<PAGE>
GT GLOBAL
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
WORLDWIDE
GROWTH FUND
SEMIANNUAL REPORT
JUNE 30, 1997
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Message from the
Chairman............. 1
Report from the Fund
Managers and Key
Portfolio Holdings... 2
Financial
Statements........... F1
The views of the Fund's manage-
ment as described in this report
are as of the date it was
written. Portfolio holdings and
allocations are as of June 30,
1997, unless otherwise noted.
Views, portfolio holdings and
allocations may have changed
subsequent to these dates.
</TABLE>
<PAGE>
MESSAGE FROM THE CHAIRMAN
Dear Investor,
This report is written in a style we hope you find enjoyable to read and easy
to understand. Our intention is to provide our shareholders with
meaningful information about the relative performance of GT Global Mutual
Funds. We think it is important to help investors develop a global
perspective about their investments, including developments in individual
economies around the world. Specifically, we address how macroeconomic and
political events within countries influence investment results and,
ultimately, Fund performance.
In this semiannual report, we describe our management process and offer
insights into the Fund's investment strategy. Companies and countries in
which the Fund invests are discussed, as well as issues pertinent to
decisions affecting the Funds. Biographical information on portfolio
managers' background and experience is also included, and through our
question and answer format, we make it possible for shareholders to be
included in the thought processes that form the basis of their investment
decisions. Additionally, we have included performance illustrations that show
the historical returns of a hypothetical investment and compare it to an
appropriate benchmark.
We make every effort to communicate as clearly as possible because we want
you, our shareholders, to have a useful understanding of what is happening
with your investments in GT Global Mutual Funds, and why.
We would also like to emphasize that today--as global investing continues to
become increasingly complex, information travels as quickly as a keystroke,
and critical decisions must be made within shorter time frames--prudent
advice, professional management, global diversification and investing for the
long term have never been more important.
As always, we appreciate and value our shareholders in GT Global Mutual Funds.
Sincerely,
/s/ William J. Guilfoyle
William J. Guilfoyle
CHAIRMAN OF THE BOARD AND PRESIDENT
GT GLOBAL MUTUAL FUNDS
1
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PERFORMANCE SUMMARY
[PHOTO]
INVESTMENT OBJECTIVE
The GT Global Worldwide Growth Fund seeks long-term growth of capital by
investing primarily in equity securities of companies in markets around the
world.
<TABLE>
<CAPTION>
GT GLOBAL WORLDWIDE
GROWTH FUND
CLASS A MSCI WORLD INDEX
- -------------------- ----------------
<S> <C>
6/9/1987
$9,525 $10,000
9,887 9,718
10,449 9,914
10,897 10,502
11,059 10,320
7,858 8,570
7,763 8,363
8,420 8,727
8,525 8,942
9,058 9,462
9,087 9,750
9,458 9,874
9,315 9,679
9,401 9,667
9,439 9,851
8,944 9,311
9,011 9,708
9,392 10,356
9,611 10,718
9,794 10,817
10,361 11,210
10,419 11,142
10,717 11,072
11,179 11,329
11,304 11,053
11,208 10,931
12,045 12,168
12,266 11,875
12,564 12,212
12,045 11,807
12,516 12,280
13,475 12,677
13,099 12,087
12,862 11,571
12,971 10,874
12,645 10,719
13,722 11,850
13,841 11,768
14,246 11,877
12,625 10,767
11,458 9,634
11,864 10,535
11,834 10,364
11,786 10,583
12,135 10,972
12,972 11,990
13,231 11,638
13,231 11,731
13,769 11,999
13,141 11,260
13,888 11,794
13,958 11,758
13,998 12,069
14,088 12,267
13,420 11,734
14,174 12,590
1/31/1992
14,224 12,359
14,617 12,148
14,305 11,578
14,576 11,741
15,030 12,211
14,566 11,804
14,415 11,836
14,133 12,126
13,720 12,017
14,033 11,694
14,274 11,905
14,637 12,004
14,971 12,046
15,032 12,334
15,790 13,051
15,881 13,658
16,488 13,975
16,306 13,860
16,721 14,148
17,672 14,799
17,621 14,528
18,086 14,930
17,237 14,088
18,672 14,780
19,602 15,757
18,896 15,556
17,774 14,888
18,116 15,351
18,020 15,393
17,667 15,353
18,127 15,647
19,024 16,121
18,565 15,701
18,629 16,150
17,870 15,452
17,430 15,605
16,285 15,374
16,117 15,601
16,229 16,356
16,958 16,929
17,127 17,077
17,733 17,075
18,878 17,933
18,878 17,537
19,416 18,051
19,024 17,770
19,203 18,390
19,388 18,931
19,687 19,277
19,583 19,398
19,929 19,725
20,275 20,192
20,194 20,213
20,252 20,319
19,468 19,604
20,056 19,834
20,494 20,614
20,552 20,761
21,359 21,929
21,506 21,581
21,686 21,845
21,210 22,100
21,068 21,666
21,480 22,378
22,497 23,764
6/30/1997
23,217 24,953
</TABLE>
The chart above shows the performance of the GT Global Worldwide Growth Fund,
Class A shares, since the Fund's inception versus the MSCI World Index. This
represents a cumulative return of 132.17% and an average annual total return
of 8.74% for the Fund. The chart assumes a hypothetical $10,000 initial
investment in the Fund's Class A shares and reflects all Fund expenses and
the maximum 4.75% sales charge. A $10,000 investment in the Fund's Class B
shares at inception on April 1, 1993, would have been valued at $14,045 on
June 30, 1997. This figure reflects all Fund expenses and the applicable
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years), assuming a complete redemption at the end of the period. A
$10,000 investment in Advisor Class shares at inception on June 1, 1995,
would have been worth $13,659 on June 30, 1997.
AVERAGE ANNUAL TOTAL RETURNS%(1)
JUNE 30, 1997
<TABLE>
<CAPTION>
Without Sales Charge(2) With Sales Charge
----------------------------------- ------------------------------
Share Class 1-Year 5-Year 10-Year LOF 1-Year 5-Year 10-Year LOF
- ----------------- ------ ------ ------- ----- ------ ------ ------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A(3) 14.64 9.77 8.91 9.26 9.20 8.71 8.38 8.74
Class B(3) 13.88 N/A N/A 8.69 8.88 N/A N/A 8.33
Advisor Class(4) 14.93 N/A N/A 16.15 N/A N/A N/A N/A
</TABLE>
HISTORICAL PERFORMANCE(2)
ANNUAL TOTAL RETURNS % (LAST 10 YEARS)
<TABLE>
<CAPTION>
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
------ ----- ----- ------ ----- ---- -------- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A -11.60 16.31 37.59 -12.53 20.26 3.27 27.56 -6.65 11.23 10.92
Class B N/A N/A N/A N/A N/A N/A 17.29(3) -7.32 10.52 10.16
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain distributions
at net asset value.
(2) Performance data do not reflect the maximum 4.75% sales charge and the
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years) for Class A and Class B shares, respectively, which, if
included, would have reduced performance quoted.
(3) The Fund began operations (Class A shares) on June 9, 1987; Class B shares
commenced on April 1, 1993.
(4) The Fund began offering Advisor Class shares on June 1, 1995. Advisor
Class shares are not sold directly to the general public and are only
available through certain employee benefit plans, financial institutions
and other entities that have entered into specific agreements with
GT Global. Please see the "Alternative Purchase Plan" section in the Fund's
prospectus.
The above data represent past performance of the Fund's shares, which does
not guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
2
<PAGE>
INTERVIEW WITH PORTFOLIO MANAGER
MICHAEL LINDSELL
Q HOW DID THE FUND PERFORM?
A The Fund's total return for the six months ended June 30, 1997, was
7.96% for Class A shares (2.83% including the maximum 4.75% sales charge);
total return for Class B shares was 7.64% (2.64% including the effect of the
maximum contingent deferred sales charge). During the same period, the Morgan
Stanley Capital International (MSCI) World Index(5) returned 15.62%.
Relative to the index, most of the Fund's underperformance was a result of our
decision to underweight the U.S. market because of what we perceived to be
already stretched valuations. Moreover, poor security selection in that market
weakened returns. In the UK, where the Fund held an overweighted position,
poor security selection also hindered performance. While we continue to find
UK companies attractive, over the six-month period the Fund suffered largely
as a result of its exposure to media companies whose disappointing performance
as a group was underpinned by Granada Group and Reuters.
On the other hand, the Fund's weighting to continental European countries
contributed positively to performance--in Switzerland, France and Italy, in
particular. As in the rest of the world, most continental bourses continued to
advance, thanks to a rally in bond markets, low inflation and signs of an
upturn in growth. Additionally, while we continued to invest cautiously in
Japan and were significantly underweighted relative to the index over the
period, the Fund benefited from security selection in this market.
Q WHAT COMPANIES IN PARTICULAR DID WELL FOR THE FUND?
A The most notable performer over the period was Brazil's Petrobras,
which enjoyed strong gains as a result of the rerating of the Brazilian market
and the belief that the company's oil reserves would be significantly
upgraded. Other companies that benefited the Fund include Ahold of the
Netherlands, Adecco and Novartis in Switzerland, Hong Kong's HSBC Holdings and
Sunbeam-Oster in the U.S. (which was sold off during the period).
Several disappointments were also prevalent. 3Com Corp in the U.S. did poorly
as investors became concerned about earnings due to the late shipment of its
latest 56K modem products. Additionally, Sola International underperformed
because of weakness in the quarterly sales of its optical lenses division.
Q WHICH OF THE DEVELOPED MARKETS STOOD OUT IN TERMS OF MARKET PERFORMANCE
OVER THE SIX MONTHS?
A In dollar terms the U.S., Switzerland and Spain were the three
best-performing developed stock markets. The U.S. and Swiss bourses have in
common a large number of corporations that are globally preeminent in their
respective fields, a corporate culture that is committed to shareholders
(which is, admittedly, far longer established in the U.S.) and corporate
earnings results that highlight how productivity is improving.
In the U.S., pre-tax corporate profit margins increased from 11.8% in 1996 to
12.0% by the end of March. Meanwhile, growth in GDP was revised upwards, to
5.9% for the first quarter. The second quarter brought together these and
other favorable developments that enabled the bull market to advance further.
Yields on long-dated Treasuries fell. Inflation dropped to a 10-year low.
President Clinton reached an agreement with the Republican-controlled
congress to balance the federal budget by the year 2002, and, contrary to the
expectations of many, the Federal Reserve decided not to raise interest rates.
The Swiss market enjoyed a robust run on the back of a fall in interest
rates, which dropped to their lowest level since 1979. Stock market strength
is also due to the benefits many larger corporations have enjoyed as a result
of mergers, de-mergers, wholesale restructuring and other measures taken over
the last two years to boost profitability.
The rise in Spanish share prices reflected the sizable fall in bond yields.
This was the result of the growing perception among investors that European
Monetary
Continued p.4
(5) The MSCI World Index is a market value-weighted average of the performance
of 1,554 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.
The index is unmanaged, not available for direct investment and does not
include the effects of sales charges and professional management fees.
3
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER -- CONTINUED
Union (EMU) will proceed on time in 1999 and that peripheral
countries such as Spain will participate.
Q WHAT FACTORS UNDERPIN YOUR RELATIVE OPTIMISM ON UK EQUITIES?
A We have been building up the Fund's exposure to the UK, and increasing
holdings in interest rate-sensitive stocks, in particular. Interest rates in
the UK remain relatively high compared to the rest of the region. The newly
independent Bank of England has lifted the base rate in two stages from,
6.25% to 6.75%, in reaction to the strength of the UK economy. This has
served to perpetuate a rise in the currency. While this is favorable for many
importers, it has crimped corporate earnings of the FTSE 100 (Financial Times
Index) stocks, 40% of whose earnings come from overseas.
Inflation, however, is likely to remain low, in our opinion, despite strong
growth. We feel investors are likely to recognize the attractive real rates
and purchase bonds. An increase in purchases could subsequently lead to a
lower discount rate applied to equity valuations. We would expect major banks
and insurers, in particular, to benefit from a fall in yields. We also like
selected asset managers and financial advisors, which we feel stand to
benefit from growth in the financial services industry. Additionally, key
players in the UK's media industry, currently undergoing a major realignment
of interests, and certain stocks with strong copyrights also appeal.
Q THE FUND IS OVERWEIGHTED IN HONG KONG RELATIVE TO THE INDEX. IN YOUR
OPINION, IS IT BUSINESS AS USUAL UNDER CHINESE RULE?
A We believe China's economy, rather than China's sovereignty, remains
the key factor for the Hong Kong stock market. After two difficult years in 1994
and 1995, the Chinese economy is accelerating again. Industrial production
was up 12% in the year to the end of April. During the first four months of
1997, China achieved a trade surplus of US$10 billion--this has contributed to
a rise in foreign exchange reserves from US$105 billion to US$115 billion.
All this is good news for Hong Kong-listed companies doing business in China.
We estimate that earnings per share growth for the entire stock market will
be about 13% over the next year. Presently priced on around 15x 1997
earnings, the market has already been rerated, but by no more than it was in
1991-92, which was the last time the Chinese economy underwent a major
cyclical upswing. The political risk is arguably less today than it was five
years ago.
There are several other positive developments. Inflation has dropped to about
2%; Chinese authorities are under pressure to lower interest rates further,
and residential and commercial property prices in Hong Kong have rebounded.
Additionally, the XV Congress of the Chinese Communist Party, which will take
place in September, could produce other constructive policy moves.
Q WHY DOES THE FUND MAINTAIN A SIGNIFICANT UNDERWEIGHTING TO JAPAN
RELATIVE TO THE INDEX?
A Despite the Nikkei's rise this year and a strengthening of the yen, our
outlook for significant sections of the Japanese stock market remains
pessimistic. While stock market investors seem to have been encouraged by
tentative signs of an economic recovery, we feel the market's advance may
have had more to do with distortions associated with the introduction of the
consumption tax in April. Meanwhile, as banks continued to struggle under the
massive burden of bad loans, add to this list of challenges the Big Bang, or
wholesale liberation of financial markets. This will increase competition and
crimp margins, which are already at low levels.
Japanese retail investors have the capacity to invest a tremendous amount of
money overseas. Almost two-thirds of total personal financial assets are held
in bank deposits that yield virtually nothing. So, under the deregulation of
foreign exchange laws, the ongoing liberalization of the pension fund
industry and the evolution of private banking in Japan, we would expect
capital outflows from Japan to accelerate significantly.
While conditions remain difficult for much of corporate Japan, we are finding
selective opportunities. We feel companies that can exploit major trends such
as the graying of Japan, beneficiaries of the long-term weakness of the yen,
companies entering new markets and businesses that can maintain pricing power
should continue to do well in this type of environment.
Continued p.5
4
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER -- CONTINUED
Q HOW IS ASSET ALLOCATION DONE ON A GLOBAL BASIS?
A Each of our economists in various regions around the world prepares
macroeconomic analyses that drive forecasts for top-down profits. These
forecasts are used to determine estimates for earnings and valuations.
Overlaying this foundation, the degree of over/underweighting will be
affected by stock opportunities, the risk profile of the Fund, and global
liquidity and sentiment.
Q WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF THE YEAR?
A Going forward, our general concern is that markets are quite highly
valued, and we are finding it increasingly difficult to identify value in
stocks. Some of the better value opportunities in the world, in our opinion,
include the UK and selected companies in the U.S. and Australasia. We have
reduced our weighting to continental European companies as they continue to
meet our price targets, and our current expectation is that our exposure to
Japan is likely to remain low.
ABOUT THE PORTFOLIO MANAGERS
ROGER YATES - Chief Investment Officer, International Equities, for Chancellor
LGT Asset Management. Previously, Mr. Yates was an Investment Manager at Morgan
Grenfell and Director of their UK pension fund business. Prior to that, he
worked for LGT Asset Management (London) for seven years, and was appointed a
director in 1986 and Chief Investment Officer for unit trusts in 1987. In 1994,
he rejoined LGT as Chief Investment Officer, United Kingdom and Europe, a
position he held until his recent promotion. He received a bachelor's degree
from Oxford University and completed postgraduate research at Reading
University.
MICHAEL LINDSELL - Head of investment strategy for Global Equities; Chief
Investment Officer, Japan, 1992-96. Previously, Mr. Lindsell was a director at
Warburg Asset Management from 1989 to 1992; Senior Fund Manager at Scimitar
Asset Management from 1985 to 1988; and Fund Manager, Lazard Brothers & Co. Ltd.
from 1982 to 1985. He received his B.Sc from Bristol University.
GEOGRAPHIC ALLOCATION OF NET ASSETS %
<TABLE>
<CAPTION>
1997 1996
JUNE 30 JUNE 30
------- -------
<S> <C> <C>
Australia 5.1 1.5
Brazil 2.3 --
Czech Republic 1.0 --
Denmark 1.2 --
Finland -- 0.8
France 2.8 6.4
Germany 2.1 5.6
Hong Kong 4.0 4.0
India -- 0.8
Italy 2.0 1.8
Japan 8.1 12.0
Korea 0.9 1.6
Mexico 1.3 1.3
Netherlands 3.6 4.4
New Zealand 3.5 0.8
Norway 0.7 0.6
Poland 0.9 --
Portugal 2.3 0.9
Singapore 0.9 3.0
Spain 1.0 2.8
Sweden 1.5 2.4
Switzerland 2.9 6.5
Thailand 0.7 2.2
United Kingdom 16.5 9.5
U.S., Short Term & Other 34.7 31.1
</TABLE>
SECTOR ALLOCATION OF NET ASSETS %
JUNE 30, 1997
<TABLE>
<S> <C>
Services 23.9
Finance 23.5
Health Care 7.9
Materials/Basic Industry 7.9
Technology 7.4
Capital Goods 7.0
Consumer Durables 6.7
Energy 5.5
Multi-Industry/Misc. 3.1
Consumer Non-Durables 2.6
Short Term & Other 4.5
</TABLE>
A complete listing of holdings and allocations may be found in the Financial
Statements section of this report.
5
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
KEY PORTFOLIO HOLDINGS
<TABLE>
<CAPTION>
% of
Country Net Assets
------- ----------
<S> <C> <C>
STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE) U.S. 2.4
A financial intermediary serving the education
credit market. The company purchases and services
student loans made under federally sponsored
student loan programs and provides other financial
and operational services to originators of such loans.
PETROLEO BRASILEIRO S.A . (PETROBRAS) Produces oil Brazil 2.3
and natural gas liquids. The company's main products
are oil products and fuel alcohol. Petrobras also
provides maritime freight services.
CITICORP Citicorp, the parent of Citibank, provides U.S. 2.3
a broad range of financial services in over 3,200
locations in 98 countries and territories throughout
the world.
BANKAMERICA CORP. Provides diverse financial products U.S. 2.2
and services. The company's banking subsidiaries operate
over 2,000 offices throughout the western United States.
It also operates corporate banking and business credit
offices in major U.S. cities and 36 countries.
TELECOM CORPORATION OF NEW ZEALAND LTD. Provides New Zealand 2.0
telecommunications services throughout New Zealand.
Services include local, national and international
telephone activities that offer cellular, paging and
data communications, and other services.
EMI GROUP PLC A music recording and retailing company. UK 1.9
The Company owns the Capitol, EMI and Virgin recorded
labels. EMI Group also sells recorded music through its
HMV stores and books at its Dillons chain.
FUTURIS CORP., LTD. Manufactures air conditioning and Australia 1.9
heating equipment for automotive manufacturers in
Australia. Futuris also produces brakes and related
products for the automotive and railway industries.
Through other operating companies, Futuris also
manufactures clay bricks and pavers, clay roofing tiles,
fine china tableware and distributes sporting goods.
INTEL CORP. Designs, manufactures and sells U.S. 1.9
microcomputer components and related products.
Intel sells its products worldwide.
COMPAQ COMPUTER CORP. Designs, develops, manufactures U.S. 1.9
and markets personal computers for professional users
and consumers. The company's products include portable,
desktop, laptop, notebook personal computers and servers
that are compatible with IBM and all standardized
applications software.
TEXTRON, INC. A global, multi-industry company with U.S. 1.9
operations in four business segments. The company
produces aircraft, automotive and industrial products
and also provides financial services.
</TABLE>
Source: Bloomberg, August 1997.
6
<PAGE>
GT GLOBAL
WORLDWIDE
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (23.9%)
Telecom Corporation of New Zealand Ltd. - ADR{\/} ......... NZ 80,000 $ 3,260,000 2.0
TELEPHONE NETWORKS
EMI Group PLC ............................................. UK 179,320 3,217,607 1.9
LEISURE & TOURISM
Federated Department Stores, Inc.-/- ...................... US 82,000 2,849,500 1.7
RETAILERS-APPAREL
Woolworths Ltd. ........................................... AUSL 813,000 2,668,692 1.6
RETAILERS-OTHER
Sears, Roebuck and Co. .................................... US 46,500 2,499,375 1.5
RETAILERS-OTHER
Koninklijke Ahold N.V. .................................... NETH 25,201 2,124,891 1.3
RETAILERS-FOOD
Telecel - Comunicacaoes Pessoais S.A.-/- .................. PORT 24,766 2,054,452 1.2
WIRELESS COMMUNICATIONS
EMAP PLC .................................................. UK 158,000 1,956,253 1.2
BROADCASTING & PUBLISHING
Stet Societa' Finanziaria Telefonica S.p.A. ............... ITLY 317,800 1,848,404 1.1
TELEPHONE NETWORKS
Portugal Telecom S.A. - Registered ........................ PORT 43,660 1,761,284 1.1
TELEPHONE NETWORKS
Reuters Holdings PLC ...................................... UK 166,000 1,749,842 1.1
BROADCASTING & PUBLISHING
Rentokil Group PLC ........................................ UK 478,000 1,679,567 1.0
CONSUMER SERVICES
Adecco - Bearer ........................................... SWTZ 4,283 1,641,108 1.0
CONSUMER SERVICES
Sol Melia S.A. ............................................ SPN 39,697 1,629,354 1.0
LEISURE & TOURISM
SPT Telecom-/- ............................................ CZCH 15,100 1,585,743 1.0
TELEPHONE NETWORKS
Granada Group PLC ......................................... UK 119,000 1,565,529 0.9
BROADCASTING & PUBLISHING
Telecom Italia Mobile S.p.A. .............................. ITLY 462,510 1,485,368 0.9
WIRELESS COMMUNICATIONS
DDI Corp. ................................................. JPN 200 1,477,471 0.9
WIRELESS COMMUNICATIONS
Elsevier N.V. ............................................. NETH 85,801 1,432,929 0.9
BROADCASTING & PUBLISHING
Aoyama Trading Co., Ltd. .................................. JPN 29,800 957,597 0.6
RETAILERS-APPAREL
Ezaki Glico ............................................... JPN 5,000 44,970 --
RETAILERS-FOOD
------------
39,489,936
------------
Finance (23.5%)
Student Loan Marketing Association ........................ US 31,700 4,025,901 2.4
OTHER FINANCIAL
Citicorp .................................................. US 31,500 3,797,719 2.3
BANKS-MONEY CENTER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
BankAmerica Corp. ......................................... US 55,400 $ 3,576,763 2.2
BANKS-SUPER REGIONAL
Travelers Group, Inc. ..................................... US 46,800 2,951,325 1.8
INSURANCE - MULTI-LINE
HSBC Holdings PLC ......................................... HK 89,600 2,694,893 1.6
BANKS-MONEY CENTER
Australia & New Zealand Banking Group Ltd. ................ AUSL 350,000 2,614,700 1.6
BANKS-REGIONAL
Barclays PLC .............................................. UK 122,000 2,421,715 1.5
BANKS-MONEY CENTER
Royal & Sun Alliance Insurance Group PLC .................. UK 300,000 2,213,156 1.3
INSURANCE - MULTI-LINE
Sparbanken Sverige AB "A" ................................. SWDN 91,720 2,039,013 1.2
BANKS-REGIONAL
Unidanmark AS "A" ......................................... DEN 36,100 2,027,418 1.2
BANKS-REGIONAL
Schroders PLC ............................................. UK 70,000 1,920,483 1.2
BANKS-MONEY CENTER
Lloyds TSB Group PLC ...................................... UK 165,000 1,692,590 1.0
BANKS-REGIONAL
United Overseas Bank Ltd. - Foreign ....................... SING 152,000 1,563,392 0.9
BANKS-MONEY CENTER
Nichiei Co., Ltd. ......................................... JPN 13,000 1,509,780 0.9
OTHER FINANCIAL
Bank Gdanski S.A. - GDR-/- {\/} ........................... POL 121,000 1,424,775 0.9
BANKS-REGIONAL
PSIL Bangkok Bank Co., Ltd. (Entitlement
Certificates){\/} ........................................ THAI 249,000 1,225,578 0.7
OTHER FINANCIAL
M & G Group PLC ........................................... UK 28,670 587,246 0.4
INVESTMENT MANAGEMENT
Kookmin Bank .............................................. KOR 18,524 348,722 0.2
BANKS-MONEY CENTER
Korea Exchange Bank ....................................... KOR 39,650 261,797 0.2
BANKS-MONEY CENTER
------------
38,896,966
------------
Health Care (7.9%)
Bristol Myers Squibb Co. .................................. US 37,200 3,013,200 1.8
PHARMACEUTICALS
Boston Scientific Corp.-/- ................................ US 37,400 2,297,763 1.4
MEDICAL TECHNOLOGY & SUPPLIES
Takeda Chemical Industries ................................ JPN 65,000 1,827,628 1.1
PHARMACEUTICALS
Novartis AG ............................................... SWTZ 1,055 1,684,824 1.0
PHARMACEUTICALS
Schering AG ............................................... GER 14,700 1,570,275 1.0
PHARMACEUTICALS
Roche Holding AG .......................................... SWTZ 161 1,454,673 0.9
PHARMACEUTICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Health Care (Continued)
Taisho Pharmaceuticals .................................... JPN 44,000 $ 1,187,216 0.7
PHARMACEUTICALS
M.L. Laboratories PLC-/- .................................. UK 10,791 28,752 --
PHARMACEUTICALS
------------
13,064,331
------------
Materials/Basic Industry (7.9%)
Hercules, Inc. ............................................ US 56,900 2,724,088 1.6
CHEMICALS
Monsanto Co. .............................................. US 53,700 2,312,456 1.4
CHEMICALS
Akzo Nobel N.V. ........................................... NETH 16,550 2,266,777 1.4
CHEMICALS
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 540,000 2,176,048 1.3
PAPER/PACKAGING
Fernz Corp., Ltd. ......................................... NZ 540,000 1,833,865 1.1
CHEMICALS
CRH PLC ................................................... UK 166,000 1,734,638 1.1
BUILDING MATERIALS & COMPONENTS
------------
13,047,872
------------
Technology (7.4%)
Intel Corp. ............................................... US 22,200 3,148,238 1.9
SEMICONDUCTORS
Compaq Computer Corp.-/- .................................. US 31,000 3,076,750 1.9
COMPUTERS & PERIPHERALS
Texas Instruments, Inc. ................................... US 30,800 2,589,125 1.6
SEMICONDUCTORS
Alcatel Alsthom Compagnie Generale d'Electricite .......... FR 16,900 2,115,302 1.3
TELECOM TECHNOLOGY
Group Axime-/- ............................................ FR 9,808 1,159,239 0.7
COMPUTERS & PERIPHERALS
------------
12,088,654
------------
Capital Goods (7.0%)
Textron, Inc. ............................................. US 46,200 3,066,525 1.9
AEROSPACE/DEFENSE
Waste Management, Inc. .................................... US 76,900 2,470,413 1.5
ENVIRONMENTAL
Smiths Industries PLC ..................................... UK 140,000 1,794,005 1.1
AEROSPACE/DEFENSE
SGL Carbon AG ............................................. GER 12,940 1,771,322 1.1
INDUSTRIAL COMPONENTS
Canon, Inc. ............................................... JPN 60,000 1,634,649 1.0
OFFICE EQUIPMENT
Premier Farnell PLC ....................................... UK 71,128 553,744 0.3
INDUSTRIAL COMPONENTS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Capital Goods (Continued)
Siebe PLC ................................................. UK 13,800 $ 233,715 0.1
INDUSTRIAL COMPONENTS
------------
11,524,373
------------
Consumer Durables (6.7%)
Futuris Corp., Ltd. ....................................... AUSL 2,000,000 3,214,609 1.9
AUTO PARTS
Ford Motor Co. ............................................ US 77,200 2,914,300 1.8
AUTOMOBILES
GKN PLC ................................................... UK 113,000 1,946,686 1.2
AUTO PARTS
Bridgestone Corp. ......................................... JPN 75,000 1,742,054 1.1
AUTO PARTS
Uny Co., Ltd. ............................................. JPN 60,000 1,173,594 0.7
APPLIANCES & HOUSEHOLD
------------
10,991,243
------------
Energy (5.5%)
Petroleo Brasileiro S.A. (Petrobras) - ADR{\/} ............ BRZL 138,200 3,800,500 2.3
GAS PRODUCTION & DISTRIBUTION
Shell Transport & Trading Co., PLC ........................ UK 294,000 2,004,879 1.2
OIL
Total S.A. "B" ............................................ FR 12,460 1,258,671 0.8
OIL
Petroleum Geo-Services ASA-/- ............................. NOR 23,520 1,132,744 0.7
ENERGY EQUIPMENT & SERVICES
Korea Electric Power Corp. ................................ KOR 26,000 777,652 0.5
ELECTRICAL & GAS UTILITIES
Yukong Ltd. ............................................... KOR 1,933 46,907 --
OIL
------------
9,021,353
------------
Multi-Industry/Miscellaneous (3.1%)
Shanghai Industrial Holdings Ltd. ......................... HK 381,000 2,370,553 1.4
MULTI-INDUSTRY
Hutchison Whampoa ......................................... HK 196,000 1,695,152 1.0
MULTI-INDUSTRY
Wrightson Ltd. ............................................ NZ 1,000,000 638,457 0.4
MULTI-INDUSTRY
Kinnevik AB "B" Free ...................................... SWDN 15,590 434,231 0.3
MULTI-INDUSTRY
------------
5,138,393
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (2.6%)
RJR Nabisco Holdings Corp. ................................ US 73,100 $ 2,412,300 1.5
TOBACCO
Amway Japan Ltd. .......................................... JPN 55,400 1,876,982 1.1
HOUSEHOLD PRODUCTS
------------
4,289,282
------------ -----
TOTAL EQUITY INVESTMENTS (cost $135,725,612) ................ 157,552,403 95.5
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $7,460,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $7,591,816,
including accrued interest). (cost $7,442,188) ........... 7,442,188 4.5
------------ -----
TOTAL INVESTMENTS (cost $143,167,800) * .................... 164,994,591 100.0
Other Assets and Liabilities ................................ 36,942 --
------------ -----
NET ASSETS .................................................. $165,031,533 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $143,546,467 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 24,449,937
Unrealized depreciation: (3,001,813)
-------------
Net unrealized appreciation: $ 21,448,124
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1997, 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>
Australia (AUSL/AUD) ................. 5.1 5.1
Brazil (BRZL/BRL) .................... 2.3 2.3
Czech Republic (CZCH/CSK) ............ 1.0 1.0
Denmark (DEN/DKK) .................... 1.2 1.2
France (FR/FRF) ...................... 2.8 2.8
Germany (GER/DEM) .................... 2.1 2.1
Hong Kong (HK/HKD) ................... 4.0 4.0
Italy (ITLY/ITL) ..................... 2.0 2.0
Japan (JPN/JPY) ...................... 8.1 8.1
Korea (KOR/KRW) ...................... 0.9 0.9
Mexico (MEX/MXN) ..................... 1.3 1.3
Netherlands (NETH/NLG) ............... 3.6 3.6
New Zealand (NZ/NZD) ................. 3.5 3.5
Norway (NOR/NOK) ..................... 0.7 0.7
Poland (POL/PLZ) ..................... 0.9 0.9
Portugal (PORT/PTE) .................. 2.3 2.3
Singapore (SING/SGD) ................. 0.9 0.9
Spain (SPN/ESP) ...................... 1.0 1.0
Sweden (SWDN/SEK) .................... 1.5 1.5
Switzerland (SWTZ/CHF) ............... 2.9 2.9
Thailand (THAI/THB) .................. 0.7 0.7
United Kingdom (UK/GBP) .............. 16.5 16.5
United States & Other (US/USD) ....... 30.2 4.5 34.7
------ ----- -----
Total ............................... 95.5 4.5 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $165,031,533.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1997 (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........................... 2,898,623 5.78200 08/06/97 $ 41,536
Japanese Yen............................ 2,738,003 125.33000 08/06/97 (250,569)
Japanese Yen............................ 2,811,096 122.35000 08/12/97 (197,284)
Japanese Yen............................ 2,637,051 122.25000 08/12/97 (183,063)
Swiss Francs............................ 2,556,877 1.43140 09/19/97 28,005
-------------- --------------
Total Contracts to Sell (Receivable
amount $13,080,275).................. 13,641,650 $ (561,375)
-------------- --------------
--------------
THE VALUE OF CONTRACTS TO SELL AS
PERCENTAGE OF NET ASSETS IS 8.27%.
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $143,167,800) (Note 1)................................. $164,994,591
Foreign currencies (cost $3,150,454)............................................................. 3,150,203
Receivable for securities sold................................................................... 571,805
Dividends and dividend withholding tax reclaims receivable....................................... 449,949
Receivable for Fund shares sold.................................................................. 62,767
Miscellaneous receivable......................................................................... 5,375
Cash held as collateral for securities loaned (Note 1)........................................... 16,022,391
------------
Total assets................................................................................... 185,257,081
------------
Liabilities:
Payable for securities purchased................................................................. 2,644,335
Payable for open forward foreign currency contracts (Note 1)..................................... 561,375
Payable for Fund shares repurchased.............................................................. 524,773
Payable for printing and postage expenses........................................................ 150,026
Payable for investment management and administration fees (Note 2)............................... 132,730
Payable for service and distribution expenses (Note 2)........................................... 74,558
Payable for transfer agent fees (Note 2)......................................................... 35,966
Payable for professional fees.................................................................... 32,005
Payable for custodian fees (Note 1).............................................................. 14,358
Payable for registration and filing fees......................................................... 14,261
Payable for Trustees' fees and expenses (Note 2)................................................. 6,794
Payable for fund accounting fees (Note 2)........................................................ 2,697
Other accrued expenses........................................................................... 9,279
Collateral for securities loaned (Note 1)........................................................ 16,022,391
------------
Total liabilities.............................................................................. 20,225,548
------------
Net assets......................................................................................... $165,031,533
------------
------------
Class A:
Net asset value and redemption price per share ($113,941,987 DIVIDED BY 6,314,869 shares
outstanding)...................................................................................... $ 18.04
------------
------------
Maximum offering price per share (100/95.25 of $18.04) *........................................... $ 18.94
------------
------------
Class B:+
Net asset value and offering price per share ($49,338,470 DIVIDED BY 2,823,538 shares
outstanding)...................................................................................... $ 17.47
------------
------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($1,751,076 DIVIDED BY
96,277 shares outstanding)........................................................................ $ 18.19
------------
------------
Net assets consist of:
Paid in capital (Note 4)......................................................................... $117,975,836
Undistributed net investment income.............................................................. 271,743
Accumulated net realized gain on investments and foreign currency transactions................... 25,494,886
Net unrealized depreciation on translation of assets and liabilities in foreign currencies....... (537,723)
Net unrealized appreciation of investments....................................................... 21,826,791
------------
Total -- representing net assets applicable to capital shares outstanding.......................... $165,031,533
------------
------------
<FN>
- --------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
STATEMENT OF OPERATIONS
Six months ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $168,427)................................ $ 1,596,796
Interest income............................................................................. 309,750
-----------
Total investment income................................................................... 1,906,546
-----------
Expenses:
Investment management and administration fees (Note 2)...................................... 811,187
Service and distribution expenses: (Note 2)
Class A...................................................................... $ 201,954
Class B...................................................................... 245,443 447,397
-----------
Transfer agent fees (Note 2)................................................................ 202,698
Custodian fees (Note 1)..................................................................... 66,867
Printing and postage expenses (Note 2)...................................................... 53,941
Registration and filing fees................................................................ 31,288
Audit fees.................................................................................. 23,518
Fund accounting fees........................................................................ 20,800
Legal fees.................................................................................. 17,456
Trustees' fees and expenses (Note 2)........................................................ 6,594
Other expenses (Note 1)..................................................................... 12,530
-----------
Total expenses before reductions.......................................................... 1,694,276
-----------
Expense reductions (Notes 1 & 5)........................................................ (59,473)
-----------
Total net expenses........................................................................ 1,634,803
-----------
Net investment income......................................................................... 271,743
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized gain on investments............................................... 16,608,059
Net realized gain on foreign currency transactions............................. 2,178,786
-----------
Net realized gain during the period....................................................... 18,786,845
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies......................................................... (1,033,510)
Net change in unrealized depreciation of investments........................... (5,363,255)
-----------
Net unrealized depreciation during the period............................................. (6,396,765)
-----------
Net realized and unrealized gain on investments and foreign currencies........................ 12,390,080
-----------
Net increase in net assets resulting from operations.......................................... $12,661,823
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
------------- -------------
<S> <C> <C>
Decrease in net assets
Operations:
Net investment income (loss).................................................. $ 271,743 $ (81,643)
Net realized gain on investments and foreign currency transactions............ 18,786,845 21,499,978
Net change in unrealized appreciation (depreciation) on translation of assets
and liabilities in foreign currencies........................................ (1,033,510) 111,081
Net change in unrealized depreciation of investments.......................... (5,363,255) (1,481,639)
------------- -------------
Net increase in net assets resulting from operations........................ 12,661,823 20,047,777
------------- -------------
Class A:
Distributions to shareholders: (Note 1)
From net realized gain on investments......................................... -- (13,087,564)
Class B:
Distributions to shareholders: (Note 1)
From net realized gain on investments......................................... -- (5,727,628)
Advisor Class:
Distributions to shareholders: (Note 1)
From net realized gain on investments......................................... -- (175,598)
------------- -------------
Total distributions......................................................... -- (18,990,790)
------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.............................. 92,390,016 290,210,249
Decrease from capital shares repurchased...................................... (120,840,149) (314,217,462)
------------- -------------
Net decrease from capital share transactions................................ (28,450,133) (24,007,213)
------------- -------------
Total decrease in net assets.................................................... (15,788,310) (22,950,226)
Net assets:
Beginning of period........................................................... 180,819,843 203,770,069
------------- -------------
End of period *............................................................... $165,031,533 $180,819,843
------------- -------------
------------- -------------
* Includes undistributed net investment income of.............................. $ 271,743 $ --
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
---------------------------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1997 ------------------------------------------------------------------------
(UNAUDITED) (D) 1996 (D) 1995 (D) 1994 1993 (D) 1992
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.71 $ 16.82 $ 15.53 $ 17.47 $ 14.47 $ 14.07
------------ ------------ ------------ ------------ ------------ ------------
Income from investment operations:
Net investment income (loss).......... 0.04 0.03 -- -- 0.04 0.07
Net realized and unrealized gain
(loss) on investments................ 1.29 1.79 1.74 (1.16) 3.92 0.39
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) from
investment operations.............. 1.33 1.82 1.74 (1.16) 3.96 0.46
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (1.93) (0.45) (0.78) (0.96) (0.06)
------------ ------------ ------------ ------------ ------------ ------------
Total distributions................. -- (1.93) (0.45) (0.78) (0.96) (0.06)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period.......... $ 18.04 $ 16.71 $ 16.82 $ 15.53 $ 17.47 $ 14.47
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Total investment return (c)............. 7.96% (b) 10.92% 11.23% (6.65)% 27.6% 3.3%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $113,942 $125,556 $145,982 $182,467 $193,997 $141,310
Ratio of net investment income (loss) to
average net assets..................... 0.51% (a) 0.14% (0.06)% (0.01)% 0.9% 0.5%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.78% (a) 1.72% 1.87% 1.81% 1.9% 2.1%
Without expense reductions............ 1.85% (a) 1.80% 1.93% 1.84% --* --*
Portfolio turnover rate++++............. 121% (a) 80% 113% 86% 92% 95%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0296 $ 0.0263 N/A N/A N/A N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++
------------------------------------------------------------------------
SIX MONTHS APRIL 1,
ENDED 1993
JUNE 30, YEAR ENDED DECEMBER 31, TO
1997 ------------------------------------------ DECEMBER 31,
(UNAUDITED) (D) 1996 (D) 1995 (D) 1994 1993 (D)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.23 $ 16.50 $ 15.34 $ 17.39 $ 15.67
------------ ------------ ------------ ------------ ------------
Income from investment operations:
Net investment income (loss).......... (0.01) (0.09) (0.12) (0.11) (0.04)
Net realized and unrealized gain
(loss) on investments................ 1.25 1.75 1.73 (1.16) 2.72
------------ ------------ ------------ ------------ ------------
Net increase (decrease) from
investment operations.............. 1.24 1.66 1.61 (1.27) 2.68
------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (1.93) (0.45) (0.78) (0.96)
------------ ------------ ------------ ------------ ------------
Total distributions................. -- (1.93) (0.45) (0.78) (0.96)
------------ ------------ ------------ ------------ ------------
Net asset value, end of period.......... $ 17.47 $ 16.23 $ 16.50 $ 15.34 $ 17.39
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return (c)............. 7.64% (b) 10.16% 10.52% (7.32)% 17.3% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 49,338 $ 52,809 $ 56,095 $ 52,567 $ 20,592
Ratio of net investment income (loss) to
average net assets..................... (0.14)% (a) (0.51)% (0.71)% (0.66)% (0.4)% (a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.43% (a) 2.37% 2.52% 2.46% 2.5% (a)
Without expense reductions............ 2.50% (a) 2.45% 2.58% 2.49% --*
Portfolio turnover rate++++............. 121% (a) 80% 113% 86% 92%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0296 $ 0.0263 N/A N/A N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR CLASS+++
------------------------------------------
SIX MONTHS
ENDED JUNE 1, 1995
JUNE 30, YEAR ENDED TO
1997 DECEMBER 31, DECEMBER 31,
(UNAUDITED) (D) 1996 (D) 1995 (D)
------------ ------------ ------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.81 $ 16.86 $ 15.26
------------ ------------ ------------
Income from investment operations:
Net investment income (loss).......... 0.08 0.09 0.03
Net realized and unrealized gain
(loss) on investments................ 1.30 1.79 2.02
------------ ------------ ------------
Net increase (decrease) from
investment operations.............. 1.38 1.88 2.05
------------ ------------ ------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (1.93) (0.45)
------------ ------------ ------------
Total distributions................. -- (1.93) (0.45)
------------ ------------ ------------
Net asset value, end of period.......... $ 18.19 $ 16.81 $ 16.86
------------ ------------ ------------
------------ ------------ ------------
Total investment return (c)............. 8.15% (b) 11.31% 13.46% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 1,751 $ 2,455 $ 1,693
Ratio of net investment income (loss) to
average net assets..................... 0.86% (a) 0.49% 0.29% (a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.43% (a) 1.37% 1.52% (a)
Without expense reductions............ 1.50% (a) 1.45% 1.58% (a)
Portfolio turnover rate++++............. 121% (a) 80% 113%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0296 $ 0.0263 N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Worldwide Growth Fund ("Fund"), is a separate series of GT Global
Growth Series ("Company"). The Company is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended
("1940 Act"), as an open-end management investment company. The Company has
eight diversified series of shares in operation, each series corresponding to a
distinct portfolio of investments.
The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the Fund are allocated on a pro rata basis to each class based on
the relative net assets of each class to the total net assets of the Fund. Each
class of shares differs in its respective distribution expenses, and may differ
in its transfer agent, registration, and certain other class-specific fees and
expenses.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles, and
the financial statements may include certain estimates from management.
(A) PORTFOLIO VALUATION
The Fund calculates the net asset value of Fund shares and completes orders to
purchase, exchange or repurchase Fund shares on each business day, with the
exception of those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded or on the principal over-the-counter market in which
such securities are traded, as of the close of business on the day the
securities are being valued, or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by Chancellor LGT Asset
Management, Inc. (the "Manager") to be the primary market.
Fixed income investments are valued at the mean of representative quoted bid and
asked prices for such investments or, if such prices are not available, at
prices for investments of comparative maturity, quality and type; however, when
the Manager deems it appropriate, prices obtained for the day of valuation from
a bond pricing service will be used. Short-term investments with a maturity of
60 days or less are valued to amortized cost, adjusted for foreign exchange
translation and market fluctuation, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Fund's Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, other assets and liabilities
are recorded in the books and records of the Fund after translation to U.S.
dollars based on the exchange rates on that day. The cost of each security is
determined using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains and losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, U.S. government securities or other
high quality debt securities of which the value, including accrued interest, is
at least equal to the amount to be repaid to the Fund under each agreement at
its maturity.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
Forward Contract is closed, the Fund records a realized gain or loss equal to
the difference between the value at the time it was opened and the value at the
time it was closed. The Fund could be exposed to risk if a counterparty is
unable to meet the terms of a contract or if the value of the currency changes
unfavorably. The Fund may enter into Forward Contracts in connection with
planned purchases or sales of securities, or to hedge against adverse
fluctuations in exchange rates between currencies.
F13
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
(E) OPTION ACCOUNTING PRINCIPLES
When the Fund writes a call or put option, an amount equal to the premium
received is included in the Fund's "Statement of Assets and Liabilities" as an
asset and an equivalent liability. The amount of the liability is subsequently
market-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers, unless a quotation from only one
broker is available, in which case only that broker's price will be used. If an
option expires on its stipulated expiration date or if the Fund enters into a
closing purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. The Fund can write options only on
a covered basis, which, for a call, requires that the Fund hold the underlying
security, and, for a put, requires the Fund to set aside cash, U.S. government
securities or other liquid securities in an amount not less than the exercise
price or otherwise provide adequate cover at all times while the put option is
outstanding. The Fund may use options to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other than normal settlement terms. This may increase the risk if
the other party to the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At June 30, 1997, stocks with an aggregate value of approximately $15,276,943
were on loan to brokers. The loans were secured by cash collateral of
$16,022,391, received by the Fund. Cash collateral is received by the Fund
against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For the period ended June 30, 1997,
the Fund received securities lending fees of $57,131 which were used to reduce
the Fund's custodian and administrative expenses.
(I) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, or excise tax on income
and capital gains.
(J) DISTRIBUTION TO SHAREHOLDERS
Distribution to shareholders are recorded by the Fund on the ex-date. Income and
capital gain distributions are determined in accordance with Federal income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments in emerging market
countries may involve greater risks than
F14
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
investments in more developed markets, and the prices of such investments may be
volatile. These risks of investing in foreign and emerging markets may include
foreign currency exchange rate fluctuations, perceived credit risk, adverse
political and economic developments and possible adverse foreign government
intervention.
(L) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed restricted securities. These
securities may be resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.
(M) INDEXED SECURITIES
The Fund may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.
(N) LINE OF CREDIT
The Fund, along with certain other funds advised by the Manager, has a line of
credit with BankBoston and State Street Bank. The arrangements with the banks
allow the Fund to borrow an aggregate maximum amount of $200,000,000. The Fund
is limited to borrowing up to 33 1/3% of the value of the Fund's total assets.
For the period ended June 30, 1997, the weighted average outstanding daily
balance of bank loans (based on the number of days the loans were outstanding)
was $2,000,000 with a weighted average interest rate of 6.44%. Interest expense
for the period ended June 30, 1997, was $1,431, included in "Other expenses" on
the Statement of Operations.
2. RELATED PARTIES
Chancellor LGT Asset Management is the Fund's investment manager and
administrator. The Fund pays investment management and administration fees at
the following annualized rates: 0.975% on the first $500 million of the average
daily net assets of the Fund; 0.95% on the next $500 million; 0.925% on the next
$500 million and 0.90% on amounts thereafter. These fees are computed daily and
paid monthly, and are subject to reduction in any year to the extent that the
Fund's expenses (exclusive of brokerage commissions, taxes, interest,
distribution-related expenses and extraordinary expenses) exceed the most
stringent limits prescribed by the laws or regulations of any state in which the
Fund's shares are offered for sale, based on the average total net asset value
of the Fund.
GT Global, Inc., an affiliate of the Manager, serves as the Fund's distributor.
The Fund offers Class A, Class B, and Advisor Class shares for purchase.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. GT Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the period ended June 30, 1997, GT Global retained $5,184 of
such sales charges. Purchases of Class A shares exceeding $500,000 may be
subject to a contingent deferred sales charge ("CDSC") upon redemption, in
accordance with the Fund's current prospectus. GT Global collected CDSCs in the
amount of $6,207 for the period ended June 30, 1997. GT Global also makes
ongoing shareholder servicing and trail commission payments to dealers whose
clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, GT Global from its own resources pays commissions to dealers through which
the sales are made. Certain redemptions of Class B shares made within six years
of purchase are subject to CDSC's, in accordance with the Fund's current
prospectus. During the period ended June 30, 1997, GT Global collected CDSC's in
the amount of $152,234. In addition, GT Global makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class B
shares.
Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Trustees has
adopted separate distribution plans with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may pay GT Global a distribution fee at the annualized
rate of up to 0.35% of the average daily net assets of the Fund's Class A
shares, less any amounts paid by the Fund as the aforementioned service fee, for
its expenditures incurred in providing services as distributor. All expenses for
which GT Global is reimbursed under the Class A Plan will have been incurred
within one year of such reimbursement.
Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may pay GT Global a distribution fee at the annualized
rate of up to 0.75% of the average daily net assets of the Fund's Class B shares
for its expenditures incurred in providing services as distributor. Expenses
incurred under the Class B Plan in excess of 1.00% annually may be carried
forward for reimbursement in subsequent years as long as that Plan continues in
effect.
The Manager and GT Global have voluntarily undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest and extraordinary
items) to the maximum annual level of 2.25%, and 2.90%, and 1.90% of the average
daily net assets of the Fund's Class A, Class B and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by the
Manager of investment management and administration fees, waivers by GT Global
of payments under the Class A Plan and/or Class B Plan and/or reimbursements by
the Manager or GT Global of portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and GT Global, is the transfer agent of the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT Services receives
an annual maintenance fee of $17.50 per account, a new account fee of $4.00 per
account, a per transaction fee of $1.75 for all transactions other than
exchanges and
F15
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
a per exchange fee of $2.25. GT Services also is reimbursed by the Fund for its
out-of-pocket expenses for such items as postage, forms, telephone charges,
stationery and office supplies.
The Manager is the pricing and accounting agent for the Fund. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of the Fund's average daily net assets. The annual fee rate is derived by
applying 0.03% to the first $5 billion of assets of all registered mutual funds
advised by the Manager and 0.02% to the assets in excess of $5 billion and
allocating the result according to the Fund's average daily net assets.
The Company pays each of its Trustees who is not an employee, officer or
director of GT Capital, GT Global or GT Services $5,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Trustee.
3. PURCHASES AND SALES OF SECURITIES
For the period ended June 30, 1997, purchases and sales of investment securities
by the Fund, other than U.S. government obligations and short-term investments,
aggregated $92,331,038 and $109,021,491, respectively. There were no purchases
or sales of U.S. government obligations by the Fund during the period.
4. CAPITAL SHARES
At June 30, 1997, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the Fund
were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
----------------------------------- ------------------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- --------------- ------------------ ---------------- ------------------
<S> <C> <C> <C> <C>
Shares sold............................. 5,100,754 $ 85,559,514 14,357,786 $ 250,471,583
Shares issued in connection with
reinvestment of distributions......... -- -- 670,053 11,082,654
--------------- ------------------ ---------------- ------------------
5,100,754 85,559,514 15,027,839 261,554,237
Shares repurchased...................... (6,300,816) (105,925,200) (16,192,391) (283,412,820)
--------------- ------------------ ---------------- ------------------
Net decrease............................ (1,200,062) $ (20,365,686) (1,164,552) $ (21,858,583)
--------------- ------------------ ---------------- ------------------
--------------- ------------------ ---------------- ------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
----------------------------------- ------------------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- --------------- ------------------ ---------------- ------------------
<S> <C> <C> <C> <C>
Shares sold............................. 313,415 $ 5,102,965 854,412 $ 14,531,361
Shares issued in connection with
reinvestment of distributions......... -- -- 308,538 4,961,416
--------------- ------------------ ---------------- ------------------
313,415 5,102,965 1,162,950 19,492,777
Shares repurchased...................... (743,255) (12,235,205) (1,309,880) (22,330,821)
--------------- ------------------ ---------------- ------------------
Net decrease............................ (429,840) $ (7,132,240) (146,930) $ (2,838,044)
--------------- ------------------ ---------------- ------------------
--------------- ------------------ ---------------- ------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
----------------------------------- ------------------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- --------------- ------------------ ---------------- ------------------
<S> <C> <C> <C> <C>
Shares sold............................. 102,327 $ 1,727,537 521,049 $ 8,987,637
Shares issued in connection with
reinvestment of distributions......... -- -- 10,546 175,598
--------------- ------------------ ---------------- ------------------
102,327 1,727,537 531,595 9,163,235
Shares repurchased...................... (152,050) (2,679,744) (485,979) (8,473,821)
--------------- ------------------ ---------------- ------------------
Net increase/(decrease)................. (49,723) $ (952,207) 45,616 $ 689,414
--------------- ------------------ ---------------- ------------------
--------------- ------------------ ---------------- ------------------
</TABLE>
5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the period ended June 30, 1997, the Fund's expenses
were reduced by $2,342 under these arrangements.
F16
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
GT GLOBAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
FUNDS, PLEASE CONTACT YOUR INVESTMENT ADVISOR OR CALL GT GLOBAL DIRECTLY AT
1-800-824-1580. THE PROSPECTUS CONTAINS MORE COMPLETE INFORMATION, INCLUDING
CHARGES, EXPENSES AND THE RISKS OF GLOBAL AND EMERGING MARKET INVESTING.
INVESTORS SHOULD READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL FUNDS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Focuses on worldwide opportunities from the demand for consumer products and
services
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA MID CAP GROWTH FUND
Concentrates on medium-sized companies in the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government securities
from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
GT GLOBAL FLOATING RATE FUND
Invests primarily in senior secured floating rate loans that have the potential
to achieve a high level of current income
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
[LOGO]
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
GT GLOBAL WORLDWIDE GROWTH FUND
WORSR708027M
