<PAGE>
G.T. GROUP
[LOGO]
TWENTY-FIVE
YEARS OF
PROVIDING
ACCESS TO
GLOBAL MARKETS
/ /
G.T. GLOBAL
NEW PACIFIC
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 New Pacific Growth Fund seeks long-term growth of capital
through a portfolio of investments in the equity markets of the Asian Pacific
Rim, excluding Japan.
PERFORMANCE REVIEW
Total return for the six months ending June 30, 1995, for Class A shares was
4.88% (-0.11% with the maximum sales charge of 4.75%); for Class B shares it was
4.43% (-0.57% with the maximum 5% contingent deferred sales charge). For the
first half of 1995, the Morgan Stanley Capital International (MSCI) Pacific Ex-
Japan Index(1) returned 7.18%. For additional performance information, please
see page 7.
The Fund's underperformance relative to the index was caused by a relatively
high cash level in February when regional markets staged a strong rebound after
the January selloff. The Fund was also underweighted in Hong Kong and Malaysia,
two of the better performing markets of the first quarter.
MARKET REVIEW
For the regional stock markets, 1995 began with an extremely volatile quarter,
triggered by the extension of the Mexican currency debacle to Southeast Asia.
Nervous investors indiscriminately cut back exposure to emerging markets, while
central banks across the region had to defend their currencies vigorously
against heavy speculative selling. This was the case for the Thai baht,
Philippine peso, Indonesian rupiah and even the Hong Kong dollar.
For the dollar bloc countries, a bad situation became worse as the U.S. dollar
weakened. It was not until the end of the first quarter, when the U.S. Federal
Reserve Board commented on the possible slowdown of the U.S. economy, that the
markets regained their postures. This was later reinforced by the decline of the
U.S. long bond yield from 8% to 6.5%. Almost all regional markets finished the
first half at highs for the year.
Notwithstanding the prospect of lower interest rates, Hong Kong stands out as a
notable exception to the domestic strength that most of its regional
counterparts
--------------
(1) The MSCI Pacific ex-Japan Index is an arithmetic average, weighted by market
value, of the performance of securities listed on five major Pacific Rim
stock exchanges (Australia, Hong Kong, Malaysia, New Zealand and Singapore).
It includes the effect of reinvested dividends and is measured in U.S.
dollars.
1
<PAGE>
have been experiencing. Unemployment has been on a steady uptrend and consumer
spending is down. On the other hand, China looks set to achieve a soft landing.
Economic figures continue to point to a controllable slowdown of the economy.
Inflation, which reached a peak of 27% last October, came down to 18% in June.
With the apparent stability of the ruling coalition and the success of economic
reforms, the political succession issue seems to have become less troublesome.
One concern, however, is the recent deterioration in the Sino-U.S. relationship
over Taiwan President Lee's visit to the U.S. and human rights issues.
Elsewhere in the region, Malaysia, facing a growing current account deficit
(i.e., balance of goods and services plus net private and government transfers),
managed to temporarily postpone increasing interest rates substantially by
allowing the ringitt to appreciate and boosting stronger long-term investment
inflows. However, given the strength of the domestic economy and the ongoing
infrastructure boom, it seems a period of tighter fiscal and monetary policies
is inevitable in early 1996. To promote Malaysia as a regional capital market,
authorities recently announced a wide range of measures to open up its
investment management industry. These include raising the equity exposure of the
government-sponsored retirement fund and allowing foreign management companies
to set up wholly owned subsidiaries in the country.
In Thailand the tight liquidity environment of the early part of the year has
been eased by strong capital inflows, with interbank rates falling from 16% to
10%. Towards the end of the second quarter, Prime Minister Chuan dissolved the
parliament and called for an election. In the past, Thai politics have had
little influence on the economy; major policy decisions have been driven by a
group of technocratic civil servants. It appears no different this time,
although some short-term uncertainty has been created about the policy direction
of the master plans on the telecom, power and finance sectors.
Singapore registered another uneventful period while Indonesia appears ready to
attract strong capital inflows drawn by its relatively high short- and long-term
domestic interest rates.
The key change in the Australian financial market has been the downward shift in
interest rates. After trading around 10% for most of the first quarter, bond
yields finished the end of June at 9.3%. In our opinion, expectations of slower
economic growth, lower than expected inflation and increasing probabilities of
rate cuts in
2
<PAGE>
the major overseas economies have pushed any further increases in domestic
monetary policy out until well into 1996. In fact, with a federal election
scheduled within the next 10 months, a small cut in domestic interest rates
cannot be ruled out.
INVESTMENT STRATEGY
Generally, we believe the markets of the Pacific region, most of which are
dollar-bloc economies, will continue to benefit from lower U.S. interest rates
since the trend of their interest rate movements broadly tracks U.S. rates. The
recent strength of the markets, however, has discounted much of this trend. We
may take some profits and increase the Fund's cash level slightly.
In Hong Kong, activity in the property market remains slow and most of the
property developers are trading at around net asset value (NAV), making their
valuations less attractive. The bulk of our Hong Kong exposure continues to be
through banks and conglomerates. Although both office rental and capital value
are still on a downward trend, the rate of decline has slowed and most of the
property investment companies are trading at an unjustifiably large discount to
NAV. We believe this discount will narrow and are increasing our positions in
selected office property stocks accordingly. We are cutting back our holding in
Yizheng Chemical,(2) the largest polyester manufacturer in China, as we
anticipate supplies increasing and prices possibly dropping.
Elsewhere, we have increased our weighting in Malaysia based on stronger export
growth, which we expect to help reduce both the current account deficit and
pressure on rising interest rates. We view the forthcoming listing of Petronas
Gas, the distribution arm of the state-owned gas company, and the government's
interest in opening up capital markets as supportive of the country's stock
market.
We currently plan to hold onto our existing positions in Singapore and probably
increase holdings in Thailand, particularly in the infrastructure area which
appears to be capturing the attention of the new coalition government. The banks
have done extremely well and while they remain attractive on valuation grounds,
we are inclined to take some profit here. The telecommunication sector remains
--------------
(2) There is no assurance the Fund will continue to hold this or any other
security mentioned in this report.
3
<PAGE>
overvalued and there is now more uncertainty as to the granting of new
concessions to the existing fixed line operators.
For the first time in 18 months, Indonesia is starting to see strong capital
inflows. The overnight interbank rate dropped from 16% to 14% and looks set to
fall further, which we believe should bode well for banks in terms of widening
profit margins. We look to selectively increase our core exposures in Indonesia.
In Australia, we expect to increase our weighting towards banks, which have
lagged in performance during the first half of 1995. In the broad market, there
are few clear guiding lights for the stock market. Equities appear fairly valued
relative to bonds, earnings are drifting down and are likely to continue to do
so for at least the next 12 months, and liquidity is at best neutral. We will
continue to maintain a relatively underweighted position in Australia. These
strategies are, of course, subject to market conditions.
We strongly believe that the Asian Pacific region will remain a high growth area
and that the regional stock markets will continue the rapid expansion they have
experienced over the past decade. In particular, we see China as a major force
and the development of its economy and financial sector should provide
significant investment opportunities.
CHRISTIAN WIGNALL LAWRENCE YIP
CHIEF INVESTMENT OFFICER PORTFOLIO MANAGER
GLOBAL EQUITIES HONG KONG
SAN FRANCISCO
JULY 25, 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.
G.T. GLOBAL NEW PACIFIC GROWTH FUND
4
<PAGE>
KEY PORTFOLIO HOLDINGS*
HSBC HOLDINGS PLC HONG KONG
Through Midland Bank in the UK and Hong Kong Shanghai Banking Corp. in Hong
Kong, we view HSBC Holdings as providing cheap exposure to the turnaround of the
UK operation and Hong Kong's stable economic growth. Anticipated lower bond
trading losses and bad debt provisions should further enhance the company's
earnings growth.
SIAM COMMERCIAL BANK PLC THAILAND
Siam Commercial Bank is one of the largest commercial banks in Thailand. The
banking industry in Thailand is currently enjoying a combination of widening
interest margins, strong credit growth and growing fee-based income. With the
banking industry trading at a substantial discount to the rest of the market, we
believe it is one of the better values in the Thai market.
SWIRE PACIFIC LTD. HONG KONG
Swire is one of the leading Hong Kong conglomerates engaged in property
investment and aviation. One of the largest holders of prime shopping space in
Hong Kong, it owns 52.5% of Cathay Pacific airline.
PUBLIC BANK BERHAD MALAYSIA
Like D&C Bank (discussed below), we expect Public Bank to benefit from strong
loan growth and more aggressive management. It is one of the best capitalized
banks in Malaysia with a loan to deposit ratio of 60%-70%. We consider it well-
positioned to take advantage of the business upswing in Malaysia.
HUTCHISON WHAMPOA HONG KONG
Hutchison is the most diversified conglomerate in Hong Kong with holdings in
container operations, supermarkets, telecommunications and property. As part of
the Cheung Kong group, it benefits from the management of Li Ka-shing,
considered the leading entrepreneur in Hong Kong.
SAMSUNG ELECTRONICS SOUTH KOREA
Samsung is a major beneficiary of the boom in the semiconductor industry that
occurred during 1993-94. Samsung is currently the leading global manufacturer in
DRAM. Its commercial development of a 256K DRAM is even more advanced than its
Japanese competitors'. We have recently started to take some profit in the
stock, however, given that the semiconductor industry is a cyclical business and
--------------
* There is no assurance that the Fund will continue to hold these or any other
securities mentioned in this report.
5
<PAGE>
after such a prolonged bull cycle, we believe the industry may be increasingly
moving towards its peak.
HONG KONG TELECOMMUNICATIONS LTD. HONG KONG
Hong Kong Telecom is Hong Kong's leading operator of domestic phone service and
the sole provider of international calling service in Hong Kong. It has a
respectable long-term record of growth, and we consider it well positioned to
tap the gradual liberalization of the telecommunications sector in China.
KRUNG THAI BANK LTD. THAILAND
Like Siam Commercial Bank, Krung Thai Bank may be a beneficiary of Thailand's
favorable operating environment. In addition, we believe Krung Thai Bank has the
potential to write off some of its loan-loss provisions.
WESTERN MINING CORP. HOLDINGS LTD. AUSTRALIA
Western Mining is a diversified mining house with major nickel, gold, copper,
uranium, alumina and aluminum operations. The dividends from its 40% holding in
Alcoa Australia have formed the core of Western Mining's profits in recent
years. We expect future income to be derived from the planned A$800 million
expansion of its nickel division, which should make the company the world's
third largest nickel producer.
DEVELOPMENT & COMMERCIAL BANK (DCB) MALAYSIA
We consider D&C Bank one of the best-managed banks in Malaysia with exposures
focused on the manufacturing industries and multinationals. DCB's strategic
relationship with Rashid Hussian Securities, one of the largest securities
houses and corporate financiers in Malaysia, creates a useful synergy for
participating in some of the most sought-after corporate deals.
6
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
PORTFOLIO SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
G.T. GLOBAL NEW PACIFIC GROWTH FUND - CLASS A MSCI PACIFIC EX-JAPAN INDEX
<S> <C> <C>
19-Jan-77 9525 10,000
31-Jan-77 9,525 9,994
28-Feb-77 9,630 9,760
31-Mar-77 9,687 9,958
30-Apr-77 9,630 10,052
31-May-77 9,658 10,220
30-Jun-77 9,944 10,295
31-Jul-77 9,573 9,879
31-Aug-77 9,782 9,717
30-Sep-77 10,058 9,602
31-Oct-77 10,363 9,985
30-Nov-77 10,535 9,897
31-Dec-77 10,706 10,343
31-Jan-78 10,735 10,055
28-Feb-78 11,087 9,805
31-Mar-78 12,410 10,533
30-Apr-78 12,247 11,001
31-May-78 12,314 11,465
30-Jun-78 13,895 12,395
31-Jul-78 15,245 13,114
31-Aug-78 15,776 14,619
30-Sep-78 16,441 14,340
31-Oct-78 17,049 14,561
30-Nov-78 15,573 12,369
31-Dec-78 16,190 12,824
31-Jan-79 15,930 13,735
28-Feb-79 15,429 13,693
31-Mar-79 15,208 13,922
30-Apr-79 14,194 13,706
31-May-79 13,817 14,198
30-Jun-79 13,763 13,832
31-Jul-79 13,569 14,578
31-Aug-79 13,914 15,604
30-Sep-79 13,881 17,216
31-Oct-79 12,425 16,841
30-Nov-79 11,778 17,261
31-Dec-79 12,641 19,508
31-Jan-80 12,781 22,324
29-Feb-80 11,994 22,753
31-Mar-80 11,306 18,862
30-Apr-80 12,087 20,660
31-May-80 13,047 22,880
30-Jun-80 13,940 25,335
31-Jul-80 13,717 26,369
31-Aug-80 14,387 27,937
30-Sep-80 15,324 28,480
31-Oct-80 15,994 32,113
30-Nov-80 15,905 31,374
31-Dec-80 17,143 31,505
31-Jan-81 18,036 30,842
28-Feb-81 17,646 29,899
31-Mar-81 18,109 30,525
30-Apr-81 19,026 31,056
31-May-81 19,898 32,411
30-Jun-81 20,838 32,862
31-Jul-81 19,764 29,609
31-Aug-81 19,294 27,990
30-Sep-81 17,001 23,883
31-Oct-81 17,650 23,677
30-Nov-81 18,892 27,091
31-Dec-81 18,903 26,628
31-Jan-82 18,332 25,058
28-Feb-82 16,767 22,313
31-Mar-82 15,741 20,937
30-Apr-82 17,335 23,576
31-May-82 17,605 24,167
30-Jun-82 16,207 21,638
31-Jul-82 15,876 20,322
31-Aug-82 15,104 19,361
30-Sep-82 14,601 18,867
31-Oct-82 14,442 18,085
30-Nov-82 15,766 17,834
31-Dec-82 16,967 19,122
31-Jan-83 16,685 21,059
28-Feb-83 17,114 21,523
31-Mar-83 17,556 20,935
30-Apr-83 18,090 22,918
31-May-83 18,949 22,680
30-Jun-83 19,443 22,805
31-Jul-83 20,250 24,147
31-Aug-83 20,602 24,009
30-Sep-83 20,537 23,116
31-Oct-83 20,654 23,482
30-Nov-83 21,500 24,606
31-Dec-83 23,283 25,664
31-Jan-84 24,194 27,047
29-Feb-84 24,363 26,105
31-Mar-84 25,605 26,258
30-Apr-84 24,940 26,241
31-May-84 21,428 23,046
30-Jun-84 20,683 22,327
31-Jul-84 19,526 22,034
31-Aug-84 21,787 23,814
30-Sep-84 21,907 23,800
31-Oct-84 22,559 23,874
30-Nov-84 22,719 24,329
31-Dec-84 22,586 23,806
31-Jan-85 23,211 25,585
28-Feb-85 22,359 24,333
31-Mar-85 22,491 24,634
30-Apr-85 22,603 25,040
31-May-85 22,813 25,917
30-Jun-85 22,379 25,578
31-Jul-85 22,995 28,221
31-Aug-85 22,925 27,237
30-Sep-85 23,821 28,075
31-Oct-85 25,122 29,263
30-Nov-85 25,234 28,210
31-Dec-85 24,689 27,922
31-Jan-86 25,472 29,489
28-Feb-86 27,110 28,782
31-Mar-86 30,078 29,707
30-Apr-86 31,898 32,328
31-May-86 32,752 32,655
30-Jun-86 35,553 31,319
31-Jul-86 40,874 29,529
31-Aug-86 44,458 31,615
30-Sep-86 43,380 33,557
31-Oct-86 38,283 38,478
30-Nov-86 39,851 38,624
31-Dec-86 41,952 41,441
31-Jan-87 41,882 42,639
28-Feb-87 43,576 48,205
31-Mar-87 46,870 49,784
30-Apr-87 48,192 50,979
31-May-87 50,913 54,583
30-Jun-87 50,676 56,845
31-Jul-87 53,673 62,936
31-Aug-87 54,935 66,816
30-Sep-87 56,079 69,436
31-Oct-87 42,690 39,198
30-Nov-87 39,768 40,871
31-Dec-87 44,356 43,180
31-Jan-88 45,152 42,763
29-Feb-88 46,314 42,584
31-Mar-88 50,169 47,744
30-Apr-88 52,799 50,069
31-May-88 51,943 53,623
30-Jun-88 52,249 54,572
30-Jul-88 53,686 56,785
31-Aug-88 51,331 53,723
30-Sep-88 51,209 52,817
31-Oct-88 52,677 56,302
30-Nov-88 54,054 56,075
31-Dec-88 54,649 56,379
31-Jan-89 58,369 62,282
28-Feb-89 59,995 57,473
31-Mar-89 61,933 58,460
30-Apr-89 64,153 60,418
31-May-89 64,684 57,695
30-Jun-89 63,434 55,343
31-Jul-89 68,811 60,330
31-Aug-89 71,218 62,951
30-Sep-89 75,845 64,710
31-Oct-89 73,094 62,538
30-Nov-89 76,783 62,611
31-Dec-89 80,947 65,390
31-Jan-90 79,663 64,990
28-Feb-90 78,058 64,167
31-Mar-90 76,774 63,341
30-Apr-90 73,950 60,079
31-May-90 80,947 65,777
30-Jun-90 82,744 67,865
31-Jul-90 85,954 71,505
31-Aug-90 77,288 66,052
30-Sep-90 69,777 60,014
31-Oct-90 74,848 59,275
30-Nov-90 72,216 58,752
31-Dec-90 72,075 58,755
31-Jan-91 74,394 62,285
28-Feb-91 80,872 68,234
31-Mar-91 82,645 69,913
30-Apr-91 83,122 72,275
31-May-91 83,872 72,539
28-Jun-91 82,099 72,262
31-Jul-91 84,349 76,475
31-Aug-91 80,122 75,523
30-Sep-91 82,781 76,311
31-Oct-91 84,827 79,169
29-Nov-91 80,394 78,406
31-Dec-91 81,494 80,266
31-Jan-92 82,071 82,100
28-Feb-92 81,422 84,698
31-Mar-92 77,672 84,110
30-Apr-92 79,114 88,101
29-May-92 85,533 94,085
30-Jun-92 82,793 93,143
31-Jul-92 78,249 90,792
31-Aug-92 75,509 85,619
30-Sep-92 74,643 84,236
30-Oct-92 76,662 86,876
30-Nov-92 74,715 85,201
31-Dec-92 75,009 85,897
31-Jan-93 75,082 86,538
26-Feb-93 78,574 93,195
31-Mar-93 81,629 94,782
30-Apr-93 88,104 99,640
28-May-93 90,796 103,455
30-Jun-93 88,032 100,316
30-Jul-93 91,378 103,860
31-Aug-93 95,598 111,708
30-Sep-93 97,199 113,866
29-Oct-93 100,909 132,280
30-Nov-93 101,127 128,331
31-Dec-93 120,468 154,978
31-Jan-94 118,342 150,724
28-Feb-94 113,328 143,388
31-Mar-94 98,745 128,164
29-Apr-94 100,719 134,114
31-May-94 104,289 138,544
30-Jun-94 99,352 132,406
29-Jul-94 104,441 139,383
31-Aug-94 112,037 148,749
30-Sep-94 110,822 144,844
31-Oct-94 111,050 147,178
30-Nov-94 101,555 135,384
30-Dec-94 96,698 133,297
31-Jan-95 86,949 121,795
28-Feb-95 91,424 133,171
31-Mar-95 93,582 134,577
28-Apr-95 94,780 136,361
31-May-95 103,012 145,618
30-Jun-95 101,413 142,866
</TABLE>
THE CHART AT LEFT SHOWS THE PERFORMANCE OF THE G.T. GLOBAL NEW PACIFIC GROWTH
FUND CLASS A SHARES SINCE THE FUND'S INCEPTION VERSUS THE MSCI-PACIFIC EX-JAPAN
INDEX. THIS REPRESENTS A CUMULATIVE RETURN OF 914.13% AND AN AVERAGE ANNUAL
TOTAL RETURN OF 13.37%. 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.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
AVERAGE ANNUAL TOTAL RETURNS+
JUNE 30, 1995
<TABLE>
<CAPTION>
SHARE WITHOUT SALES CHARGE WITH SALES CHARGE++
10-YEAR/ 10-YEAR/
LIFE OF LIFE OF
CLASS 1-YEAR 5-YEAR FUND 1-YEAR 5-YEAR FUND
<S> <C> <C> <C> <C> <C> <C>
CLASS A* 2.07% 4.15% 16.31% -2.77% 3.14% 15.75%
CLASS B** 1.25% N/A 9.16% -3.56% N/A 7.96%
ADV. CLASS*** N/A N/A -1.55% N/A N/A N/A
<FN>
* The Fund began operations on January 19, 1977.
** 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 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% for 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>
GEOGRAPHIC ALLOCATION OF NET ASSETS
AS OF JUNE 30, 1995
<S> <C>
Hong Kong 32.2
Malaysia 21.4
Thailand 13.1
Australia 12.7
Korea 5.1
Singapore 3.9
Philippines 1.7
India 1.6
U.S. (Short Term) & Other 8.3
100.0
SECTOR ALLOCATION OF NET ASSETS
AS OF JUNE 30, 1995
Finance 33.4
Multi-Industry/Miscellaneous 21.8
Services 15.0
Materials/Basic Industry 14.4
Consumer Durables 4.1
Energy 2.7
Capital Goods 1.9
Other & Short Term Investments 6.7
100.0
</TABLE>
ALLOCATIONS WILL CHANGE BASED ON CURRENT MARKET CONDITIONS.
7
<PAGE>
/ /
G.T. GLOBAL
NEW PACIFIC
GROWTH FUND
/ /
FINANCIAL
STATEMENTS
<PAGE>
G.T. GLOBAL NEW PACIFIC 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>
Finance (33.4%)
Siam Commercial Bank PLC -
Foreign.................. THAI 2,525,700 $ 24,156,644 4.5
BANKS-REGIONAL
Public Bank Bhd. -
Foreign.................. MAL 10,700,000 23,924,103 4.4
BANKS-MONEY CENTER
Krung Thai Bank Ltd. -
Foreign.................. THAI 4,506,540 18,263,587 3.4
BANKS-MONEY CENTER
Hang Seng Bank............ HK 2,045,100 15,594,704 2.9
BANKS-MONEY CENTER
Hysan Development Co.,
Ltd...................... HK 4,519,000 10,337,753 1.9
REAL ESTATE
Hopewell Holdings......... HK 11,878,000 10,055,304 1.9
REAL ESTATE
United Overseas Bank Ltd.
- Foreign................ SING 1,020,000 9,637,795 1.8
BANKS-MONEY CENTER
Rashid Hussain Bhd........ MAL 3,000,000 9,600,000 1.8
SECURITIES BROKER
National Australia Bank
Ltd...................... AUSL 953,950 7,542,072 1.4
BANKS-MONEY CENTER
Multi-Purpose Holdings
Bhd...................... MAL 4,267,000 7,527,426 1.4
INVESTMENT MANAGEMENT
Bank of Ayudhya Ltd. -
Foreign.................. THAI 1,512,600 7,417,410 1.4
BANKS-REGIONAL
Sun Hung Kai Properties
Ltd...................... HK 764,000 5,653,006 1.0
REAL ESTATE
Hong Leong Bank Bhd.(CHECK
MARK).................... MAL 1,350,000 4,264,615 0.8
BANKS-REGIONAL
Henderson Investment
Ltd...................... HK 5,000,000 4,103,499 0.8
REAL ESTATE
Wharf (Holdings) Ltd...... HK 1,235,000 4,030,314 0.7
REAL ESTATE
New World Development Co.,
Ltd...................... HK 1,148,000 3,820,583 0.7
REAL ESTATE
Overseas-Chinese Banking
Corp., Ltd. - Foreign.... SING 300,000 3,328,561 0.6
BANKS-MONEY CENTER
Technology Resources
Industries Bhd.(CHECK
MARK).................... MAL 1,000,000 2,871,795 0.5
INVESTMENT MANAGEMENT
City Developments Ltd..... SING 348,200 2,131,074 0.4
REAL ESTATE
Hong Kong Land Holdings
Ltd.(INVERTED
TRIANGLE)................ HK 592,000 1,077,440 0.2
REAL ESTATE INVESTMENT
TRUST
Taiping Consolidated
Bhd.(CHECK MARK)......... MAL 503,000 1,027,668 0.2
REAL ESTATE
PT Bank Internasional
Indonesia - Foreign...... INDO 239,500 739,696 0.1
BANKS-MONEY CENTER
Kay Hian James Capel
Holdings Ltd. -
Foreign.................. SING 484,000 585,512 0.1
SECURITIES BROKER
Hang Lung Development
Co....................... HK 365,000 580,241 0.1
REAL ESTATE
Malaysian Resources Corp.,
Bhd...................... MAL 324,000 571,569 0.1
REAL ESTATE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-1
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Malayan Banking Bhd....... MAL 70,500 $ 558,215 0.1
BANKS-MONEY CENTER
Amoy Properties Ltd....... HK 613,500 539,180 0.1
REAL ESTATE
Cheung Kong (Holdings)
Ltd...................... HK 60,000 297,003 0.1
REAL ESTATE
Bangkok Land Co., Ltd. -
Foreign.................. THAI 19,500 32,994 --
REAL ESTATE
------------
180,269,763
------------
Multi-Industry/Miscellaneous
(21.8%)
HSBC Holdings PLC......... HK 2,925,600 37,528,052 6.9
CONGLOMERATE
Swire Pacific Ltd. "A".... HK 3,150,000 24,020,007 4.4
MULTI-INDUSTRY
Hutchison Whampoa......... HK 4,710,000 22,766,857 4.2
CONGLOMERATE
DCB Holdings Bhd.(CHECK
MARK).................... MAL 5,595,000 16,412,000 3.0
CONGLOMERATE
Arab Malaysian Corp.,
Bhd...................... MAL 2,812,000 10,036,677 1.8
CONGLOMERATE
Renong Bhd................ MAL 2,900,000 5,401,436 1.0
MULTI-INDUSTRY
Jardine Matheson Holding
Ltd.(INVERTED
TRIANGLE)................ HK 361,200 2,654,820 0.5
CONGLOMERATE
Java Fund(CHECK MARK)..... INDO 30,000 252,000 --
COUNTRY FUNDS
JG Summit Holdings, Inc.
"B"...................... PHIL 748,000 217,152 --
CONGLOMERATE
Indonesian Capital
Fund(CHECK MARK)......... INDO 5,000 53,750 --
COUNTRY FUNDS
Korea Fund, Inc.(INVERTED
TRIANGLE) (CHECK MARK)... KOR 895 17,564 --
COUNTRY FUNDS
------------
119,360,315
------------
Services (15.0%)
Hong Kong
Telecommunications
Ltd...................... HK 11,018,200 21,787,763 4.0
TELEPHONE NETWORKS
News Corp., Ltd........... AUSL 2,055,100 11,484,597 2.1
BROADCASTING &
PUBLISHING
Philippine Long Distance
Telephone Co. -
ADR(INVERTED TRIANGLE)... PHIL 125,000 8,968,750 1.7
TELEPHONE - LONG
DISTANCE
Telecom Corporation of New
Zealand Ltd.............. NZ 2,299,000 8,610,487 1.6
TELEPHONE NETWORKS
Resorts World Bhd......... MAL 1,390,000 8,154,668 1.5
LEISURE & TOURISM
Malaysian Airlines System
Bhd.(CHECK MARK)......... MAL 1,726,000 5,841,846 1.1
TRANSPORTATION-AIRLINES
Singapore Press Holdings
Ltd. - Foreign........... SING 300,000 4,488,189 0.8
BROADCASTING &
PUBLISHING
Advanced Info. Service -
Foreign.................. THAI 222,900 3,306,237 0.6
WIRELESS COMMUNICATIONS
Hong Kong & Shanghai
Hotels................... HK 2,000,000 2,468,561 0.5
LEISURE & TOURISM
Faber Group Bhd.(CHECK
MARK).................... MAL 1,350,000 1,301,538 0.2
LEISURE & TOURISM
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Telecom Asia Corp. -
Foreign(CHECK MARK)........ THAI 346,000 $ 1,283,040 0.2
TELEPHONE NETWORKS
Singapore Airlines Ltd. -
Foreign.................. SING 105,000 969,578 0.2
TRANSPORTATION -
AIRLINES
Dusit Thani Corp., Ltd. -
Foreign(CHECK MARK)...... THAI 913,000 952,776 0.2
LEISURE & TOURISM
Matichon Newspaper Group -
Foreign.................. THAI 154,800 796,742 0.1
BROADCASTING &
PUBLISHING
Malaysian Helicopter
Services Bhd............. MAL 400,000 685,949 0.1
TRANSPORTATION -
AIRLINES
International Cosmetics
Co., Ltd. - Foreign...... THAI 30,030 425,957 0.1
WHOLESALE &
INTERNATIONAL TRADE
Shun Tak Holdings Ltd..... HK 160,000 127,176 --
TRANSPORTATION -
SHIPPING
------------
81,653,854
------------
Materials/Basic Industries
(14.4%)
Western Mining Corporation
Holdings Ltd............. AUSL 3,302,381 18,196,554 3.4
METALS - NON-FERROUS
Broken Hill Proprietary
Co., Ltd................. AUSL 1,214,488 14,955,515 2.8
MISC. MATERIALS &
COMPONENTS
Siam City Cement Co., Ltd.
- Foreign................ THAI 500,000 7,943,262 1.5
CEMENT
Amcor Ltd................. AUSL 1,072,085 7,912,010 1.5
PAPER/PACKAGING
Yizheng Chemical Fibre
Co., Ltd................. CHNA 17,000,000 5,932,302 1.1
CHEMICALS
Pohang Iron & Steel Co.,
Ltd.(CHECK MARK)......... KOR 50,500 5,161,830 1.0
METALS - STEEL
Hume Industries Bhd. -
Local.................... MAL 800,000 4,365,128 0.8
BUILDING MATERIALS &
COMPONENTS
Malaysian Pacific
Industries Bhd........... MAL 1,461,000 3,656,246 0.7
PAPER/PACKAGING
PT Indocement Tunggal
Prakarsa - Foreign....... INDO 619,000 2,433,176 0.4
CEMENT
Siam Cement Co., Ltd. -
Foreign.................. THAI 33,500 2,139,656 0.4
CEMENT
Hardie (James) Industries
Ltd...................... AUSL 1,080,902 1,706,081 0.3
BUILDING MATERIALS &
COMPONENTS
PT Barito Pacific Timber -
Foreign.................. INDO 1,155,000 1,660,377 0.3
FOREST PRODUCTS
Siam Pulp & Paper Co.,
Ltd. - Foreign........... THAI 194,284 657,455 0.1
PAPER/PACKAGING
PT Indah Kiat Pulp & Paper
Corp. - Foreign.......... INDO 289,000 428,437 0.1
PAPER/PACKAGING
Mitani Sangyo............. JPN 26,000 223,366 --
CHEMICALS
------------
77,371,395
------------
Consumer Durables (4.1%)
Samsung Electronics
Co. :.................... KOR -- -- 4.0
CONSUMER ELECTRONICS
Common(CHECK MARK)...... -- 86,900 15,451,054 --
New..................... -- 25,509 4,399,502 --
Preferred(CHECK MARK)... -- 18,850 1,625,943 --
Preffered New........... -- 8,677 725,998 --
PT Astra International -
Foreign.................. INDO 261,600 464,205 0.1
AUTO PARTS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables
(Continued)
Daewoo Electronics........ KOR 1 -- --
CONSUMER ELECTRONICS
------------
$ 22,666,702
------------
Energy (2.7%)
Hong Kong Electric
Holdings Ltd............. HK 1,789,000 6,081,023 1.1
ELECTRICAL & GAS
UTILITIES
Oil Search Ltd............ AUSL 5,487,000 4,096,232 0.8
OIL
Electricity Generating
Public Co., Ltd. -
Foreign(CHECK MARK)...... THAI 1,108,500 3,346,839 0.6
ELECTRICAL & GAS
UTILITIES
Yukong Ltd. - New(CHECK
MARK).................... KOR 17,929 756,200 0.1
OIL
Tenaga Nasional Bhd....... MAL 72,000 293,908 0.1
ELECTRICAL & GAS
UTILITIES
------------
14,574,202
------------
Capital Goods (1.9%)
United Engineers Ltd...... MAL 1,000,000 6,358,974 1.2
CONSTRUCTION
E.R.G. Ltd................ AUSL 1,983,200 2,030,436 0.4
ELECTRICAL
PLANT/EQUIPMENT
Bandar Raya Developments
Bhd.(CHECK MARK)......... MAL 394,000 856,697 0.2
CONSTRUCTION
United Engineers Ltd.,
Convertible Unsecured
Loan Stock,
4% till 5/22/99.......... MAL 653,500 364,619 0.1
CONSTRUCTION
------------
9,610,726
------------
Consumer Non-Durables (0.9%)
Reliance Industries Ltd. -
144A GDR(INVERTED
TRIANGLE) (CHECK MARK)
(DIAMOND)................ IND 210,000 3,754,800 0.7
TEXTILES & APPAREL
PT Unilever Indonesia -
Foreign.................. INDO 70,414 1,044,664 0.2
HOUSEHOLD PRODUCTS
------------
4,799,464
------------ -----
Total Equity Investments
(cost $448,868,395)........ 510,306,421 94.2
------------ -----
------------ -----
<CAPTION>
Principal Market % of Net
Fixed Income Investments Currency Amount Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (0.9%)
India (0.9%)
Reliance Industries
Ltd., Convertible Bond,
3.5% due 11/03/99...... USD 4,510,000 4,938,450 0.9
------------ -----
------------ -----
(cost $6,590,600)
<CAPTION>
No. of Market % of Net
Warrants (0.5%) Country Warrants Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Development & Commercial
Bank Warrants, expire
12/28/99(CHECK MARK) ..... MAL 1,398,750 1,606,769 0.3
BANKS-CONGLOMERATES
SG Warburg OTC - China
Light & Power Co.
Warrants, expire
1/2/96(CHECK MARK)....... HK 19,470,000 1,233,027 0.2
WARRANTS
Henderson Investment
Warrants, expire
3/31/96(CHECK MARK)...... HK 500,000 35,542 --
INVESTMENT MANAGEMENT
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
No. of Market % of Net
Warrants (0.5%) Country Warrants Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Hang Lung Development Co.
Warrants, expire
10/31/97(CHECK MARK)..... HK 36,500 $ 6,274 --
REAL ESTATE
------------ -----
Total Warrants (cost
$3,260,547)................ 2,881,612 0.5
------------ -----
------------ -----
<CAPTION>
No. of Market % of Net
Rights (0.0%) Country Rights Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
<CAPTION>
Dusit Thani Corp., Ltd.
Rights, expire
7/28/95(CHECK MARK)....... THAI 304,333 -- --
LEISURE & TOURISM
Malaysian Helicopter
Rights, expire
12/31/95(CHECK MARK)..... MAL 80,000 -- --
TRANSPORTATION-AIRLINES
------------ -----
Total Rights (cost $0)...... -- --
------------ -----
------------ -----
<CAPTION>
Market % of Net
Short-Term Investments Value Assets *
---------------------------- ------------ -------------
<S> <C> <C>
Repurchase Agreements (1.4%)
United States (1.4%)
Dated June 30, 1995 with
State Street Bank and
Trust Company, due July
3, 1995, for an
effective yield of
6.10% collateralized by
$5,820,000 United
States Treasury Bond,
9.875% due 11/15/15
(market value of
collateral is
$7,921,309 including
accrued interest).
(cost $7,763,315)...... 7,763,315 1.4
------------ -----
Total Investments (cost
$466,482,857)(DELTA)....... 525,889,798 97.0
Other Assets and
Liabilities................ 16,255,884 3.0
------------ -----
Net Assets.................. $542,145,682 100.0
------------ -----
------------ -----
<FN>
-----------------
* Percentages indicated are based on net assets of $542,145,682.
(CHECK Non-income producing security.
MARK)
(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.
(INVERTED U.S. currency denominated.
TRIANGLE)
(DELTA) For Federal income tax purposes, cost is $467,227,394 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 83,459,055
Unrealized depreciation: (24,796,651)
-------------
Net unrealized appreciation: $ 58,662,404
-------------
-------------
</TABLE>
Abbreviations:
ADR - American Depository Receipt
GDR - Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F-5
<PAGE>
G.T. GLOBAL NEW PACIFIC 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 & Short-Term
Country (Country Code/Currency Code) Equity Warrants & Other Total
-------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD).................. 12.7 12.7
China (CHNA/RMB)...................... 1.1 1.1
Hong Kong (HK/HKD).................... 32.0 0.2 32.2
India (IND/INR)....................... 0.7 0.9 1.6
Indonesia (INDO/IDR).................. 1.2 1.2
Japan (JPN/JPY)....................... 0.0
Korea (KOR/KRW)....................... 5.1 5.1
Malaysia (MAL/MYR).................... 21.0 0.4 21.4
New Zealand (NZ/NZD).................. 1.6 1.6
Philippines (PHIL/PHP)................ 1.7 1.7
Singapore (SING/SGD).................. 3.9 3.9
Thailand (THAI/THB)................... 13.1 13.1
United States (US/USD)................ 4.4 4.4
------ --- --- -----
Total................................. 94.1 1.5 4.4 100.0
------ --- --- -----
------ --- --- -----
<FN>
----------------
* Percentages indicated are based on net assets of $542,145,682.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-6
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $466,482,857) (Note 1)............................................. $ 525,889,798
U.S. currency..................................................................................... $ 37
Foreign currencies (cost $561,122)................................................................ 561,140 561,177
---------
Receivable for Fund shares sold.............................................................................. 17,656,335
Dividends and dividend withholding tax reclaims receivable................................................... 1,340,701
Interest and interest withholding tax reclaims receivable.................................................... 39,463
Cash held as collateral for securities loaned (Note 1)....................................................... 25,737,865
-------------
Total assets................................................................................................. 571,225,339
-------------
Liabilities:
Payable for Fund shares repurchased.......................................................................... 2,250,671
Payable for investment management and administration fees (Note 2)........................................... 469,652
Payable for service and distribution expenses (Note 2)....................................................... 239,164
Payable for transfer agent fees (Note 2)..................................................................... 150,358
Payable for custodian and fund accounting fees (Note 1)...................................................... 70,667
Payable for printing and postage expenses.................................................................... 58,399
Payable for professional fees................................................................................ 48,469
Payable for registration fees................................................................................ 31,331
Payable for Trustees' fees and expenses (Note 2)............................................................. 15,824
Accrued expenses............................................................................................. 7,257
Collateral for securities loaned (Note 1).................................................................... 25,737,865
-------------
Total liabilities............................................................................................ 29,079,657
-------------
Net assets..................................................................................................... $ 542,145,682
-------------
-------------
Class A:
Net asset value and redemption price per share
($415,202,654 DIVIDED BY 32,729,242 shares outstanding)...................................................... $ 12.69
-------------
-------------
Maximum offering price per share
(100/95.25 of $12.69)*........................................................................................ $ 13.32
-------------
-------------
Class B:+
Net asset value and offering price per share
($126,031,597 DIVIDED BY 10,089,019 shares outstanding)...................................................... $ 12.49
-------------
-------------
Advisor Class (Notes 1 & 4):
Net asset value, offering price per share, and redemption price per share
($911,431 DIVIDED BY 71,834 shares outstanding).............................................................. $ 12.69
-------------
-------------
Net assets consist of:
Paid in capital (Note 4)..................................................................................... $ 486,467,307
Undistributed net investment income.......................................................................... 3,138,823
Accumulated net realized loss on investments and foreign currency transactions............................... (6,861,010)
Net unrealized depreciation on translation of assets and liabilities in foreign currencies................... (6,379)
Net unrealized appreciation of investments................................................................... 59,406,941
-------------
Total -- representing net assets applicable to capital shares outstanding.................................... $ 542,145,682
-------------
-------------
<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-7
<PAGE>
G.T. GLOBAL NEW PACIFIC 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 $479,025)............................................. $ 6,678,813
Interest income....................................................................................... 2,018,213
-----------
Total investment income............................................................................... 8,697,026
-----------
Expenses:
Investment management and administration fees (Note 2)................................................ 2,598,096
Service and distribution expenses (Note 2):
Class A............................................................................... $ 725,408
Class B............................................................................... 596,941 1,322,349
------------
Transfer agent fees (Note 2).......................................................................... 1,020,170
Custodian and fund accounting fees (Note 1)........................................................... 450,241
Printing and postage expenses......................................................................... 126,420
Registration fees..................................................................................... 74,250
Professional fees..................................................................................... 40,127
Trustees' fees and expenses (Note 2).................................................................. 1,979
-----------
Total expenses before expense reductions.............................................................. 5,633,632
Expense reductions (Note 1)......................................................................... (75,429)
-----------
Total net expenses.................................................................................... 5,558,203
-----------
Net investment income................................................................................... 3,138,823
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies (Note 1):
Net realized loss on investments........................................................ (12,082,538)
Net realized gain on foreign currency transactions...................................... 7,519,416
------------
Net realized loss during the period................................................................. (4,563,122)
Net change in unrealized depreciation on translation of assets and liabilities in
foreign currencies..................................................................... (3,764)
Net change in unrealized appreciation of investments.................................... 38,767,730
------------
Net unrealized appreciation during the period....................................................... 38,763,966
-----------
Net realized and unrealized gain on investments and foreign currencies.................................. 34,200,844
-----------
Net increase in net assets resulting from operations.................................................... $37,339,667
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-8
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
------------------- ----------------
<S> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income (loss).............. $ 3,138,823 $ (28,620)
Net realized gain (loss) on investments,
and foreign currency transactions........ (4,563,122) 12,214,388
Net change in unrealized depreciation on
translation of assets and liabilities in
foreign currencies....................... (3,764) 25,326
Net change in unrealized appreciation of
investments.............................. 38,767,730 (129,412,169)
------------------- ----------------
Net increase (decrease) in net assets
resulting from operations................ 37,339,667 (117,201,075)
------------------- ----------------
Class A:
Distributions to shareholders from: (Note 1)
Net investment income..................... -- (202,019)
Net realized gain on investments.......... -- (18,250,328)
In excess of net realized gain on
investments.............................. -- (2,341,796)
Class B:
Distributions to shareholders from: (Note 1)
Net realized gain on investments.......... -- (5,228,855)
In excess of net realized gain on
investments.............................. -- (670,942)
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested............................... 1,566,050,005 1,372,467,962
Decrease from capital shares
repurchased.............................. (1,586,094,951) (1,274,742,064)
------------------- ----------------
Net increase (decrease) from capital share
transactions............................. (20,044,946) 97,725,898
------------------- ----------------
Total increase (decrease) in net assets..... 17,294,721 (46,169,117)
Net assets:
Beginning of period....................... 524,850,961 571,020,078
------------------- ----------------
End of period............................. $ 542,145,682 $ 524,850,961
------------------- ----------------
------------------- ----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-9
<PAGE>
G.T. GLOBAL NEW PACIFIC 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 1992 1991 1990
---------- -------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.10 $ 15.86 $ 10.31 $ 11.30 $ 10.57 $ 12.61
---------- -------- ------- -------- ------- -------
Income from investment operations:
Net investment income (loss).......... 0.08 0.02 (0.03) 0.07 0.11 0.13
Net realized and unrealized gain
(loss) on investments................ 0.51 (3.15) 6.23 (0.97) 1.25 (1.51)
---------- -------- ------- -------- ------- -------
Net increase (decrease) from
investment operations................ 0.59 (3.13) 6.20 (0.90) 1.36 (1.38)
---------- -------- ------- -------- ------- -------
Distributions to shareholders:
From net investment income............ -- (0.01) -- (0.06) (0.08) (0.12)
From net realized gain on
investments.......................... -- (0.55) (0.65) (0.03) (0.55) (0.54)
In excess of net
realized gain on investments......... -- (0.07) -- -- -- --
---------- -------- ------- -------- ------- -------
Total
distributions...................... -- (0.63) (0.65) (0.09) (0.63) (0.66)
---------- -------- ------- -------- ------- -------
Net asset value, end of period.......... $ 12.69 $ 12.10 $ 15.86 $ 10.31 $ 11.30 $ 10.57
---------- -------- ------- -------- ------- -------
---------- -------- ------- -------- ------- -------
Total investment
return (c)............................. 4.88%(a) (19.73)% 60.6% (8.0)% 13.1% (11.0)%
---------- -------- ------- -------- ------- -------
---------- -------- ------- -------- ------- -------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $415,203 $404,680 $498,898 $281,418 $333,800 $234,793
Ratio of net investment income to
average net assets..................... 1.34%(b) 0.11% (0.3)% 0.6% 1.0% 1.1%
Ratio of expenses to average net assets:
With expense reductions (Note 1)...... 1.95%(b) 1.81% 1.9% 2.0% 2.0% 2.1%
Without expense reductions............ 1.98%(b) --%* --%* --%* --%* --%*
Portfolio turnover
rate++++............................... 69%(b) 87% 117% 72% 85% 75%
<CAPTION>
ADVISOR
CLASS B++ CLASS+++
------------------------------------- -----------
JUNE 1,
SIX MONTHS YEAR APRIL 1, 1995 TO
ENDED JUNE ENDED 1993 TO JUNE 30,
30, 1995 DECEMBER DECEMBER 1995
(UNAUDITED) 31, 1994 31, 1993 (UNAUDITED)
---------- -------- -------- -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.96 $15.79 $11.27 $12.89
---------- -------- -------- -----------
Income from investment operations:
Net investment income (loss).......... 0.04 (0.06 ) (0.10 ) 0.01
Net realized and unrealized gain
(loss) on investments................ 0.49 (3.15 ) 5.27 (0.21)
---------- -------- -------- -----------
Net increase (decrease) from
investment operations................ 0.53 (3.21 ) 5.17 (0.20)
---------- -------- -------- -----------
Distributions to shareholders:
From net investment income............ -- -- -- --
From net realized gain on
investments.......................... -- (0.55 ) (0.65 ) --
In excess of net
realized gain on investments......... -- (0.07 ) -- --
---------- -------- -------- -----------
Total
distributions...................... -- (0.62 ) (0.65 ) --
---------- -------- -------- -----------
Net asset value, end of period.......... $ 12.49 $11.96 $15.79 $12.69
---------- -------- -------- -----------
---------- -------- -------- -----------
Total investment
return (c)............................. 4.43%(a) (20.30 )% 46.3 %(a) (1.55)%(a)
---------- -------- -------- -----------
---------- -------- -------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $126,032 $120,171 $72,122 $ 911
Ratio of net investment income to
average net assets..................... 0.69%(b) (0.54 )% (0.9 )%(b) 1.69%(b)
Ratio of expenses to average net assets:
With expense reductions (Note 1)...... 2.60%(b) 2.46 % 2.5 %(b) 1.60%(b)
Without expense reductions............ 2.63%(b) -- %* -- %* 1.63%(b)
Portfolio turnover
rate++++............................... 69%(b) 87 % 117 % 69%(b)
<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) Not annualized.
(b) Annualized.
(c) 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-10
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global New Pacific 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 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, 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 securities are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for securities 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.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Company's Board of Trustees.
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
F-11
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
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 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. Capital is responsible for determining that the value of
these underlying securities remains 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 and bond markets 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
F-12
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
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 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 and bond markets 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 $23,754,057
were on loan to brokers. The loans were secured by cash collateral of
$25,737,865, 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 $75,429 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 on 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
F-13
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
distributor. The Fund offers Class A, Class B, and Advisor Class shares for
purchase.
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 $70,473
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 $31,834 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. For the period ended June 30, 1995, G.T. Global collected CDSCs in
the amount of $333,715. 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%, 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 $160,605,560 and $167,042,958, respectively. There were no purchases
or sales of U.S. government obligations during the period.
F-14
<PAGE>
G.T. GLOBAL NEW PACIFIC 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
----------------------------- ----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
------------ --------------- ----------- ---------------
<S> <C> <C> <C> <C>
Shares sold........................................................... 100,275,515 $ 1,188,953,458 75,474,666 $ 1,050,741,703
Shares issued in connection with reinvestment of distributions........ -- -- 1,507,455 18,168,232
------------ --------------- ----------- ---------------
100,275,515 1,188,953,458 76,982,121 1,068,909,935
Shares repurchased.................................................... (100,985,090) (1,207,566,027) (75,002,452) (1,047,474,403)
------------ --------------- ----------- ---------------
Net increase (decrease)............................................... (709,575) $ (18,612,569) 1,979,669 $ 21,435,532
------------ --------------- ----------- ---------------
------------ --------------- ----------- ---------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 (UNAUDITED) DECEMBER 31, 1994
----------------------------- ----------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
------------ --------------- ----------- ---------------
<S> <C> <C> <C> <C>
Shares sold........................................................... 32,069,756 $ 376,154,589 21,680,848 $ 298,469,013
Shares issued in connection with reinvestment of distributions........ -- -- 427,074 5,089,014
------------ --------------- ----------- ---------------
32,069,756 376,154,589 22,107,922 303,558,027
Shares repurchased.................................................... (32,028,389) (378,522,872) (16,628,905) (227,267,661)
------------ --------------- ----------- ---------------
Net increase (decrease)............................................... 41,367 $ (2,368,283) 5,479,017 $ 76,290,366
------------ --------------- ----------- ---------------
------------ --------------- ----------- ---------------
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT OF SALE OF
SHARES) TO JUNE 30, 1995
(UNAUDITED)
----------------------------
ADVISOR CLASS SHARES AMOUNT
----------- ---------------
<S> <C> <C>
Shares sold............................................................ 72,311 $ 941,958
Shares repurchased..................................................... (477) (6,052)
----------- ---------------
Net increase........................................................... 71,834 $ 935,906
----------- ---------------
----------- ---------------
</TABLE>
F-15
<PAGE>
G.T. GLOBAL NEW PACIFIC GROWTH FUND
NOTES
--------------------------------------------------------------------------------
<PAGE>
G.T. GLOBAL NEW PACIFIC 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
