<PAGE>
G.T. GROUP
[LOGO]
TWENTY-FIVE
YEARS OF
PROVIDING
ACCESS TO
GLOBAL MARKETS
/ /
G.T. GLOBAL
INTERNATIONAL
GROWTH FUND
/ /
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Report from the Fund
Managers and Key
Portfolio Holdings..... 1
Financial Statements... F-1
</TABLE>
<PAGE>
REPORT FROM THE FUND MANAGERS
The G.T. Global International Growth Fund seeks long-term growth of capital by
investing in equity securities of companies located outside the United States.
PERFORMANCE REVIEW
The Fund's total return for the six months ended June 30, 1995, for Class A
shares was -6.32% (-10.77% including the effect of the maximum 4.75% sales
charge). Total return for Class B shares during this same period was -6.73%
(-11.39% including the effect of the maximum 5% contingent deferred sales
charge). In comparison, total return for the Morgan Stanley Capital
International Europe, Australia, Far East (MSCI-EAFE) Index(1), which does not
include emerging markets, was 2.76% for the period. For additional performance
information, please see page 7.
Overall, the Fund's emerging market exposure adversely affected performance in
the first half of 1995. From April onward, however, those markets recovered
sharply; in the longer term we expect them to be positive contributors to Fund
performance.
A more serious source of underperformance relative to the index was the
surprising weakness of the U.S. dollar. As provided in the Fund's prospectus,
the Fund may attempt to hedge its portfolio against adverse movements in
currency exchange rates by entering into forward currency contracts for the
purchase or sale of a specified currency at a specified future date. In
anticipation of a rebound in the dollar, we employed foreign currency hedges
that prevented the Fund from benefiting from gains in foreign currencies as the
dollar fell. Although by the end of the period the dollar had shown signs of
strengthening against the yen, enabling the Fund to recoup some of the lost
ground, for the six months as a whole, currency hedging was a major contributor
to underperformance against the index.
During the second quarter, we have seen our investments paying off in the form
of significant outperformance relative to the index, as the Fund recovered 4.0%
compared with a 0.8% gain in the EAFE Index.
------------------
(1) The MSCI-EAFE Index is an arithmetic average, weighted by market value, of
the performance of 1,107 securities listed on 20 major stock exchanges. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
1
<PAGE>
MARKET REVIEW
The aftermath of the Mexican financial crisis caused a steep decline in most
emerging markets in the first two months of the year. The European and Japanese
stock markets were also depressed as investors gloomily contemplated the
implications of further increases in U.S. and foreign interest rates to combat
inflation.
However, the beneficial effects of the progressive increases in U.S. interest
rates between February 1994 and February 1995 (which affected financial markets
as soon as they occurred) began to be apparent in the economy from March 1995
onward. In March the dollar slumped on the foreign exchanges, not, in our
opinion, because of concerns about inflation in the U.S. but, rather, because of
weakening demand for U.S. dollar credit, reflecting the cooling of the economy.
Foreign currencies rose against the dollar not because U.S. interest rates were
too low but because foreign interest rates were too high.
Given this monetary restraint, consumption remained weak in all the major
European countries; in Japan the slowdown was so pronounced it sparked fears the
Japanese economy was slipping back into recession. This generalized slowdown
reassured markets that inflationary pressures were well contained, prompting
bond markets everywhere to rally, following the lead of the United States. As
the likelihood of further increases in short-term interest rates diminished,
most stock markets also recovered.
Thus, by mid-year most markets had recouped the losses of January and February
and the U.S., in particular, was rising to new highs. Japan was an exception,
proving inconsolable, with lower interest rates only serving to confirm that the
economy had tipped over into outright deflation with all its awful implications
for bad debts and corporate profitability. However, we believe the weakness in
the Japanese stock market will eventually force authorities to change policy and
step in to prop up an ailing economy. Their room for maneuvering is so limited
that we expect policy changes in the next nine months.
2
<PAGE>
PORTFOLIO STRATEGY AND OUTLOOK
Our long-term view has not changed although many of the strategic positions
taken by the Fund were, with the benefit of hindsight, premature. In the first
few months of the year, stock selection, country allocation and currency
positions all adversely affected Fund performance. At the time, our basic belief
that inflation was not a problem and that there was nothing fundamentally wrong
with emerging markets was not yet shared by investors at large. In recent months
we have been gratified to see that our outlook is now widely accepted.
Over the past six months only minor changes were made to the country allocation
of the Fund. The largest single country exposure was to Japan, at about a
quarter of the Fund, which nevertheless represents a significant underweighting
compared to Japan's 42% weighting in the MSCI-EAFE Index. The UK was the next
largest country position at 17%, compared with a 16.5% weight in the index.
Fifteen percent of the Fund was invested in emerging market countries at the end
of June, of which a third was invested in Thailand. In Europe attractive stocks
are tending to drive country allocation. Our relatively large weighting in the
Netherlands, for example, is based on our belief that it has a disproportionate
share of high-quality growth companies at attractive valuations, while the
telecommunications company, Nokia,(2) gives the Fund exposure to Finland.
As we head into the second half of 1995, we expect to see encouraging signs,
such as low inflation and stable monetary policies, in many of the international
markets which, we believe, will benefit Fund investors.
CHRISTIAN WIGNALL
CHIEF INVESTMENT OFFICER
GLOBAL EQUITIES
SAN FRANCISCO
JULY 17, 1995
Notice to shareholders: To reduce Fund expenses, only one copy of this report is
being mailed to each address, even if there is more than one account at that
address. For additional copies of this report, please call 1-800-223-2138.
------------------
(2) There is no assurance the Fund will continue to hold this or any other
security mentioned in this report.
G.T. GLOBAL INTERNATIONAL GROWTH FUND
3
<PAGE>
KEY PORTFOLIO HOLDINGS*
SEVEN-ELEVEN JAPAN LTD. JAPAN
Throughout the recession in Japan, sales in the existing convenience stores of
this nationwide franchise chain continued to grow, demonstrating the company's
expertise in merchandising, inventory control and promotion. We expect these
trends to continue and the company to expand at the expense of its competitors.
In our opinion, highly competent management continues to be the hallmark of
Seven-Eleven's success and the shakeout in the rest of Japan's retailing
industry could present it with expansion opportunities.
DAINI DENDEN INC. (DDI) JAPAN
We believe DDI to be a major beneficiary of deregulation in the relatively
underdeveloped Japanese cellular market. In April 1994, domestic cellular
services were liberalized, allowing two new service providers to operate
nationally. In addition, the sale of cellular handsets has been liberalized,
which should eventually force prices down significantly. As Japan's
second-largest provider of cellular phone services, we expect DDI to see an
immediate pickup in demand, and the market to continue to grow rapidly for the
rest of the decade. The company also has more than 10% of the domestic
long-distance market, and we expect it to show respectable growth when the
Japanese economy recovers and the Japanese gradually increase their spending on
consumer items.
TAKEDA CHEMICAL INDUSTRIES JAPAN
We consider Takeda Chemical a leading pharmaceutical manufacturer, best-noted
for its vitamin tablet Alinamin. A top antibiotics producer since 1965, the
company manages overseas manufacturing operations in both the U.S. and Asia. We
believe its Asian manufacturing center, Central Research Lab, sets the standard
in pharmaceutical production in Asia.
AUTOBACS SEVEN CO., LTD. JAPAN
This company operates a franchise chain of car accessory shops. Prices for most
of its products substantially undercut competing garages and car dealers. The
firm also sells its own brand products which enjoy very high margins. Expansion
is planned over the next two to three years to capitalize on low rents and cheap
startup costs. We believe this will increase the company's bargaining power with
manufacturers and help support profit margins.
------------------
* There can be no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
4
<PAGE>
AOYAMA TRADING CO., LTD. JAPAN
Aoyama Trading is the largest suburban discount chain store in Japan,
specializing in men's apparel, particularly in men's discount suits. The company
is developing a casual wear line to complement its business clothing sales.
Generally, Aoyama sells lesser known brand name items.
NOKIA FINLAND
Nokia, the Finnish telecommunications company, has the second largest global
share in handsets and cellular equipment. It has benefited from the rapid growth
in the mobile phone market in recent years. This market is still expected to
expand substantially as world penetration rates increase with economic
development and technological change. Using its strong brand name recognition
and emphasizing cost control, the company has been adept at dealing with
increasing competition.
COMPASS GROUP PLC UK
Compass is a market leader in the UK institutional catering business and,
through an aggressive acquisition strategy, has achieved dominant positions
throughout Europe and in the U.S. It holds strong branded franchises, such as
Burger King and Pizza Hut, and has an excellent record for managing growth, both
internally and by acquisition.
MATSUSHITA-KOTOBUKI ELECTRONICS LTD. JAPAN
Matsushita Kotobuki produces parts for the PC industry, including disk drives
and CD-ROMs. Strong sales of PCs in the U.S. have led to substantial company
sales, despite the strong yen causing selling prices to decline in yen terms.
The company is transferring the manufacturing of its low-margin, low-growth
business -- VCR manufacturing -- to overseas locations where labor costs and
capital inputs are lower.
SAMSUNG ELECTRONICS CO. SOUTH KOREA
Samsung Electronics is Korea's leading electronics producer and exporter,
manufacturing semi-conductors, consumer electronics, and telecom and computer
products. It is also a significant player in the domestic market for color
televisions, video cassette recorders, household appliances, electronic
switching systems and monitors. Exports account for about two thirds of total
sales, of which the main destination is the U.S., followed by Asia and Europe.
5
<PAGE>
HOSIDEN ELECTRONICS JAPAN
Hosiden specializes in the production of liquid crystal display (LCD) screens,
which are expected to represent over a third of the company's overall sales in
1995. Hosiden's LCDs are considered among the best available in the market. The
company's independence means it does not have to lower its prices to related
industrial groups as do some of its competitors. It sells mainly to U.S.
computer makers, where its screens are known for their sophistication and
reliability.
6
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
PORTFOLIO SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
G.T. GLOBAL INTERNATIONAL GROWTH FUND - CLASS A MSCI EAFE INDEX
<S> <C> <C>
19-Jul-85 9525 10,000
31-Jul-85 9,535 10,195
31-Aug-85 9,449 10,526
30-Sep-85 9,849 11,145
31-Oct-85 10,506 11,907
30-Nov-85 11,144 12,399
31-Dec-85 11,878 12,990
31-Jan-86 12,163 13,319
28-Feb-86 12,954 14,799
31-Mar-86 14,168 16,884
30-Apr-86 15,310 17,994
31-May-86 14,893 17,198
30-Jun-86 16,006 18,375
31-Jul-86 17,407 19,512
31-Aug-86 18,400 21,440
30-Sep-86 17,923 21,225
31-Oct-86 16,423 19,812
30-Nov-86 17,645 20,959
31-Dec-86 18,251 22,075
31-Jan-87 18,728 24,424
28-Feb-87 19,473 25,161
31-Mar-87 20,356 27,229
30-Apr-87 21,427 30,115
31-May-87 21,900 30,121
30-Jun-87 22,148 29,166
31-Jul-87 23,579 29,121
31-Aug-87 24,433 31,310
30-Sep-87 25,185 30,823
31-Oct-87 18,256 26,510
30-Nov-87 17,774 26,777
31-Dec-87 19,379 27,579
31-Jan-88 19,786 28,077
29-Feb-88 20,431 29,956
31-Mar-88 21,313 31,804
30-Apr-88 21,833 32,272
31-May-88 21,403 31,244
30-Jun-88 21,268 30,427
30-Jul-88 21,460 31,388
31-Aug-88 20,747 29,353
30-Sep-88 21,268 30,642
31-Oct-88 22,330 33,271
30-Nov-88 22,930 35,260
31-Dec-88 23,138 35,463
31-Jan-89 24,311 36,094
28-Feb-89 24,686 36,286
31-Mar-89 25,176 35,581
30-Apr-89 26,167 35,918
31-May-89 25,882 33,970
30-Jun-89 25,745 33,406
31-Jul-89 27,545 37,608
31-Aug-89 28,626 35,923
30-Sep-89 29,788 37,566
31-Oct-89 28,455 36,064
30-Nov-89 29,685 37,885
31-Dec-89 32,060 39,292
31-Jan-90 31,540 37,838
28-Feb-90 30,674 35,205
31-Mar-90 31,090 31,545
30-Apr-90 30,258 31,303
31-May-90 31,818 34,884
30-Jun-90 32,476 34,585
31-Jul-90 33,585 35,081
31-Aug-90 30,362 31,684
30-Sep-90 27,208 27,277
31-Oct-90 28,802 31,537
30-Nov-90 27,970 29,685
31-Dec-90 27,474 30,178
31-Jan-91 28,071 31,162
28-Feb-91 29,863 34,512
31-Mar-91 30,390 32,449
30-Apr-91 30,495 32,777
31-May-91 31,584 33,128
28-Jun-91 30,390 30,703
31-Jul-91 31,514 32,219
31-Aug-91 30,741 31,573
30-Sep-91 31,408 33,362
31-Oct-91 31,549 33,843
29-Nov-91 30,073 32,272
31-Dec-91 31,104 33,949
31-Jan-92 31,176 33,234
28-Feb-92 31,709 32,053
31-Mar-92 30,677 29,946
30-Apr-92 31,532 30,096
29-May-92 33,560 32,120
30-Jun-92 32,386 30,607
31-Jul-92 30,998 29,834
31-Aug-92 30,713 31,715
30-Sep-92 29,218 31,099
30-Oct-92 29,147 29,477
30-Nov-92 29,325 29,763
31-Dec-92 29,290 29,926
31-Jan-93 29,076 29,932
26-Feb-93 29,504 30,845
31-Mar-93 31,002 33,542
30-Apr-93 32,501 36,735
28-May-93 32,965 37,519
30-Jun-93 32,501 36,943
30-Jul-93 33,714 38,244
31-Aug-93 35,676 40,318
30-Sep-93 35,533 39,419
29-Oct-93 36,996 40,642
30-Nov-93 35,355 37,098
31-Dec-93 39,315 39,785
31-Jan-94 41,741 43,158
28-Feb-94 40,242 43,047
31-Mar-94 37,317 41,202
29-Apr-94 37,852 42,959
31-May-94 37,602 42,722
30-Jun-94 37,317 43,335
29-Jul-94 38,494 43,762
31-Aug-94 40,421 44,807
30-Sep-94 38,815 43,406
31-Oct-94 39,029 44,861
30-Nov-94 37,353 42,715
30-Dec-94 36,256 42,993
31-Jan-95 33,488 41,351
28-Feb-95 32,579 41,243
31-Mar-95 32,658 43,827
28-Apr-95 33,646 45,487
31-May-95 33,567 44,957
30-Jun-95 33,962 44,180
</TABLE>
THE CHART AT LEFT SHOWS THE PERFORMANCE OF THE G.T. GLOBAL INTERNATIONAL GROWTH
FUND CLASS A SHARES SINCE THE FUND'S INCEPTION VERSUS THE MSCI-EAFE INDEX. THIS
REPRESENTS A CUMULATIVE RETURN OF 239.62% AND AN AVERAGE ANNUAL TOTAL RETURN OF
13.07%. THE CHART ASSUMES A HYPOTHETICAL $10,000 INITIAL INVESTMENT IN THE
FUND'S CLASS A SHARES AND REFLECTS ALL FUND EXPENSES AND THE MAXIMUM 4.75% SALES
CHARGE. INVESTORS SHOULD NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED MUTUAL
FUND WHILE THE INDEX IS UNMANAGED, DOES NOT INCUR EXPENSES AND IS NOT AVAILABLE
FOR INVESTMENT.
AVERAGE ANNUAL TOTAL RETURNS+
JUNE 30, 1995
<TABLE>
<CAPTION>
SHARE WITHOUT SALES CHARGE WITH SALES CHARGE++
LIFE OF LIFE OF
CLASS 1-YEAR 5-YEAR FUND 1-YEAR 5-YEAR FUND
<S> <C> <C> <C> <C> <C> <C>
CLASS A* -8.99% 0.90% 13.62% -13.31% -0.08% 13.07%
CLASS B** -9.58% N/A 3.22% -13.65% N/A 1.97%
ADV. CLASS*** N/A N/A 1.18% N/A N/A N/A
<FN>
* The Fund began operations on July 19, 1985.
** The Fund began offering Class B shares on April 1, 1993.
*** The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public and are only available
through certain employee benefit plans, financial institutions and other
entities that have entered into specific agreements with G.T. Global. Please
see the "Alternative Purchase Plan" section in the Fund's prospectus.
+ Figures assume reinvestment of all dividends and capital gains distributions
at net asset value.
++ The performance of the Class A shares reflects the effects of the maximum
4.75% sales charge. Class B share performance reflects the applicable
contingent deferred sales charge
(5.00% in the first year, decreasing to 0% after six years).
</TABLE>
THE DATA ABOVE REPRESENT PAST PERFORMANCE OF THE FUND'S SHARES, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SECTOR ALLOCATION OF NET ASSETS
AS OF JUNE 30, 1995
<S> <C>
Services 37.3
Finance 19.4
Technology 8.6
Materials/Basic Industry 8.1
Health Care 6.7
Consumer Non-Durables 6.4
Capital Goods 4.5
Energy 4.1
Consumer Durables 3.6
Other 1.3
100.0
GEOGRAPHIC ALLOCATION OF NET ASSETS
AS OF JUNE 3, 1995
Asia Pacific 48.5
Europe 47.7
Africa 3.4
Latin America & Other 0.4
100.0
</TABLE>
ALLOCATIONS WILL CHANGE BASED ON CURRENT MARKET CONDITIONS.
7
<PAGE>
/ /
G.T. GLOBAL
INTERNATIONAL
GROWTH FUND
/ /
FINANCIAL
STATEMENTS
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (37.3%)
<C> <C> <C> <C>
Seven-Eleven Japan Ltd.... JPN 197,000 $ 14,111,282 3.7
RETAILERS-OTHER
DDI Corp.................. JPN 1,610 12,919,519 3.4
WIRELESS COMMUNICATIONS
Autobacs Seven Co.,
Ltd...................... JPN 130,000 12,656,361 3.3
RETAILERS-OTHER
Aoyama Trading Co.,
Ltd...................... JPN 530,000 8,875,263 2.3
RETAILERS-APPAREL
Compass Group PLC......... UK 1,415,650 8,375,029 2.2
RESTAURANTS
Philippine Long Distance
Telephone Co. -
ADR(INVERTED TRIANGLE)... PHIL 100,400 7,203,700 1.9
TELEPHONE - LONG
DISTANCE
Elsevier N.V.............. NETH 512,720 6,057,312 1.6
BROADCASTING &
PUBLISHING
Great Universal Stores
PLC...................... UK 635,000 5,932,928 1.6
RETAILERS-OTHER
Deutsche Lufthansa
AG(CHECK MARK)........... GER 35,725 5,168,174 1.4
TRANSPORTATION -
AIRLINES
Koninklijke Ahold N.V..... NETH 137,770 4,936,240 1.3
RETAILERS-FOOD
Granada Group PLC......... UK 500,000 4,850,509 1.3
LEISURE & TOURISM
EMAP PLC.................. UK 640,000 4,773,537 1.3
BROADCASTING &
PUBLISHING
Cortefiel S.A............. SPN 156,775 4,759,588 1.2
RETAILERS-APPAREL
British Telecommunications
PLC...................... UK 690,000 4,301,527 1.1
TELEPHONE NETWORKS
Telecom Italia S.p.A...... ITLY 1,548,655 4,200,144 1.1
TELEPHONE NETWORKS
British Sky Broadcasting
Group PLC(CHECK MARK).... UK 942,800 4,115,754 1.1
CABLE TELEVISION
Pinault-Printemps S.A..... FR 18,820 4,035,213 1.1
RETAILERS-OTHER
MacIntosh N.V............. NETH 129,735 3,768,932 1.0
RETAILERS-OTHER
Asatsu.................... JPN 111,000 3,549,799 0.9
BUSINESS & PUBLIC
SERVICES
Reuters Holdings PLC...... UK 417,000 3,471,684 0.9
BROADCASTING &
PUBLISHING
Hagemeyer N.V............. NETH 77,078 3,438,405 0.9
WHOLESALE &
INTERNATIONAL TRADE
Securitas AB "B"(CHECK
MARK).................... SWDN 74,380 2,578,376 0.7
BUSINESS & PUBLIC
SERVICES
Resorts World Bhd......... MAL 299,000 1,754,133 0.5
LEISURE & TOURISM
Fast Retailing Co.,
Ltd...................... JPN 20,400 1,740,420 0.5
RETAILERS-APPAREL
News Corp., Ltd........... AUSL 308,105 1,721,795 0.5
BROADCASTING &
PUBLISHING
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-1
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Tesco PLC................. UK 365,400 $ 1,685,210 0.4
RETAILERS-FOOD
ASSA Abloy AB "B"(CHECK
MARK).................... SWDN 91,700 479,339 0.1
BUSINESS & PUBLIC
SERVICES
------------
141,460,173
------------
Finance (19.4%)
S.G. Warburg Group PLC.... UK 400,000 4,634,224 1.2
INVESTMENT MANAGEMENT
Bangkok Bank Co., Ltd. -
Foreign.................. THAI 415,000 4,574,671 1.2
BANKS-MONEY CENTER
Cardif S.A................ FR 30,850 4,433,038 1.2
INSURANCE - MULTI-LINE
United Overseas Bank Ltd.
- Foreign................ SING 453,300 4,283,150 1.1
BANKS-MONEY CENTER
Swiss Reinsurance Co. -
Registered(CHECK MARK)... SWTZ 5,550 4,277,020 1.1
INSURANCE - MULTI-LINE
Thai Farmers Bank, Ltd. -
Foreign.................. THAI 431,000 4,122,229 1.1
BANKS-REGIONAL
HSBC Holdings PLC......... HK 312,400 4,007,302 1.0
BANKS-MONEY CENTER
Land and House Co., Ltd. -
Foreign.................. THAI 185,000 3,898,683 1.0
REAL ESTATE
Internationale Nederlanden
Groep N.V................ NETH 66,044 3,653,951 1.0
BANKS-MONEY CENTER
Baloise Holding Ltd. -
Registered............... SWTZ 1,575 3,591,985 0.9
INSURANCE - MULTI-LINE
Banco InterContinental
Espanol.................. SPN 39,700 3,574,804 0.9
BANKS-MONEY CENTER
Axa Group................. FR 65,295 3,526,913 0.9
INSURANCE - MULTI-LINE
Barclays PLC.............. UK 305,000 3,276,519 0.9
BANKS-MONEY CENTER
Sparbanken Sverige AB
"A"...................... SWDN 365,000 3,062,754 0.8
INVESTMENT MANAGEMENT
M & G Group PLC........... UK 180,000 3,048,664 0.8
INVESTMENT MANAGEMENT
National Westminster Bank
PLC...................... UK 330,000 2,868,082 0.8
BANKS-MONEY CENTER
PT Bank Internasional
Indonesia - Foreign...... INDO 700,000 2,161,950 0.6
BANKS-MONEY CENTER
National Australia Bank
Ltd...................... AUSL 268,393 2,121,955 0.6
BANKS-MONEY CENTER
Sun Hung Kai Properties
Ltd...................... HK 276,000 2,042,185 0.5
REAL ESTATE
Skandia Forsakrings AB
Free..................... SWDN 102,510 1,988,268 0.5
INSURANCE - MULTI-LINE
Banco Central
HispanoAmericano S.A..... SPN 91,269 1,933,953 0.5
BANKS-MONEY CENTER
CMIC Finance & Securities
Co., Ltd. - Foreign
Registered............... THAI 429,000 1,651,672 0.4
SECURITIES BROKER
Phatra Thanakit Co., Ltd.
- Foreign................ THAI 133,800 1,117,033 0.3
SECURITIES BROKER
Mapfre Vida Seguros....... SPN 6,980 343,090 0.1
INSURANCE-LIFE
------------
74,194,095
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Technology (8.6%)
Matsushita-Kotobuki
Electronics Ltd.......... JPN 422,000 $ 8,266,113 2.2
COMPUTERS & PERIPHERALS
Hosiden Electronics....... JPN 740,000 7,772,008 2.0
COMPUTERS & PERIPHERALS
S.M.H. AG - Bearer........ SWTZ 9,795 6,297,394 1.6
SEMICONDUCTORS
Keyence Corp.............. JPN 40,000 4,484,305 1.2
INSTRUMENTATION & TEST
Kyushu-Matsushita Electric
Co., Ltd................. JPN 250,000 4,336,795 1.1
COMPUTERS & PERIPHERALS
Koei Co., Ltd............. JPN 41,000 1,025,726 0.3
SOFTWARE
Logica PLC................ UK 148,800 885,038 0.2
COMPUTERS & PERIPHERALS
------------
33,067,379
------------
Materials/Basic Industries
(8.1%)
Broken Hill Proprietary
Co., Ltd................. AUSL 409,255 5,039,671 1.3
MISC. MATERIALS &
COMPONENTS
Siam Cement Co., Ltd. -
Foreign.................. THAI 75,000 4,790,274 1.3
CEMENT
RWE AG.................... GER 10,275 3,571,166 0.9
MISC. MATERIALS &
COMPONENTS
PT Semen Gresik -
Foreign.................. INDO 463,000 3,109,546 0.8
CEMENT
Tarmac PLC................ UK 1,730,000 3,095,181 0.8
BUILDING MATERIALS &
COMPONENTS
Amcor Ltd................. AUSL 346,282 2,555,569 0.7
PAPER/PACKAGING
Wickes PLC................ UK 1,400,000 2,348,919 0.6
BUILDING MATERIALS &
COMPONENTS
Pilkington PLC............ UK 663,300 1,840,742 0.5
BUILDING MATERIALS &
COMPONENTS
Western Mining Corporation
Holdings Ltd............. AUSL 315,000 1,735,691 0.5
METALS - NON-FERROUS
N.V. Koninklijke Sphinx... NETH 46,642 1,668,152 0.4
BUILDING MATERIALS &
COMPONENTS
Construcciones y Auxiliar
de Ferrocarriles S.A..... SPN 32,848 1,316,091 0.3
BUILDING MATERIALS &
COMPONENTS
Hardie (James) Industries
Ltd...................... AUSL 95,000 149,947 --
BUILDING MATERIALS &
COMPONENTS
Dofasco, Inc.............. CAN 6 78 --
METALS - STEEL
------------
31,221,027
------------
Health Care (6.7%)
Takeda Chemical
Industries............... JPN 968,000 12,793,958 3.3
PHARMACEUTICALS
Sankyo Co., Ltd........... JPN 330,000 7,671,702 2.0
PHARMACEUTICALS
Roche Holdings AG
Genusscheine............. SWTZ 837 5,395,778 1.4
PHARMACEUTICALS
------------
25,861,438
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (6.4%)
Bic....................... FR 39,975 $ 6,593,135 1.7
OTHER CONSUMER GOODS
Matthew Clark PLC......... UK 635,200 6,313,613 1.7
BEVERAGES - ALCOHOLIC
Reliance Industries Ltd. -
144A GDR(INVERTED
TRIANGLE) (CHECK MARK)
(DIAMOND)................ IND 244,400 4,369,872 1.1
TEXTILES & APPAREL
Polygram.................. NETH 65,220 3,852,569 1.0
RECREATION
South African Breweries
Ltd...................... SAFR 69,100 1,971,978 0.5
BEVERAGES - ALCOHOLIC
Panamerican Beverages,
Inc. "A"(INVERTED
TRIANGLE)................ MEX 55,000 1,650,000 0.4
BEVERAGES - NON
ALCOHOLIC
------------
24,751,167
------------
Capital Goods (4.5%)
Nokia AB "A"(CHECK
MARK).................... FIN 142,990 8,373,741 2.2
TELECOM EQUIPMENT
Daifuku................... JPN 373,000 4,177,213 1.1
MACHINERY & ENGINEERING
Telefonaktiebolaget LM
Ericsson "B" Free........ SWDN 201,200 4,013,151 1.1
TELECOM EQUIPMENT
E.R.G. Ltd................ AUSL 523,000 535,457 0.1
ELECTRICAL
PLANT/EQUIPMENT
Electrocomponents PLC..... UK 18,000 171,756 --
ELECTRICAL
PLANT/EQUIPMENT
------------
17,271,318
------------
Energy (4.1%)
Sasol Ltd................. SAFR 700,000 6,710,219 1.8
ENERGY SOURCE
Yukong Ltd.:.............. KOR -- -- 0.6
OIL
Common.................. -- 47,890 2,082,350 --
New(CHECK MARK)......... -- 11,478 484,113 --
C.A. La Electricidad de
Caracas.................. VENZ 2,129,230 2,226,921 0.6
ELECTRICAL & GAS
UTILITIES
Korea Electric Power
Corp.(CHECK MARK)........ KOR 55,050 2,165,116 0.6
ELECTRICAL & GAS
UTILITIES
Oil Search Ltd............ AUSL 2,302,000 1,718,521 0.5
OIL
------------
15,387,240
------------
Consumer Durables (3.6%)
Samsung Electronics Co.
:........................ KOR -- -- 2.0
CONSUMER ELECTRONICS
GDR(INVERTED
TRIANGLE).............. -- 55,000 2,860,000 --
Preferred(CHECK MARK)... -- 22,803 1,966,917 --
Common(CHECK MARK)...... -- 8,816 1,567,509 --
Preferred New........... -- 6,491 543,097 --
New - GDR
Non-voting(INVERTED
TRIANGLE).............. -- 9,220 465,057 --
New..................... -- 1,744 300,785 --
New - 144A GDR(INVERTED
TRIANGLE) (CHECK MARK)
(DIAMOND).............. -- 3,729 268,488 --
New - GDR
Voting(INVERTED
TRIANGLE).............. -- 737 51,472 --
PSA Peugeot Citroen
S.A.(CHECK MARK)......... FR 24,625 3,416,684 0.9
AUTOMOBILES
AFG Arbonia-Forster
Holding AG - Bearer(CHECK
MARK).................... SWTZ 1,515 1,948,045 0.5
APPLIANCES & HOUSEHOLD
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables
(Continued)
Futuris Corp., Ltd........ AUSL 775,084 $ 578,627 0.2
AUTO PARTS
------------
13,966,681
------------
Multi-Industry/Miscellaneous
(1.7%)
Barlow Ltd................ SAFR 400,000 4,098,473 1.1
CONGLOMERATE
Grupo Carso, S.A. de C.V.
"A1"(CHECK MARK)......... MEX 451,000 2,471,827 0.6
CONGLOMERATE
------------
6,570,300
------------ -----
Total Equity Investments
(cost $358,290,887)........ 383,750,818 100.4
------------ -----
------------ -----
<CAPTION>
Principal Market % of Net
Fixed Income Investments Currency Amount Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (0.8%)
<C> <C> <C> <C>
Japan (0.7%)
Koei Co. Ltd.,
Convertible Bond, 1.2%
due 9/29/95............ JPY 215,000,000 2,516,875 0.7
Thailand (0.1%)
Siam Syntech
Construction Co.,
Convertible Bond, 4.5%
due 2/25/02............ USD 440,000 253,000 0.1
------------
Total Corporate Bonds (cost
$3,133,552)................ 2,769,875
------------ -----
Total Fixed Income
Investments (cost
$3,133,552)................ 2,769,875 0.8
------------ -----
------------ -----
<CAPTION>
Underlying
Nominal Market % of Net
Options Currency Amount Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
USD Call/ JPY Put Option,
Strike JPY100, expires
10/9/95 (cost
$3,934,000)............... USD 140,000,000 28,000 --
------------ -----
------------ -----
<CAPTION>
No. of Market % of Net
Warrants (0.0%) Country Warrants Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
CMIC Finance & Securities
Co., Ltd. Warrants, expire
12/31/99 (cost
$43,003)(CHECK MARK)...... THAI 107,250 -- --
SECURITIES BROKER
------------ -----
Total Investments (cost
$365,401,442)(DELTA)....... 386,548,693 101.2
Other Assets and
Liabilities................ (4,442,665) (1.2)
------------ -----
Net Assets.................. $382,106,028 100.0
------------ -----
------------ -----
<FN>
-----------------
* Percentages indicated are based on net assets of $382,106,028.
(CHECK Non-income producing security.
MARK)
(INVERTED U.S. currency denominated.
TRIANGLE)
(DIAMOND) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
(DELTA) For Federal income tax purposes, cost is $367,072,830 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 51,873,130
Unrealized depreciation: (32,397,267)
-------------
Net unrealized appreciation: $ 19,475,863
-------------
-------------
</TABLE>
<TABLE>
<C> <S>
Abbreviations:
ADR - American Depository Receipt
GDR - Global Depository Receipt
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-5
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets *
----------------------------------------------
Fixed
Income,
Rights &
Country (Country Code/Currency Code) Equity Warrants Short-Term Total
-------------------------------------- ------ ---------- ---------------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD).................. 4.4 4.4
Canada (CAN/CAD)...................... 0.0 0.0
Finland (FIN/FIM)..................... 2.2 2.2
France (FR/FRF)....................... 5.8 5.8
Germany (GER/DEM)..................... 2.3 2.3
Hong Kong (HK/HKD).................... 1.5 1.5
India (IND/INR)....................... 1.1 1.1
Indonesia (INDO/IDR).................. 1.4 1.4
Italy (ITLY/ITL)...................... 1.1 1.1
Japan (JPN/JPY)....................... 27.3 0.7 28.0
Korea (KOR/KRW)....................... 3.2 3.2
Malaysia (MAL/MYR).................... 0.5 0.5
Mexico (MEX/MXN)...................... 1.0 1.0
Netherlands (NETH/NLG)................ 7.2 7.2
Philippines (PHIL/PHP)................ 1.9 1.9
Singapore (SING/SGD).................. 1.1 1.1
South Africa (S AFR/ZAR).............. 3.4 3.4
Spain (SPN/ESP)....................... 3.0 3.0
Sweden (SWDN/SEK)..................... 3.2 3.2
Switzerland (SWTZ/CHF)................ 5.5 5.5
Thailand (THAI/THB)................... 5.3 0.1 5.4
United Kingdom (UK/GBP)............... 17.4 17.4
United States (US/USD)................ (1.2 ) (1.2)
Venezuela (VENZ/VEB).................. 0.6 0.6
------ --- ----- -----
Total................................. 100.4 0.8 (1.2 ) 100.0
------ --- ----- -----
------ --- ----- -----
<FN>
----------------
* Percentages indicated are based on net assets of $382,106,028.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-6
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
WRITTEN OPTION CONTRACTS OUTSTANDING
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
Underlying
Expiration Nominal
Strike Date Amount Currency
---------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
JPY Call/USD Put (Cost $3,934,000)................................ JPY92.92 10/09/95 140,000,000 USD
<CAPTION>
Market Value
-------------
<S> <C>
JPY Call/USD Put (Cost $3,934,000)................................ $ 15,694,000
<FN>
----------------
See Notes 1 and 6 to the financial statements.
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
Market Value Unrealized
(U.S. Contract Delivery Appreciation
Contracts to Buy: Dollars) Price Date (Depreciation)
------------------------------------------------------------------------------ ------------- ---------- --------- -------------
<S> <C> <C> <C> <C>
Deutsche Marks................................................................ 3,621,876 1.44041 08/03/95 $ 150,642
Deutsche Marks................................................................ 1,448,750 1.45543 08/03/95 74,586
Japanese Yen.................................................................. 66,613,749 83.11500 08/09/95 (934,588)
------------- -------------
Total Contracts to Buy (Payable amount $72,393,735)......................... 71,684,375 (709,360)
------------- -------------
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 18.76%
Contracts to Sell:
------------------------------------------------------------------------------
Deutsche Marks................................................................ 9,054,690 1.37248 08/03/95 52,944
French Francs................................................................. 1,232,543 5.08825 08/04/95 (56,501)
French Francs................................................................. 9,011,329 4.95000 08/04/95 (172,945)
French Francs................................................................. 14,088,871 4.96615 08/16/95 (311,075)
French Francs................................................................. 3,616,962 5.08937 08/18/95 (165,356)
Netherland Guilders........................................................... 4,594,577 1.59740 08/15/95 (149,854)
Netherland Guilders........................................................... 7,636,058 1.60070 08/15/95 (264,283)
Swedish Krona................................................................. 1,398,362 7.50080 08/22/95 (37,174)
Swiss Francs.................................................................. 15,875,785 1.20510 08/17/95 (773,304)
------------- -------------
Total Contracts to Sell (Receivable amount $64,631,629)..................... 66,509,177 (1,877,548)
------------- -------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 17.41%
Total Open Forward Foreign Currency Contracts, Net.......................... $(2,586,908)
-------------
-------------
<FN>
----------------
See Note 1 to the financial statements.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-7
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (cost $365,401,442) (Note 1).................................. $ 386,548,693
Foreign currencies (cost $6,467,490).............................................................. 6,447,283
Receivable for securities sold.................................................................... 20,375,179
Dividends and dividend withholding tax reclaims receivable........................................ 1,510,151
Receivable for Fund shares sold................................................................... 169,290
Interest and interest withholding tax reclaims receivable......................................... 14,771
Cash held as collateral for securities loaned (Note 1)............................................ 34,147,710
-------------
Total assets...................................................................................... 449,213,077
-------------
Liabilities:
Payable for written options (premium received $3,934,000) (Notes 1 & 6)........................... 15,694,000
Due to custodian.................................................................................. 10,359,809
Payable for open forward foreign currency contracts -- net (Note 1)............................... 2,586,908
Payable for Fund shares repurchased............................................................... 1,744,837
Payable for securities purchased.................................................................. 1,720,071
Payable for investment management and administration fees (Note 2)................................ 326,098
Payable for transfer agent fees (Note 2).......................................................... 161,600
Payable for service and distribution expenses (Note 2)............................................ 152,175
Payable for printing and postage expenses......................................................... 56,769
Payable for registration fees..................................................................... 47,906
Payable for custodian and fund accounting fees (Note 1)........................................... 42,503
Payable for Trustees' fees and expenses (Note 2).................................................. 10,700
Payable for professional fees..................................................................... 9,807
Accrued expenses.................................................................................. 46,156
Collateral for securities loaned (Note 1)......................................................... 34,147,710
-------------
Total liabilities................................................................................. 67,107,049
-------------
Net assets.......................................................................................... $ 382,106,028
-------------
-------------
Class A:
Net asset value and redemption price per share
($316,134,640 DIVIDED BY 36,821,104 shares outstanding)........................................... $ 8.59
-------------
-------------
Maximum offering price per share
(100/95.25 of $8.59)*.............................................................................. $ 9.02
-------------
-------------
Class B:+
Net asset value and offering price per share
($65,662,013 DIVIDED BY 7,760,694 shares outstanding)............................................. $ 8.46
-------------
-------------
Advisor Class (Notes 1 & 4):
Net asset value, offering price per share, and redemption price per share
($309,375 DIVIDED BY 36,006 shares outstanding)................................................... $ 8.59
-------------
-------------
Net assets consist of:
Paid in capital (Note 4).......................................................................... $ 376,823,896
Undistributed net investment income............................................................... 1,464,048
Accumulated net realized loss on investments and foreign currency transactions.................... (3,154,480)
Net unrealized depreciation on translation of assets and liabilities in foreign currencies........ (2,414,687)
Net unrealized appreciation of investments and written options.................................... 9,387,251
-------------
Total -- representing net assets applicable to capital shares outstanding......................... $ 382,106,028
-------------
-------------
<FN>
----------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-8
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS
Six months ended June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income (Note 1):
Dividend income (net of foreign tax withheld of $963,281)............................................ $ 4,191,297
Interest income...................................................................................... 1,178,292
------------
Total investment income.............................................................................. 5,369,589
------------
Expenses:
Investment management and administration fees (Note 2)............................................... 2,101,913
Service and distribution expenses (Note 2):
Class A.............................................................................. $ 639,105
Class B.............................................................................. 329,614 968,719
------------
Transfer agent fees (Note 2)......................................................................... 579,592
Custodian and fund accounting fees (Note 1).......................................................... 251,621
Printing and postage expenses........................................................................ 78,678
Registration fees.................................................................................... 49,775
Professional fees.................................................................................... 36,434
Trustees' fees and expenses (Note 2)................................................................. 3,285
Other expenses....................................................................................... 6,419
------------
Total expenses before expense reductions............................................................. 4,076,436
Expense reductions (Notes 1 & 5)................................................................... (170,895)
------------
Total net expenses................................................................................... 3,905,541
------------
Net investment income.................................................................................. 1,464,048
------------
Net realized and unrealized loss on investments and foreign currencies (Note 1):
Net realized loss on investments....................................................... (3,701,671)
Net realized loss on foreign currency transactions..................................... (5,848,951)
------------
Net realized loss during the period................................................................ (9,550,622)
Net change in unrealized depreciation on translation of assets and liabilities in
foreign currencies.................................................................... (3,230,634)
Net change in unrealized appreciation of investments................................... (21,425,158)
------------
Net unrealized depreciation during the period...................................................... (24,655,792)
------------
Net realized and unrealized loss on investments and foreign currencies................................. (34,206,414)
------------
Net decrease in net assets resulting from operations................................................... $(32,742,366)
------------
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-9
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
---------------- -----------------
<S> <C> <C>
Decrease in net assets
Operations:
Net investment income (loss).............. $ 1,464,048 $ (618,214)
Net realized gain (loss) on investments
and foreign currency transactions........ (9,550,622) 66,237,292
Net change in unrealized appreciation
(depreciation) on translation of assets
and liabilities in foreign currencies.... (3,230,634) (4,100,341)
Net change in unrealized appreciation of
investments.............................. (21,425,158) (100,302,042)
---------------- -----------------
Net decrease in net assets resulting from
operations............................... (32,742,366) (38,783,305)
---------------- -----------------
Class A:
Distributions to shareholders (Note 1):
From net investment income................ -- (1,684,749)
From net realized gain on investments..... -- (40,336,515)
Class B:
Distributions to shareholders (Note 1):
From net investment income................ -- (280,442)
From net realized gain on investments..... -- (6,714,382)
Capital share transactions (Note 4):
Increase from capital shares sold and
reinvested............................... 541,828,385 1,036,090,550
Decrease from capital shares
repurchased.............................. (629,475,362) (999,937,817)
---------------- -----------------
Net increase (decrease) from capital share
transactions............................. (87,646,977) 36,152,733
---------------- -----------------
Total decrease in net assets................ (120,389,343) (51,646,660)
Net assets:
Beginning of period....................... 502,495,371 554,142,031
---------------- -----------------
End of period............................. $ 382,106,028 $ 502,495,371
---------------- -----------------
---------------- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-10
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding,
total investment return, ratios and supplemental data. This information has been
derived from information provided in the financial statements.
<TABLE>
<CAPTION>
CLASS A+
-------------------------------------------------------------------------
SIX MONTHS
ENDED JUNE YEAR ENDED DECEMBER 31,
30, 1995 ---------------------------------------------------------
(UNAUDITED) 1994 1993(A) 1992 1991 1990
---------- -------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.17 $ 11.02 $ 8.21 $ 8.74 $ 7.82 $ 9.25
---------- -------- ------- -------- ------- -------
Income from investment operations:
Net investment income (loss)............ 0.04 (0.04) 0.03 0.11 0.14 0.10
Net realized and unrealized gain (loss)
on investments......................... (0.62) (0.82) 2.78 (0.62) 0.89 (1.42)
---------- -------- ------- -------- ------- -------
Net increase (decrease) in net asset
value resulting from investment
operations............................. (0.58) (0.86) 2.81 (0.51) 1.03 (1.32)
---------- -------- ------- -------- ------- -------
Distributions to shareholders:
From net investment
income............................... -- (0.04) -- (0.02) (0.11) (0.11)
From net realized gain on
investments.......................... -- (0.95) -- -- -- --
---------- -------- ------- -------- ------- -------
Total distributions................. -- (0.99) -- (0.02) (0.11) (0.11)
---------- -------- ------- -------- ------- -------
Net asset value, end of
period................................. $ 8.59 $ 9.17 $ 11.02 $ 8.21 $ 8.74 $ 7.82
---------- -------- ------- -------- ------- -------
---------- -------- ------- -------- ------- -------
Total investment
return (d)............................. (6.32)%(b) (7.78)% 34.2% (5.8)% 13.2% (14.3)%
---------- -------- ------- -------- ------- -------
---------- -------- ------- -------- ------- -------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $316,135 $430,701 $523,397 $421,693 $463,851 $343,949
Ratio of net investment income (loss) to
average net assets..................... 0.78%(c) (0.04)% 0.3% 1.2% 1.5% 1.4%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.71%(c) 1.70% 1.8% 1.9% 1.9% 1.9%
Without expense
reductions........................... 1.79%(c) 1.75% --%* --%* --%* --%*
Portfolio turnover rate++++............. 74%(c) 96% 90% 89% 83% 58%
<CAPTION>
ADVISOR
CLASS B++ CLASS+++
--------------------------------------- -----------
YEAR APRIL 1, JUNE 1,
SIX MONTHS ENDED 1993 TO 1995 TO
ENDED JUNE DECEMBER DECEMBER JUNE 30,
30, 1995 31, 31, 1995
(UNAUDITED) 1994 1993(A) (UNAUDITED)
---------- ------- ---------- -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.07 $10.98 $ 8.74 $ 8.49
---------- ------- ---------- -----------
Income from investment operations:
Net investment income (loss)............ 0.01 (0.10) (0.01) 0.01
Net realized and unrealized gain (loss)
on investments......................... (0.62) (0.82) 2.25 0.09
---------- ------- ---------- -----------
Net increase (decrease) in net asset
value resulting from investment
operations............................. (0.61) (0.92) 2.24 0.10
---------- ------- ---------- -----------
Distributions to shareholders:
From net investment
income............................... -- (0.04) -- --
From net realized gain on
investments.......................... -- (0.95) -- --
---------- ------- ---------- -----------
Total distributions................. -- (0.99) -- --
---------- ------- ---------- -----------
Net asset value, end of
period................................. $ 8.46 $ 9.07 $ 10.98 $ 8.59
---------- ------- ---------- -----------
---------- ------- ---------- -----------
Total investment
return (d)............................. (6.73)%(b) (8.36)% 25.6%(b) 1.18%(b)
---------- ------- ---------- -----------
---------- ------- ---------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 65,662 $71,794 $ 30,745 $ 309
Ratio of net investment income (loss) to
average net assets..................... 0.13%(c) (0.69) % (0.4)%(c) 1.13%(c)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.36%(c) 2.35% 2.4%(c) 1.36%(c)
Without expense
reductions........................... 2.44%(c) 2.40% --%* 1.44%(c)
Portfolio turnover rate++++............. 74%(c) 96% 90% 74%(c)
<FN>
--------------------
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(a) Calculated based upon weighted average shares outstanding during the
period.
(b) Not annualized.
(c) Annualized.
(d) Total investment return does not include sales charges.
* Calculation of "Ratio of expenses to average net assets" was made without
considering the effect of expense reductions, if any.
</TABLE>
F-11
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global International Growth Fund ("Fund"), is a separate series of G.T.
Global Growth Series ("Company"). The Company is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended ("1940 Act"), as a diversified, open-end management investment company.
The Company has six series of shares in operation, each series corresponding to
a distinct portfolio of investments.
The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. The Fund
commenced sale of Advisor Class shares on June 1, 1995. Investment income,
realized and unrealized capital gains and losses, and the common expenses of the
Fund are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the Fund. Each class of shares
differs in its respective distribution, transfer agent, registration, and
certain other class-specific fees and expenses.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles.
(A) PORTFOLIO VALUATION
The Fund calculates the net asset value of Fund shares and completes orders to
purchase, exchange or repurchase Fund shares on each business day, with the
exception of those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded or on the principal over-the-counter market in which
such securities are traded, as of the close of business on the day the
securities are being valued, or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by G.T. Capital Management,
Inc. ("G.T. Capital") to be the primary market.
Fixed income investments are valued at the mean of representative quoted bid and
asked prices for such investments or, if such prices are not available, at
prices for investments of comparative maturity, quality and type; however, when
G.T. Capital deems it appropriate, prices obtained for the day of valuation from
a bond pricing service will be used. Short-term investments with a maturity of
60 days or less are valued at amortized cost, adjusted for foreign exchange
translation and market fluctuation, if any.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, other assets and liabilities
are recorded in the books and records of the Fund after translation to U.S.
dollars based on the exchange rates on that day. The cost of each security is
determined using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains and losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities
F-12
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
other than investments in securities at period end, resulting from changes in
exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, U.S. government securities or other
high quality debt securities of which the value, including accrued interest, is
at least equal to the amount to be repaid to the Fund under each agreement at
its maturity. G.T. Global is responsible for determining that the value of these
underlying securities remain at least equal to the resale price.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
Forward Contract is closed, the Fund records a realized gain or loss equal to
the difference between the value at the time it was opened and the value at the
time it was closed. The Fund could be exposed to risk if a counterparty is
unable to meet the terms of a contract or if the value of the currency changes
unfavorably. The Fund may enter into Forward Contracts in connection with
planned purchases or sales of securities, or to hedge against adverse
fluctuations in exchange rates between currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When the Fund writes a call or put option, an amount equal to the premium
received is included in the Fund's "Statement of Assets and Liabilities" as an
asset and an equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers. If an option expires on its
stipulated expiration date or if the Fund enters into a closing purchase
transaction, a gain or loss is realized without regard to any unrealized gain or
loss on the underlying security, and the liability related to such option is
extinguished. If a written call option is exercised, a gain or loss is realized
from the sale of the underlying security and the proceeds of the sale are
increased by the premium originally received. If a written put option is
exercised, the cost of the underlying security purchased would be decreased by
the premium originally received. The Fund can write options only on a covered
basis, which, for a call, requires that the Fund hold the underlying security,
and, for a put, requires the Fund to set aside cash, U.S. government securities
or other liquid, high grade debt securities in an amount not less than the
exercise price or otherwise provide adequate cover at all times while the put
option is outstanding. The Fund may use options to manage its exposure to the
stock market and to fluctuations in currency values or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. 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
F-13
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
was closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other than normal settlement terms. This may increase the risk if
the other party to the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At June 30, 1995, stocks with an aggregate value of approximately $32,316,993
were on loan to brokers. The loans were secured by cash collateral of
$34,147,710, received by the Fund. Cash collateral is received by the Fund
against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For the period ended June 30, 1995,
the Fund received securities lending fees of $97,096 which were used to reduce
custodian fees.
(I) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, or excise tax on income
and capital gains.
(J) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments in emerging market
countries may involve greater risks than investments in more developed markets,
and the prices of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(L) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed restricted securities. These
securities may be resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.
(M) INDEXED SECURITIES
The Fund may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.
2. RELATED PARTIES
G.T. Capital is the Fund's investment manager and
administrator. The Fund pays investment management and administration fees at
the following annualized rates: 0.975% on the first $500 million of average
daily net assets of the Fund; 0.95% on the next $500 million; 0.925% on the next
$500 million and 0.90% on amounts thereafter. These fees are computed daily and
paid monthly, and are subject to reduction in any year to the extent that the
Fund's expenses (exclusive of brokerage commissions, taxes, interest,
distribution-related expenses and extraordinary expenses) exceed the most
stringent limits prescribed by the laws or regulations of any state in which the
Fund's shares are offered for sale, based on the average total net asset value
of the Fund.
G.T. Global Financial Services, Inc. ("G.T. Global"), an affiliate of G.T.
Capital, serves as the Fund's distributor. The Fund offers Class A, Class B, and
Advisor Class shares for purchase.
F-14
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. G.T. Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the period ended June 30, 1995, G.T. Global retained $28,176
of such sales charges. Purchases of Class A shares exceeding $500,000 may be
subject to a contingent deferred sales charge ("CDSC") upon redemption, in
accordance with the Fund's current prospectus. G.T. Global collected CDSCs in
the amount of $29,163 for the period ended June 30, 1995. G.T. Global also makes
ongoing shareholder servicing and trail commission payments to dealers whose
clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, G.T. Global from its own resources pays commissions to dealers through
which the sales are made. Certain redemptions of Class B shares made within six
years of purchase are subject to CDSCs, in accordance with the Fund's current
prospectus. During the period ended June 30, 1995, G.T. Global collected CDSCs
in the amount of $128,474. In addition, G.T. Global makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class B
shares.
Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Trustees has
adopted separate distribution plans with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses G.T. Global for a portion of its shareholder servicing and
distribution expenses. Under the Class A Plan, the Fund may pay G.T. Global a
service fee at the annualized rate of up to 0.25% of the average daily net
assets of the Fund's Class A shares for its expenditures incurred in servicing
and maintaining shareholder accounts, and may pay G.T. Global a distribution fee
at the annualized rate of up to 0.35% of the average daily net assets of the
Fund's Class A shares, less any amounts paid by the Fund as the aforementioned
service fee, for its expenditures incurred in providing services as distributor.
All expenses for which G.T. Global is reimbursed under the Class A Plan will
have been incurred within one year of such reimbursement.
Pursuant to the Fund's Class B Plan, the Fund may pay G.T. Global a service fee
at the annualized rate of up to 0.25% of the average daily net assets of the
Fund's Class B shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may pay G.T. Global a distribution fee at the
annualized rate of up to 0.75% of the average daily net assets of the Fund's
Class B shares for its expenditures incurred in providing services as
distributor. Expenses incurred under the Class B Plan in excess of 1.00%
annually may be carried forward for reimbursement in subsequent years as long as
that Plan continues in effect.
G.T. Capital and G.T. Global have voluntarily undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest and extraordinary
items) to the maximum annual level of 2.25%, and 2.90%, and 1.90% of the average
daily net assets of the Fund's Class A, Class B, and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by G.T.
Capital of investment management and administration fees, waivers by G.T. Global
of payments under the Class A Plan and/or Class B Plan and/or reimbursements by
G.T. Capital or G.T. Global of portions of the Fund's other operating expenses.
G.T. Global Investor Services, Inc. ("G.T. Services"), an affiliate of G.T.
Capital and G.T. Global, is the transfer agent of the Fund.
The Company pays each of its Trustees who is not an employee, officer or
director of G.T. Capital, G.T. Global or G.T. Services $5,000 per year plus $300
for each meeting of the board or any committee thereof attended by the Trustee.
3. PURCHASES AND SALES OF SECURITIES
For the period ended June 30, 1995, purchases and sales of investment securities
by the Fund, other than U.S. government obligations and short-term investments,
aggregated $145,623,255 and $213,268,473, respectively. There were no purchases
or sales of U.S. government obligations by the Fund during the period.
F-15
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
4. CAPITAL SHARES
At June 30, 1995, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the Fund
were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 (UNAUDITED) DECEMBER 31, 1994
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold............................................................... 62,434,431 $ 527,809,252 86,542,390 $ 926,900,205
Shares issued in connection with reinvestment of distributions............ -- -- 3,799,540 34,613,815
----------- ------------- ----------- -------------
62,434,431 527,809,252 90,341,930 961,514,020
Shares repurchased........................................................ (72,563,426) (614,511,265) (90,893,714) (979,657,620)
----------- ------------- ----------- -------------
Net decrease.............................................................. (10,128,995) $ (86,702,013) (551,784) $ (18,143,600)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 (UNAUDITED) DECEMBER 31, 1994
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS B
Shares sold............................................................... 1,632,827 $ 13,682,637 6,350,365 $ 68,347,089
Shares issued in connection with reinvestment of distributions............ -- -- 691,392 6,229,441
----------- ------------- ----------- -------------
1,632,827 13,682,637 7,041,757 74,576,530
Shares repurchased........................................................ (1,790,923) (14,941,093) (1,924,260) (20,280,197)
----------- ------------- ----------- -------------
Net increase (decrease)................................................... (158,096) $ (1,258,456) 5,117,497 $ 54,296,333
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT OF SALE OF
SHARES)
TO JUNE 30, 1995
(UNAUDITED)
--------------------------
SHARES AMOUNT
----------- -------------
<S> <C> <C>
ADVISOR CLASS
Shares sold............................................................... 38,684 $ 336,496
Shares repurchased........................................................ (2,678) (23,004)
----------- -------------
Net increase.............................................................. 36,006 $ 313,492
----------- -------------
----------- -------------
</TABLE>
5. EXPENSE REDUCTIONS
G.T. Capital has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the period ended June 30, 1995, the Fund's expenses
were reduced by $73,799 under these arrangements.
6. COVERED CALL OPTIONS WRITTEN
The Fund's written options contracts activity for the period ended June 30, 1995
was as follows:
<TABLE>
<CAPTION>
UNDERLYING
NOMINAL
AMOUNT IN
USD PREMIUMS
----------- ----------
<S> <C> <C>
Options outstanding at December 31, 1994.................................................................. 140,000,000 $3,934,000
Options written during the period ended June 30, 1995..................................................... -- --
Options cancelled in closing purchase transactions........................................................ -- --
Options expired prior to exercise......................................................................... -- --
Options exercised......................................................................................... -- --
----------- ----------
Options outstanding at June 30, 1995...................................................................... 140,000,000 $3,934,000
----------- ----------
----------- ----------
</TABLE>
F-16
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
NOTES
--------------------------------------------------------------------------------
<PAGE>
G.T. GLOBAL INTERNATIONAL GROWTH FUND
[LOGO]
G.T. GLOBAL GROUP OF FUNDS
G.T. GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY
INVESTORS' PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE
G.T. GLOBAL MUTUAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL
G.T. GLOBAL DIRECTLY AT 1-800-824-1580. THE PROSPECTUS CONTAINS MORE
COMPLETE INFORMATION, INCLUDING CHARGES, EXPENSES AND RISKS. INVESTORS
SHOULD READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
G.T. GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
G.T. GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside
the U.S.
G.T. GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
G.T. GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
G.T. GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
G.T. GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
G.T. GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
G.T. GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
G.T. GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail or distribute consumer
products or services.
/ / REGIONALLY DIVERSIFIED FUNDS
G.T. GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim
G.T. GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
G.T. LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
G.T. GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
G.T. GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
G.T. GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
G.T. GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
G.T. GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
G.T. GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
G.T. GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
[LOGO]
G.T. GLOBAL FINANCIAL SERVICES
FIFTY CALIFORNIA STREET, 27TH FLOOR
SAN FRANCISCO, CALIFORNIA 94111
DATED MATERIAL
PLEASE EXPEDITE
