G T GLOBAL GROWTH SERIES, N-30D, 1996-03-04

G T GLOBAL GROWTH SERIES
N-30D, 1996-03-04

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<PAGE>
LGT ASSET MANAGEMENT
A PIONEER IN
GLOBAL
INVESTING
GT GLOBAL
INTERNATIONAL
GROWTH FUND

ANNUAL REPORT
DECEMBER 31, 1995

[LOGO]
<PAGE>
TABLE
OF CONTENTS

<TABLE>
<S> <C>
Report from the Fund
Managers and Key
Portfolio Holdings..... 1

Report of Independent
Accountants............ F-1

Financial Statements... F-2
</TABLE>

REPORT FROM THE FUND MANAGERS

The GT Global International Growth Fund seeks long-term growth of capital by
investing in equity securities of companies located outside the United States.
PERFORMANCE REVIEW
The Fund's total return for the 12 months ended December 31, 1995, for Class A
shares was 3.88% and total return for Class B shares was 3.15%. Total return for
the Morgan Stanley Capital International Europe, Australia, Far East (MSCI-EAFE)
Index(1) over the same period was 11.55%. The index is not available for
investment and does not include the effects of sales charges and professional
management fees. For additional performance information, please see page 6.
The Fund's concentration in smaller, less liquid stocks in Japan, which were
badly hit in the selloff at the beginning of the year, hurt the Fund's
performance relative to the index. These stocks performed poorly in the first
half of 1995; however, they recovered considerably in the second half and we
believe they have excellent long-term prospects. Similarly, smaller stocks in
Europe performed poorly as investors sought refuge in larger, safer companies.
In addition, we expected the dollar to recover in early 1995 and employed
foreign currency hedges, as provided for in the prospectus. While the dollar
eventually strengthened against the yen, it declined against the European
currencies, contributing to a loss on forward currency contracts to the
detriment of the Fund relative to the index. Having lost ground in the first
half of 1995, the strategies deployed by the Fund began to pay off in the second
half, as illustrated by the 10.89% return in the six months to December 1995,
outpacing the 8.55% return by the MSCI-EAFE Index.

- ------------------
(1) The MSCI-EAFE Index is an arithmetic average weighted by market value of the
performance of 1,112 securities listed on 20 major stock exchanges. It
includes the effect of reinvested dividends and is measured in U.S. dollars.

1
<PAGE>
MARKET REVIEW
The Mexican financial crisis caused a steep decline in most emerging markets in
the first two months of 1995, as investors reassessed the risks of investing in
them in the face of rising U.S. interest rates. From March onward, it became
apparent that the U.S. economy was slowing and that interest rates could begin
to decline; bonds rose accordingly. The improving sentiment in the bond markets
spilled over into the stock markets, and a general recovery in world financial
markets occurred during the summer.

The slower pace of economic growth in the U.S. was matched by a similar slowdown
in Europe where, by the end of the year, the likelihood of some countries
slipping into recession became considerably more real. Further, the Japanese
economy continued to disappoint. As 1995 drew to a close, most of the developed
countries looked forward to lower inflation and low or falling interest rates.
These positives outweighed concerns that slower economic growth might hurt the
prospects for corporate profits. World stock markets, therefore, ended the year
with modest gains in most countries.

However, there were some marked divergences in trends. Emerging market equities
never fully recovered from the Mexico shock; Europe demonstrated reasonable
gains; Japanese markets declined, then recovered, to end the year little
changed; while the U.S. stock market boomed. The relative outperformance of the
U.S. market has led several commentators to speculate that foreign markets have
some catching up to do. As 1995 ended, U.S. investors appeared to be redirecting
their buying overseas.

PORTFOLIO STRATEGY
During the second half of the year the Fund made very few changes to its country
allocation. About half the Fund was invested in Europe and just over a quarter
was invested in Japan. The weighting in Japan continues to be low relative to
the index. Although the Japanese stock market recovered sharply in yen terms in
the second half of 1995, gains were largely offset by a steep decline in the
yen. Although we do find some selected stocks attractive, the structural
problems in the Japanese economy continue to cause concern, and we find overall
stock price valuations unappealing.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI JAPAN INDEX MSCI EUROPE INDEX MSCI EMERGING
MKTS GLOBAL INDEX
<S> <C> <C> <C>
1/6/1995 100 100 100
1/13/1995 100.937785 100.524596 97.0170337
1/20/1995 96.60812932 101.207714 94.5132253
1/27/1995 93.39620035 100.714169 92.2697687
2/3/1995 95.11946473 100.862886 95.0837834
2/10/1995 94.31494715 102.564145 94.6960255
2/17/1995 93.94247393 102.505311 92.1174353
2/24/1995 92.31962072 102.312469 91.8847805
3/3/1995 94.98128423 104.267037 90.3752943
3/10/1995 95.2779117 101.126001 88.9267414
3/17/1995 95.06020065 103.53816 91.2643678
3/24/1995 91.90937817 103.394346 92.0592716
3/31/1995 100.4240606 106.430789 92.4553386
4/7/1995 99.63121161 107.957183 94.1780917
4/14/1995 102.1906215 107.520837 93.1283756
4/21/1995 107.1273502 108.027456 94.0756128
4/28/1995 105.26437 109.620853 94.2196372
5/5/1995 106.4960189 111.16032 96.5932696
5/12/1995 100.5997034 110.132375 98.0529013
5/19/1995 98.91390127 108.416408 97.3770946
5/26/1995 101.7484439 112.699788 97.1416701
6/2/1995 100.8521131 113.059323 99.2964963
6/9/1995 96.37905676 112.761889 97.5100402
6/16/1995 94.78875273 112.825625 97.3327794
6/23/1995 97.17374817 114.616767 97.0945852
6/30/1995 93.90009858 112.487335 96.8176153
7/7/1995 99.6207713 116.128452 100.445922
7/14/1995 99.98188301 116.731492 101.645201
7/21/1995 99.0671281 116.156235 98.7010109
7/28/1995 100.4308161 118.648472 98.5569866
8/4/1995 97.98102936 119.037424 98.6650048
8/11/1995 95.931659 115.901291 96.3329179
8/18/1995 98.53590084 114.587351 95.4632322
8/25/1995 97.04600797 114.1412 95.3053594
9/1/1995 97.41694585 113.994117 94.9785348
9/8/1995 96.06646176 114.888054 96.1168813
9/15/1995 95.46368771 115.775454 96.6791303
9/22/1995 95.41854875 116.85733 96.5351059
9/29/1995 97.96321943 116.556627 95.7568204
10/6/1995 97.78450598 115.788528 96.2055117
10/13/1995 94.73010278 116.275535 95.3469049
10/20/1995 96.72819282 115.924171 95.0394682
10/27/1995 91.13218962 114.056218 92.9040299
ll/ 3/1995 92.79404044 115.90456 91.3696164
11/10/1995 94.68864863 115.79343 89.4142086
11/17/1995 94.11412482 117.368851 88.4115773
11/24/1995 95.24382718 118.140219 89.0818446
12/1/1995 98.92587692 116.826279 91.0483313
12/8/1995 101.1204903 116.437326 92.3085445
12/15/1995 100.6365515 117.385194 91.9318654
12/22/1995 102.8892007 118.187612 93.8097216
12/29/1995 102.8084419 119.864357 93.4108849
</TABLE>

Assuming a baseline of 100, European markets enjoyed strong gains on the back
of robust U.S. market performance; Developing markets continued to suffer in
the aftermath of the Mexican peso devaluation; Japanese market weakness
underscored its continuing economic difficulties.

Source: Bloomberg, February 20, 1996

2
<PAGE>
At the end of the year, 15.23% of the portfolio was invested in emerging
markets, mainly in Asia. Apart from emerging markets, which are not represented
in the MSCI-EAFE Index, the largest relative overweighting was in the
Netherlands, where we continue to find several companies attractive in terms of
their stock price valuations relative to their growth prospects.

OUTLOOK
Looking ahead, with economic growth slowing and inflation pressures continuing
to abate in most of the industrialized world, we believe central banks are
likely to cut interest rates further. At some stage, we think the improvement in
liquidity may bring about a recovery in economic growth and corporate profits.
It is this prospect that has provided support to stock markets, since we see few
investors who believe there is anything on the horizon to cause longer-term
concerns.

Emerging markets, in general, although they still represent heightened
investment risks compared to developed markets, are trading at much more
attractive valuations than they were two years ago at the height of the
investment bubble. We expect a gradual recovery in investor confidence toward
these markets as memories of the Mexican financial crisis recede and investors
come to believe that the crisis was not indicative of the prospects for the
third world in general.

CHRISTIAN WIGNALL MICHAEL LINDSELL
CHIEF INVESTMENT OFFICER PORTFOLIO MANAGER
GLOBAL EQUITIES TOKYO
SAN FRANCISCO

SERGE SELFSLAGH
PORTFOLIO MANAGER
LONDON
JANUARY 25, 1996

GT GLOBAL INTERNATIONAL GROWTH FUND

3
<PAGE>
KEY PORTFOLIO HOLDINGS*

DAINI DENDEN INC. (DDI) JAPAN
As Japan's second-largest provider of cellular phone services, DDI has benefited
from the liberalization of domestic cellular services and cellular handset
sales. The company also has more than 10% of the domestic long-distance market,
which we expect to show respectable growth when the Japanese economy eventually
recovers and Japanese consumers gradually increase their spending. We expect the
market for cellular phone services to continue to grow at a healthy pace for the
rest of the decade

MATSUSHITA-KOTOBUKI ELECTRONICS, LTD. JAPAN
Matsushita Kotobuki produces parts for the PC industry, including disk drives
and CD-ROMs. Strong sales of PCs in the U.S. have led to strong company sales,
despite the strong yen which caused selling prices to decline in yen terms. The
company is transferring the manufacturing of its low margin, low-growth business
- -- VCR manufacturing -- to overseas locations where labor costs and capital
inputs are lower.

AOYAMA TRADING CO., LTD. JAPAN
Aoyama Trading is the largest suburban discount chain store in Japan,
specializing in men's discount suits. Generally, Aoyama sells lesser-known
brand-name items, and is developing a casual wear line to complement its
business clothing sales.

SEVEN-ELEVEN JAPAN JAPAN
Throughout the recession in Japan, sales in the existing convenience stores of
this nationwide franchise chain continued to grow, demonstrating the company's
expertise in merchandising, inventory control and promotion. We expect these
trends to continue and the company to expand at the expense of its competitors.
In our opinion, highly competent management continues to be the hallmark of
Seven-Eleven's success, and the shakeout in the rest of Japan's retailing
industry could present it with expansion opportunities.

TAKEDA CHEMICAL JAPAN
We consider Takeda Chemical to be a leading pharmaceutical manufacturer, best-
noted for its vitamin tablet Alinamin. The company, which has been a top
antibiotics producer since 1965, manages overseas manufacturing operations in
both the U.S. and Asia. We believe its Asian manufacturing center, Central
Research Lab, sets the standard in pharmaceutical production in Asia.

ITO-YOKADO CO., LTD. JAPAN
Ito-Yokado operates one of the 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.

HOSIDEN CORPORATION JAPAN
Hosiden specializes in the production of liquid crystal display (LCD) screens
that are considered among the best available in the market. The company's
independence means it does not have to lower its prices to related industrial
groups, as do some of its competitors. It sells mainly to U.S. computer makers,
where its screens are known for their sophistication and reliability.

ELSEVIER N.V. NETHERLANDS
This Dutch publishing company focuses on the scientific, professional and
business markets. It has enjoyed strong growth from geographical expansion and
from electronic publishing. In early 1995, Elsevier acquired LEXIS-NEXIS, the
on-line legal and business information service company, which we expect will
enhance Elsevier's earnings growth.

SAMSUNG ELECTRONICS CO. SOUTH KOREA
Samsung Electronics is Korea's leading electronics producer and exporter,
manufacturing semiconductors, consumer electronics, and telecom and computer
products. It is also a significant player in the domestic market for color
televisions, videocassette recorders, household appliances, electronic switching
systems and monitors. Exports account for about two-thirds of total sales, of
which the main destination is the U.S., followed by Asia and Europe.

BANCO INTERCONTINENTAL ESPANOL (BANK INTER) SPAIN
Although Bank Inter has the lowest non-performing loan ratio and the highest
loan provision ratio in the country, it is one of the most cheaply quoted
Spanish banks on a book value basis. We believe its sophisticated IT systems and
telephone operations make it one of the few theme stocks in the European banking
sector. Bank Inter is returning value to its shareholders through share
buybacks.

- --------------
* There can be no assurance the Fund will continue to hold these or any other
securities mentioned in this report.

4
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
PORTFOLIO SUMMARY

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
GT GLOBAL
INTERNATIONAL
GROWTH FUND MSCI EAFE
<S> <C> <C>
19-Jul-85 9,525 10,000
31-Jul-85 9,535 9,904
31-Aug-85 9,449 10,225
30-Sep-85 9,849 10,827
31-Oct-85 10,506 11,567
30-Nov-85 11,144 12,045
31-Dec-85 11,878 12,619
31-Jan-86 12,163 12,939
28-Feb-86 12,954 14,376
31-Mar-86 14,168 16,402
30-Apr-86 15,310 17,480
31-May-86 14,893 16,707
30-Jun-86 16,006 17,850
31-Jul-86 17,407 18,955
31-Aug-86 18,400 20,828
30-Sep-86 17,923 20,619
31-Oct-86 16,423 19,247
30-Nov-86 17,645 20,360
31-Dec-86 18,251 21,445
31-Jan-87 18,728 23,727
28-Feb-87 19,473 24,443
31-Mar-87 20,356 26,452
30-Apr-87 21,427 29,255
31-May-87 21,900 29,261
30-Jun-87 22,148 28,334
31-Jul-87 23,579 28,289
31-Aug-87 24,433 30,416
30-Sep-87 25,185 29,943
31-Oct-87 18,256 25,753
30-Nov-87 17,774 26,013
31-Dec-87 19,379 26,791
31-Jan-88 19,786 27,276
29-Feb-88 20,431 29,101
31-Mar-88 21,313 30,896
30-Apr-88 21,833 31,350
31-May-88 21,403 30,352
30-Jun-88 21,268 29,559
31-Jul-88 21,460 30,492
31-Aug-88 20,747 28,515
30-Sep-88 21,268 29,767
31-Oct-88 22,330 32,321
30-Nov-88 22,930 34,253
31-Dec-88 23,138 34,450
31-Jan-89 24,311 35,063
28-Feb-89 24,686 35,250
31-Mar-89 25,176 34,565
30-Apr-89 26,167 34,893
31-May-89 25,882 33,000
30-Jun-89 25,745 32,452
31-Jul-89 27,545 36,534
31-Aug-89 28,626 34,898
30-Sep-89 29,788 36,494
31-Oct-89 28,455 35,035
30-Nov-89 29,685 36,803
31-Dec-89 32,060 38,170
31-Jan-90 31,540 36,758
28-Feb-90 30,674 34,200
31-Mar-90 31,090 30,644
30-Apr-90 30,258 30,409
31-May-90 31,818 33,888
30-Jun-90 32,476 33,598
31-Jul-90 33,585 34,080
31-Aug-90 30,362 30,779
30-Sep-90 27,208 26,499
31-Oct-90 28,802 30,636
30-Nov-90 27,970 28,838
31-Dec-90 27,474 29,316
31-Jan-91 28,071 30,273
28-Feb-91 29,863 33,527
31-Mar-91 30,390 31,522
30-Apr-91 30,495 31,841
31-May-91 31,584 32,183
30-Jun-91 30,390 29,826
31-Jul-91 31,514 31,300
31-Aug-91 30,741 30,672
30-Sep-91 31,408 32,410
31-Oct-91 31,549 32,877
30-Nov-91 30,073 31,351
31-Dec-91 31,104 32,980
31-Jan-92 31,176 32,285
29-Feb-92 31,709 31,138
31-Mar-92 30,677 29,091
30-Apr-92 31,532 29,237
31-May-92 33,560 31,203
30-Jun-92 32,386 29,733
31-Jul-92 30,998 28,982
31-Aug-92 30,713 30,810
30-Sep-92 29,218 30,211
31-Oct-92 29,147 28,635
30-Nov-92 29,325 28,914
31-Dec-92 29,290 29,072
31-Jan-93 29,076 29,077
28-Feb-93 29,504 29,964
31-Mar-93 31,002 32,585
30-Apr-93 32,501 35,686
31-May-93 32,965 36,448
30-Jun-93 32,501 35,888
31-Jul-93 33,714 37,153
31-Aug-93 35,676 39,167
30-Sep-93 35,533 38,294
31-Oct-93 36,996 39,482
30-Nov-93 35,355 36,039
31-Dec-93 39,315 38,650
31-Jan-94 41,741 41,926
28-Feb-94 40,242 41,818
31-Mar-94 37,317 40,026
30-Apr-94 37,852 41,733
31-May-94 37,602 41,502
30-Jun-94 37,317 42,098
31-Jul-94 38,494 42,512
31-Aug-94 40,421 43,528
30-Sep-94 38,815 42,167
31-Oct-94 39,029 43,581
30-Nov-94 37,353 41,496
31-Dec-94 36,256 41,765
31-Jan-95 33,488 40,171
28-Feb-95 32,579 40,066
31-Mar-95 32,658 42,576
30-Apr-95 33,646 44,189
31-May-95 33,567 43,673
30-Jun-95 33,962 42,919
31-Jul-95 36,453 45,603
31-Aug-95 36,611 43,874
30-Sep-95 37,086 44,742
31-Oct-95 36,453 43,551
30-Nov-95 36,335 44,774
31-Dec-95 37,661 46,590
</TABLE>

THE CHART AT RIGHT SHOWS THE PERFORMANCE OF THE GT GLOBAL INTERNATIONAL GROWTH
FUND CLASS A SHARES SINCE THE FUND'S INCEPTION VERSUS THE MSCI-EAFE INDEX. THIS
REPRESENTS A CUMULATIVE RETURN OF 202.01% FOR THE 10 YEARS ENDING DECEMBER 31,
1995 AND AN AVERAGE ANNUAL TOTAL RETURN OF 11.69%. THE CHART ASSUMES A
HYPOTHETICAL $10,000 INITIAL INVESTMENT IN THE FUND'S CLASS A SHARES AND
REFLECTS ALL FUND EXPENSES AND THE MAXIMUM 4.75% SALES CHARGE. INVESTORS SHOULD
NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED MUTUAL FUND WHILE THE INDEX IS
UNMANAGED, DOES NOT INCUR EXPENSES AND IS NOT AVAILABLE FOR INVESTMENT.

AVERAGE ANNUAL TOTAL RETURNS+
DECEMBER 31, 1995

<TABLE>
<CAPTION>
SHARE WITHOUT SALES CHARGE WITH SALES CHARGE++
10-YEAR/ 10-YEAR/
LIFE OF LIFE OF
CLASS 1-YEAR 5-YEAR FUND 1-YEAR 5-YEAR FUND
<S> <C> <C> <C> <C> <C> <C>
CLASS A* 3.88% 6.51% 12.23% -1.06% 5.48% 11.69%
CLASS B** 3.15% N/A 6.45% -1.76% N/A 5.46%
ADV. CLASS*** N/A N/A 12.56% N/A N/A N/A
<FN>
* The Fund began operations on July 19, 1985.
** The Fund began offering Class B shares on April 1, 1993.
*** The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public and are only available
through certain employee benefit plans, financial institutions and other
entities that have entered into specific agreements with GT Global. Please
see the "Alternative Purchase Plan" section in the Fund's prospectus.
+ Figures assume reinvestment of all dividends and capital gains distributions
at net asset value.
++ The performance of the Class A shares reflects the effects of the maximum
4.75% sales charge. Class B share performance reflects the applicable
contingent deferred sales charge
(5.00% in the first year, decreasing to 0% after six years).
</TABLE>

THE DATA ABOVE REPRESENT PAST PERFORMANCE OF THE FUND'S SHARES, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
SECTOR ALLOCATION OF NET ASSETS
AS OF DECEMBER 31, 1995
<S> <C>
Services 25.2%
Finance 23.3%
Technology 9.4%
Materials/Basic Industries 6.4%
Consumer Non-Durables 5.9%
Capital Goods 5.8%
Health Care 5.5%
Energy 4.4%
Consumer Durables 2.7%
Multi Industry/Miscellaneous 2.5%
Other 8.9%
100.0
GEOGRAPHIC ALLOCATION OF NET ASSETS
AS OF DECEMBER 31, 1995
Europe 46.2%
Asia-Pacific 42.3%
Africa 2.7%
United States & Other 8.8%
100.0
</TABLE>

ALLOCATIONS WILL CHANGE BASED ON CURRENT MARKET CONDITIONS.

5
<PAGE>
GT GLOBAL
INTERNATIONAL
GROWTH FUND

FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

REPORT OF
INDEPENDENT ACCOUNTANTS

- --------------------------------------------------------------------------------

To the Shareholders and Board of Trustees of
GT Global Growth Series:

We have audited the accompanying statement of assets and liabilities of GT
Global International Growth Fund, one of the funds organized as a series of GT
Global Growth Series, including the schedule of portfolio investments, as of
December 31, 1995, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended and the financial highlights for each of the four years in the
period then ended. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits. The financial highlights for the year ended December 31, 1991 were
audited by other auditors whose report dated January 31, 1992 expressed an
unqualified opinion on such financial highlights.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of GT
Global International Growth Fund as of December 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the four years in the period then ended, in conformity with generally accepted
accounting principles.

COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
FEBRUARY 12, 1996

F-1
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

PORTFOLIO OF INVESTMENTS

December 31, 1995

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (25.2%)
DDI Corp. ................................................. JPN 1,449 $ 11,232,558 3.0
WIRELESS COMMUNICATIONS
Aoyama Trading Co., Ltd. ................................. JPN 320,000 10,232,558 2.7
RETAILERS-APPAREL
Seven-Eleven Japan Ltd. ................................... JPN 145,000 10,228,682 2.7
RETAILERS-OTHER
Ito-Yokado Co., Ltd. ...................................... JPN 130,000 8,011,628 2.1
RETAILERS-OTHER
Elsevier N.V. ............................................. NETH 469,083 6,267,717 1.7
BROADCASTING & PUBLISHING
Hagemeyer N.V. ............................................ NETH 105,302 5,509,683 1.5
WHOLESALE & INTERNATIONAL TRADE
Koninklijke Ahold N.V. .................................... NETH 120,725 4,937,242 1.3
RETAILERS-FOOD
Reuters Holdings PLC ..................................... UK 417,000 3,816,511 1.0
BROADCASTING & PUBLISHING
Securitas AB "B" ......................................... SWDN 77,680 3,687,064 1.0
BUSINESS & PUBLIC SERVICES
Tesco PLC ................................................. UK 791,200 3,648,291 1.0
RETAILERS-FOOD
EMAP PLC ................................................. UK 433,330 3,599,310 0.9
BROADCASTING & PUBLISHING
Autobacs Seven Co., Ltd. .................................. JPN 41,600 3,458,605 0.9
RETAILERS-OTHER
Fast Retailing Co., Ltd. .................................. JPN 65,400 3,250,988 0.9
RETAILERS-APPAREL
Great Universal Stores PLC ................................ UK 304,000 3,230,678 0.9
RETAILERS-OTHER
Compass Group PLC ......................................... UK 413,650 3,140,426 0.8
RESTAURANTS
British Airport Authority PLC ............................ UK 358,700 2,700,970 0.7
TRANSPORTATION - AIRLINES
Dixons Group PLC .......................................... UK 340,000 2,356,932 0.6
RETAILERS-APPAREL
Telecom Italia Mobile S.p.A. .............................. ITLY 1,335,355 2,350,562 0.6
TELEPHONE NETWORKS
ASSA Abloy AB "B"-/- ...................................... SWDN 182,850 1,708,235 0.5
BUSINESS & PUBLIC SERVICES
Granada Group PLC ......................................... UK 86,250 863,705 0.2
LEISURE & TOURISM
PT Indonesia Satellite (Indosat) - ADR{\/} ................ INDO 10,900 397,850 0.1
TELEPHONE NETWORKS
Marco Polo Developments Ltd. .............................. SING 252,600 387,653 0.1
LEISURE & TOURISM
Carrefour Supermarche ..................................... FR 300 182,289 --
RETAILERS-FOOD
News Corp., Ltd. .......................................... AUSL 18 96 --
BROADCASTING & PUBLISHING
------------
95,200,233
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-2
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (23.3%)
Banco Intercontinental Espanol ............................ SPN 61,393 $ 5,974,741 1.6
BANKS-MONEY CENTER
Axa Group ................................................. FR 84,336 5,691,969 1.5
INSURANCE - MULTI-LINE
Swiss Reinsurance Co. - Registered-/- ..................... SWTZ 4,480 5,216,625 1.4
INSURANCE - MULTI-LINE
HSBC Holdings PLC ......................................... HK 344,000 5,205,380 1.4
BANKS-MONEY CENTER
Bangkok Bank Co., Ltd. - Foreign .......................... THAI 415,000 5,043,288 1.3
BANKS-MONEY CENTER
Nichiei Co., Ltd. ........................................ JPN 66,000 4,924,419 1.3
INVESTMENT MANAGEMENT
National Australia Bank Ltd. .............................. AUSL 506,305 4,551,817 1.2
BANKS-MONEY CENTER
United Overseas Bank Ltd. - Foreign ....................... SING 453,300 4,359,887 1.2
BANKS-MONEY CENTER
Skandia Forsakrings AB Free ............................... SWDN 151,830 4,106,605 1.1
INSURANCE - MULTI-LINE
Internationale Nederlanden Groep N.V. ..................... NETH 58,027 3,883,925 1.0
OTHER FINANCIAL
Cardif S.A. ............................................... FR 33,196 3,788,397 1.0
INSURANCE - MULTI-LINE
AEGON N.V. ................................................ NETH 84,870 3,762,344 1.0
INSURANCE-LIFE
UNI Storebrand AS "A"-/- .................................. NOR 645,193 3,569,786 0.9
INSURANCE - MULTI-LINE
Invesco PLC ............................................... UK 868,400 3,417,783 0.9
INVESTMENT MANAGEMENT
Assicurazioni Generali S.p.A. ............................. ITLY 126,700 3,070,297 0.8
INSURANCE - MULTI-LINE
Land and House Co., Ltd. - Foreign ........................ THAI 185,000 3,041,700 0.8
REAL ESTATE
M & G Group PLC ........................................... UK 154,000 3,010,185 0.8
INVESTMENT MANAGEMENT
Thai Farmers Bank, Ltd. - Foreign ......................... THAI 261,000 2,632,804 0.7
BANKS-REGIONAL
Barclays PLC ............................................. UK 229,000 2,627,403 0.7
BANKS-MONEY CENTER
Mapfre Vida Seguros ....................................... SPN 43,289 2,570,563 0.7
INSURANCE-LIFE
Mercury Asset Management Group PLC ........................ UK 172,532 2,329,088 0.6
INVESTMENT MANAGEMENT
Corporacion Mapfre ........................................ SPN 40,330 2,258,480 0.6
INSURANCE - MULTI-LINE
National Westminster Bank PLC ............................. UK 185,500 1,867,672 0.5
BANKS-MONEY CENTER
Phatra Thanakit Co., Ltd. - Foreign ....................... THAI 133,800 1,147,768 0.3
INVESTMENT MANAGEMENT
Sanyo Shinpan Finance Co. ................................. JPN 1,600 131,783 --
CONSUMER FINANCE
------------
88,184,709
------------
Technology (9.4%)
Matsushita-Kotobuki Electronics Ltd. ...................... JPN 420,000 10,662,791 2.8
COMPUTERS & PERIPHERALS
Hosiden Electronics ....................................... JPN 740,000 6,381,783 1.7
COMPUTERS & PERIPHERALS
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-3
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Technology (Continued)
Kyushu-Matsushita Electric Co., Ltd. ...................... JPN 317,000 $ 5,467,636 1.4
COMPUTERS & PERIPHERALS
S.M.H. AG - Bearer ........................................ SWTZ 8,908 5,333,206 1.4
SEMICONDUCTORS
Keyence Corp. ............................................. JPN 31,000 3,574,612 0.9
INSTRUMENTATION & TEST
Koei Co., Ltd. ............................................ JPN 102,500 3,555,717 0.9
SOFTWARE
Logica PLC ................................................ UK 148,800 1,051,141 0.3
COMPUTERS & PERIPHERALS
------------
36,026,886
------------
Materials/Basic Industry (6.4%)
Broken Hill Proprietary Co., Ltd. ......................... AUSL 382,987 5,406,607 1.4
MISC. MATERIALS & COMMODITIES
Pilkington PLC: ........................................... UK -- -- 1.2
BUILDING MATERIALS & COMPONENTS
Common ................................................. -- 1,185,900 3,719,171 --
New ..................................................... -- 296,475 929,793 --
PT Semen Gresik - Foreign ................................. INDO 1,422,000 3,984,588 1.1
CEMENT
RWE AG .................................................... GER 9,006 3,266,002 0.9
MISC. MATERIALS & COMMODITIES
Amcor Ltd. ............................................... AUSL 346,282 2,444,222 0.6
PAPER/PACKAGING
Wickes PLC ................................................ UK 887,700 1,708,971 0.5
BUILDING MATERIALS & COMPONENTS
Siam Cement Co., Ltd. - Foreign ........................... THAI 30,000 1,663,225 0.4
CEMENT
Construcciones y Auxiliar de Ferrocarriles S.A. .......... SPN 32,848 1,164,919 0.3
BUILDING MATERIALS & COMPONENTS
------------
24,287,498
------------
Consumer Non-Durables (5.9%)
B.A.T. Industries PLC ..................................... UK 638,200 5,623,017 1.5
TOBACCO
Amway Japan Ltd. .......................................... JPN 121,700 5,141,589 1.4
HOUSEHOLD PRODUCTS
Polygram .................................................. NETH 81,259 4,322,719 1.1
RECREATION
Reliance Industries Ltd. - 144A GDR{.} -/- {\/} ........... IND 244,400 3,270,072 0.9
TEXTILES & APPAREL
South African Breweries Ltd. .............................. SAFR 50,099 1,835,153 0.5
BEVERAGES - ALCOHOLIC
Adidas AG-/- .............................................. GER 33,252 1,760,114 0.5
TEXTILES & APPAREL
------------
21,952,664
------------
Capital Goods (5.8%)
L.M. Ericsson Telephone Co. ............................... SWDN 226,708 4,440,901 1.2
TELECOM EQUIPMENT
Bic ....................................................... FR 41,740 4,251,257 1.1
OFFICE EQUIPMENT
Olivetti Group-/- ......................................... ITLY 4,696,250 3,804,407 1.0
OFFICE EQUIPMENT
Canon, Inc. ............................................... JPN 180,000 3,261,628 0.9
OFFICE EQUIPMENT
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-4
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Capital Goods (Continued)
Bouygues ................................................. FR 25,932 $ 2,616,271 0.7
CONSTRUCTION
Nokia AB "A" .............................................. FIN 64,164 2,480,167 0.7
TELECOM EQUIPMENT
Electrocomponents PLC ..................................... UK 136,600 762,424 0.2
ELECTRICAL PLANT/EQUIPMENT
------------
21,617,055
------------
Health Care (5.5%)
Takeda Chemical Industries ................................ JPN 500,000 8,236,434 2.2
PHARMACEUTICALS
Ciba-Geigy AG - Registered ................................ SWTZ 6,277 5,528,117 1.5
PHARMACEUTICALS
Medeva PLC ................................................ UK 834,800 3,499,395 0.9
PHARMACEUTICALS
Sankyo Co., Ltd. .......................................... JPN 153,000 3,439,535 0.9
PHARMACEUTICALS
------------
20,703,481
------------
Energy (4.4%)
Sasol Ltd. ................................................ SAFR 500,000 4,095,212 1.1
ENERGY SOURCES
North West Water PLC ...................................... UK 389,900 3,728,899 1.0
ENERGY SOURCES
Electrabel S.A. ........................................... BEL 15,059 3,604,739 1.0
ELECTRICAL & GAS UTILITIES
Korea Electric Power Corp.-/- ............................. KOR 55,050 2,360,685 0.6
ELECTRICAL & GAS UTILITIES
Oil Search Ltd. ........................................... AUSL 2,302,000 1,984,040 0.5
OIL
Compania Sevillana de Electricidad ........................ SPN 118,790 922,888 0.2
ELECTRICAL & GAS UTILITIES
Polifin Ltd.-/- .......................................... SAFR 105,000 168,542 --
ENERGY SOURCES
------------
16,865,005
------------
Consumer Durables (2.7%)
Samsung Electronics Co.: .................................. KOR -- -- 1.5
CONSUMER ELECTRONICS
Preferred-/- ............................................ -- 22,803 2,645,701 --
Common ................................................. -- 8,816 1,602,496 --
Preferred New-/- ........................................ -- 6,491 739,725 --
New - GDR Non-Voting-/- {\/} ............................ -- 9,220 539,370 --
New-/- .................................................. -- 1,744 307,499 --
New - 144A GDR{.} -/- {\/} .............................. -- 1,826 175,296 --
New - GDR Voting-/- {\/} ................................ -- 1,098 105,408 --
New 2-/- ................................................ -- 494 87,101 --
GDR 1/2 Voting-/- {\/} .................................. -- 630 60,480 --
PSA Peugeot Citroen S.A. .................................. FR 21,205 2,801,601 0.7
AUTOMOBILES
Kiekert AG-/- ............................................ GER 29,070 1,727,292 0.5
AUTO PARTS
------------
10,791,969
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-5
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Multi Industry/Miscellaneous (2.5%)
Barlow Ltd. ............................................... SAFR 300,000 $ 4,280,423 1.1
CONGLOMERATE
Citic Pacific Ltd. ........................................ HK 535,000 1,830,154 0.5
CONGLOMERATE
Hutchison Whampoa ......................................... HK 295,000 1,797,012 0.5
CONGLOMERATE
United Industrial Corp. ................................... SING 1,726,000 1,696,704 0.4
CONGLOMERATE
------------
9,604,293
------------ -----

TOTAL EQUITY INVESTMENTS (cost $306,331,543) ................ 345,233,793 91.1
------------ -----
<CAPTION>

Principal Market % of Net
Fixed Income Investments Currency Amount Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (0.1%)
Thailand (0.1%)
Siam Syntech Construction Co., Convertible Bond, 4.5% due
2/25/02 (cost $310,000) ................................ USD 310,000 145,700 0.1
------------ -----
<CAPTION>

No. of Market % of Net
Warrants (0.0%) Country Warrants Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<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 {d}
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust
Company, due January 2, 1996, for an effective yield of
5.55%, collateralized by $12,790,000 U.S. Treasury Notes,
due 8/31/97 (market value of collateral is $13,201,082,
including accrued interest). (cost $12,939,982) ......... 12,939,982 3.4
------------ -----

TOTAL INVESTMENTS (cost $319,624,528) * ..................... 358,319,475 94.6
Other Assets and Liabilities ................................ 20,531,764 5.4
------------ -----

NET ASSETS .................................................. $378,851,239 100.0
------------ -----
------------ -----
</TABLE>

- ----------------

{d} Percentages indicated are based on net assets of $378,851,239.
-/- Non-income producing security.
{\/} U.S. currency denominated.
{.} 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 $321,085,734 and
appreciation (depreciation) is as follows:

Unrealized appreciation: $ 54,428,631
Unrealized depreciation: (17,194,890)
-------------
Net unrealized appreciation: $ 37,233,741
-------------
-------------

Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt

The accompanying notes are an integral part of the financial statements.

F-6
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

The Fund's Portfolio of Investments at December 31, 1995, 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) ................. 3.7 3.7
Belgium (BEL/BEF) ................... 1.0 1.0
Finland (FIN/FIM) .................... 0.7 0.7
France (FR/FRF) ...................... 5.0 5.0
Germany (GER/DEM) .................... 1.9 1.9
Hong Kong (HK/HKD) ................... 2.4 2.4
India (IND/INR) ...................... 0.9 0.9
Indonesia (INDO/IDR) ................. 1.2 1.2
Italy (ITLY/ITL) ..................... 2.4 2.4
Japan (JPN/JPY) ...................... 26.7 26.7
Korea (KOR/KRW) ...................... 2.1 2.1
Netherlands (NETH/NLG) ............... 7.6 7.6
Norway (NOR/NOK) ..................... 0.9 0.9
Singapore (SING/SGD) ................. 1.7 1.7
South Africa (SAFR/ZAR) .............. 2.7 2.7
Spain (SPN/ESP) ...................... 3.4 3.4
Sweden (SWDN/SEK) .................... 3.8 3.8
Switzerland (SWTZ/CHF) ............... 4.3 4.3
Thailand (THAI/THB) .................. 3.5 0.1 3.6
United Kingdom (UK/GBP) .............. 15.2 15.2
United States (US/USD) ............... 8.8 8.8
------ --- --- -----
Total ............................... 91.1 0.1 8.8 100.0
------ --- --- -----
------ --- --- -----
<FN>
- ----------------
{d} Percentages indicated are based on net assets of $378,851,239.
</TABLE>

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1995

<TABLE>
<CAPTION>
Market Value
(U.S. Contract Delivery Appreciation
Contracts to Buy: Dollars) Price Date (Depreciation)
- ---------------------------------------------------------------------------- ------------- ----------- --------- -------------
<S> <C> <C> <C> <C>
Japanese Yen................................................................ 9,884,094 102.48790 02/14/96 $ (220,150)
------------- -------------
Total Contracts to Buy (Payable amount $10,104,244)....................... 9,884,094 (220,150)
------------- -------------
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 2.61%

Contracts to Sell:
- ----------------------------------------------------------------------------
French Francs............................................................... 2,046,943 4.86000 02/06/96 10,670
French Francs............................................................... 8,187,772 4.91125 02/06/96 (43,206)
French Francs............................................................... 2,456,691 4.88280 02/16/96 915
Japanese Yen................................................................ 23,888,800 101.50000 02/09/96 249,131
Japanese Yen................................................................ 15,600,849 101.40000 02/09/96 178,244
Japanese Yen................................................................ 23,285,676 99.00000 02/14/96 820,384
Netherland Guilders......................................................... 7,389,261 1.58068 02/15/96 75,880
Netherland Guilders......................................................... 4,446,081 1.58000 02/15/96 47,590
Netherland Guilders......................................................... 3,882,493 1.60472 02/15/96 (18,890)
Swedish Krona............................................................... 6,038,739 6.60950 02/22/96 50,980
Swiss Francs................................................................ 11,892,708 1.15258 03/19/96 (101,770)
------------- -------------
Total Contracts to Sell (Receivable amount $110,385,941).................. 109,116,013 1,269,928
------------- -------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 28.80%

Total Open Forward Foreign Currency Contracts, Net........................ $ 1,049,778
-------------
-------------
</TABLE>

- ----------------
See Note 1 to the financial statements.

The accompanying notes are an integral part of the financial statements.

F-7
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

STATEMENT OF ASSETS
AND LIABILITIES

December 31, 1995

- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $319,624,528)
(Note 1)................................................. $358,319,475
U.S. currency.............................. $ 814
Foreign currencies (cost $3,646,192)....... 3,671,650 3,672,464
----------
Receivable for Fund shares sold........................... 18,130,532
Receivable for securities sold............................ 3,441,582
Receivable for open forward foreign currency contracts,
net (Note 1)............................................. 1,049,778
Dividends and dividend withholding tax reclaims
receivable............................................... 904,586
Interest receivable....................................... 11,857
Cash held as collateral for securities loaned (Note 1).... 18,709,722
------------
Total assets............................................ 404,239,996
------------
Liabilities:
Payable for securities purchased.......................... 3,482,185
Payable for Fund shares repurchased....................... 2,426,740
Payable for investment management and administration fees
(Note 2)................................................. 304,119
Payable for service and distribution expenses (Note 2).... 147,186
Payable for printing and postage expenses................. 125,252
Payable for transfer agent fees........................... 75,866
Payable for professional fees............................. 32,169
Payable for custodian fees (Note 1)....................... 21,373
Payable for registration and filing fees.................. 14,184
Payable for fund accounting fees (Note 2)................. 7,781
Payable for Trustees' fees and expenses (Note 2).......... 5,164
Other accrued expenses.................................... 37,016
Collateral for securities loaned (Note 1)................. 18,709,722
------------
Total liabilities....................................... 25,388,757
------------
Net assets.................................................. $378,851,239
------------
------------
Class A:
Net asset value and redemption price per share
($308,816,401 DIVIDED BY 33,994,719 shares outstanding).... $ 9.08
------------
------------
Maximum offering price per share
(100/95.25 of $9.08) *..................................... $ 9.53
------------
------------
Class B:+
Net asset value and offering price per share
($69,654,073 DIVIDED BY 7,814,991 shares outstanding)...... $ 8.91
------------
------------
Advisor Class: (Note 1 & 4)
Net asset value, offering price per share, and redemption
price per share
($380,765 DIVIDED BY 41,815 shares outstanding)............ $ 9.11
------------
------------
Net assets consist of:
Paid in capital (Note 4).................................. $343,057,435
Accumulated net realized loss on investments and foreign
currency transactions.................................... (3,964,587)
Net unrealized appreciation on translation of assets and
liabilities in foreign currencies........................ 1,063,444
Net unrealized appreciation of investments................ 38,694,947
------------
Total -- representing net assets applicable to capital
shares outstanding......................................... $378,851,239
------------
------------
<FN>
- ----------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-8
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

STATEMENT OF OPERATIONS

Year ended December 31, 1995

- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of
$1,361,001)............................................... $6,759,232
Interest income............................................ 1,273,947
----------
Total investment income.................................. 8,033,179
----------
Expenses:
Investment management and administration fees.............. 4,027,923
Service and distribution expenses: (Note 2)
Class A.................................. $ 1,206,618
Class B.................................. 681,752 1,888,370
-----------
Transfer agent fees........................................ 965,711
Custodian fees (Note 1).................................... 395,778
Printing and postage expenses.............................. 273,691
Fund accounting fees (Note 2).............................. 102,559
Audit fees................................................. 58,500
Registration and filing fees............................... 39,374
Legal fees................................................. 32,346
Trustees' fees and expenses (Note 2)....................... 6,625
Insurance expenses......................................... 6,419
----------
Total expenses before reductions......................... 7,797,296
----------
Expense reductions (Note 1 & 5)........................ (319,478)
----------
Total net expenses....................................... 7,477,818
----------
Net investment income........................................ 555,361
----------
Net realized and unrealized gain on
investments and foreign currencies: (Note 1)
Net realized gain on investments........... 5,147,147
Net realized loss on foreign currency
transactions.............................. (4,165,066)
-----------
Net realized gain during the year........................ 982,081
Net change in unrealized appreciation on
translation of assets and liabilities in
foreign currencies........................ 247,497
Net change in unrealized appreciation of
investments............................... 7,882,538
-----------
Net unrealized appreciation during the year.............. 8,130,035
----------
Net realized and unrealized gain on investments and foreign
currencies.................................................. 9,112,116
----------
Net increase in net assets resulting from operations......... $9,667,477
----------
----------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-9
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

STATEMENT OF CHANGES IN NET ASSETS

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
Decrease in net assets
Operations:
Net investment income (loss)............... $ 555,361 $ (618,214)
Net realized gain on investments and
foreign currency transactions............. 982,081 66,237,292
Net change in unrealized appreciation
(depreciation) on translation of assets
and liabilities in foreign currencies..... 247,497 (4,100,341)
Net change in unrealized appreciation
(depreciation) of investments............. 7,882,538 (100,302,042)
----------------- -----------------
Net increase (decrease) in net assets
resulting from operations............... 9,667,477 (38,783,305)
----------------- -----------------
Class A:
Distributions to shareholders:
From net investment income................. -- (1,684,749)
From net realized gain on investments...... (7,612,428) (40,336,515)
In excess of net realized gain on
investments............................... (6,510,219) --
Class B:
Distributions to shareholders:
From net investment income................. -- (280,442)
From net realized gain on investments...... (1,774,209) (6,714,382)
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) (49,016,088)
----------------- -----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested................................ 1,294,676,738 1,036,090,550
Decrease from capital shares repurchased... (1,410,555,957) (999,937,817)
----------------- -----------------
Net increase (decrease) from capital
share transactions...................... (115,879,219) 36,152,733
----------------- -----------------
Total decrease in net assets................. (123,644,132) (51,646,660)
Net assets:
Beginning of year.......................... 502,495,371 554,142,031
----------------- -----------------
End of year................................ $ 378,851,239 $ 502,495,371
----------------- -----------------
----------------- -----------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-10
<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>
CLASS A+
---------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
1995 1994 1993 (A) 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.17 $ 11.02 $ 8.21 $ 8.74 $ 7.82
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income (loss).......... 0.03 (0.04) 0.03 0.11 0.14
Net realized and unrealized gain
(loss) on investments................ 0.32 (0.82) 2.78 (0.62) 0.89
----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
investment operations.............. 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.......... $ 9.08 $ 9.17 $ 11.02 $ 8.21 $ 8.74
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Total investment return (d)............. 3.88% (7.78)% 34.2% (5.8)% 13.2%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 308,816 $ 430,701 $ 523,397 $ 421,693 $ 463,851
Ratio of net investment income (loss) to
average net assets..................... 0.24% (0.04)% 0.3% 1.2% 1.5%
Ratio of expenses to average net assets:
With expense reductions............... 1.70% 1.70% 1.80% 1.90% 1.90%
Without expense reductions............ 1.78% 1.75% --%* --%* --%*
Portfolio turnover rate++++............. 75% 96% 90% 89% 83%
</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 is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(a) Calculated based upon weighted average shares outstanding during the
period.
(b) Not annualized.
(c) Annualized.
(d) Total investment return does not include sales charges.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.

The accompanying notes are an integral part of the financial statements.

F-11
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

FINANCIAL HIGHLIGHTS (CONT'D)

<TABLE>
<CAPTION>
ADVISOR
CLASS B++ CLASS+++
---------------------------------------- --------------
APRIL 1, 1993 JUNE 1, 1995
YEAR ENDED DECEMBER 31, TO TO
------------------------- DECEMBER 31, DECEMBER 31,
1995 1994 1993 (A) 1995
---------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.07 $ 10.98 $ 8.74 $ 8.49
---------- ------------- ------------- -------
Income from investment operations:
Net investment income (loss).......... (0.04) (0.10) (0.01) 0.03
Net realized and unrealized gain
(loss) on investments................ 0.32 (0.82) 2.25 1.03
---------- ------------- ------------- -------
Net increase (decrease) from
investment operations.............. 0.28 (0.92) 2.24 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.......... $ 8.91 $ 9.07 $ 10.98 $ 9.11
---------- ------------- ------------- -------
---------- ------------- ------------- -------
Total investment return (d)............. 3.15% (8.36)% 25.6 %(b) 12.56 %(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 69,654 $ 71,794 $ 30,745 $ 381
Ratio of net investment income (loss) to
average net assets..................... (0.41)% (0.69)% (0.4)%(c) 0.59 %(c)
Ratio of expenses to average net assets:
With expense reductions............... 2.35% 2.35 % 2.40 %(c) 1.35 %(c)
Without expense reductions............ 2.43% 2.40 % -- %* 1.43 %(c)
Portfolio turnover rate++++............. 75% 96 % 90 % 75 %
</TABLE>

- ----------------

The accompanying notes are an integral part of the financial statements.

F-12
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

NOTES TO
FINANCIAL STATEMENTS

December 31, 1995

- --------------------------------------------------------------------------------

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. The Fund
commenced sale of Advisor Class shares on June 1, 1995. Investment income,
realized and unrealized capital gains and losses, and the common expenses of the
Fund are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the Fund. Each class of shares
differs in its respective distribution 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,
therefore, 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", formerly G.T. Capital Management, Inc.) 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 at amortized cost, adjusted for foreign exchange translation
and market fluctuation, if any.

Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Trustees.

(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, other assets and liabilities
are recorded in the books and records of the Fund after translation to U.S.
dollars based on the exchange rates on that day. The cost of each security is
determined using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when earned or incurred.

The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains and losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end, resulting from changes in exchange rates.

F-13
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

(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 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.

F-14
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

(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 December 31, 1995, stocks with an aggregate value of approximately
$17,499,956 were on loan to brokers. The loans were secured by cash collateral
of $18,709,722, 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 year ended December 31, 1995,
the Fund received securities lending fees of $175,653 which were used to reduce
custodian fees.

(I) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, or excise tax on income
and capital gains.

(J) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.

(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments in emerging market
countries may involve greater risks than investments in more developed markets,
and the prices of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.

(L) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed restricted securities. These
securities may be resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.

(M) INDEXED SECURITIES
The Fund may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.

2. RELATED PARTIES
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 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. ("GT Global", formerly known as G.T. Global Financial Services,
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 year ended December 31, 1995, GT Global retained $50,454
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

F-15
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND
Global collected CDSCs in the amount of $32,049 for the year ended December 31,
1995. 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 December 31, 1995, GT Global collected CDSCs
in the amount of $297,910. 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%, and 2.90%, and 1.90% of the average daily net
assets of the Fund's Class A, Class B, and Advisor Class shares, respectively.
If necessary, this limitation will be effected by waivers by 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 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.

Effective July 1, 1995, LGT has assumed the role of 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 ("GT Funds") and 0.02% to the assets in
excess of $5 billion and dividing the result by the aggregate assets of the GT
Funds. For the period ended December 31, 1995, the Fund paid fund accounting
fees of $40,655 to LGT.

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 year ended December 31, 1995, purchases and sales of investment
securities by the Fund, other than U.S. government obligations and short-term
investments, aggregated $289,373,330 and $425,782,128, respectively. There were
no purchases or sales of U.S. government obligations by the Fund during the
period.

F-16
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

4. CAPITAL SHARES
At December 31, 1995, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the Fund
were as follows:

CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold............................................................ 140,096,147 $ 1,244,115,581 86,542,390 $ 926,900,205
Shares issued in connection with reinvestment of distributions......... 1,274,450 11,483,253 3,799,540 34,613,815
------------ --------------- ----------- -------------
141,370,597 1,255,598,834 90,341,930 961,514,020
Shares repurchased..................................................... (154,325,977) (1,370,898,171) (90,893,714) (979,657,620)
------------ --------------- ----------- -------------
Net decrease........................................................... (12,955,380) $ (115,299,337) (551,784) $ (18,143,600)
------------ --------------- ----------- -------------
------------ --------------- ----------- -------------

YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS B
Shares sold............................................................ 4,065,880 $ 35,727,913 6,350,365 $ 68,347,089
Shares issued in connection with reinvestment of distributions......... 329,999 2,917,198 691,392 6,229,441
------------ --------------- ----------- -------------
4,395,879 38,645,111 7,041,757 74,576,530
Shares repurchased..................................................... (4,499,678) (39,592,887) (1,924,260) (20,280,197)
------------ --------------- ----------- -------------
Net increase (decrease)................................................ (103,799) $ (947,776) 5,117,497 $ 54,296,333
------------ --------------- ----------- -------------
------------ --------------- ----------- -------------
</TABLE>

<TABLE>
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT OF
SALE OF SHARES)
TO DECEMBER 31, 1995
--------------------------
SHARES AMOUNT
----------- -------------
<S> <C> <C>
ADVISOR CLASS
Shares sold............................................................ 47,423 $ 417,842
Shares issued in connection with reinvestment of distributions......... 1,656 14,951
----------- -------------
49,079 432,793
Shares repurchased..................................................... (7,264) (64,899)
----------- -------------
Net increase........................................................... 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 year ended December 31, 1995, the Fund's expenses were
reduced by $143,825 under these arrangements.

6. COVERED CALL OPTIONS WRITTEN
The Fund's written options contracts activity for the year ended December 31,
1995 was as follows:

<TABLE>
<CAPTION>
UNDERLYING NOMINAL
AMOUNT IN USD PREMIUMS
------------------ ----------
<S> <C> <C>
Options outstanding at December 31, 1994......................................................... 140,000,000 $3,934,000
Options written during the year ended December 31, 1995.......................................... -- --
Options cancelled in closing purchase transactions (loss of $2,317,000 realized)................. (140,000,000) (3,934,000)
Options expired prior to exercise................................................................ -- --
Options exercised................................................................................ -- --
------------------ ----------
Options outstanding at December 31, 1995......................................................... 0 $ 0
------------------ ----------
------------------ ----------
</TABLE>

- --------------
FEDERAL TAX INFORMATION (UNAUDITED):

Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$17,432,389 as capital gain dividends for the fiscal year ended December 31,
1995.

F-17
<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