<PAGE>
CHANCELLOR LGT
ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
WORLDWIDE
GROWTH FUND
ANNUAL REPORT
DECEMBER 31, 1996
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Message from the
President............ 1
Report from the Fund
Managers and Key
Portfolio Holdings... 2
Report of Independent
Accountants.......... F1
Financial
Statements........... F2
Portfolio holdings'
and views of the
Funds' managers
described in this
annual report are as
of the date of the
interview, unless
otherwise noted, and
are subject to
change.
</TABLE>
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
MESSAGE FROM THE PRESIDENT
Dear Investor,
Fiscal 1996 has been a year of economic strengthening, and the GT Global
Funds have benefited from low inflation and low interest rates worldwide.
We're proud of their performance over the past year and remain enthusiastic
about their long-term potential.
Consistent, above-average performance of GT Global Funds is our priority. To
that end, we enhanced the breadth and depth of our investment capabilities
this fall when Liechtenstein Global Trust (LGT), the parent company of GT
Global, acquired a premier institutional money manager, Chancellor Capital
Management. On October 31, 1996, Chancellor merged with LGT Asset Management,
the Funds' advisor, and the combined entity is now known as Chancellor LGT
Asset Management. This acquisition increased assets entrusted to LGT to over
$80 billion.
We are confident about the partnership's success because both firms share a
commitment to providing investors around the world with solutions to their
investment needs through combined, top-notch expertise. Individual investors
now have access to the same high-quality management services enjoyed by over
320 institutional investors, including some of the country's largest
organizations.
Chancellor's strengths--disciplined U.S. equity and fixed income processes
and professionals, coupled with proven fundamental and quantitative
investment capabilities--represent an ideal complement to LGT's advantages as
an experienced global investment manager with an extensive global
infrastructure. Chancellor LGT Asset Management's global investment team
includes 12 economists, 98 portfolio managers, 72 analysts and 19 traders
located in nine regional offices.
Warren Shaw, LGT's new Global Chief Investment Officer, has been the
principal architect of Chancellor's investment policies, with excellent
results. The disciplined, repeatable process he created leverages the
effectiveness of a strong investment team approach.
As always, we appreciate your continued confidence. Should you or your
adviser have any questions regarding GT Global Funds, please call us at
800-824-1580. One of our registered representatives will be happy to assist
you.
Sincerely,
/s/WILLIAM J. GUILFOYLE
William J. Guilfoyle
President
GT Global Mutual Funds
1
<PAGE>
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.
GT GLOBAL WORLDWIDE GROWTH FUND
PERFORMANCE SUMMARY
GT GLOBAL
WORLDWIDE
GROWTH FUND MSCI World
CLASS A Index
6/9/87 9525 10000
9886.95 9718.05
10448.99 913.93
10896.6 10501.7
11058.5 10320.5
7858.13 8569.81
7762.88 8363.01
8420.1 8726.96
8524.88 8941.58
9058.28 9462.19
9086.85 9749.67
9458.33 9874.44
9315.45 9678.91
9401.18 9667.25
9439.28 9850.79
8943.98 9311.34
9010.65 9708.1
9391.65 10356
9610.73 10718.4
9793.71 10817.1
10361.3 11210.3
10419 11141.6
10717.3 11072
11179.1 11329.4
11304.1 11053.4
11207.9 10930.6
12044.9 12167.6
12266.2 11875
12564.4 12212.2
12044.9 11806.9
12516.3 12280.2
13475.1 12677
13099.4 12087
12862.1 11570.7
12970.9 10873.9
12644.6 10719.2
13722.2 11850
13840.9 11767.5
14246.2 11876.8
12624.9 10767
11458.3 9633.69
11863.6 10535
11834 10364
11786.1 10583
12134.8 10972.1
12971.7 11989.8
13230.7 11638.3
13230.7 11731.2
13768.7 11999
13141 11260.2
13888.3 11793.9
13958 11758.4
13997.9 12068.8
14087.5 12266.5
13420 11734.1
14173.5 12590.4
14223.9 12359.4
3/31/92 14616.8 12148.2
14304.5 11578
14576.5 11741.4
15029.8 12210.6
14566.4 11803.8
14415.3 11836.1
14133.2 12126.1
13720.2 12017.2
14032.5 11693.9
14274.3 11905.3
14637.1 12003.7
14970.9 12046
15031.6 12333.6
15790.3 13050.9
15881.3 13658.1
16488.2 13975.2
16306.2 13860.2
16720.9 14147.9
17671.8 14798.8
17621.2 14527.7
18086.5 14930.4
17236.8 14088.2
18671.8 14780
19601.6 15757.2
18896.2 15555.9
17774 14887.8
18116 15350.7
18019.8 15392.8
17667.1 15352.8
18126.7 15647.4
19024.5 16121.3
18564.9 15700.5
18629 16150
17870.2 15452.4
17429.8 15605
16285 15373.6
16116.7 15600.7
16228.9 16355.8
16958.4 16929.1
17126.8 17077.1
17732.8 17075.2
18877.6 17932.9
18877.6 17536.6
19416.3 18050.8
19023.5 17769.9
19203.1 18390.3
19387.5 18931.4
19687.2 19277.2
19583.5 19398.2
19929.3 19724.5
20275.1 20191.9
20194.4 20213
20252 20318.8
19468.2 19604.5
20056.1 19833.5
20494.1 20613.8
20551.7 20761.4
21358.6 21928.5
12/31/96 21505.5 21581.1
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 115.06% and an average annual total return
of 8.34% 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 invest-ment in the Fund's Class B
shares at inception on April 1, 1993, would have been valued at $12,934 on
December 31, 1996. 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 $12,630 on December 31, 1996.
AVERAGE ANNUAL TOTAL RETURNS%(1)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
Share Class Without Sales Charge(2) With Sales Charge
1-Year 5-Year Life of Fund 1-Year 5-Year Life of Fund
<S> <C> <C> <C> <C> <C> <C>
Class A(3) 10.92 8.70 8.89 5.66 7.64 8.34
Class B(3) 10.16 N/A 7.76 5.24 N/A 7.10
Advisor Class(4) 11.31 N/A 15.86 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(3) 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) This 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 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 INTERNATIONAL CHIEF INVESTMENT OFFICER JANUARY, 1997
ROGER YATES
Q HOW DID THE FUND PERFORM?
A The Fund's total return for the 12 months ended December 31, 1996, for
Class A shares was 10.92% (5.66% including the effect of the maximum 4.75%
sales charge). Total return for Class B shares was 10.16% (5.24% including
the effect of the maximum 5% contingent deferred sales charge). Total return
for the Morgan Stanley Capital International (MSCI) World Index(5) over the
same period was 14.00%.
Q WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE OVER THE 12 MONTHS?
A While the Fund benefited from being overweighted in Europe and
underweighted in Japan relative to the index, its performance was adversely
affected by being overweighted in emerging Asian markets, where the index has
no exposure, and underweighted in the U.S.
We continued to feel the U.S. was looking expensive, having experienced a
bull market for quite some time, and took the opportunity to shift into more
defensive stocks. While this cost us some in the short term, we believe they
will stand as good investments should a market correction occur.
Q HOW WOULD YOU CHARACTERIZE THE U.S. MARKET OVER THE PERIOD?
A The U.S. equity market forged ahead to new highs, undaunted by Federal
Reserve Chairman Alan Greenspan's cautionary statements in early December,
ending the year with a 23% gain as measured by the S&P 500. Foundation for
the strong advance was what many have referred to as a "Goldilocks"
economy--one that grows fast enough to allow good gains in corporate profits,
but not so fast as to force the Federal Reserve to raise interest rates to
tighten monetary policy. Despite a sharp, but brief, midyear correction and
periodic fears of a hike in interest rates by the Federal Reserve, the market
enjoyed a year of moderation in most key economic variables. As well, the
Fed's stable monetary posture and the balanced results of the November
elections enhanced investor confidence in the financial markets.
Q HOW IS CORPORATE REFORM TAKING ROOT IN EUROPE?
A Corporate reform has been among the factors responsible for the strength of
continental European stock markets over the last two years. Leading
companies in countries such as France and Germany have restructured to
increase returns to shareholders. This reform has involved divestiture of
non-core operations, reduction in staffing levels, introduction of schemes
to provide management incentives, and easing of legal restrictions on hostile
takeovers and share buybacks. We believe this fundamental shift in corporate
culture represents a major opportunity for global investors. Moreover, we
view the development of many service industries, such as management
consulting and temporary labor, as another area of opportunity.
Q COULD YOU DESCRIBE THE GENERAL ECONOMIC AND FINANCIAL ENVIRONMENT IN JAPAN?
A The transitional period Japan entered into in the early 1990s continued in
1996, with sluggish economic growth and deflation persisting throughout the
year. Japanese banks have yet to overcome the bad debt crisis fueled by a
collapse in property and stock prices. The fragile financial system has not
only depressed consumer confidence, but could also worsen as declining share
prices erode the value of banks' stock portfolios. This is problematic as
these portfolios provide a means of writing off bad loans and keeping capital
adequacy rates up to international standards.
In addition, businesses have had difficulties coping with slow growth, and
company profits have proved unsustainable with the drop-off in consumer
demand in the second half of the year. Meanwhile, although a weaker yen has
been a boon for exports, it's becoming less of a positive factor as many
companies have moved production overseas in recent years. Moreover, we expect
the weakening yen will damage profit margins, apart from the exporters, as
input costs rise in a deflationary environment.
CONTINUED P.4
(5) The MSCI World Index is an arithmetic average, weighted by market value,
of the performance of 1,561 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
INTERVIEW WITH THE INTERNATIONAL CIO CONTINUED
Q WHAT ACCOUNTS FOR YOUR DECISION TO INCREASE THE FUND'S EXPOSURE TO THE UK?
A Britain is second only to the U.S. as a home to major corporations that can
exploit worldwide mega-trends and the growth of demand in emerging markets.
Furthermore, we view the strength of the UK economy and the probability of a
further rise in sterling as positives. Despite concerns over political risk
in the run-up to the 1997 general election, we see no need for pessimism.
FTSE 100 stocks look set to achieve 9%-10% growth in dividend per share, and
small and medium-sized companies appear to offer even better value.
The consumer-led recovery augurs well for small companies, which are priced
on the same multiples as large firms, even though most forecasters suggest
the outlook for both is equally bright. In 1987-88, small companies were
trading at a 30% premium to large companies. We believe particular industries
such as media, publishing and building materials also offer opportunities
through restructuring.
Q WHAT HAS DRIVEN THE PERFORMANCE OF THE HONG KONG MARKET?
A The Hong Kong market was driven by a recovery in the property market and
growing optimism about the Chinese business cycle. At the sector level, "red
chips" (companies managed in Hong Kong but with substantial business
operations in China) enjoyed a period of especially strong performance.
Moreover, speculation about potential asset injection and spin-offs helped
add momentum to companies with Chinese provincial or ministerial parentage.
The Hong Kong market is also optimistic that the transition back to China
will be smooth and that prosperity will be maintained, although, there is,
of course, the potential for market volatility with the handover.
Q HOW HAVE THE FUND'S OTHER ASIAN HOLDINGS FARED?
A Korea led the underperformers and continued to disappoint investors. The
MSCI Korea Index slid another 20% in the last quarter of the year on
deteriorating economic fundamentals, increasing stock supply and political
problems. The Thai market also underperformed other regional markets as the
economy weakened and the poor earnings outlook continued. Worries over
banking and finance companies' bad loans were also a factor. Finally,
Singapore's GDP growth in 1996 was adversely affected by a slowdown in the
electronics cycle, and the market ended on a down note.
Q THE FUND HOLDS A BIT IN LATIN AMERICA. HAVE THESE ECONOMIES RECOVERED FROM
THE MEXICAN PESO CRISIS?
A The latest statistics confirm that an investment-led recovery in the
Mexican economy is well underway. Consequently, we remain fairly optimistic
about its stock market. Real wages, which have been falling for more than two
years, are likely, in our opinion, to begin recovering this year, boosting
domestic demand and consumption stocks. With respect to the Fund's other
position in Latin America, Brazil, we think privatization and economic reform
could well be rewarding themes for investors in 1997. However, we remain
cautious on the longer-term prospects. In the absence of a substantial jump
in exports, we believe Brazil is likely to face an external financing
constraint over the next year or two, and the government's fiscal deficit has
yet to be seriously addressed.
Q WHAT IS YOUR GLOBAL OUTLOOK GOING FORWARD?
A Our outlook for global financial markets remains favorable as global
disinflation continues to underpin equity and bond markets.
We believe the U.S. stock market still has scope to provide reasonable
returns. U.S. corporate profits are still growing faster than GDP, partly
because U.S. corporations as a group derive a significant portion of their
earnings from overseas (roughly a third of the earnings of the companies in
the S&P 500 Index are sourced from outside the U.S.). Also, American
businesses are continuing to increase productivity. Many American companies
are preeminent in their respective fields worldwide. However, rising unit
labor costs and, for many companies, falling pricing power within the
domestic market, suggest earnings growth may slow in some sectors.
Our outlook for the UK and European stock markets is more promising than for
the U.S. Price/earnings and price/cash flow ratios are 25%-40% lower than
those of American stocks. After two years of interest rate reductions, growth
in most European economies should accelerate. Other factors, such as German
tax
CONTINUED P.5
4
<PAGE>
INTERVIEW WITH THE INTERNATIONAL CIO CONTINUED
cuts at the beginning of the year, should also be beneficial. World class
corporations that can exploit global growth themes can be found in the UK and
on the continent.
Meanwhile, we believe European exporters should receive a boost from further
falls in the continental currencies against the U.S. dollar and sterling over
the next 18 months or so. And, at long last, managers in France, Germany,
Switzerland and Italy are beginning to focus on adding value for
shareholders, and the resulting corporate restructuring is providing
investors with exciting opportunities.
While our outlook for Hong Kong following the transfer of sovereignty is
promising, we may see some consolidation in the first quarter of 1997. Over
the longer term, the territory's political transition provides the Chinese
government with strong incentive to promote a positive economic environment
in southern China. Even without the end of British rule of Hong Kong, the
prognosis for China itself would have been good. Inflation has fallen from
about 30% to below 10%, giving the Chinese government another opportunity to
promote economic growth--good news for many Hong Kong-based companies.
Conversely, our outlook for the Japanese stock market remains bleak,
underscored by the continued importance of careful sector and stock
selection. Real economic growth is low; nominal growth is lower. Many
companies are continuing to find their margins under pressure. Moreover,
Japanese big businesses are, for the most part, way behind their counterparts
elsewhere in embracing the need for restructuring.
In this environment, we are focusing exclusively on companies that have
dominant positions in the few segments of the economy with the capacity to
grow strongly. Examples include certain retailers and cellular telephone
service providers (that are taking advantage of deregulation) and companies
that specialize in products for the rising aging population.
Finally, in emerging Asia we believe the era of rapid economic growth is not
yet over. However, there is a much greater need for a more selective approach
than was the case in the late 1980s. The acceleration of the Chinese economy
is important for the entire region.
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 Managment (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 promotion. Mr. Yates received a
bachelor's degree from Oxford University and completed post graduate research
at Reading University.
JOHN NADELL - Portfolio Manager for Chancellor LGT Asset Management;
Investment Analyst since 1994. Previously, Mr. Nadell was an Analyst at
Pacific Equity Management from 1990-1994. He received his B.A. from Claremont
McKenna College.
SORAYA M. BETTERTON - Portfolio Manager for Chancellor LGT Asset Management
since 1986; Investment Analyst since 1984. Ms. Betterton received her B.A.
from Oxford University.
GEOGRAPHIC ALLOCATION OF NET ASSETS %
1996 1995
December 31 December 31
Australia 3.0 N/A
Belgium N/A 0.7
Brazil 1.2 N/A
Finland N/A 0.8
France 4.1 4.9
Germany 4.2 2.0
Hong Kong 4.3 2.7
India N/A 0.7
Italy 2.7 2.1
Japan 8.2 15.5
Korea 0.8 2.3
Mexico 1.2 N/A
Netherlands 3.5 4.6
New Zealand 3.6 N/A
Norway 0.6 0.7
Portugal 1.2 N/A
Singapore 2.9 1.9
Spain 2.5 2.1
Sweden 2.2 2.8
Switzerland 3.4 3.2
Thailand 1.3 3.4
UK 15.4 12.5
U.S. & Other 33.7 36.7
Venezuela N/A 0.4
Allocations will change based on current market conditions.
5
<PAGE>
SECTOR ALLOCATION OF NET ASSETS %
DECEMBER 31, 1996
Services 19.4
Finance 16.2
Health Care 10.2
Consumer Non-Durables 7.7
Materials/Basic Industry 7.6
Capital Goods 7.0
Multi-Industry/Misc. 6.5
Technology 5.6
Energy 5.5
Consumer Durables 4.4
Short Term & Other 9.9
<TABLE>
<CAPTION>
GT GLOBAL WORLDWIDE GROWTH FUND % of
KEY PORTFOLIO HOLDINGS(6) Country Net Assets
<S> <C> <C>
SOLA INTERNATIONAL, INC. Designs, manufactures and distributes eyeglass U.S. 2.7
lenses, focusing mainly on the plastic lens segment of the global lens
market. The company's lenses, which are sold under the Spectralite, VIP Gold,
XL Gold, UltraGard and PermaGard Plus names, are manufactured in North
America, Europe, Australia, Asia and South America.
SUNBEAM-OSTER CO., INC. A consumer products company that designs, U.S. 2.6
manufactures and markets a diverse portfolio of outdoor and household brand
name products. The company's Sunbeam and Oster brands are sold worldwide.
EASTMAN KODAK CO. Develops, manufactures and markets consumer and commercial U.S. 2.3
imaging products. The company's products and services are offered worldwide.
INTEL CORPORATION Designs, manufactures and sells microcomputer components U.S. 2.2
and related products worldwide. The company's products include
microprocessors, embedded products, memory chips, computer modules, and
network and communication hardware.
3COM CORP Designs, produces and markets a broad range of ISO 9000-compliant U.S. 2.0
global data networking solutions, such as routers, hubs, switches and
adapters for Ethernet, Token Ring, FDDI and ATM networks.
AMERICAN INTERNATIONAL GROUP, INC. Underwrites commercial and industrial U.S. 1.9
insurance throughout the U.S. and abroad. The company writes property,
casualty, marine, life and financial guarantee insurance. American operates
in approximately 130 countries and also provides a variety of financial
services.
SCHWEITZER-MAUDUIT INTERNATIONAL INC. Supplies fine papers to the tobacco U.S. 1.9
industry and is a diversified producer of premium specialty papers. The
company conducts business in over 80 countries with operations in the U.S.,
France and Canada.
TRANSOCEAN OFFSHORE, INC. Provides contract drilling services of offshore oil U.S. 1.9
and gas wells throughout the world. The company specializes in technically
demanding segments of the offshore drilling market including deep-water,
harsh environment and turnkey drilling.
GENERAL ELECTRIC CO. The Company has business interests in appliances, U.S. 1.7
broadcasting, communications and transportation. It also manufactures home
appliances, light bulbs, satellites, jet engines, electricity distribution
products, diagnostic imaging systems and diesel locomotives, and owns the
National Broadcasting Company.
UNITED OVERSEAS BANK LTD. Offers a full range of commercial banking and Singapore 1.6
financial services throughout Asia-Pacific, the People's Republic of China,
the UK, Canada and the U.S.
</TABLE>
(6) There can be no assurance the Fund will continue to hold these securities.
6
<PAGE>
GT GLOBAL
WORLDWIDE
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
GT Global Growth Series:
We have audited the accompanying statement of assets and liabilities of GT
Global Worldwide Growth Fund, one of the funds organized as a series of GT
Global Growth Series, including the schedule of portfolio investments, as of
December 31, 1996, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of GT
Global Worldwide Growth Fund as of December 31, 1996, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
FEBRUARY 14, 1997
F1
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (19.4%)
Federated Department Stores, Inc.-/- ...................... US 82,000 $ 2,798,250 1.6
RETAILERS-APPAREL
Telecom Corporation of New Zealand Ltd. - ADR{\/} ......... NZ 25,000 2,025,000 1.1
TELEPHONE NETWORKS
EMI Group PLC ............................................. UK 82,480 1,956,075 1.1
LEISURE & TOURISM
Rentokil Group PLC ........................................ UK 239,000 1,804,777 1.0
CONSUMER SERVICES
Koninklijke Ahold N.V. .................................... NETH 26,647 1,667,367 0.9
RETAILERS-FOOD
Reuters Holdings PLC ...................................... UK 125,600 1,616,240 0.9
BROADCASTING & PUBLISHING
Carrefour Supermarche ..................................... FR 2,475 1,613,050 0.9
RETAILERS-FOOD
Adecco - Bearer-/- ........................................ SWTZ 6,410 1,609,686 0.9
CONSUMER SERVICES
Elsevier N.V. ............................................. NETH 92,651 1,567,444 0.9
BROADCASTING & PUBLISHING
Telecom Italia Mobile S.p.A. .............................. ITLY 604,510 1,534,218 0.9
WIRELESS COMMUNICATIONS
Aoyama Trading Co., Ltd. .................................. JPN 57,000 1,516,586 0.8
RETAILERS-APPAREL
DDI Corp. ................................................. JPN 220 1,455,771 0.8
WIRELESS COMMUNICATIONS
Burton Group PLC .......................................... UK 542,000 1,447,808 0.8
RETAILERS-APPAREL
Telefonica de Espana-/- ................................... SPN 56,700 1,317,436 0.7
TELEPHONE NETWORKS
EMAP PLC .................................................. UK 100,800 1,271,219 0.7
BROADCASTING & PUBLISHING
Portugal Telecom S.A. - Registered ........................ PORT 43,660 1,245,014 0.7
TELEPHONE NETWORKS
Sol Melia S.A.-/- ......................................... SPN 33,256 1,191,742 0.7
LEISURE & TOURISM
Stet Societa' Finanziaria Telefonica S.p.A. ............... ITLY 248,600 1,131,089 0.6
TELEPHONE NETWORKS
Comptoirs Modernes ........................................ FR 2,080 1,124,324 0.6
RETAILERS-FOOD
Compass Group PLC ......................................... UK 85,367 906,293 0.5
RESTAURANTS
Advanced Info. Service - Foreign .......................... THAI 95,000 889,201 0.5
WIRELESS COMMUNICATIONS
Telecel - Comunicacaoes Pessoais, S.A.-/- ................. PORT 13,498 862,130 0.5
WIRELESS COMMUNICATIONS
Dixons Group PLC .......................................... UK 92,100 856,341 0.5
RETAILERS-APPAREL
Granada Group PLC ......................................... UK 52,000 768,425 0.4
LEISURE & TOURISM
Cordiant PLC-/- ........................................... UK 407,000 728,279 0.4
BROADCASTING & PUBLISHING
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Seven-Eleven Japan Ltd. ................................... JPN 500 $ 29,285 --
RETAILERS-OTHER
Kobenhavns Lufthavne AS ................................... DEN 139 14,166 --
TRANSPORTATION - AIRLINES
------------
34,947,216
------------
Finance (16.2%)
American International Group, Inc. ........................ US 32,200 3,485,650 1.9
INSURANCE - MULTI-LINE
United Overseas Bank Ltd. - Foreign ....................... SING 260,000 2,899,628 1.6
BANKS-MONEY CENTER
ITT Hartford Group, Inc. .................................. US 35,700 2,409,750 1.3
INSURANCE - MULTI-LINE
Australia & New Zealand Banking Group Ltd. ................ AUSL 335,300 2,112,441 1.2
BANKS-MONEY CENTER
HSBC Holdings PLC ......................................... HK 89,600 1,917,352 1.1
BANKS-MONEY CENTER
Royal & Sun Alliance Insurance Group PLC .................. UK 246,550 1,882,899 1.0
INSURANCE - MULTI-LINE
Barclays PLC .............................................. UK 103,600 1,777,521 1.0
BANKS-MONEY CENTER
AEGON N.V. ................................................ NETH 22,168 1,414,077 0.8
INSURANCE-LIFE
3I Group PLC .............................................. UK 167,670 1,398,207 0.8
INVESTMENT MANAGEMENT
Nichiei Co., Ltd. ......................................... JPN 18,000 1,329,475 0.7
OTHER FINANCIAL
Banco Popular Espanol S.A. ................................ SPN 5,890 1,157,483 0.6
BANKS-MONEY CENTER
Storebrand "A"-/- ......................................... NOR 178,202 1,023,498 0.6
INSURANCE - MULTI-LINE
Mapfre Vida Seguros ....................................... SPN 13,227 917,409 0.5
INSURANCE-LIFE
Skandia Forsakrings AB .................................... SWDN 30,929 876,214 0.5
INSURANCE - MULTI-LINE
Cheung Kong (Holdings) Ltd. ............................... HK 84,000 746,703 0.4
REAL ESTATE
Henderson Land Development Co., Ltd. ...................... HK 72,000 726,144 0.4
REAL ESTATE
JACCS Co., Ltd. ........................................... JPN 80,000 621,977 0.3
CONSUMER FINANCE
Thai Farmers Bank Public Co., Ltd. SEC{\/} ................ THAI 112,000 574,560 0.3
BANKS-MONEY CENTER
M & G Group PLC ........................................... UK 28,670 542,472 0.3
INVESTMENT MANAGEMENT
Cardif S.A. ............................................... FR 2,779 383,588 0.2
INSURANCE - MULTI-LINE
Land and House Co., Ltd. - Foreign ........................ THAI 50,000 364,650 0.2
REAL ESTATE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Korea Exchange Bank ....................................... KOR 39,650 $ 360,027 0.2
BANKS-MONEY CENTER
Kookmin Bank-/- ........................................... KOR 16,820 274,071 0.2
BANKS-MONEY CENTER
Phatra Thanakit Co., Ltd. - Foreign ....................... THAI 61,900 176,229 0.1
INVESTMENT MANAGEMENT
------------
29,372,025
------------
Health Care (10.2%)
Sola International, Inc.-/- ............................... US 129,000 4,902,000 2.7
MEDICAL TECHNOLOGY & SUPPLIES
Novartis AG-/- ............................................ SWTZ 1,925 2,205,549 1.2
PHARMACEUTICALS
Bayer AG .................................................. GER 51,310 2,095,103 1.2
PHARMACEUTICALS
Takeda Chemical Industries ................................ JPN 93,000 1,952,229 1.1
PHARMACEUTICALS
Schering AG ............................................... GER 19,250 1,625,862 0.9
PHARMACEUTICALS
Taisho Pharmaceuticals .................................... JPN 65,000 1,532,913 0.9
PHARMACEUTICALS
Sanofi S.A. ............................................... FR 12,372 1,232,423 0.7
PHARMACEUTICALS
Astra AB "A" Free ......................................... SWDN 23,730 1,173,856 0.7
PHARMACEUTICALS
Siemens AG - New-/- ....................................... GER 22,020 1,038,004 0.6
MEDICAL TECHNOLOGY & SUPPLIES
M.L. Laboratories PLC-/- .................................. UK 115,291 402,729 0.2
PHARMACEUTICALS
------------
18,160,668
------------
Consumer Non-Durables (7.7%)
Sunbeam-Oster Co., Inc. ................................... US 181,000 4,660,750 2.6
HOUSEHOLD PRODUCTS
Schweitzer-Mauduit International, Inc. .................... US 110,000 3,478,750 1.9
TOBACCO
Amway Japan Ltd. .......................................... JPN 64,400 2,069,523 1.2
HOUSEHOLD PRODUCTS
Gucci Group - NY Registered Shares{\/} .................... ITLY 22,990 1,468,486 0.8
TEXTILES & APPAREL
Parmalat Finanziaria S.p.A. ............................... ITLY 505,420 773,977 0.4
FOOD
Vendex International N.V. ................................. NETH 17,699 757,796 0.4
OTHER CONSUMER GOODS
Giordano International Ltd. ............................... HK 864,000 737,316 0.4
TEXTILES & APPAREL
------------
13,946,598
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (7.6%)
Eastman Kodak Co. ......................................... US 52,800 $ 4,237,200 2.3
MISC. MATERIALS & COMMODITIES
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 108,000 2,134,740 1.2
PAPER/PACKAGING
Fernz Corp., Ltd. ......................................... NZ 540,000 1,850,622 1.0
CHEMICALS
Western Mining Corporation Holdings Ltd. .................. AUSL 265,000 1,669,540 0.9
METALS - NON-FERROUS
Pilkington PLC ............................................ UK 515,680 1,395,162 0.8
BUILDING MATERIALS & COMPONENTS
SGL Carbon AG ............................................. GER 9,080 1,145,332 0.6
METALS - NON-FERROUS
Fletcher Challenge Paper{/\} .............................. NZ 512,000 1,045,396 0.6
PAPER/PACKAGING
Siam Cement Co., Ltd. - Foreign ........................... THAI 13,700 431,715 0.2
CEMENT
------------
13,909,707
------------
Capital Goods (7.0%)
Premier Farnell PLC ....................................... UK 154,758 1,990,124 1.1
INDUSTRIAL COMPONENTS
Smiths Industries PLC ..................................... UK 142,040 1,950,618 1.1
AEROSPACE/DEFENSE
General Electric PLC-/- ................................... UK 286,730 1,880,438 1.0
AEROSPACE/DEFENSE
Canon, Inc. ............................................... JPN 75,000 1,658,604 0.9
OFFICE EQUIPMENT
Lockheed Martin Corp. ..................................... US 17,200 1,573,800 0.9
AEROSPACE/DEFENSE
Boeing Co. ................................................ US 14,600 1,553,075 0.9
AEROSPACE/DEFENSE
Bic ....................................................... FR 9,909 1,488,263 0.8
OFFICE EQUIPMENT
Telefonaktiebolaget LM Ericsson "B" ....................... SWDN 18,683 578,650 0.3
TELECOM EQUIPMENT
------------
12,673,572
------------
Multi-Industry/Miscellaneous (6.5%)
General Electric Co. ...................................... US 31,300 3,094,788 1.7
CONGLOMERATE
Citic Pacific Ltd. ........................................ HK 356,000 2,066,770 1.1
CONGLOMERATE
Hutchison Whampoa ......................................... HK 196,000 1,539,566 0.9
MULTI-INDUSTRY
Kinnevik AB "B" Free ...................................... SWDN 46,850 1,292,869 0.7
MULTI-INDUSTRY
Parkway Holdings Ltd. ..................................... SING 264,000 1,038,033 0.6
MULTI-INDUSTRY
Straits Steamship Land Ltd. ............................... SING 297,000 951,215 0.5
CONGLOMERATE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Multi-Industry/Miscellaneous (Continued)
Wrightson Ltd. ............................................ NZ 1,000,000 $ 869,135 0.5
MULTI-INDUSTRY
Fletcher Challenge Ltd. ................................... NZ 250,000 768,443 0.4
MULTI-INDUSTRY
United Industrial Corp. ................................... SING 278,000 234,515 0.1
CONGLOMERATE
------------
11,855,334
------------
Technology (5.6%)
Intel Corporation ......................................... US 30,800 4,032,875 2.2
SEMICONDUCTORS
3Com Corp.-/- ............................................. US 48,300 3,544,013 2.0
NETWORKING
Group Axime-/- ............................................ FR 9,208 1,066,564 0.6
COMPUTERS & PERIPHERALS
Cap Gemini N.V. ........................................... NETH 32,750 952,520 0.5
COMPUTERS & PERIPHERALS
Bowthorpe PLC ............................................. UK 76,000 588,219 0.3
COMPUTERS & PERIPHERALS
------------
10,184,191
------------
Energy (5.5%)
Transocean Offshore, Inc. ................................. US 53,800 3,369,225 1.9
ENERGY SOURCES
Petroleo Brasileiro S.A. (Petrobras) - ADR-/- {\/} ........ BRZL 138,200 2,142,100 1.2
GAS PRODUCTION & DISTRIBUTION
United Utilities PLC ...................................... UK 125,700 1,336,639 0.7
ENERGY SOURCES
Elektrowatt AG-/- ......................................... SWTZ 2,927 1,165,987 0.7
ELECTRICAL & GAS UTILITIES
ABB Asea Brown Boveri Ltd. - Bearer ....................... SWTZ 913 1,136,132 0.6
ENERGY EQUIPMENT & SERVICES
Korea Electric Power Corp. ................................ KOR 26,000 759,169 0.4
ELECTRICAL & GAS UTILITIES
Yukong Ltd.: .............................................. KOR -- -- --
OIL
New-/- .................................................. -- 1,789 32,956 --
New 2-/- ................................................ -- 144 2,653 --
------------
9,944,861
------------
Consumer Durables (4.4%)
Futuris Corp., Ltd. ....................................... AUSL 1,248,100 1,705,515 0.9
AUTO PARTS
Bridgestone Corp. ......................................... JPN 85,000 1,615,411 0.9
AUTO PARTS
Volkswagen AG ............................................. GER 3,844 1,599,584 0.9
AUTOMOBILES
BBA Group PLC ............................................. UK 234,740 1,422,909 0.8
MULTI-INDUSTRY
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables (Continued)
Sharp Corp. ............................................... JPN 74,000 $ 1,054,768 0.6
CONSUMER ELECTRONICS
Valeo S.A. ................................................ FR 8,400 518,919 0.3
AUTO PARTS
------------
7,917,106
------------ -----
TOTAL EQUITY INVESTMENTS (cost $135,759,279) ................ 162,911,278 90.1
------------ -----
<CAPTION>
NO. OF % OF NET
WARRANTS COUNTRY WARRANTS ASSETS
- ------------------------------------------------------------- -------- ----------- -------------
<S> <C> <C> <C> <C>
Straits Steamship Land Ltd. Warrants, expire
12/12/00-/- .............................................. SING 74,250 80,153 0.1
CONGLOMERATE
Thai Farmers Bank Ltd. Warrants, expire 9/15/02-/- ........ THAI 7,000 6,620 --
BANKS-MONEY CENTER
------------ -----
TOTAL WARRANTS (cost $48,726) ............................... 86,773 0.1
------------ -----
<CAPTION>
% OF NET
REPURCHASE AGREEMENT ASSETS
- ------------------------------------------------------------- -------------
<S> <C> <C> <C> <C>
Dated December 31, 1996, with State Street Bank & Trust
Co., due January 2, 1997, for an effective yield of 6.25%,
collateralized by $20,080,000 U.S. Treasury Notes, 6.125%
due 3/31/98 (market value of collateral is $20,504,050,
including accrued interest). (cost $20,100,489) .......... 20,100,489 11.1
------------ -----
TOTAL INVESTMENTS (cost $155,908,494) * .................... 183,098,540 101.3
Other Assets and Liabilities ................................ (2,278,697) (1.3)
------------ -----
NET ASSETS .................................................. $180,819,843 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{/\} Australian currency denominated.
* For Federal income tax purposes, cost is $156,287,161 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 31,053,807
Unrealized depreciation: (4,242,428)
-------------
Net unrealized appreciation: $ 26,811,379
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
SEC--Share Entitlement Certificate
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1996
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1996, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 3.0 3.0
Brazil (BRZL/BRL) .................... 1.2 1.2
France (FR/FRF) ...................... 4.1 4.1
Germany (GER/DEM) .................... 4.2 4.2
Hong Kong (HK/HKD) ................... 4.3 4.3
Italy (ITLY/ITL) ..................... 2.7 2.7
Japan (JPN/JPY) ...................... 8.2 8.2
Korea (KOR/KRW) ...................... 0.8 0.8
Mexico (MEX/MXN) ..................... 1.2 1.2
Netherlands (NETH/NLG) ............... 3.5 3.5
New Zealand (NZ/NZD) ................. 3.6 3.6
Norway (NOR/NOK) ..................... 0.6 0.6
Portugal (PORT/PTE) .................. 1.2 1.2
Singapore (SING/SGD) ................. 2.8 0.1 2.9
Spain (SPN/ESP) ...................... 2.5 2.5
Sweden (SWDN/SEK) .................... 2.2 2.2
Switzerland (SWTZ/CHF) ............... 3.4 3.4
Thailand (THAI/THB) .................. 1.3 1.3
United Kingdom (UK/GBP) .............. 15.4 15.4
United States & Other (US/USD) ....... 23.9 9.8 33.7
------ ----- ----- -----
Total ............................... 90.1 0.1 9.8 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $180,819,843.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1996
<TABLE>
<CAPTION>
MARKET VALUE CONTRACT DELIVERY UNREALIZED
CONTRACTS TO SELL: (U.S. DOLLARS) PRICE DATE APPRECIATION
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
French Francs........................... 3,869,685 5.09700 02/06/97 $ 54,192
French Francs........................... 2,362,192 5.07000 02/19/97 44,120
Japanese Yen............................ 2,707,607 111.74500 02/06/97 82,227
Japanese Yen............................ 2,607,668 110.48000 02/12/97 107,756
Japanese Yen............................ 2,779,774 110.38500 02/12/97 117,359
Swiss Francs............................ 4,068,462 1.31200 03/19/97 47,392
-------------- --------------
Total Contracts to Sell (Receivable
amount $18,848,434).................. 18,395,388 453,046
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS
PERCENTAGE OF NET ASSETS IS 10.17%.
Total Open Forward Foreign Currency
Contracts............................ $ 453,046
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $135,808,005) (Note 1)........................ $162,998,051
Repurchase agreement, at value and cost................................................. 20,100,489
U.S. currency................................................................. $ 106
Foreign currencies (cost $607,474)............................................ 609,578 609,684
--------
Receivable for securities sold.......................................................... 3,643,988
Receivable for open forward foreign currency contracts, net (Note 1).................... 453,046
Receivable for Fund shares sold......................................................... 310,906
Dividends and dividend withholding tax reclaims receivable.............................. 270,020
Miscellaneous receivable................................................................ 16,481
Cash held as collateral for securities loaned (Note 1).................................. 10,713,362
------------
Total assets.......................................................................... 199,116,027
------------
Liabilities:
Payable for Fund shares repurchased..................................................... 5,331,764
Payable for securities purchased........................................................ 1,778,696
Payable for investment management and administration fees (Note 2)...................... 149,192
Payable for printing and postage expenses............................................... 103,584
Payable for service and distribution expenses (Note 2).................................. 81,488
Payable for transfer agent fees (Note 2)................................................ 68,179
Payable for professional fees........................................................... 42,534
Payable for registration and filing fees................................................ 11,143
Payable for Trustees' fees and expenses (Note 2)........................................ 6,053
Payable for fund accounting fees (Note 2)............................................... 3,553
Payable for custodian fees (Note 1)..................................................... 241
Other accrued expenses.................................................................. 6,395
Collateral for securities loaned (Note 1)............................................... 10,713,362
------------
Total liabilities..................................................................... 18,296,184
------------
Net assets................................................................................ $180,819,843
------------
------------
Class A:
Net asset value and redemption price per share ($125,555,861 DIVIDED BY 7,514,931 shares
outstanding)............................................................................. $ 16.71
------------
------------
Maximum offering price per share (100/95.25 of $16.71) *.................................. $ 17.54
------------
------------
Class B:+
Net asset value and offering price per share ($52,809,064 DIVIDED BY 3,253,378 shares
outstanding)............................................................................. $ 16.23
------------
------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($2,454,918
DIVIDED BY 146,000 shares outstanding)................................................... $ 16.81
------------
------------
Net assets consist of:
Paid in capital (Note 4)................................................................ $146,425,969
Accumulated net realized gain on investments and foreign currency transactions.......... 6,708,041
Net unrealized appreciation on translation of assets and liabilities in foreign
currencies............................................................................. 495,787
Net unrealized appreciation of investments.............................................. 27,190,046
------------
Total -- representing net assets applicable to capital shares outstanding................. $180,819,843
------------
------------
<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.
F9
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
STATEMENT OF OPERATIONS
Year ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $328,211)............................... $ 3,040,557
Interest income............................................................................ 552,838
Other income............................................................................... 1,634
-----------
Total investment income.................................................................. 3,595,029
-----------
Expenses:
Investment management and administration fees (Note 2)..................................... 1,885,798
Service and distribution expenses: (Note 2)
Class A..................................................................... $ 477,375
Class B..................................................................... 551,243 1,028,618
-----------
Transfer agent fees (Note 2)............................................................... 532,176
Custodian fees (Note 1).................................................................... 123,165
Printing and postage expenses (Note 2)..................................................... 82,142
Audit fees................................................................................. 51,972
Fund accounting fees....................................................................... 48,430
Registration and filing fees............................................................... 40,265
Trustees' fees and expenses (Note 2)....................................................... 15,372
Legal fees................................................................................. 11,712
Other expenses............................................................................. 14,952
-----------
Total expenses before reductions......................................................... 3,834,602
-----------
Expense reductions (Notes 1 & 5)....................................................... (157,930)
-----------
Total net expenses....................................................................... 3,676,672
-----------
Net investment loss.......................................................................... (81,643)
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized gain on investments.............................................. 18,255,475
Net realized gain on foreign currency transactions............................ 3,244,503
-----------
Net realized gain during the year........................................................ 21,499,978
Net change in unrealized appreciation on translation of assets and liabilities
in foreign currencies........................................................ 111,081
Net change in unrealized appreciation of investments.......................... (1,481,639)
-----------
Net unrealized depreciation during the year.............................................. (1,370,558)
-----------
Net realized and unrealized gain on investments and foreign currencies....................... 20,129,420
-----------
Net increase in net assets resulting from operations......................................... $20,047,777
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- -----------------
<S> <C> <C>
Decrease in net assets
Operations:
Net investment loss........................................................... $ (81,643) $ (458,117)
Net realized gain on investments and foreign currency transactions............ 21,499,978 9,995,501
Net change in unrealized appreciation (depreciation) on translation of assets
and liabilities in foreign currencies........................................ 111,081 (595,367)
Net change in unrealized appreciation (depreciation) of investments........... (1,481,639) 11,340,575
----------------- -----------------
Net increase in net assets resulting from operations........................ 20,047,777 20,282,592
----------------- -----------------
Class A:
Distributions to shareholders: (Note 1)
From net realized gain on investments......................................... (13,087,564) (3,836,040)
Class B:
Distributions to shareholders: (Note 1)
From net realized gain on investments......................................... (5,727,628) (1,484,807)
Advisor Class:
Distributions to shareholders: (Note 1)
From net realized gain on investments......................................... (175,598) (44,576)
----------------- -----------------
Total distributions......................................................... (18,990,790) (5,365,423)
----------------- -----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.............................. 290,210,249 134,626,823
Decrease from capital shares repurchased...................................... (314,217,462) (180,807,770)
----------------- -----------------
Net decrease from capital share transactions................................ (24,007,213) (46,180,947)
----------------- -----------------
Total decrease in net assets.................................................... (22,950,226) (31,263,778)
Net assets:
Beginning of year............................................................. 203,770,069 235,033,847
----------------- -----------------
End of year*.................................................................. $ 180,819,843 $ 203,770,069
----------------- -----------------
----------------- -----------------
--------------
*Includes undistributed net investment income of............................. $ 0 $ 0
----------------- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F11
<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+
----------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1996 * 1995 * 1994 1993 * 1992
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.82 $ 15.53 $ 17.47 $ 14.47 $ 14.07
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss).......... 0.03 0.00 0.00 0.04 0.07
Net realized and unrealized gain
(loss) on investments................ 1.79 1.74 (1.16) 3.92 0.39
---------- ---------- ---------- ---------- ----------
Net increase (decrease) from
investment operations.............. 1.82 1.74 (1.16) 3.96 0.46
---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income............ -- -- -- -- --
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.......... $ 16.71 $ 16.82 $ 15.53 $ 17.47 $ 14.47
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total investment return (c)............. 10.92% 11.23% (6.65)% 27.6% 3.3%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 125,556 $ 145,982 $ 182,467 $ 193,997 $ 141,310
Ratio of net investment income (loss) to
average net assets..................... 0.14% (0.06)% (0.01)% 0.9% 0.5%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.72% 1.87% 1.81% 1.9% 2.1%
Without expense reductions............ 1.80% 1.93% 1.84% --** --**
Portfolio turnover rate++++............. 80% 113% 86% 92% 95%
Average commission rate per share paid
on portfolio transactions++++.......... $ 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 commision rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* 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.
(a) Not annualized
(b) Annualized
(c) Total investment return does not include sales charges.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F12
<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++ ADVISOR CLASS+++
------------------------------------------------- ----------------------------
APRIL 1, 1993 YEAR JUNE 1, 1995
YEAR ENDED DECEMBER 31, TO ENDED TO
---------------------------------- DECEMBER 31, DECEMBER 31, DECEMBER 31,
1996 * 1995 * 1994 1993 * 1996 * 1995 *
---------- ---------- ---------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.50 $ 15.34 $ 17.39 $ 15.67 $ 16.86 $ 15.26
---------- ---------- ---------- ------------- ------------- -------------
Income from investment operations:
Net investment income (loss).......... (0.09) (0.12) (0.11) (0.04) 0.09 0.03
Net realized and unrealized gain
(loss) on investments................ 1.75 1.73 (1.16) 2.72 1.79 2.02
---------- ---------- ---------- ------------- ------------- -------------
Net increase (decrease) from
investment operations.............. 1.66 1.61 (1.27) 2.68 1.88 2.05
---------- ---------- ---------- ------------- ------------- -------------
Distributions to shareholders:
From net investment income............ -- -- -- -- -- --
From net realized gain on
investments.......................... (1.93) (0.45) (0.78) (0.96) (1.93) (0.45)
---------- ---------- ---------- ------------- ------------- -------------
Total distributions................. (1.93) (0.45) (0.78) (0.96) (1.93) (0.45)
---------- ---------- ---------- ------------- ------------- -------------
Net asset value, end of period.......... $ 16.23 $ 16.50 $ 15.34 $ 17.39 $ 16.81 $ 16.86
---------- ---------- ---------- ------------- ------------- -------------
---------- ---------- ---------- ------------- ------------- -------------
Total investment return (c)............. 10.16% 10.52% (7.32)% 17.3%(a) 11.31% 13.46%(a)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 52,809 $ 56,095 $ 52,567 $ 20,592 $ 2,455 $ 1,693
Ratio of net investment income (loss) to
average net assets..................... (0.51)% (0.71)% (0.66)% (0.4)%(b) 0.49% 0.29%(b)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.37% 2.52% 2.46% 2.5%(b) 1.37% 1.52%(b)
Without expense reductions............ 2.45% 2.58% 2.49% --* * 1.45% 1.58%(b)
Portfolio turnover rate++++............. 80% 113% 86% 92% 80% 113%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0263 N/A N/A N/A $ 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 commision rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* 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.
(a) Not annualized
(b) Annualized
(c) Total investment return does not include sales charges.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F13
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
- --------------------------------------------------------------------------------
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
F14
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
the value of the currency changes unfavorably. The Fund may enter into Forward
Contracts in connection with planned purchases or sales of securities, or to
hedge against adverse fluctuations in exchange rates between currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When the Fund writes a call or put option, an amount equal to the premium
received is included in the Fund's "Statement of Assets and Liabilities" as an
asset and an equivalent liability. The amount of the liability is subsequently
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 on 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 then normal settlement terms. This may increase the risk if
the other party to the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At December 31, 1996, stocks with an aggregate value of approximately
$10,156,208 were on loan to brokers. The loans were secured by cash collateral
of $10,713,362, received by the Fund. Cash collateral is received by the Fund
against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For the year ended December 31, 1996,
the Fund received securities lending fees of $74,109 which were used to reduce
custodian fees.
(I) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, or excise tax on income
and capital gains.
F15
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
(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 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 restrictions 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 the Bank of Boston. The arrangement with the bank allows all
specified funds to borrow an aggregate maximum amount of $100,000,000.
2. RELATED PARTIES
Chancellor LGT Asset Management is the Fund's investment manager and
administrator. On October 31, 1996, Chancellor Capital Management, Inc. merged
with LGT Asset Management, Inc., and the surviving entity was renamed Chancellor
LGT Asset Management, Inc. 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 year ended December 31, 1996, GT Global retained $21,390
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 $204 for the year ended December 31, 1996. GT Global also makes
ongoing shareholder servicing and trail commission payments to dealers whose
clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, GT Global from its own resources pays commissions to dealers through which
the sales are made. Certain redemptions of Class B shares made within six years
of purchase are subject to CDSC's, in accordance with the Fund's current
prospectus. During the year ended December 31, 1996, GT Global collected CDSC's
in the amount of $260,826. 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.
F16
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
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 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 year ended December 31, 1996, purchases and sales of investment
securities by the Fund, other than U.S. government obligations and short-term
investments, aggregated $144,310,622 and $181,937,744, respectively. There were
no purchases or sales of U.S. government obligations by the Fund during the
period.
4. CAPITAL SHARES
At December 31, 1996, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the Fund
were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1996 DECEMBER 31, 1995
-------------------------- --------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold................................................. 14,357,786 $ 250,471,583 6,947,488 $ 112,415,112
Shares issued in connection with reinvestment of
distributions............................................. 670,053 11,082,654 198,449 3,306,220
----------- ------------- ----------- -------------
15,027,839 261,554,237 7,145,937 115,721,332
Shares repurchased.......................................... (16,192,391) (283,412,820) (10,218,028) (163,317,151)
----------- ------------- ----------- -------------
Net decrease................................................ (1,164,552) $ (21,858,583) (3,072,091) $ (47,595,819)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1996 DECEMBER 31, 1995
-------------------------- --------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------- ----------- -------------
Shares sold................................................. 854,412 $ 14,531,361 1,002,715 $ 15,948,611
Shares issued in connection with reinvestment of
distributions............................................. 308,538 4,961,416 79,120 1,293,841
----------- ------------- ----------- -------------
1,162,950 19,492,777 1,081,835 17,242,452
Shares repurchased.......................................... (1,309,880) (22,330,821) (1,107,459) (17,390,637)
----------- ------------- ----------- -------------
Net decrease................................................ (146,930) $ (2,838,044) (25,624) $ (148,185)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
JUNE 1, 1995
(COMMENCEMENT OF SALE OF
YEAR ENDED SHARES)
DECEMBER 31, 1996 TO DECEMBER 31, 1995
-------------------------- --------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------- ----------- -------------
Shares sold................................................. 521,049 $ 8,987,637 103,579 $ 1,618,463
Shares issued in connection with reinvestment of
distributions............................................. 10,546 175,598 2,669 44,576
----------- ------------- ----------- -------------
531,595 9,163,235 106,248 1,663,039
Shares repurchased.......................................... (485,979) (8,473,821) (5,864) (99,982)
----------- ------------- ----------- -------------
Net increase................................................ 45,616 $ 689,414 100,384 $ 1,563,057
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
F17
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the year ended December 31, 1996, the Fund's
expenses were reduced by $83,821 under these arrangements.
- --------------
FEDERAL TAX INFORMATION (UNAUDITED):
For its fiscal year ended December 31, 1996, the total amount of income received
by the Fund from sources within foreign countries and possessions of the United
States was approximately $.28 per share (representing an approximate total of
$2,728,868). The total amount of taxes paid by the Fund to such countries was
approximately $.05 per share (representing an approximate total of $467,527).
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$17,732,920 as a capital gain dividend for the fiscal year ended December 31,
1996.
Pursuant to Section 854 of the Internal Revenue Code, the Fund designates 54% of
ordinary income dividends paid (including short-term capital gain distributions,
if any) by the Fund as income qualifying for the dividends received deduction
for corporations for the fiscal year ended
December 31, 1996.
F18
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
GT GLOBAL MUTUAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL GT GLOBAL
DIRECTLY AT 1-800-824-1580. THE PROSPECTUS CONTAINS MORE COMPLETE
INFORMATION, INCLUDING CHARGES, EXPENSES AND RISKS. INVESTORS SHOULD READ
THE PROSPECTUS CAREFULLY BEFORE INVESTING.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture, or sell
telecommunications services or equipment
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve, or maintain a country's infrastructure
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore, or develop natural resources
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
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 large cap equity securities of U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
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THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
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[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
GT GLOBAL WORLDWIDE GROWTH FUND
WORAR702M
