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
INTERNATIONAL
GROWTH FUND

SEMIANNUAL REPORT
JUNE 30, 1997

[LOGO]
<PAGE>
TABLE
OF CONTENTS

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

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

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

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

MESSAGE FROM THE CHAIRMAN

Dear Investor,

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

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

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

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

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

Sincerely,

/s/ William J. Guilfoyle

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

<PAGE>

GT GLOBAL INTERNATIONAL GROWTH FUND
PERFORMANCE SUMMARY

[PHOTO]

INVESTMENT OBJECTIVE

The GT Global International Growth Fund seeks long-term growth of capital by
investing primarily in equity securities of companies located outside the U.S.

[CHART]

GT GLOBAL INTERNATIONAL GROWTH FUND CLASS A MSCI-EAFE INDEX

7/19/1985

"$9,525" "$10,000"
"9,535" "9,904"
"9,449" "10,225"
"9,849" "10,827"
"10,506" "11,567"
"11,144" "12,045"
"11,878" "12,619"
"12,163" "12,939"
"12,954" "14,376"
"14,168" "16,402"
"15,310" "17,480"
"14,893" "16,707"
"16,006" "17,850"
"17,407" "18,955"
"18,400" "20,828"
"17,923" "20,619"
"16,423" "19,247"
"17,645" "20,360"
"18,251" "21,445"
"18,728" "23,727"
"19,473" "24,443"
"20,356" "26,452"
"21,427" "29,255"
"21,900" "29,261"
"22,148" "28,334"
"23,579" "28,289"
"24,433" "30,416"
"25,185" "29,943"
"18,256" "25,753"
"17,774" "26,013"
"19,379" "26,791"
"19,786" "27,276"
"20,431" "29,101"
"21,313" "30,896"
"21,833" "31,350"
"21,403" "30,352"
"21,268" "29,559"
"21,460" "30,492"
"20,747" "28,515"
"21,268" "29,767"
"22,330" "32,321"
"22,930" "34,253"
"23,138" "34,450"
"24,311" "35,063"
"24,686" "35,250"
"25,176" "34,565"
"26,167" "34,893"
"25,882" "33,000"
"25,745" "32,452"
"27,545" "36,534"
"28,626" "34,898"
"29,788" "36,494"
"28,455" "35,035"
"29,685" "36,803"
"32,060" "38,170"
"31,540" "36,758"
"30,674" "34,200"
"31,090" "30,644"
"30,258" "30,409"
"31,818" "33,888"
"32,476" "33,598"
"33,585" "34,080"
"30,362" "30,779"
"27,208" "26,499"
"28,802" "30,636"
"27,970" "28,838"
"27,474" "29,316"
"28,071" "30,273"

2/28/1991
"29,863" "33,527"
"30,390" "31,522"
"30,495" "31,841"
"31,584" "32,183"
"30,390" "29,826"
"31,514" "31,300"
"30,741" "30,672"
"31,408" "32,410"
"31,549" "32,877"
"30,073" "31,351"
"31,104" "32,980"
"31,176" "32,285"
"31,709" "31,138"
"30,677" "29,091"
"31,532" "29,237"
"33,560" "31,203"
"32,386" "29,733"
"30,998" "28,982"
"30,713" "30,810"
"29,218" "30,211"
"29,147" "28,635"
"29,325" "28,914"
"29,290" "29,072"
"29,076" "29,077"
"29,504" "29,964"
"31,002" "32,585"
"32,501" "35,686"
"32,965" "36,448"
"32,501" "35,888"
"33,714" "37,153"
"35,676" "39,167"
"35,533" "38,294"
"36,996" "39,482"
"35,355" "36,039"
"39,315" "38,650"
"41,741" "41,926"
"40,242" "41,818"
"37,317" "40,026"
"37,852" "41,733"
"37,602" "41,502"
"37,317" "42,098"
"38,494" "42,512"
"40,421" "43,528"
"38,815" "42,167"
"39,029" "43,581"
"37,353" "41,496"
"36,256" "41,765"
"33,488" "40,171"
"32,579" "40,066"
"32,658" "42,576"
"33,646" "44,189"
"33,567" "43,673"
"33,962" "42,919"
"36,453" "45,603"
"36,611" "43,874"
"37,086" "44,742"
"36,453" "43,551"
"36,335" "44,774"
"37,661" "46,590"
"38,324" "46,792"
"38,366" "46,962"
"38,988" "47,971"
"39,818" "49,378"
"39,361" "48,481"
"39,693" "48,766"
"38,117" "47,352"
"38,864" "47,468"
"39,403" "48,741"
"39,278" "48,255"
"40,855" "50,187"
"41,154" "49,553"
"41,062" "47,830"
"41,154" "48,624"
"41,385" "48,812"
"41,939" "49,083"
"43,646" "52,289"

6/30/1997
"45,260" "55,185"

The chart above shows the performance of the GT Global International Growth
Fund, Class A shares, since the Fund's inception versus the MSCI-EAFE Index.
This represents a cumulative return of 352.60% and an average annual total
return of 13.47% for the Fund. The chart assumes a hypothetical $10,000
initial investment in the Fund's Class A shares and reflects all Fund
expenses and the maximum 4.75% sales charge. A $10,000 investment in the
Fund's Class B shares at inception on April 1, 1993, would have been valued
at $13,925 on June 30, 1997. This figure reflects all Fund expenses and the
applicable contingent deferred sales charge (5% in the first year, decreasing
to 0% after six years) assuming a complete redemption at the end of the
period. A $10,000 investment in Advisor Class shares at inception on June 1,
1995, would have been worth $13,607 on June 30, 1997.

AVERAGE ANNUAL TOTAL RETURNS%1
JUNE 30, 1997

Share Class Without Sales Charge2 With Sales Charge
1-Year 5-Year 10-Year LOF 1-Year 5-Year 10-Year LOF
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A3 14.03 6.92 7.41 13.93 8.61 5.89 6.89 13.47
Class B3 13.22 N/A N/A 8.47 8.22 N/A N/A 8.11
Advisor Class4 14.13 N/A N/A 15.94 N/A N/A N/A N/A

</TABLE>

HISTORICAL PERFORMANCE2
ANNUAL TOTAL RETURNS % (LAST 10 YEARS)

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A 6.183 19.39 38.56 -14.31 13.22 -5.83 34.23 -7.78 3.88 9.28
Class B N/A N/A N/A N/A N/A N/A 25.633 -8.36 3.15 8.67

</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 INTERNATIONAL PORTFOLIO MANAGER
MICHAEL LINDSELL

Q HOW DID THE FUND PERFORM?

A The Fund's total return for the six months ended June 30, 1997, was 9.98%
for Class A shares (4.75% including the maximum 4.75% sales charge); total
return for Class B shares was 9.45% (4.45% including of the maximum 5%
contingent deferred sales charge). During the same period, the Morgan Stanley
Capital International Europe, Australia, Far East (MSCI-EAFE) Index5 returned
11.36%.

Relative to the index, most of the Fund's under-performance was a result of
weak security selection in the UK. While we continue to find UK companies
attractive, over the six-month period the Fund suffered from its exposure to
media companies whose poor performance as a group was underpinned by Granada
Group and Reuters. Additional disappointments included Premier Farnell, which
performed poorly on corporate results.

On the other hand, the Fund's weighting to continental European
countries-Germany and Italy, in particular-contributed positively to
performance. As in the rest of the world, most continental bourses continued
to advance, thanks to a rally in bond markets, low inflation and signs of an
upturn in growth. Additionally, while we continued to invest cautiously in
Japan and were significantly underweighted relative to the index over the
period, the Fund benefited from security selection there.

Q WHAT COMPANIES DID WELL FOR THE FUND?

A The most notable performer over the period was Brazil's Petrobras, which
enjoyed strong gains from the rerating of the Brazilian market and a belief
that the company's oil reserves would be significantly upgraded. Other
companies that benefited the Fund include Volkswagen in Germany (the company
was sold off during the period), Ahold in the Netherlands, Adecco and
Novartis in Switzerland and Portugal's EDP.

Q HOW DID EUROPEAN MARKETS FARE OVER THE SIX MONTHS?

A Most major European markets rose to near all-time highs as interest rates
trended down (with the exception of the UK) and investors focused on the
potential for accelerated growth over the next year. The European Commission
forecast that for the EU (European Union) as a whole, GDP growth should
increase from 1.6% in 1996 to 2.4% in 1997 and to 2.8% in 1998. The profits
of many larger European companies were also buoyed by the strength of the
U.S. dollar and UK sterling. Since the beginning of 1996, the dollar has
rallied by over 10% against major continental European currencies, and at
around DM2.93, sterling is at its highest rate since mid-1992, providing an
additional fillip to continental exporters' earnings.

In dollar terms, Switzerland and Spain were among the top-performing
developed stock markets. The Swiss market enjoyed a robust run on the back of
a fall in interest rates, which dropped to their lowest level since 1979.
Stock market strength is also due to the benefits many larger corporations
have enjoyed as a result of mergers, de-mergers, wholesale restructuring and
other measures taken over the last two years to boost profitability.

The rise in Spanish share prices reflected the sizable fall in bond yields.
This was the result of the growing perception among investors that European
Monetary Union (EMU) will proceed on time in 1999 and that peripheral
countries such as Spain will participate.

Q WHAT WAS THE PERFORMANCE OF LATIN AMERICAN MARKETS LIKE?

A Latin American markets prospered under the inflow of foreign portfolio
investments. Depending on the country in question, foreign investors were
attracted by the prospects of further economic reform and/or the reality of a
pickup in domestic demand. All the regional markets performed well, with
Brazil leading the way. The Brazilian market flourished under a host of
successes including a landmark US$3 billion issue of a 30-year bond.
Inflation fell to 7%-its lowest level in 30 years-and constitutional changes
will permit President Cardoso to run for a second term, which augurs well for
public finance reform.

Continued p. 4

(5) MSCI-EAFE Index is a market value-weighted average of the performance
of 1,086 securities listed on 20 major world 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.

<PAGE>

INTERVIEW WITH THE PORTFOLIO MANAGER -- CONTINUED

Q WHAT FACTORS CONTRIBUTED TO THE GENERAL WEAKNESS ACROSS ASIAN MARKETS?

A Weakness was driven in part by what seemed almost a sudden investor
awareness that the Asian growth miracle, whereby growth rates of 9% or more
had become expected, was indeed approaching a normal, more sustainable level
of 4% to 5%. While these highly charged economies are hardly falling apart,
their vulnerability to a drop in demand from the industrialized world has
become evident. Over the longer term, markets have also become mindful of
increased competition from China. Additionally, concerns over property
speculation, currency devaluation and the feverish pace of credit expansion
came to the fore, with Thailand suffering the bulk of the negative sentiment.

Particular issues were also evident elsewhere. A mixed environment kept a lid
on corporate earnings in Singapore. The electoral victory of ruling party
Golkar contributed to a modest advance in share prices in Indonesia. Korean
stocks rallied further as investors perceived that the price of DRAM computer
chips (a major commodity product for several of the largest companies and a
key export for the country) may stabilize later in 1997.

Q WHAT FACTORS UNDERPIN YOUR RELATIVE OPTIMISM ON UK EQUITIES?

A We have been building up the Fund's exposure to the UK, and increasing
holdings in interest rate-sensitive stocks, in particular. Interest rates in
the UK remain relatively high compared to the rest of the region. The newly
independent Bank of England has lifted the base rate in two stages, from
6.25% to 6.75%, in reaction to the strength of the UK economy, which has
perpetuated the rise in the currency. While this is favorable for many
importers, it has crimped corporate earnings of the FTSE 100 stocks, 40% of
whose earnings come from overseas.

Inflation, however, is likely to remain low, in our opinion, despite strong
growth. We feel investors are likely to recognize the attractive real rates
and purchase bonds. An increase in purchases could subsequently lead to a
lower discount rate applied to equity valuations, and we would expect major
banks and insurers, in particular, to benefit from a fall in yields. We also
like selected asset managers and financial advisors, which we feel stand to
benefit from growth in the financial services industry. Additionally, key
players in the UK's media industry, currently undergoing a major realignment
of interests, and certain stocks with strong copyrights also appeal.

Q IN YOUR OPINION, IS IT BUSINESS AS USUAL IN HONG KONG?

A We believe China's economy, rather than China's sovereignty, remains the
key factor for the Hong Kong stock market. After two difficult years in 1994
and 1995, the Chinese economy is accelerating again. Industrial production
was up 12% in the year to the end of April. During the first four months of
1997, China achieved a trade surplus of US$10 billion -contributing to a rise
in foreign exchange reserves from US$105 billion to US$115 billion.

All this is good news for Hong Kong-listed companies doing business in China.
We estimate earnings per share growth for the entire stock market will be
about 13% over the next year. Presently priced on 15x 1997 earnings, the
market has already been rerated, but by no more than it was in 1991-92, the
last time the Chinese economy underwent a major cyclical upswing. The
political risk is arguably less today than it was five years ago.

There are several other positive developments. Inflation has dropped to about
2%; Chinese authorities are under pressure to lower interest rates further;
and residential and commercial property prices in Hong Kong have rebounded.
Additionally, the XV Congress of the Chinese Communist Party, which will take
place in September, could produce other constructive policy moves.

Q WHY DOES THE FUND MAINTAIN A NOTABLE UNDERWEIGHTING TO JAPAN RELATIVE TO
THE INDEX?

A Despite the Nikkei's rise this year and a strengthening of the yen, our
outlook for significant sections of the Japanese stock market remains
pessimistic. While stock market investors seem to have been encouraged by
tentative signs of an economic recovery, we feel the market's advance may
have had more to do with distortions associated with the introduction of the
consumption tax in April. Meanwhile, as banks

Continued p. 5

<PAGE>

INTERVIEW WITH THE PORTFOLIO MANAGER -- CONTINUED

continued to struggle under the massive burden of bad loans, add to this list
of challenges the Big Bang, or wholesale liberation of the financial markets.
This will increase competition and crimp margins, which are already at low
levels.

Japanese retail investors have the capacity to invest a tremendous amount of
money overseas. Almost two-thirds of total personal financial assets are held
in bank deposits that yield virtually nothing. So, under the deregulation of
foreign exchange laws, the ongoing liberalization of the pension fund
industry and the evolution of private banking in Japan, we would expect
capital outflows from Japan to accelerate significantly.

While conditions remain difficult for much of corporate Japan, we are finding
selective opportunities. We feel companies that can exploit major trends such
as the graying of Japan, are beneficiaries of the long-term weakness of the
yen, are entering new markets, and are able to maintain pricing power should
continue to do well in this type of environment.

Q WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF THE YEAR?

A Going forward, our general concern is that markets are quite highly valued,
and we are finding it increasingly difficult to identify value in stocks.
Some of the better value opportunities in the world, in our opinion, include
the UK and selected companies in Australasia. We have reduced our weighting
to continental European companies as they continue to meet our price targets,
and currently expect our exposure to Japan to remain relatively low.

ABOUT THE PORTFOLIO MANAGERS

ROGER YATES - Chief Investment Officer, International Equities, for
Chancellor LGT Asset Management. Previously, Mr. Yates was an Investment
Manager at Morgan Grenfell and Director of their UK pension fund business.
Prior to that, he worked for LGT Asset Management (London) for seven years,
and was appointed a director in 1986 and Chief Investment Officer for unit
trusts in 1987. In 1994, he rejoined LGT as Chief Investment Officer, United
Kingdom and Europe, a position he held until his recent promotion. He
received a bachelor's degree from Oxford University and completed
postgraduate research at Reading University.

MICHAEL LINDSELL - Head of investment strategy for Global Equities; Chief
Investment Officer, Japan, 1992-96. Previously, Mr. Lindsell was a Director
at Warburg Asset Management from 1989 to 1992; Senior Fund Manager at
Scimitar Asset Management from 1985 to 1988; and Fund Manager, Lazard
Brothers & Co. Ltd. from 1982 to 1985. He received his B.Sc. from Bristol
University.

GEOGRAPHIC ALLOCATION OF NET ASSETS %
1997 1996
June 30 June 30
<S> <C> <C>

Australia 4.7 2.4
Belgium 0.7 -
Brazil 2.2 -
Denmark 2.4 -
Finland - 0.9
France 6.1 7.6
Germany 2.7 6.1
Hong Kong 4.6 2.4
Indonesia - 0.9
Italy 3.8 2.3
Japan 12.7 24.5
Korea 0.5 1.5
Mexico 1.5 1.2
Netherlands 8.1 6.6
New Zealand 2.7 0.9
Norway 0.7 0.8
Portugal 2.7 1.0
Singapore 0.9 2.7
South Africa - 1.9
Spain 4.2 3.6
Sweden 5.8 2.1
Switzerland 4.8 8.0
Thailand 0.9 1.1
United Kingdom 21.8 14.0
U.S., Short Term
& Other 5.5 7.5

</TABLE>

<PAGE>

SECTOR ALLOCATION OF NET ASSETS %
JUNE 30, 1997
<S> <C>
Services 30.7
Finance 20.7
Health Care 9.2
Energy 7.3
Capital Goods 5.9
Technology 5.7
Multi-Industry/Misc. 5.6
Materials/Basic Industry 5.2
Consumer Non-Durables 2.1
Consumer Durables 2.1
Short Term & Other 5.5

</TABLE>

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

GT GLOBAL INTERNATIONAL GROWTH FUND % of
KEY PORTFOLIO HOLDINGS Country Net Assets
<S> <C> <C>
TELECOM CORPORATION OF NEW ZEALAND LTD. New Zealand 2.3
Provides telecommunications services
throughout New Zealand. Services include
local, national and international
telephone activities that offer cellular,
directories, leased circuits, mobile
radio, paging and data communications.

PETROLEO BRASILEIRO S. A. (PETROBRAS) Brazil 2.2
Produces oil and natural gas liquids and
provides maritime freight services. The
company's main products are oil products
and fuel alcohol.

BARCLAYS PLC Offers commercial and UK 2.0
investment banking, insurance, financial and
related services. The company's subsidiary,
Barclays Bank PLC, operates over
2,500 branches in the United Kingdom and
over 1,000 branches in 76 countries.

TAKEDA CHEMICAL INDUSTRIES Produces Japan 2.0
and sells health care-related products and
is also active in launching new drugs.
The company specializes in
pharmaceuticals, health-care products,
foods, vitamins, chemicals, agrochemical,
and environmental materials.

EMI GROUP PLC A music recording and UK 2.0
retailing company, EMI owns the Capitol,
EMI and Virgin recording labels. EMI Group
also sells recorded music through its
HMV stores and books at its Dillons chain.

ALCATEL ALSTHOM COMPAGNIE GENERALE D' France 1.9
ELECTRICITE Develops, produces and
distributes telecommunication equipment
and systems for public network, business
and residential applications.

AUSTRALIA & NEW ZEALAND BANKING GROUP LTD. Australia 1.8
A general trading and savings bank
that operates approximately 1,600 offices
in 48 countries.

DDI CORP. Provides long distance telephone Japan 1.8
and mobile communication services.

ADECCO An international personnel and Switzerland 1.8
temporary employment company.

SHELL TRANSPORT & TRADING CO., PLC UK 1.8
Owns 40% of the Royal Dutch/Shell Group of
companies. These companies are involved
in all phases of the petroleum industry
from exploration to final processing and
delivery. Shell primarily derives
income from dividends generated by
the group's holding companies.

</TABLE>

Source: Bloomberg, August 1997.

<PAGE>
GT GLOBAL
INTERNATIONAL
GROWTH FUND

FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

PORTFOLIO OF INVESTMENTS

June 30, 1997 (Unaudited)

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

<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (30.7%)
Telecom Corporation of New Zealand Ltd. ................... NZ 1,107,500 $ 5,641,682 2.3
TELEPHONE NETWORKS
EMI Group PLC ............................................. UK 265,000 4,754,996 2.0
LEISURE & TOURISM
DDI Corp. ................................................. JPN 600 4,432,414 1.8
WIRELESS COMMUNICATIONS
Adecco - Bearer{\/} ....................................... SWTZ 11,230 4,302,976 1.8
CONSUMER SERVICES
Telecom Italia Mobile S.p.A. .............................. ITLY 1,272,180 4,085,654 1.7
WIRELESS COMMUNICATIONS
Woolworths Ltd. ........................................... AUSL 1,227,000 4,027,656 1.7
RETAILERS-OTHER
Koninklijke Ahold N.V. .................................... NETH 47,046 3,966,811 1.6
RETAILERS-FOOD
Reuters Holdings PLC ...................................... UK 365,000 3,847,544 1.6
BROADCASTING & PUBLISHING
Portugal Telecom S.A. - Registered ........................ PORT 88,550 3,572,188 1.5
TELEPHONE NETWORKS
Ito-Yokado Co., Ltd. ...................................... JPN 60,000 3,484,108 1.4
RETAILERS-OTHER
Elsevier N.V. ............................................. NETH 196,683 3,284,726 1.3
BROADCASTING & PUBLISHING
EMAP PLC .................................................. UK 247,030 3,058,565 1.3
BROADCASTING & PUBLISHING
Telecel - Comunicacaoes Pessoais S.A.-/- .................. PORT 35,149 2,915,769 1.2
WIRELESS COMMUNICATIONS
Stet Societa' Finanziaria Telefonica S.p.A. ............... ITLY 499,400 2,904,635 1.2
TELEPHONE NETWORKS
Sol Melia S.A. ............................................ SPN 69,359 2,846,825 1.2
LEISURE & TOURISM
Rentokil Group PLC ........................................ UK 780,000 2,740,716 1.1
CONSUMER SERVICES
Telefonica de Espana ...................................... SPN 93,850 2,712,354 1.1
TELEPHONE NETWORKS
Granada Group PLC ......................................... UK 200,000 2,631,141 1.1
BROADCASTING & PUBLISHING
Vendex International N.V. ................................. NETH 36,064 1,973,971 0.8
RETAILERS-OTHER
Castorama Dubois Investisse ............................... FR 13,280 1,867,719 0.8
RETAILERS-OTHER
G.I.B. Holdings Ltd. ...................................... BEL 34,770 1,661,603 0.7
RETAILERS-OTHER
Aoyama Trading Co., Ltd. .................................. JPN 50,300 1,616,346 0.7
RETAILERS-APPAREL
Ezaki Glico ............................................... JPN 139,000 1,250,175 0.5
RETAILERS-FOOD
Advanced Information Service: ............................. THAI -- -- 0.3
WIRELESS COMMUNICATIONS
Local ................................................... -- 45,000 392,968 --
Foreign ................................................. -- 44,800 391,221 --
</TABLE>

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

F1
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

PORTFOLIO OF INVESTMENTS (cont'd)

June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Fast Retailing Co., Ltd. .................................. JPN 40 $ 1,292 --
RETAILERS-APPAREL
------------
74,366,055
------------
Finance (20.7%)
Barclays PLC .............................................. UK 250,000 4,962,531 2.0
BANKS-MONEY CENTER
Australia & New Zealand Banking Group Ltd. ................ AUSL 598,600 4,471,883 1.8
BANKS-REGIONAL
ING Groep N.V. ............................................ NETH 91,090 4,197,375 1.7
OTHER FINANCIAL
Royal & Sun Alliance Insurance Group PLC .................. UK 551,470 4,068,297 1.7
INSURANCE - MULTI-LINE
Nichiei Co., Ltd. ......................................... JPN 33,000 3,832,518 1.6
OTHER FINANCIAL
M & G Group PLC ........................................... UK 172,000 3,523,064 1.4
INVESTMENT MANAGEMENT
Norbanken AB .............................................. SWDN 93,290 3,147,045 1.3
BANKS-REGIONAL
Sparbanken Sverige AB "A" ................................. SWDN 138,150 3,071,190 1.3
BANKS-REGIONAL
HSBC Holdings PLC ......................................... HK 100,000 3,007,693 1.2
BANKS-MONEY CENTER
Banco Popular Espanol S.A. ................................ SPN 12,110 2,965,882 1.2
BANKS-MONEY CENTER
Unidanmark AS "A" ......................................... DEN 47,200 2,650,807 1.1
BANKS-REGIONAL
Lloyds TSB Group PLC ...................................... UK 256,000 2,626,078 1.1
BANKS-REGIONAL
United Overseas Bank Ltd. - Foreign ....................... SING 222,300 2,286,461 0.9
BANKS-MONEY CENTER
Cheung Kong (Holdings) Ltd. ............................... HK 212,000 2,093,510 0.9
REAL ESTATE
Mapfre Vida Seguros ....................................... SPN 24,569 1,591,818 0.7
INSURANCE-LIFE
PSIL Bangkok Bank Co., Ltd. (Entitlement
Certificates){\/} ........................................ THAI 320,000 1,575,040 0.6
OTHER FINANCIAL
Korea Exchange Bank ....................................... KOR 71,700 473,414 0.2
BANKS-MONEY CENTER
------------
50,544,606
------------
Health Care (9.2%)
Takeda Chemical Industries ................................ JPN 175,000 4,920,538 2.0
PHARMACEUTICALS
Schering AG ............................................... GER 39,680 4,238,675 1.7
PHARMACEUTICALS
Roche Holding AG .......................................... SWTZ 454 4,101,998 1.7
PHARMACEUTICALS
Novartis AG ............................................... SWTZ 2,031 3,243,485 1.3
PHARMACEUTICALS
</TABLE>

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

F2
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

PORTFOLIO OF INVESTMENTS (cont'd)

June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Health Care (Continued)
Novo Nordisk A/S "B" ...................................... DEN 28,967 $ 3,157,689 1.3
PHARMACEUTICALS
Astra AB "A" .............................................. SWDN 134,613 2,505,399 1.0
MEDICAL TECHNOLOGY & SUPPLIES
M.L. Laboratories PLC-/- .................................. UK 203,768 542,929 0.2
PHARMACEUTICALS
------------
22,710,713
------------
Energy (7.3%)
Petroleo Brasileiro S.A. (Petrobras) - ADR{\/} ............ BRZL 197,900 5,442,250 2.2
GAS PRODUCTION & DISTRIBUTION
Shell Transport & Trading Co., PLC ........................ UK 630,000 4,296,170 1.8
OIL
Total S.A. "B" ............................................ FR 32,630 3,296,184 1.4
OIL
Ente Nazionale Idrocarburi (ENI) S.p.A. ................... ITLY 372,200 2,100,963 0.9
OIL
Petroleum Geo-Services ASA-/- ............................. NOR 36,920 1,778,100 0.7
ENERGY EQUIPMENT & SERVICES
Korea Electric Power Corp. ................................ KOR 28,000 837,472 0.3
ELECTRICAL & GAS UTILITIES
------------
17,751,139
------------
Capital Goods (5.9%)
Canon, Inc. ............................................... JPN 120,000 3,269,298 1.3
OFFICE EQUIPMENT
Smiths Industries PLC ..................................... UK 217,000 2,780,708 1.1
AEROSPACE/DEFENSE
General Electric PLC ...................................... UK 460,000 2,750,042 1.1
AEROSPACE/DEFENSE
SGL Carbon AG ............................................. GER 17,970 2,459,866 1.0
INDUSTRIAL COMPONENTS
Telefonaktiebolaget LM Ericsson "B" ....................... SWDN 48,558 1,911,065 0.8
TELECOM EQUIPMENT
Premier Farnell PLC ....................................... UK 132,520 1,031,692 0.4
INDUSTRIAL COMPONENTS
Siebe PLC ................................................. UK 20,900 353,960 0.1
INDUSTRIAL COMPONENTS
Kurita Water Industries ................................... JPN 6,000 159,797 0.1
ELECTRICAL PLANT/EQUIPMENT
------------
14,716,428
------------
Technology (5.7%)
Alcatel Alsthom Compagnie Generale d'Electricite .......... FR 37,700 4,718,751 1.9
TELECOM TECHNOLOGY
Group Axime-/- ............................................ FR 22,880 2,704,262 1.1
COMPUTERS & PERIPHERALS
Cap Gemini N.V. ........................................... NETH 85,120 2,687,088 1.1
COMPUTERS & PERIPHERALS
</TABLE>

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

F3
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

PORTFOLIO OF INVESTMENTS (cont'd)

June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Technology (Continued)
Matsushita-Kotobuki Electronics Ltd. ...................... JPN 63,000 $ 2,090,465 0.9
COMPUTERS & PERIPHERALS
Koei Co., Ltd. ............................................ JPN 101,400 1,762,015 0.7
SOFTWARE
------------
13,962,581
------------
Multi-Industry/Miscellaneous (5.6%)
Shanghai Industrial Holdings Ltd. ......................... HK 579,000 3,602,494 1.5
MULTI-INDUSTRY
Kinnevik AB "B" Free ...................................... SWDN 126,080 3,511,728 1.4
MULTI-INDUSTRY
BBA Group PLC ............................................. UK 524,000 3,097,752 1.3
MULTI-INDUSTRY
Hutchison Whampoa ......................................... HK 279,000 2,412,996 1.0
MULTI-INDUSTRY
Wrightson Ltd. ............................................ NZ 1,500,000 957,685 0.4
MULTI-INDUSTRY
------------
13,582,655
------------
Materials/Basic Industry (5.2%)
Akzo Nobel N.V. ........................................... NETH 28,900 3,958,299 1.6
CHEMICALS
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 903,500 3,640,851 1.5
PAPER/PACKAGING
CRH PLC ................................................... UK 256,980 2,685,345 1.1
BUILDING MATERIALS & COMPONENTS
BOC Group PLC ............................................. UK 145,000 2,523,314 1.0
CHEMICALS
------------
12,807,809
------------
Consumer Non-Durables (2.1%)
Amway Japan Ltd. .......................................... JPN 125,000 4,235,068 1.7
HOUSEHOLD PRODUCTS
Guinness PLC .............................................. UK 109,600 1,073,186 0.4
BEVERAGES - ALCOHOLIC
------------
5,308,254
------------
Consumer Durables (2.1%)
Futuris Corp., Ltd. ....................................... AUSL 1,760,000 2,828,856 1.2
AUTO PARTS
Valeo S.A. ................................................ FR 34,930 2,168,200 0.9
AUTO PARTS
------------
4,997,056
------------ -----

TOTAL EQUITY INVESTMENTS (cost $192,165,187) ................ 230,747,296 94.5
------------ -----
</TABLE>

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

F4
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

PORTFOLIO OF INVESTMENTS (cont'd)

June 30, 1997 (Unaudited)

- --------------------------------------------------------------------------------
<TABLE>
<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 $26,415,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $26,881,683,
including accrued interest). (cost $26,352,208.) ........ $ 26,352,208 10.8
------------ -----

TOTAL INVESTMENTS (cost $218,517,395) * .................... 257,099,504 105.3
Other Assets and Liabilities ................................ (13,136,671) (5.3)
------------ -----

NET ASSETS .................................................. $243,962,833 100.0
------------ -----
------------ -----
</TABLE>

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

-/- Non-income producing security.
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $220,160,294 and
appreciation (depreciation) is as follows:

<TABLE>
<S> <C>
Unrealized appreciation: $ 44,503,365
Unrealized depreciation: (7,564,155)
-------------
Net unrealized appreciation: $ 36,939,210
-------------
-------------
</TABLE>

Abbreviation:
ADR -- American Depository Receipt

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

The Fund's Portfolio of Investments at June 30, 1997, was concentrated in the
following countries:

<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
{D}
---------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Australia (AUSL/AUD) ................. 4.7 4.7
Belgium (BEL/BEF) .................... 0.7 0.7
Brazil (BRZL/BRL) .................... 2.2 2.2
Denmark (DEN/DKK) .................... 2.4 2.4
France (FR/FRF) ...................... 6.1 6.1
Germany (GER/DEM) .................... 2.7 2.7
Hong Kong (HK/HKD) ................... 4.6 4.6
Italy (ITLY/ITL) ..................... 3.8 3.8
Japan (JPN/JPY) ...................... 12.7 12.7
Korea (KOR/KRW) ...................... 0.5 0.5
Mexico (MEX/MXN) ..................... 1.5 1.5
Netherlands (NETH/NLG) ............... 8.1 8.1
New Zealand (NZ/NZD) ................. 2.7 2.7
Norway (NOR/NOK) ..................... 0.7 0.7
Portugal (PORT/PTE) .................. 2.7 2.7
Singapore (SING/SGD) ................. 0.9 0.9
Spain (SPN/ESP) ...................... 4.2 4.2
Sweden (SWDN/SEK) .................... 5.8 5.8
Switzerland (SWTZ/CHF) ............... 4.8 4.8
Thailand (THAI/THB) .................. 0.9 0.9
United Kingdom (UK/GBP) .............. 21.8 21.8
United States & Other (US/USD) ....... -- 5.5 5.5
------ ----- -----
Total ............................... 94.5 5.5 100.0
------ ----- -----
------ ----- -----
</TABLE>

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

{d} Percentages indicated are based on net assets of $243,962,833.

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

F5
<PAGE>
GT GLOBAL INTERNATIONAL 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>
Deutsche Marks.......................... 6,272,847 1.6900 08/21/97 $ 176,857
French Francs........................... 5,200,470 5.7820 08/06/97 74,521
French Francs........................... 2,047,927 5.6900 08/20/97 61,036
Japanese Yen............................ 5,160,671 121.0000 07/07/97 (276,373)
Japanese Yen............................ 1,609,427 125.3300 08/06/97 (147,287)
Japanese Yen............................ 12,657,845 122.1500 08/12/97 (869,061)
Swiss Francs............................ 5,873,906 1.4314 09/19/97 64,336
-------------- --------------
Total Contracts to Sell (Receivable
amount $37,907,122).................. 38,823,093 $ (915,971)
-------------- --------------
--------------
THE VALUE OF CONTRACTS TO SELL AS
PERCENTAGE OF NET ASSETS IS 15.91%.
</TABLE>

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

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

F6
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

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

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

<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $192,165,187) (Note 1)....... $ 230,747,296
Repurchase agreement, at value and cost................................ 26,352,208
U.S. currency............................................. $ 185
Foreign currencies (cost $6,150,916)...................... 6,153,438 6,153,623
-----------
Receivable for securities sold......................................... 4,362,230
Dividends and dividend withholding tax reclaims receivable............. 806,061
Receivable for Fund shares sold........................................ 50,401
Miscellaneous receivable............................................... 19,622
Cash held as collateral for securities loaned (Note 1)................. 24,007,991
--------------
Total assets......................................................... 292,499,432
--------------
Liabilities:
Payable for Fund shares repurchased.................................... 17,969,216
Payable for securities purchased....................................... 5,026,358
Payable for open forward foreign currency contracts (Note 1)........... 915,971
Payable for investment management and administration fees (Note 2)..... 198,316
Payable for printing and postage expenses.............................. 163,911
Payable for service and distribution expenses (Note 2)................. 107,824
Payable for transfer agent fees (Note 2)............................... 61,778
Payable for professional fees.......................................... 21,565
Payable for registration and filing fees............................... 21,503
Payable for custodian fees (Note 1).................................... 18,252
Payable for Trustees' fees and expenses (Note 2)....................... 5,989
Payable for fund accounting fees (Note 2).............................. 4,023
Other accrued expenses................................................. 13,902
Collateral for securities loaned (Note 1).............................. 24,007,991
--------------
Total liabilities.................................................... 48,536,599
--------------
Net assets............................................................... $ 243,962,833
--------------
--------------
Class A:
Net asset value and redemption price per share ($177,810,129 DIVIDED BY
18,129,423 shares outstanding).......................................... $ 9.81
--------------
--------------
Maximum offering price per share (100/95.25 of $9.81) *.................. $ 10.30
--------------
--------------
Class B:+
Net asset value and offering price per share ($65,028,436 DIVIDED BY
6,841,709 shares outstanding)........................................... $ 9.50
--------------
--------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share
($1,124,268 DIVIDED BY 113,424 shares outstanding)...................... $ 9.91
--------------
--------------
Net assets consist of:
Paid in capital (Note 4)............................................... $ 181,290,227
Undistributed net investment income.................................... 517,101
Accumulated net realized gain on investments and foreign currency
transactions.......................................................... 24,476,083
Net unrealized depreciation on translation of assets and liabilities in
foreign currencies.................................................... (902,687)
Net unrealized appreciation of investments............................. 38,582,109
--------------
Total -- representing net assets applicable to capital shares
outstanding............................................................. $ 243,962,833
--------------
--------------
<FN>
- --------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>

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

F7
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

STATEMENT OF OPERATIONS

Six months ended June 30, 1997 (Unaudited)

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

<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $471,597)............ $ 2,587,527
Interest income......................................................... 339,805
-------------
Total investment income............................................... 2,927,332
-------------
Expenses:
Investment management and administration fees (Note 2).................. 1,198,687
Service and distribution expenses: (Note 2)
Class A................................................. $ 317,587
Class B................................................. 318,289 635,876
------------
Transfer agent fees (Note 2)............................................ 356,536
Custodian fees.......................................................... 108,501
Printing and postage expenses........................................... 65,629
Registration and filing fees............................................ 48,657
Fund accounting fees (Note 2)........................................... 30,736
Audit fees.............................................................. 26,045
Legal fees.............................................................. 15,630
Trustees' fees and expenses (Note 2).................................... 6,763
Other expenses (Note 1)................................................. 28,331
-------------
Total expenses before reductions...................................... 2,521,391
-------------
Expense reductions (Notes 1 & 5).................................... (111,160)
-------------
Total net expenses.................................................... 2,410,231
-------------
Net investment income..................................................... 517,101
-------------
Net realized and unrealized gain (loss) on investments and
foreign currencies: (Note 1)
Net realized gain on investments.......................... 13,573,198
Net realized gain on foreign currency transactions........ 4,860,128
------------
Net realized gain during the period................................... 18,433,326
Net change in unrealized depreciation on translation of
assets and liabilities in foreign currencies............. (2,171,370)
Net change in unrealized appreciation of investments...... 6,957,335
------------
Net unrealized appreciation during the period......................... 4,785,965
-------------
Net realized and unrealized gain on investments and foreign currencies.... 23,219,291
-------------
Net increase in net assets resulting from operations...................... $ 23,736,392
-------------
-------------
</TABLE>

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

F8
<PAGE>
GT GLOBAL INTERNATIONAL 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
-------------- --------------
Decrease in net assets
Operations:
Net investment income (loss).............................. $ 517,101 $ (860,684)
Net realized gain on investments and foreign currency
transactions............................................. 18,433,326 37,931,580
Net change in unrealized appreciation (depreciation) on
translation of assets and liabilities in foreign
currencies............................................... (2,171,370) 205,239
Net change in unrealized appreciation (depreciation) of
investments.............................................. 6,957,335 (7,070,173)
-------------- --------------
Net increase in net assets resulting from operations.... 23,736,392 30,205,962
-------------- --------------
Class A:
Distributions to shareholders:
From net realized gain on investments..................... -- (20,343,820)
Class B:
Distributions to shareholders:
From net realized gain on investments..................... -- (6,672,791)
Advisor Class:
Distributions to shareholders:
From net realized gain on investments..................... -- (46,941)
-------------- --------------
Total distributions..................................... -- (27,063,552)
-------------- --------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.......... 234,663,407 1,289,311,201
Decrease from capital shares repurchased.................. (275,600,951) (1,410,140,865)
-------------- --------------
Net decrease from capital share transactions............ (40,937,544) (120,829,664)
-------------- --------------
Total decrease in net assets................................ (17,201,152) (117,687,254)
Net assets:
Beginning of period....................................... 261,163,985 378,851,239
-------------- --------------
End of period *........................................... $ 243,962,833 $ 261,163,985
-------------- --------------
-------------- --------------
* Includes undistributed net investment income of.......... $ 517,101 $ --
-------------- --------------
-------------- --------------
</TABLE>

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

F9
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

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>
CLASS A+
--------------------------------------------------------------------------------
SIX
MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1997 -----------------------------------------------------------------
(UNAUDITED) (A) 1996 (A) 1995 1994 1993 (A) 1992
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 8.92 $ 9.08 $ 9.17 $ 11.02 $ 8.21 $ 8.74
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss).......... 0.03 (0.01) 0.03 (0.04) 0.03 0.11
Net realized and unrealized gain
(loss) on investments................ 0.86 0.84 0.32 (0.82) 2.78 (0.62)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from
investment operations.............. 0.89 0.83 0.35 (0.86) 2.81 (0.51)
--------- --------- --------- --------- --------- ---------
Distributions to shareholders:
From net investment income............ -- -- -- (0.04) -- (0.02)
From net realized gain on
investments.......................... -- (0.99) (0.24) (0.95) -- --
In excess of net realized gain on
investments.......................... -- -- (0.20) -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions................. -- (0.99) (0.44) (0.99) -- (0.02)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 9.81 $ 8.92 $ 9.08 $ 9.17 $ 11.02 $ 8.21
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------

Total investment return (d)............. 9.98%(b) 9.28% 3.88% (7.78)% 34.23% (5.83)%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $177,810 $196,601 $308,816 $430,701 $523,397 $421,693
Ratio of net investment income (loss) to
average net assets..................... 0.59%(c) (0.14)% 0.24% (0.04)% 0.3% 1.2%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.79%(c) 1.80% 1.70% 1.70% 1.80% 1.90%
Without expense reductions............ 1.88%(c) 1.91% 1.78% 1.75% --%* --%*
Portfolio turnover rate++++............. 70%(c) 74% 75% 96% 90% 89%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0239 $ 0.0267 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.
(a) Calculated based upon average shares outstanding during the period.
(b) Not annualized
(c) Annualized
(d) Total investment return does not include sales charges.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
N/A Not applicable.

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

F10
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

FINANCIAL HIGHLIGHTS (cont'd)

<TABLE>
<CAPTION>
CLASS B++
---------------------------------------------------------------------
SIX APRIL 1,
MONTHS 1993
ENDED TO
JUNE 30, YEAR ENDED DECEMBER 31, DECEMBER
1997 --------------------------------------- 31,
(UNAUDITED) (A) 1996 (A) 1995 1994 1993 (A)
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 8.68 $ 8.91 $ 9.07 $ 10.98 $ 8.74
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss).......... -- (0.07) (0.04) (0.10) (0.01)
Net realized and unrealized gain
(loss) on investments................ 0.82 0.83 0.32 (0.82) 2.25
--------- --------- --------- --------- ---------
Net increase (decrease) from
investment operations.............. 0.82 0.76 0.28 (0.92) 2.24
--------- --------- --------- --------- ---------
Distributions to shareholders:
From net investment income............ -- -- -- (0.04) --
From net realized gain on
investments.......................... -- (0.99) (0.24) (0.95) --
In excess of net realized gain on
investments.......................... -- -- (0.20) -- --
--------- --------- --------- --------- ---------
Total distributions................. -- (0.99) (0.44) (0.99) --
--------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 9.50 $ 8.68 $ 8.91 $ 9.07 $ 10.98
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------

Total investment return (d)............. 9.45%(b) 8.67% 3.15% (8.36)% 25.63%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 65,028 $ 64,102 $ 69,654 $ 71,794 $ 30,745
Ratio of net investment income (loss) to
average net assets..................... (0.06)%(c) (0.79)% (0.41)% (0.69)% (0.4)%(c)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.44%(c) 2.45% 2.35% 2.35% 2.4%(c)
Without expense reductions............ 2.53%(c) 2.56% 2.43% 2.40% --%*
Portfolio turnover rate++++............. 70%(c) 74% 75% 96% 90%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0239 $ 0.0267 N/A N/A N/A
</TABLE>

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

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

F11
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

FINANCIAL HIGHLIGHTS (cont'd)

<TABLE>
<CAPTION>
ADVISOR CLASS+++
---------------------------------------
SIX JUNE 1,
MONTHS YEAR 1995
ENDED ENDED TO
JUNE 30, DECEMBER DECEMBER
1997 31, 31,
(UNAUDITED) (A) 1996 (A) 1995
--------- --------- ---------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.01 $ 9.11 $ 8.49
--------- --------- ---------
Income from investment operations:
Net investment income (loss).......... 0.05 0.02 0.03
Net realized and unrealized gain
(loss) on investments................ 0.85 0.87 1.03
--------- --------- ---------
Net increase (decrease) from
investment operations.............. 0.90 0.89 1.06
--------- --------- ---------
Distributions to shareholders:
From net investment income............ -- -- --
From net realized gain on
investments.......................... -- (0.99) (0.24)
In excess of net realized gain on
investments.......................... -- -- (0.20)
--------- --------- ---------
Total distributions................. -- (0.99) (0.44)
--------- --------- ---------
Net asset value, end of period.......... $ 9.91 $ 9.01 $ 9.11
--------- --------- ---------
--------- --------- ---------

Total investment return (d)............. 10.11%(b) 9.79% 12.56%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 1,124 $ 461 $ 381
Ratio of net investment income (loss) to
average net assets..................... 0.94%(c) 0.21% 0.59%(c)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.44%(c) 1.45% 1.35%(c)
Without expense reductions............ 1.53%(c) 1.56% 1.43%(c)
Portfolio turnover rate++++............. 70%(c) 74% 75%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0239 $ 0.0267 N/A
</TABLE>

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

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

F12
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

NOTES TO
FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)

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

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

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

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

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

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

Fixed income investments are valued at the mean of representative quoted bid and
asked prices for such investments or, if such prices are not available, at
prices for investments of comparative maturity, quality and type; however, when
the Manager deems it appropriate, prices obtained for the day of valuation from
a bond pricing service will be used. Short-term investments with a maturity of
60 days or less are valued to amortized cost, adjusted for foreign exchange
translation and market fluctuation, if any.

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

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

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

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

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

(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, U.S. government securities or other
high quality debt securities of which the value, including accrued interest, is
at least equal to the amount to be repaid to the Fund under each agreement at
its maturity.

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

F13
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

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

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

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

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

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

(H) PORTFOLIO SECURITIES LOANED
At June 30, 1997, stocks with an aggregate value of approximately $22,964,528
were on loan to brokers. The loans were secured by cash collateral of
$24,007,991, received by the Fund. Cash collateral is received by the Fund
against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For the period ended June 30, 1997,
the Fund received securities lending fees of $104,788. Fees received from
securities loaned were used to reduce the Fund's custodian and administrative
expenses.

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

(J) DISTRIBUTION TO SHAREHOLDERS
Distribution to shareholders are recorded by the Fund on the ex-date. Income and
capital gain distributions are determined in accordance with Federal income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.

(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments

F14
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

in emerging market countries may involve greater risks than investments in more
developed markets, and the prices of such investments may be volatile. These
risks of investing in foreign and emerging markets may include foreign currency
exchange rate fluctuations, perceived credit risk, adverse political and
economic developments and possible adverse foreign government intervention.

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

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

(N) LINE OF CREDIT
The Fund along with certain other funds advised by the Manager, has a line of
credit with BankBoston and State Street Bank. The arrangements with the banks
allow the Fund to borrow an aggregate maximum amount of $200,000,000. The Fund
is limited to borrowing up to 33 1/3% of the value of the Fund's total assets.

For the period ended June 30, 1997, the weighted average outstanding daily
balance of bank loans (based on the number of days the loans were outstanding)
was $4,785,714 with a weighted average interest rate of 6.32%. Interest expense
for the period ended June 30, 1997, was $11,760, included in "Other expenses" on
the Statement of Operations.

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

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

Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. GT Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the period ended June 30, 1997, GT Global retained $6,909 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 did not collect CDSC's
for the period ended June 30, 1997. GT Global also makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class A
shares.

Class B shares are not subject to initial sales charges. When Class B shares are
sold, GT Global from its own resources pays commissions to dealers through which
the sales are made. Certain redemptions of Class B shares made within six years
of purchase are subject to CDSC's, in accordance with the Fund's current
prospectus. During the period ended June 30, 1997, GT Global collected CDSC's in
the amount of $161,329. In addition, GT Global makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class B
shares.

Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Trustees has
adopted separate distribution plans with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may pay GT Global a distribution fee at the annualized
rate of up to 0.35% of the average daily net assets of the Fund's Class A
shares, less any amounts paid by the Fund as the aforementioned service fee, for
its expenditures incurred in providing services as distributor. All expenses for
which GT Global is reimbursed under the Class A Plan will have been incurred
within one year of such reimbursement.

Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may pay GT Global a distribution fee at the annualized
rate of up to 0.75% of the average daily net assets of the Fund's Class B shares
for its expenditures incurred in providing services as distributor. Expenses
incurred under the Class B Plan in excess of 1.00% annually may be carried
forward for reimbursement in subsequent years as long as that Plan continues in
effect.

The Manager and GT Global have voluntarily undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest and extraordinary
items) to the maximum annual level of 2.25%, and 2.90%, and 1.90% of the average
daily net assets of the Fund's Class A, Class B and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by the
Manager of investment management and administration fees, waivers by GT Global
of payments under the Class A Plan and/or Class B Plan and/or reimbursements by
the Manager or GT Global of portions of the Fund's other operating expenses.

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

F15
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

transaction fee of $1.75 for all transactions other than exchanges and a per
exchange fee of $2.25. GT Services also is reimbursed by the Fund for its
out-of-pocket expenses for such items as postage, forms, telephone charges,
stationery and office supplies.

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

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

3. PURCHASES AND SALES OF SECURITIES
For the period ended June 30, 1997, purchases and sales of investment securities
by the Fund, other than U.S. government obligations and short-term investments,
aggregated $80,599,101 and $119,721,942, 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............................. 17,851,688 $ 163,125,909 122,327,179 $ 1,141,723,541
Shares issued in connection with
reinvestment of distributions......... -- -- 1,912,490 16,848,644
--------------- ------------------ ----------------- --------------------
17,851,688 163,125,909 124,239,669 1,158,572,185
Shares repurchased...................... (21,757,850) (199,412,114) (136,198,803) (1,274,970,792)
--------------- ------------------ ----------------- --------------------
Net decrease............................ (3,906,162) $ (36,286,205) (11,959,134) $ (116,398,607)
--------------- ------------------ ----------------- --------------------
--------------- ------------------ ----------------- --------------------

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............................. 7,387,202 $ 67,310,694 11,345,619 $ 103,852,840
Shares issued in connection with
reinvestment of distributions......... -- -- 678,796 5,819,941
--------------- ------------------ ----------------- --------------------
7,387,202 67,310,694 12,024,415 109,672,781
Shares repurchased...................... (7,933,056) (72,515,701) (12,451,843) (114,133,394)
--------------- ------------------ ----------------- --------------------
Net decrease............................ (545,854) $ (5,205,007) (427,428) $ (4,460,613)
--------------- ------------------ ----------------- --------------------
--------------- ------------------ ----------------- --------------------
<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............................. 456,136 $ 4,226,804 2,233,829 $ 21,033,137
Shares issued in connection with
reinvestment of distributions......... -- -- 3,723 33,098
--------------- ------------------ ----------------- --------------------
456,136 4,226,804 2,237,552 21,066,235
Shares repurchased...................... (393,878) (3,673,136) (2,228,201) (21,036,679)
--------------- ------------------ ----------------- --------------------
Net increase............................ 62,258 $ 553,668 9,351 $ 29,556
--------------- ------------------ ----------------- --------------------
--------------- ------------------ ----------------- --------------------
</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 $6,372 under these arrangements.

F16
<PAGE>
GT GLOBAL INTERNATIONAL GROWTH FUND

NOTES

- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL INTERNATIONAL 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 INTERNATIONAL GROWTH FUND
INTSR708039M