<PAGE>
GT GLOBAL MANAGEMENT
OVER 25 YEARS OF INVESTING WORLDWIDE
GT GLOBAL AMERICA FUNDS
SEMIANNUAL REPORT
June 30, 1997
[LOGO]
<PAGE>
GT GLOBAL AMERICA FUNDS
TABLE OF CONTENTS
Message from the Chairman. . . . . . . . . . . . . . . . . 2
Three Funds, Three Levels of Opportunity . . . . . . . . . 3
Market Review and Outlook . . . . . . . . . . . . . . . . 7
GT Global America Small Cap Growth Fund . . . . . . . . . 8
GT Global America Mid Cap Growth Fund . . . . . . . . . . 11
GT Global America Value Fund . . . . . . . . . . . . . . . 14
Financials . . . . . . . . . . . . . . . . . . . . . . . . F1
List of Funds . . . . . . . . . . . . . . Inside Back Cover
The views of the Funds' management as described in this report are as of the
date written. Portfolio holdings and allocations are as of June 30, 1997,
unless otherwise noted. Views, portfolio holdings and allocations may have
changed subsequently.
<PAGE>
MESSAGE FROM THE CHAIRMAN
Dear Investor,
This report is written in a style we hope you find enjoyable to read and easy
to understand. Our intention is to provide our shareholders with meaningful
information about the relative performance of GT Global Mutual Funds.
We describe our management process and offer insights into the Fund's
investment strategy. Companies in which the Fund invests are discussed, as
well as issues pertinent to decisions affecting the Fund. Biographical
information on portfolio managers' background and experience is also
included, and through our question and answer format, we make it possible for
shareholders to be included in the thought processes that form the basis of
their investment decisions. Additionally, this report contains performance
illustrations that show the historical returns of a hypothetical investment
compared to an appropriate benchmark.
We make every effort to communicate as clearly as possible because we want
you, our shareholders, to have a useful understanding of what is happening
with your investments in GT Global Mutual Funds, and why.
We would also like to emphasize that today-as global investing continues to
become increasingly complex, information travels as quickly as a keystroke,
and critical decisions must be made within shorter time frames-prudent
advice, professional management, global diversification and investing for the
long term have never been more important.
As always, we appreciate and value your support of GT Global Mutual Funds.
Sincerely,
William J. Guilfoyle
Chairman of the Board and President
GT Global Mutual Funds
2
<PAGE>
THREE FUNDS, THREE LEVELS OF OPPORTUNITY
Historically, different sized U.S. companies have shown different risk and
return characteristics. The largest companies, such as those in the Standard
& Poor's 500 Index, have shown consistent returns with a moderate degree of
day-to-day price fluctuation. The smallest companies, such as those traded on
NASDAQ, have shown bursts of outstanding performance, but with a higher range
of price fluctuation. Medium-sized companies, represented by the S&P 400 Mid
Cap Index, have often outperformed larger and smaller companies, but have
generally produced returns and price fluctuations in ranges between small and
large cap stocks.
Of course, the U.S. market is continually shifting, and investment styles
move in and out of favor. Styles labeled as growth or value tend to perform
differently depending on the investment climate. With that in mind, GT Global
offers three U.S. equity mutual funds for investing in different
capitalization segments:
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests primarily in companies with a market capitalization of up to $1
billion at the time of purchase. (The Fund's market capitalization range
changed as of January 2, 1997; previously, the Fund invested primarily in
companies having a market capitalization of up to $500 million at the time of
purchase.) Because small cap stocks have traditionally proven more volatile
than larger, more broadly held stocks, investors in this Fund should be
willing to assume a greater degree of price fluctuation. To seek to reduce
price fluctuation, the Fund's portfolio managers adhere to a disciplined
investment process when selecting stocks for the portfolio.
GT GLOBAL AMERICA MID CAP GROWTH FUND*
Invests primarily in companies with a market capitalization of $1 billion to
$5 billion at the time of purchase. (The Fund's market capitalization range
changed as of January 2, 1997; previously, the Fund normally initially
focused on companies having a market capitalization of $2 billion or less at
the time of purchase.)
GT GLOBAL AMERICA VALUE FUND
Invests primarily in companies with a market capitalization of $500 million
and up at the time of purchase, and that our investment team has determined
to be priced low relative to the companies' fair value and long-term
potential.
GT GLOBAL AMERICA FUNDS
The GT Global America Funds offer versatile investment opportunities that can
serve as a solid foundation to your investment portfolio.
[Illustration of individual market capitalization
ranges of the three America Funds]
- ---------------
* Formerly GT Global America Growth Fund.
3
<PAGE>
OUR GROWTH INVESTMENT PROCESS:
COMBINING QUANTITATIVE AND QUALITATIVE RESEARCH
GT Global adheres to an investment process designed to meet each Fund's
objective and deliver the consistent, competitive results investors expect.
Our growth equity managers seek to invest in companies with sustainable
above-average growth at an attractive price. We invest in companies that have:
- Solid market franchises - Strong management
- Favorable earnings momentum - Strict cost controls
- Potential for positive - Clear evidence of
earnings surprises undervaluation
COMBINATION OF FUNDAMENTAL AND QUANTITATIVE RESEARCH
Our experienced in-house team of career research analysts provides the engine
of our growth investing approach. These analysts are specialists, having
spent years covering their industries, and provide us with unparalleled
access to the companies they follow. The primary goals of our research effort
are to develop and maintain well-supported, non-consensus perspectives on
these companies. Research is conducted by contacting company management,
competitors, suppliers, distributors and customers to determine a company's
fundamental position and its potential for change.
[Flowchart showing investment process]
As a check on forward-looking fundamental research, we utilize a proprietary,
quantitative stock selection model developed more than 13 years ago by our
Quantitative Equity Research Group. Quantitative analysts continually
research and update the model.
FORMAL RISK CONTROL
We manage risk at each stage of the investment process in a fully integrated
manner. We also manage portfolio volatility by increasing or reducing our
actual industry exposures relative to our normal weights to limit our
exposure in response to our market outlook and additional factors, such as
valuation and earnings momentum. This permits flexibility relative to our
growth benchmark, yet ensures against undue volatility associated with
overexposure to one industry.
A DEFINED RANKING SYSTEM
The quantitative perspective provides a critical independent contribution,
but it is the individual analyst's input that primarily drives the stock
selection decision. At all times, at least 85% of portfolio holdings must be
ranked in the top 30% of our universe. This systematic approach to stock
selection helps ensure that we own our best investment ideas.
[Depiction of stock selection process]
4
<PAGE>
PORTFOLIO IMPLEMENTATION AND CONTROL
Stocks are purchased from the top 30% of the valuation matrix, or when
analysts upgrade their rankings. Stocks are sold when they fall to the bottom
30% of the matrix, or when an analyst significantly lowers his/her ranking of
the stock.
The portfolio is monitored on a regular basis through our peer
review process to ensure consistency with our guidelines, our established
industry weightings and our combined stock rankings. At least 85% of
portfolio holdings must be ranked in the top 30% of our universe.
Through this disciplined investment process, you can take comfort in knowing
you're investing in well-tested companies that have demonstrated steady
performance through economic ups and downs.
A DIFFERENT APPROACH TO DETERMINING VALUE
Our value equity philosophy seeks to take advantage of inefficiently priced
securities while utilizing a disciplined and rational approach to maximize
returns. Our value strategy combines the strengths of our fundamental
research team with quantitative analysis. These resources come together in a
clearly defined, repeatable process.
We concentrate on companies with moderate growth where there is a catalyst.
Stocks selling at a discount should reach full value within our 18- to
36-month time frame. By taking this approach, we seek to ensure that we only
buy at a discount to current fair value, and that the fair value increases
over time.
STOCK SELECTION
Our commitment to in-house research is one of our primary assets. Research
focuses on identifying prospective changes in business fundamentals and
valuation inefficiencies. Our analysts cover specific industries and know
more than just the business financials. They are familiar with the company's
management, products, and critical industry variables that could determine
future prospects.
QUANTITATIVE CRITERIA
A COMBINED DISCIPLINE
To add objectivity to the fundamental research, we conduct a series of
quantitative screens that include price-to-book, cash flow, price/earnings,
revenue per share and volatility.
[Illustration of process used to make
up focus list of stock buy candidates]
PORTFOLIO CONSTRUCTION
Fundamental and quantitative data are blended in the Value Combined Ratings
Matrix, which produces an overall ranking of all stocks on a scale of 1 to 5.
The Value Matrix identifies what we believe are the best 150 value
investments. The top 30% make up the focus list of buy candidates; the stocks
in the bottom 30% of the Matrix fall into the sell category.
We also establish a price target for each stock we purchase. A stock is sold
if it reaches our price target earlier than anticipated, indicating fair
value has been attained.
In today's fast-paced environment, this combination of fundamental and
quantitative resources enables identification of opportunities that may be
overlooked by using either discipline alone. We believe our process sets us
apart from the typical value manager.
5
<PAGE>
THE TEAM APPROACH TO INVESTING
Teamwork among talented investment professionals is at the center of our
investment discipline. Our America Fund managers, with an average of 17 years
of industry experience, are supported by a group of seasoned investment
analysts. We believe working together as a team creates a combination of
strengths and facilitates the investment process. Within this framework,
individual team members concentrate on their defined industries, ensuring a
deeper and broader group understanding of companies, markets and world
events. The continual exchange of knowledge and ideas promotes style
integrity and reflects our belief that the key to achieving consistent
results is following a disciplined investment process.
ABOUT THE PORTFOLIO MANAGERS(1)
ELLEN H. ADAMS - Head of North American Equity since 1995; Director of Equity
Research from May 1993 through 1996; and currently a growth Portfolio
Manager. Previously, she was a Portfolio Manager for Neuberger & Berman. Ms.
Adams received an M.B.A. in Finance with Distinction from the Wharton School
of the University of Pennsylvania.
TED UJAZDOWSKI - Director of the America Value Group since 1987 and Portfolio
Manager since 1983. Mr. Ujazdowski began his career in 1973 as a Credit
Analyst for the Federal Reserve Bank of New York. He joined Citicorp
Investment Management, Chancellor Capital Management's predecessor, in 1977.
Mr. Ujazdowski holds a B.S. from Fordham University and an M.B.A. from New
York University.
ADAM D. SCHEINER - Portfolio Manager of the America Value Fund since 1997 and
an Analyst since June 1993. Previously, Mr. Scheiner was a Securities Analyst
at Prudential Securities from 1989 until 1993. Mr. Scheiner received an
M.B.A. in Finance, with honors, from New York University.
BRENT CLUM - Portfolio Manager of the America Mid Cap Growth Fund. Mr. Clum
joined Chancellor LGT Asset Management in June 1995, after five years at T.
Rowe Price where he provided analytical coverage. Previously, he was a Senior
Tax Accountant for Arthur Anderson's International and Energy Departments.
Mr. Clum received an M.B.A. from Harvard University Graduate School of
Business. He also holds C.F.A. and C.P.A. designations.
MARK J. CUNNEEN - Portfolio Manager of the America Small Cap Growth Fund. Mr.
Cuneen has been with Chancellor LGT Asset Management since 1992. From
February 1992 to December 1992, Mr. Cunneen was President of DC Capital,
Inc., an investment management firm. He was also Vice President of Equity
Investments at Massachusetts Financial Services from 1987 until 1992. Mr.
Cunneen earned an M.B.A. from the Wharton School of the University of
Pennsylvania.
RICHARD COLLINS - Portfolio Manager of the America Value Fund since 1997 and
Managing Director since 1993. Previously, Mr. Collins was Head of Energy
Research at CIMI and spent 10 years at Scudder, Stevens & Clark. From 1970 to
1973, he was an oil and gas Analyst at Salomon Brothers and began his career
in 1967 at Dean Witter.
[PHOTO]
- -C- Frederick Charles
THE GT GLOBAL AMERICA FUNDS' PORTFOLIO MANAGERS: (FRONT, LEFT TO RIGHT) ADAM
SCHEINER, TED UJAZDOWSKI. (BACK, LEFT TO RIGHT) BRENT CLUM, ELLEN ADAMS, MARK
CUNNEEN (RICHARD COLLINS NOT FEATURED).
(1) The managers were all employees of Chancellor Capital Management until
October 31, 1996, when LGT Asset Management merged with Chancellor. The
resulting entity was renamed Chancellor LGT Asset Management and is the
investment advisor to GT Global Mutual Funds.
6
<PAGE>
MARKET REVIEW AND OUTLOOK
The second quarter of 1997 was one of the strongest in history for U.S.
equity market performance. The pessimism prevalent at the end of March
shifted to surging optimism on a confluence of positive trends. The S&P 500
rose 17.5%(1) and has nearly doubled over the past two-and-a-half years. In
contrast to the previous four quarters, when the largest large cap stocks had
the biggest gains, the rally in the second quarter of this year was broadly
based with small and mid cap issues participating strongly.
For small cap stocks this proved the best quarter since the first quarter of
1991 as earnings of small cap companies began to turn around. Prior to the
second quarter, equity markets had been bolstered by the largest large cap
stocks while small and mid cap stocks languished. In that environment small
growth stocks, in particular, retreated because of stretched valuations and
the higher risk associated with small and midcap companies. In view of the
extended market cycle, investors flocked to large cap stocks, attracted by
their earnings stability and liquidity. Additionally, the flight toward large
cap stocks was precipitated in part by the rising popularity of larger-cap
index tracker funds.
In the second quarter, however, markets favored a broad range of stocks in
terms of capitalization. In addition, both equity and fixed income markets
benefited from what could be described as the most positive investment
environment in several decades. Controlled inflation, a slowdown in the
vigorous first quarter GDP growth, strong corporate earnings, a shrinking
federal budget deficit and progress toward a balanced budget deal in Congress
all contributed to the second quarter's favorable atmosphere.
Our view remains positive for the third quarter. The basic backdrop continues
to be encouraging-low inflation, favorable demographics, rising savings
rates, and strong corporate profits growth. In addition, demand for equities
is still strong, stimulated by above-trend inflows to mutual funds.
Exceptionally robust merger and takeover activity, combined with ongoing
stock buybacks, is mitigating the supply of equities and support prices. We
believe all these factors point to continued positive, long-term trends for
financial markets.
UPTREND IN U.S. MARKET
[CHART]
S&P 500 Index Russell 2000 Index
------------- ------------------
12/30/94 100 100
100.31 99.09
101.46 99.84
101.2 99.71
102.42 99.25
104.22 100.17
104.83 101.99
104.94 101.74
106.28 102.04
105.69 102.61
106.6 102.26
107.89 102.78
109.08 103.39
109.02 104.16
110.27 103.86
110.88 105.44
110.72 104.85
112.07 106.31
113.25 106.1
114.43 107.78
113.05 108.06
114.02 108.07
115.95 108.75
114.95 109.93
117.54 112.16
119.69 113.44
118.61 113.29
121.14 115.57
121.91 117.78
120.54 116.04
122.57 119.52
121.7 119.14
120.87 119.46
121.76 121.54
121.95 121.57
122.77 122.29
124.69 125.59
127.02 125.54
126.66 124.64
127.25 123.97
126.83 120.55
127.27 120.65
127.91 120.95
126.22 117.65
128.59 120.94
129.06 121.55
130.66 121.36
130.64 120.73
132.16 123.72
134.45 124.44
134.2 123.99
133.25 124.74
12/29/95 134.11 126.21
134.28 124.7
131.04 121.88
133.22 121.94
135.35 124.31
138.45 126.91
142.92 128.26
141.09 128.45
143.51 130.12
140.3 129.45
137.94 127.5
139.66 129.85
141.66 131.6
140.55 132.12
142.8 133.72
138.64 132.28
140.46 135.21
142.28 138.93
139.71 138.54
141.98 140.26
145.65 144.04
147.74 145.63
145.69 144.53
146.6 143.33
144.98 141.83
145.2 137.89
146.02 138.45
143.15 135.72
140.7 129.29
139.08 128.43
138.46 125.65
144.25 129.58
144.16 130.79
144.84 131.37
145.24 132.52
141.96 133.36
142.77 133.45
148.18 136.12
149.59 136.93
149.41 138.01
152.73 139.52
152.56 138.96
154.77 138.94
152.62 136.99
153.24 135.71
159.13 137.63
160.61 138.41
163.03 139.77
164.83 141.44
161.04 142
158.65 141.47
163.06 142.48
12/27/96 164.78 143.46
162.87 144.53
165.37 146.23
169 146.94
167.77 147.04
171.18 147.57
171.92 146.49
176.04 147.44
174.57 146.34
172.19 143.81
175.27 145.97
172.7 144.21
170.73 140.49
168.5 139.38
165.02 136.15
160.61 135.5
166.86 136.5
166.65 134.15
177.01 141.39
179.58 144.36
180.67 145.9
184.43 150.05
184.7 152.08
186.82 154.63
194.5 156.6
195.68 157.21
6/27/97 193.2 156.78
THANKS TO A CONTINUED FAVORABLE ECONOMIC ENVIRONMENT, INCLUDING SUBDUED
INFLATION, TECHNOLOGICAL ADVANCEMENTS AND IMPROVEMENTS IN PRODUCTIVITY, U.S.
MARKETS HAVE ENJOYED SIX YEARS OF OVERALL POSITIVE RETURNS. IN FACT, OVER THE
PAST TWO-AND-A-HALF YEARS, THE S&P 500 INDEX, WHICH REPRESENTS 500 OF THE
LARGEST PUBLICLY TRADED U.S. COMPANIES, HAS NEARLY DOUBLED. MEANWHILE,
DESPITE THE LAGGING PERFORMANCE OF THE RUSSELL 2000 INDEX, WHICH REFLECTS THE
PERFORMANCE OF SMALL CAPITALIZATION STOCKS, ITS OVERALL TREND HAS BEEN
POSITIVE.(2)
Indices rebased to 12/30/94.
(1) The index performance shown is for illustrative purposes only and is not
intended to represent the performance of the GT Global America Funds. Please
see pages 8, 11, and 14 for specific Fund performance.
(2) Source: Datastream, July 1997.
7
<PAGE>
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
PERFORMANCE SUMMARY
INVESTMENT OBJECTIVE AND STRATEGY
The Fund seeks long-term capital appreciation by investing primarily in
equity securities of small capitalization companies domiciled in the United
States. As of January 2, 1997, the Fund's market capitalization range
changed. It now invests primarily in companies having a market capitalization
of up to $1 billion at the time of purchase. Previously, the Fund invested in
companies having a market capitalization of up to $500 million at the time of
purchase.
[CHART]
GT GLOBAL AMERICA SMALL CAP FUND S&P 500 INDEX
-------------------------------- -------------
CLASS A SHARES
10/18/95 9,525 10,000
9,558 9,746
9,742 10,156
9,833 10,424
9,900 10,412
10,458 10,737
10,867 10,955
11,883 11,541
12,325 11,996
11,608 11,504
7/31/96 10,717 10,499
10,875 11,108
11,683 11,543
11,300 11,365
11,183 11,833
11,191 12,143
11,441 12,386
10,458 12,085
9,627 11,515
9,519 11,547
10,753 12,832
6/30/97 11,343 13,382
CLASS B SHARES
10/18/95 10,000 10,000
10,035 9,746
10,219 10,156
10,306 10,424
10,367 10,412
10,954 10,737
11,374 10,955
12,441 11,541
12,887 11,996
12,135 11,504
11,199 10,499
8/31/96 11,356 11,108
12,196 11,543
11,785 11,365
11,654 11,833
11,661 12,143
11,914 12,386
10,891 12,085
10,008 11,515
9,896 11,547
11,173 12,832
6/30/97 11,383 13,382
The charts above show the performance of the GT Global America Small Cap
Growth Fund Class A and Class B shares, versus the Russell 2000 Index since
the Fund's inception. The first chart assumes a hypothetical $10,000 initial
investment in Class A shares and reflects all Fund expenses and the maximum
4.75% sales charge. For Class B shares, results reflect 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
October 18, 1995, would have been worth $11,980 on June 30, 1997.
AVERAGE ANNUAL TOTAL RETURNS %(1)
June 30, 1997
WITHOUT SALES CHARGE(2) WITH SALES CHARGE
----------------------- -----------------------
SHARE CLASS 1-YEAR LIFE OF FUND 1-YEAR LIFE OF FUND
- ---------------- ------ ------------ ------ ------------
Class A -2.29 10.83 -6.93 7.70
Class B -2.90 10.14 -7.42 7.92
Advisor Class(3) -1.91 11.22 N/A N/A
(1) Figures assume reinvestment of all dividends and capital gain
distributions at net asset value.
(2) Performance data do not reflect the maximum 4.75% sales charge or 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) 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.
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.
From time to time, the Fund's investment advisor may waive some fees and/or
reimburse some expenses, without which performance would be lower. Waivers
and reimbursements are subject to change.
8
<PAGE>
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
INTERVIEW WITH PORTFOLIO MANAGER
MARK CUNNEEN
Q HOW DID THE FUND PERFORM?
A The Fund's total return for the six months ended June 30, 1997, was 1.36%
for Class A shares (-3.46% including the maximum 4.75% sales charge); total
return for Class B shares was 1.05% (-3.95% including the maximum 5%
contingent deferred sales charge). During the same period, the Russell 2000
Index(4) returned 10.20%.
The divergence in the Fund's returns relative to the index is in part a
result of the transition in the Fund's management in early January, and
repositioning of the Fund during the first quarter.
In the first quarter, performance of particular technology stocks had an
overwhelmingly negative effect on the Fund. These stocks included companies
such as Sync Research, Pure Atria and Videoserver, whose prices fell on the
back of disappointing earnings during a period of already stretched
valuations.
In the second quarter, the reverse was true. In addition to an improved
environment for small cap stocks, stock selection also contributed to the
Fund's outperformance, 17.83% for Class A shares (excluding sales charges) to
16.21% for the Russell 2000. Companies such as Signature Resorts, HCIA and
Jones Medical performed particularly well. HCIA and Jones Medical had an
outstanding quarter due to anticipation of strong second quarter earnings,
while Signature Resorts enjoyed a run up in its share price on the back of
strong first quarter earnings and an acquisition favorably received by the
market.
Q HOW ARE YOU REPOSITIONING THE FUND?
A In general, we find two themes particularly attractive--outsourcing and
consolidation. As corporate America continues to try to control costs,
outsourcing various services that someone else can do more efficiently has
become a popular alternative.
The Fund has benefited from several interesting plays in this area and, looking
ahead, we see a continuation of the outsourcing trend, particularly in business
services companies such as advertising, computer services and temporary help.
Meanwhile, consolidation is also a theme across subsectors in the portfolio, as
smaller companies are supplementing their internal growth with acquisitions.
Acquisitions allow companies to be more cost effective and efficient in delivery
of services.
In terms of specific areas, we increased the Fund's allocation to technology,
health care and energy, and decreased its allocation to services, finance and
capital goods. The Fund is overweighted in technology, which proved to be a good
position as second quarter earnings were generally positive. Going forward,
however, we are cautious as valuations are high and the market could react
negatively to a number of shocks. In health care, we currently expect to
maintain a neutral weighting relative to the index and prefer services and
devices over some of the biotech companies. And, while we are overweighted in
energy, we continue to be somewhat concerned about the decline in oil prices
that has impacted the performance of exploration and production companies.
Q WHAT IS YOUR OUTLOOK FOR SMALL CAP STOCKS?
A The current economic environment is favorable for equities in general as
fears of Fed tightening have dissipated. We believe moderate economic growth
should produce an environment where earnings could continue to grow and
productivity expand. Small cap companies, in our opinion, should respond
favorably in this environment as companies' budgets have more room for
proprietary niche products and services. We have already seen some evidence of a
turnaround in earnings and are optimistic about small companies reporting
earnings gains at a faster rate than large cap companies. Meanwhile, small cap
stocks are still selling at about a 10% discount, relative to their historical
valuations, against larger cap stocks.
(4) The Russell 2000 Index is composed of 2,000 U.S.-domiciled common stocks
designed to measure small company stock performance. The index represents
roughly 10% of the U.S. stock market, and market capitalization of index
companies ranged from $171.7 million to $1.1 billion as of June 1997. Its
performance includes the effect of reinvested dividends and is measured in
U.S. dollars.
Indices are unmanaged, not available for direct investment and do not incur
sales charges and professional management fees.
9
<PAGE>
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
ALLOCATION OF NET ASSETS %
JUNE 30, 1997 JUNE 30, 1996
------------- -------------
SERVICES 25.1 25.7
TECHNOLOGY 22.5 10.7
HEALTH CARE 16.1 6.4
ENERGY 11.2 --
MATERIALS/BASIC INDUSTRY 6.9 2.6
CONSUMER NON-DURABLES 6.0 --
FINANCE 4.0 7.7
CAPITAL GOODS 3.7 17.2
CONSUMER DURABLES 3.0 9.3
MISC., SHORT TERM & OTHER 1.5 20.4
A complete listing of holdings and allocations may be found in the Financial
Statements section of this report.
% of
KEY PORTFOLIO HOLDINGS Net Assets
SIGNATURE RESORTS, INC. Develops and operates timeshare resorts in 3.4
North America. Directly or through wholly owned affiliates, the
company owns 19 resorts, including two in which it holds a partial
interest.
REGAL CINEMAS, INC. Operates a chain of theaters in the United 3.3
States. The company primarily shows first-run movies and has
approximately 165 multi-screen theaters. Regal also owns FunScape
entertainment center, a complex that features a 13-screen movie
theater, branded food court, play area, miniature golf and virtual
reality experiences.
NEWFIELD EXPLORATION CO. An independent oil and gas company that 3.1
explores for, develops and acquires oil and natural gas properties
located in the Gulf of Mexico.
GIBRALTAR STEEL CORP. Through its subsidiaries, the company 2.5
processes value-added steel products. Gibraltar's principal
customers include industrial manufacturers and fabricators that
require products on a just-in-time basis.
ROPER INDUSTRIES, INC. Designs, manufactures and distributes 2.5
specialty industrial products worldwide. The company primarily
serves the oil and gas, petro-chemical, power generation,
semiconductor, automotive, marine and medical industries.
CAMBREX CORP. Manufactures and markets specialty and fine 2.4
chemicals. The company's five major product categories are
pharmaceutical bulk actives, pharmaceutical intermediates, organic
intermediates, performance enhancers, and polymer systems.
LOMAK PETROLEUM, INC. Acquires, develops, explores, and enhances 2.2
oil and gas properties, principally in Texas, Oklahoma and
Appalachia. The company also owns and operates gas-gathering
systems in proximity to its principal gas properties and provides
oil field services, primarily for its own properties.
WYMAN-GORDON CO. A manufacturer of highly engineered, 2.1
technologically advanced components. The company markets its
products to the commercial and defense aerospace, commercial power
and energy and performance product markets.
BA MERCHANT SERVICES, INC. Provides an array of payment processing 2.1
and related information products and services to merchants who
accept credit, charge and debit cards as payment for goods and
services throughout the U.S.
PRIDE INTERNATIONAL, INC. Provides contract drilling and related 2.0
services on land and offshore.
Source: Bloomberg, August 1997.
10
<PAGE>
GT GLOBAL AMERICA MID CAP GROWTH FUND
PERFORMANCE SUMMARY
INVESTMENT OBJECTIVE AND STRATEGY
The GT Global America Mid Cap Growth Fund seeks long-term growth of capital
by investing primarily in the equity securities of medium-sized companies in
the United States. As of January 2, 1997, the Fund's market capitalization
range changed. It now invests primarily in companies having a market
capitalization of $1 billion to $5 billion at the time of purchase.
Previously, the Fund normally initially focused on companies having a market
capitalization of $2 billion or less at the time of purchase.
[CHART]
<TABLE>
<CAPTION>
GT GLOBAL AMERICA MID CAP GROWTH FUND RUSSELL 2000 INDEX (6) RUSSELL MIDCAP S&P MID CAP 400 INDEX (6)
------------------------------------- ---------------------- -------------- -------------------------
<S> <C> <C> <C> <C>
CLASS A SHARES
6/9/87 9,525 10,000 10,000 10,000
9,916 10,250 10,282 10,178
10,230 10,538 10,722 10,495
10,697 10,921 11,101 10,803
10,439 10,710 10,889 10,604
7,468 8,178 8,207 7,358
7,229 7,774 7,751 6,963
8,153 8,375 8,423 7,522
8,315 8,758 8,815 7,849
9,011 9,315 9,439 8,556
8,887 9,466 9,452 8,957
9,087 9,515 9,510 9,160
8,811 9,316 9,488 8,911
9,630 9,988 10,138 9,547
9,392 9,719 9,934 9,456
9,020 9,493 9,713 9,214
9,277 9,857 10,044 9,458
9,030 9,925 10,087 9,353
8,753 9,732 9,845 9,041
9,062 10,125 10,092 9,395
9,724 10,814 10,695 9,814
9,837 10,850 10,670 9,886
10,344 11,091 10,845 10,119
11,306 11,691 11,368 10,560
12,217 12,255 11,881 11,014
11,782 12,200 11,837 10,763
12,765 12,925 12,662 11,182
13,127 13,384 13,085 11,454
13,416 13,531 12,965 11,490
13,292 12,961 12,354 10,809
13,437 13,248 12,523 10,878
14,025 13,721 12,743 10,921
12,638 12,560 11,721 9,967
13,424 13,011 11,958 10,276
14,396 13,292 12,249 10,680
14,134 12,776 11,723 10,331
16,144 14,023 12,785 11,062
16,209 14,081 12,702 11,091
15,576 13,758 12,325 10,605
13,511 12,331 10,999 9,187
12,255 11,577 10,184 8,370
11,971 11,224 9,862 7,859
12,681 12,302 10,812 8,458
12,987 13,017 11,278 8,791
13,621 14,045 12,042 9,583
14,484 15,307 13,046 10,657
15,215 16,005 13,587 11,405
14,997 16,000 13,668 11,375
15,521 16,737 14,317 11,917
14,363 15,887 13,657 11,228
15,248 16,844 14,327 11,621
15,980 17,457 14,755 12,049
15,456 17,400 14,669 12,143
15,150 18,082 14,970 12,464
14,178 17,473 14,351 11,888
15,492 19,538 15,959 12,839
1/31/92 17,323 19,884 16,259 13,880
17,488 20,200 16,633 14,285
16,468 19,439 16,208 13,802
15,964 19,206 16,334 13,317
16,106 19,388 16,440 13,494
15,174 18,835 16,173 12,860
16,315 19,770 16,850 13,307
15,756 19,297 16,461 12,931
16,249 19,567 16,803 13,229
17,565 20,036 17,214 13,646
19,867 21,156 18,081 14,691
20,410 21,866 18,567 15,203
20,577 22,139 18,938 15,717
19,265 21,829 18,960 15,354
19,063 22,583 19,576 15,852
17,823 21,992 19,057 15,417
19,075 22,994 19,663 16,099
18,622 23,109 19,885 16,199
18,860 23,065 19,981 16,422
19,897 24,017 20,869 17,131
19,826 24,271 20,949 17,615
20,815 24,350 20,967 18,068
20,899 23,811 20,480 17,480
22,113 24,916 21,222 18,077
22,396 25,496 21,808 18,643
23,027 25,134 21,511 18,576
23,245 23,970 20,595 17,597
23,786 24,148 20,736 17,702
24,005 23,920 20,764 17,503
23,928 23,096 20,149 16,912
23,760 23,878 20,841 17,190
25,241 25,128 21,829 18,147
25,446 24,659 21,296 18,086
25,511 24,929 21,458 18,013
25,176 23,805 20,512 17,285
25,581 24,022 20,778 17,748
25,755 24,273 21,205 17,523
27,042 25,546 22,303 18,253
28,054 25,989 22,941 18,566
29,110 26,511 23,287 18,978
29,804 27,150 24,052 19,305
31,713 28,255 24,860 20,306
33,448 29,729 26,067 21,476
33,680 30,279 26,467 21,920
33,882 31,013 27,065 22,312
32,537 30,215 26,459 21,314
33,246 31,535 27,775 22,209
31,523 31,457 27,937 22,795
31,622 31,913 28,526 22,770
32,267 32,998 29,196 23,480
32,598 33,393 29,619 23,958
34,929 34,413 30,458 25,239
35,028 34,878 30,918 26,234
33,639 34,355 30,453 25,157
31,457 32,031 28,569 22,959
33,110 33,878 29,929 24,292
35,424 35,355 31,407 25,242
35,441 35,458 31,659 24,853
36,929 37,455 33,588 25,877
36,457 37,497 33,245 26,555
37,054 38,904 34,488 27,086
34,070 38,584 34,436 26,429
30,998 36,939 32,973 25,182
31,665 37,897 33,793 25,252
34,544 41,211 36,259 28,062
6/30/97 35,755 42,369 37,445 29,264
CLASS B SHARES
4/1/93 10,000 10,000 10,000 10,000
9,403 9,738 9,735 9,725
10,063 10,182 10,044 10,155
9,818 10,233 10,158 10,218
9,937 10,213 10,207 10,359
10,478 10,635 10,661 10,807
10,434 10,747 10,701 11,112
10,956 10,782 10,710 11,398
10,994 10,544 10,462 11,026
11,608 11,033 10,841 11,403
11,757 11,290 11,140 11,760
12,076 11,130 10,988 11,718
12,185 10,614 10,520 11,101
12,464 10,693 10,592 11,166
12,572 10,592 10,607 11,041
12,525 10,227 10,293 10,668
12,436 10,573 10,646 10,844
13,197 11,127 11,151 11,448
13,299 10,919 10,878 11,409
13,326 11,039 10,961 11,363
13,143 10,541 10,478 10,904
13,356 10,638 10,614 11,196
13,432 10,748 10,832 11,054
14,096 11,312 11,393 11,514
3/31/95 14,623 11,508 11,719 11,712
15,165 11,739 11,895 11,972
15,516 12,022 12,286 12,178
16,500 12,512 12,699 12,809
17,386 13,164 13,316 13,547
17,500 13,408 13,520 13,828
17,592 13,733 13,825 14,075
16,889 13,380 13,516 13,445
17,248 13,964 14,188 14,010
16,351 13,929 14,271 14,380
16,385 14,131 14,572 14,364
16,716 14,612 14,914 14,812
16,873 14,787 15,130 15,113
18,066 15,238 15,559 15,921
18,118 15,444 15,793 16,549
17,387 15,213 15,556 15,869
16,246 14,184 14,593 14,483
17,091 15,002 15,288 15,324
18,275 15,656 16,043 15,923
18,275 15,701 16,172 15,678
19,032 16,586 17,157 16,324
18,774 16,604 16,982 16,751
19,071 17,227 17,617 17,086
17,525 17,086 17,591 16,672
15,941 16,357 16,843 15,885
16,275 16,781 17,262 15,929
17,737 18,249 18,522 17,702
6/30/97 18,148 18,761 19,128 18,460
</TABLE>
The charts above show the performance of the GT Global America Mid Cap Growth
Fund Class A and Class B shares, versus its various indices since June 9,
1987, and April 1, 1993, respectively. The first chart assumes a hypothetical
$10,000 initial investment in Class A shares and reflects all Fund expenses
and the maximum 4.75% sales charge. For Class B shares, results reflect 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 $12,055 on June 30, 1997.
AVERAGE ANNUAL TOTAL RETURNS %(1)
JUNE 30, 1997
WITHOUT SALES CHARGE(2) WITH SALES CHARGE
------------------------------ ------------------------------
SHARE CLASS 1-YEAR 5-YEAR 10-YEAR LOF 1-YEAR 5-YEAR 10-YEAR LOF
- --------------- ------ ------ ------- ----- ------ ------ ------- -----
Class A(3) 6.29 18.70 13.68 14.06 1.24 17.55 13.13 13.51
Class B(3) 5.53 N/A N/A 15.36 .57 N/A N/A 15.07
Advisor Class(4) 6.45 N/A N/A 9.39 N/A N/A N/A N/A
HISTORICAL PERFORMANCE(2)
Annual Total Returns % (per calendar year)
<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 -14.40(3) 11.14 54.77 -7.40 19.29 31.74 8.34 15.69 23.23 15.65
Class B N/A N/A N/A N/A N/A N/A 16.08(3) 15.06 22.42 14.82
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain
distributions at net asset value.
(2) Performance data do not reflect the maximum 4.75% sales charge or the
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years) for Class A and Class B shares, respectively, which, if
included, would have reduced performance quoted.
(3) The Fund began operations (Class A shares) on June 9, 1987; Class B
shares commenced on April 1, 1993.
(4) The Fund began offering Advisor Class shares on June 1, 1995. Advisor
Class shares are not sold directly to the general public and are only
available through certain employee benefit plans, financial institutions and
other entities that have entered into specific agreements with GT Global.
Please see the "Alternative Purchase Plan" section in the Fund's prospectus.
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.
11
<PAGE>
GT GLOBAL AMERICA MID CAP GROWTH FUND
INTERVIEW WITH PORTFOLIO MANAGER
BRENT CLUM
Q HOW DID THE FUND PERFORM?
A The Fund's total return for the six months ended June 30, 1997 was a
disappointing -1.93% for Class A shares (-6.58% including the maximum 4.75%
sales charge); total return for Class B shares was -2.27% (-7.15% including
the effect of the maximum 5% contingent deferred sales charge). During the
same period, the Russell Midcap Index(5) returned 12.63%.
As with the GT Global America Small Cap Growth Fund, it is important to view
each of the first two quarters separately when comparing index and Fund
performance. During the first quarter of the year, small and mid cap stocks
suffered their worst quarter since the third quarter of 1990. The Fund
underperformed its indices primarily because of the restructuring that
occurred after the change in the Fund's market capitalization orientation on
January 2, 1997,(7) and the shift in portfolio managers at the end of 1996.
The Fund also had a high exposure to the energy sector going into the new
year, which performed poorly in the first quarter on the back of declining
oil prices.
During this transition, we took advantage of difficult market conditions to
reposition our portfolio at excellent prices, coming through the painful
period strongly positioned for the second quarter and, we believe, the
balance of the year.
The Fund experienced a significant reversal in the second quarter, ending
above its benchmarks (the Fund's Class A shares returned 15.35%, excluding
sales charges, over the second quarter versus 13.56% for the Russell
Midcap). We feel that the repositioning was completed in late March, and the
strong results in the second quarter fully reflect our management style and
approach.
Companies benefiting the Fund in the second quarter include Sallie Mae, whose
strong share price gains were underpinned by a proxy fight and improved
earnings growth; Signature Resorts, the leader in the time share industry,
which enjoyed strong performance in the wake of a difficult first quarter.
The company's share price has rebounded as the industry has begun to realize
management's vision and the leverage that can be achieved as the dominant
player; and, Greenpoint Financial, which performed well on the back of good
earnings and growth.
Q WHAT ARE YOUR EXPECTATIONS FOR THE FUND GOING FORWARD?
A We feel the Fund is well positioned heading into the second half of the
year. Actual delivered earnings of the companies held in the Fund's portfolio
in the second quarter were 63%, and we are forecasting earnings of 46% and
28.1% for 1997 and 1998, respectively. This compares favorably to forecasted
earnings of 13.6% in 1997 and 8.1% in 1998 for the S&P 500, a broader large
cap index. Please keep in mind that while estimated earnings of the S&P 500
may be lower, their share prices are generally less volatile. Earnings
forecasts do not necessarily translate into Fund performance.
We are particularly excited about activities taking place in the business and
consumer services sector, where we believe consolidation in outdoor
advertising, the trend toward outsourcing, and favorable supply/demand
dynamics in the lodging industry will fuel further gains. Also, in the
financial services sector we are finding pockets of under-recognized growth,
and anticipate some interesting opportunities arising from consolidation in
the life and auto insurance industries. Companies we expect to do well in the
technology sector include those that stand to benefit from the growth in
client server computing and those managing software development.
(5) The Russell Midcap Index is composed of the capitalization-weighted
average price of 800 selected common stocks of medium-size domestic
companies. Its performance includes the effect of reinvested dividends and
is measured in U.S. dollars. With the change in the Fund's name and the
change in the emphasis of the Fund more toward mid cap stocks, the Fund has
also changed its benchmark to the Russell Mid Cap Index from the Russell
2000 and the S&P Mid Cap 400. We feel the Russell Mid Cap Index is the most
relevant comparable index for the Fund.
(6) The Russell 2000 Index is composed of 2,000 U.S.-domiciled common stocks
designed to measure small company stock performance. The index represents
roughly 10% of the U.S. stock market, and market capitalization of index
companies ranged from $171.7 million to $1.1 billion as of June 1997. The
S&P Mid Cap 400 Index is composed of the capitalization-weighted average
price of 400 selected common stocks of medium-size domestic companies. Their
performance includes the effect of reinvested dividends and is measured in
U.S. dollars.
(7) Please see sidebar on p. 11 for additional information. The Fund also
changed its name from the GT Global America Growth Fund.
Indices are unmanaged, not available for direct investment and do not incur
sales charges and professional management fees.
12
<PAGE>
GT GLOBAL AMERICA MID CAP GROWTH FUND
ALLOCATION OF NET ASSETS %
JUNE 30, 1997 JUNE 30, 1996
------------- -------------
SERVICES 35.3 21.8
TECHNOLOGY 14.5 10.2
FINANCE 13.2 2.0
HEALTH CARE 11.0 3.5
CONSUMER NON-DURABLES 8.0 19.2
CONSUMER DURABLES 6.8 0.7
CAPITAL GOODS 6.3 4.0
MATERIALS/BASIC INDUSTRY 4.2 2.0
ENERGY 1.2 14.5
SHORT TERM & OTHER (0.5)* 22.1
*Due to pending payables.
A complete listing of holdings and allocations may be found in the Financial
Statements section of this report.
% of
KEY PORTFOLIO HOLDINGS Net Assets
HFS, INC. A global services provider that franchises hotels and 4.4
residential real estate brokerage offices. The company also owns
Avis and Resort Condominiums International.
GREENPOINT FINANCIAL CORP. Bank holding company for the GreenPoint 4.1
Bank and GreenPoint Mortgage Corp. The company's primary businesses
are specialty limited documentation mortgage lending and consumer
banking in the New York City metropolitan area.
QUINTILES TRANSNATIONAL CORP. Provides full-service contract 3.3
research, sales and marketing services to the worldwide
pharmaceutical, biotechnology and medical device industries. The
company also provides health care policy consulting and health
information management services to the health care industry.
SIGNATURE RESORTS, INC. Develops and operates timeshare resorts in 3.2
North America. Directly or through wholly owned affiliates, the
company owns 19 resorts, including two in which it holds a partial
interest.
HERTZ CORP. Rents and leases cars and rents industrial and 3.1
construction equipment around the world. The company also provides
self-insurance operations, car leasing operations, used cars and
equipment sales, third party claim management services and
telecommunications services in the U.S.
HBO & CO. Designs and sells computerized information systems to the 3.0
health care industry. The company provides systems, including
minicomputers and mainframe computers and software, and will staff,
manage and operate a customer's data processing office if needed.
HILTON HOTELS CORP. Owns, operates and manages hotels. The company 2.9
manages or franchises approximately 240 hotels around the world and
also owns 17 hotel casinos.
STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE) A financial 2.7
intermediary serving the education credit market. The company
purchases and services student loans made under federally sponsored
student loan programs, and provides other financial and operational
services to originators of such loans.
CONSOLIDATED STORES CORP. A retailer of toy and close-out 2.7
merchandise, the company operates 1,840 stores in all 50 states and
Puerto Rico.
PAYCHEX, INC. Provides computerized payroll accounting services to 2.6
more than 240,000 small-to medium-sized businesses nationwide.
Paychex also provides businesses with cost-effective outsourcing
solutions for their employee benefits.
Source: Bloomberg, August 1997.
13
<PAGE>
GT GLOBAL AMERICA VALUE FUND
PERFORMANCE SUMMARY
INVESTMENT OBJECTIVE AND STRATEGY
The Fund seeks long-term capital appreciation by investing primarily in
equity securities of issuers domiciled in the United States, having a market
capitalization greater than $500 million at the time of purchase. We look for
companies we believe are undervalued and therefore offer above-average
potential for capital appreciation.
[CHART]
GT GLOBAL AMERICA VALUE FUND S&P 500 INDEX
---------------------------- -------------
CLASS A SHARES
10/18/95 9,525 10,000
9,542 9,905
10,358 10,340
10,633 10,539
10,967 10,898
10,942 10,999
11,183 11,105
11,658 11,268
12,242 11,559
11,983 11,603
11,267 11,090
8/31/96 11,483 11,324
12,117 11,962
12,233 12,292
12,425 13,221
12,241 12,959
12,809 13,768
13,010 13,876
12,433 13,306
12,726 14,100
13,470 14,959
6/30/97 13,971 15,629
CLASS B SHARES
10/18/95 10,000 10,000
10,009 9,905
10,866 10,340
11,155 10,539
11,487 10,898
11,461 10,999
11,706 11,105
12,196 11,268
12,808 11,559
12,528 11,603
11,776 11,090
8/31/96 11,986 11,324
12,642 11,962
12,765 12,292
12,957 13,221
12,755 12,959
13,343 13,768
13,545 13,876
12,940 13,306
13,238 14,100
13,992 14,959
6/30/97 14,110 15,629
The charts above show the performance of the GT Global America Value Fund
Class A and Class B shares, versus the S&P 500 Index since the Fund's
inception. The first chart assumes a hypothetical $10,000 initial investment
in Class A shares and reflects all Fund expenses and the maximum 4.75% sales
charge. For Class B shares, results reflect 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 October
18, 1995, would have been worth $14,764 on June 30, 1997.
AVERAGE ANNUAL TOTAL RETURNS %(1)
June 30, 1997
WITHOUT SALES CHARGE(2) WITH SALES CHARGE
----------------------- -----------------------
SHARE CLASS 1-YEAR LIFE OF FUND 1-YEAR LIFE OF FUND
---------------- ------ ------------ ------ ------------
Class A 16.59 25.30 11.05 21.76
Class B 15.82 24.50 10.82 22.47
Advisor Class(3) 16.95 25.78 N/A N/A
(1) Figures assume reinvestment of all dividends and capital gain
distributions at net asset value.
(2) Performance data do not reflect the maximum 4.75% sales charge or 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) 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.
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.
From time to time, the Fund's investment advisor may waive some fees and/or
reimburse some expenses, without which performance would be lower. Waivers
and reimbursements are subject to change.
14
<PAGE>
GT GLOBAL AMERICA VALUE FUND
INTERVIEW WITH PORTFOLIO MANAGERS
TED UJAZDOWSKI & ADAM SCHEINER
Q HOW DID THE FUND PERFORM?
A The Fund's total return for the six months ended June 30, 1997, was
14.13% for Class A shares (8.71% including the maximum 4.75% sales charge);
total return for Class B shares was 13.76% (8.76% including the effect of the
maximum 5% contingent deferred sales charge). During the same period, the S&P
500(4) returned 20.61%.
The Fund, similar to other value funds, has lagged behind the overall market
for the last six months as the current environment has favored large cap
growth stocks over the value style. S&P growth indices have outperformed
value indices by over eight percentage points through the first half of the
year. Furthermore, the market's advance has been very narrow and concentrated
within a group of high-momentum names. This phenomenon does not concern us as
we believe the fundamentals behind many of the Fund's holdings are still
intact (and improving in many cases) and are likely to be recognized in the
second half of the year.
The financial services sector provided a major boost to Fund performance in
the first half of 1997. Money-center banks such as BankAmerica and Norwest,
as well as thrifts, moved ahead nicely. Broad line and specialty insurers
such as Allstate and Exel were strong, as were diversified companies such as
Household International and Travelers. A large, special-situation holding,
Sallie Mae, rose strongly in response to changes in management.
Only two positions were notably disappointing--RJR Nabisco was flat,
notwithstanding the proposed tobacco settlement, and Fruit of the Loom was
down from our purchase price due to price competition. We continue to hold
both, however, based on their substantially higher intrinsic asset values,
which we believe should ultimately be reflected in higher stock prices.
Q WHAT IS YOUR INVESTMENT STRATEGY GOING INTO THE SECOND HALF OF THE YEAR?
A While the market's recent advance has been very impressive, it becomes
increasingly likely the market will take a breather at some point in the
second half, and volatility will increase, both of which can be good for the
Fund's value style. In this environment we have been selling stocks as their
price targets (based on intrinsic asset value or a ratio of price-to-earnings
(P/E) to growth rates) have been attained. Accordingly, we have virtually
eliminated positions in health care issues, hold none of the branded consumer
franchise names except for the tobaccos, and have only a moderate (5.5%)
weighting in technology. However, we remain virtually fully invested as we
are buying other stocks that still fit into our value parameters.
We have tried to position the Fund to provide consistency of returns, in part
by remaining overweighted in the financial sector. Our weighting in finance
is currently 25% (excluding real estate investment trusts or REITs, which are
more related to real estate than finance). We believe finance companies
represent one of the last remaining areas of the broad market that are still
undervalued on a P/E basis. The earnings multiples these companies are
selling at are significantly below those of the broad market. We expect these
multiples to expand, as financial company earnings have been coming in at or
above expectations, and we believe the prospects for continued positive
trends in earnings are good. Moreover, room exists for potential price
appreciation on the back of a wave of consolidation within the banking and
insurance industries.
We also continue to search for special situations in basic industry. We
believe non-market characteristics (stocks that have not tracked the market
and could provide support in a decline), low absolute valuations and
catalysts to increase shareholder value (acquisitions, divestitures, and new
management initiatives) should ultimately prove rewarding. Finally, we
maintain significant exposure to the REIT sector, which can offer dividend
yields well above average and positive growth in cash flow from operations.
(4) The S&P 500 Index is composed of the capitalization-weighted average
price of the 500 largest publicly traded U.S. companies. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
Indices are unmanaged, not available for direct investment and do not incur
sales charges and professional management fees.
15
<PAGE>
GT GLOBAL AMERICA VALUE FUND
ALLOCATION OF NET ASSETS %
JUNE 30, 1997 JUNE 30, 1996
------------- -------------
Finance/REITs 32.5 10.7
Energy 17.9 4.8
Services 17.1 19.4
Materials/Basic Industry 8.3 3.7
Consumer Non-Durables 5.5 5.3
Technology 5.5 3.5
Consumer Durables 4.2 --
Capital Goods 4.0 14.4
Health Care 0.4 8.6
Multi-Industry/Misc. -- 13.2
Short Term & Other 4.6 16.4
A complete listing of holdings and allocations may be found in the Financial
Statements section of this report.
% of
KEY PORTFOLIO HOLDINGS Net Assets
STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE) A financial 3.0
intermediary serving the education credit market. The company
purchases and services student loans made under federally sponsored
student loan programs and provides other financial and operational
services to originators of such loans.
COMPAQ COMPUTER CORP. Designs, develops, manufactures and markets 2.9
personal computers for professional users and consumers.
WASTE MANAGEMENT INC. Provides comprehensive waste management 2.8
services to industrial and commercial customers in North America.
Environmental services are also offered abroad through subsidiaries.
GTE CORP. A telecommunications company that provides local 2.7
telephone and wireless services in 29 states and long-distance
service in all 50 states. GTE also offers one-stop shopping for
local long-distance and Internet access services.
INTERNATIONAL BUSINESS MACHINES CORP. (IBM) Manufactures micro and 2.6
personal computers. IBM also supplies mainframe computers and other
information processing equipment, software and networking products
and peripheral equipment.
FIRST UNION CORP. A bank holding company with subsidiaries that 2.4
attract deposits and offer residential and commercial real-estate,
agricultural and consumer loans. First Union serves the eastern
United States from Connecticut to Florida and offers financial
services to retail and commercial customers nationwide.
SEARS, ROEBUCK AND CO. A retailer of apparel, home and automotive 2.4
products and services.
U.S. WEST, INC. One of the seven regional Bell operating companies. 2.3
The company offers local and wireless telephone and cable
television services.
ULTRAMAR DIAMOND SHAMROCK CORP. An independent refining and 2.3
marketing company in North America. The company owns four
refineries and has approximately 4,300 retail gasoline outlets, as
well as growing petrochemicals, home heating oil and convenience
store merchandising businesses.
BANKAMERICA CORP. Provides diverse financial products and services. 2.3
The company's banking subsidiaries operate over 2,000 offices
throughout the western United States. It also operates corporate
banking and business credit offices in major U.S. cities and 36
countries.
Source: Bloomberg, August, 1997.
16
<PAGE>
GT GLOBAL
AMERICA FUNDS
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL AMERICA SMALL CAP GROWTH FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Services (25.1%)
Signature Resorts, Inc.-/- ......................................... 20,900 $ 722,348 3.4
LEISURE & TOURISM
General Cable Corp.-/- ............................................. 15,300 392,063 1.8
CABLE TELEVISION
Universal Outdoor Holdings, Inc.-/- ................................ 11,000 383,625 1.8
BUSINESS & PUBLIC SERVICES
Extended Stay America, Inc.-/- ..................................... 24,400 364,475 1.7
LEISURE & TOURISM
Personnel Group of America, Inc.-/- ................................ 11,700 337,106 1.6
BUSINESS & PUBLIC SERVICES
Lamar Advertising Co.-/- ........................................... 13,000 331,500 1.6
BUSINESS & PUBLIC SERVICES
Fine Host Corp.-/- ................................................. 9,900 311,850 1.5
CONSUMER SERVICES
Superior Services, Inc.-/- ......................................... 12,900 306,375 1.4
CONSUMER SERVICES
CDW Computer Centers, Inc.-/- ...................................... 5,600 297,150 1.4
RETAILERS-OTHER
Outdoor Systems, Inc.-/- ........................................... 7,500 286,875 1.4
BUSINESS & PUBLIC SERVICES
Caribiner International, Inc.-/- ................................... 8,600 280,575 1.3
CONSUMER SERVICES
Stewart Enterprises, Inc. "A" ...................................... 6,000 252,000 1.2
CONSUMER SERVICES
Swift Transportation Company, Inc.-/- .............................. 7,900 233,050 1.1
TRANSPORTATION - ROAD & RAIL
American Disposal Services, Inc.-/- ................................ 10,200 229,500 1.1
CONSUMER SERVICES
Service Experts, Inc.-/- ........................................... 6,300 154,350 0.7
CONSUMER SERVICES
Insight Enterprises, Inc.-/- ....................................... 4,900 147,306 0.7
RETAILERS-OTHER
American List Corp. ................................................ 3,600 108,450 0.6
CONSUMER SERVICES
ANADIGICS, Inc.-/- ................................................. 2,800 86,800 0.4
TELECOM - OTHER
Linens 'N Things, Inc.-/- .......................................... 2,800 82,950 0.4
RETAILERS-APPAREL
------------
5,308,348
------------
Technology (22.5%)
Roper Industries, Inc. ............................................. 10,100 523,938 2.5
INSTRUMENTATION & TEST
BA Merchant Services, Inc. "A"-/- .................................. 22,900 436,531 2.1
COMPUTERS & PERIPHERALS
Documentum, Inc.-/- ................................................ 14,300 355,713 1.7
SOFTWARE
The Vantive Corp.-/- ............................................... 12,300 347,475 1.6
SOFTWARE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL AMERICA SMALL CAP GROWTH FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Technology (Continued)
Check Point Software Technologies Ltd.-/- .......................... 14,800 $ 345,950 1.6
SOFTWARE
i2 Technologies, Inc.-/- ........................................... 10,600 328,600 1.6
SOFTWARE
HCIA, Inc.-/- ...................................................... 8,600 288,100 1.4
SOFTWARE
Micrel, Inc.-/- .................................................... 5,100 260,100 1.2
SEMICONDUCTORS
Aspect Development, Inc.-/- ........................................ 8,400 218,400 1.0
SOFTWARE
Technology Modeling Associates, Inc.-/- ............................ 15,300 208,463 1.0
SOFTWARE
Qwest Communications International, Inc.-/- ........................ 6,600 179,850 0.8
TELECOM TECHNOLOGY
Hadco Corp.-/- ..................................................... 2,600 170,300 0.8
SEMICONDUCTORS
PRI Automation, Inc.-/- ............................................ 4,200 159,338 0.8
COMPUTERS & PERIPHERALS
Peerless Systems Corp.-/- .......................................... 10,900 149,875 0.7
SOFTWARE
Pegasystems, Inc.-/- ............................................... 4,600 144,325 0.7
SOFTWARE
Vitesse Semiconductor Corp.-/- ..................................... 4,400 143,825 0.7
TELECOM TECHNOLOGY
BroadVision, Inc.-/- ............................................... 20,700 137,138 0.6
COMPUTERS & PERIPHERALS
Pure Atria Corp.-/- ................................................ 9,400 132,775 0.6
COMPUTERS & PERIPHERALS
Versatility, Inc.-/- ............................................... 8,200 103,525 0.5
NETWORKING
Integrated Circuit Systems, Inc.-/- ................................ 4,000 90,750 0.4
SEMICONDUCTORS
Genesys Telecommunications Laboratories, Inc.-/- ................... 1,400 38,850 0.2
SOFTWARE
------------
4,763,821
------------
Health Care (16.1%)
Jones Medical Industries, Inc. ..................................... 7,600 361,000 1.7
MEDICAL TECHNOLOGY & SUPPLIES
ESC Medical Systems Ltd.-/- ........................................ 13,600 346,800 1.6
BIOTECHNOLOGY
Genzyme Corp. - General Division-/- ................................ 9,300 258,075 1.2
BIOTECHNOLOGY
AmeriSource Health Corp. "A"-/- .................................... 5,000 249,375 1.2
HEALTH CARE SERVICES
Arris Pharmaceutical Corp.-/- ...................................... 18,100 239,825 1.1
PHARMACEUTICALS
Pharmacopeia, Inc.-/- .............................................. 16,500 218,625 1.0
BIOTECHNOLOGY
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL AMERICA SMALL CAP GROWTH FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Health Care (Continued)
Waters Corp.-/- .................................................... 5,500 $ 197,313 0.9
MEDICAL TECHNOLOGY & SUPPLIES
Gilead Sciences, Inc.-/- ........................................... 6,500 179,563 0.8
BIOTECHNOLOGY
Total Renal Care Holdings, Inc.-/- ................................. 4,000 160,750 0.8
HEALTH CARE SERVICES
PathoGenesis Corp.-/- .............................................. 5,500 160,188 0.8
PHARMACEUTICALS
SangStat Medical Corp.-/- .......................................... 6,300 145,688 0.7
MEDICAL TECHNOLOGY & SUPPLIES
Alkermes, Inc.-/- .................................................. 9,700 140,650 0.7
PHARMACEUTICALS
Depotech Corp.-/- .................................................. 9,800 133,525 0.6
PHARMACEUTICALS
Aurora Biosciences Corp.-/- ........................................ 11,800 122,425 0.6
MEDICAL TECHNOLOGY & SUPPLIES
Covance, Inc.-/- ................................................... 5,900 113,944 0.5
HEALTH CARE SERVICES
Heartport, Inc.-/- ................................................. 6,200 109,275 0.5
MEDICAL TECHNOLOGY & SUPPLIES
Sofamor Danek Group, Inc.-/- ....................................... 2,200 100,650 0.5
MEDICAL TECHNOLOGY & SUPPLIES
Cytogen Corp.-/- ................................................... 15,400 75,075 0.4
BIOTECHNOLOGY
Perseptive Biosystems, Inc.-/- ..................................... 11,500 70,438 0.3
MEDICAL TECHNOLOGY & SUPPLIES
SEQUUS Pharmaceuticals, Inc.-/- .................................... 5,900 37,613 0.2
PHARMACEUTICALS
------------
3,420,797
------------
Energy (11.2%)
Newfield Exploration Co.-/- ........................................ 32,400 648,000 3.1
OIL
Lomak Petroleum, Inc. .............................................. 25,700 457,781 2.2
OIL
Pride International, Inc.-/- ....................................... 17,800 427,200 2.0
OIL
Santa Fe International Corp.-/- .................................... 12,300 418,200 2.0
OIL
Marine Drilling Co., Inc.-/- ....................................... 19,800 388,575 1.8
ENERGY EQUIPMENT & SERVICES
Hanover Compressor Co.-/- .......................................... 1,400 27,300 0.1
GAS PRODUCTION & DISTRIBUTION
------------
2,367,056
------------
Materials/Basic Industry (6.9%)
Gibraltar Steel Corp.-/- ........................................... 23,300 535,900 2.5
METALS - STEEL
Cambrex Corp. ...................................................... 12,700 503,238 2.4
CHEMICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL AMERICA SMALL CAP GROWTH FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Materials/Basic Industry (Continued)
Crompton & Knowles Corp. ........................................... 9,700 $ 215,825 1.0
CHEMICALS
Steel Dynamics, Inc.-/- ............................................ 8,600 215,000 1.0
METALS - STEEL
------------
1,469,963
------------
Consumer Non-Durables (6.0%)
Regal Cinemas, Inc.-/- ............................................. 21,300 702,900 3.3
RECREATION
Polo Ralph Lauren Corp.-/- ......................................... 9,100 249,113 1.2
TEXTILES & APPAREL
Einstein/Noah Bagel Corp.-/- ....................................... 15,600 186,225 0.9
FOOD
Marker International-/- ............................................ 16,700 62,625 0.3
RECREATION
JLK Direct Distribution, Inc. "A"-/- ............................... 1,300 33,313 0.2
OTHER CONSUMER GOODS
800-JR CIGAR, Inc.-/- .............................................. 900 18,675 0.1
TOBACCO
------------
1,252,851
------------
Finance (4.0%)
HomeSide, Inc.-/- .................................................. 13,300 290,938 1.4
SAVINGS & LOANS
AmeriCredit Corp.-/- ............................................... 10,800 226,800 1.1
CONSUMER FINANCE
Penncorp Financial Group, Inc. ..................................... 5,400 207,900 1.0
INSURANCE - MULTI-LINE
ARM Financial Group, Inc. "A"-/- ................................... 5,400 108,000 0.5
INVESTMENT MANAGEMENT
------------
833,638
------------
Capital Goods (3.7%)
Wyman-Gordon Co.-/- ................................................ 16,600 448,200 2.1
ELECTRICAL PLANT/EQUIPMENT
P-COM, Inc.-/- ..................................................... 5,900 194,700 0.9
TELECOM EQUIPMENT
Knoll, Inc.-/- ..................................................... 6,400 152,000 0.7
OFFICE EQUIPMENT
------------
794,900
------------
Consumer Durables (3.0%)
Tower Automotive, Inc.-/- .......................................... 9,100 391,300 1.8
AUTO PARTS
Aftermarket Technology Corp.-/- .................................... 8,100 180,225 0.9
AUTO PARTS
Comfort Systems USA, Inc.-/- ....................................... 3,900 60,938 0.3
APPLIANCES & HOUSEHOLD
------------
632,463
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL AMERICA SMALL CAP GROWTH FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Multi-Industry/Miscellaneous (1.1%)
Equity Corporation International-/- ................................ 9,400 $ 227,363 1.1
MISCELLANEOUS
------------ -----
TOTAL EQUITY INVESTMENTS (cost $19,597,698) .......................... 21,071,200 99.6
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co., due July 1,
1997, for an effective yield of 5.75%, collateralized by $30,000
U.S. Treasury Bills, 6.125% due 3/1/98 (market value of collateral
is $30,530, including accrued interest).(cost $29,005) ........... 29,005 --
------------ -----
TOTAL INVESTMENTS (cost $19,626,703) * .............................. 21,100,205 99.6
Other Assets and Liabilities ......................................... 89,661 0.4
------------ -----
NET ASSETS ........................................................... $ 21,189,866 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
* For Federal income tax purposes, cost is $19,663,138 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 2,441,067
Unrealized depreciation: (1,004,000)
-------------
Net unrealized appreciation: $ 1,437,067
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL AMERICA MID CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Services (35.3%)
HFS, Inc.-/- ....................................................... 398,000 $ 23,083,997 4.4
LEISURE & TOURISM
Signature Resorts, Inc.-/- ......................................... 492,400 17,018,575 3.2
LEISURE & TOURISM
Hilton Hotels Corp. ................................................ 582,000 15,459,375 2.9
LEISURE & TOURISM
Consolidated Stores Corp.-/- ....................................... 408,125 14,182,344 2.7
RETAILERS-OTHER
Paychex, Inc. ...................................................... 367,700 13,972,600 2.6
CONSUMER SERVICES
Snyder Communications, Inc.-/- ..................................... 485,000 13,064,688 2.5
CONSUMER SERVICES
Outdoor Systems, Inc.-/- ........................................... 336,550 12,873,038 2.4
BUSINESS & PUBLIC SERVICES
Corporate Express, Inc.-/- ......................................... 774,250 11,178,234 2.1
RETAILERS-OTHER
Mirage Resorts, Inc.-/- ............................................ 441,000 11,135,250 2.1
LEISURE & TOURISM
Service Corporation International .................................. 292,000 9,599,500 1.8
CONSUMER SERVICES
Tele-Communications Liberty Media Group, Inc. "A"-/- ............... 375,000 8,906,250 1.7
CABLE TELEVISION
LCI International, Inc.-/- ......................................... 360,200 7,879,375 1.5
TELEPHONE NETWORKS
Universal Outdoor Holdings, Inc.-/- ................................ 217,100 7,571,363 1.4
BUSINESS & PUBLIC SERVICES
CDW Computer Centers, Inc.-/- ...................................... 136,000 7,216,500 1.4
RETAILERS-OTHER
Tiffany & Co. ...................................................... 135,500 6,258,406 1.2
RETAILERS-OTHER
MGM Grand, Inc.-/- ................................................. 146,300 5,413,100 1.0
LEISURE & TOURISM
Primadonna Resorts, Inc.-/- ........................................ 97,600 1,884,900 0.4
LEISURE & TOURISM
------------
186,697,495
------------
Technology (14.5%)
Altera Corp.-/- .................................................... 219,400 11,079,700 2.1
COMPUTERS & PERIPHERALS
Peoplesoft Inc.-/- ................................................. 199,500 10,523,625 2.0
SOFTWARE
Cascade Communications Corp.-/- .................................... 358,900 9,914,613 1.9
NETWORKING
National Semiconductor Corp.-/- .................................... 313,200 9,591,750 1.8
SEMICONDUCTORS
KLA-Trencor Corp.-/- ............................................... 187,300 9,130,875 1.7
INSTRUMENTATION & TEST
Adaptec, Inc.-/- ................................................... 241,600 8,395,600 1.6
SEMICONDUCTORS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL AMERICA MID CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Technology (Continued)
Advanced Fibre Communications-/- ................................... 136,000 $ 8,211,000 1.5
TELECOM TECHNOLOGY
Pegasystems, Inc.-/- ............................................... 170,000 5,333,750 1.0
SOFTWARE
Rational Software Corp.-/- ......................................... 245,400 4,125,788 0.8
SOFTWARE
Qwest Communications International, Inc.-/- ........................ 23,400 637,650 0.1
TELECOM TECHNOLOGY
------------
76,944,351
------------
Finance (13.2%)
GreenPoint Financial Corp. ......................................... 323,400 21,526,313 4.1
BANKS-REGIONAL
Student Loan Marketing Association ................................. 112,000 14,224,000 2.7
OTHER FINANCIAL
Progressive Corp. .................................................. 127,800 11,118,600 2.1
INSURANCE - MULTI-LINE
Conseco, Inc. ...................................................... 284,600 10,530,200 2.0
INSURANCE - MULTI-LINE
Starwood Lodging Trust ............................................. 150,000 6,403,125 1.2
REAL ESTATE INVESTMENT TRUST
Felcor Suite Hotels, Inc. .......................................... 155,000 5,773,750 1.1
REAL ESTATE INVESTMENT TRUST
------------
69,575,988
------------
Health Care (11.0%)
Quintiles Transnational Corp.-/- ................................... 250,200 17,420,175 3.3
HEALTH CARE SERVICES
HBO & Co. .......................................................... 230,000 15,841,250 3.0
HEALTH CARE SERVICES
Guidant Corp. ...................................................... 138,000 11,730,000 2.2
MEDICAL TECHNOLOGY & SUPPLIES
Covance, Inc.-/- ................................................... 420,000 8,111,250 1.5
HEALTH CARE SERVICES
Sofamor Danek Group, Inc.-/- ....................................... 120,000 5,490,000 1.0
MEDICAL TECHNOLOGY & SUPPLIES
------------
58,592,675
------------
Consumer Non-Durables (8.0%)
Estee Lauder Cos. "A" .............................................. 220,300 10,904,850 2.1
PERSONAL CARE/COSMETICS
Liz Claiborne, Inc. ................................................ 233,300 10,877,613 2.0
TEXTILES & APPAREL
Avon Products, Inc. ................................................ 146,800 10,358,575 2.0
PERSONAL CARE/COSMETICS
Einstein/Noah Bagel Corp.-/- ....................................... 611,200 7,296,200 1.4
FOOD
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL AMERICA MID CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Consumer Non-Durables (Continued)
Wrigley (WM) Jr. Company ........................................... 40,000 $ 2,680,000 0.5
FOOD
------------
42,117,238
------------
Consumer Durables (6.8%)
Hertz Corp. "A"-/- ................................................. 461,400 16,610,400 3.1
AUTOMOBILES
Sunbeam-Oster Co., Inc. ............................................ 292,000 11,023,000 2.1
APPLIANCES & HOUSEHOLD
Tower Automotive, Inc.-/- .......................................... 193,000 8,299,000 1.6
AUTO PARTS
------------
35,932,400
------------
Capital Goods (6.3%)
Gulfstream Aerospace Corp.-/- ...................................... 470,300 13,873,850 2.6
AEROSPACE/DEFENSE
U.S. Office Products Co.-/- ........................................ 390,100 11,922,431 2.2
OFFICE EQUIPMENT
Sundstrand Corp. ................................................... 146,800 8,193,275 1.5
ELECTRICAL PLANT/EQUIPMENT
------------
33,989,556
------------
Materials/Basic Industry (4.2%)
Crompton & Knowles Corp. ........................................... 510,700 11,363,075 2.1
CHEMICALS
International Specialty Products, Inc.-/- .......................... 776,000 10,912,500 2.1
CHEMICALS
------------
22,275,575
------------
Energy (1.2%)
Santa Fe International Corp.-/- .................................... 183,200 6,228,800 1.2
OIL
------------ -----
TOTAL EQUITY INVESTMENTS (cost $514,417,170) ......................... 532,354,078 100.5
------------ -----
TOTAL INVESTMENTS (cost $514,417,170) * ............................. 532,354,078 100.5
Other Assets and Liabilities ......................................... (2,441,684) (0.5)
------------ -----
NET ASSETS ........................................................... $529,912,394 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
* For Federal income tax purposes, cost is $517,769,933 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 43,390,324
Unrealized depreciation: (28,806,179)
-------------
Net unrealized appreciation: $ 14,584,145
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL AMERICA VALUE FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Finance (32.5%)
Student Loan Marketing Association ................................. 3,675 $ 466,721 3.0
OTHER FINANCIAL
First Union Corp. (N.C.) ........................................... 4,050 374,625 2.4
BANKS-REGIONAL
BankAmerica Corp. .................................................. 5,550 358,322 2.3
BANKS-SUPER REGIONAL
Citicorp ........................................................... 2,700 325,519 2.1
BANKS-MONEY CENTER
Travelers Group, Inc. .............................................. 5,100 321,619 2.1
INSURANCE - MULTI-LINE
GreenPoint Financial Corp. ......................................... 4,800 319,500 2.1
BANKS-REGIONAL
Norwest Corp. ...................................................... 5,625 316,406 2.0
BANKS-REGIONAL
NationsBank Corp. .................................................. 4,900 316,050 2.0
BANKS-SUPER REGIONAL
Chase Manhattan Corp. .............................................. 3,175 308,173 2.0
BANKS-MONEY CENTER
Household International, Inc. ...................................... 2,500 293,594 1.9
OTHER FINANCIAL
Exel Ltd. .......................................................... 4,600 242,650 1.6
INSURANCE - PROPERTY-CASUALTY
Allstate Corp. ..................................................... 2,975 217,175 1.4
INSURANCE - MULTI-LINE
Felcor Suite Hotels, Inc. .......................................... 5,525 205,806 1.3
REAL ESTATE INVESTMENT TRUST
Patriot American Hospitality, Inc. ................................. 7,800 198,900 1.3
REAL ESTATE INVESTMENT TRUST
Equity Residential Property Trust .................................. 4,075 193,563 1.2
REAL ESTATE INVESTMENT TRUST
Starwood Lodging Trust ............................................. 4,525 193,161 1.2
REAL ESTATE INVESTMENT TRUST
Highwoods Properties, Inc. ......................................... 4,325 138,400 0.9
REAL ESTATE INVESTMENT TRUST
Public Storage, Inc. ............................................... 4,700 137,475 0.9
REAL ESTATE INVESTMENT TRUST
Beacon Properties Corp. ............................................ 3,850 128,494 0.8
REAL ESTATE INVESTMENT TRUST
------------
5,056,153
------------
Energy (17.9%)
Ultramar Diamond Shamrock Corp. .................................... 11,025 359,691 2.3
OIL
Unocal Corp. ....................................................... 8,100 314,381 2.0
OIL
Amoco Corp. ........................................................ 3,500 304,281 2.0
OIL
Mobil Corp. ........................................................ 4,300 300,463 1.9
OIL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL AMERICA VALUE FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Energy (Continued)
Texaco, Inc. ....................................................... 2,525 $ 274,594 1.8
OIL
Amerada Hess Corp. ................................................. 4,625 256,977 1.6
OIL
Edison International ............................................... 7,100 176,613 1.1
ELECTRICAL & GAS UTILITIES
CMS Energy Corp. ................................................... 4,750 167,438 1.1
ELECTRICAL & GAS UTILITIES
Pinnacle West Capital Corp. ........................................ 5,525 166,095 1.1
ELECTRICAL & GAS UTILITIES
GPU, Inc. .......................................................... 4,625 165,922 1.1
ELECTRICAL & GAS UTILITIES
Illinova Corp. ..................................................... 7,275 160,050 1.0
ELECTRICAL & GAS UTILITIES
Tosco Corp. ........................................................ 4,800 143,700 0.9
GAS PRODUCTION & DISTRIBUTION
------------
2,790,205
------------
Services (17.1%)
GTE Corp. .......................................................... 9,725 426,684 2.7
TELEPHONE - REGIONAL/LOCAL
Sears, Roebuck and Co. ............................................. 6,950 373,563 2.4
RETAILERS-OTHER
U.S. West, Inc. .................................................... 9,600 361,800 2.3
TELEPHONE - REGIONAL/LOCAL
Federated Department Stores, Inc.-/- ............................... 9,600 333,600 2.1
RETAILERS-APPAREL
The Limited, Inc. .................................................. 15,525 314,381 2.0
RETAILERS-APPAREL
CPT Telefonica Del Peru, S.A. - ADR{\/} ............................ 10,000 261,875 1.7
TELEPHONE - REGIONAL/LOCAL
Burlington Northern, Inc. .......................................... 2,900 260,638 1.7
TRANSPORTATION - ROAD & RAIL
Dayton Hudson Corp. ................................................ 3,150 167,541 1.1
RETAILERS-OTHER
Time Warner, Inc. .................................................. 3,425 165,256 1.1
BROADCASTING & PUBLISHING
------------
2,665,338
------------
Materials/Basic Industry (8.3%)
Hercules, Inc. ..................................................... 7,175 343,503 2.2
CHEMICALS
Aluminum Company of America (ALCOA) ................................ 4,500 339,188 2.2
METALS - NON-FERROUS
PPG Industries, Inc. ............................................... 5,600 325,500 2.1
CHEMICALS
W.R. Grace & Co. ................................................... 5,225 288,028 1.8
CHEMICALS
------------
1,296,219
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL AMERICA VALUE FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Consumer Non-Durables (5.5%)
RJR Nabisco Holdings Corp. ......................................... 10,075 $ 332,475 2.1
TOBACCO
Fruit of the Loom, Inc.-/- ......................................... 9,500 294,500 1.9
TEXTILES & APPAREL
Philip Morris Cos., Inc. ........................................... 5,350 237,406 1.5
TOBACCO
------------
864,381
------------
Technology (5.5%)
Compaq Computer Corp.-/- ........................................... 4,600 456,550 2.9
COMPUTERS & PERIPHERALS
International Business Machines Corp. .............................. 4,500 405,844 2.6
COMPUTERS & PERIPHERALS
------------
862,394
------------
Consumer Durables (4.2%)
Ford Motor Co. ..................................................... 8,950 337,863 2.2
AUTOMOBILES
Chrysler Corp. ..................................................... 9,625 315,820 2.0
AUTOMOBILES
------------
653,683
------------
Capital Goods (4.0%)
Waste Management, Inc. ............................................. 13,700 440,113 2.8
ENVIRONMENTAL
Textron, Inc. ...................................................... 2,800 185,850 1.2
AEROSPACE/DEFENSE
------------
625,963
------------
Health Care (0.4%)
Schering-Plough Corp. .............................................. 1,200 57,450 0.4
PHARMACEUTICALS
------------ -----
TOTAL EQUITY INVESTMENTS (cost $13,901,459) .......................... 14,871,786 95.4
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL AMERICA VALUE FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co., due July 1,
1997, for an effective yield of 5.75%, collateralized by $400,000
U.S. Treasury Bills, 6.125% due 3/31/98 (market value of collateral
is $407,067, including accrued interest).(cost $395,063) ......... $ 395,063 2.5
------------ -----
TOTAL INVESTMENTS (cost $14,296,522) * .............................. 15,266,849 97.9
Other Assets and Liabilities ......................................... 325,881 2.1
------------ -----
NET ASSETS ........................................................... $ 15,592,730 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated. Country of origin is Peru. All other
securities on this portfolio originate from the U.S.
* For Federal income tax purposes, cost is $14,303,388 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,116,674
Unrealized depreciation: (153,213)
-------------
Net unrealized appreciation: $ 963,461
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL AMERICA FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------
AMERICA AMERICA MID AMERICA
SMALL CAP GROWTH CAP GROWTH VALUE
FUND-CONSOLIDATED FUND FUND-CONSOLIDATED
----------------- ------------ -----------------
<S> <C> <C> <C>
Assets:
Investments in securities, at value (cost $19,626,703;
$514,417,170; and $14,296,522, respectively) (Note 1)... $21,100,205 $532,354,078 $15,266,849
U.S. currency............................................ 735 55 977
Dividends receivable..................................... 227 35,026 26,618
Receivable for Fund shares sold.......................... 61,425 520,968 75,295
Receivable for securities sold........................... 462,855 10,557,074 607,647
Receivable from Chancellor LGT Asset Management, Inc.
(Note 2)................................................ 110,304 -- 68,142
Unamortized organizational costs (Note 1)................ 58,381 -- 58,381
Cash held as collateral for securities loaned (Note 1)... 1,138,800 83,954,900 --
----------------- ------------ -----------------
Total assets........................................... 22,932,932 627,422,101 16,103,909
----------------- ------------ -----------------
Liabilities:
Payable for loan outstanding (Note 1).................... -- 7,910,000 --
Payable for custodian fees (Note 1)...................... 1,807 15,939 2,482
Payable for Directors' and Trustees' fees and expenses
(Note 2)................................................ 7,105 8,808 5,758
Payable for fund accounting fees (Note 2)................ 1,305 8,679 525
Payable for Fund shares repurchased...................... 139,390 3,049,955 394,216
Payable for investment management and administration fees
(Note 2)................................................ 65,834 321,110 41,194
Payable for printing and postage expenses................ 49,594 147,184 33,993
Payable for professional fees............................ 17,662 23,051 12,927
Payable for registration and filing fees................. 39,490 23,772 2,492
Payable for securities purchased......................... 262,917 1,495,468 --
Payable for service and distribution expenses (Note 2)... 12,554 304,472 9,360
Payable for transfer agent fees (Note 2)................. 5,098 227,986 4,667
Other accrued expenses (Note 1).......................... 1,410 18,383 3,465
Collateral for securities loaned (Note 1)................ 1,138,800 83,954,900 --
----------------- ------------ -----------------
Total liabilities...................................... 1,742,966 97,509,707 511,079
Minority interest (Notes 1 & 2).......................... 100 -- 100
----------------- ------------ -----------------
Net assets................................................. $21,189,866 $529,912,394 $15,592,730
----------------- ------------ -----------------
----------------- ------------ -----------------
Class A:
Net asset value and redemption price per share
($8,629,178 DIVIDED BY 680,107; $262,027,746 DIVIDED BY
12,867,240; and $5,205,606 DIVIDED BY 311,326 shares
outstanding, respectively).............................. $ 12.69 $ 20.36 $ 16.72
----------------- ------------ -----------------
----------------- ------------ -----------------
Maximum offering price per share (100/95.25 of $12.69;
100/95.25 of $20.36; and 100/95.25 of $16.72,
respectively) *......................................... $ 13.32 $ 21.38 $ 17.55
----------------- ------------ -----------------
----------------- ------------ -----------------
Class B:+
Net asset value and offering price per share ($12,102,580
DIVIDED BY 964,604; $266,856,203 DIVIDED BY 13,462,066;
and $9,999,558 DIVIDED BY 604,515 shares outstanding,
respectively)........................................... $ 12.55 $ 19.82 $ 16.54
----------------- ------------ -----------------
----------------- ------------ -----------------
Advisor Class:
Net asset value, offering price per share, and redemption
price per share
($458,108 DIVIDED BY 35,880; $1,028,445 DIVIDED BY
50,414; and $387,566 DIVIDED BY 23,023 shares
outstanding,
respectively)........................................... $ 12.77 $ 20.40 $ 16.83
----------------- ------------ -----------------
----------------- ------------ -----------------
Net assets consist of:
Paid in capital (Note 4)................................. $21,651,492 $469,958,369 $13,481,272
Undistributed/Accumulated net investiment income
(loss).................................................. (152,852) (3,460,257) 12,452
Accumulated net realized gain (loss) on investments...... (1,782,276) 45,477,374 1,128,679
Net unrealized appreciation of investments............... 1,473,502 17,936,908 970,327
----------------- ------------ -----------------
Total -- representing net assets applicable to capital
shares outstanding........................................ $21,189,866 $529,912,394 $15,592,730
----------------- ------------ -----------------
----------------- ------------ -----------------
<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.
F13
<PAGE>
GT GLOBAL AMERICA FUNDS
STATEMENTS OF OPERATIONS
Six months ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------
AMERICA AMERICA MID AMERICA
SMALL CAP GROWTH CAP GROWTH VALUE
FUND-CONSOLIDATED FUND FUND-CONSOLIDATED
----------------- ------------ -----------------
<S> <C> <C> <C>
Investment income: (Note 1)
Dividend income.......................................... $ 9,429 $ 1,101,293 $ 134,959
Interest income.......................................... 46,895 412,606 18,395
Other income............................................. -- 35,579 --
----------------- ------------ -----------------
Total investment income................................ 56,324 1,549,478 153,354
----------------- ------------ -----------------
Expenses:
Investment management and administration fees (Note 2)... 65,834 2,063,162 41,194
Amortization of organization costs (Note 1).............. 8,779 -- 8,779
Custodian Fees (Note 1).................................. 12,916 128,001 6,311
Trustees' fees and expenses (Note 2)..................... 8,189 5,956 6,842
Fund accounting fees (Note 2)............................ 2,270 71,476 1,423
Professional fees........................................ 34,616 37,257 34,357
Printing and postage expenses............................ 28,055 81,856 17,069
Registration and filing fees............................. 56,789 54,996 20,601
Service and distribution expenses: (Note 2)
Class A................................................ 13,153 497,331 6,858
Class B................................................ 51,106 1,430,533 35,914
Transfer agent fees (Note 2)............................. 41,220 871,635 24,126
Other expenses........................................... 1,156 60,287 5,406
----------------- ------------ -----------------
Total expenses before reductions and reimbursement..... 324,083 5,302,490 208,880
Expenses reimbursed by Chancellor LGT Asset
Management, Inc. (Note 2)........................... (110,304) -- (67,978)
Expense reductions (Notes 1 & 5)..................... (4,603) (292,755) --
----------------- ------------ -----------------
Total net expenses..................................... 209,176 5,009,735 140,902
----------------- ------------ -----------------
Net investment income (loss)............................... (152,852) (3,460,257) 12,452
----------------- ------------ -----------------
Net realized and unrealized gain (loss) on investments:
(Note 1)
Net realized gain (loss) on investments.................. (1,619,888) 55,059,934 446,244
Net change in unrealized appreciation (depreciation) of
investments............................................. 2,251,538 (70,588,808) 985,615
----------------- ------------ -----------------
Net realized and unrealized gain (loss) on investments..... 631,650 (15,528,874) 1,431,859
----------------- ------------ -----------------
Net increase (decrease) in net assets resulting from
operations................................................ $ 478,798 $(18,989,131) $1,444,311
----------------- ------------ -----------------
----------------- ------------ -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F14
<PAGE>
GT GLOBAL AMERICA FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------
AMERICA SMALL CAP AMERICA MID CAP
GROWTH FUND-CONSOLIDATED GROWTH FUND
--------------------------------- ----------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ----------------- --------------- -----------------
<S> <C> <C> <C> <C>
Increase (decrease) in
net assets
Operations:
Net investment income
(loss)................ $ (152,852) $ (110,516) $ (3,460,257) $ (1,367,346)
Net realized gain
(loss) on investments
and foreign currency
transactions.......... (1,619,888) 1,264,689 55,059,934 24,339,369
Net change in
unrealized
appreciation
(depreciation) of
investments........... 2,251,538 (782,829) (70,588,808) 76,318,599
------------- ----------------- --------------- -----------------
Net increase
(decrease) in net
assets resulting
from operations..... 478,798 371,344 (18,989,131) 99,290,622
------------- ----------------- --------------- -----------------
Class A:
Distributions to
shareholders: (Note 1)
From net realized gain
on investments.......... -- (564,752) -- (21,518,831)
Class B:
Distributions to
shareholders: (Note 1)
From net realized gain
on investments.......... -- (727,944) -- (20,232,121)
Advisor Class:
Distributions to
shareholders: (Note 1)
From net realized gain
on investments.......... -- (28,106) -- (167,680)
------------- ----------------- --------------- -----------------
Total
distributions....... -- (1,320,802) -- (41,918,632)
------------- ----------------- --------------- -----------------
Capital share
transactions: (Note 4)
Increase from capital
shares sold and
reinvested............ 15,358,304 43,976,336 386,878,915 2,122,781,710
Decrease from capital
shares repurchased.... (14,224,552) (27,455,528) (517,980,468) (2,246,270,951)
------------- ----------------- --------------- -----------------
Net increase
(decrease) from
capital share
transactions........ 1,133,752 16,520,808 (131,101,553) (123,489,241)
------------- ----------------- --------------- -----------------
Total increase (decrease)
in net assets........... 1,612,550 15,571,350 (150,090,684) (66,117,251)
Net assets:
Beginning of period.... 19,577,316 4,005,966 680,003,078 746,120,329
------------- ----------------- --------------- -----------------
End of period *....... $ 21,189,866 $ 19,577,316 $ 529,912,394 $ 680,003,078
------------- ----------------- --------------- -----------------
------------- ----------------- --------------- -----------------
*Includes
undistributed/accumulated
net investment income
(loss)................. $ (152,852) $ -- $ (3,460,257) $ --
------------- ----------------- --------------- -----------------
------------- ----------------- --------------- -----------------
<CAPTION>
AMERICA VALUE
FUND-CONSOLIDATED
---------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
------------- -----------------
<S> <C> <C>
Increase (decrease) in
net assets
Operations:
Net investment income
(loss)................ $ 12,452 $ (30,160)
Net realized gain
(loss) on investments
and foreign currency
transactions.......... 446,244 733,904
Net change in
unrealized
appreciation
(depreciation) of
investments........... 985,615 (69,965)
------------- -----------------
Net increase
(decrease) in net
assets resulting
from operations..... 1,444,311 633,779
------------- -----------------
Class A:
Distributions to
shareholders: (Note 1)
From net realized gain
on investments.......... -- (7,007)
Class B:
Distributions to
shareholders: (Note 1)
From net realized gain
on investments.......... -- (14,950)
Advisor Class:
Distributions to
shareholders: (Note 1)
From net realized gain
on investments.......... -- (443)
------------- -----------------
Total
distributions....... -- (22,400)
------------- -----------------
Capital share
transactions: (Note 4)
Increase from capital
shares sold and
reinvested............ 14,883,091 11,770,124
Decrease from capital
shares repurchased.... (8,957,671) (6,364,460)
------------- -----------------
Net increase
(decrease) from
capital share
transactions........ 5,925,420 5,405,664
------------- -----------------
Total increase (decrease)
in net assets........... 7,369,731 6,017,043
Net assets:
Beginning of period.... 8,222,999 2,205,956
------------- -----------------
End of period *....... $ 15,592,730 $ 8,222,999
------------- -----------------
------------- -----------------
*Includes
undistributed/accumulated
net investment income
(loss)................. $ 12,452 $ --
------------- -----------------
------------- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F15
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
SMALL CAP GROWTH FUND
-------------------------------------------
CLASS A
-------------------------------------------
OCTOBER 18,
1995
(COMMENCEMENT
SIX MONTHS OF OPERATIONS)
ENDED YEAR ENDED TO DECEMBER
JUNE 30, 1997 DECEMBER 31, 31,
(UNAUDITED) (D) 1996 (D) 1995 (D)
------------- ------------ --------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.52 $ 11.80 $ 11.43
------------- ------------ --------------
Income from investment operations:
Net investment income (loss).......... (0.08) ** (0.05) ** 0.04*
Net realized and unrealized gain on
investments.......................... 0.25 1.69 0.33
------------- ------------ --------------
Net increase from investment
operations......................... 0.17 1.64 0.37
------------- ------------ --------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.92) --
------------- ------------ --------------
Total distributions................. -- (0.92) --
------------- ------------ --------------
Net asset value, end of period.......... $ 12.69 $ 12.52 $ 11.80
------------- ------------ --------------
------------- ------------ --------------
Total investment return (c)............. 1.36%(b) 13.81 % 3.24 %(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 8,629 $ 8,448 $ 1,931
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc.
(Note 2)............................. (1.33)%(a) (0.38)% 1.68 %(a)
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... (2.60)%(a) (1.47)% (20.52)%(a)
Ratio of expenses to average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc.
(Note 2)............................. 1.95%(a) 2.00 % 2.00 %(a)
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... 3.22%(a) 3.09 % 24.20 %(a)
Portfolio turnover rate+................ 266%(a) 150 % N/A
Average commission rate per share paid
on portfolio transactions+............. $ 0.0545 $ 0.0489 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total Investment Return does not include sales charges.
(d) Calculated based upon weighted average shares outstanding during the
period.
* Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.47), $(0.49), and
$(0.46) for Class A, Class B, and Advisor Class, respectively, from
October 18, 1995 to December 31, 1995.
** Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.19), $(0.28), and
$(0.14) for Class A, Class B, and Advisor Class, respectively, for the
year ended December 31, 1996.
* * * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.14), $(0.17), and
$(0.12) for Class A, Class B, and Advisor Class, respectively, for the
period ended June 30, 1997.
+ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguiishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F16
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
SMALL CAP GROWTH FUND
-------------------------------------------
CLASS B
-------------------------------------------
OCTOBER 18,
1995
(COMMENCEMENT
SIX MONTHS OF OPERATIONS)
ENDED YEAR ENDED TO DECEMBER
JUNE 30, 1997 DECEMBER 31, 31,
(UNAUDITED) (D) 1996 (D) 1995 (D)
------------- ------------ --------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.42 $ 11.78 $ 11.43
------------- ------------ --------------
Income from investment operations:
Net investment income (loss).......... (0.11) ** (0.14) ** 0.02*
Net realized and unrealized gain on
investments.......................... 0.24 1.70 0.33
------------- ------------ --------------
Net increase from investment
operations......................... 0.13 1.56 0.35
------------- ------------ --------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.92) --
------------- ------------ --------------
Total distributions................. -- (0.92) --
------------- ------------ --------------
Net asset value, end of period.......... $ 12.55 $ 12.42 $ 11.78
------------- ------------ --------------
------------- ------------ --------------
Total investment return (c)............. 1.05%(b) 13.14 % 3.06 %(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 12,103 $ 10,694 $ 2,024
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc.
(Note 2)............................. (1.98)%(a) (1.03)% 1.03 %(a)
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... (3.25)%(a) (2.12)% (21.17)%(a)
Ratio of expenses to average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc.
(Note 2)............................. 2.60%(a) 2.65 % 2.65 %(a)
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... 3.87%(a) 3.74 % 24.85 %(a)
Portfolio turnover rate+................ 266%(a) 150 % N/A
Average commission rate per share paid
on portfolio transactions+............. $ 0.0545 $ 0.0489 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total Investment Return does not include sales charges.
(d) Calculated based upon weighted average shares outstanding during the
period.
* Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.47), $(0.49), and
$(0.46) for Class A, Class B, and Advisor Class, respectively, from
October 18, 1995 to December 31, 1995.
** Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.19), $(0.28), and
$(0.14) for Class A, Class B, and Advisor Class, respectively, for the
year ended December 31, 1996.
* * * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.14), $(0.17), and
$(0.12) for Class A, Class B, and Advisor Class, respectively, for the
period ended June 30, 1997.
+ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguiishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F17
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
SMALL CAP GROWTH FUND
-------------------------------------------
ADVISOR CLASS
-------------------------------------------
OCTOBER 18,
1995
(COMMENCEMENT
SIX MONTHS OPERATIONS)
ENDED YEAR ENDED TO DECEMBER
JUNE 30, 1997 DECEMBER 31, 31,
(UNAUDITED) (D) 1996 (D) 1995 (D)
------------- ------------ --------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.58 $ 11.81 $ 11.43
------------- ------------ --------------
Income from investment operations:
Net investment income (loss).......... (0.06) ** --** 0.05*
Net realized and unrealized gain on
investments.......................... 0.25 1.69 0.33
------------- ------------ --------------
Net increase from investment
operations......................... 0.19 1.69 0.38
------------- ------------ --------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.92) --
------------- ------------ --------------
Total distributions................. -- (0.92) --
------------- ------------ --------------
Net asset value, end of period.......... $ 12.77 $ 12.58 $ 11.81
------------- ------------ --------------
------------- ------------ --------------
Total investment return (c)............. 1.51%(b) 14.22 % 3.32 %
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 458 $ 435 $ 52
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc.
(Note 2)............................. (0.98)%(a) (0.03)% 2.03 %
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... (2.25)%(a) (1.12)% (20.17)%
Ratio of expenses to average net assets:
With expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc.
(Note 2)............................. 1.60%(a) 1.65 % 1.65 %
Without expense reductions and
reimbursement by Chancellor LGT Asset
Management, Inc...................... 2.87%(a) 2.74 % 23.85 %
Portfolio turnover rate+................ 266%(a) 150 % N/A
Average commission rate per share paid
on portfolio transactions+............. $ 0.0545 $ 0.0489 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total Investment Return does not include sales charges.
(d) Calculated based upon weighted average shares outstanding during the
period.
* Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.47), $(0.49), and
$(0.46) for Class A, Class B, and Advisor Class, respectively, from
October 18, 1995 to December 31, 1995.
** Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.19), $(0.28), and
$(0.14) for Class A, Class B, and Advisor Class, respectively, for the
year ended December 31, 1996.
* * * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(0.14), $(0.17), and
$(0.12) for Class A, Class B, and Advisor Class, respectively, for the
period ended June 30, 1997.
+ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguiishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F18
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
MID CAP GROWTH FUND
------------------------------------------------------------------------
CLASS A+
------------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1997 ----------------------------------------------------------
(UNAUDITED) 1996 1995 1994 (D) 1993 1992
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 20.77 $ 19.07 $ 17.69 $ 17.17 $ 17.12 $ 14.13
------------ ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss).......... (0.07) 0.03 0.24 0.04 (0.21) (0.11)
Net realized and unrealized gain
(loss) on investments................ (0.34) 2.96 3.93 2.55 1.56 4.54
------------ ---------- ---------- ---------- ---------- ----------
Net increase (decrease) from
investment operations.............. (0.41) 2.99 4.17 2.59 1.35 4.43
------------ ---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income............ -- -- (0.21) (0.02) -- --
From net realized gain on
investments.......................... -- (1.29) (2.58) (2.05) (1.30) (1.44)
------------ ---------- ---------- ---------- ---------- ----------
Total distributions................. -- (1.29) (2.79) (2.07) (1.30) (1.44)
------------ ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.......... $ 20.36 $ 20.77 $ 19.07 $ 17.69 $ 17.17 $ 17.12
------------ ---------- ---------- ---------- ---------- ----------
------------ ---------- ---------- ---------- ---------- ----------
Total investment return (c)............. (1.93)%(b) 15.65% 23.23% 15.69% 8.3% 31.7%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 262,028 $ 343,427 $ 396,291 $ 196,937 $ 116,468 $ 166,712
Ratio of net investment income (loss) to
average net assets..................... (0.89)%(a) 0.12% 1.24% 0.17% (0.7)% (1.1)%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.43 %(a) 1.36% 1.46% 1.58% 1.6% 1.8%
Without expense reductions............ 1.53 %(a) 1.41% --%* --%* --%* --%*
Portfolio turnover rate++++............. 247 %(a) 253% 71% 102% 92% 114%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0575 $ 0.0536 N/A N/A N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon weighted
average shares outstanding during the year.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
N/A Not applicable.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
The accompanying notes are an integral part of the financial statements.
F19
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
MID CAP GROWTH FUND
---------------------------------------------------------------
CLASS B++
---------------------------------------------------------------
SIX MONTHS
ENDED APRIL 1, 1993
JUNE 30, YEAR ENDED DECEMBER 31, TO
1997 ---------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 (D) 1993
------------ ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 20.28 $ 18.77 $ 17.50 $ 17.09 $ 15.90
------------ ---------- ---------- ---------- -------------
Income from investment operations:
Net investment income (loss).......... (0.19) (0.11) 0.10 (0.09) (0.29)
Net realized and unrealized gain
(loss) on investments................ (0.27) 2.91 3.87 2.55 2.78
------------ ---------- ---------- ---------- -------------
Net increase (decrease) from
investment operations.............. (0.46) 2.80 3.97 2.46 2.49
------------ ---------- ---------- ---------- -------------
Distributions to shareholders:
From net investment income............ -- -- (0.12) -- --
From net realized gain on
investments.......................... -- (1.29) (2.58) (2.05) (1.30)
------------ ---------- ---------- ---------- -------------
Total distributions................. -- (1.29) (2.70) (2.05) (1.30)
------------ ---------- ---------- ---------- -------------
Net asset value, end of period.......... $ 19.82 $ 20.28 $ 18.77 $ 17.50 $ 17.09
------------ ---------- ---------- ---------- -------------
------------ ---------- ---------- ---------- -------------
Total investment return (c)............. (2.27)%(b) 14.82% 22.42% 15.06% 16.1%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 266,856 $ 334,590 $ 348,435 $ 80,060 $ 1,982
Ratio of net investment income (loss) to
average net assets..................... (1.54)%(a) (0.53)% 0.59% (0.48)% (1.3)%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.08 %(a) 2.01% 2.11% 2.23% 2.2%(a)
Without expense reductions............ 2.18 %(a) 2.06% --%* --%* --%*
Portfolio turnover rate++++............. 247 %(a) 253% 71% 102% 92%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0575 $ 0.0536 N/A N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon weighted
average shares outstanding during the year.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
N/A Not applicable.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
The accompanying notes are an integral part of the financial statements.
F20
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
MID CAP GROWTH FUND
-------------------------------------------
ADVISOR CLASS+++
-------------------------------------------
SIX MONTHS JUNE 1, 1995
ENDED YEAR ENDED TO
JUNE 30, 1997 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1996 1995
------------- ------------- -------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 20.76 $ 19.05 $ 20.61
------------- ------------- -------------
Income from investment operations:
Net investment income (loss).......... (0.03) 0.09 0.21
Net realized and unrealized gain
(loss) on investments................ (0.33) 2.91 1.09
------------- ------------- -------------
Net increase (decrease) from
investment operations.............. (0.36) 3.00 1.30
------------- ------------- -------------
Distributions to shareholders:
From net investment income............ -- -- (0.28)
From net realized gain on
investments.......................... -- (1.29) (2.58)
------------- ------------- -------------
Total distributions................. -- (1.29) (2.86)
------------- ------------- -------------
Net asset value, end of period.......... $ 20.40 $ 20.76 $ 19.05
------------- ------------- -------------
------------- ------------- -------------
Total investment return (c)............. (1.73)%)(b) 15.72% 6.01%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 1,028 $ 1,986 $ 1,394
Ratio of net investment income (loss) to
average net assets..................... (0.54)%(a) 0.47% 1.59%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.08%(a) 1.01% 1.11%(a)
Without expense reductions............ 1.18%(a) 1.06% --%*
Portfolio turnover rate++++............. 247%(a) 253% 71%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0575 $ 0.0536 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon weighted
average shares outstanding during the year.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
N/A Not applicable.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
The accompanying notes are an integral part of the financial statements.
F21
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
VALUE FUND
---------------------------------------------
CLASS A
---------------------------------------------
OCTOBER 18,
1995
SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED OF OPERATIONS)
JUNE 30, 1997 DECEMBER 31, TO DECEMBER 31,
(UNAUDITED) (D) 1996 (D) 1995 (D)
------------- ------------- ---------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 14.65 $ 12.76 $ 11.43
------------- ------------- ---------------
Income from investment operations:
Net investment income (loss).......... 0.05 * * (0.01) * * 0.03*
Net realized and unrealized gain on
investments.......................... 2.02 1.94 1.30
------------- ------------- ---------------
Net increase from investment
operations......................... 2.07 1.93 1.33
------------- ------------- ---------------
Distributions to shareholders:
From net investment income............ -- -- --
From net realized gain on
investments.......................... -- (0.04) --
------------- ------------- ---------------
Total distributions................. -- (0.04) --
------------- ------------- ---------------
Net asset value, end of period.......... $ 16.72 $ 14.65 $ 12.76
------------- ------------- ---------------
------------- ------------- ---------------
Total investment return (c)............. 14.13%(b) 15.12% 11.64% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 5,206 $ 2,529 $ 870
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
Asset Management, Inc. (Note 2)...... 0.62%(a) (0.10)% 1.10% (a)
Without reimbursement by Chancellor
LGT Asset Management, Inc............ (0.58)%(a) (3.61)% (47.44)% (a)
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
Asset Management, Inc. (Note 2)...... 2.00%(a) 2.00% 2.00% (a)
Without reimbursement by Chancellor
LGT Asset Management, Inc............ 3.27%(a) 5.51% 50.54% (a)
Ratio of interest expense to average net
assets (Note 1)........................ .07%(a) -- --
Portfolio turnover rate+................ 102%(a) 256% N/A
Average commission rate per share paid
on portfolio transactions+............. $ 0.0242 $ 0.0551 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon weighted average shares outstanding during the
period.
* Before reimbursement by Chancellor LGT Asset Management, Inc, the net
investment loss per share would have been $(1.11), $(1.13), and
$(1.10) for Class A, Class B, and Advisor Class, respectively, from
October 18, 1995 to December 31, 1995.
* * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(.50), $(.59), and $(.46)
for Class A, Class B, and Advisor Class, respectively, for the period
ended December 31, 1996.
* * * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(.03), $(.07), and $(.03)
for Class A, Class B, and Advisor Class, respectively, for the period
ended June 30, 1997.
+ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F22
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
VALUE FUND
---------------------------------------------
CLASS B
---------------------------------------------
OCTOBER 18,
1995
SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED OF OPERATIONS)
JUNE 30, 1997 DECEMBER 31, TO DECEMBER 31,
(UNAUDITED) (D) 1996 (D) 1995 (D)
------------- ------------- ---------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 14.54 $ 12.75 $ 11.43
------------- ------------- ---------------
Income from investment operations:
Net investment income (loss).......... -- * * (0.10) * * 0.01*
Net realized and unrealized gain on
investments.......................... 2.00 1.93 1.31
------------- ------------- ---------------
Net increase from investment
operations......................... 2.00 1.83 1.32
------------- ------------- ---------------
Distributions to shareholders:
From net investment income............ -- -- --
From net realized gain on
investments.......................... -- (0.04) --
------------- ------------- ---------------
Total distributions................. -- (0.04) --
------------- ------------- ---------------
Net asset value, end of period.......... $ 16.54 $ 14.54 $ 12.75
------------- ------------- ---------------
------------- ------------- ---------------
Total investment return (c)............. 13.76%(b) 14.35% 11.55% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 10,000 $ 5,503 $ 1,254
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
Asset Management, Inc. (Note 2)...... (0.03)%(a) (0.75)% 0.45% (a)
Without reimbursement by Chancellor
LGT Asset Management, Inc............ (1.23)%(a) (4.26)% (48.09)% (a)
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
Asset Management, Inc. (Note 2)...... 2.65%(a) 2.65% 2.65% (a)
Without reimbursement by Chancellor
LGT Asset Management, Inc............ 3.92%(a) 6.16% 51.19% (a)
Ratio of interest expense to average net
assets (Note 1)........................ .07%(a) -- --
Portfolio turnover rate+................ 102%(a) 256% N/A
Average commission rate per share paid
on portfolio transactions+............. $ 0.0242 $ 0.0551 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon weighted average shares outstanding during the
period.
* Before reimbursement by Chancellor LGT Asset Management, Inc, the net
investment loss per share would have been $(1.11), $(1.13), and
$(1.10) for Class A, Class B, and Advisor Class, respectively, from
October 18, 1995 to December 31, 1995.
* * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(.50), $(.59), and $(.46)
for Class A, Class B, and Advisor Class, respectively, for the period
ended December 31, 1996.
* * * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(.03), $(.07), and $(.03)
for Class A, Class B, and Advisor Class, respectively, for the period
ended June 30, 1997.
+ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F23
<PAGE>
GT GLOBAL AMERICA FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
VALUE FUND
---------------------------------------------
ADVISOR CLASS
---------------------------------------------
OCTOBER 18,
1995
SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED OF OPERATIONS)
JUNE 30, 1997 DECEMBER 31, TO DECEMBER 31,
(UNAUDITED) (D) 1996 (D) 1995 (D)
------------- ------------- ---------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 14.72 $ 12.77 $ 11.43
------------- ------------- ---------------
Income from investment operations:
Net investment income (loss).......... 0.07 * * 0.03* * 0.04*
Net realized and unrealized gain on
investments.......................... 2.04 1.96 1.30
------------- ------------- ---------------
Net increase from investment
operations......................... 2.11 1.99 1.34
------------- ------------- ---------------
Distributions to shareholders:
From net investment income............ -- -- --
From net realized gain on
investments.......................... -- (0.04) --
------------- ------------- ---------------
Total distributions................. -- (0.04) --
------------- ------------- ---------------
Net asset value, end of period.......... $ 16.83 $ 14.72 $ 12.77
------------- ------------- ---------------
------------- ------------- ---------------
Total investment return (c)............. 14.33%(b) 15.58% 11.72% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 388 $ 191 $ 81
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
Asset Management, Inc. (Note 2)...... 0.97%(a) 0.25% 1.45% (a)
Without reimbursement by Chancellor
LGT Asset Management, Inc............ (0.23)%(a) (3.26)% (47.09)% (a)
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
Asset Management, Inc. (Note 2)...... 1.65%(a) 1.65% 1.65% (a)
Without reimbursement by Chancellor
LGT Asset Management, Inc............ 2.92%(a) 5.16% 50.19% (a)
Ratio of interest expense to average net
assets (Note 1)........................ .07%(a) -- --
Portfolio turnover rate+................ 102%(a) 256% N/A
Average commission rate per share paid
on portfolio transactions+............. $ 0.0242 $ 0.0551 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
(d) Calculated based upon weighted average shares outstanding during the
period.
* Before reimbursement by Chancellor LGT Asset Management, Inc, the net
investment loss per share would have been $(1.11), $(1.13), and
$(1.10) for Class A, Class B, and Advisor Class, respectively, from
October 18, 1995 to December 31, 1995.
* * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(.50), $(.59), and $(.46)
for Class A, Class B, and Advisor Class, respectively, for the period
ended December 31, 1996.
* * * Before reimbursement by Chancellor LGT Asset Management, Inc. the net
investment loss per share would have been $(.03), $(.07), and $(.03)
for Class A, Class B, and Advisor Class, respectively, for the period
ended June 30, 1997.
+ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F24
<PAGE>
GT GLOBAL AMERICA FUNDS
NOTES TO
FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global America Small Cap Growth Fund, GT Global America Mid Cap Growth Fund,
and GT Global America Value Fund ("Funds"), are 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 GT Global America Small Cap Growth Fund and GT Global America Value Fund
invest substantially all of their investable assets in Small Cap Growth
Portfolio and Value Portfolio ("Portfolios"), respectively. Each of these
Portfolios is organized as a New York Trust and is registered under the 1940 Act
as a diversified, open-end management investment company.
The Portfolios have investment objectives, policies, and limitations
substantially identical to those of their corresponding Funds. Therefore, the
financial statements of the GT Global America Small Cap Growth Fund, the GT
Global America Value Fund, and their respective Portfolios have been presented
on a consolidated basis, and represent all activities of both the respective
Funds and Portfolios. Through June 30, 1997, all of the shares of beneficial
interest of each Portfolio were owned either by its respective fund or
Chancellor LGT Asset Management, Inc. (the "Manager"), which has a nominal
($100) investment in each Portfolio.
The Funds offer 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 Funds 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 Funds. 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 Funds and Portfolios in the preparation of the financial
statements. The policies are in conformity with generally accepted accounting
principles, and the financial statements may include certain estimates made by
management.
(A) PORTFOLIO VALUATION
The Funds calculate the net asset value of and complete orders to purchase,
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded or on the principal over-the-counter market on 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 the Manager to be the
primary market.
Fixed income investments are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for investments of comparative maturity, quality and type; however, when the
Manager deems it appropriate, prices obtained for the day of valuation from a
bond pricing service will be used. Short-term investments with a maturity of 60
days or less are valued at amortized cost, adjusted for market fluctuation, if
any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Company's Board of Trustees.
(B) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by a Fund or Portfolio (the
phrase "Fund or Portfolio" hereinafter includes the GT Global America Mid Cap
Growth Fund and each of the two Portfolios), it is the Fund's or Portfolio's
policy to always receive, as collateral, United States government securities or
other high quality debt securities of which the value, including accrued
interest, is at least equal to the amount to be repaid to the Fund or Portfolio
under each agreement at its maturity.
(C) OPTION ACCOUNTING PRINCIPLES
When a Fund or Portfolio writes a call or put option, an amount equal to the
premium received is included in the Fund's or Portfolio's "Statement of Assets
and Liabilities" as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market value
of the option. The current market value of an option listed on a traded exchange
is valued at its last bid price, or, in the case of an over-the-counter option,
is valued at the average of the last bid prices obtained from brokers, unless a
quotation from only one broker is available, in which case only that broker's
price will be used. If an option expires on its stipulated expiration date or if
the Fund or Portfolio 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 or Portfolio can write options only on a covered basis,
which, for a call, requires that the Fund or Portfolio hold the underlying
security, and, for a put, requires the Fund or Portfolio to set aside cash, U.S.
government securities or other liquid
F25
<PAGE>
GT GLOBAL AMERICA FUNDS
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 or
Portfolio may use options to manage its exposure to the stock market and to
fluctuations in interest rates.
The premium paid by the Fund or Portfolio for the purchase of a call or put
option is included in the Fund's or Portfolio'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 or Portfolio has
purchased expires on the stipulated expiration date, the Fund or Portfolio
realizes a loss in the amount of the cost of the option. If the Fund or
Portfolio enters into a closing sale transaction, the Fund or Portfolio 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 or Portfolio
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 or Portfolio
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 or Portfolio 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 or Portfolio 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 or Portfolio may not be able to enter into a closing
transaction because of an illiquid secondary market.
(D) 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 or Portfolio 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 or Portfolio
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 or Portfolio as unrealized gains
or losses. When the contract is closed, the Fund or Portfolio 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 or Portfolio is that the change in value of the underlying
securities may not correlate to the change in value of the contracts. The Fund
or Portfolio may use futures contracts to manage its exposure to the stock
market and to fluctuations in interest rates.
(E) 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 or Portfolio
may trade securities on other than normal settlement terms. This may increase
the risk if the other party to the transaction fails to deliver and causes the
Fund or Portfolio to subsequently invest at less advantageous prices.
(F) PORTFOLIO SECURITIES LOANED
At June 30, 1997, stocks with an aggregate value listed below were on loan to
brokers. The loans were secured by cash collateral received by the Portfolios:
<TABLE>
<CAPTION>
JUNE 30, 1997 SIX MONTHS ENDED
-------------------------------- JUNE 30, 1997
AGGREGATE VALUE CASH -----------------
GT GLOBAL ON LOAN COLLATERAL FEES EARNED
- ---------------------------------------- --------------- -------------- -----------------
<S> <C> <C> <C>
America Mid Cap Growth Fund............. $ 80,520,244 $ 83,954,900 $266,502
America Small Cap Growth Fund........... 1,115,263 1,138,800 4,603
</TABLE>
Cash collateral is received by the Fund or Portfolio against loaned securities
in the amount at least equal to 102% of the market value of the loaned
securities at the inception of each loan. This collateral must be maintained at
not less than 100% of the market value of the loaned securities during the
period of the loan. Security lending fees earned were used to reduce the
Portfolios' custodian fees.
(G) DEFERRED ORGANIZATIONAL EXPENSES
Expenses incurred by the GT Global America Small Cap Growth Fund, the GT Global
America Value Fund, and their respective Portfolios in connection with their
organization, their initial registration with the Securities and Exchange
Commission and with various states and the initial public offering of their
shares aggregated $63,500 for each Fund and $25,000 for each Portfolio. These
expenses are being amortized on a straight-line basis over a five-year period.
(H) TAXES
It is the policy of the Funds and Portfolios to meet the requirements for
qualification as a "regulated investment company" under the Internal Revenue
Code of 1986, as amended ("Code"). It is also the intention of the Funds to make
distributions sufficient to avoid imposition of any excise tax under Section
4982 of the Code. Therefore, no provision has been made for Federal taxes on
income, capital gains, or unrealized appreciation of securities held, and excise
tax on income and capital gains.
F26
<PAGE>
GT GLOBAL AMERICA FUNDS
(I) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by each 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 or Portfolios and timing
differences.
(J) RESTRICTED SECURITIES
A Fund or Portfolio is permitted to invest in privately placed restricted
securities. These securities may be resold in transactions exempt from
registration or to the public if the securities are registered. Disposal of
these securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult.
(K) INDEXED SECURITIES
A Fund or Portfolio 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.
(L) LINE OF CREDIT
Each of the Funds, along with certain other funds advised by the Manager, has a
line of credit with BankBoston and State Street Bank. The arrangements with the
banks allow all specified funds to borrow an aggregate maximum amount of
$200,000,000. Each of these funds is limited to borrowing up to 33 1/3% of the
value of each Fund's total assets. On June 30, 1997, GT Global America Mid Cap
Growth Fund had $7,910,000 in loans outstanding.
For the period ended June 30, 1997, the weighted average outstanding daily
balance of bank loans (based on the number of days the loans were outstanding)
for GT Global America Mid Cap Growth Fund was $4,943,760, with a weighted
average interest rate of 6.41%. Interest expense for the period ended June 30,
1997 was $21,993, included in "Other Expenses" on the Statement of Operations.
2. RELATED PARTIES
Chancellor LGT Asset Management, Inc. is the Funds' and Portfolios' investment
manager and administrator. GT Global America Small Cap Growth Fund and GT Global
America Value Fund each pays the Manager administration fees at the annualized
rate of 0.25% of such Fund's average daily net assets. Each Portfolio pays
investment management and administration fees to the Manager at the annualized
rate of 0.475% on the first $500 million of average daily net assets of the
Portfolio; 0.45% on the next $500 million; 0.425% on the next $500 million; and
0.40% on amounts thereafter. GT Global America Mid Cap Growth Fund pays
investment management and administration fees to the Manager at the annualized
rate of 0.725% on the first $500 million of average daily net assets on the
Fund; 0.70% on the next $500 million; 0.675% on the next $500 million and 0.65%
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 or Portfolio's
expenses (exclusive of brokerage commissions, taxes, interest,
distribution-related expenses and extraordinary expenses) exceed the most
stringent limits prescribed by the laws or regulations of any state in which the
Fund's shares are offered for sale, based on the average total net asset value
of the Fund.
GT Global, Inc. ("GT Global"), an affiliate of the Manager, serves as the Funds'
distributor. The Funds offer Class A, Class B, and Advisor Class shares for
purchase.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. GT Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the period ended June 30, 1997, GT Global retained the
following sales charges: $23,528 for the GT Global America Mid Cap Growth Fund,
$3,211 for the GT Global America Small Cap Growth Fund, and $3,540 for the GT
Global America Value Fund. 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 such CDSCs in
the amount of $19,287 for the period ended June 30, 1997 for the GT Global
America Mid Cap Growth Fund. GT Global also makes ongoing shareholder servicing
and trail commission payments to dealers whose clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, GT Global from its own resources pays commissions to dealers through which
the sales are made. Certain redemptions of Class B shares made within six years
of purchase are subject to CDSCs, in accordance with the Fund's current
prospectus. For the period ended June 30, 1997, GT Global collected such CDSCs
in the amount of: $1,288,203 for the GT Global America Mid Cap Growth Fund,
$24,094 for the GT Global America Small Cap Growth Fund, and $29,944 for the GT
Global America Value Fund. 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 Funds' Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which a Fund
reimburses GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, a 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 GT Global's 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 GT Global's 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.
F27
<PAGE>
GT GLOBAL AMERICA FUNDS
Pursuant to the Funds' Class B Plan, a 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 GT Global's 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 GT Global's expenditures incurred in providing services as
distributor. Expenses incurred under the Class B Plan in excess of 1.00%
annually may be carried forward for reimbursement in subsequent years as long as
that Plan continues in effect.
The Manager and GT Global voluntarily have undertaken to limit each Fund's
expenses (exclusive of brokerage commissions, taxes, interest, and extraordinary
items) to the maximum annual level of 2.00%, 2.65%, and 1.65% of the average
daily net assets of the Fund's Class A, Class B, and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by LGT
of investment management and administration fees, waivers by GT Global of
payments under the Class A Plan and/or Class B Plan and/or reimbursements by 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 Funds. 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
Funds 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 Funds. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of a 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 a Fund's average daily net assets.
The Company pays each of its Trustees who is not an employee, officer or
director of the Manager, GT Global or GT Services $5,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Trustee. Each
Portfolio pays each of its Trustees who is not an employee, officer or director
of the Manager, GT Global or GT Services $500 per year plus $150 for each
meeting of the board or any committee thereof attended by the Trustees.
At June 30, 1997, all of the shares of beneficial interest of each Portfolio
were owned either by its Fund or the Manager.
3. PURCHASES AND SALES OF SECURITIES
For the period ended June 30, 1997, purchases of investment securities by the GT
Global America Mid Cap Growth Fund, Small Cap Growth Portfolio, and Value
Portfolio, other than U.S. government obligations and short-term investments,
aggregated $685,548,564, $25,148,402 and $10,403,984, respectively. Sales of
investment securities by the GT Global America Mid Cap Growth Fund, Small Cap
Growth Portfolio, and Value Portfolio, other than U.S. government obligations
and short-term investments, aggregated $769,877,214, $22,295,928 and $5,539,133,
respectively. There were no purchases or sales of U.S. government obligations by
a Fund or Portfolio during the period.
F28
<PAGE>
GT GLOBAL AMERICA FUNDS
4. CAPITAL SHARES
At June 30, 1997, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
Funds were as follows:
CAPITAL SHARE TRANSACTIONS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 590,844 $ 7,006,946 1,491,083 $ 20,216,595
Shares issued in connection with
reinvestment of distributions......... -- -- 39,998 505,573
------------ -------------- ------------ ---------------
590,844 7,006,946 1,531,081 20,722,168
Shares repurchased...................... (585,376) (7,052,137) (1,019,989) (13,880,892)
------------ -------------- ------------ ---------------
Net increase (decrease)................. 5,468 $ (45,191) 511,092 $ 6,841,276
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 720,713 $ 8,270,242 1,665,796 $ 22,115,741
Shares issued in connection with
reinvestment of distributions......... -- -- 52,848 663,246
------------ -------------- ------------ ---------------
720,713 8,270,242 1,718,644 22,778,987
Shares repurchased...................... (617,126) (7,110,478) (1,029,367) (13,501,795)
------------ -------------- ------------ ---------------
Net increase............................ 103,587 $ 1,159,764 689,277 $ 9,277,192
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 6,646 $ 81,116 33,521 $ 447,953
Shares issued in connection with
reinvestment of distributions......... -- -- 2,144 27,228
------------ -------------- ------------ ---------------
6,646 81,116 35,665 475,181
Shares repurchased...................... (5,363) (61,937) (5,440) (72,841)
------------ -------------- ------------ ---------------
Net increase............................ 1,283 $ 19,179 30,225 $ 402,340
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
</TABLE>
F29
<PAGE>
GT GLOBAL AMERICA FUNDS
GT GLOBAL AMERICA MID CAP GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 15,240,969 $ 307,607,284 89,962,964 $ 1,853,673,285
Shares issued in connection with
reinvestment of distributions......... -- -- 853,598 17,867,701
------------ -------------- ------------ ---------------
15,240,969 307,607,284 90,816,562 1,871,540,986
Shares repurchased...................... (18,909,812) (380,596,479) (95,061,922) (1,956,032,031)
------------ -------------- ------------ ---------------
Net decrease............................ (3,668,843) $ (72,989,195) (4,245,360) $ (84,491,045)
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 3,832,508 $ 73,891,934 11,161,651 $ 224,412,718
Shares issued in connection with
reinvestment of distributions......... -- -- 803,575 16,429,676
------------ -------------- ------------ ---------------
3,832,508 73,891,934 11,965,226 240,842,394
Shares repurchased...................... (6,868,861) (131,131,746) (14,026,348) (280,392,879)
------------ -------------- ------------ ---------------
Net decrease............................ (3,036,353) $ (57,239,812) (2,061,122) $ (39,550,485)
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 259,416 $ 5,379,697 485,169 $ 10,230,701
Shares issued in connection with
reinvestment of distributions......... -- -- 8,013 167,629
------------ -------------- ------------ ---------------
259,416 5,379,697 493,182 10,398,330
Shares repurchased...................... (304,686) (6,252,243) (470,673) (9,846,041)
------------ -------------- ------------ ---------------
Net increase (decrease)................. (45,270) $ (872,546) 22,509 $ 552,289
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
</TABLE>
F30
<PAGE>
GT GLOBAL AMERICA FUNDS
GT GLOBAL AMERICA VALUE FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 336,999 $ 5,270,500 392,444 $ 5,443,835
Shares issued in connection with
reinvestment of distributions......... -- -- 365 5,408
------------ -------------- ------------ ---------------
336,999 5,270,500 392,809 5,449,243
Shares repurchased...................... (198,317) (3,136,996) (288,378) (3,812,666)
------------ -------------- ------------ ---------------
Net increase............................ 138,682 $ 2,133,504 104,431 $ 1,636,577
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 607,560 $ 9,432,518 445,266 $ 6,167,388
Shares issued in connection with
reinvestment of distributions......... -- -- 918 13,509
------------ -------------- ------------ ---------------
607,560 9,432,518 446,184 6,180,897
Shares repurchased...................... (381,572) (5,799,270) (166,052) (2,502,350)
------------ -------------- ------------ ---------------
Net increase............................ 225,988 $ 3,633,248 280,132 $ 3,678,547
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------------------- -----------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 11,393 $ 180,073 10,181 $ 139,541
Shares issued in connection with
reinvestment of distributions......... -- -- 30 443
------------ -------------- ------------ ---------------
11,393 180,073 10,211 139,984
Shares repurchased...................... (1,364) (21,405) (3,594) (49,444)
------------ -------------- ------------ ---------------
Net increase............................ 10,029 $ 158,668 6,617 $ 90,540
------------ -------------- ------------ ---------------
------------ -------------- ------------ ---------------
</TABLE>
5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of a Fund's or Portfolio's expenses. For the period ended June 30, 1997, the
expenses of GT Global America Mid Cap Growth Fund were reduced by $26,253 under
these arrangements.
F31
<PAGE>
GT GLOBAL AMERICA FUNDS
GT GLOBAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
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 CONSUMER PRODUCTS AND SERVICES FUND
Focuses on the worldwide opportunities from the demand for consumer products
and services
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
- - REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
- - SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA MID CAP GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
- - GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government securities from around the world
- - INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
GT GLOBAL FLOATING RATE FUND
Invests primarily in senior secured floating rate loans that have the
potential to achieve a high level of current income
- - MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
USFSR708071JR.455
August, 1997
DATED MATERIAL
PLEASE EXPEDITE
GT GLOBAL
AMERICA FUNDS
SEMIANNUAL REPORT
June 30, 1997
GT Global Inc.
Fifty California Street
27th Floor
San Francisco, CA
94111-4624
