<PAGE>
GT GLOBAL
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
NEW PACIFIC
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 NEW PACIFIC GROWTH FUND
PERFORMANCE SUMMARY
Investment Objective
The GT Global New Pacific Growth Fund seeks long-term growth of capital
primarily through a portfolio of investments in the equity markets of
the Asian Pacific Rim, excluding Japan.
Japan was eliminated from the Fund's Primary Investment Area on
January 21, 1994.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL NEW PACIFIC GROWTH FUND CLASS A MSCI PACIFIC EX-JAPAN INDEX
<S> <C> <C>
1/19/77 9525 10000
9525 9994
9630 9760
9687 9958
9630 10052
9658 10220
9944 10295
9573 9879
9782 9717
10058 9602
10363 9985
10535 9897
10706 10343
10735 10055
11087 9805
12410 10533
12247 11001
12314 11465
13895 12395
15245 13114
15776 14619
16441 14340
17049 14561
15573 12369
16190 12824
15930 13735
15429 13693
15208 13922
14194 13706
13817 14198
13763 13832
13569 14578
13914 15604
13881 17216
12425 16841
11778 17261
12641 19508
12781 22324
11994 22753
11306 18862
12087 20660
13047 22880
13940 25335
13717 26369
14387 27937
15324 28480
15994 32113
15905 31374
17143 31505
18036 30842
17646 29899
18109 30525
19026 31056
19898 32411
20838 32862
19764 29609
19294 27990
17001 23883
17650 23677
18892 27091
18903 26628
18332 25058
16767 22313
15741 20937
17335 23576
17605 24167
16207 21638
15876 20322
15104 19361
14601 18867
14442 18085
15766 17834
16967 19122
16685 21059
17114 21523
17556 20935
18090 22918
18949 22680
19443 22805
20250 24147
20602 24009
20537 23116
20654 23482
21500 24606
23283 25664
24194 27047
24363 26105
25605 26258
24940 26241
21428 23046
20683 22327
19526 22034
21787 23814
21907 23800
22559 23874
22719 24329
22586 23806
23211 25585
22359 24333
22491 24634
22603 25040
22813 25917
22379 25578
22995 28221
22925 27237
23821 28075
25122 29263
25234 28210
24689 27922
25472 29489
27110 28782
30078 29707
31898 32328
32752 32655
35553 31319
40874 29529
44458 31615
43380 33557
38283 38478
39851 38624
41952 41441
41882 42639
2/28/87 43576 48205
46870 49784
48192 50979
50913 54583
50676 56845
53673 62936
54935 66816
56079 69436
42690 39198
39768 40871
44356 43180
45152 42763
46314 42584
50169 47744
52799 50069
51943 53623
52249 54572
53686 56785
51331 53723
51209 52817
52677 56302
54054 56075
54649 56379
58369 62282
59995 57473
61933 58460
64153 60418
64684 57695
63434 55343
68811 60330
71218 62951
75845 64710
73094 62538
76783 62611
80947 65390
79663 64990
78058 64167
76774 63341
73950 60079
80947 65777
82744 67865
85954 71505
77288 66052
69777 60014
74848 59275
72216 58752
72075 58755
74394 62285
80872 68234
82645 69913
83122 72275
83872 72539
82099 72262
84349 76475
80122 75523
82781 76311
84827 79169
80394 78406
81494 80266
82071 82100
81422 84698
77672 84110
79114 88101
85533 94085
82793 93143
78249 90792
75509 85619
74643 84236
76662 86876
74715 85201
75009 85897
75082 86538
78574 93195
81629 94782
88104 99640
90796 103455
88032 100316
91378 103860
95598 111708
97199 113866
100909 132280
101127 128331
120468 154978
118342 150724
113328 143388
98745 128164
100719 134114
104289 138544
99352 132406
104441 139383
112037 148749
110822 144844
111050 147178
101555 135384
96698 133297
86949 121795
91424 133171
93582 134577
94780 136361
103012 145618
101413 142866
105889 148766
102292 144832
102932 146694
100854 144116
99735 145398
103900 151118
113565 161163
111482 163613
109482 165746
110649 170317
114065 168612
111649 165478
105816 157182
110565 164258
112982 168499
115648 173125
122397 182409
124725 182807
123204 180657
125771 183264
118831 174802
110370 171263
115029 181958
6/30/97 117881 185980
</TABLE>
The chart above shows the performance of the GT Global New Pacific Growth
Fund, Class A shares, since the Fund's inception versus the MSCI Pacific
ex-Japan Index. This represents a cumulative return of 1078.81% and an
average annual total return of 12.83% 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 $13,750 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 $11,518 on June 30, 1997.
AVERAGE ANNUAL TOTAL RETURNS%(1)
JUNE 30, 1997
Share Class Without Sales Charge(2) With Sales Charge
1-Year 5-Year 10-Year LOF 1-Year 5-Year 10-Year LOF
Class A(3) 5.58 7.32 8.81 13.09 .57 6.28 8.28 12.83
Class B(3) 4.87 N/A N/A 8.15 .29 N/A N/A 7.79
Advisor Class(4) 5.72 N/A N/A 7.02 N/A N/A N/A N/A
HISTORICAL PERFORMANCE(2)
ANNUAL TOTAL RETURNS % (LAST 10 YEARS)
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Class A 5.73 23.20 48.12 -10.96 13.07 -7.96 60.61 -19.73 7.45 20.04
Class B N/A N/A N/A N/A N/A N/A 46.303 -20.30 6.54 19.28
(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 January 19, 1977; Class B
shares commenced on April 1, 1993.
(4) The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public and are only available
through certain employee benefit plans, financial institutions and other
entities that have entered into specific agreements with GT Global. Please
see the "Alternative Purchase Plan" section in the Fund's prospectus.
The above data represent past performance of the Fund's shares, which does not
guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
2
<PAGE>
INTERVIEW WITH PORTFOLIO MANAGER
PETER EADON-CLARKE
Q HOW DID THE FUND PERFORM?
A In contrast to last year's strong performance, regional markets have
generally had a difficult first half of the year. Against this backdrop, the
Fund returned a disappointing -5.49% (-9.98 including the maximum 4.75% sales
charge) for the Fund's Class A shares over the six-month period ended June
30, 1997. Total return for Class B shares for the same period was -5.85%
(-10.56% including the maximum 5% contingent deferred sales charge). The
Morgan Stanley Capital International (MSCI) Pacific ex-Japan Index(5) returned
1.74% over the same period.
Relative to the index, the Fund suffered primarily as a result of security
selection in Malaysia and Hong Kong. Companies that proved disappointing
include Malaysia's EKRAN (which we sold off during the period) and PWE
Industries, which were particularly impacted by a lack of financing for the
Bakun Dam project. Malaysian Resources, a real estate concern, also performed
poorly. Additionally, the Fund's sizable position in the Philippines (which
is not represented in the index) and underweighted position in Australia (at
the beginning of the period) also negatively affected Fund performance. Since
then we have been building up the Fund's weighting in Australia.
Q WHAT FACTORS CONTRIBUTED TO THE DOWNTURN IN ASIAN MARKETS?
A Weakness has been driven in part by what seemed almost a sudden
investor awareness that the Asian growth miracle, whereby growth rates of 9%
or more had become expected, was indeed approaching a normal, more sustainable
level of 4% to 5%. While these highly charged economies are hardly falling
apart, their vulnerability to a drop in demand from the industrialized world
has become evident. Over the longer term, markets have also become mindful of
increased competition from China.
Additionally, concerns over property speculation and the feverish pace of
credit expansion came to the fore. Thailand suffered the bulk of the negative
sentiment, while fears of a Thai-style property crisis also haunted investors
in Malaysia and the Philippines.
Particular issues also surfaced elsewhere. A mixed environment for corporate
earnings kept a lid on earnings in Singapore, and the electoral victory of
ruling party Golkar contributed to a modest advance in Indonesian share
prices. Korean stocks rallied further as investors perceived that the price
of DRAM computer chips (a major commodity product for several of the largest
companies and a key export for the country) may stabilize later in 1997.
DIVERGENT RETURNS
SIX-MONTH RETURNS TO 6/30/97*
KOREA 11.36%
HONG KONG 9.76
INDONESIA 6.77
SINGAPORE -7.45
MALAYSIA -11.74
THAILAND -35.70
* COUNTRIES REPRESENTED BY THEIR RESPECTIVE MSCI INDEX.
Q WHAT IMPACT HAS THE CRISIS IN THAILAND HAD ON THE FUND?
A In general, the relentless slide in the Thai market has had little
direct impact on the Fund. Over the reporting period, we generally continued to
avoid Thailand, where we feel structural problems have not yet been addressed
and further high-profile casualties in the property and financial sectors
appear likely. Thailand has continued to suffer an acute crisis as the
central bank maintained real interest rates of over 10% in order to defend
the baht, which was widely (and rightly, as shown subsequently) perceived as
being overvalued. Sentiment received a further blow in mid-June with the
announcement of the resignation of the finance minister. Subsequent to the
end of the reporting period, his successor announced the baht
(5) MSCI Pacific ex-Japan Index is an arithmetic average, weighted by market
value, of the performance of 213 securities listed on five major Pacific
Rim 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 unmanaged, not available for direct investment and
does not include the effects of sales charges and professional management
fees.
The index is unmanaged, not available for direct investment and does not
include the effects of sales charges and professional management fees.
3
<PAGE>
Q WHAT IMPACT HAS THE HANDOVER TO THE CHINESE HAD ON THE HONG KONG
MARKET?
A While the year got off to a slow start for the Hong Kong market,
performance in the second quarter picked up considerably as investors focused
on opportunities arising from the growth of the Chinese economy. A cyclical
recovery is underway--industrial production is growing at around 12% per
annum. Meanwhile, inflation is only about 2%. In this environment, red-chip
stocks, which are controlled by Chinese interests and do most (or all) of
their business in China but are domiciled and listed in Hong Kong, performed
especially well. This was in part the result of massive retail participation.
It was also due to transactions that involved the injection of formerly
state-owned assets into red-chip stocks at favorable prices.
Additionally, an increasing number of China state-owned enterprises and red
chips have been taking positions in Hong Kong companies. We believe this
indicates China will continue to emphasize Hong Kong as a key financial
market in the wake of the sovereignty transfer at the end of June.
Q HOW HAVE REGIONAL HOLDINGS SHIFTED OVER THE PERIOD?
A Our current strategy remains very bullish on China/Hong Kong, cautious
on ASEAN (Association of South East Asian Nations), especially Malaysia, and
quietly confident on Australia. The Fund's primary exposure remains in Hong
Kong, where the Fund held 44.1% of its assets at the end of the period. China
is at the beginning of a new cycle, which we believe is unlikely to overheat
before the year 2000. As of June 30, the Fund was concentrated in several
China red chips (Cosco Pacific, China Resources, Beijing Enterprises and
Guangzhou Investments). The emergence of these and other Chinese corporate
champions is a multi-year theme, and we look to their becoming recognizable
household names.
Over the first half of the year, the major shift in strategy has occurred
between Malaysia and Australia. The former is entering a cyclical bear market
as a result of a proactive monetary tightening that began in April.
Unfortunately, we believe this cyclical deterioration will dominate the
otherwise favorable privatization and restructuring themes in the Malaysian
market.
Australian authorities have been proactive with respect to monetary policy,
initiating a series of easing actions in advance of expectations. In the last
12 months--when U.S. rates have been flat to up--the central bank has cut
interest rates by two percentage points. In a classic Australian cycle, the
first consequence is a weakening currency, which we took advantage of to
significantly increase the Fund's position (26.2% at June 30, versus 7.3% at
the start of the year). These proactive cuts, in our opinion, have set the
scene for multiple years of upward earnings revisions and the potential for
an economic boom. Meanwhile, many of the factors contributing to the strength
of the U.S. market, such as moderate inflation and fiscal restraint, have
also been featured Down Under. The stock market advanced to record high
levels during the period.
We also increased the Fund's exposure to Singapore, where we
anticipate a cyclical recovery led by exports. Strong end demand for
electronics from the U.S. market could provide a significant boost to
Singapore's electronics-dependent economy--nearly 70% of Singapore's non-oil
exports come from the electronic sector.
ABOUT THE PORTFOLIO MANAGER
PETER EADON-CLARKE - Portfolio Manager since 1997 and Chief Investment
Officer for the Pacific Rim (excluding Japan) since 1992. From 1984 to 1992,
Mr. Eadon-Clarke was an Associate Director at HSBC Asset Management in Hong
Kong.
Geographic Allocation of Net Assets %
1997 1996
June 30 June 30
Australia 26.2 6.1
Hong Kong 44.1 38.4
India 0.3 --
Indonesia 2.5 1.4
Korea 1.1 0.3
Malaysia 12.1 29.3
New Zealand 0.6 0.4
Philippines 6.6 9.7
Singapore 4.8 1.2
Thailand 0.7 4.7
Short Term & Other 1.0 8.5
4
<PAGE>
SECTOR ALLOCATION OF NET ASSETS %
JUNE 30, 1997
Finance 42.7
Materials/Basic Industry 14.9
Services 14.1
Capital Goods 10.3
Multi-Industry/Misc. 7.5
Energy 4.8
Consumer Durables 3.9
Consumer Non-Durables 0.7
Short Term & Other 1.1
A complete listing of holdings and allocations may be found in the Financial
Statements section of this report.
GT GLOBAL NEW PACIFIC GROWTH FUND
KEY PORTFOLIO HOLDINGS
% of
Country Net Assets
AUSTRALIA & NEW ZEALAND BANKING GRP. LTD. A Australia 5.2
general trading and savings bank that offers
hire purchase and general finance, mortgage and
installment lending, leasing, investment and
portfolio management. The bank operates
approximately 1,600 offices in 48 countries.
HSBC HOLDINGS PLC HSBC Holdings PLC is the Hong Kong 5.2
holding company for the HSBC Group, which is an
international banking and financial services
organization with operations in the
Asia-Pacific region, Europe, the Middle East
and the Americas.
NEW WORLD DEVELOPMENT CO. LTD. An investment Hong Kong 5.2
holding company whose subsidiaries are involved
in property development and investment. The
company also has hotel operations, and is
involved in construction and civil engineering
activities, telecommunication services,
insurance, transportation and infrastructural
investment.
WOOLWORTHS LTD. Operates grocery and discount Australia 4.5
stores throughout Australia, offering general
merchandise, men's/women's/children's clothing,
footwear, accessories and sporting goods.
CHEUNG KONG (HOLDINGS) LTD. Through Hong Kong 4.4
subsidiaries, Cheung Kong is involved in
property development and investment,
infrastructure and related businesses, real
estate management and investment in securities.
PWE INDUSTRIES BHD Manufactures and sells Malaysia 4.4
sockets and switches, residual current devices,
miniature circuit breakers and other electrical
wiring devices.
BRAMBLES INDUSTRIES LTD. Operates a rail wagon Australia 4.2
rental in Europe (Groupe Caib, Brambles UK) and
intermodal transport services called Multilog,
in addition to other services.
LEIGHTON HOLDINGS LTD. Involved in Australia 4.1
construction, project management, property
development, civil engineering and contract
mining.
COSCO PACIFIC LTD. An investment holding Hong Kong 4.0
company whose subsidiaries lease shipping
containers and provide container Management
services.
HUTCHISON WHAMPOA An investment holding Hong Kong 3.9
company. Among other services, it has
diversified operations in property investment
and development, ports and related services,
retail and manufacturing, telecommunications,
and finance.
Source: Bloomberg, August 1997.
5
<PAGE>
GT GLOBAL NEW PACIFIC 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>
Finance (42.7%)
Australia & New Zealand Banking Group Ltd. ................ AUSL 2,930,400 $ 21,891,759 5.2
BANKS-REGIONAL
HSBC Holdings PLC ......................................... HK 727,600 21,883,978 5.2
BANKS-MONEY CENTER
New World Development Co., Ltd. ........................... HK 3,666,000 21,863,118 5.2
REAL ESTATE
Cheung Kong (Holdings) Ltd. ............................... HK 1,883,000 18,594,710 4.4
REAL ESTATE
Wharf (Holdings) Ltd. ..................................... HK 2,500,000 10,843,187 2.6
REAL ESTATE
China Resources Enterprise Ltd. ........................... HK 2,180,000 10,693,448 2.6
REAL ESTATE INVESTMENT TRUST
Sun Hung Kai Properties Ltd. .............................. HK 880,000 10,592,761 2.5
REAL ESTATE
Guangzhou Investment Co., Ltd. ............................ HK 18,820,000 10,385,643 2.5
REAL ESTATE
Hysan Development Co., Ltd. ............................... HK 2,769,000 8,167,456 2.0
REAL ESTATE
Metropolitan Bank & Trust Co. ............................. PHIL 311,302 6,615,906 1.6
BANKS-REGIONAL
Ayala Land, Inc. "B" ...................................... PHIL 7,125,000 6,557,163 1.6
REAL ESTATE
Metroplex Bhd. ............................................ MAL 5,500,000 5,710,323 1.4
REAL ESTATE
Malaysian Resources Corp., Bhd. ........................... MAL 1,754,000 4,830,711 1.2
REAL ESTATE
Rashid Hussain Bhd. ....................................... MAL 712,000 4,514,365 1.1
SECURITIES BROKER
DBS Land Ltd. ............................................. SING 1,409,000 4,456,115 1.1
REAL ESTATE
Development Bank of Singapore - Foreign ................... SING 307,000 3,866,499 0.9
BANKS-MONEY CENTER
Philippine Commercial International Bank .................. PHIL 252,290 2,441,516 0.6
BANKS-MONEY CENTER
PT Bank Internasional Indonesia - Foreign ................. INDO 2,441,144 2,108,763 0.5
BANKS-MONEY CENTER
State Bank of India Ltd. - GDR{\/} ........................ IND 50,100 1,327,650 0.3
BANKS-REGIONAL
Megaworld Properties & Holdings, Inc.-/- .................. PHIL 8,832,750 1,039,147 0.2
REAL ESTATE
------------
178,384,218
------------
Materials/Basic Industry (14.9%)
Leighton Holdings Ltd. .................................... AUSL 3,509,735 17,085,195 4.1
BUILDING MATERIALS & COMPONENTS
Cosco Pacific Ltd. ........................................ HK 7,126,000 16,511,553 4.0
PAPER/PACKAGING
Broken Hill Proprietary Co., Ltd. ......................... AUSL 1,075,500 15,811,928 3.8
MISC. MATERIALS & COMMODITIES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL NEW PACIFIC 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>
Materials/Basic Industry (Continued)
RGC Ltd. .................................................. AUSL 2,143,300 $ 7,844,103 1.9
MISC. MATERIALS & COMMODITIES
NatSteel Ltd. ............................................. SING 1,504,000 3,830,507 0.9
METALS - STEEL
Pohang Iron & Steel Co., Ltd. ............................. KOR 8,500 870,492 0.2
METALS - STEEL
------------
61,953,778
------------
Services (14.1%)
Woolworths Ltd. ........................................... AUSL 5,769,700 18,939,175 4.5
RETAILERS-OTHER
Brambles Industries Ltd. .................................. AUSL 895,891 17,706,219 4.2
BUSINESS & PUBLIC SERVICES
Hong Kong Telecommunications Ltd. ......................... HK 4,200,000 10,029,948 2.4
TELEPHONE NETWORKS
PT Telekomunikasi Indonesia - Foreign ..................... INDO 3,415,000 5,583,968 1.3
TELECOM - OTHER
Singapore Press Holdings Ltd. - Foreign ................... SING 196,000 3,949,622 0.9
BROADCASTING & PUBLISHING
Telecom Corporation of New Zealand Ltd. ................... NZ 484,000 2,465,530 0.6
TELEPHONE NETWORKS
Hong Kong & Shanghai Hotels ............................... HK 166,666 265,700 0.1
LEISURE & TOURISM
GZI Transportation Ltd.-/- ................................ HK 617,316 247,028 0.1
TRANSPORTATION - ROAD & RAIL
China Hong Kong Photo Products Holdings Ltd. .............. HK 412,000 119,662 --
WHOLESALE & INTERNATIONAL TRADE
------------
59,306,852
------------
Capital Goods (10.3%)
PWE Industries Bhd. ....................................... MAL 1,358,000 18,431,345 4.4
ELECTRICAL PLANT/EQUIPMENT
New World Infrastructure Ltd.-/- .......................... HK 4,165,563 11,775,937 2.8
INDUSTRIAL COMPONENTS
United Engineers Ltd.: .................................... MAL -- -- 2.2
CONSTRUCTION
Common .................................................. -- 1,225,000 8,834,951 --
Convertible Unsecured Loan Stock, 4% expires 5/22/99 .... -- 522,500 345,780 --
Harbin Power Equipment Co., Ltd. .......................... HK 17,082,000 3,770,618 0.9
ELECTRICAL PLANT/EQUIPMENT
------------
43,158,631
------------
Multi-Industry/Miscellaneous (7.5%)
Hutchison Whampoa ......................................... HK 1,864,000 16,121,237 3.9
MULTI-INDUSTRY
Citic Pacific Ltd. ........................................ HK 1,720,000 10,746,115 2.6
CONGLOMERATE
Gadek (Malaysia) Bhd. ..................................... MAL 600,000 3,328,710 0.8
CONGLOMERATE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL NEW PACIFIC 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>
Multi-Industry/Miscellaneous (Continued)
Beijing Enterprises Holdings Ltd.-/- ...................... HK 130,000 $ 818,919 0.2
MULTI-INDUSTRY
Korea Fund, Inc.{\/} ...................................... KOR 3 44 --
COUNTRY FUNDS
------------
31,015,025
------------
Energy (4.8%)
Santos Ltd.: .............................................. AUSL -- -- 2.5
OIL
Common .................................................. -- 2,376,800 9,990,022 --
New ..................................................... -- 97,500 409,806 --
Belle Corp.-/- ............................................ PHIL 22,704,000 6,634,565 1.6
OIL
Electricity Generating Public Co., Ltd. - Foreign ......... THAI 1,219,350 2,991,836 0.7
ELECTRICAL & GAS UTILITIES
------------
20,026,229
------------
Consumer Durables (3.9%)
Uniwide Holdings, Inc.-/- ................................. PHIL 22,028,000 4,347,082 1.0
APPLIANCES & HOUSEHOLD
Perusahaan Otomobil Nasional Bhd. ......................... MAL 915,000 4,278,581 1.0
AUTOMOBILES
Cycle & Carriage Ltd. ..................................... SING 405,000 4,193,955 1.0
AUTOMOBILES
Samsung Electronics Co.: .................................. KOR -- -- 0.9
CONSUMER ELECTRONICS
Common .................................................. -- 33,927 3,752,456 --
144A GDR{.} -/- {\/} .................................... -- 3,000 175,500 --
------------
16,747,574
------------
Consumer Non-Durables (0.7%)
PT Indofood Sukses Makmur ................................. INDO 1,200,000 2,764,295 0.7
FOOD
------------ -----
TOTAL EQUITY INVESTMENTS (cost $349,378,163) ................ 413,356,602 98.9
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Lai Sun Hotels International Ltd. Warrants, expire
4/30/99 .................................................. HK 1,003,517 88,087 0.1
LEISURE & TOURISM
PT Bank Internasional Indonesia Warrants, expire
1/17/00 .................................................. INDO 216,991 85,243 --
BANKS-MONEY CENTER
Hysan Development Co., Ltd. Warrants, expire 4/30/98 ...... HK 200,949 77,819 --
REAL ESTATE
Hong Kong & Shanghai Hotels Warrants, expire 12/31/98 ..... HK 166,666 38,726 --
LEISURE & TOURISM
GZI Transportation Ltd. Warrants, expire 1/29/99 .......... HK 123,463 12,750 --
TRANSPORTATION - ROAD & RAIL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Hang Lung Development Co. Warrants, expire 10/31/97 ....... HK 36,500 $ 2,733 --
REAL ESTATE
------------ -----
TOTAL WARRANTS (cost $24,649) ............................... 305,358 0.1
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Rashid Hussain Bhd. Rights for Warrants, expire 8/5/97
(cost $0) ................................................ MAL 285,714 -- --
SECURITIES BROKER
------------ -----
TOTAL INVESTMENTS (cost $349,402,812) * .................... 413,661,960 99.0
Other Assets and Liabilities ................................ 4,067,458 1.0
------------ -----
NET ASSETS .................................................. $417,729,418 100.0
------------ -----
------------ -----
</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 $349,402,812 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 76,593,365
Unrealized depreciation: (12,334,217)
-------------
Net unrealized appreciation: $ 64,259,148
-------------
-------------
</TABLE>
Abbreviation:
GDR--Global Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1997, 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) ................. 26.2 26.2
Hong Kong (HK/HKD) ................... 44.0 0.1 44.1
India (IND/INR) ...................... 0.3 0.3
Indonesia (INDO/IDR) ................. 2.5 2.5
Korea (KOR/KRW) ...................... 1.1 1.1
Malaysia (MAL/MYR) ................... 12.1 12.1
New Zealand (NZ/NZD) ................. 0.6 0.6
Philippines (PHIL/PHP) ............... 6.6 6.6
Singapore (SING/SGD) ................. 4.8 4.8
Thailand (THAI/THB) .................. 0.7 0.7
United States & Other (US/USD) ....... 1.0 1.0
------ ----- ----- -----
Total ............................... 98.9 0.1 1.0 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $417,729,418.
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $349,402,812) (Note 1).............................. $ 413,661,960
U.S. currency.................................................................. $ 899
Foreign currencies (cost $6,829,700)........................................... 6,839,613 6,840,512
-------------
Receivable for securities sold................................................................ 7,975,388
Dividends and dividend withholding tax reclaims receivable.................................... 826,731
Receivable for Fund shares sold............................................................... 368,907
Cash held as collateral for securities loaned (Note 1)........................................ 28,048,459
-------------
Total assets................................................................................ 457,721,957
-------------
Liabilities:
Payable for Fund shares repurchased........................................................... 4,273,363
Payable for securities purchased.............................................................. 4,260,342
Payable for loan outstanding (Note 1)......................................................... 2,567,000
Payable for investment management and administration fees (Note 2)............................ 339,893
Payable for service and distribution expenses (Note 2)........................................ 192,206
Payable for printing and postage expenses..................................................... 117,667
Payable for transfer agent fees (Note 2)...................................................... 111,024
Payable for custodian fees (Note 1)........................................................... 32,204
Payable for professional fees................................................................. 22,575
Payable for fund accounting fees (Note 2)..................................................... 6,607
Payable for registration and filing fees...................................................... 5,610
Payable for Trustees' fees and expenses (Note 2).............................................. 4,981
Other accrued expenses........................................................................ 10,608
Collateral for securities loaned (Note 1)..................................................... 28,048,459
-------------
Total liabilities........................................................................... 39,992,539
-------------
Net assets...................................................................................... $ 417,729,418
-------------
-------------
Class A:
Net asset value and redemption price per share ($293,398,613 DIVIDED BY 23,660,828 shares
outstanding)................................................................................... $ 12.40
-------------
-------------
Maximum offering price per share (100/95.25 of $12.40) *........................................ $ 13.02
-------------
-------------
Class B:+
Net asset value and offering price per share ($122,026,124 DIVIDED BY 10,116,672 shares
outstanding)................................................................................... $ 12.06
-------------
-------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($2,304,681 DIVIDED BY
185,301 shares outstanding).................................................................... $ 12.44
-------------
-------------
Net assets consist of:
Paid in capital (Note 4)...................................................................... $ 317,125,767
Undistributed net investment income........................................................... 17,635
Accumulated net realized gain on investments and foreign currency transactions................ 36,325,347
Net unrealized appreciation on translation of assets and liabilities in foreign currencies.... 1,521
Net unrealized appreciation of investments.................................................... 64,259,148
-------------
Total -- representing net assets applicable to capital shares outstanding....................... $ 417,729,418
-------------
-------------
<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.
F5
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
STATEMENT OF OPERATIONS
Six months ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income:
Dividend income (net of foreign withholding tax of $196,733) (Note 1)........................ $ 3,841,119
Interest income.............................................................................. 443,274
-------------
Total investment income.................................................................... 4,284,393
-------------
Expenses:
Investment management and administration fees (Note 2)....................................... 2,267,800
Service and distribution expenses: (Note 2)
Class A..................................................................... $ 571,973
Class B..................................................................... 683,591 1,255,564
-------------
Transfer agent fees (Note 2)................................................................. 690,370
Custodian fees (Note 1)...................................................................... 279,674
Registration and filing fees................................................................. 59,410
Fund accounting fees (Note 2)................................................................ 58,178
Printing and postage expenses................................................................ 44,125
Audit fees................................................................................... 28,839
Legal fees................................................................................... 18,123
Trustees' fees and expenses (Note 2)......................................................... 3,908
Other expenses (Note 1)...................................................................... 92,431
-------------
Total expenses before reductions........................................................... 4,798,422
-------------
Expense reductions (Notes 1 & 5)......................................................... (531,664)
-------------
Total net expenses......................................................................... 4,266,758
-------------
Net investment income.......................................................................... 17,635
-------------
Net realized and unrealized gain on investments and foreign currencies: (Note 1)
Net realized gain on investments.............................................. 6,576,702
Net realized gain on foreign currency transactions............................ 579,024
-------------
Net realized gain during the period........................................................ 7,155,726
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies........................................................ (2,073)
Net change in unrealized depreciation of investments.......................... (29,969,966)
-------------
Net unrealized depreciation during the period.............................................. (29,972,039)
-------------
Net realized and unrealized loss on investments and foreign currencies......................... (22,816,313)
-------------
Net decrease in net assets resulting from operations........................................... $ (22,798,678)
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL NEW PACIFIC 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)............................................. $ 17,635 $ (26,838)
Net realized gain on investments and foreign currency transactions....... 7,155,726 94,284,448
Net change in unrealized depreciation on translation of assets and
liabilities in foreign currencies....................................... (2,073) (106)
Net change in unrealized appreciation (depreciation) of investments...... (29,969,966) 36,883,188
---------------- ----------------
Net increase (decrease) in net assets resulting from operations........ (22,798,678) 131,140,692
---------------- ----------------
Class A:
Distributions to shareholders: (Note 1)
From net realized gain on investments.................................... -- (44,900,913)
Class B:
Distributions to shareholders: (Note 1)
From net realized gain on investments.................................... -- (18,754,735)
Advisor Class:
Distributions to shareholders: (Note 1)
From net realized gain on investments.................................... -- (250,756)
---------------- ----------------
Total distributions.................................................... -- (63,906,404)
---------------- ----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested......................... 1,094,121,892 5,158,291,909
Decrease from capital shares repurchased................................. (1,168,217,655) (5,226,446,724)
---------------- ----------------
Net decrease from capital share transactions........................... (74,095,763) (68,154,815)
---------------- ----------------
Total decrease in net assets............................................... (96,894,441) (920,527)
Net assets:
Beginning of period...................................................... 514,623,859 515,544,386
---------------- ----------------
End of period *.......................................................... $ 417,729,418 $ 514,623,859
---------------- ----------------
---------------- ----------------
* Includes undistributed net investment income of......................... $ 17,635 $ 0
---------------- ----------------
---------------- ----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 -----------------------------------------------------------------
(UNAUDITED) (d) 1996 (d) 1995 (d) 1994 1993 1992
--------------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 13.12 $ 12.47 $ 12.10 $ 15.86 $ 10.31 $ 11.30
--------------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss).......... 0.01 0.02 0.11 0.02 (0.03) 0.07
Net realized and unrealized gain
(loss) on investments................ (0.73) 2.44 0.79 (3.15) 6.23 (0.97)
--------------- --------- --------- --------- --------- ---------
Net increase (decrease) from
investment operations.............. (0.72) 2.46 0.90 (3.13) 6.20 (0.90)
--------------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From net investment income............ -- -- (0.10) (0.01) -- (0.06)
From net realized gain on
investments.......................... -- (1.81) (0.43) (0.55) (0.65) (0.03)
In excess of net realized gain on
investments.......................... -- -- -- (0.07) -- --
In excess of net investment income.... -- -- -- -- -- --
--------------- --------- --------- --------- --------- ---------
Total distributions................. -- (1.81) (0.53) (0.63) (0.65) (0.09)
--------------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 12.40 $ 13.12 $ 12.47 $ 12.10 $ 15.86 $ 10.31
--------------- --------- --------- --------- --------- ---------
--------------- --------- --------- --------- --------- ---------
Total investment return (c)............. (5.49)%(b) 20.04% 7.45% (19.73)% 60.61% (7.96)%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 293,399 $361,244 $383,722 $404,680 $498,898 $281,418
Ratio of net investment income (loss) to
average net assets..................... 0.20%(a) 0.17% 0.91% 0.11% (0.3)% 0.6%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.65%(a) 1.86% 1.89% 1.81% 1.9% 2.0%
Without expense reductions............ 1.88%(a) 1.99% 1.94% --* --* --*
Portfolio turnover rate++++............. 70%(a) 93% 63% 87% 117% 72%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0073 $ 0.0032 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 and average commission rates are calculated on the
basis of the Fund as a whole without distinguishing between the
classes of shares issued.
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share operating data were calculated based upon
average shares outstanding during the period.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++
---------------------------------------------------------------------------
SIX MONTHS APRIL 1, 1993
ENDED YEAR ENDED DECEMBER 31, TO
JUNE 30, 1997 ------------------------------------- DECEMBER 31,
(UNAUDITED) (d) 1996 (d) 1995 (d) 1994 1993
--------------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.80 $ 12.29 $ 11.96 $ 15.79 $ 11.27
--------------- --------- --------- --------- -------------
Income from investment operations:
Net investment income (loss).......... (0.03) (0.06) 0.03 (0.06) (0.10)
Net realized and unrealized gain
(loss) on investments................ (0.71) 2.38 0.75 (3.15) 5.27
--------------- --------- --------- --------- -------------
Net increase (decrease) from
investment operations.............. (0.74) 2.32 0.78 (3.21) 5.17
--------------- --------- --------- --------- -------------
Distributions to shareholders:
From net investment income............ -- -- (0.02) -- --
From net realized gain on
investments.......................... -- (1.81) (0.43) (0.55) (0.65)
In excess of net realized gain on
investments.......................... -- -- -- -- --
In excess of net investment income.... -- -- -- (0.07) --
--------------- --------- --------- --------- -------------
Total distributions................. -- (1.81) (0.45) (0.62) (0.65)
--------------- --------- --------- --------- -------------
Net asset value, end of period.......... $ 12.06 $ 12.80 $ 12.29 $ 11.96 $ 15.79
--------------- --------- --------- --------- -------------
--------------- --------- --------- --------- -------------
Total investment return (c)............. (5.85)%(b) 19.28% 6.54% (20.30)% 46.30%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 122,026 $151,805 $130,887 $120,171 $ 72,122
Ratio of net investment income (loss) to
average net assets..................... (0.45)%(a) (0.48)% 0.26% (0.54)% (0.9)%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.30%(a) 2.51% 2.54% 2.46% 2.5%(a)
Without expense reductions............ 2.53%(a) 2.64% 2.59% --* --*
Portfolio turnover rate++++............. 70%(a) 93% 63% 87% 117%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0073 $ 0.0032 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 and average commission rates are calculated on the
basis of the Fund as a whole without distinguishing between the
classes of shares issued.
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share operating data were calculated based upon
average shares outstanding during the period.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR CLASS+++
---------------------------------------------------
SIX MONTHS JUNE 1, 1995
ENDED YEAR ENDED TO
JUNE 30, 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.... $ 13.16 $ 12.45 $ 12.89
--------------- ------------- -------------
Income from investment operations:
Net investment income (loss).......... 0.03 0.07 0.09
Net realized and unrealized gain
(loss) on investments................ (0.75) 2.45 0.05
--------------- ------------- -------------
Net increase (decrease) from
investment operations.............. (0.72) 2.52 0.14
--------------- ------------- -------------
Distributions to shareholders:
From net investment income............ -- -- (0.15)
From net realized gain on
investments.......................... -- (1.81) (0.43)
In excess of net realized gain on
investments.......................... -- -- --
In excess of net investment income.... -- -- --
--------------- ------------- -------------
Total distributions................. -- (1.81) (0.58)
--------------- ------------- -------------
Net asset value, end of period.......... $ 12.44 $ 13.16 $ 12.45
--------------- ------------- -------------
--------------- ------------- -------------
Total investment return (c)............. (5.47)%(b) 20.56% 1.07%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 2,305 $ 1,575 $ 935
Ratio of net investment income (loss) to
average net assets..................... 0.55%(a) 0.52% 1.26%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.30%(a) 1.51% 1.54%(a)
Without expense reductions............ 1.53%(a) 1.64% 1.59%(a)
Portfolio turnover rate++++............. 70%(a) 93% 63%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0073 $ 0.0032 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 and average commission rates are calculated on the
basis of the Fund as a whole without distinguishing between the
classes of shares issued.
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share operating data were calculated based upon
average shares outstanding during the period.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global New Pacific Growth Fund ("Fund") is a separate series of GT Global
Growth Series ("Company"). The Company is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended
("1940 Act"), as 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 made by management.
(A) PORTFOLIO VALUATION
The Fund calculates the net asset value of and completes orders to purchase,
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded or on the principal over-the-counter market, as of
the close of business on the day the securities are being valued, or, lacking
any sales, at the last available bid price. In cases where securities are traded
on more than one exchange, the securities are valued on the exchange determined
by Chancellor LGT Asset Management, Inc. (the "Manager") to be the primary
market.
Fixed income securities are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for securities of comparative maturity, quality and type. However, when 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 at amortized cost, adjusted for foreign exchange
translation and market fluctuation, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Company's Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, other assets and liabilities
are recorded in the books and records of the Fund after translation to U.S.
dollars based on the exchange rates on that day. The cost of each security is
determined using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains and losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities other than investments in securities at 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.
F11
<PAGE>
GT GLOBAL NEW PACIFIC 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
marked-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers, unless a quotation from only one
broker is available, in which case only that broker's price will be used. If an
option expires on its stipulated expiration date or if the Fund enters into a
closing purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. The Fund can write options only on
a covered basis, which, for a call, requires that the Fund hold the underlying
security, and, for a put, requires the Fund to set aside cash, U.S. government
securities or other liquid securities in an amount not less than the exercise
price or otherwise provide adequate cover at all times while the put option is
outstanding. The Fund may use options to manage its exposure to the stock and
bond markets and to fluctuations in currency values or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock and bond
markets and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other than normal settlement terms. This may increase the risk if
the other party to the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At June 30, 1997, stocks with an aggregate value of approximately $25,580,197
were on loan to brokers. The loans were secured by cash collateral of
$28,048,459, 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 $480,473 which were used to reduce
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) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments
F12
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
in emerging market countries may involve greater risks than investments in more
developed markets, and the prices of such investments may be volatile. These
risks of investing in foreign and emerging markets may include foreign currency
exchange rate fluctuations, perceived credit risk, adverse political and
economic developments and possible adverse foreign government intervention.
(L) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed restricted securities. These
securities may be resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.
(M) INDEXED SECURITIES
The Fund may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.
(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 $13,444,788 with a weighted average interest rate of 6.35%. Interest expense
for the period ended June 30, 1997, was $78,303, included in "Other expenses" on
the Statement of Operations.
2. RELATED PARTIES
Chancellor LGT Asset Management, Inc. is the Fund's investment manager and
administrator. The Fund pays investment management and administration fees at
the following annualized rates: 0.975% on the first $500 million of average
daily net assets on the Fund; 0.95% on the next $500 million; 0.925% on the next
$500 million and 0.90% on amounts thereafter. These fees are computed daily and
paid monthly, and are subject to reduction in any year to the extent that the
Fund's expenses (exclusive of brokerage commissions, taxes, interest,
distribution-related expenses and extraordinary expenses) exceed the most
stringent limits prescribed by the laws or regulations of any state in which the
Fund's shares are offered for sale, based on the average total net asset value
of the Fund.
GT Global, Inc. ("GT Global"), 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 $29,041
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 $40,337 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 CDSCs, in accordance with the Fund's current
prospectus. For the period ended June 30, 1997, GT Global collected CDSCs in the
amount of $414,164. 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%, 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
F13
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
transaction fee of $1.75 for all transactions other than exchanges and a per
exchange fee of $2.25. GT Services also is reimbursed by the Fund for its
out-of-pocket expenses for such items as postage, forms, telephone charges,
stationery and office supplies.
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% of 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 the Manager, 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 $153,762,002 and $203,371,834, respectively. There were no purchases
or sales of U.S. government obligations 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:
<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............................. 60,831,719 $ 762,578,955 285,658,529 $ 3,783,795,259
Shares issued in connection with
reinvestment of distributions......... -- -- 2,934,435 37,677,963
--------------- ------------------ ---------------- --------------------
60,831,719 762,578,955 288,592,964 3,821,473,222
Shares repurchased...................... (64,706,751) (814,711,956) (291,833,470) (3,895,314,036)
--------------- ------------------ ---------------- --------------------
Net decrease............................ (3,875,032) $ (52,133,001) (3,240,506) $ (73,840,814)
--------------- ------------------ ---------------- --------------------
--------------- ------------------ ---------------- --------------------
<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............................. 25,777,171 $ 314,368,827 96,986,480 $ 1,263,551,513
Shares issued in connection with
reinvestment of distributions......... -- -- 1,241,219 15,565,185
--------------- ------------------ ---------------- --------------------
25,777,171 314,368,827 98,227,699 1,279,116,698
Shares repurchased...................... (27,516,483) (337,134,386) (97,020,480) (1,273,495,413)
--------------- ------------------ ---------------- --------------------
Net increase (decrease)................. (1,739,312) $ (22,765,559) 1,207,219 $ 5,621,285
--------------- ------------------ ---------------- --------------------
--------------- ------------------ ---------------- --------------------
<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............................. 1,326,076 $ 17,174,110 4,311,411 $ 57,463,326
Shares issued in connection with
reinvestment of distributions......... -- -- 18,530 238,663
--------------- ------------------ ---------------- --------------------
1,326,076 17,174,110 4,329,941 57,701,989
Shares repurchased...................... (1,260,408) (16,371,313) (4,285,455) (57,637,275)
--------------- ------------------ ---------------- --------------------
Net increase............................ 65,668 $ 802,797 44,486 $ 64,714
--------------- ------------------ ---------------- --------------------
--------------- ------------------ ---------------- --------------------
</TABLE>
5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the six months ended June 30, 1997, the Fund's
expenses were reduced by $51,191 under these arrangements.
F14
<PAGE>
GT GLOBAL NEW PACIFIC GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL NEW PACIFIC 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 NEW PACIFIC GROWTH FUND
NEWSR708063M
