<PAGE>
LGT ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
NEW PACIFIC
GROWTH FUND
SEMIANNUAL REPORT
JUNE 30, 1996
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Report from the Fund
Managers and Key
Portfolio Holdings... 1
Financial
Statements........... F1
The views of the
Funds' management and
portfolio holdings
described in this
semiannual report are
as of June 30, 1996;
these views and
portfolio holdings
may have changed.
</TABLE>
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
INVESTMENT OBJECTIVE
The GT Global New Pacific Growth Fund seeks long-term growth of capital
primarily through a portfolio of investments in the equity markets of the
Asian Pacific Rim, excluding Japan.
PERFORMANCE SUMMARY
GT GLOBAL MSCI
NEW PACIFIC Pacific Ex-Japan
GROWTH FUND A Index
------------- ----------------
1/19/1977 9525 10000
9525 9994
9630 9760
9687 9958
9630 10052
9658 10220
9944 10295
9573 9879
9782 9717
10058 9602
10363 9985
10535 9897
10706 10343
10735 10055
11087 9805
12410 10533
12247 11001
12314 11465
13895 12395
15245 13114
15776 14619
16441 14340
17049 14561
15573 12369
16190 12824
15930 13735
15429 13693
15208 13922
14194 13706
13817 14198
13763 13832
13569 14578
13914 15604
13881 17216
12425 16841
11778 17261
12641 19508
12781 22324
11994 22753
11306 18862
12087 20660
13047 22880
13940 25335
13717 26369
14387 27937
15324 28480
15994 32113
15905 31374
17143 31505
18036 30842
17646 29899
18109 30525
19026 31056
19898 32411
20838 32862
19764 29609
19294 27990
17001 23883
17650 23677
18892 27091
18903 26628
18332 25058
16767 22313
15741 20937
17335 23576
17605 24167
16207 21638
15876 20322
15104 19361
14601 18867
14442 18085
15766 17834
16967 19122
16685 21059
17114 21523
17556 20935
18090 22918
18949 22680
19443 22805
20250 24147
20602 24009
20537 23116
20654 23482
21500 24606
23283 25664
24194 27047
24363 26105
25605 26258
24940 26241
21428 23046
20683 22327
19526 22034
21787 23814
21907 23800
22559 23874
22719 24329
22586 23806
23211 25585
22359 24333
22491 24634
22603 25040
22813 25917
22379 25578
22995 28221
22925 27237
23821 28075
25122 29263
25234 28210
24689 27922
25472 29489
27110 28782
30078 29707
31898 32328
32752 32655
35553 31319
7/31/1987 40874 29529
44458 31615
43380 33557
38283 38478
39851 38624
41952 41441
41882 42639
43576 48205
46870 49784
48192 50979
50913 54583
50676 56845
53673 62936
54935 66816
56079 69436
42690 39198
39768 40871
44356 43180
45152 42763
46314 42584
50169 47744
52799 50069
51943 53623
52249 54572
53686 56785
51331 53723
51209 52817
52677 56302
54054 56075
54649 56379
58369 62282
59995 57473
61933 58460
64153 60418
64684 57695
63434 55343
68811 60330
71218 62951
75845 64710
73094 62538
76783 62611
80947 65390
79663 64990
78058 64167
76774 63341
73950 60079
80947 65777
82744 67865
85954 71505
77288 66052
69777 60014
74848 59275
72216 58752
72075 58755
74394 62285
80872 68234
82645 69913
83122 72275
83872 72539
82099 72262
84349 76475
80122 75523
82781 76311
84827 79169
80394 78406
81494 80266
82071 82100
81422 84698
77672 84110
79114 88101
85533 94085
82793 93143
78249 90792
75509 85619
74643 84236
76662 86876
74715 85201
75009 85897
75082 86538
78574 93195
81629 94782
88104 99640
90796 103455
88032 100316
91378 103860
95598 111708
97199 113866
100909 132280
101127 128331
120468 154978
118342 150724
113328 143388
98745 128164
100719 134114
104289 138544
99352 132406
104441 139383
112037 148749
110822 144844
111050 147178
101555 135384
96698 133297
86949 121795
91424 133171
93582 134577
94780 136361
103012 145618
101413 142866
105889 148766
102292 144832
102932 146694
100854 144116
99735 145398
103900 151118
113565 161163
111482 163613
109482 165746
110649 170317
114065 168612
6/30/1996 111649 165478
The chart above shows the performance of the GT Global New Pacific Growth
Fund, Class A shares, since the Fund's inception versus the MSCIPacific
Ex-Japan Index. 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. This represents a cumulative return of 1016.49% and an
average annual total return of 13.21% for the Fund. A $10,000 investment in
the Fund's Class B shares at inception on April 1, 1993, would have been
valued at $13,302 on June 30, 1996. This figure reflects the applicable
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years). A $10,000 investment in Advisor Class shares at inception
on June 1, 1995, would have been worth $10,894. The Fund is a professionally
managed mutual fund while the index is unmanaged, does not incur expenses and
is not available for investment.
AVERAGE ANNUAL TOTAL RETURNS(1)
JUNE 30, 1996
SHARE CLASS WITHOUT SALES CHARGE(2) WITH SALES CHARGE
- ----------- ---------------------------- ------------------------------
1-YEAR 5-YEAR 10-YEAR LOF 1-YEAR 5-YEAR 10-YEAR LOF
------ ------ ------- --- ------ ------ ------- ----
Class A(3) 10.09 6.34 12.12 13.49 4.86 5.31 11.58 13.21
Class B(3) 9.24 N/A N/A 9.19 4.24 N/A N/A 8.42
Advisor Class(4) 10.66 N/A N/A 8.24 N/A N/A N/A N/A
HISTORICAL PERFORMANCE(2)
ANNUAL TOTAL RETURNS (LAST 10 YEARS)
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Class A 69.92 5.73 23.20 48.12 -10.96 13.07 -7.96 60.61 -19.73 7.45
Class B N/A N/A N/A N/A N/A N/A N/A 46.30(3) -20.30 6.54
(1) Figures assume reinvestment of all dividends and capital gain
distributions at net asset value.
(2) Performance data do not reflect the maximum 4.75% sales charge and the
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years) for Class A and Class B shares, respectively, which, if
included, would have reduced the performance quoted.
(3) The Fund began operations on January 19, 1977; Class B shares commenced
on April 1, 1993.
(4) 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 GT Global.
Please see the ""Alternative Purchase Plan'' section in the Fund's prospectus.
The above data 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.
1
<PAGE>
INTERVIEW WITH PORTFOLIO MANAGER LAWRENCE YIP
Q HOW DID THE FUND PERFORM?
A All in all, the Fund performed reasonably well in the last six months to
June 30, 1996, returning a total of 7.46% for Class A shares (2.35% including
the maximum 4.75% sales charge). Total return for Class B shares was 7.08%
(2.08% including the effect of the maximum 5% contingent deferred sales
charge). Total return for the Morgan Stanley Capital International (MSCI)
Pacific ex-Japan Index5 over the same period was 9.5%.
Q HOW WOULD YOU CHARACTERIZE THE REGION'S PERFORMANCE IN GENERAL?
A Notwithstanding a correction in March 1996 following the rise in U.S. long
bond yields and the recent consolidation on the back of mixed results,
markets in the region have made considerable progress this year. This can in
part be attributed to inflows of portfolio capital from the U.S. Malaysia and
the Philippines led regional performance over the period, returning 16.33%
and 19.48%, respectively (according to relevant MSCI indices). The Fund
benefited from its holdings in both of these markets.
Q WHAT COMPANIES IN PARTICULAR CONTRIBUTED TO THE FUND'S RETURNS?
A Stocks that represent good proxies to important investment trends/themes
prevailed in the region. For example, property stocks in both Hong Kong and
the Philippines did well for the Fund. Specifically, Sun Hung Kai Properties,
New World Development (HK), MegaWorld Properties and Ayala Land
(Philippines). In Malaysia, the Fund's infrastructure and motor stocks, such
as Ekran and EON, enjoyed solid gains. Additionally, China plays like China
Hong Kong Photo, Cosco Pacific and CITIC Pacific rewarded the Fund.
Q COULD YOU DESCRIBE YOUR INVESTMENT PROCESS?
A In line with our in-house investment process, the Fund tries to identify
undiscounted changes (companies that will do better than people expect), both
in terms of business/monetary cycles and corporate earnings. Our asset
allocation is primarily determined at bi-monthly meetings of our regional
investment team. They review macroeconomic assessments from our economists as
well as earnings forecasts from our various country specialists, supplemented
by valuation checks and controls. Stock selection essentially revolves around
prevailing key investment themes/trends.
Q WHAT CHANGES DID YOU MAKE TO THE FUND'S INVESTMENT STRATEGY OVER THE
SIX-MONTH PERIOD?
A We found the investment environment attractive in Malaysia, the
Philippines and Indonesia, and increased our exposure to these countries,
although Indonesia to a lesser degree. Relative to the index, we remain
overweighted in Hong Kong. And, in line with our somewhat more bearish
outlook for Thailand and Singapore, we reduced the Fund's weightings in these
markets.
Q WHAT IS YOUR VIEW ON HONG KONG GOING FORWARD?
A Our current outlook for the Hong Kong market is positive for the remainder
of the year, even in the absence of a reduction in U.S. interest rates. Our
view is underpinned by recovery of the business cycle in China, which has
been strengthening since the second half of 1995, and continued credit easing
on the part of Chinese authorities. This has been coupled with a rerating of
Hong Kong companies whose earnings are China-sourced.
Already, we have witnessed a recovery in the property sector, with a pickup
in residential prices of 10%-15% over the past 3-6 months. We expect the
uptrend to continue over the next 12-18 months and believe the potential
exists for a property boom after the handover to China. Even for some of the
non- property sector stocks, substantial amounts of their earnings are
derived from the property markets; therefore, the upward earnings revision we
expect for many property companies may benefit the overall market.
Q COULD YOU DISCUSS MALAYSIA AND THE PHILIPPINES?
A The Malaysian market has done extremely well, and over the longer term we
feel positive about the potential growth of corporate earnings. We see the
motor sector and the independent hydroelectric power plants continuing to
perform well, and believe infrastructure and construction spending will
remain strong. In the short term, however, the market may go through some
consolidation because it has had very good year-to-date performance and
because we expect the central bank may introduce tightening measures in an
effort to curb the pace of economic growth.
We also find the long-term prospects of the Philippine market attractive. The
economy has turned around since President Ramos took office and market
sentiment is benefiting from the improved inflation outlook for the country.
As a result, interest rate-sensitive stocks are being rerated significantly.
At the same time, listed companies are reporting better than expected results
for the first quarter of 1996, and property stocks have performed very well
over the last several months, buoyed by substantial accumulation of wealth
and pent-up demand for residential property over the last few years. Thanks
in part to the government's subsidy to buyers of low-cost homes, our outlook
for the residential construction/development sector remains positive. We also
believe these trends to be particularly favorable for the country's
underdeveloped banking sector.
2
<PAGE>
Q WHY DID YOU REDUCE THE FUND'S EXPOSURE TO THAILAND AND SINGAPORE?
A Under the current environment, we find it difficult to be enthusiastic
about particular stocks in these markets. In Thailand, the finance sector has
been faced with growing concern over problem loans, resulting in a selloff of
banking shares. While domestic interest rates may soon be cut, we believe
such an action is unlikely to trigger a reversal in the current cautious
sentiment, which is influenced primarily by a poor earnings outlook for the
remainder of 1996. Moreover, at least in the near term, investor sentiment
could be swayed by political issues in the wake of the recent election of a
new and populist government.
Banking and financial stocks in Singapore have also underperformed in the
wake of slow loan growth. Two of the four largest banks in Singapore posted
single-digit growth for 1995, considerably below market expectations. With
interest rate spreads narrowing, the outlook is not much better. As
overheated property prices have prompted the government to introduce measures
to cool down the residential market, we expect demand for residential
properties to decline; banking and finance stocks are likely to suffer
further decline with the ease in mortgage financing. However, Singapore's
economic fundamentals remain attractive. They neither have problems with
inflation nor their current account, and the latest indicators suggest GDP
growth could be accelerating.
Q WHAT IS YOUR OVERALL OUTLOOK FOR THE REGION?
A We may see a rise in U.S. interest rates, which could cause some
short-term repercussions in Southeast Asian markets. A decline in the U.S.
stock market might also create some short-term volatility. Despite this
possibility, we continue to find selective opportunities and believe in the
region's long-term fundamental value.
ABOUT THE PORTFOLIO MANAGER
LAWRENCE YIP - Portfolio manager for LGT Asset Management since 1988 and
investment analyst for Taiwan and South Korea from 1985 to 1988. Previously,
Mr. Yip was a credit analyst with the Bank of Credit and Commerce Hong Kong
Ltd. He received his B.A. from the University of Hong Kong.
(5) The MSCI Pacific ex-Japan Index is an arithmetic average, weighted by
market value, of the performance of 204 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. The index is not available for investment and does not incur
sales charges and professional management fees.
SAVINGS IN PACIFIC RIM COUNTRIES VS. THE U.S.
Figures measured per US$100 of gross national product
Philippines $15.40
U.S. $15.70
New Zealand $19.70*
Australia $20.00*
Taiwan $26.00
Hong Kong $33.00
South Korea $35.10
Malaysia $35.60
Thailand $37.20
Indonesia $38.70
Singapore $48.00
Savings rates throughout the Pacific Rim are higher than in the U.S. Higher
savings rates have historically translated into higher investment rates, a
good sign for Pacific Rim economies.
Source: Asia Pacific Earnings Guide, Flemings Research, July 1995. Data as of
1994.
* 1993 data is the most recent available information.
GEOGRAPHIC ALLOCATION OF NET ASSETS
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
AUSTRALIA 6.1% 12.7%
CHINA - 1.1
HONG KONG 38.4 32.2
INDIA - 1.6
INDONESIA 1.4 1.2
KOREA 0.3 5.1
MALAYSIA 29.3 21.4
NEW ZEALAND 0.4 1.6
PHILIPPINES 9.7 1.7
SINGAPORE 1.2 3.9
THAILAND 4.7 13.1
U.S. & OTHER 8.5 4.4
Allocations will change based on current market conditions.
3
<PAGE>
ALLOCATION OF NET ASSETS(6)
JUNE 30, 1996
-------------
FINANCE 40.6%
MULTI-INDUSTRY/MISC. 11.7
CAPITAL GOODS 10.9
MATERIALS/BASIC INDUSTRY 8.7
SERVICES 6.6
CONSUMER DURABLES 5.5
ENERGY 4.2
CONSUMER NON-DURABLES 2.9
SHORT TERM & OTHER 8.9
GT GLOBAL NEW PACIFIC GROWTH FUND
KEY PORTFOLIO HOLDINGS(7)
% of
Country Net Assets
------- ----------
NEW WORLD DEVELOPMENT CO., LTD. A leading property
developer and hotel operator with substantial HONG KONG 5.4
exposure to Chinese infrastructure development
and low-cost housing projects.
PERUSAHAAN OTOMOBIL NASIONAL BHD. Perusahaan Otomobil
Nasional Bhd. manufactures, assembles and MALAYSIA 4.4
sells motor vehicles and related products. The company
exports its products to the UK, New Zealand, Malta,
Sri Lanka and Singapore.
CHEUNG KONG (HOLDINGS) LTD. Through subsidiaries,
Cheung Kong is involved in property development HONG KONG 4.2
and investment, project and building management and
cement and quarry operations. The company also
operates a real estate agency.
CITIC PACIFIC LTD. A holding company with interests
in Cathay Pacific, Wacan Telecom and Hong Kong HONG KONG 4.2
Telecom, two power stations in China and the Manhattan
Card Group. The company also has substantial
property holdings.
HSBC Holdings PLC The group consists of Midland Bank
(one of the clearing banks in the UK), Hong Kong HONG KONG 4.0
Bank (the largest retail bank in HK) and other
subsidiaries, including a diverse range of financial
operations (broking, merchant banking and fund
management).
SWIRE PACIFIC LTD. One of the largest owners of
Grade A office space and shopping malls in Hong Kong. HONG KONG 3.6
Swire Pacific is also the major shareholder of Cathay
Pacific, Hong Kong's international airline.
PUBLIC BANK BHD. Public Bank Bhd. provides banking,
financing, stock and commodity brokerage, and MALAYSIA 3.5
other related financial services. The company also
manages unit trusts and has investment holdings.
SUN HUNG KAI PROPERTIES LTD. A multi-industry
conglomerate with an emphasis on property development HONG KONG 3.5
and investment.
PWE INDUSTRIES BHD. A manufacturer of electrical
equipment. MALAYSIA 3.5
EKRAN BHD. A diversified holding company with
interests from property development to servicing of MALAYSIA 3.4
telecommunications equipment.
(6) Allocations in this report will change based on current market conditions.
(7) There is no assurance the Fund continues to hold these or any other
securities mentioned in this report.
4
<PAGE>
GT GLOBAL
NEW PACIFIC
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (40.6%)
New World Development Co., Ltd. ........................... HK 6,714,000 $ 31,139,149 5.4
REAL ESTATE
Cheung Kong (Holdings) Ltd. ............................... HK 3,383,000 24,365,642 4.2
REAL ESTATE
HSBC Holdings PLC ......................................... HK 1,527,600 23,090,136 4.0
BANKS-MONEY CENTER
Public Bank Bhd. - Foreign ................................ MAL 7,336,000 20,296,071 3.5
BANKS-MONEY CENTER
Sun Hung Kai Properties Ltd. .............................. HK 2,000,000 20,218,332 3.5
REAL ESTATE
Fil-Estate Land, Inc. ..................................... PHIL 11,955,000 15,315,201 2.7
REAL ESTATE
Hang Lung Development Co. ................................. HK 6,500,000 12,218,203 2.1
REAL ESTATE
Rashid Hussain Bhd. ....................................... MAL 3,250,000 11,923,617 2.1
SECURITIES BROKER
Hysan Development Co., Ltd. ............................... HK 3,769,000 11,539,991 2.0
REAL ESTATE
Megaworld Properties & Holdings, Inc.-/- .................. PHIL 11,814,600 10,617,327 1.8
REAL ESTATE
Siam Commercial Bank PLC - Foreign ........................ THAI 622,400 9,024,555 1.6
BANKS-MONEY CENTER
Krung Thai Bank Ltd. - Foreign ............................ THAI 1,923,840 9,020,369 1.6
BANKS-MONEY CENTER
Ayala Land, Inc. "B" ...................................... PHIL 3,800,000 6,829,828 1.2
REAL ESTATE
Singapore Land Ltd. ....................................... SING 911,000 6,168,061 1.1
REAL ESTATE
DCB Holdings Bhd. ......................................... MAL 1,720,000 5,896,552 1.0
BANKS-REGIONAL
Bank of East Asia, Ltd. ................................... HK 1,222,600 4,469,941 0.8
BANKS-MONEY CENTER
HKR International Ltd. .................................... HK 3,553,600 4,131,826 0.7
REAL ESTATE
MBF Capital Bhd. .......................................... MAL 2,462,000 3,395,862 0.6
OTHER FINANCIAL
Hong Kong Land Holdings Ltd.{\/} .......................... HK 603,353 1,357,544 0.2
REAL ESTATE INVESTMENT TRUST
PT Bank Internasional Indonesia - Foreign ................. INDO 239,500 1,183,606 0.2
BANKS-MONEY CENTER
Amoy Properties Ltd. ...................................... HK 613,500 741,066 0.1
REAL ESTATE
Overseas-Chinese Banking Corp., Ltd. - Foreign ............ SING 50,000 584,899 0.1
BANKS-REGIONAL
Malayan Banking Bhd. ...................................... MAL 47,500 457,097 0.1
BANKS-MONEY CENTER
United Overseas Bank Ltd. - Foreign ....................... SING 28,000 267,990 --
BANKS-MONEY CENTER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Hong Leong Bank Bhd. ........................................ MAL 1,000 $ 2,807 --
BANKS-MONEY CENTER
------------
234,255,672
------------
Multi-Industry/Miscellaneous (11.7%)
Citic Pacific Ltd. ........................................ HK 5,934,000 23,995,117 4.2
CONGLOMERATE
Swire Pacific Ltd. "A" .................................... HK 2,443,500 20,913,620 3.6
MULTI-INDUSTRY
Hutchison Whampoa ......................................... HK 2,614,000 16,446,199 2.9
MULTI-INDUSTRY
Metro Pacific Corp. ....................................... PHIL 9,000,000 2,684,512 0.5
MULTI-INDUSTRY
Pacific Dunlop Ltd. ....................................... AUSL 1,030,000 2,314,425 0.4
MULTI-INDUSTRY
JG Summit Holdings, Inc. "B" .............................. PHIL 748,000 280,321 0.1
CONGLOMERATE
Jardine Strategic Holdings Ltd.{\/} ....................... HK 83,000 265,600 --
CONGLOMERATE
Korea Fund, Inc.{\/} ...................................... KOR 907 19,160 --
COUNTRY FUNDS
------------
66,918,954
------------
Capital Goods (10.9%)
PWE Industries Bhd. ....................................... MAL 485,000 20,127,306 3.5
ELECTRICAL PLANT/EQUIPMENT
Ekran Bhd. ................................................ MAL 5,196,000 19,792,302 3.4
MACHINERY & ENGINEERING
C & P Homes, Inc. ......................................... PHIL 12,495,800 10,871,107 1.9
CONSTRUCTION
Mancon Bhd. ............................................... MAL 650,000 5,368,885 0.9
CONSTRUCTION
E.R.G. Ltd. ............................................... AUSL 1,754,638 2,302,204 0.4
ELECTRICAL PLANT/EQUIPMENT
Empire East Land Holdings-/- .............................. PHIL 3,441,500 2,105,698 0.4
CONSTRUCTION
United Engineers Ltd. ..................................... MAL 200,000 1,387,330 0.2
CONSTRUCTION
Bandar Raya Developments Bhd. ............................. MAL 394,000 663,512 0.1
CONSTRUCTION
United Engineers Ltd., Convertible Unsecured Loan Stock,
4% expires 5/22/99 ...................................... MAL 522,500 314,254 0.1
CONSTRUCTION
New World Infrastructure Ltd.-/- .......................... HK 3,163 6,742 --
INDUSTRIAL COMPONENTS
------------
62,939,340
------------
Materials/Basic Industry (8.7%)
Western Mining Corporation Holdings Ltd. .................. AUSL 1,700,000 12,154,305 2.1
METALS - NON-FERROUS
Hicom Holdings Bhd. ....................................... MAL 3,625,000 10,319,767 1.8
MISC. MATERIALS & COMMODITIES
Broken Hill Proprietary Co., Ltd. ......................... AUSL 658,893 9,095,498 1.6
MISC. MATERIALS & COMMODITIES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Perusahaan Sadur Timah Malaysia ............................. MAL 2,000,000 $ 8,821,171 1.5
METALS - NON-FERROUS
Cosco Pacific Ltd. ........................................ HK 11,048,000 7,921,504 1.4
PAPER/PACKAGING
Oriental Press Group ...................................... HK 1,280,000 686,261 0.1
PAPER/PACKAGING
Pohang Iron & Steel Co., Ltd. ............................. KOR 8,500 685,518 0.1
METALS - STEEL
PT Semen Cibinong - Foreign ............................... INDO 200,000 429,738 0.1
CEMENT
------------
50,113,762
------------
Services (6.6%)
China Hong Kong Photo Products Holdings, Ltd. ............. HK 20,700,000 11,833,538 2.1
WHOLESALE & INTERNATIONAL TRADE
News Corp., Ltd. .......................................... AUSL 948,933 5,375,398 0.9
BROADCASTING & PUBLISHING
Technology Resources Industries Bhd.-/- ................... MAL 1,267,000 4,419,767 0.8
WIRELESS COMMUNICATIONS
PT Telekomunikasi Indonesia - Foreign ..................... INDO 2,483,500 3,762,070 0.7
TELECOM - OTHER
Hong Kong & Shanghai Hotels ............................... HK 2,000,000 3,410,632 0.6
LEISURE & TOURISM
Television Broadcasts Ltd. ................................ HK 750,000 2,814,741 0.5
BROADCASTING & PUBLISHING
Telecom Corporation of New Zealand Ltd. ................... NZ 484,000 2,036,494 0.4
TELEPHONE NETWORKS
Advanced Info. Service - Foreign .......................... THAI 126,900 1,990,000 0.3
WIRELESS COMMUNICATIONS
Matichon Newspaper Group - Foreign ........................ THAI 154,800 1,195,461 0.2
BROADCASTING & PUBLISHING
I.C.C. International Public Co., Ltd. - Foreign ........... THAI 60,059 515,873 0.1
WHOLESALE & INTERNATIONAL TRADE
------------
37,353,974
------------
Consumer Durables (5.5%)
Perusahaan Otomobil Nasional Bhd. ......................... MAL 4,632,000 25,258,701 4.4
AUTOMOBILES
Edaran Otomobil Nasional Bhd. ............................. MAL 575,000 5,510,225 1.0
AUTOMOBILES
Samsung Electronics Co.: .................................. KOR -- -- 0.1
CONSUMER ELECTRONICS
New-/- .................................................. -- 10,204 811,521 --
Common-/- ............................................... -- 1,430 120,078 --
------------
31,700,525
------------
Energy (4.2%)
Petronas Gas Bhd. ......................................... MAL 2,177,000 9,339,976 1.6
OIL
Belle Corp.-/- ............................................ PHIL 26,500,000 6,384,321 1.1
OIL
Electricity Generating Public Co., Ltd. - Foreign-/- ...... THAI 1,219,350 4,251,871 0.7
ELECTRICAL & GAS UTILITIES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (Continued)
Oil Search Ltd.-/- .......................................... AUSL 3,987,000 $ 3,978,229 0.7
OIL
Yukong Ltd. ............................................... KOR 17,929 526,153 0.1
OIL
Tenaga Nasional Bhd. ...................................... MAL 49,000 206,295 --
ELECTRICAL & GAS UTILITIES
------------
24,686,845
------------
Consumer Non-Durables (2.9%)
R.J. Reynolds Bhd. ........................................ MAL 2,930,000 8,634,924 1.5
TOBACCO
Magnum Corp., Bhd. ........................................ MAL 3,535,000 5,981,435 1.0
RECREATION
PT Indofood Sukses Makmur ................................. INDO 500,000 2,256,124 0.4
FOOD
------------
16,872,483
------------ -----
TOTAL EQUITY INVESTMENTS (cost $463,282,441) ................ 524,841,555 91.1
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
RIGHTS COUNTRY RIGHTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Bank of Ayudhya Ltd. Rights, expire 7/5/96-/- ............. THAI 342,900 1,013,298 0.2
BANKS-REGIONAL
Overseas-Chinese Banking Corp., Ltd. Rights, expire
8/23/96-/- ............................................... SING 5,000 40,057 --
BANKS-REGIONAL
------------ -----
TOTAL RIGHTS (cost $0) ...................................... 1,053,355 0.2
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Hicom Holdings Bhd. Warrants, expire 12/18/00-/- .......... MAL 750,000 902,165 0.2
MISC. MATERIALS & COMMODITIES
Hysan Development Co., Ltd. Warrants, expire 4/30/98-/- ... HK 200,950 106,440 --
REAL ESTATE
Hang Lung Development Co. Warrants, expire 10/31/97-/- .... HK 36,500 8,629 --
REAL ESTATE
------------ -----
TOTAL WARRANTS (cost $357,315) .............................. 1,017,234 0.2
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
REPURCHASE AGREEMENT VALUE ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 28, 1996, with State Street Bank & Trust Co.,
due July 1, 1996, for an effective yield of 5.2%,
collateralized by $22,435,000 U.S. Treasury Bills, 7.37%
due 8/22/96 (market value of collateral is $22,455,629,
including accrued interest). (cost $21,773,431) .......... $ 21,773,431 3.8
------------ -----
TOTAL INVESTMENTS (cost $485,413,187) * ..................... 548,685,575 95.3
Other Assets and Liabilities ................................ 27,213,603 4.7
------------ -----
NET ASSETS .................................................. $575,899,178 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $486,172,284 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 69,741,811
Unrealized depreciation: (7,228,520)
-------------
Net unrealized appreciation: $ 62,513,291
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1996, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 6.1 6.1
Hong Kong (HK/HKD) ................... 38.4 38.4
Indonesia (INDO/IDR) ................. 1.4 1.4
Korea (KOR/KRW) ...................... 0.3 0.3
Malaysia (MAL/MYR) ................... 29.1 0.2 29.3
New Zealand (NZ/NZD) ................. 0.4 0.4
Philippines (PHIL/PHP) ............... 9.7 9.7
Singapore (SING/SGD) ................. 1.2 1.2
Thailand (THAI/THB) .................. 4.5 0.2 4.7
United States & Other (US/USD) ....... 8.5 8.5
------ --- --- -----
Total ............................... 91.1 0.4 8.5 100.0
------ --- --- -----
------ --- --- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $575,899,178.
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $485,413,187) (Note 1)........................... $ 548,685,575
U.S. currency................................................................. $10,121,297 --
Foreign currencies (cost $5,366,412).......................................... 5,365,757 15,487,054
-----------
Receivable for Fund shares sold............................................................ 26,054,820
Receivable for securities sold............................................................. 10,691,156
Dividends and dividend withholding tax reclaims receivable................................. 333,262
Miscellaneous receivable................................................................... 1,135
Cash held as collateral for securities loaned (Note 1)..................................... 21,886,096
-------------
Total assets............................................................................. 623,139,098
-------------
Liabilities:
Payable for Fund shares repurchased........................................................ 14,295,600
Payable for securities purchased........................................................... 9,984,015
Payable for investment management and administration fees (Note 2)......................... 437,757
Payable for service and distribution expenses (Note 2)..................................... 237,451
Payable for transfer agent fees (Note 2)................................................... 157,714
Payable for printing and postage expenses.................................................. 140,918
Payable for custodian fees (Note 1)........................................................ 41,229
Payable for registration and filing fees................................................... 24,172
Payable for professional fees.............................................................. 12,679
Payable for fund accounting fees (Note 2).................................................. 10,736
Payable for Trustees' fees and expenses (Note 2)........................................... 9,438
Other accrued expenses..................................................................... 2,115
Collateral for securities loaned (Note 1).................................................. 21,886,096
-------------
Total liabilities........................................................................ 47,239,920
-------------
Net assets................................................................................... $ 575,899,178
-------------
-------------
Class A:
Net asset value and redemption price per share ($418,926,315 DIVIDED BY 31,266,278 shares
outstanding)................................................................................ $ 13.40
-------------
-------------
Maximum offering price per share (100/95.25 of $13.40) *..................................... $ 14.07
-------------
-------------
Class B:+
Net asset value and offering price per share ($154,227,410 DIVIDED BY 11,722,405 shares
outstanding)................................................................................ $ 13.16
-------------
-------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($2,745,453 DIVIDED
BY 204,413 shares outstanding).............................................................. $ 13.43
-------------
-------------
Net assets consist of:
Paid in capital (Note 4)................................................................... $ 463,248,315
Undistributed net investment income........................................................ 982,125
Accumulated net realized gain on investments and foreign currency transactions............. 48,395,006
Net unrealized appreciation on translation of assets and liabilities in foreign
currencies................................................................................ 1,344
Net unrealized appreciation of investments................................................. 63,272,388
-------------
Total -- representing net assets applicable to capital shares outstanding.................... $ 575,899,178
-------------
-------------
<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.
F6
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
STATEMENT OF OPERATIONS
Six months ended June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $269,591)............................... $ 5,645,937
Interest income............................................................................ 864,363
------------
Total investment income.................................................................. 6,510,300
------------
Expenses:
Investment management and administration fees (Note 2)..................................... 2,683,761
Service and distribution expenses: (Note 2)
Class A..................................................................... $ 704,183
Class B..................................................................... 739,926 1,444,109
-----------
Transfer agent fees (Note 2)............................................................... 890,700
Custodian fees (Note 1).................................................................... 371,020
Registration and filing fees............................................................... 191,540
Printing and postage expenses.............................................................. 149,240
Fund accounting fees (Note 2).............................................................. 68,807
Audit fees................................................................................. 29,848
Legal fees................................................................................. 5,824
Trustees' fees and expenses (Note 2)....................................................... 4,914
Other expenses............................................................................. 9,015
------------
Total expenses before reductions......................................................... 5,848,778
------------
Expense reductions (Notes 1 & 5)....................................................... (320,603)
------------
Total net expenses....................................................................... 5,528,175
------------
Net investment income........................................................................ 982,125
------------
Net realized and unrealized gain on investments and foreign currencies: (Note 1)
Net realized gain on investments.............................................. 49,939,661
Net realized loss on foreign currency transactions............................ (283,457)
-----------
Net realized gain during the period...................................................... 49,656,204
Net change in unrealized appreciation on translation of assets and liabilities
in foreign currencies........................................................ (2,356)
Net change in unrealized appreciation of investments.......................... 5,926,462
-----------
Net unrealized appreciation during the period............................................ 5,924,106
------------
Net realized and unrealized gain on investments and foreign currencies....................... 55,580,310
------------
Net increase in net assets resulting from operations......................................... $ 56,562,435
------------
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
---------------- -------------------
<S> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income......................................................... $ 982,125 $ 4,037,605
Net realized gain on investments and foreign currency transactions............ 49,656,204 17,716,911
Net change in unrealized appreciation (depreciation) on translation of assets
and liabilities in foreign currencies........................................ (2,356) 6,315
Net change in unrealized appreciation of investments.......................... 5,926,462 36,706,715
---------------- -------------------
Net increase in net assets resulting from operations........................ 56,562,435 58,467,546
---------------- -------------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income.................................................... -- (2,982,780)
From net realized gain on investments......................................... -- (13,196,301)
Class B:
Distributions to shareholders: (Note 1)
From net investment income.................................................... -- (228,209)
From net realized gain on investments......................................... -- (4,263,749)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income.................................................... -- (11,427)
From net realized gain on investments......................................... -- (35,360)
---------------- -------------------
Total distributions......................................................... -- (20,717,826)
---------------- -------------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.............................. 2,748,230,894 3,442,682,160
Decrease from capital shares repurchased...................................... (2,744,438,537) (3,489,738,455)
---------------- -------------------
Net increase (decrease) from capital share transactions..................... 3,792,357 (47,056,295)
---------------- -------------------
Total increase (decrease) in net assets......................................... 60,354,792 (9,306,575)
Net assets:
Beginning of period........................................................... 515,544,386 524,850,961
---------------- -------------------
End of period*................................................................ $ 575,899,178 $ 515,544,386
---------------- -------------------
---------------- -------------------
*Includes undistributed net investment income of.............................. $ 982,125 $ 0
---------------- -------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, 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 30, YEAR ENDED DECEMBER 31,
1996 ----------------------------------------------------------
(UNAUDITED) (D) 1995 (D) 1994 1993 1992 1991
------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.47 $ 12.10 $ 15.86 $ 10.31 $ 11.30 $ 10.57
------------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss).......... 0.03 0.11 0.02 (0.03) 0.07 0.11
Net realized and unrealized gain
(loss) on investments................ 0.90 0.79 (3.15) 6.23 (0.97) 1.25
------------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) from
investment operations.............. 0.93 0.90 (3.13) 6.20 (0.90) 1.36
------------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income............ -- (0.10) (0.01) -- (0.06) (0.08)
From net realized gain on
investments.......................... -- (0.43) (0.55) (0.65) (0.03) (0.55)
In excess of net investment income.... -- -- -- -- -- --
In excess of net realized gain on
investments.......................... -- -- (0.07) -- -- --
------------- ---------- ---------- ---------- ---------- ----------
Total distributions................. -- (0.53) (0.63) (0.65) (0.09) (0.63)
------------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.......... $ 13.40 $ 12.47 $ 12.10 $ 15.86 $ 10.31 $ 11.30
------------- ---------- ---------- ---------- ---------- ----------
------------- ---------- ---------- ---------- ---------- ----------
Total investment return (c)............. 7.46%(a) 7.45% (19.73)% 60.6% (8.0)% 13.1%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 418,926 $ 383,722 $ 404,680 $ 498,898 $ 281,418 $ 333,800
Ratio of net investment income (loss) to
average net assets..................... 0.53%(b) 0.91% 0.11% (0.3)% 0.6% 1.0%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.83%(b) 1.89% 1.81% 1.9% 2.0% 2.0%
Without expense reductions............ 1.95%(b) 1.94% -- -- -- --
Portfolio turnover rate++++............. 108%(b) 63% 87% 117% 72% 85%
Average commission rate paid on
portfolio transactions++++............. $ 0.0115 N/A N/A N/A N/A N/A
</TABLE>
- ----------------
+ 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 rate and average commission rate are 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.
(d) Calculated based upon weighted average share outstanding during the
period.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++ ADVISOR CLASS+++
----------------------------------------------------- -----------------------------
SIX MONTHS APRIL 1, SIX MONTHS
ENDED YEAR ENDED 1993 ENDED JUNE 1, 1995
JUNE 30, DECEMBER 31, TO JUNE 30, TO
1996 --------------------- DECEMBER 31, 1996 DECEMBER 31,
(UNAUDITED) (D) 1995 (D) 1994 1993 (UNAUDITED) (D) 1995 (D)
-------------- --------- --------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.29 $ 11.96 $ 15.79 $ 11.27 $ 12.45 $ 12.89
-------------- --------- --------- ------------ -------------- ------------
Income from investment operations:
Net investment income (loss).......... (0.01) 0.03 (0.06) (0.10) 0.05 0.09
Net realized and unrealized gain
(loss) on investments................ 0.88 0.75 (3.15) 5.27 0.93 0.05
-------------- --------- --------- ------------ -------------- ------------
Net increase (decrease) from
investment operations.............. 0.87 0.78 (3.21) 5.17 0.98 0.14
-------------- --------- --------- ------------ -------------- ------------
Distributions to shareholders:
From net investment income............ -- (0.02) -- -- -- (0.15)
From net realized gain on
investments.......................... -- (0.43) (0.55) (0.65) -- (0.43)
In excess of net investment income.... -- -- -- -- -- --
In excess of net realized gain on
investments.......................... -- -- (0.07) -- -- --
-------------- --------- --------- ------------ -------------- ------------
Total distributions................. -- (0.45) (0.62) (0.65) -- (0.58)
-------------- --------- --------- ------------ -------------- ------------
Net asset value, end of period.......... $ 13.16 $ 12.29 $ 11.96 $ 15.79 $ 13.43 $ 12.45
-------------- --------- --------- ------------ -------------- ------------
-------------- --------- --------- ------------ -------------- ------------
Total investment return (c)............. 7.08% (a) 6.54% (20.3)% 46.3% (a) 7.87% (a) 1.07% (a)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $154,227 $130,887 $120,171 $72,122 $ 2,745 $ 935
Ratio of net investment income (loss) to
average net assets..................... (0.12)% (b) 0.26% (0.54)% (0.9)% (b) 0.88% (b) 1.26% (b)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.48% (b) 2.54% 2.46% 2.5% (b) 1.48% (b) 1.54% (b)
Without expense reductions............ 2.60% (b) 2.59% -- -- 1.60% (b) 1.59% (b)
Portfolio turnover rate++++............. 108% (b) 63% 87% 117% 108% (b) 63%
Average commission rate paid on
portfolio transactions++++............. $ 0.0115 N/A N/A N/A $0.0115 N/A
</TABLE>
- ----------------
+ 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 rate and average commission rate are 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.
(d) Calculated based upon weighted average share outstanding during the
period.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global New Pacific Growth Fund ("Fund") is a separate series of GT 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 eight 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. 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 expenses, and may differ
in its 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 and the
financial statements may include certain estimates made by management.
(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 LGT Asset Management, Inc. ("LGT") 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 LGT
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 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. LGT 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
F11
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
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, unless a quotation from only one
broker is available, in which case only that broker's price will be used. 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 in 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 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, 1996, stocks with an aggregate value of approximately $20,428,446
were on loan to brokers. The loans were secured by cash collateral of
$21,886,096, 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, 1996,
the Fund received securities lending fees of $98,693 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.
F12
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
(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
LGT 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.
GT Global, Inc., an affiliate of LGT, 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. GT 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, 1996, GT Global retained $81,209
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. GT Global collected such CDSCs in
the amount of $8,954 for the period ended June 30, 1996. GT 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, GT 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, 1996, GT Global collected CDSCs in the
amount of $287,344. In addition, GT 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 GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, the Fund may pay GT 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 GT 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 GT 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 GT 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 GT 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.
LGT and GT 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 LGT of investment
management and administration fees, waivers by GT Global of payments under the
Class A Plan and/or Class B Plan and/or reimbursements by LGT or GT Global of
portions of the Fund's other operating expenses.
F13
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
GT Global Investor Services, Inc. ("GT Services"), an affiliate of LGT and GT
Global, is the transfer agent of the Fund. For performing shareholder servicing,
reporting, and general transfer agent services, GT Services receives an annual
maintenance fee of $17.50 per account, a new account fee of $4.00 per account, a
per transaction fee of $1.75 for all transactions other than exchanges and a per
exchange fee of $2.25. GT Services also is reimbursed by the Fund for its
out-of-pocket expenses for such items as postage, forms, telephone charges,
stationery and office supplies.
LGT is the pricing and accounting agent for the Fund. The monthly fee for these
services to LGT is a percentage, not to exceed 0.03% annually, of the Fund's
average daily net assets. The annual fee rate is derived by applying 0.03% of
the first $5 billion of assets of all registered mutual funds advised by LGT and
0.02% to the assets in excess of $5 billion and allocating the result according
to the Fund's average daily net assets.
The Company pays each of its Trustees who is not an employee, officer or
director of LGT, GT Global or GT 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, 1996, purchases and sales of investment securities
by the Fund, other than U.S. government obligations and short-term investments,
aggregated $318,327,883 and $279,559,582, respectively. There were no purchases
or sales of U.S. government obligations during the period.
4. CAPITAL SHARES
At June 30, 1996, 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, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
-------------------------- --------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold................................................. 157,150,822 $2,076,080,810 213,508,812 $2,634,346,068
Shares issued in connection with reinvestment of
distributions............................................. -- -- 1,069,849 13,241,922
----------- ------------- ----------- -------------
157,150,822 2,076,080,810 214,578,661 2,647,587,990
Shares repurchased.......................................... (156,660,910) (2,083,505,574) (217,241,112) (2,697,556,175)
----------- ------------- ----------- -------------
Net increase (decrease)..................................... 489,912 $ (7,424,764) (2,662,451) $ (49,968,185)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
SIX MONTHS ENDED
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
-------------------------- --------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------- ----------- -------------
Shares sold................................................. 50,601,230 $ 657,374,466 64,930,186 $ 788,928,928
Shares issued in connection with reinvestment of
distributions............................................. -- -- 307,922 3,759,320
----------- ------------- ----------- -------------
50,601,230 657,374,466 65,238,108 792,688,248
Shares repurchased.......................................... (49,527,590) (647,812,205) (64,636,995) (790,755,338)
----------- ------------- ----------- -------------
Net increase................................................ 1,073,640 $ 9,562,261 601,113 $ 1,932,910
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
JUNE 1, 1995
SIX MONTHS ENDED (COMMENCEMENT OF SALE OF
JUNE 30, 1996 SHARES) TO DECEMBER 31,
(UNAUDITED) 1995
-------------------------- --------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------- ----------- -------------
Shares sold................................................. 1,113,103 $ 14,775,618 184,375 $ 2,360,516
Shares issued in connection with reinvestment of
distributions............................................. -- -- 3,674 45,406
----------- ------------- ----------- -------------
1,113,103 14,775,618 188,049 2,405,922
Shares repurchased.......................................... (983,837) (13,120,758) (112,902) (1,426,942)
----------- ------------- ----------- -------------
Net increase................................................ 129,266 $ 1,654,860 75,147 $ 978,980
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
5. EXPENSE REDUCTIONS
LGT has directed certain portfolio trades to brokers who paid a portion of the
Fund's expenses. For the period ended June 30, 1996, the Fund's expenses were
reduced by $221,910 under these arrangements.
F14
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
GT GLOBAL MUTUAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL GT 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
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture, or sell
telecommunications services or equipment
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve, or maintain a country's infrastructure
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore, or develop natural resources
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA VALUE FUND
Concentrates on large cap equity securities of U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
[LOGO]
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
GT GLOBAL NEW PACIFIC GROWTH FUND
NEWSR60881M
