income from this investment is recorded in the Statement of Operations.
The Fund may have elements of risk due to investments in specific industries or
foreign issuers located in a specific country. Such investments may subject the
Fund to additional risks resulting from future political or economic conditions
and/or possible impositions of adverse foreign governmental laws or currency
exchange restrictions. Net realized and unrealized gain or loss from investment
securities includes fluctuations from currency exchange rates and fluctuations
in market value.
The Fund's use of short-term forward foreign currency contracts may subject it
to certain risks as a result of unanticipated movements in foreign exchange
rates. The Fund does not hold short-term forward foreign currency contracts for
trading purposes. The Fund may hold foreign currency in anticipation of settling
foreign security transactions and not for investment purposes.
Restricted securities held by a Fund may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. The risk of investing in such securities is generally greater than the
risk of investing in the securities of widely held, publicly traded companies.
Lack of a secondary market and resale restrictions may result in the inability
of a Fund to sell a security at a fair price and may substantially delay the
sale of the security which each Fund seeks to sell. In addition, these
securities may exhibit greater price volatility than securities for which
secondary markets exist.
E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to
shareholders are recorded by the Fund on the ex-dividend/distribution date. The
Fund distributes net realized capital gains, if any, to its shareholders at
least annually, if not offset by capital loss carryovers.
F. TAX INFORMATION -- The Fund has complied, and continues to comply, with the
provisions of the Internal Revenue Code applicable to regulated investment
companies and, accordingly, has made or intends to make sufficient distributions
of net investment income and net realized capital gains, if any, to relieve it
from all federal and state income taxes and federal excise taxes.
Dividends paid by the Fund from net investment income and distributions of net
realized short-term capital gains are, for federal income tax purposes, taxable
as ordinary income to shareholders. The tax composition of distributions from
ordinary income, long-term capital gains and of the ordinary income
distributions amounts qualifying for the dividends received deduction available
to the Fund's corporate shareholders were as follows:
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JULY 31, 2003 JULY 31, 2003 JULY 31, 2002 JULY 31, 2002
ORDINARY INCOME QUALIFYING ORDINARY INCOME LONG-TERM CAPITAL
FUND DISTRIBUTIONS PERCENTAGE DISTRIBUTIONS GAIN DISTRIBUTIONS
- --------------------------------------------------------------------------------------------------
Dynamics Fund $ 0 $ 0.00% $ 0 $ 8,601,251
Growth Fund 0 0.00% 0 8,538,710
Growth & Income Fund 0 0.00% 0 891,958
S&P 500 Index Fund 1,768,846 100.00% 1,119,575 0
Value Equity Fund 966,722 100.00% 949,901 6,239,703
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from accounting principles generally accepted
in the United States.
The tax components of the Fund at July 31, 2003 include:
NET TAX
COST OF GROSS TAX GROSS TAX APPRECIATION
INVESTMENTS FOR UNREALIZED UNREALIZED (DEPRECIATION)
FUND TAX PURPOSES APPRECIATION DEPRECIATION ON INVESTMENTS
- ------------------------------------------------------------------------------------------------
Dynamics Fund $ 3,315,054,161 $ 800,089,351 $ 102,316,247 $ 697,773,104
Growth Fund 435,479,947 56,793,589 14,705,345 42,088,244
Growth & Income Fund 43,657,927 3,790,238 1,177,797 2,612,441
Mid-Cap Growth Fund 14,931,138 1,971,510 577,109 1,394,401
S&P 500 Index Fund 218,300,652 11,994,763 30,503,575 (18,508,812)
Small Company Growth Fund 887,013,957 165,707,709 23,883,773 141,823,936
Value Equity Fund 86,514,003 17,873,003 4,860,245 13,012,758
ACCUMULATED CUMULATIVE EFFECT
UNDISTRIBUTED CAPITAL LOSS OF OTHER
FUND ORDINARY INCOME CARRYOVERS TIMING DIFFERENCES
- -------------------------------------------------------------------------------------------------
Dynamics Fund $ 0 $ (4,247,202,042) $ (85,190,479)
Growth Fund 0 (1,536,202,077) (30,091,047)
Growth & Income Fund 0 (92,054,913) (289,431)
Mid-Cap Growth Fund 0 (2,043,978) (117)
S&P 500 Index Fund 23,316 (10,578,186) (56,670)
Small Company Growth Fund 0 (722,727,535) (15,293,658)
Value Equity Fund 17,055 (3,902,193) (3,664,300)
The primary difference between book and tax appreciation/depreciation is wash
sale loss deferrals. The net tax appreciation/depreciation on investments
excludes the effect of foreign currency transactions, futures contracts and
written options activity.
Capital loss carryovers expire in the years 2006, 2009, 2010 and 2011. To the
extent future capital gains and income are offset by capital loss carryovers and
deferred post-October 31 losses, such gains and income will not be distributed
to shareholders. Net capital loss carryovers utilized during the period ended
July 31, 2003 by Mid-Cap Growth Fund amounted to $161,383.
The cumulative effect of other timing differences includes deferred post-October
31 capital and currency losses, deferred director's fees and foreign currency
contracts. Deferred post-October 31 capital and currency losses are: Dynamics
Fund $84,873,644, Growth Fund $29,981,554, Growth & Income Fund $283,937, S&P
500 Index Fund $50,163, Small Company Growth Fund $15,223,375 and Value Equity
Fund $3,632,294.
Due to inherent differences in the recognition of income, expenses and realized
gains/losses under accounting principles generally accepted in the United States
and federal income tax purposes, permanent and temporary differences between
book and tax basis reporting have been identified and appropriately reclassed on
the Statement of Assets and Liabilities. Dynamics, Growth and Small Company
Growth Funds reclassified $28,468,877, $2,964,060 and $8,200,114, respectively,
of net investment losses to paid-in capital. Dynamics Fund reclassified
$215,963,435 of accumulated undistributed net realized gains to paid-in capital.
G. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund enters into short-term forward
foreign currency contracts in connection with planned purchases or sales of
securities as a hedge against fluctuations in foreign exchange rates pending the
settlement of transactions in foreign securities. A forward foreign currency
contract is an agreement between contracting parties to exchange an amount of
currency at some future time at an agreed upon rate. These contracts are
marked-to-market daily and the related appreciation or depreciation of the
contracts is presented in the Statement of Assets and Liabilities. Any realized
gain or loss incurred by the Fund upon the sale of securities is included in the
Statement of Operations.
H. OPTION CONTRACTS -- The Funds may buy or write put and call options,
including securities index options, on portfolio securities for hedging purposes
or as a substitute for an investment. The Funds generally invest in options to
hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Fund receives a premium and becomes obligated to
sell or purchase the underlying security at a fixed price, upon exercise of the
option. In writing an option, the Fund bears the market risk of an unfavorable
change in the price of the security underlying the written option. Exercise of
an option written by the Fund could result in the Fund buying or selling a
security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option,
the purchase cost for a written put option, or the cost of the security for a
purchased put or call option is adjusted by the amount of premium received or
paid.
Securities designated to cover outstanding written options are noted in the
Statement of Investment Securities where applicable. Options written are
reported as a liability in the Statement of Assets and Liabilities. Gains and
losses are reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss if
the market price of the security decreases and the option is exercised. The risk
in buying an option is that the Fund pays a premium whether or not the option is
exercised. The use of such instruments may involve certain additional risks as a
result of unanticipated movements in the market. A lack of correlation between
the value of an instrument underlying an option and the asset being hedged, or
unexpected adverse price movements, could render the Fund's hedging strategy
unsuccessful. In addition, there can be no assurance that a liquid secondary
market will exist for any option purchased or sold.
Written option activity for the year ended July 31, 2003, was as follows:
CALL OPTIONS
- -------------------------------------------------------------------------
NUMBER AMOUNT
OF OPTIONS OF PREMIUMS
- -------------------------------------------------------------------------
Small Company Growth Fund
Options outstanding at July 31, 2002 0 $ 0
Options written (2,527) 298,534
Options closed or expired 481 (123,613)
Options exercised 539 (117,034)
Options outstanding at July 31, 2003 (1,507) $ 57,887
I. EXPENSES -- Each Fund or Class bears expenses incurred specifically on its
behalf and, in addition, each Fund or Class bears a portion of general expenses,
based on the relative net assets of each Fund or Class.
Under an agreement between each Fund and the Fund's Custodian, certain Custodian
Fees and Expenses are reduced by credits granted by the Custodian from any
temporarily uninvested cash. Similarly, Custodian Fees and Expenses for Dynamics
and Growth Funds are reduced by credits earned from security brokerage
transactions under certain broker/service arrangements with third parties. Such
credits are included in Fees and Expenses Paid Indirectly in the Statement of
Operations.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. IFG serves as the Funds'
investment adviser. As compensation for its services to the Funds, 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
- -----------------------------------------------------------------------------------------------------
$700 $2 $4 $6
$0 TO $350 TO MILLION BILLION BILLION BILLION OVER
$350 $700 TO $2 TO $4 TO $6 TO $8 $8
FUND MILLION MILLION BILLION BILLION BILLION BILLION BILLION
- -----------------------------------------------------------------------------------------------------
Dynamics Fund 0.60% 0.55% 0.50% 0.45% 0.40% 0.375% 0.35%
Growth Fund 0.60% 0.55% 0.50% 0.45% 0.40% 0.375% 0.35%
Small Company Growth Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------------
$500 $1 $2 $4 $6
$0 TO MILLION BILLION BILLION BILLION BILLION OVER
$500 TO $1 TO $2 TO $4 TO $6 TO $8 $8
FUND MILLION BILLION BILLION BILLION BILLION BILLION BILLION
- -----------------------------------------------------------------------------------------------------
Growth & Income Fund 0.75% 0.65% 0.55% 0.45% 0.40% 0.375% 0.35%
Value Equity Fund 0.75% 0.65% 0.50% 0.45% 0.40% 0.375% 0.35%
Mid-Cap Growth and S&P 500 Index Funds' investment advisory fees are based on
the annual rate of 1.00% and 0.25% of average net assets, respectively.
A sub-advisory Agreement between IFG and World Asset Management ("World"),
unaffiliated with any IFG entity, provides that investment decisions of S&P 500
Index Fund are made by World. Effective August 13, 2003, INVESCO Structured
Products Group, an affiliate of IFG, assumed investment decisions of S&P 500
Index Fund.
A plan of distribution pursuant to Rule 12b-1 of the Act provides for
compensation of marketing and advertising expenditures to A I M Distributors,
Inc. ("ADI" or the "Distributor") effective July 1, 2003, and prior to July 1,
2003 to INVESCO Distributors, Inc. ("IDI"), both are subsidiaries of AMVESCAP
PLC, of 0.25% of annual average net assets of Investor Class shares. A master
distribution plan and agreement for Class A, Class B and Class C shares pursuant
to Rule 12b-1 of the Act provides for compensation of certain promotional and
other sales related costs to the Distributor. Class A shares of the Fund pay
compensation to the Distributor at a rate of 0.35% of annual average net assets.
During any period that Class A shares of the Fund are closed to new investors,
the Fund will reduce this payment for Class A shares from 0.35% to 0.25% per
annum. Class B and Class C shares of the Fund pay compensation to the
Distributor at a rate of 1.00% of annual average net assets. Of these amounts,
the Distributor may pay a service fee of 0.25% of the average net assets of the
Class A, Class B or Class C shares to selected dealers and financial
institutions who furnish continuing personal shareholder services to their
customers who purchase and own the applicable class of shares of the Fund. Any
amounts not paid as a service fee under the Plans would constitute an
asset-based sales charge. The Plans also impose caps on the total sales charges,
including asset-based sales charges, that may be paid by the respective class. A
plan of distribution pursuant to Rule 12b-1 of the Act provides for financing
the distribution and continuing personal shareholder servicing of Class K shares
of 0.45% of annual average net assets. Any unreimbursed expenses the Distributor
incurs with respect to Investor Class, Class A, Class C and Class K shares in
any fiscal year can not be recovered in subsequent years. For the year/period
ended July 31, 2003, amounts paid to the Distributor were as follows:
INVESTOR CLASS CLASS CLASS CLASS
FUND CLASS A B C K
- --------------------------------------------------------------------------------------------
Dynamics Fund $ 8,911,840 $ 20,444 $ 7,174 $ 160,844 $ 186,470
Growth Fund 1,174,580 1,770 447 31,585 10,636
Growth & Income Fund 104,747 1,094 330 10,808 496
Mid-Cap Growth Fund 1,760 5,031 5,492 5,395 --
S&P 500 Index Fund 371,160 -- -- -- --
Small Company Growth Fund 1,944,943 11,620 1,885 38,430 314,871
Value Equity Fund 250,355 897 2,593 12,759 --
If the Class B Plan is terminated, the board of directors may allow the Class B
shares to continue payments of the asset-based sales charge to the Distributor
for allowable unreimbursed expenses incurred for distributing shares before the
Class B Plan was terminated. The Class B Plan allows for the carry-forward of
distribution expenses, to be recovered from asset-based sales charges in
subsequent fiscal periods. Distribution fees related to the Distributor for the
year/period ended July 31, 2003, for Class B were as follows:
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
AMOUNT RETAINED EXPENSES OF NET ASSETS
FUND BY DISTRIBUTOR UNDER PLAN OF CLASS
- --------------------------------------------------------------------------------------------
Dynamics Fund - Class B Plan $ 7,780 $ 24,943 1.77%
Growth Fund - Class B Plan 495 624 0.45%
Growth & Income Fund - Class B Plan 371 605 0.60%
Mid-Cap Growth Fund - Class B Plan 5,299 0 0.00%
Small Company Growth Fund - Class B Plan 2,107 7,023 1.72%
Value Equity Fund - Class B Plan 2,290 0 0.00%
Distribution Expenses for each class as presented in the Statement of Operations
for the year/period ended July 31, 2003 were as follows:
INVESTOR CLASS CLASS CLASS CLASS
FUND CLASS A B C K
- --------------------------------------------------------------------------------------------
Dynamics Fund $ 8,902,862 $ 21,969 $ 7,996 $ 155,587 $ 186,111
Growth Fund 1,158,786 2,143 516 30,950 10,350
Growth & Income Fund 104,262 1,185 385 10,752 553
Mid-Cap Growth Fund 2,061 5,371 5,855 5,687 --
S&P 500 Index Fund 384,046 -- -- -- --
Small Company Growth Fund 1,948,394 12,782 2,159 37,799 323,420
Value Equity Fund 243,892 949 2,586 12,835 --
Distribution Expenses for Mid-Cap Growth Fund as presented in the Statement of
Operations for the year/period ended April 30, 2003 were as follows:
INVESTOR CLASS CLASS CLASS
FUND CLASS A B C
- --------------------------------------------------------------------------------------------
Mid-Cap Growth Fund $ 2,421 $ 14,437 $ 16,371 $ 16,844
IFG receives a transfer agent fee from each Class at an annual rate of $22.50
per shareholder account, or, where applicable, per participant in an omnibus
account, per year. IFG may pay such fee for participants in omnibus accounts to
affiliates or third parties. Aggregate fees collected for such omnibus accounts
for the year/period ended July 31, 2003 amounted to $18,755,790 for Dynamics
Fund, $1,778,083 for Growth Fund, $77,132 for Growth & Income Fund, $2,696 for
Mid-Cap Growth Fund, $232,987 for S&P 500 Index Fund, $5,348,794 for Small
Company Growth Fund and $267,299 for Value Equity Fund, respectively, of which
$11,810,550, $842,318, $19,130, $1,078, $116,721, $3,371,197 and $37,159,
respectively, were retained by IFG. Aggregate fees collected for such omnibus
accounts for the year ended April 30, 2003 for Mid-Cap Growth Fund amounted to
$6,235 of which $2,764 was retained by IFG. 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. Effective October 1, 2003, A I M Fund Services,
Inc. will assume all responsibilities under the existing Transfer Agency
Agreement.
Transfer agent fees for each class as presented in the Statement of Operations
for the year/period ended July 31, 2003 were as follows:
INSTITUTIONAL INVESTOR CLASS CLASS CLASS CLASS
FUND CLASS CLASS A B C K
- ----------------------------------------------------------------------------------------------
Dynamics Fund $ 40,820 $ 21,742,271 $ 14,560 $ 2,254 $ 161,928 $ 235,342
Growth Fund -- 3,517,349 788 293 58,108 32,961
Growth & Income Fund -- 492,741 551 238 16,224 2,258
Mid-Cap Growth Fund 346 6,461 4,562 1,500 2,064 --
S&P 500 Index Fund 12,373 538,547 -- -- -- --
Small Company Growth Fund -- 4,860,422 5,949 1,024 52,061 1,373,520
Value Equity Fund -- 595,873 882 547 12,950 --
Transfer Agent fees for Mid-Cap Growth Fund as presented in the Statement of
Operations for the year/period ended April 30, 2003 were as follows:
INSTITUTIONAL INVESTOR CLASS CLASS CLASS
FUND CLASS CLASS A B C
- ---------------------------------------------------------------------------------------------
Mid-Cap Growth Fund $ 1,573 $ 6,782 $10,948 $ 4,311 $ 5,777
In accordance with an Administrative Services Agreement, each Fund pays IFG an
annual fee of $10,000, plus an additional amount computed at an annual rate of
0.045% of average net assets to provide administrative, accounting and clerical
services. The fee is accrued daily and paid monthly.
IFG has voluntarily agreed to absorb and assume certain fees and expenses
incurred by each Fund. IFG is entitled to reimbursement from a Fund share class
that has fees and expenses voluntarily absorbed pursuant to this arrangement if
such reimbursements do not cause a share class to exceed voluntary expense
limitations and the reimbursement is made within three years after IFG incurred
the expense. For the year/period ended July 31, 2003, total fees and expenses
voluntarily absorbed were as follows:
INSTITUTIONAL INVESTOR CLASS CLASS CLASS CLASS
FUND CLASS CLASS A B C K
- -----------------------------------------------------------------------------------------------------
Dynamics Fund $ 0 $8,960,691 $ 0 $ 4,432 $169,045 $ 82,626
Growth Fund -- 0 380 3,448 64,949 24,762
Growth & Income Fund -- 499,941 2,749 3,604 24,246 7,146
Mid-Cap Growth Fund 5,652 16,543 18,457 8,109 8,890 --
S&P 500 Index Fund 24,137 613,602 -- -- -- --
Small Company Growth Fund -- 1,319,448 0 3,770 49,264 1,020,674
Value Equity Fund -- 550,369 3,667 3,691 19,383 --
For the year/period ended April 30, 2003, total fees and expenses voluntarily
absorbed for Mid-Cap Growth Fund were as follows:
INSTITUTIONAL INVESTOR CLASS CLASS CLASS
FUND CLASS CLASS A B C
- ---------------------------------------------------------------------------------------------
Mid-Cap Growth Fund $ 34,583 $ 19,517 $ 46,112 $ 23,070 $ 26,536
As of the year/period ended July 31, 2003, the reimbursement that may
potentially be made by the Funds to IFG and that will expire during the years
ended July 31, 2005 and 2006, are as follows:
INSTITUTIONAL INVESTOR CLASS CLASS CLASS CLASS
FUND CLASS CLASS A B C K
- ------------------------------------------------------------------------------------------------
JULY 31, 2005
Dynamics Fund $ 0 $ 0 $ 0 $ 0 $ 28,197 $ 0
Growth Fund -- 0 0 201 0 0
Growth & Income Fund -- 94,911 191 241 4,335 503
Mid-Cap Growth Fund 8,277 0 8,357 3,754 3,451 --
S&P 500 Index Fund 4,447 94,254 -- -- -- --
Small Company Growth Fund -- 0 0 0 7,821 0
Value Equity Fund -- 115,920 0 0 3,099 --
JULY 31, 2006
Dynamics Fund $ 0 $ 8,960,691 $ 0 $ 4,432 $ 169,045 $ 82,626
Growth Fund -- 0 477 3,448 64,949 24,762
Growth & Income Fund -- 499,942 2,804 3,604 24,245 7,146
Mid-Cap Growth Fund 27,303 36,060 52,678 25,977 31,027 --
S&P 500 Index Fund 24,138 613,602 -- -- -- --
Small Company Growth Fund -- 1,319,448 0 3,770 49,264 1,020,674
Value Equity Fund -- 550,369 3,667 3,691 19,383 --
During the year/period ended July 31, 2003, the reimbursement that was made by
the Funds to IFG were as follows:
INVESTOR CLASS CLASS CLASS CLASS
FUND CLASS A B C K
- --------------------------------------------------------------------------------------------
Growth Fund $ 0 $ 97 $ 0 $ 0 $ 0
Growth & Income Fund 0 55 0 0 0
During the year/period ended July 31, 2003, there were no such reimbursements
made by Dynamics, Mid-Cap Growth, S&P 500 Index, Small Company Growth and Value
Equity Funds. During the year/period ended April 30, 2003, there were no such
reimbursements made by Mid-Cap Growth Fund.
A 1% redemption fee is retained by S&P 500 Index Fund to offset transaction
costs and other expenses associated with short-term redemptions and exchanges.
The fee is imposed on redemptions or exchanges of shares held less than three
months. The redemption fee is accounted for as an addition to Paid-in Capital by
S&P 500 Index Fund. Total redemption fees received by S&P 500 Index Fund -
Institutional Class and S&P 500 Index Fund - Investor Class for the year ended
July 31, 2003 were $5 and $66,808, respectively.
NOTE 3 -- ACQUISITION OF INVESCO ENDEAVOR FUND ("TARGET FUND"). On January 31,
2003, Dynamics Fund acquired all the net assets of the Target Fund pursuant to
an Agreement and Plan of Reorganization and Termination approved by the Target
Fund shareholders on January 29, 2003. The acquisition was accomplished by a
tax-free exchange of 4,491,385 shares of Dynamics Fund-Investor Class shares
(valued at $47,634,088) for 9,169,134 shares of the Target Fund-Investor Class
shares, 47,716 shares of Dynamics Fund-Class A shares (valued at $507,690) for
91,427 shares of the Target Fund-Class A shares, 1,207 shares of Dynamics
Fund-Class B shares (valued at $12,735) for 2,466 shares of the Target
Fund-Class B shares, 80,743 shares of Dynamics Fund-Class C shares (valued at
$838,403) for 164,854 shares of the Target Fund-Class C shares and 93 shares of
Dynamics Fund-Class K shares (valued at $985) for 191 shares of the Target
Fund-Class K shares, respectively, outstanding on January 31, 2003. The Target
Fund's net assets at that date ($48,993,901) including $3,500,200 of unrealized
appreciation, were combined with those of Dynamics Fund. The aggregate net
assets of Dynamics Fund and the Target Fund immediately before the acquisition
were $3,382,260,445 and $48,993,901, respectively. The net assets of Dynamics
Fund after the acquisition were $3,431,254,346.
NOTE 4 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the year/period
ended July 31, 2003, 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
- -----------------------------------------------------------------------------------------------
Dynamics Fund $ 3,286,025,349 $ 3,759,666,726
Growth Fund 508,906,585 585,142,729
Growth & Income Fund 69,713,923 73,110,869
Mid-Cap Growth Fund 3,807,608 3,260,925
S&P 500 Index Fund 45,501,711 2,141,399
Small Company Growth Fund 913,763,308 964,537,154
Value Equity Fund 64,181,079 90,182,981
There were no purchases or sales of U.S. Government securities.
NOTE 5 -- TRANSACTIONS WITH AFFILIATES AND AFFILIATED COMPANIES. Certain of the
Funds' officers and directors are also officers and directors of IFG or IDI or
ADI.
Each Fund has adopted a retirement plan covering all independent directors of
the Fund who will have served as an independent director for at least five years
at the time of retirement. Benefits under this plan are based on an annual rate
as defined in the plan agreement, as amended March 1, 2001. Effective November
8, 2002, the plan provides that a director, prior to retirement, may elect to
convert amounts accrued under this plan into a new deferred retirement plan.
Pension expenses for the year/period ended July 31, 2003, included in Directors'
Fees and Expenses in the Statement of Operations, and pension liability included
in Accrued Expenses, in the Statement of Assets and Liabilities were as follows:
PENSION PENSION
FUND EXPENSES LIABILITY
- --------------------------------------------------------------------------------------------
Dynamics Fund $ 74,327 $ 89,735
Growth Fund 11,328 29,657
Growth & Income Fund 946 1,507
Mid-Cap Growth Fund 17 41
S&P 500 Index Fund 2,266 1,858
Small Company Growth Fund 16,852 20,516
Value Equity Fund 2,260 8,632
The independent directors have contributed to a deferred fee agreement plan,
pursuant to which they have deferred receipt of a portion of the compensation
which they would otherwise have been paid as directors of the INVESCO Funds. The
deferred amounts may be invested in the shares of any of the INVESCO Funds,
excluding the INVESCO Variable Investment Funds.
An affiliated company represents ownership by a Fund of at least 5% of the
voting securities of the issuer or may be affiliated with other INVESCO
investment companies during the period, as defined in the Act. A summary of the
transactions during the year/period ended July 31, 2003, in which the issuer was
an affiliate of the Fund, is as follows:
REALIZED GAIN
PURCHASES/OTHER TRANSACTIONS SALES/OTHER TRANSACTIONS (LOSS) ON
------------------------------------------------------------- INVESTMENT VALUE AT
AFFILIATE SHARES COST SHARES PROCEEDS SECURITIES 7/31/2003
- ---------------------------------------------------------------------------------------------------------------------------
DYNAMICS FUND
INVESCO Treasurer's
Series Money
Market Reserve
Fund 1,939,109,888 $ 1,939,109,888 1,983,574,982 $ 1,983,574,982 $ 0 $ 36,892,514
Software HOLDRs Trust 2,316,800 61,279,717 1,345,700 36,390,521 4,476,306 1,415,085
GROWTH FUND
INVESCO Treasurer's
Series Money
Market Reserve
Fund 348,997,233 348,997,233 325,898,760 325,898,760 0 23,098,473
Software HOLDRs Trust 520,300 14,479,656 143,400 3,905,609 3,639 12,192,715
GROWTH & INCOME FUND
INVESCO Treasurer's
Series Money
Market Reserve
Fund 4,680,258 4,680,258 3,107,438 3,107,438 0 1,572,820
</Table>
<Table>
<Caption>
REALIZED GAIN
PURCHASES/OTHER TRANSACTIONS SALES/OTHER TRANSACTIONS (LOSS) ON
------------------------------------------------------------- INVESTMENT VALUE AT
AFFILIATE SHARES COST SHARES PROCEEDS SECURITIES 7/31/2003
- ---------------------------------------------------------------------------------------------------------------------------
MID-CAP GROWTH FUND
INVESCO Treasurer's
Series Money
Market Reserve
Fund 1,150,344 1,150,344 100,000 100,000 0 1,050,344
SMALL COMPANY GROWTH FUND
INVESCO Treasurer's
Series Money
Market Reserve
Fund 840,223,280 840,223,280 805,009,348 805,009,348 0 67,718,082
VALUE EQUITY FUND
INVESCO Treasurer's
Series Money
Market Reserve
Fund 11,343,341 11,343,341 6,109,859 6,109,859 0 5,233,482
Dividend income from INVESCO Treasurer's Series Money Market Reserve Fund is
disclosed in the Statement of Operations. Dividend income of $353,436 and
$116,046, respectively, was received from Software HOLDRs Trust for Dynamics and
Growth Funds, respectively.
NOTE 6 -- SECURITIES LOANED. The Funds have entered into a securities lending
agreement with the custodian. Under the terms of the agreement, the Funds
receive income, recorded monthly, after deduction of other amounts payable to
the custodian or to the borrower from lending transactions. In exchange for such
fees, the custodian is authorized to loan securities on behalf of the Funds,
against receipt of collateral at least equal in value to the value of securities
loaned. Cash collateral is invested by the custodian in the INVESCO Treasurer's
Series Money Market Reserve Fund or securities issued or guaranteed by the U.S
Government, its agencies or instrumentalities. As of July 31, 2003, Dynamics,
Growth and Small Company Growth Funds have on loan securities valued at
$36,562,536, $16,407,099 and $31,945,909, respectively, and the cash collateral
of $36,892,514, $16,570,263 and $32,721,694, respectively, has been invested in
the INVESCO Treasurer's Series Money Market Reserve Fund and/or U.S. Government
obligations, and is disclosed in the Statement of Investment Securities. The
Fund bears the risk of any deficiency in the amount of collateral available for
return to a borrower due to a loss in an approved investment. The securities
loaned income is recorded in the Statement of Operations. Of the securities
lending income received for Dynamics, Growth and Small Company Growth Funds,
$274,266, $29,386 and $187,076, respectively, were received from INVESCO
Treasurer's Series Money Market Reserve Fund. During the year/period ended July
31, 2003, there were no such securities lending arrangements for Growth &
Income, Mid-Cap Growth, S&P 500 Index and Value Equity Funds.
NOTE 7 -- INTERFUND BORROWING AND LENDING. Each Fund is party to an interfund
lending agreement between each Fund and other INVESCO sponsored mutual funds,
which permit it to borrow or lend cash, at rates beneficial to both the
borrowing and lending funds. Loans totaling 10% or more of a borrowing Fund's
total assets are collateralized at 102% of the value of the loan; loans of less
than 10% are unsecured. The Funds may borrow up to 10% of its total net assets
for temporary or emergency purposes. During the year ended July 31, 2003,
Dynamics, Growth, Growth & Income, Small Company Growth and Value Equity Funds
borrowed cash at a weighted average rate ranging from 1.38% to 1.87% and
interest expense amounted to $55,111, $837, $811, $360 and $1,279, respectively.
During that same period, Dynamics, Growth and Small Company Growth Funds lent
cash at a weighted average rate ranging from 1.47% to 1.81% and interest income
amounted to $9,746, $534 and $5,923, respectively. During the year/period ended
July 31, 2003, there were no such borrowings and/or lendings for Mid-Cap Growth
or S&P 500 Index Funds.
NOTE 8 -- LINE OF CREDIT. Each Fund has available a Redemption Line of Credit
Facility ("LOC"), from a consortium of national banks, to be used for temporary
or emergency purposes to fund redemptions of investor shares. The LOC permits
borrowings to a maximum of 10% of the net assets at value of each respective
Fund. Each Fund agrees to pay annual fees and interest on the unpaid principal
balance based on prevailing market rates as defined in the agreement. During the
year/period ended July 31, 2003, there were no such borrowings for any Fund.
NOTE 9 -- CONTINGENT DEFERRED SALES CHARGE ("CDSC"). Class A shares may charge a
1.00% CDSC if a shareholder purchased $1,000,000 or more and redeemed these
shares within 18 months from the date of purchase. Effective November 15, 2002,
qualified plans investing in Class A shares may pay a 1% CDSC and Class K shares
may pay a 0.70% CDSC if a shareholder redeemed these shares within 12 months
from the date of purchase. A CDSC is charged by Class B shares on redemptions or
exchanges of shares at a maximum of 5.00% beginning at the time of purchase to
0.00% at the beginning of the seventh year. A 1.00% CDSC is charged by Class C
shares on redemptions or exchanges held thirteen months or less. Effective
August18, 2003, the 1.00% CDSC charged by Class C shares for redemptions or
exchanges held thirteen months or less will change to twelve months or less.
Shares acquired through reinvestment of dividends or other distributions are not
charged a CDSC. The CDSC may be reduced or certain sales charge exceptions may
apply. The CDSC is paid by the redeeming shareholder and therefore it is not an
expense of the Fund. For the year/period ended July 31, 2003, the Distributor
received the following CDSC from Class A, Class B, Class C and Class K
shareholders:
FUND CLASS A CLASS B CLASS C CLASS K
- --------------------------------------------------------------------------------------------
Dynamics Fund $ 0 $ 957 $ 6,239 $ 0
Growth Fund 0 1,736 1,563 0
Growth & Income Fund 0 0 296 0
Mid-Cap Growth Fund 0 1,526 363 --
Small Company Growth Fund 0 0 1,145 0
Value Equity Fund 0 2,573 680 --
NOTE 10 -- SHARE INFORMATION. Changes in fund share transactions during the
year/period ended July 31, 2003 and 2002 and the year/period ended April 30,
2003 were as follows:
DYNAMICS FUND GROWTH FUND GROWTH & INCOME FUND
YEAR ENDED JULY 31 YEAR ENDED JULY 31 YEAR ENDED JULY 31
- ----------------------------------------------------------------------------------------------------------------------------
2003 2002 2003 2002 2003 2002
(Note 1) (Note 1) (Note 1)
Shares Sold
Institutional Class 1,411,996 2,322,618 -- -- -- --
Investor Class 789,077,245 1,007,004,431 180,083,819 293,499,721 7,740,299 7,473,503
Class A 11,092,918 683,355 1,138,690 54,166 143,512 7,334
Class B 82,398 36,556 122,946 24,060 16,008 974
Class C 41,725,537 86,880,326 1,542,624 2,750,903 775,048 331,799
Class K 2,158,128 5,654,823 711,585 3,909,174 26,780 9,074
Shares Issued from
Reinvestment of Distributions
Institutional Class 0 966 -- -- -- --
Investor Class 0 533,720 0 2,965,102 0 94,244
Class C 0 3,443 0 24,279 0 2,346
Class K 0 5,305 0 15,456 0 17
</Table>
<Table>
<Caption>
DYNAMICS FUND GROWTH FUND GROWTH & INCOME FUND
YEAR ENDED JULY 31 YEAR ENDED JULY 31 YEAR ENDED JULY 31
- ----------------------------------------------------------------------------------------------------------------------------
2003 2002 2003 2002 2003 2002
(Note 1) (Note 1) (Note 1)
Shares Issued in Connection
with Acquisition of INVESCO
Endeavor Fund (Note 3)
Investor Class 4,491,385 -- -- -- -- --
Class A 47,716 -- -- -- -- --
Class B 1,207 -- -- -- -- --
Class C 80,743 -- -- -- -- --
Class K 93 -- -- -- -- --
============================================================================================================================
850,169,366 1,103,125,543 183,599,664 303,242,861 8,701,647 7,919,291
Shares Repurchased
Institutional Class (1,345,394) (686,853) -- -- -- --
Investor Class (833,286,306) (1,047,072,631) (243,226,206) (382,291,940) (8,174,420) (9,141,292)
Class A (10,850,031) (498,065) (429,724) (1,327) (98,312) (30)
Class B (8,718) (417) (70,280) 0 (1,600) 0
Class C (41,986,648) (87,310,751) (2,060,909) (3,466,283) (812,542) (344,432)
Class K (2,761,338) (1,503,717) (1,304,495) (2,000,943) (5,409) (670)
=============================================================================================================================
(890,238,435) (1,137,072,434) (247,091,614) (387,760,493) (9,092,283) (9,486,424)
NET DECREASE
IN FUND SHARES (40,069,069) (33,946,891) (63,491,950) (84,517,632) (390,636) (1,567,133)
=============================================================================================================================
NOTE 10 -- SHARE INFORMATION (CONTINUED).
MID-CAP GROWTH FUND
PERIOD
ENDED S&P 500 INDEX FUND
JULY 31 YEAR ENDED APRIL 30 YEAR ENDED JULY 31
- --------------------------------------------------------------------------------------------------------------------
2003 2003 2002 2003 2002
(Note 1) (Note 1) (Note 1)
Shares Sold
Institutional Class 3,864 47,746 81,292 422,994 5,390
Investor Class 160,744 705,662 -- 10,379,029 10,083,637
Class A 49,045 378,737 180,865 -- --
Class B 10,870 125,030 74,415 -- --
Class C 102,319 210,430 50,055 -- --
Shares Issued from
Reinvestment of Distributions
Institutional Class 0 0 0 3,773 667
Investor Class 0 0 0 176,457 100,207
====================================================================================================================
326,842 1,467,605 386,627 10,982,253 10,189,901
Shares Repurchased
Institutional Class (993) (130,099) (1,246,928) (38,165) (13,188)
Investor Class (89,794) (505,373) -- (5,907,559) (5,139,915)
Class A (29,944) (112,659) (5,155) -- --
Class B (2,938) (28,233) (2) -- --
Class C (99,974) (78,976) (15,362) -- --
====================================================================================================================
(223,643) (855,340) (1,267,447) (5,945,724) (5,153,103)
NET INCREASE (DECREASE) IN
FUND SHARES 103,199 612,265 (880,820) 5,036,529 5,036,798
====================================================================================================================
SMALL COMPANY GROWTH FUND VALUE EQUITY FUND
YEAR ENDED JULY 31 YEAR ENDED JULY 31
- -------------------------------------------------------------------------------------------------------
2003 2002 2003 2002
(Note 1) (Note 1)
Shares Sold
Investor Class 104,518,131 152,230,876 5,504,417 12,155,609
Class A 3,884,403 529,205 54,608 10,203
Class B 33,843 7,959 5,370 15,111
Class C 44,602,549 23,365,133 275,486 798,955
Class K 2,413,736 8,324,153 -- --
Shares Issued from
Reinvestment of Distributions
Investor Class 0 0 59,066 366,423
Class A 0 0 169 62
Class B 0 0 48 111
Class C 0 0 81 2,040
Class K 0 0 -- --
=======================================================================================================
155,452,662 184,457,326 5,899,245 13,348,514
Shares Repurchased
Investor Class (110,607,182) (166,398,528) (7,659,156) (14,187,444)
Class A (3,557,109) (219,415) (45,031) (146)
Class B (608) 0 (6,773) (284)
Class C (44,560,541) (23,392,895) (309,649) (744,206)
Class K (779,789) (436,821) -- --
========================================================================================================
(159,505,229) (190,447,659) (8,020,609) (14,932,080)
NET DECREASE IN
FUND SHARES (4,052,567) (5,990,333) (2,121,364) (1,583,566)
========================================================================================================
NOTE 11 -- SUBSEQUENT EVENTS. On June 9, 2003, the Board of Directors for Growth
Fund, Growth & Income Fund and Value Equity Fund ("Selling Funds") unanimously
approved an Agreement and Plan of Reorganization (the "Plan") pursuant to which
the Selling Funds, would transfer all of their assets and liabilities to AIM
Large Cap Growth Fund, AIM Blue Chip Fund and AIM Large Cap Basic Value Fund,
respectively, all in a series of AIM Equity Funds. The Plan has proposals for a
new investment advisory agreement and a new administrative services agreement
with A I M Advisors, Inc. The Plan is also seeking approval for a
redomestication of the Funds, changing the domicile and form of organization of
the Funds (which are currently organized as Maryland corporations) to a Delaware
statutory trust. The Plan is more fully described in a proxy statement presented
for shareholder consideration on August 25, 2003.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
INVESCO Stock Funds, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, 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 Dynamics Fund, Growth Fund, Growth
& Income Fund, Mid-Cap Growth Fund, S&P 500 Index Fund, Small Company Growth
Fund, and Value Equity Fund (constituting INVESCO Stock Funds, Inc. hereinafter
referred to as the "Fund") at July 31, 2003, the results of its operations for
the periods indicated, the changes in its net assets for the periods indicated
and the financial highlights for the periods indicated, in conformity with
accounting principles generally accepted in the United States of America. 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 auditing standards generally accepted in the United States of America,
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 July 31, 2003 by correspondence with the
custodian, transfer agent, and brokers, and the application of alternative
auditing procedures where securities purchased had not been received, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Denver, Colorado
August 29, 2003
FINANCIAL HIGHLIGHTS
DYNAMICS FUND -- INSTITUTIONAL CLASS
- -------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- --------------------------------------------------------------------------------------------------
2003 2002 2001 2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 10.88 $ 17.28 $ 27.87 $ 24.29
==================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.04) (0.08) (0.07) (0.02)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.12 (6.30) (10.44) 3.60
==================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 2.08 (6.38) (10.51) 3.58
==================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.02 0.08 0.00
==================================================================================================
Net Asset Value -- End of Period $ 12.96 $ 10.88 $ 17.28 $ 27.87
==================================================================================================
TOTAL RETURN 19.12% (36.95%) (37.78%) 14.74%(c)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 30,788 $ 25,133 $ 11,622 $ 22,989
Ratio of Expenses to Average Net Assets(d) 0.78% 0.84% 0.77% 0.77%(e)
Ratio of Net Investment Loss to Average
Net Assets (0.34%) (0.53%) (0.26%) (0.22%)(e)
Portfolio Turnover Rate 91% 81% 55% 75%(f)
(a) From May 23, 2000, inception of Class, to July 31, 2000.
(b) The per share information was computed based on average shares for the
years ended July 31, 2003, 2002 and 2001 and the period ended July 31,
2000.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Class, which is before any expense
offset arrangements (which may include custodian fees).
(e) Annualized
(f) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2000.
FINANCIAL HIGHLIGHTS
DYNAMICS FUND -- INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD YEAR
ENDED ENDED
YEAR ENDED JULY 31 JULY 31 APRIL 30
- ---------------------------------------------------------------------------------------------------------------------
2003 2002 2001 2000 1999(a) 1999
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 10.81 $ 17.23 $ 27.86 $ 19.39 $ 18.15 $ 16.41
=====================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss(c) (0.00) (0.00) (0.12) (0.00) (0.00) (0.00)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 2.00 (6.40) (10.43) 9.51 1.24 3.04
=====================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 2.00 (6.40) (10.55) 9.51 1.24 3.04
=====================================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.02 0.08 1.04 0.00 1.30
=====================================================================================================================
Net Asset Value -- End of Period $ 12.81 $ 10.81 $ 17.23 $ 27.86 $ 19.39 $ 18.15
=====================================================================================================================
TOTAL RETURN 18.50% (37.17%) (37.94%) 50.34% 6.83%(d) 20.83%
RATIOS
Net Assets -- End of Period
($000 Omitted) $3,863,821 $3,688,213 $6,562,467 $7,865,489 $2,471,482 $2,044,321
Ratio of Expenses to Average Net
Assets(e)(f) 1.21% 1.21% 1.00% 0.89% 1.03%(g) 1.05%
Ratio of Net Investment Loss to
Average Net Assets(f) (0.78%) (0.86%) (0.49%) (0.34%) (0.32%)(g) (0.41%)
Portfolio Turnover Rate 91% 81% 55% 75% 23%(d) 129%
(a) From May 1, 1999 to July 31, 1999.
(b) The per share information was computed based on average shares for the year
ended July 31, 2001.
(c) Net Investment Loss aggregated less than $0.01 on a per share basis for the
years ended July 31, 2003, 2002 and 2000, the period ended July 31, 1999
and the year ended April 30, 1999.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(f) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003 and 2002. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 1.46% and 1.23%, respectively, and ratio of net investment loss to
average net assets would have been (1.03%) and (0.88%), respectively.
(g) Annualized
FINANCIAL HIGHLIGHTS
DYNAMICS FUND -- CLASS A & CLASS B
- ----------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
CLASS A CLASS B
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31 JULY 31 JULY 31 JULY 31
- -----------------------------------------------------------------------------------------------------------------
2003 2002(a) 2003 2002(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 10.82 $ 15.30 $ 10.78 $ 15.30
=================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.09) (0.03) (0.08) (0.06)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 2.11 (4.45) 1.99 (4.46)
=================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 2.02 (4.48) 1.91 (4.52)
=================================================================================================================
Net Asset Value -- End of Period $ 12.84 $ 10.82 $ 12.69 $ 10.78
=================================================================================================================
TOTAL RETURN(c) 18.56% (29.22%)(d) 17.72% (29.54%)(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 6,108 $ 2,006 $ 1,409 $ 390
Ratio of Expenses to Average Net Assets(e)(f) 1.24% 1.11%(g) 1.96% 2.09%(g)
Ratio of Net Investment Loss to Average Net Assets(f) (0.81%) (0.76%)(g) (1.53%) (1.71%)(g)
Portfolio Turnover Rate 91% 81%(h) 91% 81%(h)
(a) From April 1, 2002, inception of Class, to July 31, 2002.
(b) The per share information for each class was computed based on average
shares for the period ended July 31, 2002.
(c) The applicable sales charge for Class A or CDSC for Class B is not included
in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(f) Various expenses of Class B were voluntarily absorbed by IFG for the year
ended July 31, 2003. If such expenses had not been voluntarily absorbed for
Class B, ratio of expenses to average net assets would have been 2.52% and
ratio of net investment loss to average net assets would have been (2.09%).
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2002.
FINANCIAL HIGHLIGHTS
DYNAMICS FUND -- CLASS C
- -------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- -------------------------------------------------------------------------------------------------------
2003 2002 2001 2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 10.60 $ 17.04 $ 27.78 $ 28.25
=======================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss(c) (0.18) (0.25) (0.06) (0.00)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 2.02 (6.17) (10.60) (0.47)
=======================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.84 (6.42) (10.66) (0.47)
=======================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.02 0.08 0.00
=======================================================================================================
Net Asset Value -- End of Period $ 12.44 $ 10.60 $ 17.04 $ 27.78
=======================================================================================================
TOTAL RETURN(d) 17.47% (37.76%) (38.45%) (1.66%)(e)
RATIOS
Net Assets -- End of Period ($000 Omitted) $13,537 $13,440 $28,887 $4,779
Ratio of Expenses to Average Net Assets(f)(g) 1.96% 1.96% 1.86% 1.71%(h)
Ratio of Net Investment Loss to Average Net Assets(g) (1.54%) (1.59%) (1.34%) (1.20%)(h)
Portfolio Turnover Rate 91% 81% 55% 75%(i)
(a) From February 15, 2000, inception of Class, to July 31, 2000.
(b) The per share information was computed based on average shares for the
period ended July 31, 2000.
(c) Net Investment Loss aggregated less than $0.01 on a per share basis for the
period ended July 31, 2000.
(d) The applicable CDSC is not included in the Total Return calculation.
(e) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(f) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(g) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003 and 2002. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 3.05% and 2.16%, respectively, and ratio of net investment loss to
average net assets would have been (2.63%) and (1.79%), respectively.
(h) Annualized
(i) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2000.
FINANCIAL HIGHLIGHTS
DYNAMICS FUND -- CLASS K
- ----------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- ----------------------------------------------------------------------------------------------
2003 2002 2001(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 10.76 $ 17.19 $ 22.50
==============================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.02) (0.15) (0.03)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 2.00 (6.26) (5.28)
==============================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.98 (6.41) (5.31)
==============================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.02 0.00
==============================================================================================
Net Asset Value -- End of Period $ 12.74 $ 10.76 $ 17.19
==============================================================================================
TOTAL RETURN 18.40% (37.32%) (23.60%)(c)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 45,258 $ 44,745 $ 6
Ratio of Expenses to Average Net Assets(d)(e) 1.41% 1.36% 1.48%(f)
Ratio of Net Investment Loss to Average Net Assets(e) (0.98%) (1.05%) (1.03%)(f)
Portfolio Turnover Rate 91% 81% 55%(g)
(a) From December 1, 2000, inception of Class, to July 31, 2001.
(b) The per share information was computed based on average shares for the year
ended July 31, 2002.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(e) Various expenses of the Class were voluntarily absorbed by IFG for the year
ended July 31, 2003 and the period ended July 31, 2001. If such expenses
had not been voluntarily absorbed, ratio of expenses to average net assets
would have been 1.61% and 3.06% (annualized), respectively, and ratio of
net investment loss to average net assets would have been (1.18%) and
(2.61%) (annualized), respectively.
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2001.
FINANCIAL HIGHLIGHTS
GROWTH FUND -- INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD YEAR
ENDED ENDED
YEAR ENDED JULY 31 JULY 31 APRIL 30
- ---------------------------------------------------------------------------------------------------------------------
2003 2002 2001 2000 1999(a) 1999
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 1.64 $ 3.08 $ 8.47 $ 6.75 $ 5.15 $ 6.06
=====================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Income (Loss)(c) (0.01) (0.03) (0.05) (0.00) (0.00) 0.02
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.17 (1.39) (4.27) 2.48 2.11 0.69
=====================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.16 (1.42) (4.32) 2.48 2.11 0.71
=====================================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.02 1.07 0.76 0.51 1.62
=====================================================================================================================
Net Asset Value -- End of Period $ 1.80 $ 1.64 $ 3.08 $ 8.47 $ 6.75 $ 5.15
=====================================================================================================================
TOTAL RETURN 9.76% (46.28%) (56.43%) 38.42% 42.06%(d) 13.42%
RATIOS
Net Assets -- End of Period
($000 Omitted) $462,978 $525,365 $1,251,042 $2,008,680 $1,232,908 $747,739
Ratio of Expenses to Average Net
Assets(e) 1.81% 1.55% 1.16% 1.02% 1.03%(f) 1.04%
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.63%) (1.20%) (0.96%) (0.63%) (0.08%)(f) 0.37%
Portfolio Turnover Rate 114% 129% 129% 168% 134%(d) 153%
(a) From September 1, 1998 to July 31, 1999.
(b) The per share information was computed based on average shares for the
years ended July 31, 2003, 2002 and 2001.
(c) Net Investment Loss aggregated less than $0.01 on a per share basis for the
year ended July 31, 2000 and the period ended July 31, 1999.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, which is before any expense
offset arrangements (which may include custodian, distribution and transfer
agent fees).
(f) Annualized
FINANCIAL HIGHLIGHTS
GROWTH FUND -- CLASS A & CLASS B
- ----------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
CLASS A CLASS B
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31 JULY 31 JULY 31 JULY 31
- -----------------------------------------------------------------------------------------------------------------
2003 2002(a) 2003 2002(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 1.64 $ 2.34 $ 1.63 $ 2.34
=================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.02) (0.01) (0.01) (0.01)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 0.17 (0.69) 0.17 (0.70)
=================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.15 (0.70) 0.16 (0.71)
=================================================================================================================
Net Asset Value -- End of Period $ 1.79 $ 1.64 $ 1.79 $ 1.63
=================================================================================================================
TOTAL RETURN(c) 9.15% (29.91%)(d) 9.82% (30.34%)(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 1,363 $ 87 $ 137 $ 39
Ratio of Expenses to Average Net Assets(e)(f) 1.62% 1.65%(g) 2.26% 2.30%(g)
Ratio of Net Investment Loss to Average Net Assets(f) (0.58%) (0.89%)(g) (1.13%) (1.59%)(g)
Portfolio Turnover Rate 114% 129%(h) 114% 129%(h)
(a) From April 1, 2002, inception of Class, to July 31, 2002.
(b) The per share information for each class was computed based on average
shares for the period ended July 31, 2002.
(c) The applicable sales charge for Class A or CDSC for Class B is not included
in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(f) Various expenses of each Class were voluntarily absorbed by IFG for the
year ended July 31, 2003 and the period ended July 31, 2002. If such
expenses had not been voluntarily absorbed, ratio of expenses to average
net assets would have been 1.68% and 1.99% (annualized), respectively, for
Class A and 8.94% and 4.56% (annualized), respectively, for Class B and
ratio of net investment loss to average net assets would have been (0.64%)
and (1.23%) (annualized), respectively, for Class A and (7.81%) and (3.85%)
(annualized), respectively, for Class B.
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2002.
FINANCIAL HIGHLIGHTS
GROWTH FUND -- CLASS C
- -------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- -------------------------------------------------------------------------------------------------------
2003 2002 2001 2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 1.60 $ 3.05 $ 8.44 $ 8.26
=======================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.03) (0.05) (0.03) (0.05)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 0.18 (1.38) (4.29) 0.23
=======================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.15 (1.43) (4.32) 0.18
=======================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.02 1.07 0.00
=======================================================================================================
Net Asset Value -- End of Period $ 1.75 $ 1.60 $ 3.05 $ 8.44
=======================================================================================================
TOTAL RETURN(c) 9.38% (47.07%) (56.67%) 2.18%(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 3,103 $ 3,669 $ 9,108 $ 3,213
Ratio of Expenses to Average Net Assets(e)(f) 2.27% 3.03% 2.04% 1.76%(g)
Ratio of Net Investment Loss to Average Net Assets(f) (1.09%) (2.69%) (1.82%) (1.54%)(g)
Portfolio Turnover Rate 114% 129% 129% 168%(h)
(a) From February 15, 2000, inception of Class, to July 31, 2000.
(b) The per share information was computed based on average shares for the
period ended July 31, 2000.
(c) The applicable CDSC is not included in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(f) Various expenses of the Class were voluntarily absorbed by IFG for the year
ended July 31, 2003. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 4.36% and ratio of
net investment loss to average net assets would have been (3.18%).
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2000.
FINANCIAL HIGHLIGHTS
GROWTH FUND -- CLASS K
- -----------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- -----------------------------------------------------------------------------------------------------------
2003 2002 2001(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 1.50 $ 3.03 $ 5.41
===========================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.01) (0.02) (0.02)
Net Gains or (Losses) on Securities (Both Realized and Unrealized) 0.16 (1.49) (2.36)
===========================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.15 (1.51) (2.38)
===========================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.02 0.00
===========================================================================================================
Net Asset Value -- End of Period $ 1.65 $ 1.50 $ 3.03
===========================================================================================================
TOTAL RETURN 10.00% (50.02%) (43.99%)(c)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 2,197 $ 2,888 $ 8
Ratio of Expenses to Average Net Assets(d)(e) 1.72% 2.32% 2.96%(f)
Ratio of Net Investment Loss to Average Net Assets(e) (0.55%) (1.91%) (2.72%)(f)
Portfolio Turnover Rate 114% 129% 129%(g)
(a) From December 1, 2000, inception of Class, to July 31, 2001.
(b) The per share information was computed based on average shares for the year
ended July 31, 2003 and the period ended July 31, 2001.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(e) Various expense of the Class were voluntarily absorbed by IFG for the year
ended July 31, 2003. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 2.79% and ratio of
net investment loss to average net assets would have been (1.62%).
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2001.
FINANCIAL HIGHLIGHTS
GROWTH & INCOME FUND -- INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD YEAR
ENDED ENDED
YEAR ENDED JULY 31 JULY 31 APRIL 30
- ---------------------------------------------------------------------------------------------------------------------
2003 2002 2001 2000 1999(a) 1999
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 6.22 $ 10.21 $ 18.93 $ 15.37 $ 14.54 $ 10.00
=====================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Loss(d) (0.02) (0.08) (0.00) (0.00) (0.00) (0.00)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.47 (3.81) (7.93) 4.60 0.83 5.22
=====================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.45 (3.89) (7.93) 4.60 0.83 5.22
=====================================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.10 0.79 1.04 0.00 0.68
=====================================================================================================================
Net Asset Value -- End of Period $ 6.67 $ 6.22 $ 10.21 $ 18.93 $ 15.37 $ 14.54
=====================================================================================================================
TOTAL RETURN 7.23% (38.37%) (43.25%) 30.79% 5.71%(e) 53.07%(e)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 44,362 $ 44,018 $ 88,409 $ 200,584 $ 61,316 $ 53,994
Ratio of Expenses to Average Net
Assets(f)(g) 1.50% 1.50% 1.51% 1.46% 1.52%(h) 1.52%(h)
Ratio of Net Investment Loss to Average
Net Assets(g) (0.27%) (0.98%) (0.99%) (0.85%) (0.45%)(h) (0.25%)(h)
Portfolio Turnover Rate 164% 82% 218% 177% 46%(e) 121%(e)
(a) From May 1, 1999 to July 31, 1999.
(b) From July 1, 1998, inception of Class, to April 30, 1999.
(c) The per share information was computed based on average shares for the
years ended July 31, 2003 and 2002.
(d) Net Investment Loss aggregated less than $0.01 on a per share basis for the
years ended July 31, 2001 and 2000 and the periods ended July 31, 1999 and
April 30, 1999.
(e) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(f) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(g) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003, 2002, 2001 and 2000 and the periods ended July
31, 1999 and April 30, 1999. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 2.70%,
2.40%, 1.69%, 1.46%, 1.75% (annualized) and 1.71% (annualized),
respectively, and ratio of net investment loss to average net assets would
have been (1.47%), (1.88%), (1.17%), (0.85%), (0.68%) (annualized) and
(0.44%) (annualized), respectively.
(h) Annualized
FINANCIAL HIGHLIGHTS
GROWTH & INCOME FUND -- CLASS A & CLASS B
- ----------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
CLASS A CLASS B
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31 JULY 31 JULY 31 JULY 31
- -----------------------------------------------------------------------------------------------------------------
2003 2002(a) 2003 2002(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 6.22 $ 8.54 $ 6.19 $ 8.54
=================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.07) (0.02) (0.09) (0.02)
Net Gains or (Losses) on Securities (Both
Realized and Unrealized) 0.53 (2.30) 0.51 (2.33)
=================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.46 (2.32) 0.42 (2.35)
=================================================================================================================
Net Asset Value -- End of Period $ 6.68 $ 6.22 $ 6.61 $ 6.19
=================================================================================================================
TOTAL RETURN(c) 7.40% (27.17%)(d) 6.61% (27.40%)(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 351 $ 45 $ 102 $ 6
Ratio of Expenses to Average Net Assets(e)(f) 1.60% 1.60%(g) 2.25% 2.30%(g)
Ratio of Net Investment Loss to Average Net Assets(f) (0.27%) (1.04%)(g) (0.92%) (1.80%)(g)
Portfolio Turnover Rate .164% 82%(h) 164% 82%(h)
(a) From April 1, 2002, inception of Class, to July 31, 2002.
(b) The per share information for each class was computed based on average
shares for the period ended July 31, 2002.
(c) The applicable sales charge for Class A or CDSC for Class B is not included
in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(f) Various expenses of each Class were voluntarily absorbed by IFG for the
year ended July 31, 2003 and the period ended July 31, 2002. If such
expenses had not been voluntarily absorbed, ratio of expenses to average
net assets would have been 2.41% and 4.55% (annualized), respectively, for
Class A and 11.60% and 62.08% (annualized), respectively, for Class B, and
ratio of net investment loss to average net assets would have been (1.08%)
and (3.99%) (annualized), respectively, for Class A and (10.27%) and
(61.58%) (annualized), respectively, for Class B.
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2002.
FINANCIAL HIGHLIGHTS
GROWTH & INCOME FUND -- CLASS C
- -------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- -------------------------------------------------------------------------------------------------------
2003 2002 2001 2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 6.10 $ 10.09 $ 18.87 $ 18.19
=======================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.06) (0.05) (0.03) (0.13)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 0.45 (3.84) (7.96) 0.81
=======================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.39 (3.89) (7.99) 0.68
=======================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.10 0.79 0.00
=======================================================================================================
Net Asset Value -- End of Period $ 6.49 $ 6.10 $ 10.09 $ 18.87
=======================================================================================================
TOTAL RETURN(c) 6.39% (38.83%) (43.72%) 3.74%(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 1,067 $ 1,231 $ 2,142 $ 1,388
Ratio of Expenses to Average Net Assets(e)(f) 2.25% 2.25% 2.27% 2.00%(g)
Ratio of Net Investment Loss to Average Net Assets(f) (1.04%) (1.72%) (1.78%) (1.63%)(g)
Portfolio Turnover Rate 164% 82% 218% 177%(h)
(a) From February 15, 2000, inception of Class, to July 31, 2000.
(b) The per share information was computed based on average shares for the
period ended July 31, 2000.
(c) The applicable CDSC is not included in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(f) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003, 2002 and 2001. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 4.51%, 3.33% and 2.32%, respectively, and ratio of net investment loss
to average net assets would have been (3.30%), (2.80%) and (1.83%),
respectively.
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2000.
FINANCIAL HIGHLIGHTS
GROWTH & INCOME FUND -- CLASS K
- -----------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- ------------------------------------------------------------------------------------------------------
2003 2002 2001(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 6.20 $ 10.21 $ 15.22
======================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.06) (0.08) (0.02)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 0.50 (3.83) (4.99)
======================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.44 (3.91) (5.01)
======================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.10 0.00
======================================================================================================
Net Asset Value -- End of Period $ 6.64 $ 6.20 $ 10.21
======================================================================================================
TOTAL RETURN 7.10% (38.57%) (32.92%)(c)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 205 $ 58 $ 10
Ratio of Expenses to Average Net Assets(d)(e) 1.70% 1.70% 1.81%(f)
Ratio of Net Investment Loss to Average Net Assets(e) (0.46%) (1.18%) (1.31%)(f)
Portfolio Turnover Rate 164% 82% 218%(g)
(a) From December 1, 2000, inception of Class, to July 31, 2001.
(b) The per share information was computed based on average shares for the
period ended July 31, 2001.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(e) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003 and 2002 and the period ended July 31, 2001. If
such expenses had not been voluntarily absorbed, ratio of expenses to
average net assets would have been 7.51%, 30.95% and 2.68% (annualized),
respectively, and ratio of net investment loss to average net assets would
have been (6.27%), (30.43%) and (2.18%) (annualized), respectively.
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2001.
FINANCIAL HIGHLIGHTS
MID-CAP GROWTH FUND -- INSTITUTIONAL CLASS
- -----------------------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD PERIOD
ENDED ENDED
JULY 31 YEAR ENDED APRIL 30 APRIL 30
- -----------------------------------------------------------------------------------------------------------------------------
2003(a) 2003 2002 2001 2000 1999(b)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 12.69 $ 14.94 $ 14.78 $ 19.03 $ 12.76 $ 10.00
=============================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Loss (0.03) (0.11) (0.15)(d) (0.13) (0.12) (0.02)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 1.38 (2.14) 0.31(d) (2.38) 6.41 2.78
=============================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.35 (2.25) 0.16 (2.51) 6.29 2.76
=============================================================================================================================
Less Dividends and Distributions 0.00 0.00 0.00 1.64 0.02 0.00
Tax Return of Capital 0.00 0.00 0.00 0.10 0.00 0.00
=============================================================================================================================
TOTAL DISTRIBUTIONS 0.00 0.00 0.00 1.74 0.02 0.00
=============================================================================================================================
Net Asset Value -- End of Period $ 14.04 $ 12.69 $ 14.94 $ 14.78 $ 19.03 $ 12.76
=============================================================================================================================
TOTAL RETURN 10.64%(e) (15.06%) 1.08% (13.60%) 49.49% 27.50%(e)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 1,269 $ 1,111 $ 2,538 $ 19,742 $ 17,703 $ 6,185
Ratio of Expenses to Average Net Assets(f)(g) 1.30%(h) 1.30% 1.30% 1.30% 1.31% 1.30%(h)
Ratio of Net Investment Loss to
Average Net Assets(g) (0.93%)(h) (0.83%) (1.06%) (0.90%) (0.95%) (0.68%)(h)
Portfolio Turnover Rate 23%(e) 50% 23% 41% 42% 24%(e)
(a) From May 1, 2003 to July 31, 2003, the Fund's current fiscal year end.
(b) From September 10, 1998, inception of Class, to April 30, 1999.
(c) The per share information was computed based on average shares for the
period ended July 31, 2003 and the year ended April 30, 2003.
(d) Per share data has been restated.
(e) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(f) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(g) Various Expenses of the Class were voluntarily absorbed by IFG for the
period ended July 31, 2003 and the year ended April 30, 2003. Various
Expenses were voluntarily absorbed by IFG for the period of October 2, 2001
to April 30, 2002 and by Pell Rudman Trust Company, N.A. for the period of
May 1, 2001 to October 1, 2001, representing the year ended April 30, 2002.
Various Expenses were voluntarily absorbed by Pell Rudman Trust Company,
N.A. for the years ended April 30, 2001 and 2000 and the period ended April
30, 1999. If such expenses had not been voluntarily absorbed, ratio of
expenses to average net assets would have been 3.15% (annualized), 3.35%,
2.29%, 1.88%, 2.48% and 7.74% (annualized), respectively, and ratio of net
investment loss to average net assets would have been (2.78%) (annualized),
(2.88%), (2.05%), (1.48%), (2.12%) and (7.12%) (annualized), respectively.
(h) Annualized
FINANCIAL HIGHLIGHTS
MID-CAP GROWTH FUND -- INVESTOR CLASS
- ---------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD PERIOD
ENDED ENDED
JULY 31 APRIL 30
- ---------------------------------------------------------------------------------------------
2003(a) 2003(b)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 12.66 $ 11.66
=============================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Loss (0.01) (0.07)
Net Gains on Securities (Both Realized and Unrealized) 1.35 1.07
=============================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.34 1.00
=============================================================================================
Net Asset Value -- End of Period $ 14.00 $ 12.66
=============================================================================================
TOTAL RETURN 10.58%(d) 8.58%(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 3,798 $ 2,536
Ratio of Expenses to Average Net Assets(e)(f) 1.55%(g) 1.55%(g)
Ratio of Net Investment Loss to Average Net Assets(f) (1.18%)(g) (1.01%)(g)
Portfolio Turnover Rate 23%(d) 50%(h)
(a) From May 1, 2003 to July 31, 2003, the Fund's current fiscal year end.
(b) From September 4, 2002, inception of Class, to April 30, 2003.
(c) The per share information was computed based on average shares for the
period ended April 30, 2003.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(f) Various Expenses of the Class were voluntarily absorbed by IFG for the
periods ended July 31, 2003 and April 30, 2003. If such expenses had not
been voluntarily absorbed, ratio of expenses to average net assets would
have been 3.55% (annualized) and 3.57% (annualized), respectively, and
ratio of net investment loss to average net assets would have been (3.18%)
(annualized) and (3.03%) (annualized), respectively.
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended April 30, 2003.
FINANCIAL HIGHLIGHTS
MID-CAP GROWTH FUND -- CLASS A
- -------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD YEAR PERIOD
ENDED ENDED ENDED
JULY 31 APRIL 30 APRIL 30
- -------------------------------------------------------------------------------------------------------------
2003(a) 2003 2002(b)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 12.65 $ 14.95 $ 11.80
=============================================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Loss(d) (0.00) (0.12) (0.10)(e)
Net Gains or (Losses) on Securities (Both Realized and Unrealized) 1.33 (2.18) 3.25(e)
=============================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.33 (2.30) 3.15
=============================================================================================================
Net Asset Value -- End of Period $ 13.98 $ 12.65 $ 14.95
=============================================================================================================
TOTAL RETURN(f) 10.51%(g) (15.38%) 26.69%(g)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 6,444 $ 5,587 $ 2,627
Ratio of Expenses to Average Net Assets(h)(i) 1.65%(j) 1.65% 1.65%(j)
Ratio of Net Investment Loss to Average Net Assets(i) (1.28%)(j) (1.16%) (1.44%)(j)
Portfolio Turnover Rate 23%(g) 50% 23%(k)
(a) From May 1, 2003 to July 31, 2003, the Fund's current fiscal year end.
(b) From October 2, 2001, inception of Class, to April 30, 2002.
(c) The per share information was computed based on average shares for the
period ended April 30, 2002.
(d) Net Investment Loss aggregated less than $0.01 on a per share basis for the
period ended July 31, 2003.
(e) Per share data has been restated.
(f) The applicable sales charge is not included in the Total Return
calculation.
(g) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(h) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(i) Various Expenses of the Class were voluntarily absorbed by IFG for the
period ended July 31, 2003, the year ended and April 30, 2003 and the
period ended April 30, 2002. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 2.85%
(annualized), 2.77% and 3.09% (annualized), respectively, and ratio of net
investment loss to average net assets would have been (2.48%) (annualized),
(2.28%) and (2.88%) (annualized), respectively.
(j) Annualized
(k) Portfolio Turnover is calculated at the Fund level. Represents the year
ended April 30, 2002.
FINANCIAL HIGHLIGHTS
MID-CAP GROWTH FUND -- CLASS B
- --------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD YEAR PERIOD
ENDED ENDED ENDED
JULY 31 APRIL 30 APRIL 30
- --------------------------------------------------------------------------------------------------------------
2003(a) 2003 2002(b)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 12.49 $ 14.86 $ 11.80
==============================================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Loss (0.02) (0.17) (0.15)(d)
Net Gains or (Losses) on Securities (Both Realized
and Unrealized) 1.32 (2.20) 3.21(d)
==============================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.30 (2.37) 3.06
==============================================================================================================
Net Asset Value -- End of Period $ 13.79 $ 12.49 $ 14.86
==============================================================================================================
TOTAL RETURN(e) 10.41%(f) (15.95%) 25.93%(f)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 2,470 $ 2,139 $ 1,106
Ratio of Expenses to Average Net Assets(g)(h) 2.30%(i) 2.30% 2.30%(i)
Ratio of Net Investment Loss to Average Net Assets(h) (1.92%)(i) (1.81%) (2.14%)(i)
Portfolio Turnover Rate 23%(f) 50% 23%(j)
(a) From May 1, 2003 to July 31, 2003, the Fund's current fiscal year end.
(b) From October 2, 2001, inception of Class, to April 30, 2002.
(c) The per share information was computed based on average shares for the
period ended April 30, 2002.
(d) Per share data has been restated.
(e) The applicable CDSC is not included in the Total Return calculation.
(f) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(g) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(h) Various Expenses of the Class were voluntarily absorbed by IFG for the
period ended July 31, 2003, the year ended April 30, 2003 and the period
ended April 30, 2002. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 3.68% (annualized),
3.71% and 4.06% (annualized), respectively, and ratio of net investment
loss to average net assets would have been (3.30%) (annualized), (3.22%)
and (3.90%) (annualized), respectively.
(i) Annualized
(j) Portfolio Turnover is calculated at the Fund level. Represents the year
ended April 30, 2002.
FINANCIAL HIGHLIGHTS
MID-CAP GROWTH FUND -- CLASS C
- -------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD YEAR PERIOD
ENDED ENDED ENDED
JULY 31 APRIL 30 APRIL 30
- -------------------------------------------------------------------------------------------------------------
2003(a) 2003 2002(b)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 12.42 $ 14.84 $ 11.80
=============================================================================================================
INCOME FROM INVESTMENT OPERATIONS(c)
Net Investment Loss (0.02) (0.25) (0.14)(d)
Net Gains or (Losses) on Securities (Both Realized and Unrealized) 1.30 (2.17) 3.18(d)
=============================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.28 (2.42) 3.04
=============================================================================================================
Net Asset Value -- End of Period $ 13.70 $ 12.42 $ 14.84
=============================================================================================================
TOTAL RETURN(e) 10.31%(f) (16.31%) 25.76%(f)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 2,308 $ 2,063 $ 515
Ratio of Expenses to Average Net Assets(g)(h) 2.30%(i) 2.30% 2.30%(i)
Ratio of Net Investment Loss to Average Net Assets(h) (1.92%)(i) (1.80%) (2.13%)(i)
Portfolio Turnover Rate 23%(f) 50% 23%(j)
(a) From May 1, 2003 to July 31, 2003, the Fund's current fiscal year end.
(b) From October 2, 2001, inception of Class, to April 30, 2002.
(c) The per share information was computed based on average shares for the
period ended April 30, 2002.
(d) Per share data has been restated.
(e) The applicable CDSC is not included in the Total Return calculation.
(f) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(g) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(h) Various Expenses of the Class were voluntarily absorbed by IFG for the
period ended July 31, 2003, the year ended April 30, 2003 and the period
ended April 30, 2002. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 3.86% (annualized),
3.88% and 4.45% (annualized), respectively, and ratio of net investment
loss to average net assets would have been (3.48%) (annualized), (3.38%)
and (4.28%) (annualized), respectively.
(i) Annualized
(j) Portfolio Turnover is calculated at the Fund level. Represents the year
ended April 30, 2002.
FINANCIAL HIGHLIGHTS
S&P 500 INDEX FUND -- INSTITUTIONAL CLASS
- -------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR ENDED JULY 31
- -------------------------------------------------------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 9.23 $ 12.45 $ 15.07 $ 14.21 $ 12.01
=============================================================================================================
INCOME FROM INVESTMENT OPERATIONS(a)
Net Investment Income 0.13 0.08 0.19 0.15 0.18
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.78 (3.11) (2.44) 1.05 2.26
=============================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.91 (3.03) (2.25) 1.20 2.44
=============================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.17 0.19 0.37 0.34 0.24
=============================================================================================================
Net Asset Value -- End of Period $ 9.97 $ 9.23 $ 12.45 $ 15.07 $ 14.21
=============================================================================================================
TOTAL RETURN 9.98% (24.50%) (15.09%) 8.47% 20.40%
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 4,239 $ 338 $ 544 $ 2,627 $ 4,420
Ratio of Expenses to Average Net Assets(b)(c) 0.35% 0.35% 0.35% 0.36% 0.35%
Ratio of Net Investment Income to Average
Net Assets(c) 1.35% 1.15% 1.03% 1.00% 1.36%
Portfolio Turnover Rate 1% 3% 43% 13% 2%
(a) The per share information was computed based on average shares for the
years ended July 31, 2003 and 2001.
(b) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(c) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003, 2002, 2001, 2000 and 1999. If such expenses had
not been voluntarily absorbed, ratio of expenses to average net assets
would have been 2.18%, 7.36%, 1.84%, 1.00% and 1.17%, respectively, and
ratio of net investment income (loss) to average net assets would have been
(0.48%), (5.86%), (0.46%), 0.36% and 0.54%, respectively.
FINANCIAL HIGHLIGHTS
S&P 500 INDEX FUND -- INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR ENDED JULY 31
- ---------------------------------------------------------------------------------------------------------
2003 2002 2001 2000 1999
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 9.59 $ 12.78 $ 15.36 $ 14.39 $ 12.14
=========================================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.10 0.09 0.10 0.11 0.14
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 0.82 (3.19) (2.39) 1.09 2.29
=========================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 0.92 (3.10) (2.29) 1.20 2.43
=========================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.10 0.09 0.29 0.23 0.18
=========================================================================================================
Net Asset Value -- End of Period $ 10.41 $ 9.59 $ 12.78 $ 15.36 $ 14.39
=========================================================================================================
TOTAL RETURN 9.73% (24.33%) (15.07%) 8.34% 20.09%
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 195,668 $ 135,578 $ 116,309 $ 92,784 $ 64,613
Ratio of Expenses to Average Net
Assets(a)(b) 0.65% 0.65% 0.63% 0.63% 0.60%
Ratio of Net Investment Income to Average
Net Assets(b) 1.15% 0.84% 0.75% 0.74% 1.06%
Portfolio Turnover Rate 1% 3% 43% 13% 2%
(a) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(b) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003, 2002, 2001, 2000 and 1999. If such expenses had
not been voluntarily absorbed, ratio of expenses to average net assets
would have been 1.05%, 1.01%, 0.99%, 0.95% and 0.99%, respectively, and
ratio of net investment income to average net assets would have been 0.75%,
0.48%, 0.39%, 0.43% and 0.67%, respectively.
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND -- INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD YEAR
ENDED ENDED
YEAR ENDED JULY 31 JULY 31 MAY 31
- ---------------------------------------------------------------------------------------------------------------------
2003 2002 2001 2000 1999(a) 1999
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 8.41 $ 12.76 $ 18.50 $ 13.61 $ 12.08 $ 11.90
=====================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss(c) (0.00) (0.01) (0.04) (0.00) (0.00) (0.00)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.58 (4.34) (4.77) 6.88 1.53 1.35
=====================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.58 (4.35) (4.81) 6.88 1.53 1.35
=====================================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.00 0.93 1.99 0.00 1.17
=====================================================================================================================
Net Asset Value -- End of Period $ 9.99 $ 8.41 $ 12.76 $ 18.50 $ 13.61 $ 12.08
=====================================================================================================================
TOTAL RETURN 18.79% (34.09%) (26.53%) 53.55% 12.67%(d) 12.91%
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 890,227 $ 800,520 $ 1,395,113 $ 1,440,445 $ 452,861 $ 318,109
Ratio of Expenses to Average Net
Assets(e)(f) 1.50% 1.45% 1.29% 1.20% 1.50%(g) 1.51%
Ratio of Net Investment Loss to
Average Net Assets(f) (0.94%) (1.01%) (0.28%) (0.34%) (0.69%)(g) (0.58%)
Portfolio Turnover Rate 119% 99% 112% 186% 41%(d) 203%
(a) From June 1, 1999 to July 31, 1999.
(b) The per share information was computed based on average shares for the year
ended July 31, 2001.
(c) Net Investment Loss aggregated less than $0.01 on a per share basis for the
years ended July 31, 2003 and 2000, the period ended July 31, 1999 and the
year ended May 31, 1999.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(f) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003 and 2000, the period ended July 31, 1999, and the
year ended May 31, 1999. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 1.67%,
1.21%, 1.62% (annualized) and 1.59%, respectively, and ratio of net
investment loss to average net assets would have been (1.11%), (0.35%),
(0.81%) (annualized) and (0.66%), respectively.
(g) Annualized
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND -- CLASS A & CLASS B
- ----------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
CLASS A CLASS B
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31 JULY 31 JULY 31 JULY 31
- -----------------------------------------------------------------------------------------------------------------
2003 2002(a) 2003 2002(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 8.41 $ 11.25 $ 8.41 $ 11.25
=================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.01) (0.02) (0.07) (0.04)
Net Gains or (Losses) on Securities (Both
Realized and Unrealized) 1.60 (2.82) 1.57 (2.80)
=================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.59 (2.84) 1.50 (2.84)
=================================================================================================================
Net Asset Value-- End of Period $ 10.00 $ 8.41 $ 9.91 $ 8.41
=================================================================================================================
TOTAL RETURN(c) 18.91% (25.24%)(d) 17.84% (25.24%)(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 6,372 $ 2,607 $ 408 $ 67
Ratio of Expenses to Average Net Assets(e)(f) 1.38% 1.24%(g) 2.25% 2.14%(g)
Ratio of Net Investment Loss to Average Net Assets(f) (0.69%) (0.74%)(g) (1.61%) (1.68%)(g)
Portfolio Turnover Rate 119% 99%(h) 119% 99%(h)
(a) From April 1, 2002, inception of Class, to July 31, 2002.
(b) The per share information for each class was computed using average shares
for the period ended July 31, 2002.
(c) The applicable sales charge for Class A or CDSC for Class B are not
included in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
the Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(f) Various expenses of Class B were voluntarily absorbed by IFG for the year
ended July 31, 2003. If such expenses had not been voluntarily absorbed for
Class B, ratio of expenses to average net assets would have been 4.00% and
ratio of net investment loss to average net assets would have been (3.36%).
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2002.
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND -- CLASS C
- -------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- -------------------------------------------------------------------------------------------------------
2003 2002 2001 2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 8.09 $ 12.54 $ 18.37 $ 20.68
=======================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss(c) (0.18) (0.18) (0.12) (0.00)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.58 (4.27) (4.78) (2.31)
=======================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.40 (4.45) (4.90) (2.31)
=======================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.00 0.00 0.93 0.00
=======================================================================================================
Net Asset Value -- End of Period $ 9.49 $ 8.09 $ 12.54 $ 18.37
=======================================================================================================
TOTAL RETURN(d) 17.45% (35.57%) (27.24%) (11.17%)(e)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 1,673 $ 1,087 $ 2,034 $ 1,926
Ratio of Expenses to Average Net Assets(f)(g) 2.25% 2.25% 2.13% 1.83%(h)
Ratio of Net Investment Loss to Average Net Assets(g) (1.73%) (1.81%) (1.12%) (0.91%)(h)
Portfolio Turnover Rate 119% 99% 112% 186%(i)
(a) From February 15, 2000, inception of Class, to July 31, 2000.
(b) The per share information was computed based on average shares for the year
ended July 31, 2002.
(c) Net Investment Loss aggregated less than $0.01 on a per share basis for the
period ended July 31, 2000.
(d) The applicable CDSC is not included in the Total Return calculation.
(e) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(f) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
the Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(g) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003 and 2002. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 3.55% and 2.70%, respectively, and ratio of net investment loss to
average net assets would have been (3.03%) and (2.26%), respectively.
(h) Annualized
(i) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2000.
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND -- CLASS K
- --------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR PERIOD
ENDED ENDED
JULY 31 JULY 31
- --------------------------------------------------------------------------------------------
2003 2002(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 8.43 $ 11.76
============================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Loss (0.01) (0.05)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.57 (3.28)
============================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.56 (3.33)
============================================================================================
Net Asset Value -- End of Period $ 9.99 $ 8.43
============================================================================================
TOTAL RETURN 18.51% (28.32%)(c)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 95,105 $ 66,451
Ratio of Expenses to Average Net Assets(d)(e) 1.70% 1.17%(f)
Ratio of Net Investment Loss to Average Net Assets(e) (1.12%) (0.80%)(f)
Portfolio Turnover Rate 119% 99%(g)
(a) From December 17, 2001, inception of Class, to July 31, 2002.
(b) The per share information was computed based on average shares for and the
period ended July 31, 2002.
(c) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(d) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
the Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(e) Various expenses of the Class were voluntarily absorbed by IFG for the year
ended July 31, 2003. If such expenses had not been voluntarily absorbed,
ratio of expenses to average net assets would have been 3.12% and ratio of
net investment loss to average net assets would have been (2.54%).
(f) Annualized
(g) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2002.
FINANCIAL HIGHLIGHTS
VALUE EQUITY FUND-- INVESTOR CLASS
- ---------------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD YEAR
ENDED ENDED
YEAR ENDED JULY 31 JULY 31 MAY 31
- ---------------------------------------------------------------------------------------------------------------------
2003 2002 2001 2000 1999(a) 1999
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 16.23 $ 21.19 $ 25.15 $ 29.61 $ 25.68 $ 28.30
=====================================================================================================================
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.16 0.11 0.11 0.11 0.17 0.26
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.14 (4.29) (0.15) (1.96) 6.25 (0.43)
=====================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.30 (4.18) (0.04) (1.85) 6.42 (0.17)
=====================================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.16 0.78 3.92 2.61 2.49 2.45
=====================================================================================================================
Net Asset Value -- End of Period $ 17.37 $ 16.23 $ 21.19 $ 25.15 $ 29.61 $ 25.68
=====================================================================================================================
TOTAL RETURN 8.10% (20.28%) 0.20% (6.52%) 25.41%(b) (1.06%)
RATIOS
Net Assets -- End of Period
($000 Omitted) $ 97,713 $ 125,313 $ 198,905 $ 248,944 $ 369,982 $ 349,984
Ratio of Expenses to Average Net
Assets(c)(d) 1.30% 1.30% 1.31% 1.31% 1.27%(e) 1.15%
Ratio of Net Investment Income to
Average Net Assets(d) 0.99% 0.55% 0.48% 0.40% 0.63%(e) 0.86%
Portfolio Turnover Rate 67% 43% 54% 67% 22%(b) 48%
(a) From September 1, 1998 to July 31, 1999.
(b) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(c) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Advisor, which is before any offset arrangements (which may
include custodian fees).
(d) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003, 2002, 2001 and 2000, the period ended July 31,
1999 and the year ended August 31, 1998. If such expenses had not been
voluntarily absorbed, ratio of expenses to average net assets would have
been 1.86%, 1.64%, 1.53%, 1.44%, 1.38% (annualized) and 1.19%,
respectively, and ratio of net investment income to average net assets
would have been 0.43%, 0.21%, 0.26%, 0.27%, 0.52% (annualized) and 0.82%,
respectively.
(e) Annualized
FINANCIAL HIGHLIGHTS
VALUE EQUITY FUND -- CLASS A & CLASS B
- ----------------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
CLASS A CLASS B
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
JULY 31 JULY 31 JULY 31 JULY 31
- -----------------------------------------------------------------------------------------------------------------
2003 2002(a) 2003 2002(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 16.09 $ 20.20 $ 16.18 $ 20.20
=================================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Income (Loss) 0.16 0.06 0.02 (0.01)
Net Gains or (Loss) on Securities
(Both Realized and Unrealized) 1.10 (3.98) 1.16 (3.86)
=================================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.26 (3.92) 1.18 (3.87)
=================================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.24 0.19 0.05 0.15
=================================================================================================================
Net Asset Value -- End of Period $ 17.11 $ 16.09 $ 17.31 $ 16.18
=================================================================================================================
TOTAL RETURN(c) 7.94% (19.46%)(d) 7.30% (19.21%)(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 340 $ 163 $ 235 $ 242
Ratio of Expenses to Average Net Assets(e)(f) 1.40% 1.39%(g) 2.05% 1.95%(g)
Ratio of Net Investment Income (Loss) to Average
Net Assets(f) 1.01% 0.51%(g) 0.23% (0.22%)(g)
Portfolio Turnover Rate 67% 43%(h) 67% 43%(h)
(a) From April 1, 2002, inception of Class, to July 31, 2002.
(b) The per share information for Class B was computed based on average shares
for the period July 31, 2002.
(c) The applicable sales charge for Class A or CDSC for Class B is not included
in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
the Investment Adviser, if applicable, which is before any expense offset
arrangements (which may include custodian fees).
(f) Various Expenses of each Class were voluntarily absorbed by IFG for the
year ended July 31, 2003. If such expenses had not been voluntarily
absorbed, ratio of expenses to average net assets would have been 2.75% for
Class A and 3.48% for Class B, and ratio of net investment loss to average
net assets would have been (0.34%) for Class A and (1.20%) for Class B.
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2002.
FINANCIAL HIGHLIGHTS
VALUE EQUITY FUND -- CLASS C
- -------------------------------------------------------------------------------------------------------
(FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
PERIOD
ENDED
YEAR ENDED JULY 31 JULY 31
- -------------------------------------------------------------------------------------------------------
2003 2002 2001 2000(a)
PER SHARE DATA
Net Asset Value -- Beginning of Period $ 15.89 $ 20.82 $ 24.90 $ 24.72
=======================================================================================================
INCOME FROM INVESTMENT OPERATIONS(b)
Net Investment Income (Loss) 0.03 (0.02) (0.06) (0.06)
Net Gains or (Losses) on Securities
(Both Realized and Unrealized) 1.13 (4.24) (0.14) 0.45
=======================================================================================================
TOTAL FROM INVESTMENT OPERATIONS 1.16 (4.26) (0.20) 0.39
=======================================================================================================
LESS DIVIDENDS AND DISTRIBUTIONS 0.02 0.67 3.88 0.21
=======================================================================================================
Net Asset Value -- End of Period $ 17.03 $ 15.89 $ 20.82 $ 24.90
=======================================================================================================
TOTAL RETURN(c) 7.30% (20.98%) (0.49%) 1.52%(d)
RATIOS
Net Assets -- End of Period ($000 Omitted) $ 1,224 $ 1,684 $ 1,024 $ 96
Ratio of Expenses to Average Net Assets(e)(f) 2.05% 2.05% 2.04% 2.13%(g)
Ratio of Net Investment Income (Loss) to Average
Net Assets(f) 0.20% (0.12%) (0.23%) (0.49%)(g)
Portfolio Turnover Rate 67% 43% 54% 67%(h)
(a) From February 15, 2000, inception of Class, to July 31, 2000.
(b) The per share information was computed based on average shares for the
years ended July 31, 2003, 2002 and 2001.
(c) The applicable CDSC is not included in the Total Return calculation.
(d) Based on operations for the period shown and, accordingly, is not
representative of a full year.
(e) Ratio is based on Total Expenses of the Class, less Expenses Absorbed by
Investment Adviser, which is before any expense offset arrangements (which
may include custodian fees).
(f) Various expenses of the Class were voluntarily absorbed by IFG for the
years ended July 31, 2003, 2002 and 2001 and the period ended July 31,
2000. If such expenses had not been voluntarily absorbed, ratio of expenses
to average net assets would have been 3.56% 2.79%, 2.29% and 2.22%
(annualized), respectively, and ratio of net investment loss to average net
assets would have been (1.31%), (0.86%), (0.48%) and (0.58%) (annualized),
respectively.
(g) Annualized
(h) Portfolio Turnover is calculated at the Fund level. Represents the year
ended July 31, 2000.
OTHER INFORMATION
UNAUDITED
The table below provides information about each of the Independent and Interested Directors. Their affiliations
represent their principal occupations.
NUMBER OF
FUNDS IN
POSITION(S) HELD WITH FUND
COMPANY, TERM OF COMPLEX OTHER
OFFICE AND LENGTH PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND AGE OF TIME SERVED* DURING PAST FIVE YEARS* DIRECTOR HELD BY DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT DIRECTORS
Bob A. Baker Vice Chairman of Consultant (2000-present). 48
37 Castle Pines Dr. N. the Board Formerly, President and
Castle Rock, Colorado (Since 2003) Chief Executive Officer
(1988-2000) of AMC Cancer
Age: 66 Research Center, Denver,
Colorado. Until Mid-December
1988, Vice Chairman of the
Board of First Columbia
Financial Corporation,
Englewood, Colorado;
formerly, Chairman of the
Board and Chief Executive
Officer of First Columbia
Financial Corporation.
Sueann Ambron, Ph.D. Director Dean of the Business School, 48
University of Colorado (Since 2003) College of Business,
at Denver University of Colorado of
1250 14th Street Denver (2000-present).
Denver, Colorado Formerly, President and
Chief Executive Officer of
Age: 58 Avulet, Inc., Sunnyvale,
California (1998-1999), Vice
President and General
Manager, Multimedia Services
Division, Motorola, Inc.,
Schaumburg, Illinois
(1996-1998).
Victor L. Andrews, Ph.D. Director Professor Emeritus, Chairman 48
34 Seawatch Drive Emeritus and Chairman and
Savannah, Georgia CFO of the Roundtable of the
Department of Finance of
Age: 73 Georgia State University;
and President, Andrews
Financial Associates, Inc.
(consulting firm). Formerly,
member of the faculties of
the Harvard Business School;
and the Sloan School of
Management of MIT.
Lawrence H. Budner Director Trust Consultant. Formerly, 48
7608 Glen Albens Circle Senior Vice President and
Dallas, Texas Senior Trust Officer of
InterFirst Bank, Dallas,
Age: 73 Texas.
OTHER INFORMATION
UNAUDITED
NUMBER OF
FUNDS IN
POSITION(S) HELD WITH FUND
COMPANY, TERM OF COMPLEX OTHER
OFFICE AND LENGTH PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND AGE OF TIME SERVED* DURING PAST FIVE YEARS* DIRECTOR HELD BY DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
James T. Bunch Director Co-President and Founder of 48
3600 Republic Plaza Green, Manning & Bunch,
370 Seventeenth Street (since 2000) Ltd., Denver, Colorado
Denver, Colorado (1988-present); Director and
Vice President of Western
Age: 60 Golf Association and Evans
Scholars Foundation; and
Excutive Committee, United
States Golf Association.
Formerly, General Counsel
and Director of Boettcher &
Company, Denver, Colorado;
and formerly, Chairman and
Managing Partner of Davis,
Graham & Stubbs, Denver,
Colorado.
Gerald J. Lewis Director Chairman of Lawsuit 48 Director of General Chemical
701 "B" Street (since 2000) Resolution Services, San Group, Inc., Hampdon, New
Suite 2100 Diego, California Hampshire (1996-present).
San Diego, California (1987-present). Formerly, Director of Wheelabrator
Associate Justice of the Technologies, Inc., Fisher
California Court of Appeals; Scientific, Inc., Henley
Age: 69 and of Counsel, Latham & Manufacturing, Inc., and
Watkins, San Diego, California Coastal Properties,
California (1987-1997). Inc.
John W. McIntyre Director Retired. Trustee of Gables 48
7 Piedmont Center Residential Trust. Trustee
Suite 100 and Chairman of the J.M. Tull
Atlanta, Georgia Charitable Foundation;
Director of Kaiser Foundation
Age: 72 Health Plans of Georgia, Inc.
Formerly, Vice Chairman of
the Board of Directors of The
Citizens and Southern
Corporation and Chairman of
the Board and Chief Executive
Officer of The Citizens and
Southern Georgia Corporation
and The Citizens and Southern
National Bank. Formerly,
Trustee of INVESCO Global
Health Sciences Fund and
Trustee of Employee's
Retirement System of Georgia,
Emory University.
Larry Soll, Ph. D. Director Retired. Formerly, Chairman 48 Director of Synergen since
2358 Sunshine Canyon Dr. (since 1997) of the Board (1987-1994), incorporation in 1982;
Boulder, Colorado Chief Executive Officer Director of Isis
(1982-1989 and 1993-1994) and Pharmaceuticals, Inc.
Age: 61 President (1982-1989) of
Synergen Inc.; and formerly,
Trustee of INVESCO Global
Health Sciences Fund.
OTHER INFORMATION
UNAUDITED
NUMBER OF
FUNDS IN
POSITION(S) HELD WITH FUND
COMPANY, TERM OF COMPLEX OTHER
OFFICE AND LENGTH PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND AGE OF TIME SERVED* DURING PAST FIVE YEARS* DIRECTOR HELD BY DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTORS AND OFFICERS
These directors are "interested persons" of IFG as defined in the Act, and they
are interested persons by virtue of the fact that he/she is an officer or
director of IFG, IDI or an affiliate of IFG.
Mark H. Williamson Chairman of the Board President and Chief Executive 48
4350 South Monaco Street (since 1999). Formerly, Officer AIM Investment
Denver, Colorado President (1998-2002); Management and Chief
and Chief Executive Executive Officer of the AIM
Age: 52 Officer (1998-2002). Division of AMVESCAP PLC
(2003-present). Formerly,
Chief Executive Officer,
Managed Products Division,
AMVESCAP PLC (2001-present).
Formerly, Chairman of the
Board (1998-2002), President
(1998-2002), and Chief
Executive Officer (1998-2002)
of INVESCO Funds Group, Inc.
and of INVESCO Distributors,
Inc. Formerly, Chief
Operating Officer and
Chairman of the Board of
INVESCO Global Health
Sciences Fund; formerly,
Chairman and Chief Executive
Officer of NationsBanc
Advisors, Inc.; and formerly,
Chairman of NationsBanc
Investments, Inc.
Raymond R. Cunningham President (2003-present), President (2003-present) and 48 Director of INVESCO Funds
4350 South Monaco Street Chief Executive Officer Chief Executive Officer Group, Inc. and Chairman of
Denver, Colorado (2003-present) and (2003-present) of INVESCO the Board of INVESCO
Director (2001-present). Funds Group, Inc.; Distributors, Inc.
Age: 52 Formerly, Vice President Chairman of the Board (2003-
(2001-2002). present), President
(2003-present), and Chief
Executive Officer
(2003-present) of INVESCO
Distributors, Inc. Formerly,
Chief Operating Officer
(2002-2003) and Senior Vice
President (1999-2002) of
INVESCO Funds Group, Inc. and
INVESCO Distributors, Inc.;
and Formerly, Senior Vice
President of GT Global -
North America (1992-1998).
Richard W. Healey Director Senior Vice President of 40 Director of INVESCO Funds
4350 South Monaco Street (since 2000) INVESCO Funds Group, Inc.; Group, Inc. and INVESCO
Denver, Colorado Senior Vice President of Distributors, Inc.
INVESCO Distributors, Inc.
Age: 48 Formerly, Senior Vice
President of GT Global -
North America (1996-1998) and
The Boston Company
(1993-1996).
OTHER INFORMATION
UNAUDITED
NUMBER OF
FUNDS IN
POSITION(S) HELD WITH FUND
COMPANY, TERM OF COMPLEX OTHER
OFFICE AND LENGTH PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND AGE OF TIME SERVED* DURING PAST FIVE YEARS* DIRECTOR HELD BY DIRECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
Glen A. Payne Secretary Senior Vice President,
4350 South Monaco Street General Counsel and Secretary
Denver, Colorado of INVESCO Funds Group, Inc.;
Senior Vice President,
Age: 55 Secretary and General Counsel
of INVESCO Distributors, Inc.
Formerly, Secretary of
INVESCO Global Health
Sciences Fund; General
Counsel of INVESCO Trust
Company (1989-1998); and
employee of a U.S. regulatory
agency, Washington, D.C.
(1973-1989).
Ronald L. Grooms Chief Accounting Senior Vice President and Director of INVESCO Funds
4350 South Monaco Street Officer, Chief Treasurer of INVESCO Funds Group, Inc. and INVESCO
Denver, Colorado Financial Officer Group, Inc.; and Senior Vice Distributors, Inc.
and Treasurer President and Treasurer of
Age: 56 INVESCO Distributors, Inc.
Formerly, Treasurer and
Principal Financial and
Accounting Officer of INVESCO
Global Health Sciences Fund;
and Senior Vice President and
Treasurer of INVESCO Trust
Company (1988-1998).
William J. Galvin, Jr. Assistant Secretary Senior Vice President and Director of INVESCO Funds
4350 South Monaco Street Assistant Secretary of Group, Inc. and INVESCO
Denver, Colorado INVESCO Funds Group, Inc.; Distributors, Inc.
and Senior Vice President and
Age: 46 Assistant Secretary of
INVESCO Distributors, Inc.
Formerly, Trust Officer of
INVESCO Trust Company
(1995-1998).
Pamela J. Piro Assistant Treasurer Vice President and Assistant
4350 South Monaco Street Treasurer of INVESCO Funds
Denver, Colorado Group, Inc.; and Assistant
Treasurer of INVESCO
Age: 42 Distributors, Inc. Formerly,
Assistant Vice President
(1996-1997).
Tane T. Tyler Assistant Secretary Vice President and Assistant
4350 South Monaco Street (since 2002) General Counsel of INVESCO
Denver, Colorado Funds Group, Inc.
Age: 38
* Except as otherwise indicated, each individual has held the position(s) shown for at least the last five years.
The Statement of Additional Information ("SAI") includes additional information about Fund directors and is available, without
charge, upon request. To obtain a free copy of the current SAI, call 1-800-525-8085.
For dividends paid during the fiscal year ended May 31, 2003, the Funds designate qualified dividend income to the
maximum extent allowable.
[INVESCO ICON] INVESCO(R)
1-800-525-8085
1-800-959-4246
Automated AIM Investor Line: 1-800-246-5463
AIMinvestments.com
Effective 7/1/03 A I M Distributors, Inc.,(SM) became
the distributor of the retail INVESCO funds
11 Greenway Plaza, Suite 100, Houston, Texas 77046
This information must be preceded or accompanied by a current prospectus.
AEQ 900514 09/03 I-STO-AR-1
ITEM 2. CODE OF ETHICS
As of the end of the period covered by the report, Registrant had adopted a code
of ethics (the "Code") that applied to the Registrant's principal executive
officer ("PEO") and principal financial officer ("PFO"). There were no
amendments to the Code during the period covered by the report. During the
period covered by this report, Registrant did not grant any waiver, and does not
believe it granted an implicit waiver, from a provision of the Code that is
applicable to the PEO and PFO. However, it should be noted that Raymond
Cunningham was the PEO of Registrant on July 31, 2003. Since the end of the
period covered by this report, the Securities and Exchange Commission, the New
York State Attorney General's Office and the Colorado Attorney General's Office
filed civil actions against INVESCO Funds Group, Inc. and Raymond Cunningham
alleging violations of various federal and state laws due to selectively
permitting market timing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Audit Committee of the Boards of Directors of the INVESCO Mutual Funds is
composed of four of the Fund's directors who are not affiliated with the Funds'
investment adviser. All members are independent. The Board has determined that
each of the Committee members is "financially literate" and that at least two
members have "accounting or related financial management expertise" as used in
the New York Stock Exchange definitions of the terms.
Under the recently enacted Sarbanes-Oxley Act, if the Boards of Directors have
not determined that an "audit committee financial expert," a new term defined by
the SEC and based on criteria contained in the Act, is serving on the Audit
Committee, it must disclose this fact and explain why it does not have such an
expert. The Boards of Directors have determined that none of the members of the
Audit Committee meet the technical requirements of the definition. Moreover, the
Boards believe that for the following reasons it is not necessary for registered
investment companies such as the Funds, with an audit committee that meets the
New York Stock Exchange requirements of financial literacy, to have a "financial
expert" as a member of the committee.
1. The financial statements of and accounting principles applying to
registered investment companies such as the Funds are relatively
simple, straightforward and transparent compared to operating
companies. The significant accounting issues are valuation of
securities and other assets (regulated under the Investment Company
Act of 1940 and computed daily), accrual of expenses, allocation of
joint expenses shared with other entities such as insurance premiums
and disclosures of all related party transactions. Equally important
is a knowledge of the tax laws applying to registered investment
companies. None of the accounting issues involving corporate America
that have received recent publicity such as sophisticated derivative
transactions and special purpose entities are present in financial
reporting for registered investment companies.
2. During the years that the Funds has been filing financial reports
under the 1940 Act since their inception, there has never been a
requirement for a financial report or statement to be restated.
3. The current members of the Audit Committee have the experience of 23.5
years serving on this Audit Committee and in the Boards' judgement,
through this experience and experience with other public corporation's
financial affairs, they have an understanding of the relevant
generally accepted accounting principles governing the Funds'
financial statements, tax laws applying to the Funds, the Funds
internal accounting controls and audit committee functions necessary
to satisfy the objectives of the Sarbanes-Oxley Act with respect to
the financial statements, auditing process and internal controls of
the Funds.
4. The Audit Committee has the capability of employing a consultant who
satisfies the technical definition of a "financial expert" and will do
so from time to time if circumstances warrant."
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to this filing.
ITEM 5. [RESERVED]
ITEM 6. [RESERVED]
ITEM 7. NOT APPLICABLE
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES
(a) As of June 18, 2004, an evaluation was performed under the
supervision and with the participation of the officers of the
Registrant, including the Principal Executive Officer ("PEO") and
Principal Financial Officer ("PFO"), to assess the effectiveness of
the Registrant's disclosure controls and procedures, as that term is
defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the
"Act"), as amended. Based on that evaluation, the Registrant's
officers, including the PEO and PFO, concluded that, as of June 18,
2004, the Registrant's disclosure controls and procedures were
reasonably designed so as to ensure: (1) that information required to
be disclosed by the Registrant on Form N-CSR/A is recorded, processed,
summarized and reported within the time periods specified by the rules
and forms of the Securities and Exchange Commission; and (2) that
material information relating to the Registrant is made known to
the PEO and PFO as appropriate to allow timely decisions regarding
required disclosure.
(b) There have been no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act) that
occurred during the period covered by the report on Form N-CSR/A
that has materially affected, or is reasonably likely to materially
affect, the Registrant's internal control over financial reporting.
ITEM 10. EXHIBITS
10(a)(1) Code of Ethics.
10(a)(2) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2(a) under the
Investment Company Act of 1940.
Certifications dated October 3, 2003 of principal executive
officer and principal financial officer as required by Rule
30a-2(a) under the Investment Company Act of 1940.
10(a)(3) Not applicable.
10(b) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2(b) under the
Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: AIM Stock Funds
(Successor to: INVESCO Stock Funds, Inc.)
By: /s/ ROBERT H. GRAHAM
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Robert H. Graham
Principal Executive Officer
Date: August 3, 2004
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investments Company Act of 1940, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ ROBERT H. GRAHAM
-------------------------------------------
Robert H. Graham
Principal Executive Officer
Date: August 3, 2004
By: /s/ SIDNEY M. DILGREN
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Sidney M. Dilgren
Principal Financial Officer
Date: August 3, 2004
EXHIBIT INDEX
10(a)(1) Code of Ethics.
10(a)(2) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2(a) under the
Investment Company Act of 1940.
Certifications dated October 3, 2003 of principal executive
officer and principal financial officer as required by Rule
30a-2(a) under the Investment Company Act of 1940.
10(a)(3) Not applicable.
10(b) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2(b) under the
Investment Company Act of 1940.