<PAGE>
G.T. GROUP
[LOGO]
TWENTY-FIVE
YEARS OF
PROVIDING
ACCESS TO
GLOBAL MARKETS
/ /
G.T. GLOBAL
WORLDWIDE
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 Worldwide Growth Fund seeks long-term growth of capital by
investing in equity securities of companies in markets around the world,
including Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile,
Denmark, Finland, France, Germany, Greece, Hong Kong, Indonesia, Ireland, Italy,
Japan, Luxembourg, Malaysia, Mexico, the Netherlands, Norway, New Zealand, the
Philippines, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland,
Taiwan, Thailand, Turkey, the UK, the U.S., and Venezuela.
PERFORMANCE REVIEW
The Fund's total return for the six months ending June 30, 1995, for Class A
shares was 1.74% (-3.09% including the effect of the maximum 4.75% sales
charge); total return for Class B shares was 1.37% (-3.63% including the effect
of the maximum 5% contingent deferred sales charge). In comparison the Morgan
Stanley Capital International (MSCI) World Index(1) returned 9.42% for the
period. For additional performance information, please see page 7.
Overall, the Fund's emerging market exposure did not help 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.
We are encouraged by the Fund's second quarter performance relative to the MSCI
Index when the Fund recovered 9.27% compared with a 4.4% gain in the index.
------------------
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,575 securities listed on major world 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 began to be apparent in the
economy from March 1995 onward. In March, the dollar slumped on the foreign
exchanges, not, we believe, 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. Retail sales, after growing robustly in 1994, have been
flat in the first half of 1995, the rate of growth of industrial production has
slowed and inventories have been rising.
Similar trends became apparent elsewhere in the world during the first six
months of the year. Consumption remained weak in all the major European
countries, and in Japan the slowdown was so pronounced it sparked fears that the
Japanese economy was slipping back into recession. This generalized slowdown
reassured markets that inflationary pressures were well contained, so bond
markets everywhere rallied, following the lead of the U.S. As the likelihood of
further increases in short-term interest rates diminished, most stock markets
also recovered.
Thus, by mid-year, most stock markets had recouped the losses of January and
February and the U.S., in particular, was rising to new highs. Only Japan proved
inconsolable, with lower interest rates confirming the economy had moved 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 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 shared by investors at large. In recent months,
however, we have been gratified to see that our outlook is now widely accepted.
Over the past six months the most significant change to the Fund was a near
doubling of the U.S. equity weighting, to over 40%, by reducing our cash and
bond positions. Excellent corporate profits, in conjunction with declining
interest rates, contributed to a strong performance from U.S. equities. At the
end of June, more than 8% of the Fund was invested in emerging market countries,
of which over half was invested in Thailand. In Europe, attractive stocks are
tending to drive country allocation. The Netherlands, for example, appears to
have a disproportionate share of high-quality growth companies at attractive
valuations.
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, as well as a continuing healthy U.S. stock market. This, we believe,
will benefit Fund investors.
CHRISTIAN WIGNALL
CHIEF INVESTMENT OFFICER
GLOBAL EQUITIES
SAN FRANCISCO
JULY 24, 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 WORLDWIDE GROWTH FUND
3
<PAGE>
KEY PORTFOLIO HOLDINGS*
COMPUSA U.S.
This computer superstore retailer has benefited from the boom in demand for
computers for the home, small businesses and schools. It operates a chain of
superstores in major metropolitan areas and offers discounted prices on hardware
and software. The new management team brought in two years ago has cut costs;
industry analysts expect the August launch of Windows 95 to further enhance
sales.
CHARLES SCHWAB CORP. U.S.
Charles Schwab is one of the largest discount stock brokerage companies in the
United States. The company originally specialized in providing security trade
execution for retail investors at very low commission prices. In recent years,
Schwab has been expanding its service offerings to include mutual fund sales,
IRA management, international brokerage and financial advisory services. Despite
this expansion, Schwab's revenues and profits are closely tied to the rise and
fall of turnover on the major U.S. securities exchanges, as well as continued
penetration of the retail brokerage market.
TAKEDA CHEMICAL INDUSTRIES JAPAN
Takeda Chemical is a leading pharmaceutical manufacturer best noted for its
vitamin tablet Alinamin. A top antibiotics producer since 1965, Takeda manages
overseas manufacturing operations in both the U.S. and Asia. We consider its
Asian manufacturing center, Central Research Lab, as setting the standard in
pharmaceutical production in Asia.
LEHMAN BROTHERS HOLDINGS INC. U.S.
Lehman Brothers is a major global investment bank with a heavy focus on fixed
income markets around the world. The company was spun off by American Express in
May 1994, and today management owns a significant percentage of the stock.
Lehman's business suffered during 1994 as a result of the bond market
correction; however, with slower economic growth, the macroeconomic environment
appears to have a good chance of improving. Meanwhile, the management team has
been aggressively cutting costs.
------------------
* There can be no assurance that the Fund will continue to hold these
securities.
4
<PAGE>
DAINI DENDEN INC. (DDI) JAPAN
We believe DDI to be a major beneficiary of deregulation in the 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, DDI should see an immediate pickup in demand, and we
expect 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, which we
expect to show respectable growth when the Japanese economy recovers and the
Japanese gradually increase their spending on consumer items.
KYOCERA CORP. JAPAN
Kyocera is a dominant player in the world's market for ceramic
integrated-circuit packaging. Its divisions are broken down into semiconductor
parts, electronic components and optical precision equipment. The company counts
audio, personal computers and communication equipment among its consumer goods,
with production facilities in the U.S., Mexico, Brazil, France, the United
Kingdom, Singapore and Hong Kong.
CANON INC. JAPAN
Canon is Japan's leading manufacturer of cameras and related equipment such as
camcorders, microcomputers and various types of semiconductors. The company is a
leader in Japanese sales of office automation equipment, including copiers,
laser printers and bubble jet printers. Overseas buyers make up roughly 70% of
Canon's overall sales, with the U.S. and Mexico particularly large export
markets.
SOLA INTERNATIONAL INC. U.S.
Sola is one of the two largest manufacturers of plastic lenses for eyeglasses in
the world. While the market for eyeglasses is only growing at around 3%
annually, plastic continues to take market share away from glass due to weight
and flexibility considerations. Sola is also benefiting from a change in its mix
of business from plain lenses to higher-margin bifocals, coatings and special
lenses. In addition, Sola management is in the process of restructuring its
operations, which has already reduced costs significantly and we believe should
help to further reduce costs over the next few years.
5
<PAGE>
ITT CORP U.S.
ITT is a conglomerate with interests in insurance, hotels, manufacturing and
casinos. Management has been aggressively selling peripheral and underperforming
assets, and restructuring its businesses to improve margins.
AOYAMA TRADING CO. LTD. JAPAN
Aoyama Trading is the largest suburban discount chain store in Japan,
specializing in men's apparel, particularly discount suits. The company is
developing a casual wear line to complement its sales of clothing.
6
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
G.T. GLOBAL WORLDWIDE GROWTH FUND - CLASS A MSCI WORLD INDEX
<S> <C> <C>
09-Jun-87 9525 10,000
30-Jun-87 9,887 9,996
31-Jul-87 10,449 10,197
31-Aug-87 10,897 10,802
30-Sep-87 11,059 10,616
31-Oct-87 7,858 8,815
30-Nov-87 7,763 8,602
31-Dec-87 8,420 8,977
31-Jan-88 8,525 9,197
29-Feb-88 9,058 9,733
31-Mar-88 9,087 10,029
30-Apr-88 9,458 10,157
31-May-88 9,315 9,956
30-Jun-88 9,401 9,944
30-Jul-88 9,439 10,133
31-Aug-88 8,944 9,578
30-Sep-88 9,011 9,986
31-Oct-88 9,392 10,652
30-Nov-88 9,611 11,025
31-Dec-88 9,794 11,126
31-Jan-89 10,361 11,531
28-Feb-89 10,419 11,460
31-Mar-89 10,717 11,389
30-Apr-89 11,179 11,653
31-May-89 11,304 11,370
30-Jun-89 11,208 11,243
31-Jul-89 12,045 12,516
31-Aug-89 12,266 12,215
30-Sep-89 12,564 12,562
31-Oct-89 12,045 12,145
30-Nov-89 12,516 12,631
31-Dec-89 13,475 13,040
31-Jan-90 13,099 12,433
28-Feb-90 12,862 11,902
31-Mar-90 12,971 11,185
30-Apr-90 12,645 11,026
31-May-90 13,722 12,189
30-Jun-90 13,841 12,104
31-Jul-90 14,246 12,216
31-Aug-90 12,625 11,075
30-Sep-90 11,458 9,909
31-Oct-90 11,864 10,836
30-Nov-90 11,834 10,660
31-Dec-90 11,786 10,886
31-Jan-91 12,135 11,286
28-Feb-91 12,972 12,333
31-Mar-91 13,231 11,971
30-Apr-91 13,231 12,067
31-May-91 13,769 12,342
28-Jun-91 13,141 11,582
31-Jul-91 13,888 12,131
31-Aug-91 13,958 12,095
30-Sep-91 13,998 12,414
31-Oct-91 14,088 12,617
29-Nov-91 13,420 12,070
31-Dec-91 14,174 12,950
31-Jan-92 14,224 12,713
28-Feb-92 14,617 12,496
31-Mar-92 14,305 11,909
30-Apr-92 14,576 12,077
29-May-92 15,030 12,560
30-Jun-92 14,566 12,141
31-Jul-92 14,415 12,175
31-Aug-92 14,133 12,473
30-Sep-92 13,720 12,361
30-Oct-92 14,033 12,028
30-Nov-92 14,274 12,246
31-Dec-92 14,637 12,347
31-Jan-93 14,971 12,391
26-Feb-93 15,032 12,686
31-Mar-93 15,790 13,424
30-Apr-93 15,881 14,049
28-May-93 16,488 14,375
30-Jun-93 16,306 14,257
30-Jul-93 16,721 14,553
31-Aug-93 17,672 15,222
30-Sep-93 17,621 14,943
29-Oct-93 18,086 15,357
30-Nov-93 17,237 14,491
31-Dec-93 18,672 15,203
31-Jan-94 19,602 16,208
28-Feb-94 18,896 16,001
31-Mar-94 17,774 15,314
29-Apr-94 18,116 15,790
31-May-94 18,020 15,833
30-Jun-94 17,667 15,792
29-Jul-94 18,127 16,095
31-Aug-94 19,024 16,582
30-Sep-94 18,565 16,150
31-Oct-94 18,629 16,612
30-Nov-94 17,870 15,894
30-Dec-94 17,430 16,051
31-Jan-95 16,285 15,813
28-Feb-95 16,117 16,047
31-Mar-95 16,229 16,824
28-Apr-95 16,958 17,413
31-May-95 17,127 17,566
30-Jun-95 17,733 17,564
</TABLE>
THE CHART AT LEFT SHOWS THE PERFORMANCE OF THE G.T. GLOBAL WORLDWIDE GROWTH FUND
CLASS A SHARES SINCE THE FUND'S INCEPTION VERSUS THE MSCI WORLD INDEX. THIS
REPRESENTS A CUMULATIVE RETURN OF 77.33% AND AN AVERAGE ANNUAL TOTAL RETURN OF
7.36%. THE CHART ASSUMES A HYPOTHETICAL $10,000 INITAL 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++
LIFE OF LIFE OF
CLASS 1-YEAR 5-YEAR FUND 1-YEAR 5-YEAR FUND
<S> <C> <C> <C> <C> <C> <C>
CLASS A* 0.37% 5.08% 8.01% -4.40% 4.06% 7.36%
CLASS B** -0.38% N/A 4.41% -5.12% N/A 3.15%
ADV. CLASS*** N/A N/A 3.60% N/A N/A N/A
<FN>
* The Fund began operations on June 9, 1987.
** 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>
GEOGRAPHIC ALLOCATION OF NET ASSETS AS OF JUNE 30, 1995
<S> <C>
U.S. 43.9
JAPAN 15.8
U.K. 11.2
THAILAND 4.3
FRANCE 4
NETHERLANDS 3.7
SWITZERLAND 3.5
KOREA 2.1
FINLAND 1.8
SINGAPORE 1.7
SWEDEN 1.6
HONG KONG 1.4
GERMANY 1.3
OTHER 3.7
100.0
SECTOR ALLOCATION OF NET ASSETS AS OF JUNE 30, 1995
SERVICES 23.8
FINANCE 23.0
TECHNOLOGY 12.6
CAPITAL GOODS 11.0
HEALTH CARE 7.7
MATERIALS/BASIC INDUSTRY 5.6
CONSUMER NON-DURABLES 4.0
ENERGY 3.8
MULTI-INDUSTRY/MISC 3.5
CONSUMER DURABLES 1.5
OTHER 3.5
100.0
</TABLE>
ALLOCATIONS WILL CHANGE BASED ON CURRENT MARKET CONDITIONS.
7
<PAGE>
/ /
G.T. GLOBAL
WORLDWIDE
GROWTH FUND
/ /
FINANCIAL
STATEMENTS
<PAGE>
G.T. GLOBAL WORLDWIDE 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 (23.8%)
DDI Corp.................. JPN 625 $ 5,015,341 2.4
WIRELESS COMMUNICATIONS
Aoyama Trading Co.,
Ltd...................... JPN 250,000 4,189,285 2.0
RETAILERS-APPAREL
Viacom, Inc.(CHECK
MARK).................... US 75,100 3,482,763 1.7
BROADCASTING &
PUBLISHING
ABC Rail Products
Corp.(CHECK MARK)........ US 145,800 3,353,398 1.6
TRANSPORTATION - ROAD &
RAIL
Autobacs Seven Co.,
Ltd...................... JPN 34,000 3,310,125 1.6
RETAILERS-OTHER
Shimamura Co., Ltd........ JPN 85,000 3,009,205 1.4
RETAILERS-APPAREL
Granada Group PLC......... UK 300,000 2,910,305 1.4
LEISURE & TOURISM
Elsevier N.V.............. NETH 200,000 2,362,815 1.1
BROADCASTING &
PUBLISHING
Compass Group PLC......... UK 394,007 2,330,957 1.1
RESTAURANTS
Fast Retailing Co.,
Ltd...................... JPN 23,600 2,013,547 1.0
RETAILERS-APPAREL
EMAP PLC.................. UK 268,000 1,998,919 1.0
BROADCASTING &
PUBLISHING
British Sky Broadcasting
Group PLC(CHECK MARK).... UK 443,600 1,936,517 0.9
CABLE TELEVISION
Koninklijke Ahold N.V..... NETH 49,520 1,774,280 0.9
RETAILERS-FOOD
Tandy Corp................ US 33,400 1,732,625 0.8
RETAILERS-OTHER
La Quinta Inns, Inc....... US 63,562 1,716,187 0.8
LEISURE & TOURISM
Deutsche Lufthansa
AG(CHECK MARK)........... GER 10,030 1,450,995 0.7
TRANSPORTATION -
AIRLINES
Telecom Italia S.p.A...... ITLY 523,100 1,418,712 0.7
TELEPHONE NETWORKS
Pinault-Printemps S.A..... FR 6,420 1,376,518 0.7
RETAILERS-OTHER
Reuters Holdings PLC...... UK 163,200 1,358,702 0.7
BROADCASTING &
PUBLISHING
MacIntosh N.V............. NETH 37,500 1,089,413 0.5
RETAILERS-OTHER
Tesco PLC................. UK 183,000 843,989 0.4
RETAILERS-FOOD
Resorts World Bhd......... MAL 142,000 833,067 0.4
LEISURE & TOURISM
------------
49,507,665
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-1
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (23.0%)
Charles Schwab Corp....... US 135,000 $ 5,855,625 2.8
SECURITIES BROKER
Lehman Brothers Holding,
Inc...................... US 235,100 5,142,813 2.5
INVESTMENT MANAGEMENT
American International
Group, Inc............... US 32,000 3,648,000 1.8
INSURANCE - MULTI-LINE
Citicorp.................. US 57,700 3,339,388 1.6
BANKS-MONEY CENTER
Thai Farmers Bank, Ltd. -
Foreign.................. THAI 341,000 3,261,439 1.6
BANKS-REGIONAL
Axa Group................. FR 58,381 3,153,453 1.5
INSURANCE - MULTI-LINE
S.G. Warburg Group PLC.... UK 215,000 2,490,895 1.2
INVESTMENT MANAGEMENT
United Overseas Bank Ltd.
- Foreign................ SING 260,000 2,456,693 1.2
BANKS-MONEY CENTER
Land and House Co., Ltd. -
Foreign.................. THAI 110,000 2,318,136 1.1
REAL ESTATE
Bangkok Bank Co., Ltd. -
Foreign.................. THAI 185,000 2,039,311 1.0
BANKS-MONEY CENTER
HSBC Holdings PLC......... HK 148,800 1,908,728 0.9
BANKS-MONEY CENTER
M & G Group PLC........... UK 80,000 1,354,962 0.7
INVESTMENT MANAGEMENT
Banco Central
HispanoAmericano S.A..... SPN 63,375 1,342,890 0.6
BANKS-MONEY CENTER
Sparbanken Sverige AB
"A"...................... SWDN 160,000 1,342,577 0.6
INVESTMENT MANAGEMENT
Swiss Reinsurance Co. -
Registered(CHECK MARK)... SWTZ 1,700 1,310,078 0.6
INSURANCE - MULTI-LINE
Internationale Nederlanden
Groep N.V................ NETH 22,720 1,257,007 0.6
BANKS-MONEY CENTER
Baloise Holding Ltd. -
Registered............... SWTZ 545 1,242,941 0.6
INSURANCE - MULTI-LINE
National Westminster Bank
PLC...................... UK 142,000 1,234,144 0.6
BANKS-MONEY CENTER
Barclays PLC.............. UK 107,000 1,149,467 0.6
BANKS-MONEY CENTER
Sun Hung Kai Properties
Ltd...................... HK 132,000 976,697 0.5
REAL ESTATE
Skandia Forsakrings AB
Free..................... SWDN 33,990 659,265 0.3
INSURANCE - MULTI-LINE
Mapfre Vida Seguros....... SPN 2,424 119,147 0.1
INSURANCE-LIFE
------------
47,603,656
------------
Technology (12.6%)
CompUSA, Inc.(CHECK
MARK).................... US 209,500 6,965,877 3.3
COMPUTERS & PERIPHERALS
Kyocera Corp.............. JPN 60,000 4,942,176 2.4
SEMICONDUCTORS
International Business
Machines Corp............ US 41,300 3,964,800 1.9
COMPUTERS & PERIPHERALS
Cisco Systems, Inc.(CHECK
MARK).................... US 75,400 3,812,413 1.8
NETWORKING
S.M.H. AG - Bearer........ SWTZ 3,340 2,147,350 1.0
SEMICONDUCTORS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Technology (Continued)
Micron Technology, Inc.... US 37,200 $ 2,041,350 1.0
SEMICONDUCTORS
Intel Corporation......... US 32,000 2,026,000 1.0
SEMICONDUCTORS
Logica PLC................ UK 71,000 422,296 0.2
COMPUTERS & PERIPHERALS
------------
26,322,262
------------
Capital Goods (11.0%)
Canon, Inc................ JPN 300,000 4,885,532 2.3
OFFICE EQUIPMENT
Eaton Corp................ US 71,600 4,161,750 2.0
INDUSTRIAL COMPONENTS
Nokia AB "A"(CHECK
MARK).................... FIN 64,400 3,771,375 1.8
TELECOM EQUIPMENT
Westinghouse Electric
Corp..................... US 230,000 3,363,750 1.6
ELECTRICAL
PLANT/EQUIPMENT
The Boeing Co............. US 53,400 3,344,175 1.6
AEROSPACE/DEFENSE
Lockheed Martin
Corp.(CHECK MARK)........ US 33,200 2,095,750 1.0
AEROSPACE/DEFENSE
Telefonaktiebolaget LM
Ericsson "B" Free........ SWDN 70,920 1,414,576 0.7
TELECOM EQUIPMENT
Electrocomponents PLC..... UK 9,100 86,832 --
ELECTRICAL
PLANT/EQUIPMENT
------------
23,123,740
------------
Health Care (7.7%)
Takeda Chemical
Industries............... JPN 433,000 5,722,917 2.7
PHARMACEUTICALS
Sola International,
Inc.(CHECK MARK)......... US 180,000 4,477,500 2.1
MEDICAL TECHNOLOGY &
SUPPLIES
Merck & Co., Inc.......... US 83,600 4,096,400 2.0
PHARMACEUTICALS
Roche Holdings AG
Genusscheine............. SWTZ 300 1,933,970 0.9
PHARMACEUTICALS
------------
16,230,787
------------
Materials/Basic Industries
(5.6%)
Eastman Kodak Co.......... US 52,800 3,201,000 1.5
MISC. MATERIALS &
COMPONENTS
Hercules, Inc............. US 51,100 2,491,125 1.2
CHEMICALS
Tarmac PLC................ UK 966,000 1,728,292 0.8
BUILDING MATERIALS &
COMPONENTS
Siam Cement Co., Ltd. -
Foreign.................. THAI 19,000 1,213,536 0.6
CEMENT
RWE AG.................... GER 3,430 1,192,127 0.6
MISC. MATERIALS &
COMPONENTS
Pilkington PLC............ UK 350,000 971,295 0.5
BUILDING MATERIALS &
COMPONENTS
Construcciones y Auxiliar
de Ferrocarriles S.A..... SPN 21,500 861,421 0.4
BUILDING MATERIALS &
COMPONENTS
Dofasco, Inc.............. CAN 4 50 --
METALS - STEEL
------------
11,658,846
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (4.0%)
Bic....................... FR 16,000 $ 2,638,903 1.3
OTHER CONSUMER GOODS
Matthew Clark PLC......... UK 227,200 2,258,270 1.1
BEVERAGES - ALCOHOLIC
Reliance Industries Ltd. -
144A GDR(INVERTED
TRIANGLE) (CHECK MARK)
(DIAMOND)................ IND 113,500 2,029,380 1.0
TEXTILES & APPAREL
Polygram.................. NETH 21,730 1,283,599 0.6
RECREATION
------------
8,210,152
------------
Energy (3.8%)
Pacific Gas and Electric
Co....................... US 130,700 3,790,300 1.8
ELECTRICAL & GAS
UTILITIES
Yukong Ltd.:.............. KOR -- -- 0.6
OIL
Common.................. -- 23,044 1,001,998 --
New(CHECK MARK)......... -- 5,502 232,060 --
Korea Electric Power
Corp.(CHECK MARK)........ KOR 26,000 1,022,580 0.5
ELECTRICAL & GAS
UTILITIES
C.A. La Electricidad de
Caracas.................. VENZ 932,077 974,841 0.5
ELECTRICAL & GAS
UTILITIES
Motor-Columbus Ltd.(CHECK
MARK).................... SWTZ 440 800,869 0.4
ELECTRICAL & GAS
UTILITIES
------------
7,822,648
------------
Multi-Industry/Miscellaneous
(3.5%)
ITT Corp.................. US 35,700 4,194,750 2.0
CONGLOMERATE
Polaroid Corp............. US 50,000 2,037,500 1.0
MISCELLANEOUS
Straits Steamship Land
Ltd...................... SING 297,000 1,028,976 0.5
CONGLOMERATE
------------
7,261,226
------------
Consumer Durables (1.5%)
Samsung Electronics Co.
:........................ KOR -- -- 1.0
CONSUMER ELECTRONICS
Common(CHECK MARK)...... -- 7,428 1,320,718 --
Preferred(CHECK MARK)... -- 4,434 382,463 --
New(CHECK MARK)......... -- 1,470 253,529 --
Preferred New(CHECK
MARK).................. -- 2,856 238,959 --
PSA Peugeot Citroen
S.A.(CHECK MARK)......... FR 8,140 1,129,413 0.5
AUTOMOBILES
------------
3,325,082
------------ -----
Total Equity Investments
(cost $173,387,393)........ 201,066,064 96.5
------------ -----
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
<TABLE>
<CAPTION>
No. of Market % of Net
Warrants (0.0%) Country Warrants Value Assets *
---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Swiss Reinsurance Co. "B"
Warrants, expire 6/30/95
(cost $0)(CHECK MARK) .... SWTZ 4,000 $ 58,210 --
WARRANTS
------------ -----
Total Investments (cost
$173,387,393)(DELTA)....... 201,124,274 96.5
Other Assets and
Liabilities................ 7,227,285 3.5
------------ -----
Net Assets.................. $208,351,559 100.0
------------ -----
------------ -----
<FN>
-----------------
* Percentages indicated are based on net assets of $208,351,559.
(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 $173,950,433 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 32,496,719
Unrealized depreciation: (5,322,878)
-------------
Net unrealized appreciation: $ 27,173,841
-------------
-------------
Abbreviation:
GDR - Global Depository Receipt
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of
Net Assets *
---------------------------
Country (Country Code/Currency Code) Equity Other Total
-------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Finland (FIN/FIM)..................... 1.8 1.8
France (FR/FRF)....................... 4.0 4.0
Germany (GER/DEM)..................... 1.3 1.3
Hong Kong (HK/HKD).................... 1.4 1.4
India (IND/INR)....................... 1.0 1.0
Italy (ITLY/ITL)...................... 0.7 0.7
Japan (JPN/JPY)....................... 15.8 15.8
Korea (KOR/KRW)....................... 2.1 2.1
Malaysia (MAL/MYR).................... 0.4 0.4
Netherlands (NETH/NLG)................ 3.7 3.7
Singapore (SING/SGD).................. 1.7 1.7
Spain (SPN/ESP)....................... 1.1 1.1
Sweden (SWDN/SEK)..................... 1.6 1.6
Switzerland (SWTZ/CHF)................ 3.5 3.5
Thailand (THAI/THB)................... 4.3 4.3
United Kingdom (UK/GBP)............... 11.2 11.2
United States (US/USD)................ 40.4 3.5 43.9
Venezuela (VENZ/VEB).................. 0.5 0.5
------ --- -----
Total................................. 96.5 3.5 100.0
------ --- -----
------ --- -----
<FN>
----------------
* Percentages indicated are based on net assets of $208,351,559.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-5
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
Market Value Unrealized
(U.S. Contract Delivery Appreciation
Contracts to Sell: Dollars) Price Date (Depreciation)
------------------------------------------------------------------------------ ------------- ---------- --------- -------------
<S> <C> <C> <C> <C>
Deutsche Marks................................................................ 507,063 1.37248 08/03/95 $ 2,965
Deutsche Marks................................................................ 1,160,177 1.43286 08/30/95 (43,529)
French Francs................................................................. 1,305,046 5.08825 08/04/95 (59,825)
French Francs................................................................. 2,883,625 4.95000 08/04/95 (55,342)
French Francs................................................................. 3,684,773 4.96615 08/16/95 (81,358)
Japanese Yen.................................................................. 10,145,911 82.00000 08/10/95 280,918
Japanese Yen.................................................................. 10,232,613 85.61500 08/31/95 (187,645)
Netherland Guilders........................................................... 1,488,384 1.59740 08/15/95 (48,544)
Netherland Guilders........................................................... 2,523,782 1.60070 08/15/95 (87,348)
Swedish Krona................................................................. 2,097,543 7.40550 08/22/95 (51,587)
Swiss Francs.................................................................. 6,454,990 1.20510 08/17/95 (314,420)
------------- -------------
Total Contracts to Sell (Receivable amount $41,838,192)..................... 42,483,907 (645,715)
------------- -------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 20.39%
Total Open Forward Foreign Currency Contracts, Net.......................... $ (645,715)
-------------
-------------
<FN>
----------------
See Note 1 to the financial statements.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-6
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (cost $173,387,393) (Note 1)..................................... $ 201,124,274
Foreign currencies (cost $1,662,259)................................................................. 1,653,430
Receivable for securities sold....................................................................... 8,451,721
Receivable for Fund shares sold...................................................................... 2,860,873
Dividends and dividend withholding tax reclaims receivable........................................... 635,201
Cash held as collateral for securities loaned (Note 1)............................................... 21,407,587
-------------
Total assets......................................................................................... 236,133,086
-------------
Liabilities:
Due to custodian..................................................................................... 4,462,398
Payable for forward foreign currency contracts, open (Note 1)........................................ 645,715
Payable for Fund shares repurchased.................................................................. 500,495
Payable for securities purchased..................................................................... 290,252
Payable for investment management and administration fees (Note 2)................................... 169,854
Payable for service and distribution expenses (Note 2)............................................... 88,675
Payable for transfer agent fees (Note 2)............................................................. 86,301
Payable for custodian and fund accounting fees (Note 1).............................................. 59,094
Payable for printing and postage expenses............................................................ 22,628
Payable for registration fees........................................................................ 17,245
Payable for professional fees........................................................................ 13,159
Payable for Trustees' fees and expenses (Note 2)..................................................... 4,981
Accrued expenses..................................................................................... 13,143
Collateral for securities loaned (Note 1)............................................................ 21,407,587
-------------
Total liabilities.................................................................................. 27,781,527
-------------
Net assets............................................................................................. $ 208,351,559
-------------
-------------
Class A:
Net asset value and redemption price per share
($155,584,989 DIVIDED BY 9,849,726 shares outstanding)............................................... $ 15.80
-------------
-------------
Maximum offering price per share
(100/95.25 of $15.80)*................................................................................ $ 16.59
-------------
-------------
Class B:+
Net asset value and offering price per share
($51,161,065 DIVIDED BY 3,289,688 shares outstanding)................................................ $ 15.55
-------------
-------------
Advisor Class (Notes 1 & 4):
Net asset value, offering price per share, and redemption price per share
($1,605,505 DIVIDED BY 101,581 shares outstanding)................................................... $ 15.81
-------------
-------------
Net assets consist of:
Paid in capital (Note 4)............................................................................. $ 189,801,131
Undistributed net investment income.................................................................. 581,664
Accumulated net realized loss on investments and foreign currency transactions....................... (9,132,958)
Net unrealized depreciation on translation of assets and liabilities in foreign currencies........... (635,159)
Net unrealized appreciation of investments........................................................... 27,736,881
-------------
Total -- representing net assets applicable to capital shares outstanding............................ $ 208,351,559
-------------
-------------
<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 WORLDWIDE 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 $361,028)............................................. $ 1,966,795
Interest income....................................................................................... 298,457
-----------
Total investment income............................................................................... 2,265,252
-----------
Expenses:
Investment management and administration fees (Note 2)................................................ 1,017,725
Service and distribution expenses (Note 2):
Class A................................................................................ $ 278,504
Class B................................................................................ 247,094 525,598
-----------
Transfer agent fees (Note 2).......................................................................... 327,569
Custodian and fund accounting fees (Note 1)........................................................... 120,914
Printing and postage expenses......................................................................... 96,840
Registration fees..................................................................................... 57,010
Professional fees..................................................................................... 34,496
Trustees' fees and expenses (Note 2)..................................................... 15,040
-----------
Total expenses before expense reductions.............................................................. 2,195,192
Expense reductions (Notes 1 & 5).................................................................... (59,279)
-----------
Total net expenses.................................................................................... 2,135,913
-----------
Net investment income................................................................................... 129,339
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies (Note 1):
Net realized loss on investments......................................................... (1,266,407)
Net realized loss on foreign currency transactions....................................... (6,133,392)
-----------
Net realized loss during the period................................................................. (7,399,799)
Net change in unrealized depreciation on translation of assets and liabilities in foreign
currencies.............................................................................. (1,615,232)
Net change in unrealized appreciation of investments..................................... 10,405,771
-----------
Net unrealized appreciation during the period....................................................... 8,790,539
-----------
Net realized and unrealized gain on investments and foreign currencies..................... 1,390,740
-----------
Net increase in net assets resulting from operations....................................... $ 1,520,079
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-8
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
STATEMENTS 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).................................................................
$ 129,339 $ (364,638)
Net realized gain (loss) on investments and foreign currency transactions....................
(7,399,799) 11,169,856
Net change in unrealized depreciation on translation of assets and liabilities in foreign
currencies..................................................................................
(1,615,232) (439,209)
Net change in unrealized appreciation of investments.........................................
10,405,771 (27,662,950)
---------------- ----------------
Net increase (decrease) in net assets resulting from operations................................
1,520,079 (17,296,941)
---------------- ----------------
Class A:
Distributions to shareholders: (Note 1)
From net realized gain on investments........................................................
-- (8,774,504)
Class B:
Distributions to shareholders: (Note 1)
From net realized gain on investments........................................................
-- (2,518,790)
---------------- ----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.............................................
54,266,109 146,805,682
Decrease from capital shares repurchased.....................................................
(82,468,476) (97,769,940)
---------------- ----------------
Net increase (decrease) from capital share transactions........................................
(28,202,367) 49,035,742
---------------- ----------------
Total increase (decrease) in net assets........................................................
(26,682,288) 20,445,507
Net assets:
Beginning of period..........................................................................
235,033,847 214,588,340
---------------- ----------------
End of period................................................................................
$ 208,351,559 $ 235,033,847
----------------
---------------- ----------------
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-9
<PAGE>
G.T. GLOBAL WORLDWIDE 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.... $ 15.53 $ 17.47 $ 14.47 $ 14.07 $ 11.83 $ 13.63
---------- -------- -------- ------- ------- -------
Income from investment operations:
Net investment income
(loss)............................... 0.03 -- 0.04 0.07 0.10 0.11
Net realized and unrealized gain
(loss) on investments................ 0.24 (1.16) 3.92 0.39 2.29 (1.82)
---------- -------- -------- ------- ------- -------
Net increase (decrease) from
investment operations................ 0.27 (1.16) 3.96 0.46 2.39 (1.71)
---------- -------- -------- ------- ------- -------
Distributions to shareholders:
From net investment
income............................... -- -- -- -- (0.15) (0.09)
From net realized gain on
investments.......................... -- (0.78) (0.96) (0.06) -- --
---------- -------- -------- ------- ------- -------
Total distributions................. -- (0.78) (0.96) (0.06) (0.15) (0.09)
---------- -------- -------- ------- ------- -------
Net asset value, end of period.......... $ 15.80 $ 15.53 $ 17.47 $ 14.47 $ 14.07 $ 11.83
---------- -------- -------- ------- ------- -------
---------- -------- -------- ------- ------- -------
Total investment return (c)............. 1.74%(a) (6.65)% 27.6% 3.3% 20.3% (12.5)%
---------- -------- -------- ------- ------- -------
---------- -------- -------- ------- ------- -------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $155,585 $182,467 $193,997 $141,310 $126,868 $85,894
Ratio of net investment income (loss) to
average net assets..................... 0.28%(b) (0.01)% 0.9% 0.5% 0.8% 0.7%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.90%(b) 1.81% 1.9% 2.1% 2.0% 2.1%
Without expense reductions............ 1.95%(b) 1.84% --%** --%** --%** --%**
Portfolio turnover rate++++............. 138%(b) 86% 92% 95% 122% 107%
<CAPTION>
ADVISOR
CLASS B++ CLASS+++
------------------------------------- -----------
APRIL 1, JUNE 1,
SIX MONTHS YEAR 1993 TO 1995 TO
ENDED JUNE ENDED DECEMBER JUNE 30,
30, 1995 DECEMBER 31, 1995
(UNAUDITED) 31, 1994 1993* (UNAUDITED)
---------- -------- -------- -----------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 15.34 $17.39 $15.67 $15.26
---------- -------- -------- -----------
Income from investment operations:
Net investment income
(loss)............................... (0.03) (0.11 ) (0.04 ) 0.00
Net realized and unrealized gain
(loss) on investments................ 0.24 (1.16 ) 2.72 0.55
---------- -------- -------- -----------
Net increase (decrease) from
investment operations................ 0.21 (1.27 ) 2.68 0.55
---------- -------- -------- -----------
Distributions to shareholders:
From net investment
income............................... -- -- -- --
From net realized gain on
investments.......................... -- (0.78 ) (0.96 ) --
---------- -------- -------- -----------
Total distributions................. -- (0.78 ) (0.96 ) --
---------- -------- -------- -----------
Net asset value, end of period.......... $ 15.55 $15.34 $17.39 $15.81
---------- -------- -------- -----------
---------- -------- -------- -----------
Total investment return (c)............. 1.37%(a) (7.32 )% 17.3 %(a) 3.60%(a)
---------- -------- -------- -----------
---------- -------- -------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 51,161 $52,567 $20,592 $1,606
Ratio of net investment income (loss) to
average net assets..................... (0.37)%(b) (0.66 )% (0.4 )%(b) 0.63%(b)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.55%(b) 2.46 % 2.5 %(b) 1.55%(b)
Without expense reductions............ 2.60%(b) 2.49 % -- %** 1.60%(b)
Portfolio turnover rate++++............. 138%(b) 86 % 92 % 138%(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.
* Calculated based upon weighted average shares outstanding during the
period.
** Calculation of "Ratio of expenses to average net assets" was made without
considering the effect of expense reductions, if any.
(a) Not annualized.
(b) Annualized.
(c) Total investment return does not include sales charges.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-10
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global Worldwide 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 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
ask 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, the Fund's investment manager, 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
Fund'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 rate, 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
F-11
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
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 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 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 the value
of
F-12
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
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 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 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 of
the other party to the transaction fails to deliver and cause the Fund to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At June 30, 1995, stocks with an aggregate value of approximately $20,531,837
were on loan to brokers. The loans were secured by cash collateral of
$21,407,587, received by the Fund. For international securities, 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 domestic securities,
cash collateral is received by the Fund against loaned securities in an amount
at least equal to 102% of the market value of the loaned securities at the
inception of each loan. This collateral must be maintained at not less than 100%
of the market value of the loaned securities during the period of each loan. For
the period ended June 30, 1995, the Fund received securities lending fees of
$24,498, 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 investment 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,
F-13
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
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 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.
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 $15,654
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 did not collect any
such CDSCs 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 CDSC, in accordance with the Fund's current
prospectus. For the period ended June 30, 1995, G.T. Global collected CDSCs in
the amount of $128,128. 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 $136,427,325 and $162,323,921, respectively. There were no purchases
or sales of U.S. government obligations by the Fund during the period.
F-14
<PAGE>
G.T. GLOBAL WORLDWIDE 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
JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold................................................................... 3,098,157 $ 47,030,905 5,542,867 $ 94,463,212
Shares issued in connection with reinvestment of distributions................ -- -- 455,250 7,079,197
---------- ------------ ---------- -------------
3,098,157 47,030,905 5,998,117 101,542,409
Shares repurchased............................................................ (5,000,005) (74,826,781) (5,352,193) (90,753,350)
---------- ------------ ---------- -------------
Net increase (decrease)....................................................... (1,901,848) $(27,795,876) 645,924 $ 10,789,059
---------- ------------ ---------- -------------
---------- ------------ ---------- -------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -------------
<S> <C> <C> <C> <C>
CLASS B
Shares sold................................................................... 384,956 $ 5,649,084 2,513,641 $ 43,054,428
Shares issued in connection with reinvestment of distributions................ -- -- 143,692 2,208,845
---------- ------------ ---------- -------------
384,956 5,649,084 2,657,333 45,263,273
Shares repurchased............................................................ (521,200) (7,640,241) (415,621) (7,016,590)
---------- ------------ ---------- -------------
Net increase (decrease)....................................................... (136,244) $ (1,991,157) 2,241,712 $ 38,246,683
---------- ------------ ---------- -------------
---------- ------------ ---------- -------------
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT OF SALE OF
SHARES) TO JUNE 30, 1995
(UNAUDITED)
------------------------
SHARES AMOUNT
---------- ------------
<S> <C> <C>
ADVISOR CLASS
Shares sold.................................................................. 101,673 $ 1,586,120
Shares repurchased........................................................... (92) (1,454)
---------- ------------
Net increase................................................................. 101,581 $ 1,584,666
---------- ------------
---------- ------------
</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 $34,781 under these arrangements.
F-15
<PAGE>
G.T. GLOBAL WORLDWIDE GROWTH FUND
NOTES
--------------------------------------------------------------------------------
<PAGE>
G.T. GLOBAL WORLDWIDE 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
