<PAGE>
LGT ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
ALLOCATOR
SEMIANNUAL REPORT
JUNE 30, 1996
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Reports on the
Funds................ 1
Funds'
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>
UNDERSTANDING THE PERFORMANCE TABLES
The performance data shown in the upper left hand corner of each report are for
the GT Global Variable Investment Divisions available in the GT Global Allocator
variable annuity issued by General American Life Insurance Company and for their
corresponding GT Global Variable Investment Funds, which are the underlying
investment vehicles for the Divisions. Division performance reflects Fund
performance, less the 1.4% annuity charges (mortality and expense risk, and
administrative charges), but not the $30 administration fee for contracts less
than $20,000. Division performance which reflects the surrender charge (maximum
6% in the first year, decreasing 1% annually thereafter) assumes a complete
withdrawal at the end of the period noted. Fund performance reflects all Fund
expenses but not the charges and expenses of the separate account described
above.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate; therefore, an investor's units, when
surrendered, may be worth more or less than their original cost. From time to
time, the investment advisor may waive some fees and/or reimburse some expenses,
without which performance would be lower. Waivers and/or reimbursements are
subject to change.
Fund holdings and geographic allocations will change as market conditions
change.
GT GLOBAL, INC., DISTRIBUTOR.
<PAGE>
GT GLOBAL
VARIABLE STRATEGIC INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 8.39% 14.39%
Life of Fund 6.94% 7.68%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 15.99%
Life of Fund 9.20%
</TABLE>
PERFORMANCE
For the six months ended June 30, 1996, the Fund's total return was 6.61%. Total
return over the same investment period was -1.16% for the J.P. Morgan Global
Government Bond Index(1) and 13.39% for the J.P. Morgan EMBI (Brady) Index.(2)
MARKET REVIEW
Global bond markets rallied strongly throughout most of 1995 due to weakening
economic growth. However, at the start of 1996, concerns about stronger economic
growth in the three core markets -- the U.S., Germany and Japan -- caused global
bond yields to rise. The largest increase in yields was in the U.S., where
stronger employment aroused investor fears about wage inflation.
More importantly, though, the Japanese yen and the core European currencies
weakened significantly against the dollar. Hence, the returns of some of the
core bond markets in U.S. dollar terms were poor.
The environment for higher-yielding markets was much more friendly. Moderate
inflation rates and low economic activity, as well as an increased investor
appetite for yield, led to strong outperformance by higher-yielding European
markets, such as Italy and Spain, and emerging markets. The Fund benefited from
its exposure to these markets.
Overall, the Fund's performance was buoyed by strength in the emerging fixed
income markets. As the effects of the Mexican crisis were absorbed, we think
emerging market fundamentals have been strengthened by strict adherence to
critical reform programs. The two economies that suffered the most, Mexico and
Argentina, seem to be demonstrating positive signs of economic growth.
Elsewhere, while some uncertainties remain about Brazil's commitment to reform,
we believe most of the bad news has already been priced into the market. As a
result, with a fairly large spread, many investors are returning. Finally, a
significant event for the emerging fixed income markets was the rerating of
Polish bonds to investment grade -- a first for Brady bonds.
OUTLOOK
In the second half of the year, we believe the increase in yields should
moderate because of declining oil prices and the lack of strong inflation
pressures. As a matter of fact, in our opinion, real yields approaching 3 3/4%
(assuming an inflation rate of 3.25%) present fair value for the U.S. market. In
Germany, we believe economic activity may pick up over the second half, however,
the economy will remain well below potential and capital utilization will still
be very low. We think more attractive opportunities exist elsewhere. In the
developed markets, we believe the UK, Italy and Denmark offer value and
improving fundamentals.
In emerging markets we believe considerable value and growth potential continue
against a backdrop of accommodative monetary policy in the global arena, with
the exception of the U.S. We have raised exposure (in terms of spread duration)
to emerging market debt while maintaining an underweighted U.S. interest rate
exposure. In particular, we are overweighted in Russian and Brazilian debt. We
find Russia especially attractive as their fundamentals are much improved, while
we expect the Brazilian fiscal situation to continue to improve with moderate
growth and inflation.
Overall, we believe the value of emerging countries, based on the policies being
implemented and the growth potential, is outstanding. In other words, the spread
between yields in these markets and U.S. treasuries is very appealing and, in
our view, fully prices in any risk these economies could turn sour. Even if U.S.
treasuries rise, as long as they do so in a moderate fashion, emerging markets
could still do extremely well. There may be hiccups along the way, but we
believe investors ultimately return to value, and value is the fundamental story
in emerging markets as long as they continue their current paths of reform.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE JPM GLOBAL SALOMON BROS. WORLD JP MORGAN
STRATEGIC INCOME GOVERNMENT BOND GOVERNMENT BOND EMBI
<S> <C> <C> <C> <C>
2/10/93 10,000 10,000 10,000 10,000
10,008 10,209 10,215 10,118
10,078 10,366 10,371 10,646
10,082 10,555 10,591 10,860
10,143 10,622 10,697 11,229
10,521 10,630 10,674 11,622
10,871 10,635 10,704 12,106
11,459 10,950 11,026 12,349
11,502 11,065 11,157 12,511
12,168 11,060 11,138 13,565
11,986 10,979 11,058 13,429
12,755 11,092 11,152 14,249
12,842 11,196 11,242 14,288
11,553 11,073 11,169 13,099
10,506 11,022 11,153 11,601
10,396 11,014 11,165 11,606
10,569 10,923 11,067 12,408
10,447 11,052 11,227 11,409
10,482 11,156 11,317 11,689
10,856 11,127 11,277 12,524
9/30/94 11,053 11,183 11,359 12,647
10,975 11,350 11,541 12,289
10,878 11,207 11,382 12,414
10,575 11,233 11,414 11,588
10,487 11,461 11,653 11,187
10,438 11,756 11,952 10,604
10,579 12,354 12,661 10,304
11,130 12,551 12,896 11,411
11,584 12,901 13,259 12,416
11,615 12,982 13,337 12,657
11,614 13,043 13,368 12,666
11,614 12,681 12,909 12,965
11,884 12,966 13,197 13,411
11,946 13,093 13,295 13,274
12,233 13,239 13,446 13,738
12,637 13,403 13,587 14,779
13,170 13,265 13,419 16,081
12,686 13,188 13,350 14,951
12,804 13,168 13,332 15,334
13,109 13,119 13,279 16,106
13,273 13,132 13,282 16,306
6/30/96 13,472 13,247 13,386 16,758
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices shown above for the same period. It assumes a hypothetical
$10,000 initial investment in the Fund and reflects all Fund expenses but not
charges and expenses of the separate account. Past performance is no guarantee
of future results.
(1) The J.P. Morgan Global Government Bond Index is an arithmetic average,
weighted by market value, of government bonds from 13 major bond markets. It
includes the effect of reinvested coupons and is measured in U.S. dollars.
The Fund has changed benchmarks from indices provided by Salomon Brothers to
indices provided by J.P. Morgan. The J.P. Morgan indices use weightings
based on liquidity, therefore, we consider them a better reflection of the
investment opportunities available to the Fund.
(2) The J.P. Morgan EMBI (Brady) Index is an arithmetic average, weighted by
market value, of Brady bonds from nine emerging bond markets. It includes
the effect of reinvested coupons and is measured in U.S. dollars.
The indices are not available for investment and their performance does not
include the effects of sales charges and professional management fees.
1
<PAGE>
GT GLOBAL
VARIABLE GLOBAL GOVERNMENT INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year -4.76% 1.24%
Life of Fund 1.60% 2.44%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 2.66%
Life of Fund 3.87%
</TABLE>
PERFORMANCE
The Fund's total return for the six months ended June 30, 1996, was
- -1.60%. Total return for the J.P. Morgan Global Government Bond Index(1) over
the same period was -1.16%.
MARKET REVIEW
At the start of 1996 concerns about stronger economic growth in the three core
markets -- the U.S., Germany and Japan -- caused global bond yields to rise
sharply. The Fund's performance suffered accordingly as yields rose and prices
dropped.
The largest increase in yields was in the U.S., where stronger employment raised
investors fears about wage inflation. The increase in German and Japanese bond
yields was generally less than in the U.S. Yields in these markets rose based
primarily on the perception that interest rates had bottomed. More importantly,
though, the Japanese yen and the core European currencies weakened significantly
against the dollar. Hence, the returns of some of the major bond markets in U.S.
dollar terms were generally poor.
European markets performed relatively well after an initial sharp selloff in
February. Within Europe most markets outperformed Germany, with the
higher-yielding peripheral markets performing the best. So while foreign markets
outperformed the U.S., smaller European markets outperformed the larger ones. In
fact, Italian and Spanish bond yields fell to new lows. The peripheral European
markets were helped by falling short-term rates in Germany and weakness in the
DM, both were a result of the weakness in the German economy.
Since April, we've seen markets stabilize and basically an end to the
convergence story in Europe, with little movement in Swedish, Italian and
Spanish spreads over Germany. However, there has been some moderate
outperformance in Australia and Canada.
OUTLOOK
Going forward, our overall outlook for bonds is neutral. In the U.S., while
economic growth has been moderate, growth could possibly strengthen. The problem
is that after several years of reasonable growth the economy has very little
spare capacity. This means stronger growth could quickly feed into inflation. So
in light of the tight labor market and high capacity utilization, we currently
plan to remain underweighted in the U.S. versus Europe, although the U.S. has
soldoff considerably and we believe there is currently some value to be found.
We believe Germany looks to have good value relative to the U.S. The economy is
weak, inflation is low, the yield curve steep, and real yields are high. While
we believe the German economy is likely to strengthen later in the year, the
Bundesbank is not expected to raise rates for some time. This is because, in
contrast to the U.S., German unemployment is high and there is much spare
capacity in German industry.
In Europe, most of the general non-German outperformance may be over but we are
finding selective opportunities for yield enhancement. Over the medium term we
expect the European bond markets to do better than the U.S.
The Japanese market continues to behave independently of the rest of the world,
although there are definite signs the Japanese economy is starting to grow. The
Bank of Japan is trying to reflate the economy by keeping short rates very low
and weakening the yen. Meanwhile, the government continues to run a very large
budget deficit. All of this provides support to our bearish view over the long
term. Over the shorter term, however, low money market-term rates coupled with a
steep yield curve are helping hold down long-term yields.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE
GLOBAL JPM GLOBAL SALOMON BROS. WORLD
GOVERNMENT INCOME GOVERNMENT BOND GOVERNMENT BOND
<S> <C> <C> <C>
2/10/93 10,000 10,000 10,000
10,008 10,209 10,126
9,935 10,366 10,281
9,952 10,555 10,498
10,011 10,622 10,604
10,239 10,630 10,581
10,319 10,635 10,611
10,664 10,950 10,930
10,642 11,065 11,060
10,820 11,060 11,041
10,707 10,979 10,962
10,925 11,092 11,055
11,030 11,196 11,144
10,511 11,073 11,071
10,228 11,022 11,055
10,049 11,014 11,068
9,846 10,923 10,971
10,023 11,052 11,129
10,084 11,156 11,218
9,999 11,127 11,179
9/30/94 10,034 11,183 11,260
10,227 11,350 11,440
10,162 11,207 11,283
9,975 11,233 11,314
10,078 11,461 11,552
10,309 11,756 11,847
10,626 12,354 12,551
10,877 12,551 12,784
11,112 12,901 13,143
11,076 12,982 13,221
11,089 13,043 13,252
10,887 12,681 12,796
11,067 12,966 13,082
11,196 13,093 13,180
11,376 13,239 13,329
11,556 13,403 13,468
11,556 13,265 13,302
11,323 13,188 13,234
11,293 13,168 13,216
11,277 13,119 13,163
11,262 13,132 13,166
6/30/96 11,371 13,247 13,269
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices for the same time period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The J.P. Morgan Global Government Bond Index is an arithmetic average,
weighted by market value, of government bonds from 13 major bond markets. It
includes the effect of reinvested coupons and is measured in U.S. dollars.
The Fund has changed benchmarks from indices provided by Salomon Brothers to
indices provided by J.P. Morgan. Because the J.P. Morgan indices use
weightings based on liquidity, we consider them a better reflection of
investment opportunities available to the Fund.
The index is not available for investment and does not include the effects of
sales charges and professional management fees.
2
<PAGE>
GT GLOBAL
VARIABLE U.S. GOVERNMENT INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year -4.35% 1.65%
Life of Fund 1.15% 2.01%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 3.08%
Life of Fund 3.44%
</TABLE>
PERFORMANCE
The Fund's total return for the six month period ended June 30, 1996, was
- -1.97%. Total return for the J.P. Morgan U.S. Government Bond Index(1) over the
same period was -1.44%.
MARKET REVIEW
Overall, global bond markets turned in a mixed performance in the first half of
1996. U.S. Treasury yields climbed from 6% to almost 7% on the back of
higher-than-expected economic growth, and the Fund's performance suffered as a
result. Meanwhile, yields in the European high-interest countries fell by an
average of 50 basis points (100 bp equal 1%). We believe this mixed trend can be
attributed to a worldwide diverging economic trend. While economic forecasts in
Europe for 1996 are still being revised downward, many economists are concerned
about the surprisingly fast pace of U.S. growth. The U.S. economy endured a cold
winter and suffered production losses due to strikes and a decline in
inventories and still enjoyed healthy growth at the beginning of the year.
In February the leading indicators rose significantly, and stronger-than-
expected job growth suggested U.S. companies were optimistic. Indicators of
consumer confidence -- the purchasing managers' index and construction -- point
to a marked acceleration of growth. The reduction in inventories, which put
considerable pressure on the economy last year, seems to have been completed,
setting the stage for a significant increase in industrial production.
We believe the economic slump in Japan may abate for the short-term. Even in
Europe, early economic indicators suggest the sharp downturn has ground to a
halt, although some are still skeptical about signs of recovery.
MARKET OUTLOOK
In the near term, we expect the market to consolidate. We believe fair value is
seen at 6.75% (10-year yields), implying a forward-looking real yield of around
4%. The U.S. economy continues to grow above the long-term potential growth rate
which, given capacity constraints and full employment, still leads to inflation
fears.
Despite the dollar's considerably higher external value, our outlook for exports
remains positive. We believe the surge in imports that typically accompanies a
recovery in the U.S. should strengthen the economies of trading partners. But,
at the same time, it is likely to put pressure on the U.S. trade deficit. The
present outlook for inflation is still relatively favorable, in our opinion, and
improved competitiveness of U.S. companies, fierce competition due to market
globalization and the stable U.S. dollar should act as brakes on prices.
However, we think the increase should be limited after the strong rise in U.S.
yields in the first half of 1996.
Going forward, the Fund's duration may be reduced further largely in
anticipation of a strengthening economic recovery in the third and fourth
quarters. We believe U.S. yields should slightly increase in the medium term.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE JP MORGAN SALOMON
US GOVERNMENT SECURITIES US GOVERNMENT BOND US GOVERNMENT BOND
<S> <C> <C> <C>
2/10/93 10,000 10,000 10,000
10,008 10,195 10,205
9,932 10,230 10,232
9,973 10,314 10,321
9,977 10,291 10,305
10,188 10,501 10,535
10,286 10,551 10,597
10,933 10,767 10,831
10,916 10,812 10,880
10,992 10,847 10,908
10,656 10,745 10,789
10,638 10,792 10,837
10,891 10,928 10,986
10,444 10,711 10,757
10,110 10,501 10,509
9,994 10,420 10,429
9,963 10,414 10,420
9,963 10,399 10,400
10,107 10,569 10,579
10,125 10,583 10,583
10/30/94 9,980 10,457 10,437
9,953 10,451 10,427
9,925 10,420 10,402
9,971 10,479 10,473
10,129 10,661 10,677
10,296 10,886 10,899
10,343 10,958 10,964
10,446 11,092 11,104
10,805 11,504 11,557
10,880 11,596 11,645
10,832 11,564 11,605
10,947 11,688 11,735
11,034 11,792 11,840
11,168 11,958 12,025
11,304 12,136 12,220
11,440 12,296 12,390
11,519 12,381 12,470
11,313 12,155 12,223
11,204 12,063 12,114
11,113 11,997 12,020
11,090 11,981 12,017
6/30/96 11,215 12,119 12,167
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not expenses
and charges of the separate account. Past performance is no guarantee of future
results.
(1) The J.P. Morgan U.S. Government Bond Index is a market capitalization
weighted index of U.S. Treasury issues with remaining maturities of at least
one year. All returns are calculated with reinvested coupons and are
expressed in U.S. dollar terms. The Fund has changed benchmarks from indices
provided by Salomon Brothers to indices provided by J.P. Morgan. The J.P.
Morgan indices use weightings based on liquidity, therefore, we consider
them a better reflection of investment opportunities available to the Fund.
The index is not available for investment and does not include the effects of
sales charges and professional management fees.
3
<PAGE>
GT GLOBAL
VARIABLE LATIN AMERICA FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 4.18% 10.18%
Life of Fund 8.45% 9.18%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 11.73%
Life of Fund 10.71%
</TABLE>
PERFORMANCE
The Fund's total return for the six months ended June 30, 1996, was 15.69%,
compared to 17.49% for the Morgan Stanley Capital International (MSCI) Emerging
Markets Global Latin America Index.(1) The Fund's slight underperformance during
the period was due primarily to its underweighted position in Brazil, but was
mitigated somewhat by an overweighted position in Venezuela.
MARKET REVIEW
Stock markets in the region had a good first half of 1996, led by the Brazilian
Bovespa Index, which rose 36.1% in the period. Bellwether stock Telebras and
other majority state-owned behemoths were responsible for most of the gain, as
evidenced by the significantly weaker performance of the private sector FGV-100
Index, which rose just 8% over the same period. Perceived progress on
privatization of the telecom sector, in particular, drove up stocks of potential
privatization candidates. Gradually falling interest rates also contributed to
the positive mood of the market.
The Argentine stock market, as measured by the Merval Index, rose 17.2% in the
first half of the year, as the continued reliquification of the financial system
led to hopes for a strong recovery in the real economy. Those hopes have been
largely disappointed so far, though of late we have begun to see some evidence
of improvement. Recently, investors have been concentrating on the government's
weak fiscal performance and poor employment figures from May.
The Mexican stock market rose 16.3% in the period, as a stable peso and falling
domestic interest rates have helped rebuild foreign investors' confidence. Signs
of recovery in the Mexican economy have been concentrated in the manufacturing
sector, particularly those industries exposed to exports. Consumer demand has
remained weak, and the poor health of the banking system is still a deterrent to
a stronger recovery. Meanwhile, inflation has continued to fall, reaching an
annual rate of less than 20% in recent months after peaking at over 100% early
in 1995.
OUTLOOK
We believe Mexico is well on its way to recovery, and remain currently
overweighted relative to our benchmark. Although Argentina is in the early
stages of an economic recovery, we are still concerned about that country's
vulnerability to external and internal shocks. Given the nature of its exchange
rate regime, we therefore remain underweighted. We believe the Brazilian stock
market has gotten ahead of reality and are worried about potential budget
disappointments. Brazil's lack of progress in achieving meaningful fiscal
reform, combined with high expectations for that country among investors, leaves
it vulnerable to disappointment in the event of delays or reversals in its
reform program. We believe certain stock valuations already fully anticipate
privatization and deregulation.
Recent economic data from Chile suggest that growth has slowed enough from last
year's torrid pace to allow authorities to consider lowering interest rates
again. Venezuela has rejoined its reform-minded neighbors after two years of
toying with populist economic policies that have left the country in ruins.
Prospects look better than they have in several years, as the interests of
politicians and investors seem to be aligned once again. Colombia remains mired
in political crisis, which has the potential to derail its two decades old
record of consistent economic performance. And Peru is emerging from a short
recession, though it remains to be seen how fast the economy can grow over the
medium term given the constraint of an uncomfortably large trade deficit.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL MSCI EMG MKTS
VARIABLE GLOBAL
LATIN AMERICA LATIN AMERICA
<S> <C> <C>
2/10/93 10,000 10,000
10,008 9,892
9,983 10,617
10,017 10,112
10,167 10,268
10,017 10,938
10,358 11,256
10,875 12,224
11,192 12,382
12,000 12,832
12,767 13,722
14,733 15,509
17,058 17,941
16,658 17,351
15,708 16,118
14,075 14,901
14,285 15,750
13,731 14,692
14,779 15,971
17,766 18,560
10/30/94 18,688 19,309
18,395 18,359
18,395 17,840
16,080 14,938
13,765 13,231
12,070 11,235
10,820 10,855
12,498 12,469
12,339 12,712
12,630 12,923
13,102 13,377
13,190 13,541
12,817 13,410
11,658 12,301
11,736 12,519
12,198 12,916
13,377 14,252
12,758 13,432
12,994 13,607
13,740 14,354
14,084 14,809
6/30/96 14,112 15,176
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Emerging Markets Global Latin America Index for the same period. It
assumes a hypothetical $10,000 initial investment in the Fund and reflects all
Fund expenses but not expenses and charges of the separate account. Past
performance is no guarantee of future results.
(1) The MSCI Emerging Markets Global Latin America Index is an arithmetic
average, weighted by market value, of the performance of 190 securities
listed on the stock exchanges of Argentina, Brazil, Chile, Columbia, Mexico,
Peru and Venezuela. The index is measured in U.S. dollars and includes the
effect of reinvested dividends.
The index is not available for investment and its performance does not include
the effects of sales charges and professional management fees.
4
<PAGE>
GT GLOBAL
VARIABLE GROWTH & INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 5.98% 11.98%
Life of Fund 7.47% 8.21%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 13.56%
Life of Fund 9.73%
</TABLE>
PERFORMANCE
For the six months ended June 30, 1996, the Fund's total return was 3.66%. Total
return over the same investment period was 7.33% for the Morgan Stanley Capital
International (MSCI) World Index(1) and -1.16% for the J.P. Morgan Global
Government Bond Index.(2)
Our underexposure to the world's two largest stock markets, the U.S. and Japan,
cost us in terms of performance relative to the MSCI World Index. At the
beginning of the period, we found few stocks in the U.S., and none in Japan,
that met our purchase criteria; nevertheless, both markets performed well over
the period.
The sluggish price performance of the Fund during the first six months of 1996
can largely be attributed to its average 30% bond exposure during the period.
The setback in the U.S. Treasury market in early 1996 was unexpected and
disappointing. Its effects on U.S. bond holdings were offset to an extent by the
bulk of the Fund's bond holdings, which were, and currently continue to be, in
Europe where we still perceive greater value. However, even these markets were
knocked back by weakness in the U.S.
MARKET REVIEW
Since the beginning of the year, the U.S. bull market has had little support
from corporate earnings growth or interest rates. With the economy operating
close to capacity and profit margins relatively high, we believe profits are
unlikely to accelerate. Furthermore, consumer sentiment may dampen economic
growth as consumer interest payments and debt have far outstripped income over
the past few years. However, we believe full employment and ample liquidity rule
out any reduction in interest rates.
Central bank-set interest rates have continued to decline across continental
Europe throughout the period, although this decline has not yet produced a
sustained economic recovery in the region. At the end of the first quarter,
Germany remained technically in recession, with other core economies -- France,
the Netherlands, Switzerland and Spain -- not faring much better. However, the
trend toward cheaper money has benefited European stock markets, especially in
the Netherlands and France.
OUTLOOK
Looking forward, we are bullish for bonds and the Fund's blue-chip holdings,
which offer above-average dividends when compared to the average dividend yield
on the MSCI World Index. We believe inflation expectations have room to fall
substantially over the next 12-24 months, as developed world economies continue
to grow at only trend or slightly below trend rates.
We believe Europe offers a classic value investment opportunity. Price-
to-earnings, price-to-book and price-to-cash ratios are the lowest in the
developed world, while dividend yields are among the highest, making Europe
"cheap" in our opinion.
Our view on inflation is optimistic. We believe it will remain low in the U.S.,
the UK and Australia, based on historical levels and virtually non-existent
inflation in continental Europe. Consequently, we continue to find the income
returns offered by government bonds attractive and expect their capital value to
rebound at some stage. We expect bond yields in the UK and Europe to decline to
levels regarded as normal 30 years ago, implying substantial total returns. We
believe stock valuations should expand against such a background.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL SALOMON BROS. JPM GLOBAL
VARIABLE WORLD GOVT GOVERNMENT
GROWTH & INCOME MSCI WORLD BOND INDEX BOND INDEX
<S> <C> <C> <C> <C>
2/10/93 10,000 10,000 10,000 10,000
10,008 10,102 10,215 10,209
10,228 10,689 10,371 10,366
10,261 11,187 10,591 10,555
10,361 11,447 10,697 10,622
10,437 11,352 10,674 10,630
10,673 11,588 10,704 10,635
11,145 12,121 11,026 10,950
11,155 11,899 11,157 11,065
11,460 12,229 11,138 11,060
11,333 11,539 11,058 10,979
11,775 12,106 11,152 11,092
12,135 12,906 11,242 11,196
11,639 12,741 11,169 11,073
11,312 12,194 11,153 11,022
11,467 12,573 11,165 11,014
11,355 12,608 11,067 10,923
11,278 12,575 11,227 11,052
11,573 12,816 11,317 11,156
11,721 13,204 11,277 11,127
10/30/94 11,455 12,860 11,359 11,183
11,796 13,228 11,541 11,350
11,394 12,656 11,382 11,207
11,439 12,781 11,414 11,233
11,360 12,592 11,653 11,461
11,580 12,778 11,952 11,756
11,590 13,396 12,661 12,354
11,821 13,866 12,896 12,551
12,114 13,987 13,259 12,901
12,059 13,986 13,337 12,982
12,417 14,688 13,368 13,043
12,166 14,363 12,909 12,680
12,471 14,785 13,197 12,967
12,597 14,555 13,295 13,093
12,813 15,063 13,446 13,239
13,211 15,506 13,587 13,403
13,301 15,789 13,419 13,266
13,392 15,888 13,350 13,188
13,410 16,156 13,332 13,168
13,483 16,538 13,279 13,119
13,647 16,556 13,282 13,132
6/30/96 13,694 16,642 13,386 13,247
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the various indices shown above for the same time period. It assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not expenses and charges of the separate account. Past performance
is no guarantee of future results.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,568 securities listed on major world stock exchanges --
the U.S., Europe, Canada, Australia, New Zealand and the Far East. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
(2) The J.P. Morgan Global Government Bond Index is an arithmetic average,
weighted by market value, of government bonds from 13 major bond markets. It
includes the effect of reinvested coupons and is measured in U.S. dollars.
The Fund has changed benchmarks from indices provided by Salomon Brothers to
indices provided by J.P. Morgan. The J.P. Morgan indices use weightings
based on liquidity, therefore, we consider them a better reflection of the
investment opportunities available to the Fund.
The indices are not available for investment and their performance does not
include the effects of sales charges and professional management fees.
5
<PAGE>
GT GLOBAL
VARIABLE TELECOMMUNICATIONS FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: October 18, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 24.38% 30.38%
Life of Fund 20.88% 21.94%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 32.22%
Life of Fund 23.65%
</TABLE>
PERFORMANCE
We are very pleased with the Fund's performance. Total return for the six months
ended June 30, 1996, was 22.96%. By comparison, the total return for the Morgan
Stanley Capital International (MSCI) World Index(1) over the same investment
period was 7.33%, and the MSCI Telecommunications Index(2) posted a return of
2.59%.
The Fund benefited from strong returns in the U.S. and, in particular, from
emerging telecom services competitors, networking equipment providers, and DSP
Communications (a company leveraged to the Japanese cellular market). In
addition, the Fund's holdings in Telebras, Telefonica de Espana, and SPT (Czech
telecom) performed well.
MARKET REVIEW
Growth of telecom companies continued to be solid in emerging economies with a
need for telephony infrastructure. Line penetrations are still low relative to
advanced countries, and we believe convergence will occur at healthy growth
rates over the next decade and beyond.
OUTLOOK
We also believe privatizations may provide some interesting investment
opportunities. However, a heavy supply of offerings can have negative effects as
well. In particular, we think the privatizations of Deutsche Telecom, STET and
France Telecom(3) over the coming 12 months may have a depressing impact on the
stocks of similar, more developed northern European telecom companies; we are
therefore currently focusing on the southern tier of the continent.
Progress continues in technologies such as wireless (cellular, personal
communications services, paging) and broadband services (multimedia, data,
Internet), which provide an interesting array of investment options. We believe
1997 will be a big year for wireless in the U.S. as PCS operators complete their
initial buildouts and begin to serve customers. The Internet will play an
increasingly important role in the communications infrastructure, and we will
work to identify companies that will benefit directly from its buildout.
Deregulation is a worldwide phenomenon and we are looking to upstart companies
as potential Fund candidates. The U.S. Telecommunications Act passed earlier
this year should cause a considerable amount of change and therefore opportunity
in the sector.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE MSCI
TELECOMMUNICATIONS MSCI WORLD TELECOMMUNICATIONS
<S> <C> <C> <C>
10/18/93 10,000 10,000 10,000
10,008 10,020 9,995
9,942 9,455 9,469
10,892 9,919 9,640
11,358 10,575 10,078
11,033 10,440 9,421
10,167 9,991 9,138
10,402 10,302 9,449
10,485 10,330 9,517
10,226 10,303 9,485
10,927 10,501 9,783
11,662 10,819 10,105
2/28/95 11,562 10,537 9,830
11,871 10,838 10,062
11,370 10,370 9,390
11,670 10,473 9,382
11,529 10,317 9,610
11,337 10,470 9,622
11,345 10,977 9,829
11,662 11,361 9,975
12,422 11,461 10,147
13,422 11,459 10,334
14,552 12,035 10,600
14,920 11,769 10,863
15,399 12,114 11,533
14,166 11,926 11,420
14,423 12,342 11,519
14,432 12,705 11,903
14,594 12,937 12,136
15,579 13,018 12,061
15,476 13,237 11,908
17,231 13,551 12,317
18,018 13,565 12,215
6/30/96 17,746 13,636 12,211
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World and Telecommunications indices for the same period. It assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not charges and expenses of the separate account. Past performance
is no guarantee of future results.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,568 securities listed on major world stock exchanges --
the U.S., Europe, Canada, Australia, New Zealand and the Far East. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
(2) The MSCI Telecommunications Index is an arithmetic average, weighted by
market value, of the performance of 29 securities listed on 22 major stock
exchanges. It includes the effect of reinvested dividends and is measured in
U.S. dollars.
The indices are not available for investment and their performance does not
include the effects of sales charges and professional management fees.
(3) There is no assurance the Fund will own the securities of these companies.
6
<PAGE>
GT GLOBAL
VARIABLE EMERGING MARKETS FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: July 5, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 15.87% 21.87%
Life of Fund 3.93% 6.32%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 23.59%
Life of Fund 7.81%
</TABLE>
PERFORMANCE
The Fund performed well. For the six months ended June 30, 1996, the Fund's
total return was 25.37%. Total return for the Morgan Stanley Capital
International (MSCI) Emerging Markets Global Index(1) was 11.44% for the period.
The Fund benefited from concentrating its investments in less than 40 stocks. At
the same time, we overweighted many of the smaller countries in the emerging
markets universe. For example, the Fund had more than 5% of its assets invested
in an Indonesian pharmaceutical company at one point, and more than 5% in both
the Philippine and Venezuelan markets during the course of the six months. The
rise in prices of the securities in these three countries contributed
substantially to the Fund's performance. The Fund maintained its strategy of
keeping individual country weightings below 15% to diversify and attempt to
lower risk.
MARKET REVIEW
During the first half of 1996, most emerging markets rose. Strong performance of
more than 20% in U.S. dollar terms was experienced in a number of countries,
including Venezuela, Brazil, Turkey, Shenzhen (China), Taiwan and the
Philippines. Few markets declined, including Chile, Greece, Sri Lanka, South
Africa, Korea and Thailand. One could say that emerging markets, having
generally been in a bear market from February of 1994, began to rally in
November of 1995. Whether the past eight months are a prologue to further
success remains to be seen.
OUTLOOK
At the current time we are positive on the outlook for emerging markets as a
whole. A number of positive developments have been taking shape: the Chinese
economy is accelerating once more; following the successful resolution of the
Mexican peso crisis, we believe the commitment of Latin American governments to
economic reform is no longer in doubt; and flows of portfolio capital from U.S.
retail investors to overseas (including emerging) financial markets have been
increasing.
The Fund's current strategy is to focus on value, country diversification and
relatively large individual stock weightings. For example, we hold one position
of more than 3% of the Fund's assets in a Sri Lankan conglomerate and a position
of more than 4% in an Uruguayan bank. To the extent described in the Fund's
prospectus, we are willing to invest in any industry, and currently have
exposure to sectors such as utilities, mining, banking, breweries, other
beverages, pharmaceuticals, and oil exploration and production.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE MSCI EMERGING
EMERGING MARKETS MARKETS GLOBAL
<S> <C> <C>
7/5/94 10,000 10,000
10,025 10,527
10,408 11,673
11,358 12,039
11,400 11,784
10,917 11,276
10,012 10,659
9,095 9,445
8,337 9,326
8,135 9,291
8,867 9,436
9,406 9,791
6/30/95 9,398 9,770
9,886 9,956
9,381 9,569
9,356 9,627
9,103 9,343
8,724 9,077
9,257 9,340
9,896 9,822
10,381 9,760
10,857 9,915
11,699 10,654
11,853 10,449
6/30/96 11,614 10,597
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Emerging Markets Global Index for the same period. It assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not charges and expenses of the separate account. Past performance
is no guarantee of future results.
(1) The MSCI Emerging Markets Global Index is an arithmetic average, weighted by
market value, of the performance of securities listed on the exchanges of 23
countries. It includes the effect of reinvested dividends and is measured in
U.S. dollars.
The index is not available for investment and its performance does not include
the effects of sales charges and professional management fees.
7
<PAGE>
GT GLOBAL
VARIABLE INFRASTRUCTURE FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: January 31, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 10.57% 16.57%
Life of Fund 15.63% 18.94%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 18.22%
Life of Fund 20.61%
</TABLE>
PERFORMANCE
For the six months ended June 30, 1996, the Fund's total return was 17.78%.
Total return over the same investment period was 7.33% for the Morgan Stanley
Capital International (MSCI) World Index.(1) Please note that the index is
designed to represent the performance of all markets and does not reflect the
Fund's concentration in the infrastructure industry.
The Fund's returns were buoyed by performance of the U.S., Italian and Spanish
markets, in addition to general strength in Latin America. In the U.S., the Fund
benefited from a continuation of the bull market, as well as a shift from
technology to more cyclical infrastructure-type stocks. Post-electoral gains in
Italy and Spain also worked in favor of the Fund, largely due to expectations of
lower interest rates.
MARKET REVIEW
Over the period, confidence in emerging markets continued to increase. Mexico
seems to be rebounding, and the peso has been relatively stable over the last
several months. Brazil has slowly made progress in privatizing and restructuring
its economy. Growth continues to boom throughout most of Asia, particularly in
Malaysia and the Philippines. Meanwhile, China has been digesting some of its
recent growth, and eastern Europe seems to be going forward in a steady growth
mode.
OUTLOOK
Looking ahead, we continue to like the growth of telecom, the stability of
electric utilities, the sales potential of the capital goods side (power plants
and other infrastructure building blocks) and the rationalization opportunities
in transportation. Moreover, we believe privatizations, whereby entrepreneurial
and managerial skills are applied to formerly state-run companies, can lead to
improved returns and are often attractive investments.
The basic strategy of the Fund is to find infrastructure opportunities at
attractive valuations. We use a number of measures to determine value, including
price-to-earnings relative to earnings growth rate, price-to-replacement value
and price-to-cash flow ratios. No major shifts have occurred in the Fund's
strategy, essentially due to the nature of the industry. Infrastructure
development tends to take place over a long period of time, with the exception
of the telecommunications sector where dramatic changes from a technological or
regulatory perspective can take place quickly. For most other infrastructure
sectors, we remain focused on finding companies we think will grow with the pace
of infrastructure development around the world.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL
VARIABLE
INFRASTRUCTURE MSCI WORLD
<S> <C> <C>
1/31/95 10,000 10,000
9,942 10,148
9,967 10,639
10,467 11,012
10,742 11,108
11,025 11,107
11,550 11,665
11,250 11,407
9/30/95 11,225 11,741
10,700 11,559
10,900 11,962
11,058 12,314
11,308 12,539
11,392 12,618
11,508 12,830
12,450 13,134
12,925 13,148
6/30/96 13,033 13,217
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not expenses
and charges of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,568 securities listed on the major world stock
exchanges -- the U.S., Europe, Canada, Australia, New Zealand and the Far
East. It includes the effect of reinvested dividends and is measured in U.S.
dollars.
The index is not available for investment and its performance does not include
the effects of sales charges and professional management fees.
8
<PAGE>
GT GLOBAL
VARIABLE NATURAL RESOURCES FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: January 31, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 31.29% 37.29%
Life of Fund 30.68% 33.83%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 39.22%
Life of Fund 35.76%
</TABLE>
PERFORMANCE
The Fund had a very strong six months, returning a total of 26.08% to June 30,
1996. During the same period the Morgan Stanley Capital International (MSCI)
World Index(1) returned 7.33%. Please note that the index is designed to
represent the performance of all markets and does not reflect the Fund's
concentration in the natural resources industries.
MARKET REVIEW
The Fund's top performers in the past six months did well primarily because of
company-specific rather than macroeconomic factors. For example, a fast-growing
company that is doing well because of cutting-edge technology is Input/Output, a
leader in 3d seismic exploration.
Companies doing well because of growth in reserves include
Bre-X Minerals Ltd., a Canadian company that has discovered a large gold mine
located in Indonesia. Although the price of gold has remained flat, we believe
Bre-X's stock price rose 330% over the six months, because of its huge growth in
reserves. Another Canadian company, Diamond Fields Resources, had a marked
increase in reserves because of the discovery of a huge nickel deposit in
Canada. Over the six months to the end of the period, its stock price increased
49.51%. Also, Abacan Resource, a Canadian company working in offshore Nigeria,
had strong growth in reserves and strong growth in production.
Reading and Bates, which operates offshore oil platforms, has done very well
because the market for these platforms has gotten very tight. As oil companies
look for oil further and further offshore, demand for these platforms is at a
premium because of the limited supply. Accordingly, Reading and Bates' leasing
rates have risen dramatically, and the company has shown very strong earnings
growth.
Another company that performed well during the period is UCAR International
(+23%), a spinoff from Union Carbide that produces carbon graphite rods. These
rods are essential to the steelmaking process in electric arc furnaces, the
fastest growing area of steelmaking.
OUTLOOK
While keeping in mind that many emerging markets can be volatile, we're finding
opportunities in North American companies that are taking advantage of the
opening up of mineral resources in Latin American, African, Southeast Asian and
former eastern bloc markets. Many of these countries had nationalized industries
or were previously closed to western exploration. Since 1990, many have been
making their mineral resources available to foreign mining companies. At the
same time, new technology is enabling companies to find huge amounts of mineral
reserves. Canadian companies such as Bre-X and Triton Mining have been
especially adept and aggressive at staking claims around the world. These new
explorations are leading to rapid growth in reserves and production, and we will
continue to seek out high-growth companies taking advantage of these
opportunities.
Our stock selection criteria is primarily based on company specifics and, to a
lesser degree, on whether we are bullish, neutral or bearish on the related
commodity. We look for companies where we believe stock prices will go up
independently of the commodity price. These include firms growing their reserves
quickly by making new discoveries, or growing production quickly because of
their new discoveries or by using their current reserves. We also look for
companies going through major reorganizations such as cost-cutting, spinoffs or
takeovers, and select companies whose earnings growth, in our opinion, is likely
to outpace expectations. Companies with potential for positive quarterly
earnings surprises and positive earnings revisions by Wall Street analysts are
also attractive. In addition, we invest in companies we believe display strong
fundamentals such as high return on equity, low debt and highly predictable
earnings and cash flow.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE NATURAL RESOURCES MSCI WORLD
<S> <C> <C>
1/31/95 10,000 10,000
10,050 10,148
10,375 10,639
10,683 11,012
10,750 11,108
11,067 11,107
11,867 11,665
11,717 11,407
9/30/95 11,650 11,741
11,358 11,559
11,767 11,962
12,220 12,314
12,643 12,539
13,532 12,618
14,280 12,830
15,574 13,134
16,208 13,148
6/30/96 15,407 13,217
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,568 securities listed on the major world stock
exchanges -- the U.S., Europe, Canada, Australia, New Zealand and the Far
East. It includes the effect of reinvested dividends and is measured in U.S.
dollars.
The index is not available for investment and its performance does not include
the effects of sales charges and professional management fees.
9
<PAGE>
GT GLOBAL
VARIABLE AMERICA FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 1.57% 7.57%
Life of Fund 17.80% 18.39%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 9.08%
Life of Fund 20.07%
</TABLE>
PERFORMANCE
For the six months ended June 30, 1996, the Fund's total return was 8.69%. Total
return over the same investment period was 9.21% for the S&P Midcap 400 Index(1)
and 10.36 for the Russell 2000 Index.(2)
The primary factor contributing to the Fund's underperformance relative to its
benchmark over the past six months was an overweighting in semiconductor
companies and companies that supply the semiconductor industry. During the
period, the price for DRAM (dynamic random access memory) chips, which are
manufactured by the semiconductor industry and used in many personal computers,
fell dramatically, driving the Philadelphia Semiconductor Index down
approximately 13%. We subsequently decreased our weighting in this sector.
MARKET REVIEW
In July, the U.S. markets showed their first major correction since the first
half of 1994. By the end of the month, the three U.S. indices had fallen
substantially from the peaks they reached in late May: The Dow had fallen 6%,
the S&P had fallen 7%, and the NASDAQ had declined 15% -- the biggest percentage
decline in the NASDAQ since the Gulf War.
The most obvious explanation for the selloff is simple price/earnings (P/E)
compression. In late May, the leading stocks on the NASDAQ had P/E multiples
well above their earnings growth rates. Investors had flocked to those stocks
offering the best earnings growth -- and earnings surprises -- because these
stocks had worked well for the previous year-and-a-half. Most P/E multiples were
1.5 times the underlying earnings growth rate. The majority of these leading
stocks have now fallen anywhere from 10% to 70% in price.
Interestingly, the correction in these stocks was not due to companies reporting
earnings disappointments, as most reported earnings above expectations for the
second quarter. Furthermore, the catalyst for these steep declines was not an
increase in interest rates, or a change in Federal Reserve policy. Yields on the
30-year bond have tried to rise above 7.22%, but have effectively remained in a
trading band around 7% for the last two months. Rather, the correction was
triggered by earnings disappointments from other major high-tech stocks such as
Motorola ($0.54 vs. $0.69 expected) and Hewlett Packard ($1.37 vs. $1.45
expected).
What is the message? First, the market needed a correction, as valuations were
simply too high, in our opinion. Second, the market has had a delayed reaction
to this year's rise in long interest rates from 6% to 7%.
OUTLOOK
Since earnings growth for the market as a whole is anemic (approximately 0%-5%),
little hope seems to exist for a higher market based on strong earnings growth
(although, it should be noted that of the companies in the S&P 500 that have
reported -- approximately 300 -- 55% had positive earnings growth and 34% had
negative). This leaves the direction of interest rates as a determining factor,
in our opinion. If rates remain at current levels or go lower, the market may
edge higher. We believe growth stocks would likely lead the way as their
valuations are now reasonable: most of the leading growth companies have P/Es
below their earnings growth rate. However, if rates rise, we believe the market
must surely go lower.
In summary, we are in the sixth year of a bull market, earnings growth is weak
and equities are fairly valued, so we are cautiously and closely watching the
direction of the yield on the 30-year bond and the direction of short-term
interest rates.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL
VARIABLE AMERICA S&P MIDCAP 400 RUSSELL 2000
<S> <C> <C> <C>
2/10/93 10,000 10,000 10,000
10,008 9,725 9,733
9,908 10,061 10,049
9,525 9,798 9,772
10,150 10,244 10,205
9,817 10,295 10,268
9,992 10,275 10,410
10,308 10,700 10,859
10,417 10,813 11,166
11,108 10,848 11,453
11,225 10,608 11,080
11,467 11,100 11,459
11,650 11,359 11,818
12,033 11,197 11,775
12,275 10,679 11,155
12,502 10,758 11,221
12,675 10,656 11,095
12,666 10,289 10,720
12,640 10,638 10,897
13,365 11,195 11,504
10/30/94 13,485 10,986 11,465
13,511 11,106 11,418
13,339 10,605 10,957
13,632 10,702 11,250
13,761 10,814 11,108
14,442 11,381 11,570
14,986 11,578 11,769
15,606 11,811 12,030
16,003 12,096 12,237
17,028 12,588 12,872
17,968 13,244 13,613
18,135 13,490 13,895
18,222 13,817 14,143
17,555 13,461 13,511
18,012 14,049 14,078
17,089 14,014 14,450
17,204 14,217 14,434
17,581 14,701 14,884
17,766 14,877 15,187
19,180 15,331 15,999
19,294 15,538 16,629
6/30/96 18,574 15,305 15,947
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The S&P Midcap 400 Index comprises the market value-weighted average price
of 400 selected common stocks of medium-size domestic companies. It includes
the effect of reinvested dividends and is measured in U.S. dollars.
(2) The Russell 2000 Index comprises the 2,000 U.S.-domiciled common stocks
designed to measure small company stock performance. The index represents
roughly 12% of the U.S. stock market, and market capitalization of index
companies ranged from $90 million to $1.17 billion as of June 1996. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
The indices are not available for investment and their performance does not
include the effects of sales charges and professional management fees.
10
<PAGE>
GT GLOBAL
VARIABLE NEW PACIFIC FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 11.39% 17.39%
Life of Fund 7.89% 8.63%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 19.04%
Life of Fund 10.15%
</TABLE>
PERFORMANCE
The Fund performed well in the last six months to June 30, 1996, returning a
total of 18.62%. Total return for the Morgan Stanley Capital International
(MSCI) Pacific ex-Japan Index(1) over the same period was 9.5%.
MARKET REVIEW
Notwithstanding a correction in March 1996 following the rise in U.S. long bond
yields and the recent consolidation on the back of mixed earnings results,
markets in the region have made considerable progress this year thanks to
inflows of portfolio capital from the U.S. Malaysia and the Philippines led
regional performance over the period, returning 16.33% and 19.48%, respectively
(according to relevant MSCI indices). The Fund benefited from its holdings in
both of these markets.
We found the investment environment attractive in Malaysia, the Philippines and
Indonesia, and increased our exposure to these countries, although to Indonesia
to a lesser degree. Relative to the index, we remain overweighted in Hong Kong,
and, in line with our somewhat more bearish outlook for Thailand and Singapore,
we reduced the Funds' weightings in these markets. In Thailand, the finance
sector has experienced growing concern over problem loans, resulting in a
selloff of banking shares. While domestic interest rates may soon be cut, we
believe such an action is unlikely to trigger a reversal in the current cautious
sentiment, which is influenced primarily by a poor earnings outlook for the
remainder of 1996. Meanwhile in Singapore, as overheated property prices have
prompted the government to introduce measures to cool down the residential
market, we expect demand for residential properties to decline; banking and
finance stocks are likely to suffer further decline with the ease in mortgage
financing.
OUTLOOK
We may see a rise in U.S. interest rates, which could cause some short-term
repercussions in the Southeast Asian markets. A decline in the U.S. stock market
might also create some short-term volatility. Despite this possibility, we
continue to find selective opportunities and believe in the region's long-term
fundamental value.
Our current outlook for the Hong Kong market is positive for the remainder of
the year, even in the absence of a reduction in U.S. interest rates. Our view is
underpinned by recovery of the business cycle in China, which has been
strengthening since the second half of 1995, and continued credit easing on the
part of Chinese authorities. The Malaysian market has done extremely well and
over the longer term, we feel positive about the potential growth of corporate
earnings. Finally, we find the long-term prospects of the Philippine market
attractive. The economy has turned around since President Ramos took office and
market sentiment is benefiting from an improved inflation outlook.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE MSCI PACIFIC
<S> <C> <C>
New Pacific Ex-Japan
2/10/93 10,000 10,000
10,008 10,540
10,308 10,719
10,833 11,268
11,258 11,700
10,892 11,345
11,308 11,746
11,692 12,633
11,808 12,877
12,425 14,960
11,992 14,513
13,392 17,527
13,425 17,046
12,900 16,216
11,808 14,494
12,174 15,167
12,417 15,668
11,990 14,974
12,425 15,763
13,262 16,822
13,019 16,381
10/30/94 12,960 16,645
11,940 15,311
11,722 15,075
10,526 13,774
10,818 15,061
10,869 15,219
11,028 15,421
11,638 16,468
11,655 16,157
12,226 16,824
11,773 16,379
11,714 16,590
11,319 16,298
11,134 16,443
11,697 17,090
13,025 18,226
13,008 18,503
12,941 18,744
13,630 19,261
14,269 19,069
6/30/96 13,875 18,714
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Pacific ex-Japan Index for the same period. It assumes a hypothetical
$10,000 initial investment in the Fund and reflects all Fund expenses but not
charges and expenses of the separate account. Past performance is no guarantee
of future results.
(1) The MSCI Pacific ex-Japan Index is an arithmetic average, weighted by market
value, of the performance of 220 securities listed on five major Pacific Rim
stock exchanges (Australia, Hong Kong, Malaysia, New Zealand and Singapore).
It includes the effect of reinvested dividends and is measured in U.S.
dollars.
The index is not available for investment and its performance does not include
the effects of sales charges and professional management fees.
11
<PAGE>
GT GLOBAL
VARIABLE EUROPE FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 21.99% 27.99%
Life of Fund 14.54% 15.17%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 29.79%
Life of Fund 16.79%
</TABLE>
PERFORMANCE
We are pleased with the Fund's performance. Total return for the six months
ended June 30, 1996, was 21.46%. In fact, the Fund considerably outperformed its
benchmark, the Morgan Stanley Capital International (MSCI) Europe Index,(1)
which returned 6.64% over the same period.
The Fund's strong performance can in part be attributed to identification of
companies which were mispriced and had better growth prospects than the market,
such as Altran Technologies and Nearmedic Vienna Ltd., both of which were
significant contributors over the period.
MARKET REVIEW
In general, the market favored growth and cyclical companies. Financials proved
the major underperforming sector; European companies in this sector have
typically been poorly managed. The Fund benefited from being underweighted in
financials and overweighted in growth stocks.
Central bank-set interest rates have continued to decline across continental
Europe throughout the period, although this decline has not yet produced a
sustained economic recovery in the region. At the end of the first quarter,
Germany remained technically in recession, with other core economies -- France,
the Netherlands, Switzerland and Spain -- not faring much better. However,
cheaper money and positively sloped yield curves in Germany, France and
elsewhere mean liquidity conditions are now easier than at any time over the
past 10 years (according to LGT's European economics team). We believe this has
already resulted in higher bond and stock prices and should eventually be
reflected in the performance of the real economy.
Meanwhile, the persistence of sluggish growth has forced companies to become
more commercial. Unemployment has risen, as companies have recognized the need
to retrench in order to stay in business. As a result, productivity has begun to
improve, and a gradual trend by companies to more U.S.-style measures, focusing
on shareholder value -- share buybacks, special dividends, mergers and hostile
takeovers -- is becoming apparent.
OUTLOOK
We are moving into a very positive phase of the liquidity cycle and may be
nearing the end of interest rate cuts for the main European markets -- Germany,
France and the UK. Our economists expect a consumer-led recovery toward the end
of the year in these markets. On the other hand, we believe markets such as
Sweden, Spain and Italy, which are much later in the interest rate-cutting
cycle, are going to lag behind. We believe this would mean that accelerating
liquidity and the prospect of strong earnings growth would provide fuel for
financial asset appreciation in the main European markets.
The growing emphasis on shareholder value is a powerful influence. Across Europe
in general, we believe the catalyst for change is in the increasing importance
of the institutional investor within the shareholder structure. As a result of
an aging population, pension funds are becoming much more important. Because
these investors are proactive and powerful, companies are becoming increasingly
sensitive to the requirements of raising capital and doing it cost efficiently.
We expect the change in pension fund relations will encourage demand for
equities.
Over the long term, we believe attractive opportunities will result from
companies' increasing focus on shareholder value, the refocus on core
competencies (a return by companies to their original, core businesses) and
deregulation in certain industries. In terms of opportunities, the Fund
maintains a bias toward growth companies, with possibly some selective
opportunities in cyclicals.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL
VARIABLE EUROPE MSCI EUROPE
<S> <C> <C>
2/10/93 10,000 10,000
10,008 10,164
10,133 10,690
10,525 10,930
10,858 11,051
10,842 10,893
11,183 10,934
11,875 11,897
11,958 11,864
12,400 12,362
12,075 12,099
12,775 13,011
13,708 13,677
13,158 13,196
12,758 12,826
13,083 13,361
12,557 12,798
12,399 12,667
12,950 13,335
13,225 13,763
12,891 13,221
10/30/94 13,292 13,802
12,674 13,277
12,699 13,357
12,457 13,257
12,290 13,562
11,907 14,197
12,466 14,656
12,783 14,961
13,033 15,107
13,598 15,900
13,362 15,291
13,842 15,758
13,673 15,689
13,699 15,806
13,926 16,313
14,264 16,425
14,904 16,730
15,621 16,936
16,211 17,064
16,573 17,201
6/30/96 16,916 17,397
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI Europe Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI Europe Index is an arithmetic average, weighted by market value, of
the performance of 590 securities listed on 14 major European stock
exchanges. It includes the effect of reinvested dividends and is measured in
U.S. dollars.
The index is not available for investment and its performance does not include
the effects of sales charges and professional management fees.
12
<PAGE>
GT GLOBAL
MONEY MARKET FUND
The GT Global Money Market Fund's investment objective is to maximize current
income while maintaining liquidity and conservation of capital.
PERFORMANCE
The Fund's total return for the six months ended June 30, 1996, was 2.36%. As of
June 30, 1996, the Fund's SEC seven-day yield was 3.32%. Because the Fund
invests only in short-term debt obligations with remaining maturities of 13
months or less, its performance generally reflects the level of short-term
interest rates.
MARKET REVIEW
During the first half of 1996, the interest rate environment experienced a trend
reversal, turning toward higher rates. On January 31, the Federal Reserve
lowered the Federal funds rate by 0.25 percentage points, to 5.25%. Since then,
the official interest rate policy has been on hold. However, spring quarter
economic reports reflect increasing growth momentum which, combined with the
collapse of efforts to pass a seven-year balanced budget plan, has led to
progressively higher yields for bonds and notes.
OUTLOOK
On this basis, our view for the coming six months calls for slightly higher
interest rates, but we see significant risk that further stock and bond market
volatility may weaken the economy and cause the Fed to hold rates steady.
Accordingly, the Fund currently intends to invest in some longer short-term
instruments to lock in yields. Meanwhile, we plan to keep a large portion of
assets in instruments with remaining maturities under 30 days, due to the high
liquidity requirements of the Fund.
The Fund's strategy remains conservative. We continue to invest in commercial
paper of large issuers, rated in the highest categories by S&P or Moody's or of
equivalent quality, and U.S. Treasury and Agency obligations. We do not use
derivatives in the management of the Fund.
13
<PAGE>
GT GLOBAL
VARIABLE INTERNATIONAL FUND
TOTAL RETURNS THROUGH JUNE 30, 1996
Inception date: July 5, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITH APPLICABLE WITHOUT
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 2.89% 8.89%
Life of Fund -4.69% -2.20%
FUND PERFORMANCE
AVERAGE ANNUALIZED
1 Year 10.43%
Life of Fund -0.79%
</TABLE>
PERFORMANCE
The Fund's total return for the six months ended June 30, 1996, was 5.69%. Total
return for the Morgan Stanley Capital International (MSCI) EAFE Index(1) over
the same period was 4.67%.
While the Fund in general benefited from its country selection relative to the
index, overall it was negatively affected by its security selection,
particularly in the emerging markets where it held on average 10% over the
period.
The Fund's currency hedge, however, 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.
MARKET REVIEW
Central bank-set interest rates continued to decline across continental Europe
throughout the period, although this decline has not yet produced a sustained
economic recovery in the region. At the end of the first quarter, Germany
remained technically in recession, with other core economies -- France, the
Netherlands, Switzerland and Spain -- not faring much better. In general, the
market favored growth and cyclical companies. Financials proved the major
underperforming sector; European companies in this sector have typically been
poorly managed.
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.
In the Pacific ex-Japan region, notwithstanding a correction in March 1996
following the rise in U.S. long bond yields and the recent consolidation on the
back of mixed results, markets made considerable progress this year. This can in
part be attributed to inflows of portfolio capital from the U.S.
OUTLOOK
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.
We could 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.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL
VARIABLE
INTERNATIONAL MSCI EAFE
<S> <C> <C>
7/5/94 10,000 10,000
10,025 10,045
10,217 10,285
9,800 9,963
10,083 10,297
9,625 9,805
9,420 9,868
8,817 9,492
8,599 9,467
8,557 10,060
8,792 10,441
8,750 10,319
6/30/95 8,913 10,141
9,374 10,775
9,240 10,367
9,391 10,572
9,081 10,290
9,089 10,579
9,313 11,008
9,456 11,056
9,473 11,096
9,600 11,335
9,795 11,667
9,795 11,455
6/30/96 9,843 11,522
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI EAFE Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI-EAFE Index is an arithmetic average, weighted by market value, of
the performance of 1,110 securities listed on 20 major 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.
14
<PAGE>
GT GLOBAL
ALLOCATOR
FUNDS'
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (81.9%)
Argentina (6.0%)
Republic of Argentina:
Floating Rate Bond, 6.3125% due 3/31/05+ ............ USD 1,315,710 $ 1,027,814 4.0
Discount Bond, 6.4375% due 3/31/23+ ................. USD 540,000 375,975 1.5
BOCON Pre 4, 5.42188% due 9/1/02+ ................... USD 132,000 125,796 0.5
Australia (1.5%)
Australian Government, 9.75% due 3/15/02 .............. AUD 455,000 376,140 1.5
Brazil (4.7%)
Federal Republic of Brazil:
Earned Interest Bond, 6.5% 4/15/06+ ................. USD 803,000 644,159 2.5
C Bond, 4.5% due 4/15/14 (Effective rate at period
end is 6.6678%, including "payment-in-kind"
bonds.)[.] ++ ...................................... USD 665,694 412,314 1.6
Debt Conversion Bond Series L, 6.5625% due
4/15/12+ ........................................... USD 230,000 156,544 0.6
IDU Notes, 6.375% due 1/1/01+ ....................... USD 800 750 --
Bulgaria (1.6%)
Bulgaria, Discount Bond Series A, 6.25% due 7/28/24 -
EURO+ ................................................ USD 770,000 399,438 1.6
Canada (2.5%)
Canadian Government:
8.75% due 12/1/05 ................................... CAD 485,000 382,513 1.5
8% due 11/1/98 ...................................... CAD 340,000 258,326 1.0
Colombia (0.2%)
Republic of Colombia, 8.7% due 2/15/16 ................ USD 50,000 45,943 0.2
Costa Rica (0.8%)
Banco Central de Costa Rica, Principal Bond Series A,
6.25% due 5/21/10 .................................... USD 300,000 216,000 0.8
Denmark (1.8%)
Kingdom of Denmark, 7% due 12/15/04 ................... DKK 2,700,000 457,306 1.8
Ecuador (1.9%)
Ecuador:
Past Due Interest Bond, 3% due 2/27/15 - Registered
(Effective rate at period end is 4.3628%, including
"payment-in-kind" bonds.)[.] + ..................... USD 676,826 301,187 1.2
Past Due Interest Bond, 3% due 2/27/15 - EURO
(Effective rate at period end is 4.3628%, including
"payment-in-kind" bonds.)[.] + ..................... USD 398,806 177,469 0.7
France (1.6%)
French O.A.T., 7.25% due 4/25/06 ...................... FRF 2,000,000 410,389 1.6
Germany (7.6%)
Deutschland Republic, 6% due 1/5/06 ................... DEM 2,450,000 1,553,450 6.1
Treuhandanstalt, 7.125% due 1/29/03 ................... DEM 550,000 381,946 1.5
Italy (8.6%)
Italian Buoni Poliennali del Tesoro (BTPS):
10.5% due 11/1/00 ................................... ITL 1,165,000,000 810,402 3.2
9.5% due 2/1/99 ..................................... ITL 680,000,000 456,413 1.8
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (Continued)
Republic of Italy:
5.125% due 7/29/03 .................................. JPY 46,000,000 $ 474,712 1.9
Series Y, 2.7968% due 7/26/99+ ...................... JPY 46,000,000 423,021 1.7
Mexico (5.1%)
United Mexican States:
Discount Bond Series C, 6.35156% due 12/31/19+
+/+ ................................................ USD 850,000 668,313 2.6
Discount Bond Series B, 6.39062% due 12/31/19+
+/+ ................................................ USD 500,000 393,125 1.5
Global Bond, 11.5% due 5/15/26 ...................... USD 271,000 248,134 1.0
New Zealand (1.0%)
New Zealand Government, 8% due 2/15/01 ................ NZD 380,000 251,255 1.0
Nigeria (1.6%)
Central Bank of Nigeria, Par Bond, 6.25% due 11/15/20++
+/+ .................................................. USD 750,000 399,608 1.6
Panama (2.9%)
Panama:
Interest Reduction Bond, When-issued - 3.5% due
7/17/14 - 144A{.} -/- .............................. USD 822,500 458,544 1.8
Past Due Interest Bond, When-issued - Floating Rate
due 7/17/16{.} -/- ................................. USD 450,000 275,063 1.1
Philippines (1.6%)
Central Bank of the Philippines, Debt Conversion Bond
Series B, 6.4375% due 12/1/09+ ....................... USD 440,000 418,000 1.6
Poland (2.2%)
Poland:
Par Bond, 2.75% due 10/27/24 - EURO++ ............... USD 741,000 376,984 1.5
Past Due Interest Bond, 3.75% due 10/27/14 -
EURO++ ............................................. USD 246,000 189,420 0.7
Spain (3.4%)
Kingdom of Spain:
10.1% due 2/28/01 ................................... ESP 81,000,000 681,562 2.7
5.75% due 3/23/02{j} ................................ JPY 16,000,000 170,168 0.7
Supranational (1.9%)
International Bank of Reconstruction & Development,
4.75% due 12/20/04 ................................... JPY 47,500,000 490,387 1.9
Sweden (1.3%)
Swedish Government, 13% due 6/15/01 ................... SEK 1,800,000 333,501 1.3
United Kingdom (6.3%)
United Kingdom Treasury:
7% due 11/6/01 ...................................... GBP 700,000 1,068,788 4.2
7.5% due 12/7/06 .................................... GBP 360,000 543,549 2.1
United States (12.3%)
United States Treasury:
6.875% due 3/31/00{j} ............................... USD 2,770,000 2,812,632 11.0
6.875% due 8/15/25 .................................. USD 330,000 325,978 1.3
Uruguay (0.7%)
Banco Central del Uruguay, Par Bond Series B, 6.75% due
2/19/21+/+ ........................................... USD 250,000 180,000 0.7
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (Continued)
Venezuela (2.8%)
Republic of Venezuela:
Front Loaded Interest Reduction Bond Series A, 6.375%
due 3/31/07+ ....................................... USD 250,000 $ 180,625 0.7
Front Loaded Interest Reduction Bond Series B, 6.5%
due 3/31/07+ ....................................... USD 250,000 180,625 0.7
Debt Conversion Bond, 6.625% due 12/18/07+ .......... USD 250,000 176,719 0.7
Discount Bond Series A, 6.375% due 3/31/20+ +/+ ..... USD 250,000 166,875 0.7
------------
Total Government & Government Agency Obligations (cost
$20,641,384) ............................................. 20,857,862
------------
Sovereign Debt (6.6%)
Morocco (2.6%)
Kingdom of Morocco, Tranche A Loan Agreement, 6.4375%
due 1/1/09+ .......................................... USD 910,000 656,906 2.6
Russia (4.0%)
Bank for Foreign Economic Affairs (Vnesheconombank)
Loan Agreement ** -/- ................................ USD 1,621,000 786,185 3.1
Bank for Foreign Economic Affairs (Vnesheconombank)
Loan Agreement ** -/- ................................ DEM 674,000 238,152 0.9
------------
Total Sovereign Debt (cost $1,537,223) .................... 1,681,243
------------
Corporate Bonds (5.0%)
Argentina (0.4%)
Industrias Metallurgicas Pescarmona S.A. (IMPSA),
11.75% due 3/27/98 - 144A{.} ......................... USD 100,000 100,875 0.4
Brazil (0.8%)
Banco BCN - BCN Leasing, 11% due 6/9/97 - 144A{.} ..... USD 200,000 202,500 0.8
Indonesia (1.6%)
PT Polysindo EKA Perkasa, 13% due 6/15/01:
EURO ................................................ USD 113,000 124,018 0.5
DTC ................................................. USD 20,000 21,950 0.1
PT Tjiwi Kimia, 13.25% due 8/1/01 ..................... USD 130,000 145,600 0.6
Rapp International Finance:
11.5% due 12/15/00 .................................. USD 35,000 35,963 0.1
13.25% due 12/15/05 ................................. USD 30,000 32,250 0.1
Asia Pulp & Paper International Finance Co., Ltd.,
11.75% due 10/1/05 ................................... USD 35,000 35,963 0.1
PT Indah Kiat International Finance Series B, 11.875%
due 6/15/02 .......................................... USD 26,000 27,560 0.1
Luxembourg (0.2%)
Millicom International Cellular, 13.5% due 6/1/06 -
144A++ {.} -/- ....................................... USD 100,000 52,750 0.2
Mexico (2.0%)
Banco Nacional de Comercio Exterior, S.N.C. (BNCE)
Trust Division, 11.25% due 5/30/06 - 144A{.} ......... USD 308,000 304,920 1.2
Grupo Televisa S.A. Series A, 11.375% due 5/15/03 -
144A{.} .............................................. USD 100,000 101,250 0.4
Bufete Industrial S.A., 11.375% due 7/15/99 -
144A{.} .............................................. USD 100,000 100,500 0.4
------------
Total Corporate Bonds (cost $1,275,435) ................... 1,286,099
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Structured Notes (0.5%)
Argentina (0.5%)
Stripped Republic of Argentina Par Spread Linked Note,
6% due 1/23/97 - 144A (Issued by Internationale
Nederlanden Capital Holdings Corp. The principal of
the Note is linked to the spread between the internal
rate of return of the Republic of Argentina Par Bond
due 3/31/23, minus the yield to maturity of U.S.
Treasury Bond, 6.5% due 8/15/05. The initial spread
was 8.9%.) (cost $125,000){.} ........................ USD 125,000 $ 129,800 0.5
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $23,579,042) ......... 23,955,004 94.0
------------ -----
<CAPTION>
PRINCIPAL MARKET % OF NET
SHORT-TERM INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (2.0%)
United States (2.0%)
Federal National Mortgage Association, effective yield
5.28%, due 7/15/96 ................................... USD 250,000 249,488 1.0
Federal Home Loan Mortgage Corp., effective yield
5.28%, due 7/15/96 ................................... USD 250,000 249,487 1.0
------------
Total Government & Government Agency Obligations (cost
$498,975) ................................................ 498,975
------------
Treasury Bills (0.6%)
Poland (0.6%)
Polish Treasury Bill, effective yield 24.94%, due
7/31/96 (cost $148,321) .............................. PLZ 400,000 144,198 0.6
------------ -----
TOTAL SHORT-TERM INVESTMENTS (cost $647,296) .............. 643,173 2.6
------------ -----
<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 $790,000 Federal Home Loan Mortgage
Corp., 6.07% due 11/20/98 (market value of collateral is
$787,222, including accrued interest). (cost
$770,334) .............................................. 770,334 3.0
------------ -----
TOTAL INVESTMENTS (cost $24,996,672) * .................... 25,368,511 99.6
Other Assets and Liabilities .............................. 110,058 0.4
------------ -----
NET ASSETS ................................................ $ 25,478,569 100.0
------------ -----
------------ -----
</TABLE>
- --------------
+ The coupon rate shown on floating rate note represents the rate at
period end.
-/- Non-income producing security.
** Underlying loan agreement currently in default.
{.} 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.
++ The coupon rate shown on step-up coupon bond represents the rate at
period end.
[.] Bond pays stated or additional interest with "payment-in-kind"
(PIK) bonds.
+/+ Issued with detachable warrants or value recovery rights. The
current market value of each warrant or right is zero.
{j} All or part of the Fund's holdings in this security is segregated
as collateral for when-issued securities and written futures held
by the Fund. See Note 1 of Notes To Financial Statements.
* For Federal income tax purposes, cost is $25,192,912 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 528,305
Unrealized depreciation: (352,706)
-------------
Net unrealized appreciation: $ 175,599
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
CURRENCY ABBREVIATIONS:
- ------------------------------------
<S> <C>
AUD Australian Dollars
CAD Canadian Dollars
DEM Deutsche Marks
DKK Danish Kroner
ESP Spanish Pesetas
FRF French Francs
GBP British Pounds
ITL Italian Liras
JPY Japanese Yen
NZD New Zealand Dollars
PLZ Polish Zloty
SEK Swedish Kronor
USD United States Dollars
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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>
Deutsche Marks.......................... 79,117 1.52645 08/05/96 $ (503)
Deutsche Marks.......................... 65,931 1.51856 08/05/96 (79)
Deutsche Marks.......................... 481,543 1.53865 08/13/96 (7,102)
Deutsche Marks.......................... 224,280 1.52645 08/13/96 (1,541)
Deutsche Marks.......................... 30,212 1.52313 08/13/96 (142)
Deutsche Marks.......................... 481,542 1.50708 08/13/96 2,838
Deutsche Marks.......................... 893,148 1.52024 09/30/96 (5,130)
Deutsche Marks.......................... 691,363 1.52064 09/30/96 (4,152)
Japanese Yen............................ 46,297 107.77799 09/18/96 95
Japanese Yen............................ 296,302 107.31250 09/18/96 1,893
New Zealand Dollars..................... 258,240 1.47885 08/28/96 (3,313)
Spanish Pesetas......................... 264,743 130.01000 09/10/96 (3,225)
-------------- --------------
Total Contracts to Sell (Receivable
amount $3,792,357)................... 3,812,718 (20,361)
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 14.96%
Total Open Forward Foreign Currency
Contracts, Net....................... $ (20,361)
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WRITTEN FUTURES CONTRACTS OUTSTANDING
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
EXPIRATION NO. OF MARKET
DESCRIPTION DATE CONTRACTS CURRENCY VALUE
- ---------------------------------------- ---------- --------- -------- -----------
<S> <C> <C> <C> <C>
U.S. 10-Year Treasury Note Futures (face
$430,000).............................. 09/19/96 4 USD $ 430,000
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (95.0%)
Australia (3.1%)
Australian Government, 9.75% due 3/15/02 ................ AUD 390,000 $ 322,406 3.1
Austria (1.0%)
Republic of Austria, 3.75% due 2/3/09 ................... JPY 11,000,000 103,477 1.0
Canada (4.7%)
Canadian Government:
8.75% due 12/1/05 ..................................... CAD 470,000 370,683 3.6
8% due 11/1/98 ........................................ CAD 155,000 117,766 1.1
Denmark (3.4%)
Kingdom of Denmark, 7% due 12/15/04 ..................... DKK 2,100,000 355,682 3.4
France (3.9%)
French Treasury (BTAN), 7% due 10/12/00 ................. FRF 1,550,000 319,458 3.1
French O.A.T., 6% due 10/25/25 .......................... FRF 510,000 83,783 0.8
Germany (14.5%)
Deutschland Republic, 6% due 1/5/06 ..................... DEM 1,850,000 1,173,013 11.3
Treuhandanstalt, 7.125% due 1/29/03 ..................... DEM 480,000 333,335 3.2
Italy (14.2%)
Italian Buoni Poliennali del Tesoro (BTPS):
10.5% due 11/1/00 ..................................... ITL 945,000,000 657,364 6.3
9.5% due 2/1/99 ....................................... ITL 540,000,000 362,445 3.5
Republic of Italy Series Y, 2.7968%, due 7/26/99+ ....... JPY 50,000,000 459,805 4.4
New Zealand (2.0%)
New Zealand Government, 8% due 2/15/01 .................. NZD 310,000 204,971 2.0
Spain (5.4%)
Kingdom of Spain, 10.1% due 2/28/01 ..................... ESP 67,000,000 563,761 5.4
Supranational (6.4%)
International Bank of Reconstruction & Development, 4.75%
due 12/20/04 ........................................... JPY 64,500,000 665,894 6.4
Sweden (2.7%)
Swedish Government, 13% due 6/15/01 ..................... SEK 1,500,000 277,918 2.7
United Kingdom (12.5%)
United Kingdom Treasury:
7% due 11/6/01 ........................................ GBP 570,000 870,299 8.4
7.5% due 12/7/06 ...................................... GBP 280,000 422,760 4.1
United States (21.2%)
United States Treasury:
7.875% due 11/15/04{z} ................................ USD 1,200,000 1,284,328 12.4
5.25% due 1/31/01 ..................................... USD 950,000 907,253 8.8
------------
Total Government & Government Agency Obligations (cost
$10,053,236) ............................................... 9,856,401
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $10,053,236) ........... 9,856,401 95.0
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
SHORT-TERM INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Treasury Bills (1.1%)
Mexico (1.1%)
Mexican Cetes, effective yield 28.64%, due 7/11/96 (cost
$112,414) .............................................. MXN 850,000 $ 111,077 1.1
------------ -----
<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 $195,000 Federal Home Loan Mortgage
Corp., 6.07% due 11/20/98 (market value of collateral is
$194,315, including accrued interest). (cost $190,082) ... 190,082 1.8
------------ -----
TOTAL INVESTMENTS (cost $10,355,732) * ...................... 10,157,560 97.9
Other Assets and Liabilities ................................ 220,969 2.1
------------ -----
NET ASSETS .................................................. $ 10,378,529 100.0
------------ -----
------------ -----
</TABLE>
- --------------
+ The coupon rate shown on floating rate note represents the rate at
period end.
{z} All or part of the Fund's holdings in this security is segregated
as collateral for written futures. See Note 1 of Notes To Financial
Statements.
* For Federal income tax purposes, cost is $10,373,720 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 106,182
Unrealized depreciation: (322,342)
-------------
Net unrealized depreciation: $ (216,160)
-------------
-------------
</TABLE>
<TABLE>
<CAPTION>
CURRENCY ABBREVIATIONS:
- ------------------------------------
<S> <C>
AUD Australian Dollars
CAD Canadian Dollars
DEM Deutsche Marks
DKK Danish Kroner
ESP Spanish Pesetas
FRF French Francs
GBP British Pounds
ITL Italian Liras
JPY Japanese Yen
MXN Mexican Pesos
NZD New Zealand Dollars
SEK Swedish Kronor
USD United States Dollars
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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>
Deutsche Marks.......................... 181,310 1.53922 08/05/96 $ (2,648)
Deutsche Marks.......................... 181,310 1.52555 08/05/96 (1,047)
Deutsche Marks.......................... 323,227 1.53865 08/13/96 (4,766)
Deutsche Marks.......................... 323,227 1.50708 08/13/96 1,905
Deutsche Marks.......................... 628,512 1.52024 09/30/96 (3,611)
Deutsche Marks.......................... 148,858 1.52064 09/30/96 (894)
Japanese Yen............................ 225,930 107.31250 09/18/96 1,443
New Zealand Dollars..................... 210,291 1.47885 08/28/96 (2,698)
Spanish Pesetas......................... 243,718 130.01000 09/10/96 (2,967)
-------------- --------------
Total Contracts to Sell (Receivable
amount $2,451,100)................... 2,466,383 (15,283)
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 23.76%
Total Open Forward Foreign Currency
Contracts, Net....................... $ (15,283)
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WRITTEN FUTURES CONTRACTS OUTSTANDING
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
EXPIRATION NO. OF MARKET
DESCRIPTION DATE CONTRACTS CURRENCY VALUE
- ---------------------------------------- ---------- --------- -------- -----------
<S> <C> <C> <C> <C>
U.S. 10-Year Treasury Note Futures (face
$322,500).............................. 09/19/96 3 USD $ 322,500
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (82.9%)
Supranational (10.6%)
International Bank of Reconstruction & Development, 5.25%
due 9/16/03 ............................................ USD 350,000 $ 323,536 6.4
Asian Development Bank, 8% due 4/30/01 .................. USD 200,000 210,086 4.2
United States (72.3%)
United States Treasury:
5.5% due 12/31/00 ..................................... USD 1,400,000 1,349,197 26.9
5.25% due 1/31/01 ..................................... USD 400,000 382,000 7.6
7.625% due 2/15/25 .................................... USD 300,000 322,875 6.4
Tenessee Valley Authority Series A, 6.375% due
6/15/05 ................................................ USD 600,000 576,970 11.5
Sallie Mae, 7.5% due 3/8/00 ............................. USD 350,000 360,609 7.2
Federal Home Loan Mortgage Corp., 7.125% due 7/21/99 .... USD 350,000 356,132 7.1
Federal National Mortgage Association:
7.85% due 9/10/98 ..................................... USD 100,000 103,156 2.1
6.80% due 1/10/03 ..................................... USD 90,000 89,958 1.8
Financial Assistance Corp., 9.375% due 7/21/03 .......... USD 75,000 85,496 1.7
------------
Total Government & Government Agency Obligations (cost
$4,238,826) ................................................ 4,160,015
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $4,238,826) ............ 4,160,015 82.9
------------ -----
<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 $820,000 Federal Home Loan Mortgage, 6%
due 3/6/01 (market value of collateral is $801,993,
including accrued interest). (cost $782,339) ............. 782,339 15.6
------------ -----
TOTAL INVESTMENTS (cost $5,021,165) * ....................... 4,942,354 98.5
Other Assets and Liabilities ................................ 74,097 1.5
------------ -----
NET ASSETS .................................................. $ 5,016,451 100.0
------------ -----
------------ -----
</TABLE>
- --------------
* For Federal income tax purposes, cost is $5,022,228 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 32,734
Unrealized depreciation: (112,608)
-------------
Net unrealized depreciation: $ (79,874)
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (25.2%)
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 48,000 $ 873,879 3.6
PAPER/PACKAGING
Venezolana de Cementos, S.A.C.A. "A" ...................... VENZ 375,000 716,367 2.9
CEMENT
Siderurgica Venezolana Sivensa (Sivensa) - ADR{\/} ........ VENZ 215,000 675,100 2.8
METALS - STEEL
Caemi Mineracao e Metalurgia S.A. Preferred -/-{z} ........ BRZL 11,090,000 657,292 2.7
METALS - STEEL
Cemex, S.A. de C.V. "CPO" ................................. MEX 170,000 603,298 2.5
BUILDING MATERIALS & COMPONENTS
Cia de Minas Buenaventura: ................................ PERU -- -- 2.4
METALS - NON-FERROUS
"C" ..................................................... -- 53,464 481,855 --
"B"-/- .................................................. -- 10,200 100,287 --
La Cementos Nacional, C.A. - GDR-/- {\/} .................. ECDR 3,100 548,700 2.3
CEMENT
Apasco S.A. ............................................... MEX 76,000 419,604 1.7
CEMENT
Grupo Mexico S.A. "B"-/- .................................. MEX 122,000 365,356 1.5
METALS - NON-FERROUS
Companhia Siderurgica Nacional S.A.{z} .................... BRZL 14,250,000 363,383 1.5
METALS - STEEL
Angel Estrada y Cia S.A.-/- ............................... ARG 93,000 307,023 1.3
PAPER/PACKAGING
------------
6,112,144
------------
Energy (19.9%)
C.A. La Electricidad de Caracas ........................... VENZ 972,296 809,365 3.3
ELECTRICAL & GAS UTILITIES
Chilectra S.A. - ADR{\/} .................................. CHLE 13,800 759,000 3.1
ELECTRICAL & GAS UTILITIES
Empresa Nacional de Electricidad S.A. - ADR{\/} ........... CHLE 33,900 728,850 3.0
ELECTRICAL & GAS UTILITIES
Companhia Energetica de Sao Paulo (CESP) Preferred-/- ..... BRZL 17,800,000 620,580 2.5
ELECTRICAL & GAS UTILITIES
YPF S.A. - ADR{\/} ........................................ ARG 21,200 477,000 2.0
OIL
Enron Global Power & Pipelines L.L.C. ..................... US 18,700 453,475 1.9
ENERGY SOURCES
Companhia Energetica de Minas Gerais (Cemig) - ADR{\/} .... BRZL 16,800 445,200 1.8
ELECTRICAL & GAS UTILITIES
Transportadora de Gas del Sur S.A. (TGS) - ADR{\/} ........ ARG 21,500 263,375 1.1
OIL
Light - Participacoes S.A.-/- ............................. BRZL 1,910,000 151,897 0.6
ELECTRICAL & GAS UTILITIES
Edelnor S.A. "B" .......................................... PERU 130,900 145,862 0.6
ELECTRICAL & GAS UTILITIES
------------
4,854,604
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (17.4%)
Telecomunicacoes Brasileiras S.A. (Telebras) - ADR{\/} .... BRZL 12,000 $ 835,500 3.4
TELEPHONE NETWORKS
Lojas Americanas S.A. Preferred -/-{z} .................... BRZL 40,400,000 796,812 3.3
RETAILERS-OTHER
Grupo Televisa, S.A. de C.V. - GDR-/- {\/} ................ MEX 21,500 661,125 2.7
BROADCASTING & PUBLISHING
Telecomunicacoes de Sao Paulo S.A. (TELESP): .............. BRZL -- -- 2.2
TELECOM - OTHER
Preferred{z} ............................................ -- 2,400,000 513,995 --
Common .................................................. -- 102,854 18,132 --
Ceteco Holding N.V. ....................................... NETH 9,630 525,273 2.2
RETAILERS-OTHER
Cifra, S.A. de C.V. "C"-/- ................................ MEX 310,000 442,507 1.8
RETAILERS-OTHER
Santa Isabel S.A. - ADR{\/} ............................... CHLE 11,000 305,250 1.3
RETAILERS-FOOD
Grupo Marti S.A.-/- ....................................... MEX 218,000 64,710 0.3
RETAILERS-OTHER
Grupo Situr, S.A. de C.V. "B"-/- .......................... MEX 416,000 58,723 0.2
LEISURE & TOURISM
------------
4,222,027
------------
Consumer Non-Durables (15.9%)
Bavaria ................................................... COL 207,968 729,165 3.0
BEVERAGES - ALCOHOLIC
Grupo Industrial Maseca, S.A. de C.V. "B" ................. MEX 671,000 701,098 2.9
FOOD
Companhia Tecidos Norte de Mina Preferred{z} .............. BRZL 1,620,000 637,414 2.6
TEXTILES & APPAREL
Grupo Embotellador de Mexico, S.A. de C.V. - GDR-/- {\/} ... MEX 51,600 548,250 2.2
BEVERAGES - NON-ALCOHOLIC
Grupo Industrial Bimbo, S.A. de C.V. "A" .................. MEX 99,000 458,430 1.9
FOOD
Quilmes Industrial S.A. - ADR-/- {\/} ..................... ARG 38,200 391,550 1.6
BEVERAGES - ALCOHOLIC
Grupo Modelo S.A. "C" ..................................... MEX 47,400 222,930 0.9
BEVERAGES - ALCOHOLIC
Industrias J B Duarte S.A. Preferred ...................... BRZL 215,600,000 83,757 0.3
FOOD
Ekco S.A. "CP"-/- ......................................... MEX 656,000 67,504 0.3
HOUSEHOLD PRODUCTS
Inversiones Aledo ......................................... VENZ 472,885 45,420 0.2
FOOD
------------
3,885,518
------------
Finance (12.4%)
Administradora de Fondos de Pensiones Provida S.A. -
ADR{\/} .................................................. CHLE 20,500 509,938 2.1
OTHER FINANCIAL
Uniao Bancos Brasileiras "A" Preferred-/- ................. BRZL 16,500,000 446,892 1.8
BANKS-MONEY CENTER
Suramericana de Seguros S.A. .............................. COL 24,200 431,049 1.8
INSURANCE - MULTI-LINE
First Financial Caribbean Corp. ........................... US 20,800 426,400 1.7
OTHER FINANCIAL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ..... MEX 200,000 $ 415,831 1.7
BANKS-MONEY CENTER
Grupo Financiero Banorte "B"-/- ........................... MEX 407,500 392,447 1.6
BANKS-REGIONAL
Banco BHIF - ADR-/- {\/} .................................. CHLE 13,200 265,650 1.1
BANKS-REGIONAL
Banco Bradesco S.A. Preferred ............................. BRZL 18,740,975 153,079 0.6
BANKS-MONEY CENTER
------------
3,041,286
------------
Multi Industry/Miscellaneous (3.7%)
San Luis "CPO" ............................................ MEX 76,000 467,230 1.9
CONGLOMERATE
BHI Corp.{\/} ............................................. BLZ 16,000 234,000 1.0
CONGLOMERATE
Grupo Sidek, S.A. de C.V. - ADR-/- {\/} ................... MEX 157,300 196,625 0.8
CONGLOMERATE
------------
897,855
------------
Capital Goods (1.9%)
Bufete Industrial, S.A. de C.V. - ADR-/- {\/} ............. MEX 26,500 460,438 1.9
CONSTRUCTION
------------ -----
TOTAL EQUITY INVESTMENTS (cost $22,683,600) ................. 23,473,872 96.4
------------ -----
<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 $340,000 Federal Home Loan Mortgage
Corp., 6.07% due 11/20/98 (market value of collateral is
$338,806, including accrued interest). (cost $330,143) ... 330,143 1.4
------------ -----
TOTAL INVESTMENTS (cost $23,013,743) * ...................... 23,804,015 97.8
Other Assets and Liabilities ................................ 542,955 2.2
------------ -----
NET ASSETS .................................................. $ 24,346,970 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{\/} U.S. currency denominated.
-/- Non-income producing security.
{z} All or part of the Fund's holdings in this security is segregated
as collateral for written futures. See Note 1 of Notes To Financial
Statements.
* For Federal income tax purposes, cost is $23,142,899 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 3,192,708
Unrealized depreciation: (2,531,592)
-------------
Net unrealized appreciation: $ 661,116
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
The Fund's Portfolio of Investments at June 30, 1996, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
{D}
---------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS) .................. 6.0 6.0
Belize (BLZ/BZD) ..................... 1.0 1.0
Brazil (BRZL/BRL) .................... 23.3 23.3
Chile (CHLE/CLP) ..................... 10.6 10.6
Colombia (COL/COP) ................... 4.8 4.8
Ecuador (ECDR/ECS) ................... 2.3 2.3
Mexico (MEX/MXN) ..................... 30.4 30.4
Netherlands (NETH/NLG) ............... 2.2 2.2
Peru (PERU/PES) ...................... 3.0 3.0
United States & Other (US/USD) ....... 3.6 3.6 7.2
Venezuela (VENZ/VEB) ................. 9.2 9.2
------ ----- -----
Total ............................... 96.4 3.6 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $24,346,970.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WRITTEN FUTURES CONTRACTS OUTSTANDING
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
EXPIRATION NO. OF MARKET
DESCRIPTION DATE CONTRACTS CURRENCY VALUE
- ---------------------------------------- ---------- --------- -------- -----------
<S> <C> <C> <C> <C>
Brazilian Real Currency Futures, strike
rate 1.0109 (face $2,473,000).......... 07/31/96 25 USD $ 2,472,500
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (23.7%)
Schweizerischer Bankverein (Swiss Bank Corp.) ........... SWTZ 3,138 $ 619,870 2.0
BANKS-MONEY CENTER
Sun Alliance Group PLC .................................. UK 95,000 548,673 1.8
INSURANCE - MULTI-LINE
National Australia Bank Ltd. ............................ AUSL 53,089 490,097 1.6
BANKS-MONEY CENTER
Union Bank of Switzerland - Bearer ...................... SWTZ 477 467,310 1.5
BANKS-MONEY CENTER
CS Holding AG - Registered .............................. SWTZ 4,625 440,159 1.4
BANKS-MONEY CENTER
Fortis Amev N.V. ........................................ NETH 14,800 424,469 1.4
OTHER FINANCIAL
AEGON N.V. .............................................. NETH 7,562 348,606 1.1
INSURANCE-LIFE
First Tennessee National Corp. .......................... US 10,800 330,750 1.1
BANKS-REGIONAL
ING Groep N.V. .......................................... NETH 9,988 298,161 1.0
OTHER FINANCIAL
ABN AMRO Holding N.V. ................................... NETH 5,398 290,004 0.9
BANKS-REGIONAL
American General Corp. .................................. US 7,400 269,175 0.9
INSURANCE-LIFE
Generale de Banque S.A. ................................. BEL 754 262,140 0.9
BANKS-MONEY CENTER
IKB Deutsche Industriebank AG ........................... GER 1,382 257,273 0.8
BANKS-REGIONAL
Lloyds Abbey Life PLC ................................... UK 31,000 244,496 0.8
INSURANCE-LIFE
National Westminster Bank PLC ........................... UK 22,700 216,921 0.7
BANKS-MONEY CENTER
Sun Hung Kai Properties Ltd. ............................ HK 18,400 186,009 0.6
REAL ESTATE
General Accident PLC .................................... UK 16,970 171,913 0.6
INSURANCE - PROPERTY-CASUALTY
Deutsche Bank AG ........................................ GER 3,500 165,768 0.5
BANKS-MONEY CENTER
Mercury Asset Management Group PLC ...................... UK 10,211 152,983 0.5
INVESTMENT MANAGEMENT
Banco Popular Espanol S.A.-/- ........................... SPN 710 126,730 0.4
BANKS-MONEY CENTER
Commercial Union PLC .................................... UK 13,382 120,502 0.4
INSURANCE - MULTI-LINE
Henderson Investment Ltd. ............................... HK 129,000 115,826 0.4
REAL ESTATE
Dresdner Bank AG ........................................ GER 4,540 114,232 0.4
BANKS-MONEY CENTER
Kredietbank N.V. ........................................ BEL 315 94,359 0.3
BANKS-REGIONAL
Amoy Properties Ltd. .................................... HK 78,000 94,219 0.3
REAL ESTATE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F13
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Banco de Santander S.A. ................................. SPN 1,915 $ 89,494 0.3
BANKS-MONEY CENTER
M & G Group PLC ......................................... UK 5,000 89,272 0.3
INVESTMENT MANAGEMENT
Societe Generale Paris .................................. FR 475 52,305 0.2
BANKS-MONEY CENTER
Gerrard & National Holdings PLC ......................... UK 7,080 38,802 0.1
SECURITIES BROKER
Henderson Land Development Co., Ltd. .................... HK 5,000 37,465 0.1
REAL ESTATE
Realty Development Corp., Ltd. "A" ...................... HK 10,000 34,946 0.1
REAL ESTATE
Compagnie Financiere de Paribas S.A. .................... FR 524 30,991 0.1
OTHER FINANCIAL
Commerzbank AG .......................................... GER 130 26,937 0.1
BANKS-MONEY CENTER
UAP Compagnie ........................................... FR 1,316 26,755 0.1
INSURANCE - MULTI-LINE
------------
7,277,612
------------
Energy (10.9%)
Elektrowatt AG .......................................... SWTZ 1,910 707,238 2.3
ELECTRICAL & GAS UTILITIES
Royal Dutch Petroleum Co. ............................... NETH 2,678 414,030 1.3
OIL
Electrabel S.A. ......................................... BEL 1,880 404,488 1.3
ELECTRICAL & GAS UTILITIES
Exxon Corp. ............................................. US 4,000 347,500 1.1
OIL
Mobil Corp. ............................................. US 2,900 325,163 1.1
OIL
Reunies Electrobel & Tractebel S.A. ..................... BEL 763 312,835 1.0
ELECTRICAL & GAS UTILITIES
Pacific Gas and Electric Co. ............................ US 9,550 222,038 0.7
ELECTRICAL & GAS UTILITIES
RWE AG .................................................. GER 4,800 187,239 0.6
ELECTRICAL & GAS UTILITIES
Elf Aquitaine ........................................... FR 1,920 141,423 0.5
OIL
Groupe Bruxelles Lambert S.A. ........................... BEL 1,050 131,586 0.4
OIL
Shell Transport & Trading Co., PLC ...................... UK 6,530 95,603 0.3
OIL
Union Electrica Fenosa S.A. ............................. SPN 5,000 32,198 0.1
ELECTRICAL & GAS UTILITIES
British Gas PLC ......................................... UK 11,000 30,741 0.1
GAS PRODUCTION & DISTRIBUTION
Iberdrola S.A. .......................................... SPN 2,000 20,553 0.1
ELECTRICAL & GAS UTILITIES
------------
3,372,635
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F14
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (7.7%)
Broken Hill Proprietary Co., Ltd. ....................... AUSL 40,819 $ 563,474 1.8
MISC. MATERIALS & COMMODITIES
Solvay S.A. "A" ......................................... BEL 751 461,572 1.5
CHEMICALS
Amcor Ltd. .............................................. AUSL 61,200 415,918 1.4
PAPER/PACKAGING
Akzo Nobel N.V. ......................................... NETH 3,069 368,100 1.2
CHEMICALS
BASF AG ................................................. GER 1,020 291,869 1.0
CHEMICALS
Monsanto Co. ............................................ US 7,500 243,750 0.8
CHEMICALS
------------
2,344,683
------------
Services (6.4%)
Telecom Corporation of New Zealand Ltd. ................. NZ 133,160 560,288 1.8
TELEPHONE NETWORKS
McGraw-Hill, Inc. ....................................... US 6,980 319,335 1.0
BROADCASTING & PUBLISHING
Dun & Bradstreet Corp. .................................. US 4,800 300,000 1.0
BROADCASTING & PUBLISHING
United News & Media PLC ................................. UK 21,918 236,841 0.8
BROADCASTING & PUBLISHING
Royal PTT Nederland N.V. ................................ NETH 5,915 224,111 0.7
TELEPHONE NETWORKS
THORN EMI PLC ........................................... UK 5,500 153,190 0.5
LEISURE & TOURISM
Cathay Pacific Airways .................................. HK 57,000 104,567 0.3
TRANSPORTATION - AIRLINES
Granada Group PLC, Convertible Preferred, 7.5% till
4/30/03 ................................................ UK 23,482 103,487 0.3
LEISURE & TOURISM
------------
2,001,819
------------
Consumer Non-Durables (5.5%)
Philip Morris Cos., Inc. ................................ US 3,700 384,800 1.3
FOOD
Avon Products, Inc. ..................................... US 8,000 361,000 1.2
PERSONAL CARE/COSMETICS
Universal Corp. ......................................... US 12,200 323,300 1.1
TOBACCO
Brown-Forman Corp. "B" .................................. US 6,200 248,000 0.8
BEVERAGES - ALCOHOLIC
Noble China-/- {/\} ..................................... CHNA 67,900 164,178 0.5
BEVERAGES - ALCOHOLIC
Bass PLC ................................................ UK 6,600 82,846 0.3
BEVERAGES - ALCOHOLIC
Associated British Foods Group PLC ...................... UK 8,400 50,405 0.2
FOOD
Dairy Farm International Holdings Ltd.{\/} .............. HK 36,000 30,420 0.1
FOOD
------------
1,644,949
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F15
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Health Care (3.9%)
Bristol Myers Squibb Co. ................................ US 6,000 $ 540,000 1.8
PHARMACEUTICALS
Bayer AG ................................................ GER 12,500 441,965 1.4
PHARMACEUTICALS
Siemens AG - New ........................................ GER 4,270 228,359 0.7
MEDICAL TECHNOLOGY & SUPPLIES
------------
1,210,324
------------
Capital Goods (2.9%)
General Electric PLC .................................... UK 51,900 279,201 0.9
AEROSPACE/DEFENSE
Lockheed Martin Corp. ................................... US 2,726 228,984 0.7
AEROSPACE/DEFENSE
Rolls-Royce PLC ......................................... UK 42,548 147,970 0.5
AEROSPACE/DEFENSE
Thomson CSF S.A. ........................................ FR 3,275 92,197 0.3
AEROSPACE/DEFENSE
BICC PLC ................................................ UK 17,200 82,649 0.3
INDUSTRIAL COMPONENTS
Hopewell Holdings Ltd. .................................. HK 114,000 61,856 0.2
CONSTRUCTION
------------
892,857
------------
Multi Industry/Miscellaneous (2.4%)
Mannesmann AG ........................................... GER 770 266,425 0.9
MULTI-INDUSTRY
VEBA AG ................................................. GER 5,400 287,264 0.9
CONGLOMERATE
Pacific Dunlop Ltd. ..................................... AUSL 85,000 190,996 0.6
MULTI-INDUSTRY
------------
744,685
------------
Consumer Durables (1.4%)
GKN PLC ................................................. UK 28,600 438,702 1.4
------------
AUTO PARTS
Technology (0.4%)
Alcatel Alsthom Compagnie Generale d'Electricite ........ FR 1,290 112,687 0.4
TELECOM TECHNOLOGY
------------ -----
TOTAL EQUITY INVESTMENTS (cost $16,577,161) ............... 20,040,953 65.2
------------ -----
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (29.2%)
Australia (2.0%)
Australian Government, 7% due 4/15/00 ................. AUD 831,000 624,490 2.0
Canada (0.6%)
Canadian Government, 8.75% due 12/1/05 ................ CAD 250,000 197,172 0.6
Denmark (1.0%)
Kingdom of Denmark, 8% due 3/15/06 .................... DKK 1,700,000 302,038 1.0
</TABLE>
The accompanying notes are an integral part of the financial statements.
F16
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (Continued)
Germany (7.2%)
Deutschland Republic:
6.75% due 4/22/03 ................................... DEM 1,500,000 $ 1,020,260 3.3
6.25% due 1/4/24 .................................... DEM 1,070,000 623,228 2.0
Treuhandanstalt, 6.375% due 7/1/99 .................... DEM 500,000 343,244 1.1
Bundesschatzanweisungen, 6.875% due 12/2/98 ........... DEM 350,000 242,688 0.8
Italy (4.3%)
Italian Buoni Poliennali del Tesoro (BTPS):
10.5% due 9/1/05 .................................... ITL 1,180,000,000 830,933 2.7
10.5% due 4/15/98 ................................... ITL 370,000,000 249,937 0.8
Republic of Italy, 3.75% due 6/8/05 ................... JPY 25,000,000 236,377 0.8
Spain (1.3%)
Kingdom of Spain, 10.3% due 6/15/02 ................... ESP 47,430,000 403,207 1.3
Sweden (2.4%)
Swedish Government, 6% due 2/9/05 ..................... SEK 5,500,000 723,595 2.4
United Kingdom (4.4%)
United Kingdom Treasury Conversion, 9.5% due
4/18/05 .............................................. GBP 451,000 773,067 2.5
United Kingdom Treasury, 9.5% due 1/15/99 ............. GBP 349,000 576,553 1.9
United States (6.0%)
United States Treasury:
7.25% due 5/15/04 ................................... USD 1,060,000 1,092,463 3.6
6.25% due 8/15/23 ................................... USD 400,000 361,984 1.2
7.5% due 2/15/05 .................................... USD 250,000 261,793 0.9
6.5% due 8/15/05 .................................... USD 105,000 103,150 0.3
------------
Total Government & Government Agency Obligations (cost
$8,617,239) .............................................. 8,966,179
------------
Corporate Bonds (3.9%)
Germany (1.7%)
Siemens Capital Corp., 8% due 6/24/02+/+ .............. USD 180,000 244,800 0.8
Commerzbank AG, Convertible Bond, 9.45% due
12/31/00+ ............................................ DEM 187,000 164,957 0.5
Deutsche Bank AG, 9% due 12/31/02+/+ .................. DEM 175,000 138,600 0.4
IKB Deutsche Industriebank, 6.45% due 3/31/06 ......... DEM 1,500 960 --
United Kingdom (2.2%)
Daily Mail & General Trust, Convertible Bond, 5.75% due
9/26/03 .............................................. GBP 167,000 420,028 1.4
Land Securities PLC, Convertible Bond, 9.375% due
7/31/04 .............................................. GBP 140,000 240,941 0.8
------------
Total Corporate Bonds (cost $1,111,941) ................... 1,210,286
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $9,729,180) .......... 10,176,465 33.1
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F17
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
MARKET % OF NET
REPURCHASE AGREEMENT VALUE ASSETS
- ----------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 28, 1996, with State Street Bank & Trust Co.,
due July 1, 1996, for an effective yield of 5.2%,
collateralized by $290,000 Federal Home Loan Mortgage
Corp., 6.07% due 11/20/98 (market value of collateral is
$288,981, including accrued interest). (cost
$280,121) .............................................. $ 280,121 0.9
------------ -----
TOTAL INVESTMENTS (cost $26,586,462) * .................... 30,497,539 99.2
Other Assets and Liabilities .............................. 259,678 0.8
------------ -----
NET ASSETS ................................................ $ 30,757,217 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{/\} Security is denominated in CAD.
-/- Non-income producing security.
{\/} U.S. currency denominated.
+ The coupon rate shown on floating rate note represents the rate at
period end.
+/+ Issued with detachable warrants or value recovery rights. The
current market value of each warrant or right is zero.
* For Federal income tax purposes, cost is $26,597,898 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 4,597,727
Unrealized depreciation: (698,086)
-------------
Net unrealized appreciation: $ 3,899,641
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1996, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 5.4 2.0 7.4
Belgium (BEL/BEF) .................... 5.4 5.4
Canada (CAN/CAD) ..................... 0.6 0.6
China (CHNA/RMB) ..................... 0.5 0.5
Denmark (DEN/DKK) .................... 1.0 1.0
France (FR/FRF) ...................... 1.6 1.6
Germany (GER/DEM) .................... 7.3 8.9 16.2
Hong Kong (HK/HKD) ................... 2.1 2.1
Italy (ITLY/ITL) ..................... 4.3 4.3
Netherlands (NETH/NLG) ............... 7.6 7.6
New Zealand (NZ/NZD) ................. 1.8 1.8
Spain (SPN/ESP) ...................... 0.9 1.3 2.2
Sweden (SWDN/SEK) .................... 2.4 2.4
Switzerland (SWTZ/CHF) ............... 7.2 7.2
United Kingdom (UK/GBP) .............. 10.8 6.6 17.4
United States & Other (US/USD) ....... 14.6 6.0 1.7 22.3
------ ----- ----- -----
Total ............................... 65.2 33.1 1.7 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $30,757,217.
The accompanying notes are an integral part of the financial statements.
F18
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
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>
Deutsche Marks.......................... 1,419,808 1.53750 08/30/96 $ (21,434)
French Francs........................... 38,982 5.14610 08/06/96 (118)
French Francs........................... 175,531 5.18000 08/19/96 (1,786)
Netherland Guilders..................... 606,231 1.70253 08/15/96 (1,249)
Swiss Francs............................ 426,838 1.24000 09/19/96 581
-------------- --------------
Total Contracts to Sell (Receivable
amount $2,643,384)................... 2,667,390 (24,006)
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 8.67%
Total Open Forward Foreign Currency
Contracts, Net....................... $ (24,006)
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F19
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Wireless Communications (19.0%)
Cellularvision USA, Inc.-/- ............................... US 140,000 $ 2,205,000 3.3
WinStar Communications, Inc.-/- ........................... US 80,000 1,995,000 3.0
DDI Corp. ................................................. JPN 187 1,635,908 2.4
Korea Mobile Telecommunications: .......................... KOR -- -- 2.2
ADR-/- {\/} ............................................. -- 62,000 1,061,750 --
Common-/- ............................................... -- 320 396,469 --
Rural Cellular Corp. "A"-/- ............................... US 100,000 1,275,000 1.9
Centennial Cellular Corp. "A"-/- .......................... US 71,500 1,206,563 1.8
Clearnet Communications, Inc. "A"-/- {\/} ................. CAN 63,000 1,055,250 1.5
Telephone and Data Systems, Inc. .......................... US 19,200 864,000 1.3
Western Wireless Corp. "A"-/- ............................. US 21,000 448,875 0.7
Netcom ASA-/- ............................................. NOR 35,000 369,540 0.6
Grupo Iusacell S.A. de C.V. "D" - ADR-/- {\/} ............. MEX 22,000 192,500 0.3
------------
12,705,855
------------
Telecom Equipment (17.3%)
DSC Communications Corp.-/- ............................... US 66,100 1,991,263 3.0
Glenayre Technologies, Inc.-/- ............................ US 37,500 1,875,000 2.8
Nera AS - ADR{\/} ......................................... NOR 48,000 1,518,000 2.2
Tadiran Telecommunications Ltd.-/- {\/} ................... ISRL 90,000 1,440,000 2.2
Nokia AB Preferred - ADR{\/} .............................. FIN 37,000 1,369,000 2.0
Spectrian Corp.-/- ........................................ US 80,000 1,140,000 1.7
Gilat Satellite Networks Ltd.-/- {\/} ..................... ISRL 40,000 880,000 1.3
Allgon AB "B" Free ........................................ SWDN 33,000 550,922 0.8
Allen Group, Inc. ......................................... US 25,000 543,750 0.8
Microwave Power Devices, Inc.-/- .......................... US 19,400 116,400 0.2
PCS Wireless, Inc.-/- ..................................... CAN 200,000 104,045 0.2
Unitech Industries, Inc.(.) -/- ........................... US 100,000 75,000 0.1
------------
11,603,380
------------
Telephone - Long Distance (11.2%)
Call-Net Enterprises, Inc. "B"-/- ......................... CAN 233,000 2,748,606 4.1
Tel-Save Holdings, Inc.-/- ................................ US 100,000 2,125,000 3.2
PT Indonesia Satellite (Indosat) - ADR{\/} ................ INDO 45,000 1,507,500 2.2
Philippine Long Distance Telephone Co. - ADR{\/} .......... PHIL 20,000 1,162,500 1.7
------------
7,543,606
------------
Telephone Networks (10.7%)
Telefonica de Espana - ADR{\/} ............................ SPN 40,000 2,205,000 3.3
Telecomunicacoes Brasileiras S.A. (Telebras) - ADR{\/} .... BRZL 20,876 1,453,492 2.2
SPT Telecom-/- ............................................ CZCH 11,000 1,344,587 2.0
Hellenic Telecommunications - 144A{.} ..................... GREC 60,600 1,005,255 1.5
Portugal Telecom S.A. - ADR{\/} ........................... PORT 22,000 577,500 0.9
Pakistan Telecommunications Co., Ltd. - GDR-/- {\/} ....... PAK 3,300 382,800 0.6
Matav (Hungarian Telecommunications Co., Ltd.)-/- ......... HGRY 1,000 136,621 0.2
------------
7,105,255
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F20
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Telecom Technology (7.7%)
DSP Communications, Inc.-/- ............................... US 94,400 $ 4,849,800 7.2
Voice Control Systems, Inc.-/- ............................ US 35,000 319,375 0.5
------------
5,169,175
------------
Networking (5.1%)
Cisco Systems, Inc.-/- .................................... US 34,000 1,925,250 2.9
Performance Technologies, Inc.-/- ......................... US 100,000 1,462,500 2.2
------------
3,387,750
------------
Multi-Industry (4.8%)
Olivetti Group-/- ......................................... ITLY 3,100,000 1,669,464 2.5
Mannesmann AG ............................................. GER 4,500 1,557,032 2.3
------------
3,226,496
------------
Telephone - Regional/Local (4.4%)
IntelCom Group, Inc.-/- ................................... US 80,000 2,000,000 3.0
McLeod, Inc.-/- ........................................... US 40,000 960,000 1.4
------------
2,960,000
------------
Cable Television (2.7%)
Comcast UK Cable Partners Ltd. "A"{\/} .................... UK 85,000 1,083,750 1.6
United International Holdings, Inc. "A"-/- ................ US 55,000 756,250 1.1
------------
1,840,000
------------
Semiconductors (2.3%)
LSI Logic Corp.-/- ........................................ US 60,000 1,560,000 2.3
------------
Wholesale & International Trade (2.0%)
CellStar Corp.-/- ......................................... US 150,000 1,312,500 2.0
------------
Consumer Electronics (0.9%)
Three-Five Systems, Inc.-/- ............................... US 61,800 625,725 0.9
------------
Building Materials & Components (0.9%)
PT Bakrie and Brothers .................................... INDO 400,000 567,254 0.9
------------
Beverages - Alcoholic (0.0%)
Bavaria ................................................... COL 3,000 10,518 --
------------ -----
TOTAL EQUITY INVESTMENTS (cost $48,898,214) ................. 59,617,514 89.0
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F21
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
MARKET % OF NET
REPURCHASE AGREEMENT VALUE ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 28, 1996, with State Street Bank & Trust Co.,
due July 1, 1996, for an effective yield of 5.2%,
collateralized by $8,200,000 Federal Home Loan Bank,
6.045% due 10/17/97 (market value of collateral is
$8,290,527, including accrued interest). (cost
$8,124,519) .............................................. $ 8,124,519 12.1
------------ -----
TOTAL INVESTMENTS (cost $57,022,733) * ...................... 67,742,033 101.1
Other Assets and Liabilities ................................ (737,444) (1.1)
------------ -----
NET ASSETS .................................................. $ 67,004,589 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
(.) Restricted securities. At June 30, 1996, the Fund owned the
following restricted security constituting 0.1% of net assets which
may not be publicly sold without registration under the Securities
Act of 1933 (Note 1). Additional information on the restricted
security is as follows:
<TABLE>
<CAPTION>
FAIR
VALUE
PER
SHARE
ACQUISITION AT
DESCRIPTION ACQUISITION DATE SHARES COST 6/30/96
----------------------------------------------- ----------------- ------ ----------- ------
<S> <C> <C> <C> <C>
Unitech Industries, Inc........................ 08/24/95 100,000 $ 1,200,000 $0.75
</TABLE>
{.} 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 $57,054,838 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 16,236,537
Unrealized depreciation: (5,549,342)
-------------
Net unrealized appreciation: $ 10,687,195
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F22
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
The Fund's Portfolio of Investments at June 30, 1996, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
{D}
---------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Brazil (BRZL/BRL) .................... 2.2 2.2
Canada (CAN/CAD) ..................... 5.8 5.8
Czech Republic (CZCH/CSK) ............ 2.0 2.0
Finland (FIN/FIM) .................... 2.0 2.0
Germany (GER/DEM) .................... 2.3 2.3
Greece (GREC/GRD) .................... 1.5 1.5
Hungary (HGRY/HUF) ................... 0.2 0.2
Indonesia (INDO/IDR) ................. 3.1 3.1
Israel (ISRL/ILS) .................... 3.5 3.5
Italy (ITLY/ITL) ..................... 2.5 2.5
Japan (JPN/JPY) ...................... 2.4 2.4
Korea (KOR/KRW) ...................... 2.2 2.2
Mexico (MEX/MXN) ..................... 0.3 0.3
Norway (NOR/NOK) ..................... 2.8 2.8
Pakistan (PAK/PKR) ................... 0.6 0.6
Philippines (PHIL/PHP) ............... 1.7 1.7
Portugal (PORT/PTE) .................. 0.9 0.9
Spain (SPN/ESP) ...................... 3.3 3.3
Sweden (SWDN/SEK) .................... 0.8 0.8
United Kingdom (UK/GBP) .............. 1.6 1.6
United States & Other (US/USD) ....... 47.3 11.0 58.3
------ ----- -----
Total ............................... 89.0 11.0 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $67,004,589.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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>
Deutsche Marks.......................... 528,300 1.53700 08/30/96 $ (7,806)
Japanese Yen............................ 178,349 105.65000 07/08/96 6,128
Japanese Yen............................ 100,358 103.67800 08/09/96 4,775
Japanese Yen............................ 267,205 103.60000 08/14/96 12,718
Japanese Yen............................ 138,536 107.41200 08/30/96 1,113
-------------- --------------
Total Contracts to Sell (Receivable
amount $1,229,676)................... 1,212,748 16,928
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 1.81%
Total Open Forward Foreign Currency
Contracts, Net....................... $ 16,928
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F23
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (22.1%)
Banco Commercial S.A. - 144A ADR{.} {\/} .................. URGY 34,700 $ 624,600 3.8
BANKS-REGIONAL
Banco Totta & Acores "B" - Registered ..................... PORT 22,700 444,566 2.7
BANKS-MONEY CENTER
Bukit Sembawang Estates Ltd. .............................. SING 17,000 442,325 2.7
REAL ESTATE
Peregrine Investment Holdings Ltd. ........................ HK 305,000 439,345 2.7
INVESTMENT MANAGEMENT
Korea First Bank-/- ....................................... KOR 48,000 430,254 2.6
BANKS-REGIONAL
First Financial Caribbean Corp. ........................... US 20,500 420,250 2.5
OTHER FINANCIAL
Banco BHIF - ADR-/- {\/} .................................. CHLE 17,400 350,175 2.1
BANKS-REGIONAL
Banco LatinoAmericano de Exportaciones S.A. (Bladex)
"E"{\/} .................................................. PAN 5,200 292,500 1.8
OTHER FINANCIAL
Banco de Colombia - 144A GDR{.} {\/} ...................... COL 23,000 195,500 1.2
BANKS-MONEY CENTER
------------
3,639,515
------------
Energy (20.1%)
Samchully Co.: ............................................ KOR -- -- 3.5
ENERGY SOURCES
Common .................................................. -- 6,700 520,469 --
Bonus-/- ................................................ -- 620 48,163 --
New 2-/- ................................................ -- 248 18,687 --
Czeske Energeticke Zavody (CEZ AS)-/- ..................... CZCH 14,000 557,698 3.4
ELECTRICAL & GAS UTILITIES
Benton Oil & Gas Co.-/- ................................... US 24,900 547,800 3.3
OIL
Empresa Nacional de Electricidad S.A. - ADR{\/} ........... CHLE 25,000 537,500 3.2
ELECTRICAL & GAS UTILITIES
Rutherford-Moran Oil Corp.-/- ............................. US 16,600 404,625 2.4
OIL
Compania Boliviana de Energia Electrica{\/} ............... BOL 9,800 384,650 2.3
ELECTRICAL & GAS UTILITIES
Basic Petroleum International Ltd.-/- ..................... US 10,800 288,900 1.7
OIL
LUKoil Holding - ADR{\/} .................................. RUS 1,300 56,225 0.3
GAS PRODUCTION & DISTRIBUTION
------------
3,364,717
------------
Consumer Non-Durables (15.5%)
South African Breweries Ltd.: ............................. SAFR -- -- 3.9
BEVERAGES - ALCOHOLIC
ADR{\/} ................................................. -- 17,000 497,250 --
Common .................................................. -- 5,000 146,719 --
Playmates Toys Holdings Ltd. .............................. HK 2,356,000 572,221 3.5
TOYS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F24
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (Continued)
San Miguel Brewery Hong Kong Ltd. ......................... HK 1,000,000 $ 471,546 2.9
BEVERAGES - ALCOHOLIC
Noble China-/- {/\} ....................................... CHNA 135,300 327,145 2.0
BEVERAGES - ALCOHOLIC
Weg S.A. Preferred ........................................ BRZL 700,000 317,263 1.9
HOUSEHOLD PRODUCTS
Vitasoy International Holdings Ltd. ....................... HK 600,000 218,978 1.3
BEVERAGES - NON-ALCOHOLIC
Embotelladora Latino Americana-/- ......................... PERU 1,616 1,211 --
BEVERAGES - NON-ALCOHOLIC
------------
2,552,333
------------
Multi Industry/Miscellaneous (10.8%)
John Keells Holdings Ltd. - 144A GDR{.} {\/} .............. SLNKA 116,214 552,017 3.3
CONGLOMERATE
Anglo American Corporation of South African Ltd. -
ADR{\/} .................................................. US 7,000 442,750 2.7
CONGLOMERATE
Grupo Industrial Camesa, S.A. de C.V. "B"-/- .............. MEX 710,000 335,330 2.0
MULTI-INDUSTRY
Pliva D.D. - Reg. S GDR-/- {c} {\/} ....................... UK 7,800 310,050 1.9
MISCELLANEOUS
Mahindra & Mahindra Ltd. - GDR-/- {\/} .................... IND 13,333 143,330 0.9
MISCELLANEOUS
------------
1,783,477
------------
Services (9.7%)
SPT Telecom-/- ............................................ CZCH 4,070 497,497 3.0
TELEPHONE NETWORKS
Gilat Satellite Networks Ltd.-/- {\/} ..................... ISRL 21,800 479,600 2.9
TELECOM - OTHER
Grupo Iusacell S.A. - "L" ADR-/- {\/} ..................... MEX 37,500 403,125 2.4
WIRELESS COMMUNICATIONS
Amway Asia Pacific Ltd.{\/} ............................... HK 7,600 229,900 1.4
WHOLESALE & INTERNATIONAL TRADE
------------
1,610,122
------------
Materials/Basic Industry (8.4%)
Caemi Mineracao e Metalurgia S.A. Preferred-/- ............ BRZL 14,950,000 886,069 5.4
METALS - STEEL
Ashanti Goldfields Co., Ltd. - GDR{\/} .................... GHNA 15,000 296,250 1.8
GOLD
Oryx Gold Holdings Ltd. ................................... SAFR 84,700 187,874 1.1
GOLD
Corporacion Financiera del Valle S.A. - ADR{\/} ........... COL 2,652 20,553 0.1
MISC. MATERIALS & COMMODITIES
------------
1,390,746
------------
Capital Goods (3.5%)
Tadiran Telecommunications Ltd.-/- {\/} ................... ISRL 28,300 452,800 2.7
TELECOM EQUIPMENT
Hindalco Industries Ltd. - 144A GDR{.} -/- {\/} ........... IND 3,500 131,250 0.8
INDUSTRIAL COMPONENTS
------------
584,050
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F25
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables (2.5%)
Marco Polo S.A. Preferred "B"-/- .......................... BRZL 1,300,000 $ 268,055 1.6
AUTO PARTS
Tata Engineering and Locomotive Co., Ltd. - GDR{\/} ....... IND 8,000 144,000 0.9
AUTOMOBILES
------------
412,055
------------
Technology (2.0%)
Chung Ho Computer Co. ..................................... KOR 4,520 327,993 2.0
COMPUTERS & PERIPHERALS
------------ -----
TOTAL EQUITY INVESTMENTS (cost $15,121,773) ................. 15,665,008 94.6
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Pan American Silver Corp. Special Warrants, expire
8/27/96(.) -/- ........................................... CAN 19,500 142,878 0.9
METALS - NON-FERROUS
Peregrine Investment Holdings Ltd. Warrants, expire
5/15/98-/- ............................................... HK 30,500 3,783 --
INVESTMENT MANAGEMENT
------------ -----
TOTAL WARRANTS (cost $170,058) .............................. 146,661 0.9
------------ -----
<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 $680,000 Federal Home Loan Bank, 6% due
10/30/97 (market value of collateral is $685,451,
including accrued interest). (cost $668,289) ............. 668,289 4.0
------------ -----
TOTAL INVESTMENTS (cost $15,960,120) * ...................... 16,479,958 99.5
Other Assets and Liabilities ................................ 78,813 0.5
------------ -----
NET ASSETS .................................................. $ 16,558,771 100.0
------------ -----
------------ -----
</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.
{/\} Security is denominated in CAD.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
(.) Restricted securities. At June 30, 1996, the Fund owned the
following restricted security constituting 0.9% of net assets which
may not be publicly sold without registration under the Securities
Act of 1933 (Note 1). Additional information on the restricted
security is as follows:
<TABLE>
<CAPTION>
FAIR
VALUE
PER
NUMBER SHARE
OF ACQUISITION AT
DESCRIPTION ACQUISITION DATE WARRANTS COST 6/30/96
----------------------------------------------- ----------------- ------ ----------- ------
<S> <C> <C> <C> <C>
Pan American Silver Corp. Special Warrants,
expire 8/27/96................................ 05/28/96 19,500 $ 170,058 $7.33
</TABLE>
* For Federal income tax purposes, cost is $15,973,797 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,170,802
Unrealized depreciation: (664,641)
-------------
Net unrealized appreciation: $ 506,161
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F26
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS 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>
Bolivia (BOL/BOL) .................... 2.3 2.3
Brazil (BRZL/BRL) .................... 8.9 8.9
Canada (CAN/CAD) ..................... 0.9 0.9
Chile (CHLE/CLP) ..................... 5.3 5.3
China (CHNA/RMB) ..................... 2.0 2.0
Colombia (COL/COP) ................... 1.3 1.3
Czech Republic (CZCH/CSK) ............ 6.4 6.4
Ghana (GHNA/GHC) ..................... 1.8 1.8
Hong Kong (HK/HKD) ................... 11.8 11.8
India (IND/INR) ...................... 2.6 2.6
Israel (ISRL/ILS) .................... 5.6 5.6
Korea (KOR/KRW) ...................... 8.1 8.1
Mexico (MEX/MXN) ..................... 4.4 4.4
Panama (PAN/PND) ..................... 1.8 1.8
Portugal (PORT/PTE) .................. 2.7 2.7
Russia (RUS/SUR) ..................... 0.3 0.3
Singapore (SING/SGD) ................. 2.7 2.7
South Africa (SAFR/ZAR) .............. 5.0 5.0
Sri Lanka (S LNKA/LKR) ............... 3.3 3.3
United Kingdom (UK/GBP) .............. 1.9 1.9
United States & Other (US/USD) ....... 12.6 4.5 17.1
Uruguay (URGY/UYP) ................... 3.8 3.8
------ ----- ----- -----
Total ............................... 94.6 0.9 4.5 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $16,558,771.
The accompanying notes are an integral part of the financial statements.
F27
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Electrical & Gas Utilities (25.9%)
Edison S.p.A. ............................................. ITLY 18,000 $ 108,682 2.8
Compania Boliviana de Energia Electrica{\/} ............... BOL 2,500 98,125 2.7
EVN Energie-Versorgung Niederoesterreich AG ............... ASTRI 700 96,841 2.6
Empresa Nacional de Electridad S.A. - ADR{\/} ............. SPN 1,400 87,675 2.4
Enron Global Power & Pipelines L.L.C. ..................... US 3,600 87,300 2.4
Companhia Energetica de Minas Gerais (Cemig) - ADR{\/} .... BRZL 3,289 87,159 2.4
Capex S.A. ................................................ ARG 10,500 85,084 2.3
Korea Electric Power Corp. - ADR{\/} ...................... KOR 3,500 84,875 2.3
BSES Ltd. - GDR-/- {\/} ................................... IND 3,200 60,000 1.6
Consolidated Electric Power Asia Ltd. ..................... HK 30,000 49,609 1.3
MetroGas S.A. - ADR{\/} ................................... ARG 3,600 37,800 1.0
AES China Generating Co., Ltd. "A"-/- ..................... US 3,000 31,688 0.9
Hafslund ASA "A" .......................................... NOR 3,400 24,369 0.7
Chilgener S.A. - ADR{\/} .................................. CHLE 700 16,800 0.5
------------
956,007
------------
Telephone Networks (8.8%)
Telefonica de Espana - ADR{\/} ............................ SPN 2,100 115,762 3.0
SPT Telecom-/- ............................................ CZCH 800 97,788 2.6
Philippine Long Distance Telephone Co. - ADR{\/} .......... PHIL 1,200 69,750 1.9
Hellenic Telecommunications - 144A{.} ..................... GREC 2,300 38,153 1.0
Pakistan Telecommunications Co., Ltd. - GDR-/- {\/} ....... PAK 100 11,600 0.3
------------
333,053
------------
Transportation - Road & Rail (6.9%)
ABC Rail Products Corp.-/- ................................ US 4,700 101,638 2.7
Tranz Rail Holdings Ltd. - ADR-/- {\/} .................... NZ 5,800 80,475 2.2
Canadian National Railway Co.{\/} ......................... CAN 4,000 73,500 2.0
PST Vans, Inc.-/- ......................................... US 300 1,275 --
------------
256,888
------------
Cement (6.0%)
La Cementos Nacional, C.A. 144A - GDR{.} -/- {\/} ......... ECDR 550 97,350 2.6
Giant Cement Holding, Inc.-/- ............................. US 6,200 78,275 2.1
Siam Cement Co., Ltd. - Foreign ........................... THAI 800 39,275 1.1
HI Cement Corp.-/- ........................................ PHIL 15,000 5,679 0.2
------------
220,579
------------
Telecom Technology (5.3%)
DSP Communications, Inc.-/- ............................... US 3,900 200,363 5.3
------------
Telecom Equipment (4.6%)
Tadiran Telecommunications Ltd.-/- {\/} ................... ISRL 4,600 73,600 2.0
Allgon AB "B" Free ........................................ SWDN 4,200 70,117 1.9
DSC Communications Corp.-/- ............................... US 800 24,100 0.7
------------
167,817
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F28
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Multi-Industry (4.2%)
Mannesmann AG ............................................. GER 300 $ 103,802 2.7
E.R.G. Ltd. ............................................... AUSL 42,117 55,260 1.5
------------
159,062
------------
Metals - Steel (4.1%)
Northwest Pipe Co.-/- ..................................... US 4,800 81,600 2.2
Hylsamex, S.A. de C.V. 144A - ADR{.} {\/} ................. MEX 2,600 65,650 1.8
Grupo Simec, S.A. de C.V. - ADR-/- {\/} ................... MEX 500 2,500 0.1
------------
149,750
------------
Machinery & Engineering (2.9%)
Caterpillar, Inc. ......................................... US 1,200 81,300 2.2
KCI Konecranes International-/- ........................... FIN 1,050 25,857 0.7
------------
107,157
------------
Electrical Plant/Equipment (2.6%)
ABB AB "B" ................................................ SWDN 900 95,318 2.6
------------
Wireless Communications (1.9%)
DDI Corp. ................................................. JPN 8 69,985 1.9
------------
Metals - Non-Ferrous (1.8%)
RMI Titanium Co.-/- ....................................... US 2,800 65,800 1.8
------------
Construction (1.6%)
United Engineers Ltd. ..................................... MAL 8,000 55,493 1.5
C & P Homes, Inc. ......................................... PHIL 5,300 4,611 0.1
------------
60,104
------------
Telephone - Long Distance (1.5%)
PT Indonesia Satellite (Indosat) - ADR{\/} ................ INDO 1,600 53,600 1.5
------------
Consumer Electronics (0.6%)
Three-Five Systems, Inc.-/- ............................... US 2,000 20,250 0.6
------------
Building Materials & Components (0.4%)
PT Bakrie and Brothers .................................... INDO 10,000 14,181 0.4
------------
Transportation - Shipping (0.2%)
International Container Terminal Services (ICTS)-/- ....... PHIL 9,025 6,126 0.2
------------ -----
TOTAL EQUITY INVESTMENTS (cost $2,652,252) .................. 2,936,040 79.3
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F29
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
SHORT-TERM INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Commercial Paper - Discounted (13.5%)
United States (13.5%)
Federal Farm Credit Bank 7/12/96 (cost $499,196)-/- ..... USD 500,000 $ 499,196 13.5
------------ -----
<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 $520,000, Federal Home Loan Bank, 6% due
10/30/97 (market value of collateral is $524,169,
including accrued interest). (cost $510,221) ............. 510,221 13.8
------------ -----
TOTAL INVESTMENTS (cost $3,661,669)* ........................ 3,945,457 106.6
Other Assets and Liabilities ................................ (243,361) (6.6)
------------ -----
NET ASSETS .................................................. $ 3,702,096 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- 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 $3,664,105 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 348,556
Unrealized depreciation: (67,204)
-------------
Net unrealized appreciation: $ 281,352
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F30
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
The Fund's Portfolio of Investments at June 30, 1996, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
{D}
---------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS) .................. 3.3 3.3
Australia (AUSL/AUD) ................. 1.5 1.5
Austria (ASTRI/ATS) .................. 2.6 2.6
Bolivia (BOL/BOL) .................... 2.7 2.7
Brazil (BRZL/BRL) .................... 2.4 2.4
Canada (CAN/CAD) ..................... 2.0 2.0
Chile (CHLE/CLP) ..................... 0.5 0.5
Czech Republic (CZCH/CSK) ............ 2.6 2.6
Ecuador (ECDR/ECS) ................... 2.6 2.6
Finland (FIN/FIM) .................... 0.7 0.7
Germany (GER/DEM) .................... 2.7 2.7
Greece (GREC/GRD) .................... 1.0 1.0
Hong Kong (HK/HKD) ................... 1.3 1.3
India (IND/INR) ...................... 1.6 1.6
Indonesia (INDO/IDR) ................. 1.9 1.9
Israel (ISRL/ILS) .................... 2.0 2.0
Italy (ITLY/ITL) ..................... 2.8 2.8
Japan (JPN/JPY) ...................... 1.9 1.9
Korea (KOR/KRW) ...................... 2.3 2.3
Malaysia (MAL/MYR) ................... 1.5 1.5
Mexico (MEX/MXN) ..................... 1.8 1.8
New Zealand (NZ/NZD) ................. 2.2 2.2
Norway (NOR/NOK) ..................... 0.7 0.7
Pakistan (PAK/PKR) ................... 0.3 0.3
Philippines (PHIL/PHP) ............... 2.4 2.4
Spain (SPN/ESP) ...................... 5.4 5.4
Sweden (SWDN/SEK) .................... 4.5 4.5
Thailand (THAI/THB) .................. 1.1 1.1
United States & Other (US/USD) ....... 20.9 20.8 41.7
------ ----- -----
Total ............................... 79.2 20.8 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $3,702,096.
The accompanying notes are an integral part of the financial statements.
F31
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy Equipment & Services (27.5%)
Veritas Energy Services, Inc.-/- .......................... CAN 17,600 $ 228,897 3.5
Landmark Graphics Corp.-/- ................................ US 11,500 221,375 3.4
Trico Marine Services, Inc.-/- ............................ US 8,700 193,575 2.9
Reading & Bates Corp.-/- .................................. US 8,400 185,850 2.9
Forasol-Foramer N.V.-/- {\/} .............................. FR 14,600 184,325 2.8
Global Marine, Inc.-/- .................................... US 12,700 176,213 2.7
3-D Geophysical, Inc.-/- .................................. US 16,300 175,225 2.7
Input/Output, Inc.-/- ..................................... US 4,900 158,638 2.4
Tuboscope Vetco International Corp.-/- .................... US 12,300 136,838 2.1
Seacor Holdings, Inc.-/- .................................. US 3,000 134,250 2.1
------------
1,795,186
------------
Gold (17.0%)
Bre-X Minerals Ltd.-/- .................................... CAN 13,500 225,528 3.5
Greenstone Resources Ltd.-/- .............................. CAN 17,300 202,814 3.1
Oryx Gold Holdings Ltd.-/- ................................ SAFR 60,000 133,087 2.0
Lihir Gold Ltd.-/- ........................................ AUSL 71,900 115,239 1.8
Triton Mining Corp.-/- .................................... CAN 18,500 88,108 1.3
Getchell Gold Corp.-/- .................................... US 1,800 59,400 0.9
Asquith Resources, Inc.-/- ................................ CAN 35,900 52,608 0.8
Gold Reserve Corp.-/- ..................................... CAN 6,100 46,930 0.7
Dayton Mining Corp.-/- .................................... CAN 7,700 46,263 0.7
Indochina Goldfields-/- ................................... CAN 5,200 44,768 0.7
HJ Joel Mining Co., Ltd.-/- ............................... SAFR 38,900 35,053 0.5
Eldorado Gold Corp., Ltd.-/- .............................. CAN 5,500 30,224 0.5
Yamana Resources, Inc.-/- ................................. CAN 13,700 30,114 0.5
------------
1,110,136
------------
Metals - Non-Ferrous (15.8%)
PT Tambang Timah: ......................................... INDO -- -- 3.0
144A GDR{.} {\/} ........................................ -- 9,600 174,240 --
Reg. S GDR-/- {c} {\/} .................................. -- 1,000 18,150 --
UCAR International, Inc.-/- ............................... US 4,500 187,313 2.9
SGL Carbon AG ............................................. GER 1,500 175,635 2.7
Industrias Penoles S.A. "CP" .............................. MEX 33,000 151,069 2.3
Diamond Fields Resources, Inc.-/- ......................... CAN 4,800 135,404 2.0
International Curator Resources Ltd.-/- ................... CAN 12,000 109,027 1.7
Cameco Corp. - Installment Receipts ....................... CAN 3,600 75,967 1.1
Cartaway Resources Corp.-/- ............................... CAN 6,700 5,400 0.1
------------
1,032,205
------------
Oil (13.7%)
Benton Oil & Gas Co.-/- ................................... US 11,700 257,400 3.9
Ente Nazionale Idrocarburi (ENI) S.p.A. - ADR{\/} ......... ITLY 4,000 200,000 3.1
Anadarko Petroleum Corp. .................................. US 2,900 168,200 2.6
Abacan Resource Corp.-/- .................................. CAN 36,000 150,352 2.3
Basic Petroleum International Ltd.-/- ..................... US 4,400 117,700 1.8
</TABLE>
The accompanying notes are an integral part of the financial statements.
F32
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Oil (Continued)
British Petroleum Co., PLC - ADR{\/} ...................... UK 6 $ 641 --
------------
894,293
------------
Chemicals (5.8%)
Cytec Industries, Inc.-/- ................................. US 2,300 196,650 3.0
Monsanto Co. .............................................. US 5,700 185,250 2.8
------------
381,900
------------
Gas Production & Distribution (3.6%)
Rutherford-Moran Oil Corp.-/- ............................. US 8,300 202,313 3.1
Canadian 88 Energy Corp.-/- ............................... CAN 13,600 31,987 0.5
------------
234,300
------------
Miscellaneous (2.8%)
Saskatchewan Wheat Pool-/- ................................ CAN 17,000 184,972 2.8
------------
Machinery & Engineering (2.7%)
Harnischfeger Industries, Inc. ............................ US 5,200 172,900 2.7
------------
Misc. Materials & Commodities (2.0%)
Aber Resources Ltd.-/- .................................... CAN 9,900 128,755 2.0
------------ -----
TOTAL EQUITY INVESTMENTS (cost $5,468,681) .................. 5,934,647 90.9
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Triton Mining Corp. Special Warrants, expire 6/6/97(.)
-/- ...................................................... CAN 5,000 23,813 0.3
GOLD
Yamana Resources, Inc. Warrants, expire 12/31/98-/- ....... CAN 6,850 4,768 0.1
GOLD
------------ -----
TOTAL WARRANTS (cost $36,072) ............................... 28,581 0.4
------------ -----
<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 $680,000 Federal Home Loan Bank, 6% due
10/30/97 (market value of collateral is $685,451,
including accrued interest). (cost $670,290) ............. 670,290 10.3
------------ -----
TOTAL INVESTMENTS (cost $6,175,043) * ....................... 6,633,518 101.6
Other Assets and Liabilities ................................ (104,130) (1.6)
------------ -----
NET ASSETS .................................................. $ 6,529,388 100.0
------------ -----
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F33
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
- --------------
-/- 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.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
(.) Restricted securities. At June 30, 1996, the Fund owned the
following restricted security constituting 0.3% of net assets which
may not be publicly sold without registration under the Securities
Act of 1933 (Note 1). Additional information on the restricted
security is as follows:
<TABLE>
<CAPTION>
FAIR
VALUE
PER
NUMBER SHARE
OF ACQUISITION AT
DESCRIPTION ACQUISITION DATE WARRANTS COST 6/30/96
----------------------------------------------- ----------------- ------ ----------- ------
<S> <C> <C> <C> <C>
Triton Mining Corp. Special Warrants, expire
6/6/97........................................ 06/05/96 5,000 $ 30,579 $4.76
</TABLE>
* For Federal income tax purposes, cost is $6,176,105 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 692,219
Unrealized depreciation: (234,806)
-------------
Net unrealized appreciation: $ 457,413
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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) ................. 1.8 1.8
Canada (CAN/CAD) ..................... 27.8 0.4 28.2
France (FR/FRF) ...................... 2.8 2.8
Germany (GER/DEM) .................... 2.7 2.7
Indonesia (INDO/IDR) ................. 3.0 3.0
Italy (ITLY/ITL) ..................... 3.1 3.1
Mexico (MEX/MXN) ..................... 2.3 2.3
South Africa (SAFR/ZAR) .............. 2.5 2.5
United States & Other (US/USD) ....... 44.9 8.7 53.6
------ ----- ----- -----
Total ............................... 90.9 0.4 8.7 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $6,529,388.
The accompanying notes are an integral part of the financial statements.
F34
<PAGE>
GT GLOBAL VARIABLE AMERICA 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 (21.9%)
TJX Companies, Inc. ....................................... US 34,500 $ 1,164,375 3.0
RETAILERS-APPAREL
Continental Airlines, Inc. "B"-/- ......................... US 15,000 926,250 2.4
TRANSPORTATION - AIRLINES
WorldCom, Inc.-/- ......................................... US 15,600 863,850 2.2
TELEPHONE - LONG DISTANCE
Vons Cos., Inc.-/- ........................................ US 21,700 811,038 2.1
RETAILERS-FOOD
HFS, Inc. ................................................. US 11,400 798,000 2.1
LEISURE & TOURISM
Safeway, Inc.-/- .......................................... US 23,800 785,400 2.0
RETAILERS-FOOD
Ross Stores, Inc. ......................................... US 22,200 771,450 2.0
RETAILERS-APPAREL
Borders Group, Inc.-/- .................................... US 23,600 761,100 2.0
RETAILERS-OTHER
Trans World Airlines (TWA)-/- ............................. US 35,600 507,300 1.3
TRANSPORTATION - AIRLINES
Claire's Stores, Inc. ..................................... US 13,500 372,938 1.0
RETAILERS-APPAREL
Sturm, Ruger & Co., Inc. .................................. US 7,700 358,050 0.9
LEISURE & TOURISM
Rio Hotel and Casino, Inc.-/- ............................. US 20,200 310,575 0.8
LEISURE & TOURISM
A.H. Belo Corp. "A" ....................................... US 1,500 55,875 0.1
BROADCASTING & PUBLISHING
------------
8,486,201
------------
Consumer Non-Durables (19.0%)
Philip Morris Cos., Inc. .................................. US 19,300 2,007,197 5.2
FOOD
Nike, Inc. "B" ............................................ US 11,400 1,171,350 3.0
TEXTILES & APPAREL
Fila Holding S.p.A. - ADR{\/} ............................. ITLY 11,000 948,750 2.5
TEXTILES & APPAREL
Callaway Golf Co. ......................................... US 26,900 894,425 2.3
RECREATION
Liz Claiborne, Inc. ....................................... US 21,100 730,588 1.9
TEXTILES & APPAREL
Harley-Davidson, Inc. ..................................... US 17,600 723,800 1.9
OTHER CONSUMER GOODS
Foodmaker, Inc.-/- ........................................ US 61,000 526,125 1.4
FOOD
Nautica Enterprises, Inc.-/- .............................. US 6,300 181,125 0.5
TEXTILES & APPAREL
Oakley, Inc.-/- {\/} ...................................... US 2,500 113,125 0.3
OTHER CONSUMER GOODS
------------
7,296,485
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F35
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (14.8%)
Landmark Graphics Corp.-/- ................................ US 62,200 $ 1,197,350 3.1
ENERGY EQUIPMENT & SERVICES
Coastal Corp. ............................................. US 19,900 830,825 2.2
GAS PRODUCTION & DISTRIBUTION
Baker Hughes, Inc. ........................................ US 24,600 808,725 2.1
ENERGY EQUIPMENT & SERVICES
Reading & Bates Corp.-/- .................................. US 36,000 796,500 2.1
ENERGY EQUIPMENT & SERVICES
ENSCO International, Inc.-/- .............................. US 23,300 757,250 2.0
ENERGY EQUIPMENT & SERVICES
Rowan Cos., Inc.-/- ....................................... US 33,800 498,550 1.3
ENERGY EQUIPMENT & SERVICES
Marine Drilling Co., Inc.-/- .............................. US 39,500 399,938 1.0
ENERGY EQUIPMENT & SERVICES
Global Marine, Inc.-/- .................................... US 27,600 382,950 1.0
ENERGY EQUIPMENT & SERVICES
------------
5,672,088
------------
Technology (10.4%)
Sun Microsystems, Inc.-/- ................................. US 19,000 1,118,625 2.9
COMPUTERS & PERIPHERALS
Adaptec, Inc.-/- .......................................... US 17,000 805,375 2.1
COMPUTERS & PERIPHERALS
Intel Corporation ......................................... US 10,600 778,438 2.0
SEMICONDUCTORS
MEMC Electronic Materials, Inc.-/- ........................ US 19,100 740,125 1.9
SEMICONDUCTORS
Cognos, Inc.-/- {\/} ...................................... CAN 21,700 499,100 1.3
SOFTWARE
FTP Software, Inc.-/- ..................................... US 7,800 64,350 0.2
SOFTWARE
------------
4,006,013
------------
Capital Goods (4.1%)
Stratacom, Inc.-/- ........................................ US 14,300 804,375 2.1
TELECOM EQUIPMENT
UCAR International, Inc.-/- ............................... US 18,300 761,738 2.0
ELECTRICAL PLANT/EQUIPMENT
------------
1,566,113
------------
Health Care (3.5%)
Waters Corp.-/- ........................................... US 30,400 1,003,200 2.6
MEDICAL TECHNOLOGY & SUPPLIES
Orthologic Corp.-/- ....................................... US 24,100 307,275 0.8
MEDICAL TECHNOLOGY & SUPPLIES
Abaxis, Inc.-/- ........................................... US 6,400 29,600 0.1
MEDICAL TECHNOLOGY & SUPPLIES
------------
1,340,075
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F36
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (2.0%)
Leader Financial Corp. .................................... US 13,200 $ 590,700 1.5
BANKS-REGIONAL
Equity Inns, Inc. ......................................... US 16,600 190,900 0.5
REAL ESTATE INVESTMENT TRUST
------------
781,600
------------
Materials/Basic Industry (2.0%)
Cytec Industries, Inc.-/- ................................. US 9,000 769,500 2.0
------------
CHEMICALS
Consumer Durables (0.7%)
Syratech Corp.-/- ......................................... US 11,600 261,000 0.7
APPLIANCES & HOUSEHOLD
------------ -----
TOTAL EQUITY INVESTMENTS (cost $30,077,299) ................. 30,179,075 78.4
------------ -----
<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 $9,980,000 Federal Home Loan Bank, 6.05%
due 10/17/97 (market value of collateral is $10,090,178,
including accrued interest). (cost $9,887,283) ........... 9,887,283 25.7
------------ -----
TOTAL INVESTMENTS (cost $39,964,582) * ...................... 40,066,358 104.1
Other Assets and Liabilities ................................ (1,576,237) (4.1)
------------ -----
NET ASSETS .................................................. $ 38,490,121 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $40,164,461 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 983,318
Unrealized depreciation: (1,081,421)
-------------
Net unrealized depreciation: $ (98,103)
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F37
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (32.8%)
HSBC Holdings PLC ......................................... HK 80,000 $ 1,209,224 4.0
BANKS-MONEY CENTER
Cheung Kong (Holdings) Ltd. ............................... HK 160,000 1,152,380 3.8
REAL ESTATE
New World Development Co., Ltd. ........................... HK 246,000 1,140,934 3.7
REAL ESTATE
Megaworld Properties & Holdings, Inc.-/- .................. PHIL 1,000,000 898,662 2.9
REAL ESTATE
PT Lippo Life Insurance - Foreign ......................... INDO 600,000 773,528 2.5
INSURANCE-LIFE
Henderson Land Development Co., Ltd. ...................... HK 100,000 749,306 2.5
REAL ESTATE
Straits Steamship Land Ltd. ............................... SING 220,000 736,193 2.4
REAL ESTATE
Kwong Yik Bank ............................................ MAL 265,000 595,028 2.0
BANKS-REGIONAL
Ayala Land, Inc. "B" ...................................... PHIL 312,500 561,663 1.8
REAL ESTATE
United Overseas Bank Ltd. - Foreign ....................... SING 46,000 440,269 1.4
BANKS-MONEY CENTER
Bangkok Bank Co., Ltd. - Foreign .......................... THAI 30,000 406,619 1.3
BANKS-MONEY CENTER
Singapore Land Ltd. ....................................... SING 50,000 338,532 1.1
REAL ESTATE
Gadek Capital Bhd.-/- ..................................... MAL 100,000 316,760 1.0
OTHER FINANCIAL
DCB Holdings Bhd. ......................................... MAL 75,000 257,117 0.8
BANKS-REGIONAL
Bank of East Asia, Ltd. ................................... HK 45,793 167,424 0.6
BANKS-MONEY CENTER
Hang Seng Bank ............................................ HK 16,030 161,532 0.5
BANKS-MONEY CENTER
Siam City Bank Ltd. - Foreign ............................. THAI 140,000 150,315 0.5
BANKS-REGIONAL
------------
10,055,486
------------
Services (14.4%)
Guangnan Holdings ......................................... HK 2,300,000 1,374,265 4.5
WHOLESALE & INTERNATIONAL TRADE
Waterfront Philippines, Inc.-/- ........................... PHIL 3,248,000 844,604 2.8
LEISURE & TOURISM
Goldlion Holdings Ltd. .................................... HK 630,000 541,244 1.8
RETAILERS-APPAREL
China Hong Kong Photo Products Holdings, Ltd. ............. HK 750,000 428,751 1.4
WHOLESALE & INTERNATIONAL TRADE
Total Access Communication Public Co., Ltd.{\/} ........... THAI 50,000 425,000 1.4
WIRELESS COMMUNICATIONS
International Container Terminal Services (ICTS)-/- ....... PHIL 437,500 296,965 1.0
TRANSPORTATION - SHIPPING
</TABLE>
The accompanying notes are an integral part of the financial statements.
F38
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
News Corp., Ltd. .......................................... AUSL 40,358 $ 228,615 0.8
BROADCASTING & PUBLISHING
International Engineering PLC - Foreign ................... THAI 24,000 133,333 0.4
WIRELESS COMMUNICATIONS
Philippine Long Distance Telephone Co. - ADR{\/} .......... PHIL 1,500 87,188 0.3
TELEPHONE - LONG DISTANCE
------------
4,359,965
------------
Consumer Durables (13.8%)
Edaran Otomobil Nasional Bhd. ............................. MAL 250,000 2,395,755 7.8
AUTOMOBILES
Gadek (Malaysia) Bhd. ..................................... MAL 300,000 1,768,244 5.8
AUTOMOBILES
Samsung Electronics Co.: .................................. KOR -- -- 0.2
CONSUMER ELECTRONICS
GDR 1/2 Non-voting-/- {\/} .............................. -- 2,527 45,486 --
144A GDR{.} -/- {\/} .................................... -- 258 13,158 --
Bonus - GDR 1/2 Voting-/- {\/} .......................... -- 77 3,003 --
------------
4,225,646
------------
Multi Industry/Miscellaneous (11.8%)
Swire Pacific Ltd. "A" .................................... HK 200,000 1,711,776 5.6
MULTI-INDUSTRY
Citic Pacific Ltd. ........................................ HK 200,000 808,733 2.7
CONGLOMERATE
Hutchison Whampoa ......................................... HK 125,000 786,448 2.6
CONGLOMERATE
Korea Fund, Inc.{\/} ...................................... KOR 12,672 267,696 0.9
COUNTRY FUNDS
------------
3,574,653
------------
Materials/Basic Industry (6.9%)
PT Semen Gresik - Foreign ................................. INDO 214,000 623,055 2.0
CEMENT
Western Mining Corporation Holdings Ltd. .................. AUSL 72,000 514,771 1.7
METALS - NON-FERROUS
Jaya Tiasa Holdings Bhd. .................................. MAL 75,000 439,054 1.4
BUILDING MATERIALS & COMPONENTS
Broken Hill Proprietary Co., Ltd. ......................... AUSL 21,164 292,152 1.0
MISC. MATERIALS & COMMODITIES
Siam Cement Co., Ltd. - Foreign ........................... THAI 5,000 245,469 0.8
CEMENT
------------
2,114,501
------------
Energy (1.4%)
Oil Search Ltd.-/- ........................................ AUSL 420,000 419,076 1.4
------------
OIL
Consumer Non-Durables (1.3%)
Chaifa Holdings Ltd. ...................................... HK 1,500,000 402,106 1.3
------------
TEXTILES & APPAREL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F39
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Capital Goods (1.2%)
E.R.G. Ltd. ............................................... AUSL 225,148 $ 295,409 1.0
ELECTRICAL PLANT/EQUIPMENT
Empire East Land Holdings-/- .............................. PHIL 100,000 61,185 0.2
CONSTRUCTION
United Engineers Ltd.: .................................... MAL -- -- --
CONSTRUCTION
Convertible Unsecured Loan Stock, 4% expires 5/22/99 .... -- 21,000 12,630 --
Common .................................................. -- 300 2,081 --
------------
371,305
------------ -----
TOTAL EQUITY INVESTMENTS (cost $21,235,059) ................. 25,522,738 83.6
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Gadek (Malaysia) Bhd. Warrants, expire 12/31/96-/- ........ MAL 150,000 315,758 1.0
MISC. MATERIALS & COMMODITIES
Waterfront Philippines, Inc. Warrants, expire
4/18/99-/- ............................................... PHIL 2,000,000 302,103 1.0
LEISURE & TOURISM
Petronas Gas Bhd. Warrants, expire 8/17/00-/- ............. MAL 35,000 77,185 0.3
GAS PRODUCTION & DISTRIBUTION
Straits Steamship Land Ltd. Warrants, expire
12/12/00-/- .............................................. SING 55,000 69,018 0.2
CONGLOMERATE
Guangnan Holdings Warrants, expire 12/31/96-/- ............ HK 230,000 65,370 0.2
WHOLESALE & INTERNATIONAL TRADE
Development & Commercial Bank Warrants, expire
12/28/99-/- .............................................. MAL 37,500 49,318 0.2
BANKS-MONEY CENTER
------------ -----
TOTAL WARRANTS (cost $332,149) .............................. 878,752 2.9
------------ -----
<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 $3,930,000 Federal Home Loan Mortgage
Corp., 5.99% due 3/06/01 (market value of collateral is
$3,843,700, including accrued interest). (cost
$3,766,631) .............................................. 3,766,631 12.3
------------ -----
TOTAL INVESTMENTS (cost $25,333,839) * ...................... 30,168,121 98.8
Other Assets and Liabilities ................................ 357,407 1.2
------------ -----
NET ASSETS .................................................. $ 30,525,528 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- 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 $25,333,839 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 5,273,847
Unrealized depreciation: (439,565)
-------------
Net unrealized appreciation: $ 4,834,282
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F40
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC 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) ................. 5.9 5.9
Hong Kong (HK/HKD) ................... 35.0 0.2 35.2
Indonesia (INDO/IDR) ................. 4.5 4.5
Korea (KOR/KRW) ...................... 1.1 1.1
Malaysia (MAL/MYR) ................... 18.8 1.5 20.3
Philippines (PHIL/PHP) ............... 9.0 1.0 10.0
Singapore (SING/SGD) ................. 4.9 0.2 5.1
Thailand (THAI/THB) .................. 4.4 4.4
United States & Other (US/USD) ....... 13.5 13.5
------ ----- ----- -----
Total ............................... 83.6 2.9 13.5 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $30,525,528.
The accompanying notes are an integral part of the financial statements.
F41
<PAGE>
GT GLOBAL VARIABLE EUROPE 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 (25.6%)
Assystem-/- ............................................... FR 5,400 $ 630,350 3.0
BUSINESS & PUBLIC SERVICES
Ecco S.A. ................................................. FR 2,193 552,517 2.6
CONSUMER SERVICES
Telecom Italia Mobile S.p.A. .............................. ITLY 221,000 495,698 2.3
WIRELESS COMMUNICATIONS
Wolters Kluwer CVA ........................................ NETH 4,111 467,521 2.2
BROADCASTING & PUBLISHING
Kobenhavns Lufthavne AS ................................... DEN 4,100 405,975 1.9
TRANSPORTATION - AIRLINES
Reuters Holdings PLC ...................................... UK 33,000 399,115 1.9
BROADCASTING & PUBLISHING
EMAP PLC .................................................. UK 36,200 397,913 1.9
BROADCASTING & PUBLISHING
Comptoirs Modernes ........................................ FR 838 378,567 1.8
RETAILERS-FOOD
British Airport Authority PLC ............................. UK 40,000 289,707 1.4
TRANSPORTATION - AIRLINES
Sodexho S.A. .............................................. FR 585 259,949 1.2
RESTAURANTS
Kuoni Reisen Holdings "B" - Registered .................... SWTZ 90 206,574 1.0
LEISURE & TOURISM
Compass Group PLC ......................................... UK 20,800 189,076 0.9
RESTAURANTS
Finanziaria Autogrill S.p.A.-/- ........................... ITLY 156,400 181,428 0.9
RESTAURANTS
NCL Holdings ASA-/- ....................................... NOR 78,100 178,162 0.8
TRANSPORTATION - SHIPPING
Burton Group PLC .......................................... UK 70,800 170,377 0.8
RETAILERS-APPAREL
Falck AS .................................................. DEN 400 86,726 0.4
CONSUMER SERVICES
Sol Melia S.A.-/- ......................................... SPN 3,500 73,851 0.3
LEISURE & TOURISM
Apcoa Parking AG .......................................... GER 730 65,787 0.3
CONSUMER SERVICES
------------
5,429,293
------------
Health Care (16.6%)
Rhoen-Klinikum AG Non-voting Preferred-/- ................. GER 6,230 719,224 3.4
HEALTH CARE SERVICES
Genset - ADR-/- {\/} ...................................... FR 31,300 582,963 2.7
BIOTECHNOLOGY
Gehe AG ................................................... GER 730 490,764 2.3
PHARMACEUTICALS
M.L. Laboratories PLC-/- .................................. UK 64,600 424,248 2.0
PHARMACEUTICALS
Sanofi S.A. ............................................... FR 5,500 412,821 1.9
PHARMACEUTICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F42
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Health Care (Continued)
OY Tamro AB ............................................... FIN 56,400 $ 338,695 1.6
PHARMACEUTICALS
SmithKline Beecham PLC "A" ................................ UK 31,515 336,874 1.6
PHARMACEUTICALS
Biotest AG ................................................ GER 560 178,661 0.8
BIOTECHNOLOGY
Nearmedic Vienna Ltd.-/- {\/} ............................. ASTRI 18 70,200 0.3
PHARMACEUTICALS
------------
3,554,450
------------
Consumer Non-Durables (13.3%)
Gucci Group - NY Registered Shares-/- {\/} ................ ITLY 13,600 877,201 4.1
TEXTILES & APPAREL
Adidas AG-/- .............................................. GER 6,715 564,958 2.6
TEXTILES & APPAREL
Industrie Natuzzi S.p.A. - ADR-/- {\/} .................... ITLY 9,850 504,813 2.4
HOUSEHOLD PRODUCTS
Polygram .................................................. NETH 7,000 413,842 1.9
RECREATION
De Rigo S.p.A. - ADR-/- {\/} .............................. ITLY 18,000 411,750 1.9
TEXTILES & APPAREL
Luxottica Group S.p.A. - ADR{\/} .......................... ITLY 1,200 88,050 0.4
OTHER CONSUMER GOODS
------------
2,860,614
------------
Finance (9.3%)
Security Capital US Realty-/- {\/} ........................ LUX 40,793 465,040 2.2
REAL ESTATE
3I Group PLC .............................................. UK 63,000 431,346 2.0
OTHER FINANCIAL
M & G Group PLC ........................................... UK 17,000 303,524 1.4
INVESTMENT MANAGEMENT
Compagnie Bancaire S.A. ................................... FR 2,500 282,101 1.3
OTHER FINANCIAL
LLoyds TSB Group PLC ...................................... UK 40,560 198,361 0.9
BANKS-REGIONAL
Invesco PLC ............................................... UK 47,700 171,442 0.8
INVESTMENT MANAGEMENT
UNI Storebrand AS "A"-/- .................................. NOR 17,700 79,663 0.4
INSURANCE - MULTI-LINE
Cetelem Group ............................................. FR 322 72,481 0.3
CONSUMER FINANCE
------------
2,003,958
------------
Materials/Basic Industry (7.9%)
Hoechst AG ................................................ GER 16,000 543,086 2.5
CHEMICALS
Bayer AG .................................................. GER 13,800 487,929 2.3
CHEMICALS
Saes Getters - di Risp .................................... ITLY 23,680 479,477 2.2
CHEMICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F43
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
SGL Carbon AG ............................................. GER 1,700 $ 199,053 0.9
METALS - NON-FERROUS
------------
1,709,545
------------
Consumer Durables (6.4%)
Hoganas AB "B" ............................................ SWDN 15,200 532,777 2.5
AUTO PARTS
Beers N.V. ................................................ NETH 2,100 424,927 2.0
AUTOMOBILES
Garphyttan Industrier AB .................................. SWDN 26,600 409,917 1.9
AUTO PARTS
------------
1,367,621
------------
Capital Goods (6.0%)
Pricer AB-/- .............................................. SWDN 23,057 484,208 2.3
INDUSTRIAL COMPONENTS
Altran Technologies S.A. .................................. FR 1,083 335,646 1.6
MACHINERY & ENGINEERING
Sidel S.A. ................................................ FR 1,100 280,136 1.3
MACHINERY & ENGINEERING
Premier Farnell PLC ....................................... UK 15,526 163,191 0.8
INDUSTRIAL COMPONENTS
------------
1,263,181
------------
Technology (3.9%)
Group Axime-/- ............................................ FR 4,440 621,946 2.9
COMPUTERS & PERIPHERALS
Austria Mikro Systeme International AG .................... ASTRI 1,632 152,552 0.7
SEMICONDUCTORS
PixTech, Inc.-/- .......................................... US 6,730 45,428 0.2
COMPUTERS & PERIPHERALS
Dassault Systemes S.A.-/- ................................. FR 970 30,421 0.1
COMPUTERS & PERIPHERALS
------------
850,347
------------
Energy (1.2%)
United Utilities PLC ...................................... UK 29,400 247,168 1.2
------------
ENERGY SOURCES
Multi Industry/Miscellaneous (1.1%)
Pliva D.D. - Reg. S GDR-/- {c} {\/} ....................... UK 5,800 230,550 1.1
MISCELLANEOUS
------------ -----
TOTAL EQUITY INVESTMENTS (cost $15,514,581) ................. 19,516,727 91.3
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F44
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
<TABLE>
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Sandoz AG Warrants (Issuer: Barclays de Zoete Wedd), expire
9/26/97-/- ............................................... SWTZ 9,850 $ 267,834 1.3
PHARMACEUTICALS
Parmalat Finanziaria S.p.A. Warrants, expire 11/7/97-/- ... ITLY 660,000 195,284 0.9
FOOD
------------ -----
TOTAL WARRANTS (cost $454,212) .............................. 463,118 2.2
------------ -----
<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 $1,690,000 Federal Home Loan Mortgage
Corp., 5.99% due 3/6/01 (market value of collateral is
$1,652,889, including accrued interest). (cost
$1,615,700) .............................................. 1,615,700 7.5
------------ -----
TOTAL INVESTMENTS (cost $17,584,493) * ...................... 21,595,545 101.0
Other Assets and Liabilities ................................ (218,092) (1.0)
------------ -----
NET ASSETS .................................................. $ 21,377,453 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
* For Federal income tax purposes, cost is $17,584,493 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 4,311,306
Unrealized depreciation: (300,254)
-------------
Net unrealized appreciation: $ 4,011,052
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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>
Austria (ASTRI/ATS) .................. 1.0 1.0
Denmark (DEN/DKK) .................... 2.3 2.3
Finland (FIN/FIM) .................... 1.6 1.6
France (FR/FRF) ...................... 20.7 20.7
Germany (GER/DEM) .................... 15.1 15.1
Italy (ITLY/ITL) ..................... 14.2 0.9 15.1
Luxembourg (LUX/LUF) ................. 2.2 2.2
Netherlands (NETH/NLG) ............... 6.1 6.1
Norway (NOR/NOK) ..................... 1.2 1.2
Spain (SPN/ESP) ...................... 0.3 0.3
Sweden (SWDN/SEK) .................... 6.7 6.7
Switzerland (SWTZ/CHF) ............... 1.0 1.3 2.3
United Kingdom (UK/GBP) .............. 18.7 18.7
United States & Other (US/USD) ....... 0.2 6.5 6.7
------ ----- ----- -----
Total ............................... 91.3 2.2 6.5 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $21,377,453.
The accompanying notes are an integral part of the financial statements.
F45
<PAGE>
GT GLOBAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET % OF NET
SHORT-TERM INVESTMENTS YIELD DATE AMOUNT VALUE ASSETS
- ----------------------------------------------------------------- --------- --------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Commercial Paper - Discounted (66.6%)
Coca Cola Co. ................................................. 5.28% 08-Jul-96 600,000 $ 599,388 5.9
Shell Oil Co. ................................................. 5.32% 12-Jul-96 600,000 599,034 5.9
E.I. DuPont de Nemours & Co. .................................. 5.31% 19-Jul-96 600,000 598,419 5.9
Motorola Credit Corp. ......................................... 5.36% 23-Jul-96 600,000 598,046 5.8
Schering Corp. ................................................ 5.32% 29-Jul-96 600,000 597,564 5.8
Pitney Bowes Credit Corp. ..................................... 5.42% 17-Sep-96 600,000 593,045 5.8
Metlife Funding, Inc. ......................................... 5.45% 18-Sep-96 600,000 592,929 5.8
Transamerica Finance Corp. .................................... 5.46% 11-Oct-96 600,000 590,973 5.8
ATT Corp. ..................................................... 5.34% 05-Aug-96 550,000 547,182 5.4
Bellsouth Telecom, Inc. ....................................... 5.39% 19-Aug-96 500,000 496,366 4.9
Procter & Gamble Co. .......................................... 5.40% 28-Aug-96 500,000 495,698 4.8
GE Capital Corp. .............................................. 5.46% 02-Oct-96 500,000 493,077 4.8
------------ -----
Total Commercial Paper - Discounted (amortized cost
$6,801,721) .................................................... 6,801,721 66.6
------------ -----
Government & Government Agency Obligations (28.2%)
Federal Farm Credit Bank ...................................... 5.25% 09-Jul-96 750,000 749,135 7.3
Sallie Mae .................................................... 5.53% 19-Jul-96 600,000 599,960 5.9
Federal National Mortgage Association ......................... 5.73% 20-Sep-96 600,000 599,820 5.9
Federal Home Loan Mortgage Corp. .............................. 5.29% 12-Jul-96 600,000 599,034 5.9
Federal Home Loan Bank ........................................ 5.76% 02-Oct-96 330,000 329,921 3.2
------------ -----
Total Government & Government Agency Obligations
(amortized cost $2,877,870) ................................... 2,877,870 28.2
------------ -----
Treasury Bills (9.7%)
United States Treasury Bill ................................... 5.58% 19-Sep-96 1,000,000 988,222 9.7
------------ -----
Total Treasury Bills (amortized cost $988,222) .................. 988,222 9.7
------------ -----
TOTAL SHORT-TERM INVESTMENTS (cost $10,667,813) * ............... 10,667,813 104.5
------------ -----
<CAPTION>
MARKET % OF NET
REPURCHASE AGREEMENT VALUE ASSETS
- ----------------------------------------------------------------- ------------ -------------
<S> <C> <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 $430,000 Federal Home Loan Mortgage Corp., 6.07% due
11/20/98 (market value of collateral is $428,489, including
accrued interest). (cost $417,181) .......................... 417,181 4.1
------------ -----
TOTAL SHORT-TERM INVESTMENTS (cost $11,084,994) * ............... 11,084,994 108.6
Other Assets and Liabilities .................................... (873,575) (8.6)
------------ -----
NET ASSETS ...................................................... $ 10,211,419 100.0
------------ -----
------------ -----
</TABLE>
- --------------
* For Federal income tax purposes, cost is $11,084,994
The accompanying notes are an integral part of the financial statements.
F46
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL 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 (25.2%)
Wolters Kluwer CVA ........................................ NETH 809 $ 92,003 1.9
BROADCASTING & PUBLISHING
Dixons Group PLC .......................................... UK 10,700 87,543 1.8
RETAILERS-OTHER
Fielmann AG Preferred ..................................... GER 1,800 86,436 1.8
RETAILERS-OTHER
Telecom Corporation of New Zealand Ltd. - ADR{\/} ......... NZ 1,100 73,425 1.5
TELEPHONE NETWORKS
British Airport Authority PLC ............................. UK 10,000 72,427 1.5
TRANSPORTATION - AIRLINES
Amway Japan Ltd. .......................................... JPN 1,300 65,428 1.4
RETAILERS-OTHER
DDI Corp. ................................................. JPN 7 61,237 1.3
WIRELESS COMMUNICATIONS
Fast Retailing Co., Ltd. .................................. JPN 1,400 58,803 1.2
RETAILERS-APPAREL
Adia S.A. - Bearer ........................................ SWTZ 230 57,758 1.2
CONSUMER SERVICES
Vodafone Group PLC ........................................ UK 15,000 55,776 1.2
WIRELESS COMMUNICATIONS
IHC Caland N.V. ........................................... NETH 1,000 49,267 1.0
TRANSPORTATION - SHIPPING
Hotel Properties Ltd.-/- .................................. SING 26,000 46,083 1.0
LEISURE & TOURISM
Compass Group PLC ......................................... UK 5,000 45,451 0.9
RESTAURANTS
Portugal Telecom S.A. - ADR{\/} ........................... PORT 1,700 44,625 0.9
TELEPHONE - REGIONAL/LOCAL
International CableTel, Inc.-/- ........................... US 1,500 44,250 0.9
CABLE TELEVISION
Cordiant PLC .............................................. UK 25,000 42,695 0.9
BROADCASTING & PUBLISHING
Nissen Co. ................................................ JPN 2,800 42,277 0.9
RETAILERS-OTHER
Burton Group PLC .......................................... UK 17,350 41,752 0.9
RETAILERS-APPAREL
Telecom Italia S.p.A.: .................................... ITLY -- -- 0.9
TELEPHONE NETWORKS
Mobile Di Risp .......................................... -- 20,000 27,185 --
Di Risp ................................................. -- 7,900 13,581 --
Carrefour Supermarche ..................................... FR 70 39,276 0.8
RETAILERS-FOOD
Kentucky Fried Chicken Japan .............................. JPN 2,000 39,165 0.8
RESTAURANTS
The Warehouse Group Ltd. .................................. NZ 12,840 22,952 0.5
RETAILERS-OTHER
------------
1,209,395
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F47
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Capital Goods (13.0%)
Siebe PLC ................................................. UK 6,994 $ 99,356 2.1
INDUSTRIAL COMPONENTS
Murata Manufacturing Co., Ltd. ............................ JPN 2,000 75,952 1.6
ELECTRICAL PLANT/EQUIPMENT
Nokia AB "K" .............................................. FIN 1,920 71,130 1.5
TELECOM EQUIPMENT
Canon, Inc. ............................................... JPN 3,000 62,592 1.3
OFFICE EQUIPMENT
Telefonaktiebolaget LM Ericsson "B" ....................... SWDN 2,640 57,037 1.2
TELECOM EQUIPMENT
Kurita Water Industries ................................... JPN 2,200 53,752 1.1
ELECTRICAL PLANT/EQUIPMENT
Premier Farnell PLC ....................................... UK 4,500 47,299 1.0
INDUSTRIAL COMPONENTS
Bilfinger & Berger Bau AG ................................. GER 100 42,231 0.9
MACHINERY & ENGINEERING
NBM-Amstelland N.V. ....................................... NETH 2,300 41,144 0.9
CONSTRUCTION
Sidel S.A. ................................................ FR 140 35,654 0.7
MACHINERY & ENGINEERING
United Engineers Ltd. ..................................... MAL 5,000 34,683 0.7
CONSTRUCTION
------------
620,830
------------
Materials/Basic Industry (11.0%)
Western Mining Corporation Holdings Ltd. .................. AUSL 13,000 92,945 1.9
METALS - NON-FERROUS
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 5,000 91,029 1.9
PAPER/PACKAGING
Tostem Corp. .............................................. JPN 3,000 88,671 1.8
BUILDING MATERIALS & COMPONENTS
Broken Hill Proprietary Co., Ltd. ......................... AUSL 5,660 78,132 1.6
MISC. MATERIALS & COMMODITIES
SGL Carbon AG ............................................. GER 400 46,836 1.0
METALS - NON-FERROUS
Hoechst AG ................................................ GER 1,310 44,465 0.9
CHEMICALS
Pohang Iron & Steel Co., Ltd. ............................. KOR 450 36,292 0.8
METALS - STEEL
TPI Polene Co., Ltd. - Foreign ............................ THAI 5,250 28,546 0.6
CHEMICALS
Fletcher Challenge Paper-/- ............................... AUSL 13,000 25,330 0.5
PAPER/PACKAGING
------------
532,246
------------
Finance (10.9%)
Nichiei Co., Ltd. ......................................... JPN 1,000 66,801 1.4
OTHER FINANCIAL
Axa Group ................................................. FR 1,142 62,566 1.3
INSURANCE - MULTI-LINE
PT Bank Internasional Indonesia - Foreign ................. INDO 12,000 59,304 1.2
BANKS-MONEY CENTER
Peregrine Investment Holdings Ltd. ........................ HK 40,000 57,619 1.2
INVESTMENT MANAGEMENT
</TABLE>
The accompanying notes are an integral part of the financial statements.
F48
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL 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 4,000 $ 54,216 1.1
BANKS-MONEY CENTER
Compagnie Bancaire S.A. ................................... FR 470 53,035 1.1
OTHER FINANCIAL
Diamond Lease Co., Ltd. ................................... JPN 3,000 40,904 0.9
OTHER FINANCIAL
Invesco PLC ............................................... UK 10,500 37,739 0.8
INVESTMENT MANAGEMENT
Amoy Properties Ltd. ...................................... HK 31,000 37,446 0.8
REAL ESTATE
Siam City Bank Ltd. - Foreign ............................. THAI 33,000 35,431 0.7
BANKS-REGIONAL
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ..... MEX 10,000 20,792 0.4
BANKS-MONEY CENTER
------------
525,853
------------
Health Care (9.8%)
Sandoz AG - Registered .................................... SWTZ 95 108,721 2.3
PHARMACEUTICALS
Astra AB "B" Free ......................................... SWDN 1,730 75,537 1.6
PHARMACEUTICALS
M.L. Laboratories PLC-/- .................................. UK 8,130 53,392 1.1
PHARMACEUTICALS
Bayer AG .................................................. GER 1,450 51,268 1.1
PHARMACEUTICALS
Siemens AG - New .......................................... GER 900 48,132 1.0
MEDICAL TECHNOLOGY & SUPPLIES
Sanofi S.A. ............................................... FR 640 48,037 1.0
PHARMACEUTICALS
Zeneca Group PLC .......................................... UK 1,900 41,991 0.9
PHARMACEUTICALS
Olympus Optical Co., Ltd. ................................. JPN 4,000 40,264 0.8
MEDICAL TECHNOLOGY & SUPPLIES
SmithKline Beecham PLC "A" ................................ UK 26 278 --
PHARMACEUTICALS
------------
467,620
------------
Consumer Non-Durables (7.5%)
Hoya Corp. ................................................ JPN 3,000 97,182 2.0
OTHER CONSUMER GOODS
Nutricia Vereenigde Bedrijven N.V. ........................ NETH 725 76,752 1.6
FOOD
Gucci Group - NY Registered Shares-/- {\/} ................ ITLY 1,000 64,500 1.3
TEXTILES & APPAREL
Giordano International Ltd. ............................... HK 54,000 52,322 1.1
TEXTILES & APPAREL
PT Hanjaya Mandala Sampoerna .............................. INDO 3,500 39,858 0.8
TOBACCO
Polygram .................................................. NETH 600 35,472 0.7
RECREATION
------------
366,086
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F49
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables (5.8%)
Suzuki Motor Co., Ltd. .................................... JPN 8,000 $ 105,417 2.2
AUTOMOBILES
Sharp Corp. ............................................... JPN 3,000 52,709 1.1
CONSUMER ELECTRONICS
Hoganas AB "B" ............................................ SWDN 1,500 52,577 1.1
AUTO PARTS
Toyota Motor Corp. ........................................ JPN 2,000 50,146 1.0
AUTOMOBILES
Samsung Electronics Co.: .................................. KOR -- -- 0.4
CONSUMER ELECTRONICS
GDR-/- {\/} ............................................. -- 598 14,352 --
1/2 Non-voting GDR-/- {\/} .............................. -- 180 3,240 --
144A GDR{.} -/- {\/} .................................... -- 34 1,734 --
1/2 Voting GDR-/- {\/} .................................. -- 10 390 --
------------
280,565
------------
Multi Industry/Miscellaneous (4.9%)
Pricer AB-/- .............................................. SWDN 2,594 54,475 1.1
MISCELLANEOUS
ROC Taiwan Fund-/- ........................................ US 4,500 51,188 1.1
COUNTRY FUNDS
Keppel Corp., Ltd. ........................................ SING 6,000 50,195 1.0
CONGLOMERATE
Assystem-/- ............................................... FR 370 43,191 0.9
MULTI-INDUSTRY
Parkway Holdings Ltd. ..................................... SING 13,000 38,710 0.8
MULTI-INDUSTRY
------------
237,759
------------
Technology (4.7%)
Koei Co., Ltd. ............................................ JPN 2,500 79,383 1.7
SOFTWARE
Kyocera Corp. ............................................. JPN 1,000 70,919 1.5
SEMICONDUCTORS
Bowthorpe PLC ............................................. UK 10,000 69,787 1.5
COMPUTERS & PERIPHERALS
------------
220,089
------------
Energy (1.7%)
Iberdrola S.A. ............................................ SPN 4,400 45,217 0.9
ELECTRICAL & GAS UTILITIES
RWE AG .................................................... GER 1,000 39,008 0.8
ELECTRICAL & GAS UTILITIES
------------
84,225
------------ -----
TOTAL EQUITY INVESTMENTS (cost $4,227,875) .................. 4,544,668 94.5
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
RIGHTS COUNTRY RIGHTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Carrefour Supermarche Rights, expire 7/2/96 (cost
$17,115)-/- .............................................. FR 70 19,366 0.4
------------ -----
RETAILERS-FOOD
</TABLE>
The accompanying notes are an integral part of the financial statements.
F50
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Peregrine Investment Holdings Ltd. Warrants, expire 5/15/98
(cost $0)-/- ............................................. HK 4,000 $ 496 --
------------ -----
INVESTMENT MANAGEMENT
<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 $220,000 Federal Home Loan Bank, 6% due
10/30/97 (market value of collateral is $221,764,
including accrued interest). (cost $216,094) ............. 216,094 4.5
------------ -----
TOTAL INVESTMENTS (cost $4,461,084) * ....................... 4,780,624 99.4
Other Assets and Liabilities ................................ 30,406 0.6
------------ -----
NET ASSETS .................................................. $ 4,811,030 100.0
------------ -----
------------ -----
</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 $4,473,643 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 437,762
Unrealized depreciation: (130,781)
-------------
Net unrealized appreciation: $ 306,981
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F51
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL 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) ................. 4.0 4.0
Finland (FIN/FIM) .................... 1.5 1.5
France (FR/FRF) ...................... 5.8 0.4 6.2
Germany (GER/DEM) .................... 7.5 7.5
Hong Kong (HK/HKD) ................... 3.1 3.1
Indonesia (INDO/IDR) ................. 2.0 2.0
Italy (ITLY/ITL) ..................... 2.2 2.2
Japan (JPN/JPY) ...................... 24.0 24.0
Korea (KOR/KRW) ...................... 1.2 1.2
Malaysia (MAL/MYR) ................... 0.7 0.7
Mexico (MEX/MXN) ..................... 2.3 2.3
Netherlands (NETH/NLG) ............... 6.1 6.1
New Zealand (NZ/NZD) ................. 2.0 2.0
Portugal (PORT/PTE) .................. 0.9 0.9
Singapore (SING/SGD) ................. 2.8 2.8
Spain (SPN/ESP) ...................... 0.9 0.9
Sweden (SWDN/SEK) .................... 5.0 5.0
Switzerland (SWTZ/CHF) ............... 3.5 3.5
Thailand (THAI/THB) .................. 2.4 2.4
United Kingdom (UK/GBP) .............. 14.6 14.6
United States & Other (US/USD) ....... 2.0 5.1 7.1
------ ----- ----- -----
Total ............................... 94.5 0.4 5.1 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $4,811,030.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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........................... 58,473 5.14610 08/06/96 $ (177)
French Francs........................... 68,262 5.18000 08/19/96 (694)
Japanese Yen............................ 157,394 105.65000 07/08/96 5,408
Japanese Yen............................ 192,429 103.67800 08/09/96 9,156
Japanese Yen............................ 138,536 107.41200 08/30/96 1,113
Japanese Yen............................ 30,532 107.90001 09/12/96 52
Swiss Francs............................ 36,241 1.24000 09/19/96 49
-------------- --------------
Total Contracts to Sell (Receivable
amount $696,774)..................... 681,867 14,907
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 14.17%
Total Open Forward Foreign Currency
Contracts, Net....................... $ 14,907
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F52
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
[THIS PAGE INTENTIONALLY LEFT BLANK]
F53
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $24,226,338 $10,165,650 $4,238,826 $22,683,600
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
At value............................ $24,598,177 $ 9,967,478 $4,160,015 $23,473,872
Repurchase agreement, at value and
cost (Note 1)........................ 770,334 190,082 782,339 330,143
U.S. currency......................... 223 306 516 779
Foreign currencies (cost $28,612;
$103,941; $0; $109,072; $42,740;
$4,470; $628,361; $8,621; $0; $0;
$30,345; $383,000; $0; $5,984,
respectively)........................ 28,628 104,398 -- 109,042
Dividends and dividend withholding tax
reclaims receivable.................. -- -- -- 39,855
Interest and interest withholding tax
reclaims receivable.................. 525,961 202,611 93,142 --
Receivable for forward foreign
currency contracts -- closed (Note
1)................................... 1,442 2,001 -- --
Receivable for Fund shares sold....... 377,915 10 -- 485,138
Receivable for initial & variation
margin (Note 1)...................... -- -- -- 26,500
Receivable for open forward foreign
currency contracts, net (Note 1)..... -- -- -- --
Receivable for securities sold........ 885,693 -- -- 44,474
Receivable from LGT Asset Management,
Inc. (Note 2)........................ 26,953 28,226 24,901 29,615
Unamortized organizational costs (Note
1)................................... 10,141 10,141 10,141 10,141
Miscellaneous receivable.............. -- -- -- 1,423
Cash held as collateral for securities
loaned (Note 1)...................... 2,112,386 1,705,919 -- 639,900
----------- ----------- ----------- -----------
Total assets........................ 29,337,853 12,211,172 5,071,054 25,190,882
----------- ----------- ----------- -----------
Liabilities:
Due to custodian...................... -- -- -- --
Distribution payable (Note 1)......... -- -- -- --
Payable for custodian fees (Note 1)... 1,852 1,618 1,173 6,669
Payable for forward foreign currency
contracts -- closed (Note 1)......... -- -- -- --
Payable for fund accounting fees (Note
2)................................... 499 208 101 475
Payable for Fund shares repurchased... 348,261 40,938 4,257 46,065
Payable for investment management and
administration fees (Note 2)......... 94,366 40,711 19,488 109,453
Payable for open forward foreign
currency contracts, net (Note 1)..... 20,361 15,283 -- --
Payable for printing and postage
expenses............................. 18,013 17,886 18,987 18,136
Payable for professional fees......... 8,272 6,041 7,086 7,669
Payable for registration and filing
fees................................. 880 780 781 781
Payable for securities purchased...... 1,252,232 -- -- 11,165
Payable for Trustees' fees and
expenses (Note 2).................... 1,614 2,317 1,728 1,626
Other accrued expenses................ 548 942 1,002 1,973
Collateral for securities loaned (Note
1)................................... 2,112,386 1,705,919 -- 639,900
----------- ----------- ----------- -----------
Total liabilities................... 3,859,284 1,832,643 54,603 843,912
----------- ----------- ----------- -----------
Net assets.............................. $25,478,569 $10,378,529 $5,016,451 $24,346,970
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Shares outstanding...................... 2,097,340 945,103 447,088 1,741,566
Net asset value per share............... $ 12.15 $ 10.98 $ 11.22 $ 13.98
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net assets consist of:
Paid in capital (Note 4).............. $27,970,017 $11,343,319 $5,053,148 $29,114,611
Undistributed/Accumulated net
investment income (loss)............. 287,108 54,833 12,692 311,892
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... (3,130,936) (804,795) 29,422 (5,870,274)
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (19,459) (16,656) -- (31)
Net unrealized appreciation
(depreciation) of investments........ 371,839 (198,172) (78,811) 790,772
----------- ----------- ----------- -----------
Total -- representing net assets
applicable to capital shares
outstanding............................ $25,478,569 $10,378,529 $5,016,451 $24,346,970
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F54
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES (cont'd)
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- -------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $26,306,341 $48,898,214 $15,291,831 $3,151,448 $ 5,504,753 $30,077,299
----------- ----------- ----------- -------------- ----------- -----------
----------- ----------- ----------- -------------- ----------- -----------
At value............................ $30,217,418 $59,617,514 $15,811,669 $3,435,236 $ 5,963,228 $30,179,075
Repurchase agreement, at value and
cost (Note 1)........................ 280,121 8,124,519 668,289 510,221 670,290 9,887,283
U.S. currency......................... 82 902 142 670 85 342
Foreign currencies (cost $28,612;
$103,941; $0; $109,072; $42,740;
$4,470; $628,361; $8,621; $0; $0;
$30,345; $383,000; $0; $5,984,
respectively)........................ 42,964 4,576 655,498 8,684 -- --
Dividends and dividend withholding tax
reclaims receivable.................. 90,195 104,995 31,078 7,584 6,489 34,808
Interest and interest withholding tax
reclaims receivable.................. 228,178 -- -- -- -- --
Receivable for forward foreign
currency contracts -- closed (Note
1)................................... -- -- -- -- -- --
Receivable for Fund shares sold....... 250 191,938 299,426 34,196 102,721 40,764
Receivable for initial & variation
margin (Note 1)...................... -- -- -- -- -- --
Receivable for open forward foreign
currency contracts, net (Note 1)..... -- 16,928 -- -- -- --
Receivable for securities sold........ 100,940 394,004 87,922 50,017 28,719 580,728
Receivable from LGT Asset Management,
Inc. (Note 2)........................ 11,075 -- 41,794 28,215 32,556 --
Unamortized organizational costs (Note
1)................................... 10,141 14,344 -- -- -- 10,141
Miscellaneous receivable.............. -- -- -- 54 -- --
Cash held as collateral for securities
loaned (Note 1)...................... 1,730,808 6,161,393 -- 126,000 166,100 359,100
----------- ----------- ----------- -------------- ----------- -----------
Total assets........................ 32,712,172 74,631,113 17,595,818 4,200,877 6,970,188 41,092,241
----------- ----------- ----------- -------------- ----------- -----------
Liabilities:
Due to custodian...................... -- -- -- -- 14,827 --
Distribution payable (Note 1)......... -- -- -- -- -- --
Payable for custodian fees (Note 1)... 1,947 3,056 9,453 2,041 525 1,208
Payable for forward foreign currency
contracts -- closed (Note 1)......... -- -- -- -- -- --
Payable for fund accounting fees (Note
2)................................... 620 2,381 335 67 126 787
Payable for Fund shares repurchased... 16,338 116,893 16,353 33,138 51,074 2,279
Payable for investment management and
administration fees (Note 2)......... 153,234 284,239 67,329 11,398 19,707 139,891
Payable for open forward foreign
currency contracts, net (Note 1)..... 24,006 -- -- -- -- --
Payable for printing and postage
expenses............................. 18,430 18,048 19,368 17,687 18,218 17,896
Payable for professional fees......... 6,812 6,357 6,895 9,703 6,928 7,601
Payable for registration and filing
fees................................. 945 150 958 513 514 775
Payable for securities purchased...... -- 999,750 912,598 295,255 159,331 2,070,286
Payable for Trustees' fees and
expenses (Note 2).................... 1,389 1,450 2,505 1,871 2,371 1,400
Other accrued expenses................ 426 32,807 1,253 1,108 1,079 897
Collateral for securities loaned (Note
1)................................... 1,730,808 6,161,393 -- 126,000 166,100 359,100
----------- ----------- ----------- -------------- ----------- -----------
Total liabilities................... 1,954,955 7,626,524 1,037,047 498,781 440,800 2,602,120
----------- ----------- ----------- -------------- ----------- -----------
Net assets.............................. $30,757,217 $67,004,589 $16,558,771 $3,702,096 $ 6,529,388 $38,490,121
----------- ----------- ----------- -------------- ----------- -----------
----------- ----------- ----------- -------------- ----------- -----------
Shares outstanding...................... 2,064,000 3,584,263 1,213,593 236,851 373,018 2,128,455
Net asset value per share............... $ 14.90 $ 18.69 $ 13.64 $ 15.63 $ 17.50 $ 18.08
----------- ----------- ----------- -------------- ----------- -----------
----------- ----------- ----------- -------------- ----------- -----------
Net assets consist of:
Paid in capital (Note 4).............. $27,397,257 $51,253,496 $14,957,654 $3,282,243 $ 5,776,638 $35,129,259
Undistributed/Accumulated net
investment income (loss)............. 547,925 (8,334) 129,540 30,727 (4,508) 206,835
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... (1,073,801) 5,022,932 924,472 105,101 298,727 3,052,251
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (25,241) 17,195 27,267 237 56 --
Net unrealized appreciation
(depreciation) of investments........ 3,911,077 10,719,300 519,838 283,788 458,475 101,776
----------- ----------- ----------- -------------- ----------- -----------
Total -- representing net assets
applicable to capital shares
outstanding............................ $30,757,217 $67,004,589 $16,558,771 $3,702,096 $ 6,529,388 $38,490,121
----------- ----------- ----------- -------------- ----------- -----------
----------- ----------- ----------- -------------- ----------- -----------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $21,567,208 $15,968,793 $10,667,813 $4,244,990
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
At value............................ $26,401,490 $19,979,845 $10,667,813 $4,564,530
Repurchase agreement, at value and
cost (Note 1)........................ 3,766,631 1,615,700 417,181 216,094
U.S. currency......................... 727 208 392 724
Foreign currencies (cost $28,612;
$103,941; $0; $109,072; $42,740;
$4,470; $628,361; $8,621; $0; $0;
$30,345; $383,000; $0; $5,984,
respectively)........................ 30,342 383,752 -- 6,007
Dividends and dividend withholding tax
reclaims receivable.................. 37,291 95,140 -- 12,793
Interest and interest withholding tax
reclaims receivable.................. -- -- 20,411 --
Receivable for forward foreign
currency contracts -- closed (Note
1)................................... -- -- -- --
Receivable for Fund shares sold....... 430,849 9,217 114,656 16,293
Receivable for initial & variation
margin (Note 1)...................... -- -- -- --
Receivable for open forward foreign
currency contracts, net (Note 1)..... -- -- -- 14,907
Receivable for securities sold........ -- 385,489 -- --
Receivable from LGT Asset Management,
Inc. (Note 2)........................ 26,742 25,125 15,860 35,438
Unamortized organizational costs (Note
1)................................... 10,141 10,141 10,141 --
Miscellaneous receivable.............. 1,234 215 -- --
Cash held as collateral for securities
loaned (Note 1)...................... 1,301,803 470,075 -- 94,539
----------- ----------- ----------- -------------
Total assets........................ 32,007,250 22,974,907 11,246,454 4,961,325
----------- ----------- ----------- -------------
Liabilities:
Due to custodian...................... -- -- -- --
Distribution payable (Note 1)......... -- -- 53,210 --
Payable for custodian fees (Note 1)... 834 2,705 4,213 1,561
Payable for forward foreign currency
contracts -- closed (Note 1)......... -- -- -- 1,653
Payable for fund accounting fees (Note
2)................................... 586 407 273 95
Payable for Fund shares repurchased... 13,740 307,530 912,861 192
Payable for investment management and
administration fees (Note 2)......... 136,094 89,333 36,512 22,309
Payable for open forward foreign
currency contracts, net (Note 1)..... -- -- -- --
Payable for printing and postage
expenses............................. 18,093 18,285 17,337 18,151
Payable for professional fees......... 7,621 7,381 9,534 7,787
Payable for registration and filing
fees................................. 891 775 607 891
Payable for securities purchased...... -- 699,698 -- --
Payable for Trustees' fees and
expenses (Note 2).................... 1,496 539 34 2,101
Other accrued expenses................ 564 726 454 1,016
Collateral for securities loaned (Note
1)................................... 1,301,803 470,075 -- 94,539
----------- ----------- ----------- -------------
Total liabilities................... 1,481,722 1,597,454 1,035,035 150,295
----------- ----------- ----------- -------------
Net assets.............................. $30,525,528 $21,377,453 $10,211,419 $4,811,030
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
Shares outstanding...................... 1,870,150 1,073,155 10,211,419 414,921
Net asset value per share............... $ 16.32 $ 19.92 $ 1.00 $ 11.60
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
Net assets consist of:
Paid in capital (Note 4).............. $26,623,616 $16,622,141 $10,211,419 $4,735,742
Undistributed/Accumulated net
investment income (loss)............. 120,297 95,709 -- 24,040
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... (1,052,663) 645,293 -- (283,216)
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (4) 3,258 -- 14,924
Net unrealized appreciation
(depreciation) of investments........ 4,834,282 4,011,052 -- 319,540
----------- ----------- ----------- -------------
Total -- representing net assets
applicable to capital shares
outstanding............................ $30,525,528 $21,377,453 $10,211,419 $4,811,030
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F55
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS
Six months ended June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... -- -- -- $ 332,573
Interest income....................... $ 1,189,242 $ 407,033 $ 160,251 96,931
Other income.......................... -- -- -- 9,914
----------- ----------- ----------- -----------
Total investment income............. 1,189,242 407,033 160,251 439,418
----------- ----------- ----------- -----------
Expenses:
Amortization of organization costs
(Note 1)............................. 3,123 3,123 3,123 3,123
Audit fees............................ 18,740 12,738 8,190 12,648
Custodian fees (Note 1)............... 14,078 6,818 972 17,878
Fund accounting fees (Note 2)......... 3,155 1,363 651 2,743
Investment management and
administration fees (Note 2)......... 94,365 40,711 19,488 109,453
Legal fees............................ 2,912 2,912 3,640 3,640
Printing and postage expenses......... 12,600 12,600 12,600 12,600
Registration and filing fees.......... 1,182 182 182 182
Trustees' fees and expenses (Note
2)................................... 910 910 910 910
Other expenses........................ 1,709 1,150 1,129 3,254
----------- ----------- ----------- -----------
Total expenses before reimbursements
and reductions..................... 152,774 82,507 50,885 166,431
----------- ----------- ----------- -----------
Expenses reimbursed by LGT Asset
Management, Inc. (Note 2)........ (26,953) (28,226) (24,901) (29,615)
Expense reductions (Notes 1 &
5)............................... (931) (1,912) -- (14,693)
----------- ----------- ----------- -----------
Total net expenses.................. 124,890 52,369 25,984 122,123
----------- ----------- ----------- -----------
Net investment income (loss)............ 1,064,352 354,664 134,267 317,295
----------- ----------- ----------- -----------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 1,086,606 (29,152) 30,485 800,441
Net realized gain (loss) on foreign
currency transactions................ (137,941) (121,538) -- (254,922)
----------- ----------- ----------- -----------
Net realized gain (loss) during the
period............................. 948,665 (150,690) 30,485 545,519
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 74,088 49,395 -- 7,669
Net change in unrealized appreciation
(depreciation) of investments........ (543,016) (441,970) (260,987) 2,340,212
----------- ----------- ----------- -----------
Net unrealized appreciation
(depreciation) during the period... (468,928) (392,575) (260,987) 2,347,881
----------- ----------- ----------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 479,737 (543,265) (230,502) 2,893,400
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.............. $ 1,544,089 $ (188,601) $ (96,235) $ 3,210,695
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
*Net of foreign withholding tax of:..... $ -- $ -- $ -- $ 10,327
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F56
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS (cont'd)
Six months ended June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... $ 408,886 $ 201,738 $ 183,361 $ 25,335 $ 12,632 $ 138,921
Interest income....................... 393,736 115,237 24,008 11,769 5,977 253,013
Other income.......................... -- -- -- -- -- --
----------- ----------- ----------- --------------- ----------- -----------
Total investment income............. 802,622 316,975 207,369 37,104 18,609 391,934
----------- ----------- ----------- --------------- ----------- -----------
Expenses:
Amortization of organization costs
(Note 1)............................. 3,123 3,210 -- -- -- 3,123
Audit fees............................ 17,100 11,648 16,720 8,736 11,648 10,740
Custodian fees (Note 1)............... 6,581 11,479 20,463 4,290 7,606 8,513
Fund accounting fees (Note 2)......... 3,842 7,106 1,685 285 491 4,676
Investment management and
administration fees (Note 2)......... 153,234 284,239 67,329 11,398 19,707 139,891
Legal fees............................ 2,912 3,640 2,910 2,912 2,912 2,910
Printing and postage expenses......... 12,600 12,600 12,600 12,600 12,600 12,510
Registration and filing fees.......... 1,182 387 1,200 182 182 200
Trustees' fees and expenses (Note
2)................................... 910 910 910 910 910 920
Other expenses........................ 1,134 3,865 2,134 1,150 1,134 2,943
----------- ----------- ----------- --------------- ----------- -----------
Total expenses before reimbursements
and reductions..................... 202,618 339,084 125,951 42,463 57,190 186,426
----------- ----------- ----------- --------------- ----------- -----------
Expenses reimbursed by LGT Asset
Management, Inc. (Note 2)........ (11,075) -- (41,794) (28,215) (32,556) --
Expense reductions (Notes 1 &
5)............................... (5,196) (18,303) (6,328) (264) (1,517) (171)
----------- ----------- ----------- --------------- ----------- -----------
Total net expenses.................. 186,347 320,781 77,829 13,984 23,117 186,255
----------- ----------- ----------- --------------- ----------- -----------
Net investment income (loss)............ 616,275 (3,806) 129,540 23,120 (4,508) 205,679
----------- ----------- ----------- --------------- ----------- -----------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 48,866 5,073,974 2,329,367 90,380 311,316 3,241,073
Net realized gain (loss) on foreign
currency transactions................ 226,606 122,322 (48,922) (298) (2,641) --
----------- ----------- ----------- --------------- ----------- -----------
Net realized gain (loss) during the
period............................. 275,472 5,196,296 2,280,445 90,082 308,675 3,241,073
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (45,876) (3,816) 27,342 378 (544) --
Net change in unrealized appreciation
(depreciation) of investments........ 274,161 6,534,557 326,270 271,538 397,432 (476,905)
----------- ----------- ----------- --------------- ----------- -----------
Net unrealized appreciation
(depreciation) during the period... 228,285 6,530,741 353,612 271,916 396,888 (476,905)
----------- ----------- ----------- --------------- ----------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 503,757 11,727,037 2,634,057 361,998 705,563 2,764,168
----------- ----------- ----------- --------------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.............. $ 1,120,032 $11,723,231 $ 2,763,597 $ 385,118 $ 701,055 $ 2,969,847
----------- ----------- ----------- --------------- ----------- -----------
----------- ----------- ----------- --------------- ----------- -----------
*Net of foreign withholding tax of:..... $ 45,590 $ 14,360 $ 10,617 $ 1,752 $ 519 $ --
----------- ----------- ----------- --------------- ----------- -----------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
----------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... $ 253,471 $ 189,795 -- $ 43,752
Interest income....................... 38,540 16,887 $ 397,867 4,364
Other income.......................... -- -- -- --
----------- ----------- ----------- --------------
Total investment income............. 292,011 206,682 397,867 48,116
----------- ----------- ----------- --------------
Expenses:
Amortization of organization costs
(Note 1)............................. 3,123 3,123 3,123 --
Audit fees............................ 12,738 13,620 6,975 15,736
Custodian fees (Note 1)............... 22,042 9,968 4,784 5,989
Fund accounting fees (Note 2)......... 3,415 2,233 1,862 560
Investment management and
administration fees (Note 2)......... 136,094 89,333 36,512 22,309
Legal fees............................ 2,912 2,910 2,912 2,912
Printing and postage expenses......... 12,600 12,540 12,600 12,600
Registration and filing fees.......... 1,182 200 182 1,182
Trustees' fees and expenses (Note
2)................................... 910 920 910 910
Other expenses........................ 1,842 1,944 768 1,127
----------- ----------- ----------- --------------
Total expenses before reimbursements
and reductions..................... 196,858 136,791 70,628 63,325
----------- ----------- ----------- --------------
Expenses reimbursed by LGT Asset
Management, Inc. (Note 2)........ (26,742) (25,125) (15,860) (35,438)
Expense reductions (Notes 1 &
5)............................... (13,770) (4,809) -- (3,811)
----------- ----------- ----------- --------------
Total net expenses.................. 156,346 106,857 54,768 24,076
----------- ----------- ----------- --------------
Net investment income (loss)............ 135,665 99,825 343,099 24,040
----------- ----------- ----------- --------------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 884,072 1,419,791 -- 28,843
Net realized gain (loss) on foreign
currency transactions................ (24,048) 64,552 -- 55,026
----------- ----------- ----------- --------------
Net realized gain (loss) during the
period............................. 860,024 1,484,343 -- 83,869
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (2,154) (9,551) -- 1,401
Net change in unrealized appreciation
(depreciation) of investments........ 3,893,728 1,964,845 -- 143,957
----------- ----------- ----------- --------------
Net unrealized appreciation
(depreciation) during the period... 3,891,574 1,955,294 -- 145,358
----------- ----------- ----------- --------------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 4,751,598 3,439,637 -- 229,227
----------- ----------- ----------- --------------
Net increase (decrease) in net assets
resulting from operations.............. $ 4,887,263 $ 3,539,462 $ 343,099 $ 253,267
----------- ----------- ----------- --------------
----------- ----------- ----------- --------------
*Net of foreign withholding tax of:..... $ 18,457 $ 30,991 $ -- $ 5,583
----------- ----------- ----------- --------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F57
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE
GT GLOBAL
--------------------------------------------------------
VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
----------- ------------ -------------- -----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 1,064,352 $ 354,664 $ 134,267 $ 317,295
Net realized gain (loss) on
investments and foreign currency
transactions......................... 948,665 (150,690) 30,485 545,519
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 74,088 49,395 -- 7,669
Net change in unrealized appreciation
(depreciation) of investments........ (543,016) (441,970) (260,987) 2,340,212
----------- ------------ -------------- -----------
Net increase (decrease) in net
assets resulting from operations... 1,544,089 (188,601) (96,235) 3,210,695
----------- ------------ -------------- -----------
Distributions to shareholders: (Note 1)
From net investment income............ (1,008,206) (336,582) (131,847) (624,926)
From net realized gain on
investments.......................... -- -- -- --
In excess of net investment income.... -- -- -- --
Return of capital..................... -- -- -- --
----------- ------------ -------------- -----------
Total distributions................. (1,008,206) (336,582) (131,847) (624,926)
----------- ------------ -------------- -----------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 21,335,633 2,068,194 2,886,283 15,858,401
Decrease from capital shares
repurchased.......................... (21,737,831) (3,108,228) (3,634,195) (13,868,046)
----------- ------------ -------------- -----------
Net increase (decrease) from capital
share transactions................. (402,198) (1,040,034) (747,912) 1,990,355
----------- ------------ -------------- -----------
Total increase (decrease) in net
assets................................. 133,685 (1,565,217) (975,994) 4,576,124
Net assets:
Beginning of period................... 25,344,884 11,943,746 5,992,445 19,770,846
----------- ------------ -------------- -----------
End of period*........................ $25,478,569 $10,378,529 $5,016,451 $24,346,970
----------- ------------ -------------- -----------
----------- ------------ -------------- -----------
*Includes undistributed/accumulated
net investment income (loss) of:..... $ 287,108 $ 54,833 $ 12,692 $ 311,892
----------- ------------ -------------- -----------
----------- ------------ -------------- -----------
</TABLE>
<TABLE>
<CAPTION>
For the year ended December 31, 1995
VARIABLE
GT GLOBAL
-------------------------------------------------------
VARIABLE GLOBAL VARIABLE VARIABLE
STRATEGIC GOVERNMENT U.S. GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
----------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 2,222,005 $ 759,147 $ 244,379 $ 805,458
Net realized gain (loss) on
investments and foreign currency
transactions......................... (462,051) 515,637 71,394 (6,500,262)
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (75,200) (69,644) -- (8,565)
Net change in unrealized appreciation
(depreciation) of investments........ 2,375,053 357,858 290,078 (500,292)
----------- ----------- --------------- -----------
Net increase (decrease) in net
assets resulting from operations... 4,059,807 1,562,998 605,851 (6,203,661)
----------- ----------- --------------- -----------
Distributions to shareholders: (Note 1)
From net investment income............ (1,991,043) (722,396) (234,899) (221,575)
From net realized gain on
investments.......................... -- -- -- (2,769,692)
In excess of net investment income.... -- -- -- --
Return of capital..................... -- -- -- --
----------- ----------- --------------- -----------
Total distributions................. (1,991,043) (722,396) (234,899) (2,991,267)
----------- ----------- --------------- -----------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 24,191,843 12,649,938 20,665,939 38,533,313
Decrease from capital shares
repurchased.......................... (24,283,139) (11,200,397) (17,459,191) (36,198,875)
----------- ----------- --------------- -----------
Net increase (decrease) from capital
share transactions................. (91,296) 1,449,541 3,206,748 2,334,438
----------- ----------- --------------- -----------
Total increase (decrease) in net
assets................................. 1,977,468 2,290,143 3,577,700 (6,860,490)
Net assets:
Beginning of period................... 23,367,416 9,653,603 2,414,745 26,631,336
----------- ----------- --------------- -----------
End of period**....................... $25,344,884 $11,943,746 $5,992,445 $19,770,846
----------- ----------- --------------- -----------
----------- ----------- --------------- -----------
**Includes undistributed net
investment income of:................ $ 230,962 $ 36,751 $ 10,272 $ 619,523
----------- ----------- --------------- -----------
----------- ----------- --------------- -----------
</TABLE>
- ----------------
+ The Variable Infrastructure and Variable Natural Resources Funds did
not commence operations until January 31, 1995.
The accompanying notes are an integral part of the financial statements.
F58
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (cont'd)
For the period ended June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- -------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 616,275 $ (3,806) $ 129,540 $ 23,120 $ (4,508) $ 205,679
Net realized gain (loss) on
investments and foreign currency
transactions......................... 275,472 5,196,296 2,280,445 90,082 308,675 3,241,073
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (45,876) (3,816) 27,342 378 (544) --
Net change in unrealized appreciation
(depreciation) of investments........ 274,161 6,534,557 326,270 271,538 397,432 (476,905)
----------- ----------- ----------- -------------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations... 1,120,032 11,723,231 2,763,597 385,118 701,055 2,969,847
----------- ----------- ----------- -------------- ----------- -----------
Distributions to shareholders: (Note 1)
From net investment income............ (413,090) (74,553) -- -- -- (521,261)
From net realized gain on
investments.......................... -- (6,369,437) -- -- -- (4,937,597)
In excess of net investment income.... -- -- -- -- -- --
Return of capital..................... -- -- -- -- -- --
----------- ----------- ----------- -------------- ----------- -----------
Total distributions................. (413,090) (6,443,990) -- -- -- (5,458,858)
----------- ----------- ----------- -------------- ----------- -----------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 13,913,419 27,509,909 18,032,770 2,904,472 12,125,943 34,616,000
Decrease from capital shares
repurchased.......................... (14,428,545) (16,562,636) (13,220,357) (1,181,712) (7,662,557) (31,279,846)
----------- ----------- ----------- -------------- ----------- -----------
Net increase (decrease) from capital
share transactions................. (515,126) 10,947,273 4,812,413 1,722,760 4,463,386 3,336,154
----------- ----------- ----------- -------------- ----------- -----------
Total increase (decrease) in net
assets................................. 191,816 16,226,514 7,576,010 2,107,878 5,164,441 847,143
Net assets:
Beginning of period................... 30,565,401 50,778,075 8,982,761 1,594,218 1,364,947 37,642,978
----------- ----------- ----------- -------------- ----------- -----------
End of period**....................... $30,757,217 $67,004,589 $16,558,771 $3,702,096 $ 6,529,388 $38,490,121
----------- ----------- ----------- -------------- ----------- -----------
----------- ----------- ----------- -------------- ----------- -----------
**Includes undistributed net
investment income of:................ $ 547,925 $ (8,334) $ 129,540 $ 30,727 $ (4,508) $ 206,835
----------- ----------- ----------- -------------- ----------- -----------
----------- ----------- ----------- -------------- ----------- -----------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
----------- ----------- ------------ ----------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 135,665 $ 99,825 $ 343,099 $ 24,040
Net realized gain (loss) on
investments and foreign currency
transactions......................... 860,024 1,484,343 -- 83,869
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (2,154) (9,551) -- 1,401
Net change in unrealized appreciation
(depreciation) of investments........ 3,893,728 1,964,845 -- 143,957
----------- ----------- ------------ ----------------
Net increase (decrease) in net
assets resulting from operations... 4,887,263 3,539,462 343,099 253,267
----------- ----------- ------------ ----------------
Distributions to shareholders: (Note 1)
From net investment income............ (329,817) (155,793) (343,099) --
From net realized gain on
investments.......................... -- -- -- (14,683)
In excess of net investment income.... -- -- -- --
Return of capital..................... -- -- -- --
----------- ----------- ------------ ----------------
Total distributions................. (329,817) (155,793) (343,099) (14,683)
----------- ----------- ------------ ----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 78,600,597 32,007,863 128,332,329 6,268,542
Decrease from capital shares
repurchased.......................... (75,657,299) (29,654,956) (133,011,502) (5,358,696)
----------- ----------- ------------ ----------------
Net increase (decrease) from capital
share transactions................. 2,943,298 2,352,907 (4,679,173) 909,846
----------- ----------- ------------ ----------------
Total increase (decrease) in net
assets................................. 7,500,744 5,736,576 (4,679,173) 1,148,430
Net assets:
Beginning of period................... 23,024,784 15,640,877 14,890,592 3,662,600
----------- ----------- ------------ ----------------
End of period**....................... $30,525,528 $21,377,453 $ 10,211,419 $ 4,811,030
----------- ----------- ------------ ----------------
----------- ----------- ------------ ----------------
**Includes undistributed net
investment income of:................ $ 120,297 $ 95,709 $ -- $ 24,040
----------- ----------- ------------ ----------------
----------- ----------- ------------ ----------------
</TABLE>
- ----------------
+ The Variable Infrastructure and Variable Natural Resources Funds did
not commence operations until January 31, 1995.
<TABLE>
<CAPTION>
For the year ended December 31, 1995
GT GLOBAL
---------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND+ FUND+ FUND
----------- ----------- ----------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 1,076,015 $ 70,025 $ 118,171 $ 8,483 $ 64,339 $ 522,418
Net realized gain (loss) on
investments and foreign currency
transactions......................... (1,073,037) 6,258,812 (1,320,410) 14,143 (7,572) 4,769,966
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (6,017) (8,781) 119 (141) 600 --
Net change in unrealized appreciation
(depreciation) of investments........ 4,101,938 2,438,359 714,821 12,250 61,043 96,985
----------- ----------- ----------- --------------- ----------- -----------
Net increase (decrease) in net
assets resulting from operations... 4,098,899 8,758,415 (487,299) 34,735 118,410 5,389,369
----------- ----------- ----------- --------------- ----------- -----------
Distributions to shareholders: (Note 1)
From net investment income............ (818,464) (80,457) (73,785) -- (62,702) (117,889)
From net realized gain on
investments.......................... -- (965,478) -- -- -- (488,398)
In excess of net investment income.... -- -- -- -- (4,775) --
Return of capital..................... -- -- (16,304) -- -- --
----------- ----------- ----------- --------------- ----------- -----------
Total distributions................. (818,464) (1,045,935) (90,089) -- (67,477) (606,287)
----------- ----------- ----------- --------------- ----------- -----------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 11,374,376 24,234,343 12,813,354 2,285,935 3,154,100 73,573,562
Decrease from capital shares
repurchased.......................... (9,669,648) (17,197,275) (10,519,830) (826,452) (1,940,086) (55,970,932)
----------- ----------- ----------- --------------- ----------- -----------
Net increase (decrease) from capital
share transactions................. 1,704,728 7,037,068 2,293,524 1,459,483 1,214,014 17,602,630
----------- ----------- ----------- --------------- ----------- -----------
Total increase (decrease) in net
assets................................. 4,985,163 14,749,548 1,716,136 1,494,218 1,264,947 22,385,712
Net assets:
Beginning of period................... 25,580,238 36,028,527 7,266,625 100,000 100,000 15,257,266
----------- ----------- ----------- --------------- ----------- -----------
End of period......................... $30,565,401 $50,778,075 $ 8,982,761 $ 1,594,218 $ 1,364,947 $37,642,978
----------- ----------- ----------- --------------- ----------- -----------
----------- ----------- ----------- --------------- ----------- -----------
Includes undistributed net investment
income of:........................... $ 344,740 $ 70,025 $ -- $ 7,607 $ -- $ 522,417
----------- ----------- ----------- --------------- ----------- -----------
----------- ----------- ----------- --------------- ----------- -----------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
----------- ----------- ------------- ----------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 356,169 $ 171,620 $ 818,843 $ 30,463
Net realized gain (loss) on
investments and foreign currency
transactions......................... (1,511,248) (670,205) -- (314,341)
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 2,804 (104,599) -- 7,389
Net change in unrealized appreciation
(depreciation) of investments........ 1,718,248 2,040,475 -- 312,493
----------- ----------- ------------- ----------------
Net increase (decrease) in net
assets resulting from operations... 565,973 1,437,291 818,843 36,004
----------- ----------- ------------- ----------------
Distributions to shareholders: (Note 1)
From net investment income............ (90,012) (154,451) (818,843) (30,792)
From net realized gain on
investments.......................... -- -- -- (5,018)
In excess of net investment income.... -- -- -- --
Return of capital..................... -- -- -- --
----------- ----------- ------------- ----------------
Total distributions................. (90,012) (154,451) (818,843) (35,810)
----------- ----------- ------------- ----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 95,990,038 39,895,470 179,670,442 15,020,503
Decrease from capital shares
repurchased.......................... (92,832,446) (40,557,920) (184,253,572) (13,587,017)
----------- ----------- ------------- ----------------
Net increase (decrease) from capital
share transactions................. 3,157,592 (662,450) (4,583,130) 1,433,486
----------- ----------- ------------- ----------------
Total increase (decrease) in net
assets................................. 3,633,553 620,390 (4,583,130) 1,433,680
Net assets:
Beginning of period................... 19,391,231 15,020,487 19,473,722 2,228,920
----------- ----------- ------------- ----------------
End of period......................... $23,024,784 $15,640,877 $ 14,890,592 $ 3,662,600
----------- ----------- ------------- ----------------
----------- ----------- ------------- ----------------
Includes undistributed net investment
income of:........................... $ 314,449 $ 151,677 $ -- $ --
----------- ----------- ------------- ----------------
----------- ----------- ------------- ----------------
</TABLE>
- ----------------
The accompanying notes are an integral part of the financial statements.
F59
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE STRATEGIC INCOME FUND
-----------------------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 11.86 $ 10.82 $ 14.57 $ 12.00
----------------- ----------------- ----------------- -----------------
Net investment income (loss)..... 0.51(a) 1.07(b) 1.71(c) 0.61(d)
Net realized and unrealized gain
(loss) on investments........... 0.26 0.93 (4.17) 2.57
----------------- ----------------- ----------------- -----------------
Net increase (decrease)
resulting from operations..... 0.77 2.00 (2.46) 3.18
----------------- ----------------- ----------------- -----------------
Distributions to shareholders:
From net investment income....... (0.48) (0.96) (0.79) (0.61)
From net realized gain on
investments..................... -- -- (0.45) --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- (0.05) --
----------------- ----------------- ----------------- -----------------
Total distributions............ (0.48) (0.96) (1.29) (0.61)
----------------- ----------------- ----------------- -----------------
Net asset value, end of period..... $ 12.15 $ 11.86 $ 10.82 $ 14.57
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Total investment return (f) +..... 6.61% 19.50% (17.09)% 27.5%
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 25,479 $ 25,345 $ 23,367 $ 18,089
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 8.46% 9.59% 7.58% 6.6%
Without reimbursement by LGT and
expense reductions ++........... 8.24% 9.35% 7.43% 6.3%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 5.2%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 0.99% 1.00% 1.00% 0.5%
Without reimbursement by LGT and
expense reductions ++........... 1.21% 1.24% 1.15% 0.9%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 1.9%
Portfolio turnover ++.............. 303% 193% 313% 245%
Average commission rate paid on
portfolio transactions............ N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE LATIN AMERICA FUND
-----------------------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 12.42 $ 19.17 $ 17.68 $ 12.00
----------------- ----------------- ----------------- --------
Net investment income (loss)..... 0.17(a) 0.51(b) 0.11(c) 0.04(d)
Net realized and unrealized gain
(loss) on investments........... 1.77 (5.10) 1.49 5.64
----------------- ----------------- ----------------- --------
Net increase (decrease)
resulting from operations..... 1.94 (4.59) 1.60 5.68
----------------- ----------------- ----------------- --------
Distributions to shareholders:
From net investment income....... (0.38) (0.16) (0.04) --
From net realized gain on
investments..................... -- (2.00) (0.07) --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- -- --
----------------- ----------------- ----------------- --------
Total distributions............ (0.38) (2.16) (0.11) --
----------------- ----------------- ----------------- --------
Net asset value, end of period..... $ 13.98 $ 12.42 $ 19.17 $ 17.68
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Total investment return (f) +..... 15.69% (24.14)% 9.14% 47.3%
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 24,347 $ 19,771 $ 26,631 $ 8,240
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 2.90% 4.43% 0.82% 1.0%
Without reimbursement by LGT and
expense reductions ++........... 2.49% 3.92% 0.49% 0.4%
Without expenses assumed by LGT
(e) ++......................... --% --% --% (2.5)%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.11% 1.18% 1.25% 0.7%
Without reimbursement by LGT and
expense reductions ++........... 1.52% 1.69% 1.58% 1.3%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 4.2%
Portfolio turnover ++.............. 95% 140% 185% 78%
Average commission rate paid on
portfolio transactions............ $ 0.0002 N/A N/A N/A
</TABLE>
- ------------------------
(a) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.01 for the Variable Strategic Income Fund, $0.02 for
the Variable Global Govenment Income Fund, $0.03 for the Variable U.S.
Government Income Fund, $0.02 for the Variable Latin America Fund, and
$0.01 for the Variable Growth & Income Fund (Note 2).
(b) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.03 for the Variable Strategic Income Fund, $0.07 for
the Variable Global Government Income Fund, $0.14 for the Variable
U.S. Government Income Fund, $0.06 for the Variable Latin America
Fund, $0.03 for the Variable Growth & Income Fund, and $0.00 for the
Variable Telecommunications Fund (Note 2).
(c) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.04 for the Variable Strategic Income Fund, $0.08 for
the Variable Global Government Income Fund, $0.48 for the Variable
U.S. Government Income Fund, $0.04 for the Variable Latin America
Fund, $0.03 for the Variable Growth & Income Fund, and $0.01 for the
Variable Telecommunications Fund (Note 2).
The accompanying notes are an integral part of the financial statements.
F60
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE GLOBAL GOVERNMENT INCOME FUND
-----------------------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 11.51 $ 10.63 $ 12.53 $ 12.00
----------------- ----------------- -------- --------
Net investment income (loss)..... 0.37(a) 0.79(b) 0.77(c) 0.57(d)
Net realized and unrealized gain
(loss) on investments........... (0.55) 0.84 (1.85) 0.52
----------------- ----------------- -------- --------
Net increase (decrease)
resulting from operations..... (0.18) 1.63 (1.08) 1.09
----------------- ----------------- -------- --------
Distributions to shareholders:
From net investment income....... (0.35) (0.75) (0.73) (0.56)
From net realized gain on
investments..................... -- -- -- --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- (0.09) --
----------------- ----------------- -------- --------
Total distributions............ (0.35) (0.75) (0.82) (0.56)
----------------- ----------------- -------- --------
Net asset value, end of period..... $ 10.98 $ 11.51 $ 10.63 $ 12.53
----------------- ----------------- -------- --------
----------------- ----------------- -------- --------
Total investment return (f) +..... (1.60)% 15.85% (8.70)% 9.5%
----------------- ----------------- -------- --------
----------------- ----------------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 10,379 $ 11,944 $ 9,654 $ 6,136
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 6.53% 7.03% 6.89% 6.1%
Without reimbursement by LGT and
expense reductions ++........... 5.98% 6.37% 6.21% 5.5%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 2.4%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 0.97% 1.00% 1.00% 0.5%
Without reimbursement by LGT and
expense reductions ++........... 1.52% 1.66% 1.68% 1.1%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 4.2%
Portfolio turnover ++.............. 255% 394% 350% 298%
Average commission rate paid on
portfolio transactions............ N/A N/A N/A N/A
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE U.S. GOVERNMENT INCOME FUND
-----------------------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 11.74 $ 10.79 $ 12.23 $ 12.00
-------- -------- -------- --------
Net investment income (loss)..... 0.30(a) 0.62(b) 0.63(c) 0.53(d)
Net realized and unrealized gain
(loss) on investments........... (0.53) 0.93 (1.39) 0.23
-------- -------- -------- --------
Net increase (decrease)
resulting from operations..... (0.23) 1.55 (0.76) 0.76
-------- -------- -------- --------
Distributions to shareholders:
From net investment income....... (0.29) (0.60) (0.62) (0.53)
From net realized gain on
investments..................... -- -- (0.06) --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- -- --
-------- -------- -------- --------
Total distributions............ (0.29) (0.60) (0.68) (0.53)
-------- -------- -------- --------
Net asset value, end of period..... $ 11.22 $ 11.74 $ 10.79 $ 12.23
-------- -------- -------- --------
-------- -------- -------- --------
Total investment return (f) +..... (1.97)% 14.73% (6.27)% 6.4%
-------- -------- -------- --------
-------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 5,016 $ 5,992 $ 2,415 $ 974
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 5.17% 5.43% 5.53% 5.3%
Without reimbursement by LGT and
expense reductions ++........... 4.21% 3.87% 1.29% 3.4%
Without expenses assumed by LGT
(e) ++......................... --% --% --% (6.9)%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.00% 1.00% 0.38% 0.0%
Without reimbursement by LGT and
expense reductions ++........... 1.96% 2.56% 4.63% 1.9%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 12.3%
Portfolio turnover ++.............. 91% 186% 34% 81%
Average commission rate paid on
portfolio transactions............ N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE GROWTH & INCOME FUND
-----------------------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 14.57 $ 12.99 $ 13.77 $ 12.00
----------------- ----------------- ----------------- -----------------
Net investment income (loss)..... 0.30(a) 0.52(b) 0.46(c) 0.31(d)
Net realized and unrealized gain
(loss) on investments........... 0.23 $ 1.46 ($ 0.85) $ 1.79
----------------- ----------------- ----------------- -----------------
Net increase (decrease)
resulting from operations..... 0.53 1.98 (0.39) 2.10
----------------- ----------------- ----------------- -----------------
Distributions to shareholders:
From net investment income....... (0.20) (0.40) (0.39) (0.28)
From net realized gain on
investments..................... -- -- -- (0.05)
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- -- --
----------------- ----------------- ----------------- -----------------
Total distributions............ (0.20) (0.40) (0.39) (0.33)
----------------- ----------------- ----------------- -----------------
Net asset value, end of period..... $ 14.90 $ 14.57 $ 12.99 $ 13.77
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Total investment return (f) +..... 3.66% 15.49% (2.85)% 17.8%
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 30,757 $ 30,565 $ 25,580 $ 11,677
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 4.02% 3.87% 3.69% 3.2%
Without reimbursement by LGT and
expense reductions ++........... 3.92% 3.66% 3.45% 2.7%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 1.1%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.22% 1.23% 1.25% 0.6%
Without reimbursement by LGT and
expense reductions ++........... 1.32% 1.44% 1.49% 1.2%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 2.8%
Portfolio turnover ++.............. 51% 73% 53% 17%
Average commission rate paid on
portfolio transactions............ $ 0.0209 N/A N/A N/A
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE TELECOMMUNICATIONS FUND
-----------------------------------------------------------------------------
SIX MONTHS OCTOBER 18, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 16.87 $ 13.98 $ 13.07 $ 12.00
----------------- ----------------- ----------------- --------
Net investment income (loss)..... 0.00 0.02(b) 0.01(c) 0.04(d)
Net realized and unrealized gain
(loss) on investments........... 3.81 3.26 0.92 1.03
----------------- ----------------- ----------------- --------
Net increase (decrease)
resulting from operations..... 3.81 3.28 0.93 1.07
----------------- ----------------- ----------------- --------
Distributions to shareholders:
From net investment income....... (0.02) (0.03) (0.02) --
From net realized gain on
investments..................... (1.97) (0.36) -- --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- -- --
----------------- ----------------- ----------------- --------
Total distributions............ (1.99) (0.39) (0.02) --
----------------- ----------------- ----------------- --------
Net asset value, end of period..... $ 18.69 $ 16.87 $ 13.98 $ 13.07
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Total investment return (f) +..... 22.96% 23.66% 7.15% 8.9%
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 67,005 $ 50,778 $ 36,029 $ 7,903
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... (0.02)% 0.16% 0.31% 2.5%
Without reimbursement by LGT and
expense reductions ++........... (0.08)% 0.10% 0.07% 2.3%
Without expenses assumed by LGT
(e) ++......................... -- --% --% 1.6%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.13% 1.20% 1.25% 0.9%
Without reimbursement by LGT and
expense reductions ++........... 1.19% 1.26% 1.49% 1.1%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 1.8%
Portfolio turnover ++.............. 90% 70% 81% 20%
Average commission rate paid on
portfolio transactions............ $ 0.0059 N/A N/A N/A
</TABLE>
- ------------------------
(d) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.03 for the Variable Strategic Income Fund, $0.06 for
the Variable Global Government Income Fund, $0.19 for the Variable
U.S. Government Income Fund, $0.02 for the Variable Latin America
Fund, $0.05 for the Variable Growth & Income Fund, and $0.00 for the
Variable Telecommunications Fund (Note 2).
(e) During the period ended December 31, 1993, LGT Asset Management, Inc.
voluntarily assumed certain expenses for the Funds (Note 2).
(f) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of
these charges would reduce the total return figures for all periods
shown.
+ Not annualized for periods of less than one year.
++ Annualized for periods of less than one year.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F61
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------------
VARIABLE EMERGING MARKETS FUND
---------------------------------------------------------
SIX MONTHS JULY 5, 1994
ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 DECEMBER 31, 1994
----------------- ----------------- -----------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 10.88 $ 11.89 $ 12.00
----------------- -------- --------
Net investment income (loss)..... 0.11(a) 0.14(b) 0.07(c)
Net realized and unrealized gain
(loss) on investments........... 2.65 (1.04) (0.05)
----------------- -------- --------
Net increase (decrease)
resulting from operations..... 2.76 (0.90) 0.02
----------------- -------- --------
Distributions to shareholders:
From net investment income....... -- (0.09) (0.07)
From net realized gain on
investments..................... -- -- --
In excess of net realized gain on
investments..................... -- -- (0.06)
Return of capital................ -- (0.02) --
----------------- -------- --------
Total distributions............ -- (0.11) (0.13)
----------------- -------- --------
Net asset value, end of period..... $ 13.64 $ 10.88 $ 11.89
----------------- -------- --------
----------------- -------- --------
Total investment return (f) +..... 25.37% (7.54)% 0.12%
----------------- -------- --------
----------------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 16,559 $ 8,983 $ 7,267
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.92% 1.55% 4.10%
Without reimbursement by LGT and
expense reductions ++........... 1.21% 0.51% (0.20)%
Without expenses assumed by LGT
(e) ++......................... --% --% --%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.16% 1.18% 0.00%
Without reimbursement by LGT and
expense reductions ++........... 1.87% 2.22% 4.30%
Without expenses assumed by LGT
(e) ++......................... --% --% --%
Portfolio turnover ++.............. 252% 210% 117%
Average commission rate paid on
portfolio transactions............ $ 0.0037 N/A N/A
<CAPTION>
GT GLOBAL
-------------------------------------
VARIABLE INFRASTRUCTURE FUND
-------------------------------------
SIX MONTHS JANUARY 31, 1995
ENDED (COMMENCEMENT OF
JUNE 30, 1996 OPERATIONS) TO
(UNAUDITED) DECEMBER 31, 1995
----------------- -----------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 13.27 $ 12.00
----------------- -----------------
Net investment income (loss)..... 0.07(a) 0.07(b)
Net realized and unrealized gain
(loss) on investments........... 2.29 1.20
----------------- -----------------
Net increase (decrease)
resulting from operations..... 2.36 1.27
----------------- -----------------
Distributions to shareholders:
From net investment income....... -- --
From net realized gain on
investments..................... -- --
In excess of net realized gain on
investments..................... -- --
Return of capital................ -- --
----------------- -----------------
Total distributions............ -- --
----------------- -----------------
Net asset value, end of period..... $ 15.63 $ 13.27
----------------- -----------------
----------------- -----------------
Total investment return (f) +..... 17.78% 10.58%
----------------- -----------------
----------------- -----------------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 3,702 $ 1,594
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 2.03% 1.36%
Without reimbursement by LGT and
expense reductions ++........... (0.47)% (6.65)%
Without expenses assumed by LGT
(e) ++......................... --% --%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.23% 1.22%
Without reimbursement by LGT and
expense reductions ++........... 3.73% 8.57%
Without expenses assumed by LGT
(e) ++......................... --% --%
Portfolio turnover ++.............. 78% 38%
Average commission rate paid on
portfolio transactions............ $ 0.0213 N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE EUROPE FUND
-----------------------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 16.52 $ 15.22 $ 15.33 $ 12.00
----------------- ----------------- ----------------- --------
Net investment income (loss)..... 0.08(a) 0.18(b) 0.16(c) 0.05(d)
Net realized and unrealized gain
(loss) on investments........... 3.47 1.28 (0.25) 3.28
----------------- ----------------- ----------------- --------
Net increase (decrease)
resulting from operations..... 3.55 1.46 (0.09) 3.33
----------------- ----------------- ----------------- --------
Distributions to shareholders:
From net investment income....... (0.15) (0.16) -- --
From net realized gain on
investments..................... -- -- (0.02) --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- -- --
----------------- ----------------- ----------------- --------
Total distributions............ (0.15) (0.16) (0.02) --
----------------- ----------------- ----------------- --------
Net asset value, end of period..... $ 19.92 $ 16.52 $ 15.22 $ 15.33
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Total investment return (f) +..... 21.46% 9.66% (0.59)% 27.8%
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 21,377 $ 15,641 $ 15,020 $ 5,410
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.12% 1.12% 1.48% 1.1%
Without reimbursement by LGT and
expense reductions ++........... 0.79% 0.60% 1.07% 0.4%
Without expenses assumed by LGT
(e) ++......................... --% --% --% (2.8)%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.20% 1.20% 1.25% 0.7%
Without reimbursement by LGT and
expense reductions ++........... 1.53% 1.72% 1.66% 1.4%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 4.6%
Portfolio turnover ++.............. 123% 123% 61% 27%
Average commission rate paid on
portfolio transactions............ $ 0.0254 N/A N/A N/A
</TABLE>
- ------------------------
(a) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.03 for the Variable Emerging Markets Fund, $0.12 for
the Variable Infrastructure Fund, $0.09 for the Variable Natural
Resources Fund, $0.02 for the Variable New Pacific Fund, $0.03 for the
Variable Europe Fund, $0.00 for the Money Market Fund, and $0.09 for
the Variable International Fund.
(b) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.09 for the Variable Emerging Markets Fund, $0.42 for
the Variable Infrastructure Fund, $0.47 for the Variable Natural
Resources Fund, $0.01 for the Variable America Fund, $0.04 for the
Variable New Pacific Fund, $0.08 for the Variable Europe Fund, $0.00
for the Money Market Fund, and $0.22 for the Variable International
Fund (Note 2).
(c) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.07 for the Variable Emerging Markets Fund, $0.28 for
the Variable America Fund, $0.03 for the Variable New Pacific Fund,
$0.04 for the Variable Europe Fund, $0.00 for the Money Market Fund,
and $0.11 for the Variable International Fund (Note 2).
(d) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.10 for the Variable America Fund, $0.03 for the
Variable New Pacific Fund, $0.03 for the Variable Europe Fund, and
$0.01 for the Money Market Fund (Note 2).
(e) During the period ended December 31, 1993, LGT Asset Management, Inc.
voluntarily assumed certain expenses for the Funds (Note 2).
(f) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of
these charges would reduce the total return figures for all periods
shown.
The accompanying notes are an integral part of the financial statements.
F62
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------
VARIABLE NATURAL RESOURCES FUND
-------------------------------------
SIX MONTHS JANUARY 31, 1995
ENDED (COMMENCEMENT OF
JUNE 30, 1996 OPERATIONS) TO
(UNAUDITED) DECEMBER 31, 1995
----------------- -----------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 13.88 $ 12.00
----------------- --------
Net investment income (loss)..... (0.01) (a) 0.73(b)
Net realized and unrealized gain
(loss) on investments........... 3.63 1.91
----------------- --------
Net increase (decrease)
resulting from operations..... 3.62 2.64
----------------- --------
Distributions to shareholders:
From net investment income....... -- (0.71)
From net realized gain on
investments..................... -- --
In excess of net realized gain on
investments..................... -- (0.05)
Return of capital................ -- --
----------------- --------
Total distributions............ -- (0.76)
----------------- --------
Net asset value, end of period..... $ 17.50 $ 13.88
----------------- --------
----------------- --------
Total investment return (f) +..... 26.08% 22.20%
----------------- --------
----------------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 6,529 $ 1,365
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... (0.23)% 10.87%
Without reimbursement by LGT and
expense reductions ++........... (1.96)% 2.94%
Without expenses assumed by LGT
(e) ++......................... -- --%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.17% 1.14%
Without reimbursement by LGT and
expense reductions ++........... 2.90% 9.07%
Without expenses assumed by LGT
(e) ++......................... --% --%
Portfolio turnover ++.............. 196% 875%
Average commission rate paid on
portfolio transactions............ $ 0.0277 N/A
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE AMERICA FUND
-----------------------------------------------------------------------------
FEBRUARY 10, 1993
SIX MONTHS YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 19.46 $ 15.81 $ 13.75 $ 12.00
----------------- ----------------- ----------------- --------
Net investment income (loss)..... 0.12 0.21(b) 0.48(c) 1.11(d)
Net realized and unrealized gain
(loss) on investments........... 1.54 3.80 2.08 0.64
----------------- ----------------- ----------------- --------
Net increase (decrease)
resulting from operations..... 1.66 4.01 2.56 1.75
----------------- ----------------- ----------------- --------
Distributions to shareholders:
From net investment income....... (0.29) (0.07) (0.50) --
From net realized gain on
investments..................... (2.75) (0.29) -- --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- -- --
----------------- ----------------- ----------------- --------
Total distributions............ (3.04) (0.36) (0.50) --
----------------- ----------------- ----------------- --------
Net asset value, end of period..... $ 18.08 $ 19.46 $ 15.81 $ 13.75
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Total investment return (f) +..... 8.69% 25.37% 18.88% 14.7%
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 38,490 $ 37,643 $ 15,257 $ 1,700
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.10% 1.66% 1.83% 14.1%
Without reimbursement by LGT and
expense reductions ++........... 1.10% 1.60% 0.76% 12.8%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 7.6%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.00% 1.00% 0.98% 0.0%
Without reimbursement by LGT and
expense reductions ++........... 1.00% 1.06% 2.05% 1.3%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 6.5%
Portfolio turnover ++.............. 274% 79% 139% 831%
Average commission rate paid on
portfolio transactions............ $ 0.0528 N/A N/A N/A
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
VARIABLE NEW PACIFIC FUND
-----------------------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 13.92 $ 14.01 $ 16.07 $ 12.00
----------------- ----------------- ----------------- --------
Net investment income (loss)..... 0.06(a) 0.20(b) 0.08(c) 0.04(d)
Net realized and unrealized gain
(loss) on investments........... 2.53 (0.23) (2.08) 4.03
----------------- ----------------- ----------------- --------
Net increase (decrease)
resulting from operations..... 2.59 (0.03) (2.00) 4.07
----------------- ----------------- ----------------- --------
Distributions to shareholders:
From net investment income....... (0.19) (0.06) (0.06) --
From net realized gain on
investments..................... -- -- -- --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- -- --
----------------- ----------------- ----------------- --------
Total distributions............ (0.19) (0.06) (0.06) --
----------------- ----------------- ----------------- --------
Net asset value, end of period..... $ 16.32 $ 13.92 $ 14.01 $ 16.07
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Total investment return (f) +..... 18.62% (0.21)% (12.47)% 33.9%
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 30,526 $ 23,025 $ 19,391 $ 7,945
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.00% 1.27% 0.83% 0.9%
Without reimbursement by LGT and
expense reductions ++........... 0.69% 1.74% 0.48% 0.3%
Without expenses assumed by LGT
(e) ++......................... --% --% --% (2.0)%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.15% 1.14% 1.25% 0.6%
Without reimbursement by LGT and
expense reductions ++........... 1.46% 1.61% 1.60% 1.3%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 3.6%
Portfolio turnover ++.............. 96% 67% 30% 15%
Average commission rate paid on
portfolio transactions............ $ 0.0073 N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------
MONEY MARKET FUND
-----------------------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 1994 DECEMBER 31, 1993
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------- ----------------- ----------------- --------
Net investment income (loss)..... 0.02(a) 0.05(b) 0.03(c) 0.03(d)
Net realized and unrealized gain
(loss) on investments........... -- -- -- --
----------------- ----------------- ----------------- --------
Net increase (decrease)
resulting from operations..... 0.02 0.05 0.03 0.03
----------------- ----------------- ----------------- --------
Distributions to shareholders:
From net investment income....... (0.02) (0.05) (0.03) (0.03)
From net realized gain on
investments..................... -- -- -- --
In excess of net realized gain on
investments..................... -- -- -- --
Return of capital................ -- -- -- --
----------------- ----------------- ----------------- --------
Total distributions............ (0.02) (0.05) (0.03) (0.03)
----------------- ----------------- ----------------- --------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Total investment return (f) +..... 2.36% 5.26% 3.48% 2.6%
----------------- ----------------- ----------------- --------
----------------- ----------------- ----------------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 10,211 $ 14,891 $ 19,474 $ 3,775
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 4.70% 5.15% 3.70% 2.9%
Without reimbursement by LGT and
expense reductions ++........... 4.48% 4.85% 3.64% 2.1%
Without expenses assumed by LGT
(e) ++......................... --% --% --% (2.6)%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 0.75% 0.75% 0.75% 0.2%
Without reimbursement by LGT and
expense reductions ++........... 0.97% 1.05% 0.81% 1.0%
Without expenses assumed by LGT
(e) ++......................... --% --% --% 5.7%
Portfolio turnover ++.............. N/A N/A N/A N/A
Average commission rate paid on
portfolio transactions............ N/A N/A N/A N/A
<CAPTION>
GT GLOBAL
---------------------------------------------------------
VARIABLE INTERNATIONAL FUND
---------------------------------------------------------
SIX MONTHS JULY 5, 1994
ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, 1996 DECEMBER 31, OPERATIONS) TO
(UNAUDITED) 1995 DECEMBER 31, 1994
----------------- ----------------- -----------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 11.01 $ 11.25 $ 12.00
----------------- -------- --------
Net investment income (loss)..... 0.06(a) 0.09(b) 0.06(c)
Net realized and unrealized gain
(loss) on investments........... 0.57 (0.22) (0.76)
----------------- -------- --------
Net increase (decrease)
resulting from operations..... 0.63 (0.13) (0.70)
----------------- -------- --------
Distributions to shareholders:
From net investment income....... -- (0.09) (0.05)
From net realized gain on
investments..................... (0.04) (0.02) --
In excess of net realized gain on
investments..................... -- -- --
Return of capital................ -- -- --
----------------- -------- --------
Total distributions............ (0.04) (0.11) (0.05)
----------------- -------- --------
Net asset value, end of period..... $ 11.60 $ 11.01 $ 11.25
----------------- -------- --------
----------------- -------- --------
Total investment return (f) +..... 5.69% (1.14)% (5.81)%
----------------- -------- --------
----------------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 4,811 $ 3,663 $ 2,229
Ratio of net investment income
(loss) to average net assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.08% 0.93% 3.33%
Without reimbursement by LGT and
expense reductions ++........... (0.68)% (1.35)% (2.56)%
Without expenses assumed by LGT
(e) ++......................... --% --% --%
Ratio of expenses to average net
assets:
With reimbursement by LGT and
expense reductions (Notes 1, 2,
& 5) ++......................... 1.08% 1.25% 0.69%
Without reimbursement by LGT and
expense reductions ++........... 2.84% 3.53% 6.58%
Without expenses assumed by LGT
(e) ++......................... --% --% --%
Portfolio turnover ++.............. 96% 107% 17%
Average commission rate paid on
portfolio transactions............ $ 0.0158 N/A N/A
</TABLE>
- ------------------------
+ Not annualized for periods of less than one year.
++ Annualized for periods of less than one year.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F63
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES TO
FINANCIAL STATEMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Variable Investment Series and GT Global Variable Investment Trust
("Companies") were organized as Massachusetts business trusts on May 26, 1992
and September 17, 1992, respectively. The Companies are registered under the
Investment Company Act of 1940, as amended ("1940 Act") as open-end management
investment companies. The GT Global Variable Investment Series operates as a
series company currently issuing five classes of shares of beneficial interest:
GT Global Variable New Pacific Fund, GT Global Variable Europe Fund, GT Global
Variable America Fund, GT Global Variable International Fund and GT Global Money
Market Fund. GT Global Variable Investment Trust operates as a series company
currently issuing nine classes of shares of beneficial interest: GT Global
Variable Latin America Fund, GT Global Variable Growth & Income Fund, GT Global
Variable Strategic Income Fund, GT Global Variable Global Government Income
Fund, GT Global Variable U.S. Government Income Fund, GT Global Variable
Emerging Markets Fund, GT Global Variable Telecommunications Fund, GT Global
Variable Infrastructure Fund, and GT Global Variable Natural Resources Fund.
(The classes of shares of beneficial interest for the two companies are referred
to herein collectively as the "Funds.") Each of the Funds is classified as a
diversified management investment company; except for GT Global Variable Latin
America Fund, GT Global Variable Growth & Income Fund, GT Global Variable
Strategic Income Fund and GT Global Variable Global Government Income Fund,
which are each registered as a non-diversified management investment company
under the 1940 Act.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles, and
the financial statements may include certain estimates made by management.
(A) PORTFOLIO VALUATION
The Funds calculate the net asset value of and complete 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
ask 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.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by, or under the direction of, each of
the Companies' Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by, or under the direction of, the Companies' Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, and other assets and
liabilities are recorded in the books and records of the Funds 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 Funds do 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
Funds' books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and 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 Funds, it is the
Funds' policy to always receive, as collateral, United States 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 Funds
under each agreement at its maturity.
F64
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
LGT is responsible for determining that the value of these underlying securities
remains at least equal to the resale price.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Funds as an unrealized gain or loss. When the
Forward Contract is closed, the Funds record 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. Forward Contracts involve market risk in excess of the
amounts shown in the Funds' "Statements of Assets and Liabilities." The Funds
could be exposed to risk if the counterparties are unable to meet the terms of
the contracts or if the value of the currency changes unfavorably. The Funds 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 a 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 a 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. A Fund can write options only on a
covered basis, which, for a call, requires that the Fund hold the underlying
securities 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 Funds may use options to manage their
exposure to the stock or bond markets and to fluctuations in currency values or
interest rates.
The premium paid by a 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 a Fund has purchased expires on the stipulated
expiration date, the Fund would realize a loss in the amount of the cost of the
option. If a Fund enters into a closing sale transaction, the Fund would realize
a gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If a 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 a 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 a
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.
A Fund may use futures contracts to manage its exposure to the stock or bond
markets and to fluctuations in currency values or interest rates.
At June 30, 1996, the Variable Strategic Income Fund, the Variable Global
Government Income Fund, and the Variable Latin America Fund had segregated
securities valued at $506,780, $373,776 and $2,673,020, respectively, to cover
margin requirements on open futures contracts. The Variable Latin America Fund
also had segregated cash of $26,500 to cover margin requirements on its open
futures contracts.
(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 the collection of withholding tax rebate,
income is recorded net of all withholding tax with any rebate recorded when
received. A Fund may trade securities on other than normal settlement terms.
This may increase the risk if the other party to the transaction fails to
F65
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
deliver and causes the Fund to subsequently invest at less advantageous prices.
(H) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. For the
Money Market Fund, dividends are declared daily and paid monthly from net
investment income. The Variable Strategic Income Fund, Variable Global
Government Income Fund and Variable U.S. Government Income Fund declare and pay
dividends from net investment income, if any, monthly. The Variable Growth &
Income Fund declares and pays dividends from net investment income, if any,
quarterly. The Variable Latin America Fund, Variable Telecommunications Fund,
Variable New Pacific Fund, Variable Europe Fund, Variable Emerging Markets Fund,
Variable International Fund, Variable America Fund, Variable Infrastructure
Fund, and Variable Natural Resources Fund declare and pay dividends from net
investment income, if any, annually. With respect to each Fund, dividends from
net realized capital gains, if any, are normally declared and paid annually.
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.
(I) TAXES
It is the policy of the Funds to continue 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 Funds 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, and unrealized appreciation of securities held, or for
excise tax on income and capital gains. The following funds have capital loss
carryforwards:
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRES IN
GT GLOBAL FUNDS CARRYFORWARD YEAR
- ------------------------------------------------- --------------- -----------
<S> <C> <C>
Variable Strategic Income $ 3,286,925 2002
820,482 2003
Variable Global Government Income 1,174,971 2002
Variable Latin America 6,286,637 2003
Variable Growth and Income 221,353 2002
1,207,812 2003
Variable Emerging Markets 1,143,261 2003
Variable New Pacific 12,288 2001
430,871 2002
1,467,506 2003
Variable Europe 75,636 2002
758,843 2003
Variable International 271,119 2003
</TABLE>
(J) DEFERRED ORGANIZATIONAL EXPENSES
Costs incurred by GT Global Variable Investment Series and Trust in connection
with their organization, which aggregated $125,333 and $188,000, respectively,
are being amortized on a straight-line basis for a five year period. While LGT
has advanced certain of the Companies' organizational costs incurred to date,
the Companies may reimburse LGT for the amount of these advances. In the event
that LGT redeems any of the initial 2,083.333 shares of each of the Variable New
Pacific Fund, Variable Europe Fund and Variable America Fund; or the initial
25,000 shares of the Money Market Fund; or the initial 1,666.667 shares of each
of the Variable Strategic Income Fund, Variable Government Income Fund, Variable
U.S. Government Income Fund, Variable Latin America Fund and the Variable Growth
& Income Fund; or the initial 1.000 share of the Variable Telecommunications
Fund, within the five year amortization period, the respective Fund's
unamortized organizational expenses allocable to the shares redeemed will be
deducted from LGT's redemption proceeds.
(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 Funds' 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) INDEXED SECURITIES
The Funds 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.
(M) RESTRICTED SECURITIES
Certain of the Funds are permitted to invest in a limited amount of 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. At the end of
the period, restricted securities (excluding 144A issues) are shown at the end
of the Portfolio of Investments for each Fund, if any.
(N) SECURITIES PURCHASED ON A WHEN-ISSUED OR FORWARD COMMITMENT BASIS
The Fund may trade securities on a when-issued or forward commitment basis, with
payment and delivery scheduled for a future date. These transactions are subject
to market fluctuations and are subject to the risk that the value at delivery
may be less than the trade date purchase price. Although the Fund will generally
purchase these securities with the intention of acquiring such securities, they
may sell such securities before the settlement date. These securities, if any,
are identified on the accompanying Portfolio of Investments. The Variable
Strategic Income Fund had set aside liquid high grade debt securities valued at
$655,629 as collateral for these purchase commitments.
F66
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
(O) PORTFOLIO SECURITIES LOANED
At June 30, 1996, stocks with an aggregate value listed below were on loan to
brokers. The loans were secured by cash collateral received by the Fund:
<TABLE>
<CAPTION>
SIX MONTHS
JUNE 30, 1996 ENDED
---------------------------- JUNE 30, 1996
AGGREGATE VALUE CASH -------------
GT GLOBAL ON LOAN COLLATERAL FEES RECEIVED
- -------------------------------------------------- --------------- ---------- -------------
<S> <C> <C> <C>
Variable Strategic Income Fund.................... $1,960,992 $2,112,386 $ 931
Variable Global Government Income Fund............ 1,606,826 1,705,919 1,912
Variable U.S. Government Income Fund.............. -- -- --
Variable Latin America Fund....................... 543,363 639,900 4,739
Variable Growth and Income Fund................... 1,632,695 1,730,808 4,724
Variable Telecommunications Fund.................. 5,915,900 6,161,393 11,290
Variable Emerging Markets Fund.................... -- -- --
Variable Infrastructure Fund...................... 109,122 126,000 90
Variable Natural Resources Fund................... 162,250 166,100 18
Variable America Fund............................. 351,975 359,100 9
Variable New Pacific Fund......................... 1,171,115 1,301,803 4,008
Variable Europe Fund.............................. 440,360 470,075 2,143
Money Market Fund................................. -- -- --
Variable International Fund....................... 87,292 94,539 278
</TABLE>
For international securities, cash collateral is received by the Funds against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Funds against loaned securities in an amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. Fees received from
securities loaned were used to reduce the Funds' custodian fees.
2. RELATED PARTIES
LGT is the Funds' investment manager and administrator. For these services, the
Money Market Fund pays LGT an investment management and administration fee at
the annualized rate of 0.50% of that Fund's average daily net assets. The
Variable Strategic Income Fund, Variable Global Government Income Fund, Variable
U.S. Government Income Fund and Variable America Fund each pays LGT an
investment management and administration fee at the annualized rate of 0.75% of
the Fund's average daily net assets. The Variable Growth & Income Fund, Variable
Latin America Fund, Variable Telecommunications Fund, Variable New Pacific Fund,
Variable Emerging Markets Fund, Variable International Fund, Variable Europe
Fund, Variable Infrastructure Fund, and Variable Natural Resources Fund each
pays LGT an investment management and administration fee at the annualized rate
of 1.00% of its average daily net assets. All fees are computed daily and paid
monthly.
LGT has undertaken to limit the total operating expenses (exclusive of brokerage
commissions, interest, taxes and extraordinary items) of each of the Variable
New Pacific Fund, the Variable Europe Fund, the Variable Latin America Fund, the
Variable Telecommunications Fund, Variable Emerging Markets Fund, Variable
International Fund, Variable Infrastructure Fund, Variable Natural Resources
Fund, and the Variable Growth & Income Fund to 1.25% of their respective average
daily net assets. In addition, LGT has undertaken to limit the total operating
expenses (exclusive of brokerage commissions, interest, taxes and extraordinary
items) of each of the Variable Strategic Income Fund, the Variable Global
Government Income Fund, the Variable U.S. Government Income Fund, and the
Variable America Fund to 1.00% of their respective average daily net assets.
Likewise, LGT has undertaken to limit the total operating expenses (exclusive of
brokerage commissions, interest, taxes and extraordinary items) of the Money
Market Fund to .75% of its average daily net assets. From time to time, LGT in
its sole discretion may waive its fees and/or voluntarily assume certain Fund
expenses.
All general expenses of the Companies and joint expenses of the Funds are
allocated among the Funds on a basis deemed fair and equitable.
GT Global, Inc. ("GT Global"), an affiliate of LGT, is the Funds' distributor.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of LGT and GT
Global, is the Funds' transfer agent.
F67
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT Global is the principal underwriter of the Variable Annuity Contracts.
Underwriting commissions retained by GT Global are as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
GT GLOBAL JUNE 30, 1996
- -------------------------------------------------- -------------
<S> <C>
Variable Strategic Income Fund.................... $11,840
Variable Global Government Income Fund............ 2,917
Variable U.S. Government Income Fund.............. 3,012
Variable Latin America Fund....................... 7,213
Variable Growth & Income Fund..................... 7,548
Variable Telecommunications Fund.................. 26,200
Variable Emerging Markets Fund.................... 11,311
Variable Infrastructure Fund...................... 5,801
Variable Natural Resources Fund................... 9,446
Variable America Fund............................. 14,018
Variable New Pacific Fund......................... 12,223
Variable Europe Fund.............................. 3,831
Money Market Fund................................. 24,030
Variable International Fund....................... 1,931
</TABLE>
LGT is the pricing and accounting agent for the Funds. The monthly fee for these
services to LGT is a percentage, not to exceed 0.03% annually, of each of the
Funds' 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 Companies pay each of their Trustees who is not an employee, officer or
director of LGT, GT Global or GT Services $5,000 per year.
3. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities, other
than short-term investments, by Fund, for the period ended June 30, 1996:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------------------------
GT GLOBAL U.S. GOVERNMENT OTHER ISSUES
- -------------------------------------------------- --------------- ------------
<S> <C> <C>
Variable Strategic Income Fund.................... $ 6,455,173 $ 29,416,714
Variable Global Government Income Fund............ 2,976,149 9,684,271
Variable U.S. Government Income Fund.............. 2,599,622 --
Variable Latin America Fund....................... -- 14,548,386
Variable Growth & Income Fund..................... 1,074,539 6,464,207
Variable Telecommunications Fund.................. -- 26,116,000
Variable Emerging Markets Fund.................... -- 20,585,198
Variable Infrastructure Fund...................... 498,977 2,061,579
Variable Natural Resources Fund................... -- 7,880,597
Variable America Fund............................. -- 39,331,458
Variable New Pacific Fund......................... -- 12,663,949
Variable Europe Fund.............................. -- 12,759,407
Money Market Fund................................. -- --
Variable International Fund....................... -- 2,953,401
<CAPTION>
SALES
------------------------------
GT GLOBAL U.S. GOVERNMENT OTHER ISSUES
- -------------------------------------------------- --------------- ------------
<S> <C> <C>
Variable Strategic Income Fund.................... $ 6,626,701 $ 29,099,991
Variable Global Government Income Fund............ 2,708,438 10,546,036
Variable U.S. Government Income Fund.............. 1,891,797 --
Variable Latin America Fund....................... -- 9,449,971
Variable Growth & Income Fund..................... 1,632,971 6,006,963
Variable Telecommunications Fund.................. -- 23,738,360
Variable Emerging Markets Fund.................... -- 15,330,467
Variable Infrastructure Fund...................... -- 747,938
Variable Natural Resources Fund................... -- 3,738,857
Variable America Fund............................. -- 40,423,458
Variable New Pacific Fund......................... -- 12,055,309
Variable Europe Fund.............................. -- 10,595,663
Money Market Fund................................. -- --
Variable International Fund....................... -- 2,047,944
</TABLE>
F68
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
The Funds' written options activity for the period ended June 30, 1996, was as
follows:
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
COVERED CALL OPTIONS WRITTEN
<TABLE>
<CAPTION>
UNDERLYING
PRINCIPAL AMOUNT PREMIUMS
------------------- ---------
<S> <C> <C>
Options outstanding at December 31, 1995.......... $ -- $ --
Options written during the period ended June 30,
1996............................................. 308,000 7,700
Options cancelled in closing purchase
transactions..................................... -- --
Options expired prior to exercise................. (308,000) (7,700)
Options exercised................................. -- --
------------------- ---------
Options outstanding at June 30, 1996.............. $ -- $ --
------------------- ---------
------------------- ---------
</TABLE>
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
Funds were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 (UNAUDITED) DECEMBER 31, 1995
--------------------------- ---------------------------
GT GLOBAL VARIABLE STRATEGIC INCOME FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold....................................... 1,686,809 $ 20,327,427 1,985,281 $ 22,200,799
Shares issued in connection with reinvestment of
distributions.................................... 84,003 1,008,206 179,542 1,991,044
------------ ------------- ------------ -------------
1,770,812 21,335,633 2,164,823 24,191,843
Shares repurchased................................ (1,811,292) (21,737,831) (2,185,897) (24,283,139)
------------ ------------- ------------ -------------
Net decrease...................................... (40,480) $ (402,198) (21,074) $ (91,296)
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
Shares sold....................................... 155,893 $ 1,731,612 1,119,737 $ 11,927,543
Shares issued in connection with reinvestment of
distributions.................................... 30,269 336,582 64,913 722,395
------------ ------------- ------------ -------------
186,162 2,068,194 1,184,650 12,649,938
Shares repurchased................................ (278,747) (3,108,228) (1,054,689) (11,200,397)
------------ ------------- ------------ -------------
Net increase (decrease)........................... (92,585) $ (1,040,034) 129,961 $ 1,449,541
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
Shares sold....................................... 241,465 $ 2,754,436 1,824,240 $ 20,431,040
Shares issued in connection with reinvestment of
distributions.................................... 11,570 131,847 18,588 234,899
------------ ------------- ------------ -------------
253,035 2,886,283 1,842,828 20,665,939
Shares repurchased................................ (316,190) (3,634,195) (1,556,416) (17,459,191)
------------ ------------- ------------ -------------
Net increase (decrease)........................... (63,155) $ (747,912) 286,412 $ 3,206,748
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE LATIN AMERICA FUND
Shares sold....................................... 1,126,629 $ 15,233,475 2,569,344 $ 35,542,045
Shares issued in connection with reinvestment of
distributions.................................... 45,515 624,926 236,651 2,991,268
------------ ------------- ------------ -------------
1,172,144 15,858,401 2,805,995 38,533,313
Shares repurchased................................ (1,023,013) (13,868,046) (2,602,904) (36,198,875)
------------ ------------- ------------ -------------
Net increase...................................... 149,131 $ 1,990,355 203,091 $ 2,334,438
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE GROWTH & INCOME FUND
Shares sold....................................... 915,480 $ 13,500,329 776,808 $ 10,555,910
Shares issued in connection with reinvestment of
distributions.................................... 28,097 413,090 59,956 818,466
------------ ------------- ------------ -------------
943,577 13,913,419 836,764 11,374,376
Shares repurchased................................ (977,401) (14,428,545) (708,880) (9,669,648)
------------ ------------- ------------ -------------
Net increase (decrease)........................... (33,824) $ (515,126) 127,884 $ 1,704,728
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
F69
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 (UNAUDITED) DECEMBER 31, 1995
--------------------------- ---------------------------
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold....................................... 1,109,775 $ 21,065,919 1,453,558 $ 23,188,408
Shares issued in connection with reinvestment of
distributions.................................... 354,065 6,443,990 68,050 1,045,935
------------ ------------- ------------ -------------
1,463,840 27,509,909 1,521,608 24,234,343
Shares repurchased................................ (890,087) (16,562,636) (1,087,480) (17,197,275)
------------ ------------- ------------ -------------
Net increase...................................... 573,753 $ 10,947,273 434,128 $ 7,037,068
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE EMERGING MARKETS FUND
Shares sold....................................... 1,427,788 $ 18,032,770 1,173,549 $ 12,723,265
Shares issued in connection with reinvestment of
distributions.................................... -- -- 8,331 90,089
------------ ------------- ------------ -------------
1,427,788 18,032,770 1,181,880 12,813,354
Shares repurchased................................ (1,039,852) (13,220,357) (967,577) (10,519,830)
------------ ------------- ------------ -------------
Net increase...................................... 387,936 $ 4,812,413 214,303 $ 2,293,524
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
<CAPTION>
JANUARY 31, 1995 TO
DECEMBER 31, 1995
---------------------------
GT GLOBAL VARIABLE INFRASTRUCTURE FUND SHARES AMOUNT
------------ -------------
<S> <C> <C> <C> <C>
Shares sold....................................... 195,120 $ 2,904,472 174,610 $ 2,285,935
Shares repurchased................................ (78,399) (1,181,712) (62,813) (826,452)
------------ ------------- ------------ -------------
Net increase...................................... 116,721 $ 1,722,760 111,797 $ 1,459,483
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
Shares sold....................................... 732,540 $ 12,125,943 228,814 $ 3,086,623
Shares issued in connection with reinvestment of
distribution..................................... -- -- 4,976 67,477
------------ ------------- ------------ -------------
732,540 12,125,943 233,790 3,154,100
Shares repurchased................................ (457,880) (7,662,557) (143,765) (1,940,086)
------------ ------------- ------------ -------------
Net increase...................................... 274,660 $ 4,463,386 90,025 $ 1,214,014
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
<CAPTION>
YEAR ENDED
DECEMBER 31, 1995
---------------------------
GT GLOBAL VARIABLE AMERICA FUND SHARES AMOUNT
------------ -------------
<S> <C> <C> <C> <C>
Shares sold....................................... 1,438,566 $ 29,157,142 3,800,437 $ 72,967,274
Shares issued in connection with reinvestment of
distributions.................................... 305,305 5,458,858 31,220 606,288
------------ ------------- ------------ -------------
1,743,871 34,616,000 3,831,657 73,573,562
Shares repurchased................................ (1,549,957) (31,279,846) (2,862,326) (55,970,932)
------------ ------------- ------------ -------------
Net increase...................................... 193,914 $ 3,336,154 969,331 $ 17,602,630
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE NEW PACIFIC FUND
Shares sold....................................... 5,020,175 $ 78,270,780 7,058,585 $ 95,900,026
Shares issued in connection with reinvestment of
distributions.................................... 20,259 329,817 6,484 90,012
------------ ------------- ------------ -------------
5,040,434 78,600,597 7,065,069 95,990,038
Shares repurchased................................ (4,824,336) (75,657,299) (6,795,204) (92,832,446)
------------ ------------- ------------ -------------
Net increase...................................... 216,098 $ 2,943,298 269,865 $ 3,157,592
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE EUROPE FUND
Shares sold....................................... 1,756,041 $ 31,852,070 2,497,482 $ 39,741,019
Shares issued in connection with reinvestment of
distributions.................................... 7,876 155,793 9,965 154,451
------------ ------------- ------------ -------------
1,763,917 32,007,863 2,507,447 39,895,470
Shares repurchased................................ (1,637,601) (29,654,956) (2,547,574) (40,557,920)
------------ ------------- ------------ -------------
Net increase (decrease)........................... 126,316 $ 2,352,907 (40,127) $ (662,450)
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
F70
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 (UNAUDITED) DECEMBER 31, 1995
--------------------------- ---------------------------
GT GLOBAL MONEY MARKET FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold....................................... 127,989,230 $ 127,989,200 178,846,705 $ 178,851,599
Shares issued in connection with reinvestment of
distributions.................................... 343,099 343,099 823,767 818,843
------------ ------------- ------------ -------------
128,332,329 128,332,299 179,670,472 179,670,442
Shares repurchased................................ (133,011,502) (133,011,502) (184,253,572) (184,253,572)
------------ ------------- ------------ -------------
Net decrease...................................... (4,679,203) $ (4,679,173) (4,583,100) $ (4,583,130)
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
GT GLOBAL VARIABLE INTERNATIONAL FUND
Shares sold....................................... 555,204 $ 6,253,859 1,403,934 $ 14,984,693
Shares issued in connection with reinvestment of
distributions.................................... 1,276 14,683 3,283 35,810
------------ ------------- ------------ -------------
556,480 6,268,542 1,407,217 15,020,503
Shares repurchased................................ (474,122) (5,358,696) (1,272,826) (13,587,017)
------------ ------------- ------------ -------------
Net increase...................................... 82,358 $ 909,846 134,391 $ 1,433,486
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
5. EXPENSE REDUCTIONS
LGT has directed certain portfolio trades to brokers who paid a portion of the
Funds' expenses. The Funds' expenses were reduced as follows under these
arrangements:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
GT GLOBAL JUNE 30, 1996
- -------------------------------------------------- -------------
<S> <C>
Variable Strategic Income Fund.................... $ --
Variable Global Government Income Fund............ --
Variable U.S. Government Income Fund.............. --
Variable Latin America Fund....................... 9,954
Variable Growth & Income Fund..................... 472
Variable Telecommunications Fund.................. 7,013
Variable Emerging Markets Fund.................... 6,328
Variable Infrastructure Fund...................... 174
Variable Natural Resources Fund................... 1,499
Variable America Fund............................. 162
Variable New Pacific Fund......................... 9,762
Variable Europe Fund.............................. 2,666
Monet Market Fund................................. --
Variable International Fund....................... 3,533
</TABLE>
F71
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES
- --------------------------------------------------------------------------------
<PAGE>
[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
GT GLOBAL ALLOCATOR
VARSA60810MC
