G T GLOBAL GROWTH SERIES, N-30D, 1997-09-03

G T GLOBAL GROWTH SERIES
N-30D, 1997-09-03

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<PAGE>
GT GLOBAL
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
JAPAN
GROWTH FUND

SEMIANNUAL REPORT
JUNE 30, 1997

[LOGO]
<PAGE>
TABLE
OF CONTENTS

<TABLE>
<S> <C>
Message from the
Chairman............. 1

Report from the Fund
Managers and Key
Portfolio Holdings... 2

Financial
Statements........... F1

The views of the Fund's manage-
ment as described in this report
are as of the date it was
written. Portfolio holdings and
allocations are as of June 30,
1997, unless otherwise noted.
Views, portfolio holdings and
allocations may have changed
subsequent to these dates.
</TABLE>
<PAGE>
MESSAGE FROM THE CHAIRMAN

Dear Investor,

This report is written in a style we hope you find enjoyable to read and easy
to understand. Our intention is to provide our shareholders with meaningful
information about the relative performance of GT Global Mutual Funds. We
think it is important to help investors develop a global perspective about
their investments, including developments in individual economies around the
world. Specifically, we address how macroeconomic and political events within
countries influence investment results and, ultimately, Fund performance.

In this semiannual report, we describe our management process and offer
insights into the Fund's investment strategy. Companies in which the Fund
invests are discussed, as well as issues pertinent to decisions affecting the
Funds. Biographical information on portfolio managers' background and
experience is also included, and through our question and answer format, we
make it possible for shareholders to be included in the thought processes
that form the basis of their investment decisions. Additionally, we have
included performance illustrations that show the historical returns of a
hypothetical investment and compare it to an appropriate benchmark.

We make every effort to communicate as clearly as possible because we want
you, our shareholders, to have a useful understanding of what is happening
with your investments in GT Global Mutual Funds, and why.

We would also like to emphasize that today--as global investing continues to
become increasingly complex, information travels as quickly as a keystroke,
and critical decisions must be made within shorter time frames--prudent
advice, professional management, global diversification and investing for the
long term have never been more important.

As always, we appreciate and value our shareholders in GT Global Mutual
Funds.

Sincerely,

/s/ William J. Guilfoyle

William J. Guilfoyle
CHAIRMAN OF THE BOARD AND PRESIDENT
GT GLOBAL MUTUAL FUNDS

1
* * *

<PAGE>

GT GLOBAL JAPAN GROWTH FUND
PERFORMANCE SUMMARY

INVESTMENT OBJECTIVE

The GT Global Japan Growth Fund seeks long-term growth of capital by
investing primarily in securities of issuers located in Japan.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT Global Japan Growth Fund Class A MSCI Japan Index
<S> <C> <C>
7/19/85 $9,525 $10,000
9,535 9,582
9,487 9,813
10,458 10,855
10,859 11,199
11,411 11,367
11,811 12,041
12,297 12,375
13,440 13,868
15,308 16,845
16,137 17,487
16,252 17,374
17,168 19,140
19,405 21,673
20,764 23,645
20,041 24,237
16,301 21,006
17,853 22,401
19,048 24,048
19,395 27,918
19,414 28,421
19,864 31,537
21,664 36,501
23,064 36,436
23,882 33,740
24,997 32,561
28,033 36,621
29,945 35,329
24,741 32,681
26,022 33,989
28,974 34,432
29,772 36,290
32,989 39,033
34,710 41,978
37,564 42,418
36,319 40,505
35,200 38,981
35,032 40,772
33,801 37,695
34,024 39,321
32,675 42,606
35,569 46,396
35,313 46,666
37,785 46,807
39,656 47,716
40,759 46,053
42,129 45,982
42,162 43,381
40,492 41,441
46,004 46,941
46,539 43,706
50,681 46,494
49,144 45,279
51,416 47,593
56,759 47,509
57,971 44,655
54,785 40,041
48,967 32,280
47,686 32,691
54,854 37,374
55,443 35,632
57,001 35,155
49,470 31,738
39,569 26,548
46,581 32,989
41,824 29,029
40,450 30,398
40,309 31,266
2/28/91 45,136 35,213
44,854 33,028
44,995 33,854
45,383 33,702
45,066 31,281
45,383 32,252
41,824 30,475
44,854 33,141
45,031 34,577
39,287 32,139
39,322 33,160
37,525 31,628
36,046 28,991
32,698 25,853
31,641 24,265
33,156 26,211
32,099 23,819
30,760 23,550
32,275 27,727
31,747 27,067
30,478 25,815
30,619 26,486
30,864 26,099
30,757 26,018
31,467 27,150
34,589 30,974
38,456 36,484
39,520 37,494
38,704 36,979
40,797 39,326
41,897 40,189
42,323 38,284
42,181 38,115
39,555 31,794
41,187 32,807
44,132 38,108
46,473 39,856
45,693 38,156
46,296 39,787
46,438 40,663
48,779 42,673
47,396 41,145
46,863 41,430
45,232 40,413
45,338 41,526
43,068 39,441
43,891 39,899
40,278 37,577
38,689 35,767
39,700 39,064
39,809 40,976
37,930 38,441
38,833 36,610
42,157 39,529
43,204 37,945
44,180 38,272
43,132 36,136
43,060 38,280
44,740 40,242
44,699 39,718
44,008 39,015
44,577 40,397
46,245 42,699
45,065 40,506
45,594 40,725
44,821 38,906
43,438 37,172
43,642 38,464
42,218 35,888
41,893 36,577
41,418 34,053
40,739 30,351
40,611 31,064
40,060 30,045
42,097 31,138
45,237 34,582
6/30/97 45,873 37,171
</TABLE>

The chart above shows the performance of the GT Global Japan Growth Fund,
Class A shares, since the Fund's inception versus the MSCI Japan Index. This
represents a cumulative return of 358.73% and an average annual total return
of 13.60% for the Fund. The chart assumes a hypothetical $10,000 initial
investment in the Fund's Class A shares and reflects all Fund expenses and
the maximum 4.75% sales charge. A $10,000 investment in the Fund's Class B
shares at inception on April 1,1993, would have been valued at $12,584 on
June 30, 1997. This figure reflects all Fund expenses and the applicable
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years), assuming a complete redemption at the end of the period. A
$10,000 investment in Advisor Class shares at inception on June 1, 1995,
would have been worth $12,190 on June 30, 1997.

AVERAGE ANNUAL TOTAL RETURNS%(1)
June 30, 1997

Share Class Without Sales Charge(2) With Sales Charge
1-Year 5-Year 10-Year LOF 1-Year 5-Year 10-Year LOF
Class A(3) .61 7.40 6.75 14.06 -4.17 6.36 6.23 13.60
Class B(3) .07 N/A N/A 5.95 -4.72 N/A N/A 5.56
Advisor Class(4) 1.07 N/A N/A 9.98 N/A N/A N/A N/A

HISTORICAL PERFORMANCE(2)
Annual Total Returns% (last 10 years)

<TABLE>
<CAPTION>
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A 52.11(3) 21.88 60.73 -28.73 -2.79 -21.51 33.45 6.56 1.94 -7.43
Class B N/A N/A N/A N/A N/A N/A 17.46(3) 5.81 1.2 -8.05
</TABLE>

(1) Figures assume reinvestment of all dividends and capital gain
distributions at net asset value.

(2) Performance data do not reflect the maximum 4.75% sales charge and the
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years) for Class A and Class B shares, respectively, which, if
included, would have reduced performance quoted.

(3) The Fund began operations (Class A shares) on July 19, 1985; Class B shares
commenced on April 1, 1993.

(4) The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public and are only available
through certain employee benefit plans, financial institutions and other
entities that have entered into specific agreements with GT Global. Please
see the "Alternative Purchase Plan" section in the Fund's prospectus.

The above data represent past performance of the Fund's shares, which does
not guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.

2
* * *
<PAGE>
INTERVIEW WITH PORTFOLIO MANAGER
ANDREW CALLENDER

Q HOW DID THE FUND PERFORM?

A The Fund outperformed the Morgan Stanley Capital International (MSCI)
Japan Index5 modestly over the first six months of 1997, rising 10.76% for
Class A shares (5.50% taking into account the maximum 4.75% sales charge)
against the index's 9.16% gain. Total return for Class B shares was 10.54%
(5.54% including the maximum 5% contingent deferred sales charge). This
outperformance was achieved despite the Fund's rather substantial cash
holdings over the period.

Individual stock holdings were generally strong, with some of the Fund's
largest holdings performing very well. For example, Aoyama Trading rose
approximately 18% in yen terms, while Takeda Chemical gained 31%.

Unlike the previous six months, the Fund benefited little from its defensive
policy of holding a portion of its yen assets hedged back into U.S. dollars,
despite the dollar's rise to 127 yen/dollar at the very beginning of May. By
the end of June, the dollar had retraced virtually all of its gains to end
the half-year essentially unchanged.

Q HOW HAS THE GENERAL MARKET PERFORMED?

A The performance of the Japanese indices continue to disguise some
remarkably divergent sector and stock performances. Indeed, continued foreign
buying has focused largely on a narrow range of companies: electrical
exporters such as Canon and Sony; retailers such as Ito-Yokado; non-bank
financials such as Nichiei; and pharmaceuticals, notably Takeda Chemical.
Much to the benefit of the Fund, it has had a concentration in these types of
companies. We have been attracted to these investment opportunities as they
tend to sell at price/earnings ratios lower than the overall stock market,
with higher earnings growth.

Q WHAT SECTORS HAS THE FUND TENDED TO AVOID?

A In contrast to the industries mentioned above, the construction sector the
majority of the basic material companies have been very weak. In part, fear
of further bankruptcies, and in part pessimism over the sustainability of
Japan's economic resurgence lie behind these trends. The portfolio has little
exposure to such areas.

Q WHAT IS YOUR INVESTMENT STRATEGY LIKELY TO BE GOING FORWARD?

A Under the current circumstances, we intend to continue to concentrate on
companies that, over the long term, we believe will be able to generate
rising income streams for their shareholders. Over time, we think these types
of companies should perform well as domestic institutions seek to maximize
the financial returns from their portfolios.

Q ARE THE DAYS OF JAPAN'S WEAK ECONOMIC GROWTH SAFELY BEHIND?

A On a cyclical basis, Japan's economy is decelerating after the imposition
of the consumption tax increase at the end of March. Auto production, which
has been robust, is also likely, in our opinion, to decelerate as end demand
slows. Yet, opportunity in Japan does not rest solely on the correct
interpretation of short-term economic cycles. Instead, we believe the real
opportunity lies in Japan's potential for change. At the macro level it means
deregulation, while at the micro level this means corporate restructuring.

Presently, however, the pace of deregulation remains painfully slow and
corporates have yet to fully embrace the idea of radical restructuring to
raise profitability. As this accelerates, we anticipate investable
opportunities for the portfolio will broaden, and we are likely to adopt a
more fully invested position in the Japanese stock market.

ABOUT THE PORTFOLIO MANAGER

ANDREW CALLENDER - Head of investment in Japan. Mr. Callender joined LGT's
Hong Kong office in 1987. He subsequently worked in our Tokyo and Singapore
offices before returning to Tokyo to assume his current responsibilities. Mr.
Callender received his M.A. from Oxford University.

(5) The MSCI Japan Index is an arithmetic average, weighted by market value, of
the performance of 310 securities listed on Japanese stock exchanges. It
includes the effect of reinvested dividends and is measured in U.S. dollars.

The index is unmanaged, not available for direct investment and does not
include the effects of sales charges and professional management fees.

3
* * *
<PAGE>
ALLOCATION OF NET ASSETS %
JUNE 30, 1997

Services 26.2
Technology 11.7
Consumer Durables 10.4
Health Care 9.8
Finance 8.3
Capital Goods 7.0
Materials/Basic Industry 5.5
Consumer Non-Durables 5.2
Short Term & Other 15.9

A complete listing of holdings and allocations may be found in the Financial
Statements section of this report.

<TABLE>
<CAPTION>
GT GLOBAL JAPAN GROWTH FUND % of
KEY PORTFOLIO HOLDINGS Net Assets
<S> <C>
NICHIEI CO., LTD. A financial services company providing short-term 6.4
financing to small and medium-sized businesses in Japan that do not have
property to use as collateral for bank loans. Loans are restricted in size
and backed by third-party guarantees. The company is actively seeking to
expand business in the regional areas.

TAKEDA CHEMICAL INDUSTRIES A top pharmaceutical manufacturer, most 6.0
recognized for its vitamin tablet Alinamin, and a leader in antibiotics since
1965. Takeda is also a front runner in overseas operations in the U.S. and
other countries, with its Central Research Lab as an operations base.

ITO-YOKADO CO., LTD. Operates one of the best-managed supermarket chains in 5.3
Japan. Despite a sluggish retail environment, Ito-Yokado has managed to grow
sales and profits through competitive pricing, a strong merchandising
strategy, sound inventory and cost control.

SOUTHLAND CORP. A convenience store chain with company-operated, franchised 5.0
and licensed locations worldwide. The company conducts business principally
under the Seven-Eleven name. Its activities also include the operation of
High's Dairy Stores, Quik Marts and Super 7 high-volume gasoline outlets and
mini-convenience stores.

DAINI DENDEN INC. CORP. (DDI) Japan's second-largest provider of cellular 4.8
phone services, DDI has benefited from the liberalization of domestic
cellular services and cellular handset sales. The company also has more than
10% of the domestic long-distance market.

AMWAY JAPAN LTD. Door-to-door marketer of detergents, cosmetics, kitchenware 4.5
and related products.

AOYAMA TRADING CO., LTD. The largest suburban discount chain store in Japan, 4.4
specializing in men's discount suits. The company is developing a casual wear
line to complement its business clothing sales. Generally, Aoyama sells
lesser-known brand-name items.

MURATA MANUFACTURING CO., LTD. Manufacturer of a large range of electric 3.8
components for the semiconductor, industrial electronics and
telecommunications industry. They have production facilities throughout Asia.

CANON INC. Manufactures office equipment. Canon also produces and markets 3.8
computer peripherals and manufactures aligners for semiconductor chip
production, broadcasting lenses and medical equipment. The company's products
are sold internationally.

MATSUSHITA-KOTOBUKI ELECTRONICS LTD. Producer of parts for the PC industry, 3.3
including disk drives and CD-ROMs.

</TABLE>

Source: Bloomberg, August 1997.

4
* * *
<PAGE>
GT GLOBAL
JAPAN
GROWTH FUND

FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

PORTFOLIO OF INVESTMENTS

June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (26.2%)
Ito-Yokado Co., Ltd. ...................................... 100,000 $ 5,806,846 5.3
RETAILERS-OTHER
Southland Corp.{l} -/- {\/} ............................... 1,648,200 5,511,169 5.0
RETAILERS-OTHER
DDI Corp. ................................................. 710 5,245,023 4.8
WIRELESS COMMUNICATIONS
Aoyama Trading Co., Ltd.{z} ............................... 150,200 4,826,545 4.4
RETAILERS-APPAREL
Fast Retailing Co., Ltd. .................................. 90,000 2,907,789 2.7
RETAILERS-APPAREL
Yoshinoya D&C Co., Ltd. ................................... 200 2,444,988 2.2
RESTAURANTS
Blue Grass Co., Ltd. ...................................... 65,000 669,752 0.6
RETAILERS-APPAREL
Xebio Co., Ltd. ........................................... 25,000 615,613 0.6
RETAILERS-APPAREL
Fujitsu Business Systems .................................. 15,000 420,451 0.4
BUSINESS & PUBLIC SERVICES
Bunkyodo Co., Ltd. ........................................ 23,000 176,738 0.2
RETAILERS-OTHER
Nitori Co. ................................................ 400 5,239 --
RETAILERS-OTHER
------------
28,630,153
------------
Technology (11.7%)
Murata Manufacturing Co., Ltd. ............................ 105,000 4,180,929 3.8
INSTRUMENTATION & TEST
Matsushita-Kotobuki Electronics Ltd. ...................... 110,000 3,650,017 3.3
COMPUTERS & PERIPHERALS
NEC Corp. ................................................. 210,000 2,933,985 2.7
SEMICONDUCTORS
Koei Co., Ltd. ............................................ 87,400 1,518,739 1.4
SOFTWARE
Geomatec Co., Ltd. ........................................ 25,000 591,600 0.5
COMPUTERS & PERIPHERALS
------------
12,875,270
------------
Consumer Durables (10.4%)
Sony Corp. ................................................ 40,000 3,489,347 3.2
CONSUMER ELECTRONICS
Sharp Corp. ............................................... 210,000 2,897,311 2.6
CONSUMER ELECTRONICS
Bridgestone Corp. ......................................... 120,000 2,787,286 2.5
AUTO PARTS
Secom ..................................................... 31,000 2,276,546 2.1
CONSUMER ELECTRONICS
------------
11,450,490
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F1
<PAGE>
GT GLOBAL JAPAN 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> <C>
Health Care (9.8%)
Takeda Chemical Industries ................................ 235,000 $ 6,607,579 6.0
PHARMACEUTICALS
Yamanouchi Pharmaceutical ................................. 65,000 1,748,166 1.6
PHARMACEUTICALS
Taisho Pharmaceuticals .................................... 55,000 1,484,020 1.4
PHARMACEUTICALS
Olympus Optical Co., Ltd. ................................. 100,000 899,406 0.8
MEDICAL TECHNOLOGY & SUPPLIES
------------
10,739,171
------------
Finance (8.3%)
Nichiei Co., Ltd. ......................................... 60,000 6,968,216 6.4
OTHER FINANCIAL
Diamond Lease Co., Ltd. ................................... 175,000 2,078,240 1.9
OTHER FINANCIAL
------------
9,046,456
------------
Capital Goods (7.0%)
Canon, Inc. ............................................... 152,000 4,141,111 3.8
OFFICE EQUIPMENT
Higashi Nihon House ....................................... 152,000 1,632,553 1.5
CONSTRUCTION
Komori Corp. .............................................. 40,000 950,052 0.9
MACHINERY & ENGINEERING
Shima Seiki Manufacturing Ltd. ............................ 20,000 878,449 0.8
MACHINE TOOLS
NEC System Integration & Construction ..................... 60 1,247 --
CONSTRUCTION
Japan Foundation Engineering .............................. 90 982 --
CONSTRUCTION
------------
7,604,394
------------
Materials/Basic Industry (5.5%)
Tsudakoma Corp. ........................................... 494,000 2,338,002 2.1
MISC. MATERIALS & COMMODITIES
Tokyo Steel M.F.G. ........................................ 140,000 1,564,792 1.4
METALS - STEEL
Toyo Exterior ............................................. 80,000 1,096,752 1.0
BUILDING MATERIALS & COMPONENTS
Gakken .................................................... 200,000 1,053,091 1.0
PAPER/PACKAGING
------------
6,052,637
------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F2
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

PORTFOLIO OF INVESTMENTS (cont'd)

June 30, 1997 (Unaudited)

TOTAL EQUITY INVESTMENTS (cost $89,891,271) ................. 92,116,524 84.1
------------ -----
<CAPTION>

PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (0.8%)
Japan (0.8%)
Higashi Nihon House Co., Convertible Bond, 0.375% due
4/30/00 ................................................ CHF 1,150,000 855,713 0.8
------------ -----

TOTAL FIXED INCOME INVESTMENT (cost $1,089,201) ............. 855,713 0.8
------------ -----
<CAPTION>

NUMBER OF VALUE % OF NET
OPTIONS CURRENCY CONTRACTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Simex Nikkei Put Options, strike JPY19,000, expire 9/97
(cost $457,277) .......................................... JPY 230 200,838 0.2
------------ -----
INDEX OPTIONS
<CAPTION>

VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $16,685,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $16,979,780,
including accrued interest). (cost $16,642,658) .......... 16,642,658 15.2
------------ -----

TOTAL INVESTMENTS (cost $108,080,407) * .................... 109,815,733 100.3
Other Assets and Liabilities ................................ (323,370) (0.3)
------------ -----

NET ASSETS .................................................. $109,492,363 100.0
------------ -----
------------ -----
</TABLE>

- --------------

{z} All or part of the Fund's holdings in this security is segregated
as collateral for written futures. See Note 1 to the Financial
Statements.
{l} This is a U.S. security of which approximately 62.5% of its
outstanding stock is owned by Ito-Yokado Co., Ltd.
{\/} U.S. currency denominated.
-/- Non-income producing security.
* For Federal income tax purposes, cost is $109,212,181 and
appreciation (depreciation) is as follows:

<TABLE>
<S> <C>
Unrealized appreciation: $ 10,263,280
Unrealized depreciation: (9,659,728)
-------------
Net unrealized appreciation: $ 603,552
-------------
-------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F3
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

PORTFOLIO OF INVESTMENTS (cont'd)

June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------

FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1997 (UNAUDITED)

<TABLE>
<CAPTION>
UNREALIZED
MARKET VALUE CONTRACT DELIVERY APPRECIATION
CONTRACTS TO SELL: (U.S. DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Japanese Yen............................ 19,338,375 122.15000 08/12/97 $(1,327,732)
Japanese Yen............................ 9,229,678 122.25000 08/12/97 (640,722)
Japanese Yen............................ 2,637,051 112.68000 08/12/97 25,309
-------------- --------------
Total Contracts to Sell (Receivable
amount $29,261,959).................. 31,205,104 $(1,943,145)
-------------- --------------
--------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 28.50%.
</TABLE>

- ----------------
See Note 1 to the financial statements.

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

WRITTEN FUTURES CONTRACTS OUTSTANDING
JUNE 30, 1997 (UNAUDITED)

<TABLE>
<CAPTION>
EXPIRATION NO. OF MARKET
DESCRIPTION DATE CONTRACTS CURRENCY VALUE
- ---------------------------------------- ---------- --------- -------- -----------
<S> <C> <C> <C> <C>
Simex Nikkei 225 Index Future (Face
$10,668,114)........................... 09/11/97 120 JPY $10,597,211
</TABLE>

- ----------------
See Note 1 to the financial statements.

The accompanying notes are an integral part of the financial statements.

F4
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $91,437,749) (Note 1)............................... $ 93,173,075
Repurchase agreement, at value and cost....................................................... 16,642,658
U.S. currency.................................................................. $ 612
Foreign currencies (cost $2,095,363)........................................... 2,095,528 2,096,140
-------------
Receivable for Fund shares sold............................................................... 613,937
Receivable for initial and variation margin (Note 1).......................................... 530,514
Dividends receivable.......................................................................... 176,830
Interest receivable........................................................................... 500
Cash held as collateral for securities loaned (Note 1)........................................ 3,626,875
---------------
Total assets................................................................................ 116,860,529
---------------
Liabilities:
Payable for open forward foreign currency contracts, net (Note 1)............................. 1,943,145
Payable for Fund shares repurchased........................................................... 1,469,280
Payable for investment management and administration fees (Note 2)............................ 92,101
Payable for printing and postage expenses..................................................... 75,640
Payable for service and distribution expenses (Note 2)........................................ 53,480
Payable for transfer agent fees (Note 2)...................................................... 36,623
Payable for registration and filing fees...................................................... 25,414
Payable for professional fees................................................................. 20,684
Payable for custodian fees.................................................................... 9,505
Payable for Trustees' fees and expenses (Note 2).............................................. 4,648
Payable for fund accounting fees.............................................................. 1,939
Other accrued expenses........................................................................ 8,832
Collateral for securities loaned (Note 1)..................................................... 3,626,875
---------------
Total liabilities........................................................................... 7,368,166
---------------
Net assets...................................................................................... $ 109,492,363
---------------
---------------
Class A:
Net asset value and redemption price per share ($71,503,093 DIVIDED BY 6,614,136 shares
outstanding)................................................................................... $ 10.81
---------------
---------------
Maximum offering price per share (100/95.25 of $10.81) *........................................ $ 11.35
---------------
---------------
Class B:+
Net asset value and offering price per share ($37,418,193 DIVIDED BY 3,568,845 shares
outstanding)................................................................................... $ 10.48
---------------
---------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($571,077 DIVIDED BY
52,408 shares outstanding)..................................................................... $ 10.90
---------------
---------------
Net assets consist of:
Paid in capital (Note 4)...................................................................... $ 113,452,088
Accumulated net investment loss............................................................... (511,620)
Accumulated net realized loss on investments and foreign currency transactions................ (3,182,071)
Net unrealized depreciation on translation of assets and liabilities in foreign currencies.... (1,930,457)
Net unrealized appreciation of investments.................................................... 1,664,423
---------------
Total -- representing net assets applicable to capital shares outstanding....................... $ 109,492,363
---------------
---------------
<FN>
- --------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>

The accompanying notes are an integral part of the financial statements.

F5
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

STATEMENT OF OPERATIONS

Six months ended June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income................................................................................ $ 319,326
Dividend income (net of foreign withholding tax of $47,235).................................... 265,927
Other income................................................................................... 7,799
--------------
Total investment income...................................................................... 593,052
--------------
Expenses:
Investment management and administration fees (Note 2)......................................... 469,988
Service and distribution expenses: (Note 2)
Class A...................................................................... $ 111,333
Class B...................................................................... 159,892 271,225
--------------
Transfer agent fees (Note 2)................................................................... 186,950
Registration and filing fees................................................................... 55,310
Printing and postage expenses.................................................................. 39,232
Custodian fees (Note 1)........................................................................ 37,844
Audit fees..................................................................................... 22,444
Legal fees..................................................................................... 21,335
Fund accounting fees (Note 2).................................................................. 12,068
Trustees' fees and expenses (Note 2)........................................................... 6,516
Other expenses................................................................................. 4,412
--------------
Total expenses before reductions............................................................. 1,127,324
--------------
Expense reductions (Notes 1 & 5)........................................................... (22,652)
--------------
Total net expenses........................................................................... 1,104,672
--------------
Net investment loss.............................................................................. (511,620)
--------------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized loss on investments............................................... (4,909,339)
Net realized gain on foreign currency transactions............................. 5,242,620
--------------
Net realized gain during the period.......................................................... 333,281
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies......................................................... (4,048,226)
Net change in unrealized appreciation of investments........................... 15,111,604
--------------
Net unrealized appreciation during the period................................................ 11,063,378
--------------
Net realized and unrealized gain on investments and foreign currencies........................... 11,396,659
--------------
Net increase in net assets resulting from operations............................................. $ 10,885,039
--------------
--------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F6
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
-------------- --------------
Increase (Decrease) in net assets
Operations:
Net investment loss....................................................... $ (511,620) $ (841,456)
Net realized gain on investments and foreign currency transactions........ 333,281 3,852,937
Net change in unrealized depreciation on translation of assets and
liabilities in foreign currencies........................................ (4,048,226) (464,975)
Net change in unrealized appreciation (depreciation) of investments....... 15,111,604 (11,261,238)
-------------- --------------
Net increase (decrease) in net assets resulting from operations......... 10,885,039 (8,714,732)
-------------- --------------
Class A:
Distributions to shareholders: (Note 1)
From net realized gain on investments..................................... -- (2,883,812)
Class B:
Distributions to shareholders: (Note 1)
From net realized gain on investments..................................... -- (1,472,016)
Advisor Class:
Distributions to shareholders: (Note 1)
From net realized gain on investments..................................... -- (18,593)
-------------- --------------
Total distributions..................................................... -- (4,374,421)
-------------- --------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.......................... 139,817,688 510,718,392
Decrease from capital shares repurchased.................................. (137,325,051) (554,451,474)
-------------- --------------
Net increase (decrease) from capital share transactions................. 2,492,637 (43,733,082)
-------------- --------------
Total increase (decrease) in net assets..................................... 13,377,676 (56,822,235)
Net assets:
Beginning of period....................................................... 96,114,687 152,936,922
-------------- --------------
End of period *........................................................... $ 109,492,363 $ 96,114,687
-------------- --------------
-------------- --------------
* Includes accumulated net investment loss of.............................. $ (511,620) $ --
-------------- --------------
-------------- --------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F7
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

FINANCIAL HIGHLIGHTS

- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.

<TABLE>
<CAPTION>
CLASS A+
----------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 ---------------------------------------------------------------------
(UNAUDITED) (a) 1996 (a) 1995 (a) 1994 1993 1992 (a)
--------------- --------- --------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.76 $ 11.00 $ 12.15 $ 11.61 $ 8.70 $ 11.16
--------------- --------- --------- ---------- ---------- ---------------
Income from investment operations:
Net investment loss................... (0.04) (0.04) (0.04) (0.04) (0.14) (0.00) *
Net realized and unrealized gain
(loss) on investments................ 1.09 (0.77) 0.26 0.79 3.05 (2.40)
--------------- --------- --------- ---------- ---------- ---------------
Net increase (decrease) from
investment operations.............. 1.05 (0.81) 0.22 0.75 2.91 (2.40)
--------------- --------- --------- ---------- ---------- ---------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.43) (1.37) (0.21) -- (0.06)
--------------- --------- --------- ---------- ---------- ---------------
Net asset value, end of period.......... $ 10.81 $ 9.76 $ 11.00 $ 12.15 $ 11.61 $ 8.70
--------------- --------- --------- ---------- ---------- ---------------
--------------- --------- --------- ---------- ---------- ---------------

Total investment return (d)............. 10.76%(b) (7.43)% 1.94% 6.56% 33.45% (21.5)%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $71,503 $63,585 $111,105 $98,066 $88,487 $93,865
Ratio of net investment loss to average
net assets............................. (0.85)%(c) (0.40)% (0.40)% (0.32)% (0.3)% (0.0)%*
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.08%(c) 1.84% 1.99% 1.91% 2.1% 2.2%*
Without expense reductions............ 2.12%(c) 1.94% 2.14% 2.03% --%** --%**
Portfolio turnover rate++++............. 63%(c) 31% 67% 49% 104% 115%
Average commission rate per share paid
on portfolio transactions++++.......... $0.0408 $0.0971 N/A N/A N/A N/A
</TABLE>

- ----------------

+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* Includes reimbursement by Chancellor LGT Asset Management, Inc. of
operating expenses of $0.01. Without such reimbursement, the ratio of
expenses to average net assets would have been 2.3% and the ratio of
net investment loss to average net assets would have been (0.1)% (See
Note 2).
* * Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) These selected per share data were calculated based upon average
shares outstanding during the period.
(b) Not annualized
(c) Annualized
(d) Total investment return does not include sales charges.
N/A Not applicable

The accompanying notes are an integral part of the financial statements.

F8
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

FINANCIAL HIGHLIGHTS (cont'd)

<TABLE>
<CAPTION>
CLASS B++
-------------------------------------------------------------------------
SIX MONTHS APRIL 1, 1993
ENDED YEAR ENDED DECEMBER 31, TO
JUNE 30, 1997 ----------------------------------- DECEMBER 31,
(UNAUDITED) (a) 1996 (a) 1995 (a) 1994 1993
--------------- --------- --------- --------- ---------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.49 $ 10.78 $ 12.02 $ 11.57 $ 9.85
--------------- --------- --------- --------- ---------------
Income from investment operations:
Net investment loss................... (0.07) (0.11) (0.12) (0.13) (0.18)
Net realized and unrealized gain
(loss) on investments................ 1.06 (0.75) 0.25 0.79 1.90
--------------- --------- --------- --------- ---------------
Net increase (decrease) from
investment operations.............. 0.99 (0.86) 0.13 0.66 1.72
--------------- --------- --------- --------- ---------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.43) (1.37) (0.21) --
--------------- --------- --------- --------- ---------------
Net asset value, end of period.......... $ 10.48 $ 9.49 $ 10.78 $ 12.02 $11.57
--------------- --------- --------- --------- ---------------
--------------- --------- --------- --------- ---------------

Total investment return (d)............. 10.54%(b) (8.05)% 1.20% 5.81% 17.46%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $37,418 $32,116 $41,274 $27,355 $3,699
Ratio of net investment loss to average
net assets............................. (1.50)%(c) (1.05)% (1.05)% (0.97)% (0.9)%(c)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.73%(c) 2.49% 2.64% 2.56% 2.7%(c)
Without expense reductions............ 2.77%(c) 2.59% 2.79% 2.68% --%**
Portfolio turnover rate++++............. 63%(c) 31% 67% 49% 104%
Average commission rate per share paid
on portfolio transactions++++.......... $0.0408 $0.0971 N/A N/A N/A
</TABLE>

- ----------------

The accompanying notes are an integral part of the financial statements.

F9
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

FINANCIAL HIGHLIGHTS (cont'd)

<TABLE>
<CAPTION>
ADVISOR CLASS+++
-----------------------------------------------------
SIX MONTHS JUNE 1, 1995
ENDED YEAR ENDED TO
JUNE 30, 1997 DECEMBER 31, DECEMBER 31,
(UNAUDITED) (a) 1996 (a) 1995 (a)
--------------- --------------- ---------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.81 $ 11.02 $10.50
--------------- --------------- ---------------
Income from investment operations:
Net investment loss................... (0.03) (0.01) (0.00)
Net realized and unrealized gain
(loss) on investments................ 1.12 (0.77) 1.89
--------------- --------------- ---------------
Net increase (decrease) from
investment operations.............. 1.09 (0.78) 1.89
--------------- --------------- ---------------
Distributions to shareholders:
From net realized gain on
investments.......................... -- (0.43) (1.37)
--------------- --------------- ---------------
Net asset value, end of period.......... $ 10.90 $ 9.81 $11.02
--------------- --------------- ---------------
--------------- --------------- ---------------

Total investment return (d)............. 11.11%(b) (7.14)% 18.14%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 571 $ 413 $ 558
Ratio of net investment loss to average
net assets............................. (0.50)%(c) (0.05)% (0.05)%(c)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.73%(c) 1.49% 1.64%(c)
Without expense reductions............ 1.77%(c) 1.59% 1.79%(c)
Portfolio turnover rate++++............. 63%(c) 31% 67%
Average commission rate per share paid
on portfolio transactions++++.......... $0.0408 $0.0971 N/A
</TABLE>

- ----------------

The accompanying notes are an integral part of the financial statements.

F10
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

NOTES TO
FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Japan Growth Fund ("Fund"), is a separate series of GT Global Growth
Series ("Company"). The Company is organized as a Massachusetts business trust
and is registered under the Investment Company Act of 1940, as amended ("1940
Act"), as a diversified, open-end management investment company. The Company has
eight series of shares in operation, each series corresponding to a distinct
portfolio of investments.

The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the Fund are allocated on a pro rata basis to each class based on
the relative net assets of each class to the total net assets of the Fund. Each
class of shares differs in its respective distribution expenses, and may differ
in its transfer agent, registration, and certain other class-specific fees and
expenses.

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles, and
the financial statements may include certain estimates made by management.

(A) PORTFOLIO VALUATION
The Fund calculates the net asset value of and completes orders to purchase,
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.

Equity securities are valued at the last sale price on the exchange on which
such securities are traded or on the principal over-the-counter market in which
such securities are traded, as of the close of business on the day the
securities are being valued or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by Chancellor LGT Asset
Management, Inc. (the "Manager") to be the primary market.

Fixed income investments are valued at the mean of representative quoted bid and
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 foreign exchange
translation and market fluctuation, if any.

Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Company's Board of Trustees.

Portfolio securities which are primarily traded on foreign exchanges are
generally valued to the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Trustees.

(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, other assets and liabilities
are recorded in the books and records of the Fund after translation to U.S.
dollars based on the exchange rates on that day. The cost of each security is
determined using historical exchange rates. Income and withholding taxes are
translated at prevailing exchange rates when earned or incurred.

The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains and losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end, resulting from changes in exchange rates.

(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, 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 under each
agreement at its maturity.

(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
Forward Contract is closed, the Fund records a realized gain or loss equal to
the difference between the value at the time it was opened and the value at the
time it was closed. The Fund could be exposed to risk if a counterparty is
unable to meet the terms of a contract or if the value of the currency changes
unfavorably. The Fund may enter into Forward Contracts in connection with
planned purchases or sales of securities, or to hedge against adverse
fluctuations in exchange rates between currencies.

F11
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

(E) OPTION ACCOUNTING PRINCIPLES
When the Fund writes a call or put option, an amount equal to the premium
received is included in the Fund's "Statement of Assets and Liabilities" as an
asset and an equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers, unless a quotation from only one
broker is available, in which case only that broker's price will be used. If an
option expires on its stipulated expiration date or if the Fund enters into a
closing purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. The Fund can write options only on
a covered basis, which, for a call, requires that the Fund hold the underlying
security, and, for a put, requires the Fund to set aside cash, U.S. government
securities or other liquid securities in an amount not less than the exercise
price or otherwise provide adequate cover at all times while the put option is
outstanding. The Fund may use options to manage its exposure to the stock and
bond markets and to fluctuations in currency values or interest rates.

The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.

The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.

(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock and bond
markets and to fluctuations in currency values or interest rates. As of June 30,
1997, the Fund had segregated securities valued at $9,857,937 and cash of
$1,836,336 to cover margin requirements on open futures contracts.

(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other than normal settlement terms. This may increase the risk if
the other party to the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.

(H) PORTFOLIO SECURITIES LOANED
At June 30, 1997, stocks with an aggregate value of $3,361,858 were on loan to
brokers. The loans were secured by cash collateral of $3,626,875, received by
the Fund. For international securities, cash collateral is received by the Fund
against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For domestic securities, cash
collateral is received by the Fund against loaned securities in an amount at
least equal to 102% of the market value of the loaned securities at the
inception of each loan. This collateral must be maintained at not less than 100%
of the market value of the loaned securities during the period of each loan. For
the period ended June 30, 1997, the Fund received securities lending fees of
$15,473 which were used to reduce custodian and administrative expenses.

(I) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, and unrealized appreciation of securities held, or for excise tax on
income and capital gains.

(J) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ

F12
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

from generally accepted accounting principles. These differences are primarily
due to differing treatments of income and gains on various investment securities
held by the Fund and timing differences.

(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. These risks of investing in foreign markets may
include foreign currency exchange rate fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.

(L) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed restricted securities. These
securities may by resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.

(M) INDEXED SECURITIES
The Fund may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.

(N) LINE OF CREDIT
The Fund, along with certain other funds advised by the Manager, has a line of
credit with BankBoston and State Street Bank. The arrangements with the banks
allow the Fund to borrow an aggregate maximum amount of $200,000,000. The Fund
is limited to borrowing up to 33 1/3% of the value of the Fund's total assets.
For the period ended June 30, 1997, the Fund had no outstanding loan balance.

2. RELATED PARTIES
Chancellor LGT Asset Management, Inc. is the Fund's investment manager and
administrator. The Fund pays investment management and administration fees to
the Manager at the following annualized rates: 0.975% on the first $500 million
of average daily net assets of the Fund; 0.95% on the next $500 million; 0.925%
of the next $500 million and 0.90% on amounts thereafter. These fees are
computed daily and paid monthly, and are subject to reduction in any period to
the extent that the Fund's expenses (exclusive of brokerage commissions, taxes,
interest, distribution-related expenses and extraordinary expenses) exceed the
most stringent limits prescribed by the laws or regulations of any state in
which the Fund's shares are offered for sale, based on the average net asset
value of the Fund.

GT Global, Inc. ("GT Global"), an affiliate of the Manager, serves as the Fund's
distributor. The Fund offers Class A, Class B, and Advisor Class shares for
purchase.

Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. GT Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the period ended June 30, 1997, GT Global retained $13,142
of such sales charges. Purchases of Class A shares exceeding $500,000 may be
subject to a contingent deferred sales charge ("CDSC") upon redemption, in
accordance with the Fund's current prospectus. GT Global collected such CDSCs in
the amount of $979 for the period ended June 30, 1997. GT Global also makes
ongoing shareholder servicing and trail commission payments to dealers whose
clients hold Class A shares.

Class B shares are not subject to initial sales charges. When Class B shares are
sold, GT Global from its own resources pays commissions to dealers through which
the sales are made. Certain redemptions of Class B shares made within six years
of purchase are subject to CDSCs, in accordance with the Fund's current
prospectus. During the period ended June 30, 1997, GT Global collected such
CDSCs in the amount of $130,057. In addition, GT Global makes ongoing
shareholder servicing and trail commission payments to dealers whose clients
hold Class B shares.

Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Trustees has
adopted separate distribution plans with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for 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 its expenditures incurred in providing services as distributor. All
expenses for which GT Global is reimbursed under the Class A Plan will have been
incurred within one year of such reimbursement.

Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may pay GT Global a distribution fee at the annualized
rate of up to 0.75% of the average daily net assets of the Fund's Class B shares
for 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 have voluntarily undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest, and extraordinary
items) to the maximum annual level of 2.25%, 2.90%, and 1.90% of the average
daily net assets of the Fund's Class A, Class B, and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by the
Manager of investment management and administration fees, waivers by GT Global
of payments under the Class A Plan and/or Class B Plan and/or reimbursements by
the Manager or GT Global of portions of the Fund's other operating expenses.

GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and GT Global, is the transfer agent of the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT Services receives
an annual maintenance fee of $17.50 per account, a new account fee of $4.00 per
account, a per transaction fee of $1.75 for all transactions other than
exchanges and

F13
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GT GLOBAL JAPAN GROWTH FUND

a per exchange fee of $2.25. GT Services is also 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 Fund. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of the Fund's average daily net assets. The annual fee rate is derived by
applying 0.03% to the first $5 billion of assets of all registered mutual funds
advised by the Manager and 0.02% to the assets in excess of $5 billion and
allocating the result according to the Fund's average daily net assets.

The Company pays each of its Trustees who is not an employee, officer or
director of the Manager, GT Global or GT Services $5,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Trustee.

3. PURCHASES AND SALES OF SECURITIES
For the period ended June 30, 1997, purchases and sales of investment securities
by the Fund, other than U.S. government obligations and short-term investments,
aggregated $24,660,975 and $25,716,292, respectively. There were no purchases or
sales of U.S. government obligations by the Fund during the period.

4. CAPITAL SHARES
At June 30, 1997, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the Fund
were as follows:

CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
----------------------------------- -----------------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- --------------- ------------------ --------------- ------------------
<S> <C> <C> <C> <C>
Shares sold............................. 10,650,059 $ 106,416,630 39,042,903 $ 423,073,924
Shares issued in connection with
reinvestment of distributions......... -- -- 225,741 2,221,785
--------------- ------------------ --------------- ------------------
10,650,059 106,416,630 39,268,644 425,295,709
Shares repurchased...................... (10,553,833) (105,679,454) (42,853,058) (464,603,203)
--------------- ------------------ --------------- ------------------
Net increase (decrease)................. 96,226 $ 737,176 (3,584,414) $ (39,307,494)
--------------- ------------------ --------------- ------------------
--------------- ------------------ --------------- ------------------

<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............................. 2,912,447 $ 28,543,449 7,303,169 $ 77,038,650
Shares issued in connection with
reinvestment of distributions......... -- -- 111,715 1,070,181
--------------- ------------------ --------------- ------------------
2,912,447 28,543,449 7,414,884 78,108,831
Shares repurchased...................... (2,726,570) (26,710,655) (7,859,944) (82,438,811)
--------------- ------------------ --------------- ------------------
Net increase (decrease)................. 185,877 $ 1,832,794 (445,060) $ (4,329,980)
--------------- ------------------ --------------- ------------------
--------------- ------------------ --------------- ------------------
<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............................. 468,873 $ 4,857,609 666,196 $ 7,296,458
Shares issued in connection with
reinvestment of distributions......... -- -- 1,759 17,394
--------------- ------------------ --------------- ------------------
468,873 4,857,609 667,955 7,313,852
Shares repurchased...................... (458,569) (4,934,942) (676,463) (7,409,460)
--------------- ------------------ --------------- ------------------
Net increase (decrease)................. 10,304 $ (77,333) (8,508) $ (95,608)
--------------- ------------------ --------------- ------------------
--------------- ------------------ --------------- ------------------
</TABLE>

5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the period ended June 30, 1997, the Fund's expenses
were reduced by $7,179 under these arrangements.

F14
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GT GLOBAL JAPAN GROWTH FUND

NOTES

- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL JAPAN GROWTH FUND

GT GLOBAL FUNDS

GT GLOBAL OFFERS A BROAD RANGE OF FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
FUNDS, PLEASE CONTACT YOUR INVESTMENT ADVISOR OR CALL GT GLOBAL DIRECTLY AT
1-800-824-1580. THE PROSPECTUS CONTAINS MORE COMPLETE INFORMATION, INCLUDING
CHARGES, EXPENSES AND THE RISKS OF GLOBAL AND EMERGING MARKET INVESTING.
INVESTORS SHOULD READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.

GROWTH FUNDS

/ / GLOBALLY DIVERSIFIED FUNDS

GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.

GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside the U.S.

GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies

/ / GLOBAL FUNDS

GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Focuses on worldwide opportunities from the demand for consumer products and
services

GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide

GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products

GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain infrastructure

GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources

GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment

/ / REGIONALLY DIVERSIFIED FUNDS

GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan

GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe

GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America

/ / SINGLE COUNTRY FUNDS

GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies

GT GLOBAL AMERICA MID CAP GROWTH FUND
Concentrates on medium-sized companies in the U.S.

GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued

GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market

GROWTH AND INCOME FUND

GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government securities
from around the world

INCOME FUNDS

GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities

GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets

GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets

GT GLOBAL FLOATING RATE FUND
Invests primarily in senior secured floating rate loans that have the potential
to achieve a high level of current income

MONEY MARKET FUND

GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital

[LOGO]

THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
[LOGO]

GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624

DATED MATERIAL
PLEASE EXPEDITE

GT GLOBAL JAPAN GROWTH FUND
JAPSR708029M