<PAGE>
LGT ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
INTERNATIONAL
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 INTERNATIONAL GROWTH FUND
PERFORMANCE SUMMARY
INVESTMENT OBJECTIVE
The GT Global International Growth Fund seeks long-term growth of capital by
investing in equity securities of companies located outside the U.S.
GT Global International Growth Fund A
MSCI-EAFE Index
GT Global International Growth Fund A MSCI-EAFE Index
July 19, 1985 9525 10000
9535 9904
9449 10225
9849 10827
10506 11567
11144 12045
11878 12619
12163 12939
12954 14376
14168 16402
15310 17480
14893 16707
16006 17850
17407 18955
18400 20828
17923 20619
16423 19247
17645 20360
18251 21445
18728 23727
19473 24443
20356 26452
21427 29255
21900 29261
22148 28334
23579 28289
24433 30416
25185 29943
18256 25753
17774 26013
19379 26791
19786 27276
20431 29101
21313 30896
21833 31350
21403 30352
21268 29559
21460 30492
20747 28515
21268 29767
22330 32321
22930 34253
23138 34450
24311 35063
24686 35250
25176 34565
26167 34893
25882 33000
25745 32452
27545 36534
28626 34898
29788 36494
28455 35035
29685 36803
32060 38170
31540 36758
30674 34200
31090 30644
30258 30409
31818 33888
32476 33598
33585 34080
30362 30779
27208 26499
28802 30636
27970 28838
July 31, 1990 27474 29316
28071 30273
29863 33527
30390 31522
30495 31841
31584 32183
30390 29826
31514 31300
30741 30672
31408 32410
31549 32877
30073 31351
31104 32980
31176 32285
31709 31138
30677 29091
31532 29237
33560 31203
32386 29733
30998 28982
30713 30810
29218 30211
29147 28635
29325 28914
29290 29072
29076 29077
29504 29964
31002 32585
32501 35686
32965 36448
32501 35888
33714 37153
35676 39167
35533 38294
36996 39482
35355 36039
39315 38650
41741 41926
40242 41818
37317 40026
37852 41733
37602 41502
37317 42098
38494 42512
40421 43528
38815 42167
39029 43581
37353 41496
36256 41765
33488 40171
32579 40066
32658 42576
33646 44189
33567 43673
33962 42919
36453 45603
36611 43874
37086 44742
36453 43551
36335 44774
37661 46590
38324 46792
38366 46962
38988 47971
39818 49378
39361 48481
June 30, 1996 39693 48766
The chart above shows the performance of the GT Global International Growth
Fund, Class A shares, since the Fund's inception versus the MSCI-EAFE 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 296.93% and an average annual
total return of 13.42% 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 $13,715 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 $12,344. 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) 16.87 5.49 9.51 13.92 11.32 4.47 8.98 13.42
Class B(3) 16.17 N/A N/A 7.05 11.17 N/A N/A 6.25
Advisor Class(4) 17.84 N/A N/A 19.23 N/A N/A N/A N/A
HISTORICAL PERFORMANCE(2)
ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A 24.70(3) 53.66 6.18 19.39 38.56 -14.31 13.22 -5.83 34.23 -7.78 3.88
Class B N/A N/A N/A N/A N/A N/A N/A N/A 25.63(3) -8.36 3.15
</TABLE>
(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 July 19, 1985; 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 CHIEF INVESTMENT OFFICER CHRISTIAN WIGNALL
Q HOW DID THE FUND PERFORM?
A The Fund's Class A shares returned a total of 5.40% (.39% including the
effect of the maximum 4.75% sales charge) over the six months to June 30,
1996, outperforming the Morgan Stanley Capital International Europe, Australia,
Far East (MSCI-EAFE) Index,(5) which returned 4.67%. Total return for Class B
shares was 5.05% (.05% including the effect of the maximum 5% contingent
deferred sales charge). The Fund's one-year total return was significantly
higher at 16.87% (excluding sales charge).
Q WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE RELATIVE TO THE INDEX
OVER THE SIX MONTHS?
A In general, the Fund benefited from its country selection relative to the
index, particularly in Europe, where the Fund was slightly overweighted
during the period.
The Fund's currency hedge also contributed positively to performance. The
Fund held a short position in yen which meant that as the value of the yen
fell over the period, the Fund was able to protect the value of its assets.
Q WHICH COMPANIES HAVE DONE PARTICULARLY WELL?
A Several companies stand out. For example, Assa Abloy, the Swedish locks
maker, has grown extremely fast and was the top performer of the period.
Benefiting from a favorable exchange rate, it returned 70%. Another company,
Cardif, the French insurance company, was a play on increasing demand for
private insurance given the growing suspicion of the reliability of the
social security blanket provided by the government. Also, Carrefour, the
French hypermarket operator (large supermarkets), enjoyed solid returns. The
company has been expanding into fast-developing markets such as Spain, Brazil
and Taiwan and we feel it provides a good play on emerging markets without
too much exposure to risk.
Q WHICH INVESTMENTS PROVED DISAPPOINTING OVER THE PERIOD?
A Kierkert, a German car lock manufacturer, did not fare as well as Assa
Abloy, as a result of intense competition in the automobile components
supplier industry. In New Zealand, The Warehouse appeared to be an undervalued
growth retailer, but the cyclical downturn in the New Zealand economy has hurt
them. In addition, many Korean companies, like Samsung, experienced dramatic
changes in earnings expectations as exports slowed sharply. Many suffered as
a result of their heavy exposure to the electronics industry and
semiconductors, which have been experiencing difficulties.
Q WHAT CHANGES DID YOU MAKE IN YOUR INVESTMENT STRATEGY OVER THE PAST SIX
MONTHS?
A We reduced the Fund's exposure to several of the Asian markets, and Thailand
in particular in light of deteriorating prospects for profit growth. The
reduction has been used mainly to fund an increase in European weightings. Of
all the major regional blocks in the world, we're most positive about Europe,
leading to our overweighted position within the Fund. In the UK and
continental Europe combined, we had over 50% invested at the end of the
period.
Q WHAT IS YOUR OUTLOOK ON JAPAN? WHAT TYPES OF COMPANIES DO YOU FIND
ATTRACTIVE IN THE CURRENT ENVIRONMENT?
A The Japanese market experienced a strong recovery from July 1995 until
February/March of this year, making it an expensive market, in our opinion,
especially with its low dividend yields and high price-to-earnings ratios. We
are also suspicious about the perceived economic recovery. While first quarter
GNP figures were very strong, we don't think they are sustainable. Hence, we
believe some disappointments are likely on the economic front later this year,
particularly in light of the excessive expectations for the economy.
Although we find it increasingly difficult to identify undervalued shares in
a prohibitively valued market, we have identified selective
opportunities--companies we believe are superior to the average, but sell at
valuations that do not acknowledge the difference. For example, we have been
investing in companies found in four broad categories: niche growth,
deregulation, structural change and international growth.
Within niche growth, companies like Takeda are attractive. Deregulation would
include DDI (Japan's second largest provider of cellular services). Fast
Retailing, a company which we expect to do well over the longer term despite
its poor performance over the last several months, would be an example of a
company benefiting from structural change in the retail industry. Finally,
while we have reduced our exposure to companies in the fourth category,
international growth (multinationals based in Japan that are benefitting from
worldwide growth), we intend to retain our current holdings as we believe
these types of companies will do well over the longer term. So, despite the
currently overvalued environment, we are focusing on stocks that we believe
represent good value and positive long-term changes in Japan.
Q WHAT IS THE FUND'S POSITION IN LATIN AMERICA?
A While many of the stock markets in this region have responded favorably
to the austerity measures implemented by governments following the Mexican
peso crisis, the Fund holds
2
* * *
<PAGE>
very little in Latin America. Nonetheless, we are open minded, and if markets
were to fall, we might take advantage of that opportunity to increase our
position.
Q WHERE DO YOU EXPECT TO FIND OPPORTUNITIES OVER THE REMAINDER OF THE YEAR?
A We believe the current environment provides a good entry point into
Europe. Liquidity is favorable, interest rates are very low and money supply
growth is rapid in Germany, suggesting a recovery in the business cycle is
perhaps not far off. Moreover, there is a growing emphasis by European
companies to focus on shareholder value. Across Europe in general, we see a
catalyst for change in the increasing influence of the institutional investor
within the shareholder structure. As a result of an aging population, pension
funds are becoming much more important. These investors are proactive and
powerful. Consequently, companies are becoming increasingly sensitive to the
requirements of raising capital and doing it cost efficiently, and we expect
the change in pension fund relations will encourage demand for equities.
DRIVERS OF CORPORATE RESTRUCTURING
INCREASING GLOBAL COMPETITION IN PRODUCT MARKETS AND
CAPITAL MARKETS
INSTITUTIONAL SHAREHOLDER PRESSURE ON COMPANIES TO ACHIEVE
GREATER CORPORATE TRANSPARENCY AND ACCOUNTABILITY
/ / Share buybacks
/ / Decrease in cross-shareholdings*
/ / Increase in dividend payouts
/ / Internal ROE targets
/ / De-mergers
*Holdings among group companies
We would also characterize the Pacific region as a place to watch. In Hong
Kong, in particular, our outlook 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. As China continues to spend on
infrastructure development, Hong Kong companies could continue to benefit.
Also, to its favor, Hong Kong is less exposed to the downturn in electronics.
So, cyclically we think it's a good place to be.
Q COULD YOU DESCRIBE YOUR INVESTMENT PROCESS?
A We determine country allocations based on the careful assessment of political
and economic factors and the prospects for profits growth and interest rate
trends. For this information, we use the input of our unique team of in-house
macroeconomists. After country allocations have been decided, stock selection
is conducted by our local team of experts who are looking for undiscounted
positive change in earnings.
ABOUT THE PORTFOLIO MANAGER
CHRISTIAN WIGNALL - Chairman, Global Investment Policy Committee for LGT Asset
Management since 1991; Chief Investment Officer, Global Equities since 1987;
Established Tokyo office: Managing Director 1982-87. Hong Kong office: Portfolio
Manager, Japan 1980-82, Portfolio Manager, Fixed Income 1979-80, Economist, Far
East 1977-79. Mr. Wignall received his M.A. from Cambridge University.
(5) The MSCI-EAFE Index is an arithmetic average, weighted by market value, of
the performance of 1,110 securities listed on 20 major world stock exchanges
It includes the effect of reinvested dividends and is measured in U.S.
dollars. The index is not available for investment and does not include the
effects of sales charges and professional management fees.
GEOGRAPHIC ALLOCATION OF NET ASSETS(6)
JUNE 30, 1996 JUNE 30, 1995
Australia 2.4% 4.4%
Belgium - -
Finland 0.9 2.2
France 7.6 5.8
Germany 6.1 2.3
Hong Kong 2.4 1.5
India - 1.1
Indonesia 0.9 1.4
Italy 2.3 1.1
Japan 24.5 28.0
Korea 1.5 3.2
Malaysia - 0.5
Mexico 1.2 1.0
Netherlands 6.6 7.2
New Zealand 0.9 -
Norway 0.8 -
Philippines - 1.9
Portugal 1.0 -
Singapore 2.7 1.1
South Africa 1.9 3.4
Spain 3.6 3.0
Sweden 2.1 3.2
Switzerland 8.0 5.5
Thailand 1.1 5.4
UK 14.0 17.4
U.S., Short Term & Other 7.5 -1.2
Venezuela - 0.6
3
* * *
<PAGE>
ALLOCATION OF NET ASSETS(6)
June 30, 1996
Services 28.2%
Finance 15.5
Health Care 9.1
Materials/Basic Industry 7.6
Technology 6.9
Consumer Non-durables 6.9
Energy 5.8
Capital Goods 4.6
Consumer Durables 4.6
Multi-Industry/Misc. 4.0
Short Term & Other 6.8
GT GLOBAL INTERNATIONAL GROWTH FUND
KEY PORTFOLIO HOLDINGS(7)
<TABLE>
<CAPTION>
% of
Country Net Assets
<S> <C> <C>
DAINI DENDEN INC. (DDI) CORP. Japan's second-largest JAPAN 2.9
provider of cellular phone services, DDI has benefited
from the liberalization of domestic cellular services and
cellular hand set sales. The company also has more than 10%
of the domestic long-distance market.
AMWAY JAPAN LTD. A door-to-door marketer of detergents, JAPAN 2.8
cosmetics, kitchenware and related products.
TAKEDA CHEMICAL INDUSTRIES A top pharmaceutical JAPAN 2.3
manufacturer, mostly recognized for their vitamin tablet
Alinamin and a leader in antibiotics since 1965. Also
front runner in overseas operations in U.S. and other
countries, with its Central Research Lab as an operations
base.
SANDOZ AG A premier pharmaceutical company based in SWITZERLAND 2.2
Switzerland with leading products in the areas of the
central nervous system, oncology,
transplantation/immunology and dermatology. Sandoz
currently has a number of drugs in clinical trials.
AOYAMA TRADING CO., LTD. Aoyama Trading is the largest JAPAN 2.1
suburban discount chain store in Japan, specializing
in men's discount suits. The company is developing a
casual wear line to complement its business clothing
sales. Generally, Aoyama sells lesser-known brand-name
items.
SEVEN-ELEVEN JAPAN LTD. Japan's largest convenience JAPAN 1.9
store operator, Seven-Eleven belongs to the Ito-Yokado
group. Seven-Eleven Japan also owns Southland Corp.,
the operator of Seven-Eleven franchises in the U.S.
ITO-YOKADO CO., LTD. Ito Yokado operates one of the JAPAN 1.9
best managed supermarket chains in Japan. Despite a
sluggish retail environment, Ito Yokado has managed
to grow sales and profits through competitive pricing,
a strong merchandising strategy, sound inventory and
cost control.
S.M.H. - BEARER A leading manufacturer of watches, watch SWITZERLAND 1.7
components, microelectronics and machine tools for
scientific and industrial use. The company produces and
sells products globally.
SHARP CORP. A leading maker of consumer electronics and JAPAN 1.6
OA equipment. The company has also branched out into
telecommunications.
MATSUSHITA-KOTOBUKI ELECTRONICS LTD. Matsushita-Kotobuki JAPAN 1.6
produces parts for the PC industry, including disk drives
and CD-ROMs.
</TABLE>
(6) Allocations will change based on current market conditions.
(7) There is no assurance the Fund will continue to hold these or
any other securities mentioned in this report.
4
* * *
<PAGE>
GT GLOBAL
INTERNATIONAL
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL INTERNATIONAL 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>
Services (28.2%)
DDI Corp. ................................................. JPN 1,100 $ 9,622,980 2.9
WIRELESS COMMUNICATIONS
Aoyama Trading Co., Ltd. .................................. JPN 256,800 6,744,290 2.1
RETAILERS-APPAREL
Seven-Eleven Japan Ltd. ................................... JPN 95,500 6,108,574 1.9
RETAILERS-OTHER
Ito-Yokado Co., Ltd. ...................................... JPN 100,000 6,048,682 1.9
RETAILERS-OTHER
Wolters Kluwer CVA ........................................ NETH 40,910 4,652,463 1.4
BROADCASTING & PUBLISHING
Elsevier N.V. ............................................. NETH 299,183 4,544,774 1.4
BROADCASTING & PUBLISHING
Reuters Holdings PLC ...................................... UK 331,700 4,011,711 1.2
BROADCASTING & PUBLISHING
Portugal Telecom S.A. - Registered-/- ..................... PORT 128,250 3,356,312 1.0
TELEPHONE NETWORKS
Burton Group PLC .......................................... UK 1,370,000 3,296,848 1.0
RETAILERS-APPAREL
Compass Group PLC ......................................... UK 352,000 3,199,752 1.0
RESTAURANTS
Telefonica de Espana ...................................... SPN 172,200 3,175,930 1.0
TELEPHONE NETWORKS
Adia S.A. - Bearer ........................................ SWTZ 12,500 3,138,996 1.0
CONSUMER SERVICES
EMAP PLC .................................................. UK 284,430 3,126,478 1.0
BROADCASTING & PUBLISHING
Carrefour Supermarche ..................................... FR 5,490 3,080,381 0.9
RETAILERS-FOOD
Hagemeyer N.V. ............................................ NETH 40,218 2,868,334 0.9
WHOLESALE & INTERNATIONAL TRADE
Telecom Italia Mobile S.p.A. .............................. ITLY 1,274,180 2,857,958 0.9
WIRELESS COMMUNICATIONS
Comptoirs Modernes ........................................ FR 6,210 2,805,374 0.9
RETAILERS-FOOD
Fast Retailing Co., Ltd. .................................. JPN 65,400 2,746,944 0.8
RETAILERS-APPAREL
Koninklijke Ahold N.V. .................................... NETH 44,295 2,403,101 0.7
RETAILERS-FOOD
Dixons Group PLC .......................................... UK 250,000 2,045,490 0.6
RETAILERS-APPAREL
British Airport Authority PLC ............................. UK 260,070 1,883,600 0.6
TRANSPORTATION - AIRLINES
Telecom Corporation of New Zealand Ltd. ................... NZ 440,000 1,851,358 0.6
TELEPHONE NETWORKS
Storehouse PLC ............................................ UK 327,000 1,620,429 0.5
RETAILERS-OTHER
Cordiant PLC .............................................. UK 858,460 1,466,086 0.4
BROADCASTING & PUBLISHING
ASSA Abloy AB "B" ......................................... SWDN 89,530 1,298,536 0.4
BUSINESS & PUBLIC SERVICES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Granada Group PLC ........................................... UK 86,250 $ 1,153,616 0.4
LEISURE & TOURISM
The Warehouse Group Ltd. .................................. NZ 621,300 1,110,608 0.3
RETAILERS-OTHER
Rentokil Group PLC ........................................ UK 147,800 937,375 0.3
CONSUMER SERVICES
Hotel Properties Ltd.-/- .................................. SING 387,000 685,927 0.2
LEISURE & TOURISM
Securitas AB "B" .......................................... SWDN 4,345 91,247 --
BUSINESS & PUBLIC SERVICES
------------
91,934,154
------------
Finance (15.5%)
Orix Corp. ................................................ JPN 120,000 4,458,272 1.4
OTHER FINANCIAL
United Overseas Bank Ltd. - Foreign ....................... SING 408,300 3,907,870 1.2
BANKS-MONEY CENTER
Banco Intercontinental Espanol ............................ SPN 32,148 3,600,194 1.1
BANKS-MONEY CENTER
AEGON N.V. ................................................ NETH 74,590 3,438,577 1.1
INSURANCE-LIFE
Nichiei Co., Ltd. ......................................... JPN 50,000 3,340,044 1.0
OTHER FINANCIAL
Banco Popular Espanol S.A.-/- ............................. SPN 18,210 3,250,363 1.0
BANKS-MONEY CENTER
UNI Storebrand AS "A"-/- .................................. NOR 591,083 2,660,320 0.8
INSURANCE - MULTI-LINE
Cardif S.A. ............................................... FR 18,549 2,594,695 0.8
INSURANCE - MULTI-LINE
Barclays PLC .............................................. UK 196,000 2,350,722 0.7
BANKS-MONEY CENTER
Sun Hung Kai Properties Ltd. .............................. HK 196,000 1,981,397 0.6
REAL ESTATE
Skandia Forsakrings AB Free ............................... SWDN 69,020 1,830,064 0.6
INSURANCE - MULTI-LINE
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ..... MEX 852,000 1,771,441 0.5
BANKS-MONEY CENTER
Invesco PLC ............................................... UK 475,600 1,709,384 0.5
INVESTMENT MANAGEMENT
Mapfre Vida Seguros ....................................... SPN 29,769 1,675,030 0.5
INSURANCE-LIFE
M & G Group PLC ........................................... UK 92,960 1,659,742 0.5
INVESTMENT MANAGEMENT
Scor S.A. ................................................. FR 42,200 1,646,128 0.5
INSURANCE - MULTI-LINE
Cheung Kong (Holdings) Ltd. ............................... HK 221,000 1,591,725 0.5
REAL ESTATE
3I Group PLC .............................................. UK 222,420 1,522,857 0.5
INVESTMENT MANAGEMENT
HSBC Holdings PLC ......................................... HK 78,000 1,178,994 0.4
BANKS-MONEY CENTER
Thai Farmers Bank Ltd. - Foreign .......................... THAI 101,000 1,106,304 0.3
BANKS-REGIONAL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Bangkok Bank Co., Ltd. - Foreign ............................ THAI 76,000 $ 1,030,102 0.3
BANKS-MONEY CENTER
Land and House Co., Ltd. - Foreign ........................ THAI 77,000 970,843 0.3
REAL ESTATE
Phatra Thanakit Co., Ltd. - Foreign ....................... THAI 97,900 682,754 0.2
INVESTMENT MANAGEMENT
Axa Group: ................................................ FR -- -- 0.2
INSURANCE - MULTI-LINE
Common .................................................. -- 11,193 613,220 --
New-/- .................................................. -- 229 12,112 --
------------
50,583,154
------------
Health Care (9.1%)
Takeda Chemical Industries ................................ JPN 430,000 7,633,602 2.3
PHARMACEUTICALS
Sandoz AG - Registered .................................... SWTZ 6,380 7,301,488 2.2
PHARMACEUTICALS
Bayer AG New .............................................. GER 108,300 3,829,184 1.2
PHARMACEUTICALS
Siemens AG - New .......................................... GER 63,200 3,379,924 1.0
MEDICAL TECHNOLOGY & SUPPLIES
Sanofi S.A. ............................................... FR 44,270 3,322,834 1.0
PHARMACEUTICALS
Roche Holdings AG Genusscheine ............................ SWTZ 405 3,091,591 0.9
PHARMACEUTICALS
M.L. Laboratories PLC-/- .................................. UK 254,968 1,674,452 0.5
PHARMACEUTICALS
------------
30,233,075
------------
Materials/Basic Industry (7.6%)
Broken Hill Proprietary Co., Ltd. ......................... AUSL 347,911 4,802,637 1.5
MISC. MATERIALS & COMMODITIES
Hoechst AG New ............................................ GER 112,300 3,811,788 1.2
CHEMICALS
UPM-Kymmene Oy-/- ......................................... FIN 148,000 3,085,132 0.9
FOREST PRODUCTS
PT Semen Gresik - Foreign ................................. INDO 1,007,000 2,931,854 0.9
CEMENT
Pilkington PLC ............................................ UK 871,900 2,450,146 0.8
BUILDING MATERIALS & COMPONENTS
SGL Carbon AG ............................................. GER 19,840 2,323,063 0.7
METALS - NON-FERROUS
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 118,900 2,164,670 0.7
PAPER/PACKAGING
Western Mining Corporation Holdings Ltd. .................. AUSL 270,000 1,930,390 0.6
METALS - NON-FERROUS
Fletcher Challenge Paper-/- ............................... AUSL 512,000 997,612 0.3
PAPER/PACKAGING
------------
24,497,292
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Technology (6.9%)
S.M.H. AG - Bearer-/- ..................................... SWTZ 8,214 $ 5,715,115 1.7
SEMICONDUCTORS
Matsushita-Kotobuki Electronics Ltd. ...................... JPN 200,000 5,234,261 1.6
COMPUTERS & PERIPHERALS
Kyushu-Matsushita Electric Co., Ltd. ...................... JPN 200,000 3,623,719 1.1
COMPUTERS & PERIPHERALS
Koei Co., Ltd. ............................................ JPN 102,500 3,254,713 1.0
SOFTWARE
Hosiden Electronics ....................................... JPN 300,000 3,129,575 1.0
COMPUTERS & PERIPHERALS
Group Axime-/- ............................................ FR 11,680 1,636,109 0.5
COMPUTERS & PERIPHERALS
------------
22,593,492
------------
Consumer Non-Durables (6.9%)
Amway Japan Ltd. .......................................... JPN 180,000 9,059,297 2.8
HOUSEHOLD PRODUCTS
Gucci Group - NY Registered Shares-/- {\/} ................ ITLY 68,450 4,415,025 1.4
TEXTILES & APPAREL
Heineken N.V. ............................................. NETH 15,720 3,516,486 1.1
BEVERAGES - ALCOHOLIC
B.A.T. Industries PLC ..................................... UK 440,200 3,424,006 1.0
TOBACCO
South African Breweries Ltd. .............................. SAFR 50,000 1,467,190 0.4
BEVERAGES - ALCOHOLIC
Giordano International Ltd. ............................... HK 697,000 675,344 0.2
TEXTILES & APPAREL
Reliance Industries Ltd. - 144A GDR{.} -/- {\/} ........... IND 400 5,100 --
TEXTILES & APPAREL
------------
22,562,448
------------
Energy (5.8%)
Elektrowatt AG ............................................ SWTZ 9,593 3,552,111 1.1
ELECTRICAL & GAS UTILITIES
ABB Asea Brown Boveri Ltd. - Bearer ....................... SWTZ 2,805 3,472,601 1.1
ENERGY EQUIPMENT & SERVICES
RWE AG .................................................... GER 85,270 3,326,214 1.0
ELECTRICAL & GAS UTILITIES
Sasol Ltd. ................................................ SAFR 280,000 3,040,665 0.9
ENERGY SOURCES
United Utilities PLC ...................................... UK 311,900 2,622,168 0.8
ENERGY SOURCES
Korea Electric Power Corp. ................................ KOR 55,050 2,223,721 0.7
ELECTRICAL & GAS UTILITIES
National Power PLC ........................................ UK 81,100 654,743 0.2
ELECTRICAL & GAS UTILITIES
------------
18,892,223
------------
Capital Goods (4.6%)
Bic ....................................................... FR 33,580 4,775,677 1.5
OFFICE EQUIPMENT
Canon, Inc. ............................................... JPN 180,000 3,755,490 1.1
OFFICE EQUIPMENT
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Capital Goods (Continued)
Premier Farnell PLC ......................................... UK 252,000 $ 2,648,719 0.8
INDUSTRIAL COMPONENTS
Smiths Industries PLC ..................................... UK 215,350 2,353,771 0.7
AEROSPACE/DEFENSE
Telefonaktiebolaget LM Ericsson "B" ....................... SWDN 75,358 1,628,094 0.5
TELECOM EQUIPMENT
------------
15,161,751
------------
Consumer Durables (4.6%)
Sharp Corp. ............................................... JPN 300,000 5,270,864 1.6
CONSUMER ELECTRONICS
Volkswagen AG ............................................. GER 8,970 3,336,755 1.0
AUTOMOBILES
PSA Peugeot Citroen S.A. .................................. FR 20,255 2,715,116 0.8
AUTOMOBILES
Samsung Electronics Co.: .................................. KOR -- -- 0.8
CONSUMER ELECTRONICS
Common-/- ............................................... -- 12,206 1,024,943 --
Preferred-/- ............................................ -- 9,000 394,935 --
Preferred - New-/- ...................................... -- 8,828 375,765 --
New-/- .................................................. -- 3,678 292,517 --
GDR-/- {\/} ............................................. -- 9,220 221,280 --
144A GDR{.} -/- {\/} .................................... -- 3,862 196,962 --
1/2 Non-voting GDR-/- {\/} .............................. -- 2,778 50,004 --
1/2 Voting GDR-/- {\/} .................................. -- 1,163 45,357 --
Garphyttan Industrier AB .................................. SWDN 74,400 1,146,535 0.4
AUTO PARTS
------------
15,071,033
------------
Multi-Industry/Miscellaneous (4.0%)
ROC Taiwan Fund-/- ........................................ US 357,900 4,071,113 1.2
COUNTRY FUNDS
Parkway Holdings Ltd. ..................................... SING 843,000 2,510,174 0.8
MULTI-INDUSTRY
Barlow Ltd. ............................................... SAFR 198,500 2,075,352 0.6
CONGLOMERATE
United Industrial Corp. ................................... SING 1,726,000 1,762,099 0.5
CONGLOMERATE
Swire Pacific Ltd. "A" .................................... HK 149,000 1,275,273 0.4
MULTI-INDUSTRY
Citic Pacific Ltd. ........................................ HK 274,000 1,107,965 0.3
CONGLOMERATE
Kinnevik AB "B" Free ...................................... SWDN 17,800 540,543 0.2
MULTI-INDUSTRY
------------
13,342,519
------------ -----
TOTAL EQUITY INVESTMENTS (cost $270,818,196) ................ 304,871,141 93.2
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
RIGHTS COUNTRY RIGHTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Carrefour Supermarche Rights, expire 7/2/96 (cost
$1,300,451)-/- ........................................... FR 5,490 1,518,829 0.5
------------ -----
RETAILERS-FOOD
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
CMIC Finance & Securities Co., Ltd. Warrants, expire
12/31/99 (cost $43,003)-/- ............................... THAI 107,250 -- --
------------ -----
SECURITIES BROKER
<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 $10,915,000 Federal Home Loan Mortgage
Corp., 6.07% due 11/20/98 (market value of collateral is
$10,876,656, including accrued interest). (cost
$10,661,618) ............................................ $ 10,661,618 3.3
------------ -----
TOTAL INVESTMENTS (cost $282,823,268) * ..................... 317,051,588 97.0
Other Assets and Liabilities ................................ 9,904,209 3.0
------------ -----
NET ASSETS .................................................. $326,955,797 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{\/} U.S. currency denominated.
-/- Non-income producing security.
{.} 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.
* For Federal income tax purposes, cost is $284,284,474 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 41,414,289
Unrealized depreciation: (8,647,175)
-------------
Net unrealized appreciation: $ 32,767,114
-------------
-------------
</TABLE>
Abbreviation:
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
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) ................. 2.4 2.4
Finland (FIN/FIM) .................... 0.9 0.9
France (FR/FRF) ...................... 7.1 0.5 7.6
Germany (GER/DEM) .................... 6.1 6.1
Hong Kong (HK/HKD) ................... 2.4 2.4
Indonesia (INDO/IDR) ................. 0.9 0.9
Italy (ITLY/ITL) ..................... 2.3 2.3
Japan (JPN/JPY) ...................... 24.5 24.5
Korea (KOR/KRW) ...................... 1.5 1.5
Mexico (MEX/MXN) ..................... 1.2 1.2
Netherlands (NETH/NLG) ............... 6.6 6.6
New Zealand (NZ/NZD) ................. 0.9 0.9
Norway (NOR/NOK) ..................... 0.8 0.8
Portugal (PORT/PTE) .................. 1.0 1.0
Singapore (SING/SGD) ................. 2.7 2.7
South Africa (SAFR/ZAR) .............. 1.9 1.9
Spain (SPN/ESP) ...................... 3.6 3.6
Sweden (SWDN/SEK) .................... 2.1 2.1
Switzerland (SWTZ/CHF) ............... 8.0 8.0
Thailand (THAI/THB) .................. 1.1 1.1
United Kingdom (UK/GBP) .............. 14.0 14.0
United States & Other (US/USD) ....... 1.2 6.3 7.5
------ ----- ----- -----
Total ............................... 93.2 0.5 6.3 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $326,955,797.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
UNREALIZED
MARKET VALUE CONTRACT DELIVERY APPRECIATION
CONTRACTS TO SELL: (U.S. DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
French Francs........................... 9,745,570 5.14610 08/06/96 $ (29,475)
French Francs........................... 2,340,410 5.18000 08/19/96 (23,808)
Japanese Yen............................ 22,557,493 103.72700 08/09/96 1,062,201
Japanese Yen............................ 14,731,424 103.70000 08/09/96 697,698
Japanese Yen............................ 6,767,021 105.65000 07/08/96 232,506
Japanese Yen............................ 105,961 103.60000 08/14/96 5,043
Swiss Francs............................ 9,575,674 1.24000 09/19/96 13,035
-------------- --------------
Total Contracts to Sell (Receivable
amount $67,780,753).................. 65,823,553 1,957,200
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS
PERCENTAGE OF NET ASSETS IS 20.13%
Total Open Forward Foreign Currency
Contracts, Net....................... $ 1,957,200
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $282,823,268) (Note 1).......................... $317,051,588
U.S. currency.................................................................. $ 54
Foreign currencies (cost $5,160,755)........................................... 5,163,528 5,163,582
---------
Receivable for securities sold............................................................ 9,477,126
Receivable for Fund shares sold........................................................... 8,033,300
Receivable for open forward foreign currency contracts, net (Note 1)...................... 1,957,200
Dividends and dividend withholding tax reclaims receivable................................ 1,335,994
Miscellaneous receivable.................................................................. 43,708
Cash held as collateral for securities loaned (Note 1).................................... 22,656,130
-----------
Total assets............................................................................ 365,718,628
-----------
Liabilities:
Payable for securities purchased.......................................................... 8,714,768
Payable for Fund shares repurchased....................................................... 6,546,935
Payable for investment management and administration fees (Note 2)........................ 252,041
Payable for printing and postage expenses................................................. 171,443
Payable for service and distribution expenses (Note 2).................................... 127,606
Payable for forward foreign currency contracts -- closed (Note 1)......................... 121,032
Payable for transfer agent fees (Note 2).................................................. 76,450
Payable for custodian fees (Note 1)....................................................... 23,165
Payable for professional fees............................................................. 17,518
Payable for Trustees' fees and expenses (Note 2).......................................... 8,543
Payable for fund accounting fees (Note 2)................................................. 6,398
Payable for registration and filing fees.................................................. 3,786
Other accrued expenses.................................................................... 37,016
Collateral for securities loaned (Note 1)................................................. 22,656,130
-----------
Total liabilities....................................................................... 38,762,831
-----------
Net assets.................................................................................. $326,955,797
-----------
-----------
Class A:
Net asset value and redemption price per share ($253,405,785 DIVIDED BY 26,483,851 shares
outstanding)............................................................................... $ 9.57
-----------
-----------
Maximum offering price per share (100/95.25 of $9.57) *..................................... $ 10.05
-----------
-----------
Class B:+
Net asset value and offering price per share ($71,389,479 DIVIDED BY 7,624,628 shares
outstanding)............................................................................... $ 9.36
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($2,160,533
DIVIDED BY 223,701 shares outstanding)..................................................... $ 9.66
-----------
-----------
Net assets consist of:
Paid in capital (Note 4).................................................................. $271,647,456
Undistributed net investment income....................................................... 31,108
Accumulated net realized gain on investments and foreign currency transactions............ 19,106,441
Net unrealized appreciation on translation of assets and liabilities in foreign
currencies............................................................................... 1,942,472
Net unrealized appreciation of investments................................................ 34,228,320
-----------
Total -- representing net assets applicable to capital shares outstanding................... $326,955,797
-----------
-----------
<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.
F8
<PAGE>
GT GLOBAL INTERNATIONAL 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 $515,014)............................... $2,947,101
Interest income............................................................................ 170,494
----------
Total investment income.................................................................. 3,117,595
----------
Expenses:
Investment management and administration fees (Note 2)..................................... 1,634,181
Service and distribution expenses: (Note 2)
Class A...................................................................... $ 462,793
Class B...................................................................... 349,505 812,298
----------
Transfer agent fees (Note 2)............................................................... 469,196
Custodian fees (Note 1).................................................................... 145,432
Printing and postage expenses.............................................................. 128,940
Fund accounting fees (Note 2).............................................................. 42,055
Registration and filing fees............................................................... 38,114
Audit fees................................................................................. 26,026
Trustees' fees and expenses (Note 2)....................................................... 8,918
Legal fees................................................................................. 5,824
Other expenses............................................................................. 12,418
----------
Total expenses before reductions......................................................... 3,323,402
----------
Expense reductions (Notes 1 & 5)....................................................... (236,915)
----------
Total net expenses....................................................................... 3,086,487
----------
Net investment income........................................................................ 31,108
----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized gain on investments............................................... 17,795,359
Net realized gain on foreign currency transactions............................. 5,275,669
----------
Net realized gain during the period...................................................... 23,071,028
Net change in unrealized appreciation on translation of assets and liabilities
in foreign currencies......................................................... 879,028
Net change in unrealized appreciation of investments........................... (4,466,627)
----------
Net unrealized depreciation during the period............................................ (3,587,599)
----------
Net realized and unrealized gain on investments and foreign currencies....................... 19,483,429
----------
Net increase in net assets resulting from operations......................................... $19,514,537
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
------------- -------------
Decrease in net assets
Operations:
Net investment income..................................................... $ 31,108 $ 555,361
Net realized gain on investments and foreign currency transactions........ 23,071,028 982,081
Net change in unrealized appreciation on translation of assets and
liabilities in foreign currencies........................................ 879,028 247,497
Net change in unrealized appreciation (depreciation) of investments....... (4,466,627) 7,882,538
------------- -------------
Net increase in net assets resulting from operations.................... 19,514,537 9,667,477
------------- -------------
Class A:
Distributions to shareholders:
From net realized gain on investments..................................... -- (7,612,428)
In excess of net realized gain on investments............................. -- (6,510,219)
Class B:
Distributions to shareholders:
From net realized gain on investments..................................... -- (1,774,209)
In excess of net realized gain on investments............................. -- (1,517,320)
Advisor Class:
Distributions to shareholders:
From net realized gain on investments..................................... -- (9,818)
In excess of net realized gain on investments............................. -- (8,396)
------------- -------------
Total distributions..................................................... -- (17,432,390)
------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.......................... 803,737,290 1,294,676,738
Decrease from capital shares repurchased.................................. (875,147,269) (1,410,555,957)
------------- -------------
Net decrease from capital share transactions............................ (71,409,979) (115,879,219)
------------- -------------
Total decrease in net assets................................................ (51,895,442) (123,644,132)
Net assets:
Beginning of period....................................................... 378,851,239 502,495,371
------------- -------------
End of period*............................................................ $326,955,797 $ 378,851,239
------------- -------------
------------- -------------
*Includes undistributed net investment income of.......................... $ 31,108 $ --
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CLASS A+
-----------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1996 ----------------------------------------------------------
(UNAUDITED) 1995 1994 1993 (A) 1992 1991
----------- ---------- ---------- ---------- ---------- ----------
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.08 $ 9.17 $ 11.02 $ 8.21 $ 8.74 $ 7.82
----------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss).......... 0.01 0.03 (0.04) 0.03 0.11 0.14
Net realized and unrealized gain
(loss) on investments................ 0.48 0.32 (0.82) 2.78 (0.62) 0.89
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) from
investment operations.............. 0.49 0.35 (0.86) 2.81 (0.51) 1.03
----------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income............ -- -- (0.04) -- (0.02) (0.11)
From net realized gain on
investments.......................... -- (0.24) (0.95) -- -- --
In excess of net realized gain on
investments.......................... -- (0.20) -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
Total distributions................. -- (0.44) (0.99) -- (0.02) (0.11)
----------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.......... $ 9.57 $ 9.08 $ 9.17 $ 11.02 $ 8.21 $ 8.74
----------- ---------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ---------- ----------
Total investment return (d)............. 5.40%(b) 3.88% (7.78)% 34.2% (5.8)% 13.2%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 253,406 $ 308,816 $ 430,701 $ 523,397 $ 421,693 $ 463,851
Ratio of net investment income (loss) to
average net assets..................... 0.15%(c) 0.24% (0.04)% 0.3% 1.2% 1.5%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.71%(c) 1.70% 1.70% 1.8% 1.9% 1.9%
Without expense reductions............ 1.85%(c) 1.78% 1.75% --* --* --*
Portfolio turnover rate++++............. 90%(c) 75% 96% 90% 89% 83%
Average commission rate paid on
portfolio transactions++++............. $ 0.0272 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) Calculated based upon weighted average shares outstanding during the
period.
(b) Not annualized
(c) Annualized
(d) Total investment return does not include sales charges.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CLASS B++ ADVISOR CLASS+++
-------------------------------------------------- --------------------------
SIX MONTHS YEAR ENDED SIX MONTHS
ENDED DECEMBER 31, APRIL 1, 1993 ENDED JUNE 1, 1995
JUNE 30, ---------------------- TO JUNE 30, TO
1996 DECEMBER 31, 1996 DECEMBER 31,
(UNAUDITED) 1995 1994 1993 (A) (UNAUDITED) 1995
----------- ---------- ---------- ------------- ----------- -------------
Per Share Operating Performance:
Net asset value, beginning of period.... $ 8.91 $ 9.07 $ 10.98 $ 8.74 $ 9.11 $ 8.49
----------- ---------- ---------- ------------- ----------- -------------
Income from investment operations:
Net investment income (loss).......... (0.02) (0.04) (0.10) (0.01) 0.01 0.03
Net realized and unrealized gain
(loss) on investments................ 0.47 0.32 (0.82) 2.25 0.54 1.03
----------- ---------- ---------- ------------- ----------- -------------
Net increase (decrease) from
investment operations.............. 0.45 0.28 (0.92) 2.24 0.55 1.06
----------- ---------- ---------- ------------- ----------- -------------
Distributions to shareholders:
From net investment income............ -- -- (0.04) -- -- --
From net realized gain on
investments.......................... -- (0.24) (0.95) -- -- (0.24)
In excess of net realized gain on
investments.......................... -- (0.20) -- -- -- (0.20)
----------- ---------- ---------- ------------- ----------- -------------
Total distributions................. -- (0.44) (0.99) -- -- (0.44)
----------- ---------- ---------- ------------- ----------- -------------
Net asset value, end of period.......... $ 9.36 $ 8.91 $ 9.07 $ 10.98 $ 9.66 $ 9.11
----------- ---------- ---------- ------------- ----------- -------------
----------- ---------- ---------- ------------- ----------- -------------
Total investment return (d)............. 5.05%(b) 3.15% (8.36)% 25.6%(b) 6.04%(b) 12.56%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 71,389 $ 69,654 $ 71,794 $ 30,745 $ 2,161 $ 381
Ratio of net investment income (loss) to
average net assets..................... (0.50)%(c) (0.41)% (0.69)% (0.4)%(c) 0.50%(c) 0.59%(c)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.36%(c) 2.35% 2.35% 2.4%(c) 1.36%(c) 1.35%(c)
Without expense reductions............ 2.50%(c) 2.43% 2.40% --* 1.50%(c) 1.43%(c)
Portfolio turnover rate++++............. 90%(c) 75% 96% 90%(c) 90%(c) 75%(c)
Average commission rate paid on
portfolio transactions++++............. $ 0.0272 N/A N/A N/A $ 0.0272 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) Calculated based upon weighted average shares outstanding during the
period.
(b) Not annualized
(c) Annualized
(d) Total investment return does not include sales charges.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global International 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 from management.
(A) PORTFOLIO VALUATION
The Fund calculates the net asset value of Fund shares and completes orders to
purchase, exchange or repurchase Fund shares on each business day, with the
exception of those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded or on the principal over-the-counter market in which
such securities are traded, as of the close of business on the day the
securities are being valued, or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by LGT Asset Management, Inc.
("LGT") to be the primary market.
Fixed income investments are valued at the mean of representative quoted bid and
asked prices for such investments or, if such prices are not available, at
prices for investments of comparative maturity, quality and type; however, when
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 to amortized cost, adjusted for foreign exchange translation
and market fluctuation, if any.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, other assets and liabilities
are recorded in the books and records of the Fund after translation to U.S.
dollars based on the exchange rates on that day. The cost of each security is
determined using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuation
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 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
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GT GLOBAL INTERNATIONAL GROWTH FUND
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 is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. The Fund can write options only on
a covered basis, which, for a call, requires that the Fund hold the underlying
security, and, for a put, requires the Fund to set aside cash, U.S. government
securities or other liquid, high grade debt securities in an amount not less
than the exercise price or otherwise provide adequate cover at all times while
the put option is outstanding. The Fund may use options to manage its exposure
to the stock market and to fluctuations in currency values or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other then 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 $21,529,143
were on loan to brokers. The loans were secured by cash collateral of
$22,656,130, 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 $89,239 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
F14
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GT GLOBAL INTERNATIONAL GROWTH FUND
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 the average daily net assets of the Fund; 0.95% on the
next $500 million; 0.925% on the next $500 million and 0.90% on amounts
thereafter. These fees are computed daily and paid monthly, and are subject to
reduction in any year to the extent that the Fund's expenses (exclusive of
brokerage commissions, taxes, interest, distribution-related expenses and
extraordinary expenses) exceed the most stringent limits prescribed by the laws
or regulations of any state in which the Fund's shares are offered for sale,
based on the average total net asset value of the Fund.
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 $18,643
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 $956 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. During the period ended June 30, 1996, GT Global collected CDSC's in
the amount of $153,398. 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.
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
F15
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
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% to
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 GT Capital, 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 $146,284,066 and $200,517,147, respectively. There were no purchases
or sales of U.S. government obligations by the Fund 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:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Class A
Shares sold.................................................... 79,738,214 $744,057,553 140,096,147 $1,244,115,581
Shares issued in connection with reinvestment of
distributions................................................ -- -- 1,274,450 11,483,253
---------- ------------ ----------- -------------
79,738,214 744,057,553 141,370,597 1,255,598,834
Shares repurchased............................................. (87,249,082) (815,481,710) (154,325,977) (1,370,898,171)
---------- ------------ ----------- -------------
Net decrease................................................... (7,510,868) $(71,424,157) (12,955,380) $(115,299,337)
---------- ------------ ----------- -------------
---------- ------------ ----------- -------------
SIX MONTHS ENDED
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
----------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ ---------- -------------
Class B
Shares sold..................................................... 5,043,556 $ 46,035,563 4,065,880 $ 35,727,913
Shares issued in connection with reinvestment of
distributions................................................. -- -- 329,999 2,917,198
--------- ------------ ---------- -------------
5,043,556 46,035,563 4,395,879 38,645,111
Shares repurchased.............................................. (5,233,919) (47,749,287) (4,499,678) (39,592,887)
--------- ------------ ---------- -------------
Net decrease.................................................... (190,363) $ (1,713,724) (103,799) $ (947,776)
--------- ------------ ---------- -------------
--------- ------------ ---------- -------------
SIX MONTHS ENDED
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
----------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ ---------- -------------
Advisor Class
Shares sold..................................................... 1,446,681 $ 13,644,174 47,423 $ 417,842
Shares issued in connection with reinvestment of
distributions................................................. -- -- 1,656 14,951
--------- ------------ ---------- -------------
1,446,681 13,644,174 49,079 432,793
Shares repurchased.............................................. (1,264,795) (11,916,272) (7,264) (64,899)
--------- ------------ ---------- -------------
Net increase.................................................... 181,886 $ 1,727,902 41,815 $ 367,894
--------- ------------ ---------- -------------
--------- ------------ ---------- -------------
</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 $147,676 under these arrangements.
F16
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL INTERNATIONAL 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 INTERNATIONAL GROWTH FUND
INTSR60850M
