<PAGE>
GT GLOBAL
OVER 25 YEARS
OF INVESTING
WORLDWIDE
/ /
GT GLOBAL
WORLDWIDE
GROWTH FUND
/ /
ANNUAL REPORT
DECEMBER 31, 1997
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Message from the
Chairman............. 1
Report from the Fund
Managers and Key
Portfolio Holdings... 2
Report of Independent
Accountants.......... F1
Financial
Statements........... F2
Views of the Funds' management
described in this report are as
of the date written. Portfolio
holdings and allocations are as
of December 31, 1997, unless
otherwise noted. These views,
portfolio holdings and
allocations may have changed
subsequently.
</TABLE>
<PAGE>
MESSAGE FROM THE CHAIRMAN
Dear Shareholder,
Nineteen ninety-seven has been a challenging and exciting year. The volatility
of the market--and the resulting record highs and lows--has made investing a
sometimes awe-inspiring endeavor for investors and investment professionals
alike.
Across the GT Global family, our Funds have remained true to their investment
goals and objectives regardless of world events. Whether it be the recent
turmoil in the Asian markets, the privatization and reform underway across
eastern Europe, deregulation occurring in Latin America or the ups and downs of
the U.S. market, our Funds have maintained their focus. In fact, we believe
these changes are yielding new investment opportunities in both established
economies and dynamic new markets around the world. Looking forward to 1998, our
commitment is to continue to monitor world markets and seek additional ways to
capitalize on events as they unfold for the benefit of our shareholders.
In an effort to provide our customers easier access to information about the GT
Global Funds, we launched our website, www.gtglobal.com, during the latter part
of 1997. We hope to continually enhance the information it contains, from our
worldwide economic outlook, to fund price and performance reporting, to the
Millennium Minute message of the day. Used in conjunction with annual and
semiannual reports and your quarterly statement on our Funds, we hope it helps
you monitor your investments and achieve your financial goals.
Be assured that we will continue to strive to offer you the quality investment
products you need to build a well-diversified portfolio. As always, we
appreciate your continued confidence in our Funds. Should you or your adviser
have any questions regarding GT Global Funds, please call us at
800-824-1580. One of our representatives will be happy to assist you.
Sincerely,
/s/ William J. Guilfoyle
William J. Guilfoyle
Chairman of the Board and President
GT Global Funds
1
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PERFORMANCE SUMMARY
[GRAPHIC]
INVESTMENT OBJECTIVE
The GT Global Worldwide Growth Fund seeks long-term growth of capital by
investing primarily in equity securities of companies in markets around the
world.
[GRAPH]
/ / GT GLOBAL WORLDWIDE GROWTH FUND CLASS A
/ / MSCI World Index
6/9/87 "$9,525" "$10,000"
"9,887" "9,718"
"10,449" "9,914"
"10,897" "10,502"
"11,059" "10,321"
"7,858" "8,570"
"7,763" "8,363"
"8,420" "8,727"
"8,525" "8,942"
"9,058" "9,462"
"9,087" "9,750"
"9,458" "9,874"
"9,315" "9,679"
"9,401" "9,667"
"9,439" "9,851"
"8,944" "9,311"
"9,011" "9,708"
"9,392" "10,356"
"9,611" "10,718"
"9,794" "10,817"
"10,361" "11,210"
"10,419" "11,142"
"10,717" "11,072"
"11,179" "11,329"
"11,304" "11,053"
"11,208" "10,931"
"12,045" "12,168"
"12,266" "11,875"
"12,564" "12,212"
"12,045" "11,807"
"12,516" "12,280"
"13,475" "12,677"
"13,099" "12,087"
"12,862" "11,571"
"12,971" "10,874"
"12,645" "10,719"
"13,722" "11,850"
"13,841" "11,768"
"14,246" "11,877"
"12,625" "10,767"
"11,458" "9,634"
"11,864" "10,535"
"11,834" "10,364"
"11,786" "10,583"
"12,135" "10,972"
"12,972" "11,990"
"13,231" "11,638"
"13,231" "11,731"
"13,769" "11,999"
"13,141" "11,260"
"13,888" "11,794"
"13,958" "11,758"
"13,998" "12,069"
"14,088" "12,267"
"13,420" "11,734"
"14,174" "12,590"
"14,224" "12,359"
"14,617" "12,148"
"14,305" "11,578"
"14,577" "11,741"
"15,030" "12,211"
"14,566" "11,804"
"14,415" "11,836"
"14,133" "12,126"
"13,720" "12,017"
10/31/92 "14,033" "11,694"
"14,274" "11,905"
"14,637" "12,004"
"14,971" "12,046"
"15,032" "12,334"
"15,790" "13,051"
"15,881" "13,658"
"16,488" "13,975"
"16,306" "13,860"
"16,721" "14,148"
"17,672" "14,799"
"17,621" "14,528"
"18,087" "14,930"
"17,237" "14,088"
"18,672" "14,780"
"19,602" "15,757"
"18,896" "15,556"
"17,774" "14,888"
"18,116" "15,351"
"18,020" "15,393"
"17,667" "15,353"
"18,127" "15,647"
"19,025" "16,121"
"18,565" "15,701"
"18,629" "16,150"
"17,870" "15,452"
"17,430" "15,605"
"16,285" "15,374"
"16,117" "15,601"
"16,229" "16,356"
"16,958" "16,929"
"17,127" "17,077"
"17,733" "17,075"
"18,878" "17,933"
"18,878" "17,537"
"19,416" "18,051"
"19,024" "17,770"
"19,203" "18,390"
"19,388" "18,931"
"19,687" "19,277"
"19,584" "19,398"
"19,929" "19,725"
"20,275" "20,192"
"20,194" "20,213"
"20,252" "20,319"
"19,468" "19,605"
"20,056" "19,834"
"20,494" "20,614"
"20,552" "20,761"
"21,359" "21,929"
"21,506" "21,581"
"21,686" "21,845"
"21,210" "22,100"
"21,068" "21,667"
"21,480" "22,379"
"22,497" "23,764"
"23,217" "24,953"
"24,878" "26,106"
"23,822" "24,363"
"25,251" "25,691"
"23,243" "24,343"
"23,063" "24,777"
12/31/97 "23,657" "25,083"
The chart above shows the performance of the GT Global Worldwide Growth Fund,
Class A shares, since the Fund's inception, versus the MSCI World Index. This
represents a cumulative return of 136.57% and an average annual total return of
8.49% 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 $14,280 on December 31,
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 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 $13,947
on December 31, 1997.
AVERAGE ANNUAL TOTAL RETURNS%(1)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARE CLASS WITHOUT SALES CHARGE(2) 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 A(3) 10.00 10.08 10.88 9.00 4.78 9.01 10.34 8.49
CLASS B(3) 9.22 N/A N/A 8.06 5.02 N/A N/A 7.79
ADVISOR CLASS(4) 10.43 N/A N/A 13.73 N/A N/A N/A N/A
</TABLE>
HISTORICAL PERFORMANCE(2)
ANNUAL TOTAL RETURNS % (LAST 10 YEARS)
<TABLE>
<CAPTION>
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A 16.31 37.59 -12.53 20.26 3.27 27.56 -6.65 11.23 10.92 10.00
CLASS B N/A N/A N/A N/A N/A 17.29(3) -7.32 10.52 10.16 9.22
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gains
distributions at net asset value.
(2) This performance data do not reflect the maximum 4.75% sales charge and the
contingent deferred sales charge for Class A and Class B shares,
respectively, which if included, would have reduced performance quoted.
(3) The Fund began operations on June 9, 1987; Class B shares commenced on
April 1, 1993.
(4) The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public. They 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 Fund's prospectus for more complete information.
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
MICHAEL LINDSELL
Q HOW DID THE FUND PERFORM?
A Concern over the likely scope of Asian weakness had a chilling impact on
equity markets worldwide in the fourth quarter. Some companies' preannouncements
of earnings disappointments spurred a flight to quality, as many investors
either channeled their holdings into large cap, liquid stocks-causing a slump in
performance of small and mid cap issues-or reduced equity positions to buy
bonds.
Taking into account this difficult environment, the Fund's Class A shares
returned 10.00% (4.78% including the maximum 4.75% sales charge) over the
12-month period ended December 31, 1997. Total return for Class B shares for
the same period was 9.22% (5.02% including the maximum 5% contingent deferred
sales charge). The Morgan Stanley Capital International (MSCI) World Index(5)
returned 16.23% over the same period.
Q WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE RELATIVE TO THE INDEX?
A Although global equity markets were considerably more volatile in the
second half of 1997, during this period the Fund enjoyed a significant
turnaround in performance relative to the index. Over the first half of the
year, however, the Fund underperformed largely because of underweighting to and
security selections in the U.S. Security selection also hindered performance in
the UK, where the Fund held an overweighted position. While we continue to find
UK companies attractive, over the 12-month period the Fund experienced several
disappointments, including Premier Farnell,(6) the electrical distributor, which
was negatively impacted by weak European growth.
The Fund also had small exposure to two Asian markets-South Korea and Thailand-
markets not represented in the index. Although the Fund held only a few
selective companies in these markets, severe declines in share prices over the
last half of the year impacted Fund performance.
On the other hand, the Fund's overweighting to several continental European
countries-Sweden, Norway and Italy, in particular-contributed positively to
performance. As in the U.S., most continental bourses continued to advance,
thanks to a rally in bond markets and low inflation. We were also significantly
underweighted in Japan relative to the index. We invested cautiously in this
difficult market and benefited from security selection there. Similarly, the
Fund's performance was buoyed by our allocation to Brazil and Mexico, neither of
which are represented in the index. These markets posted solid returns for the
year, although they were tempered during the final
few months.
Q WHAT CHANGES DID YOU IMPLEMENT IN THE PORTFOLIO DURING THE YEAR?
A We reduced a number of our European positions in favor of the U.S. European
markets have performed well and become increasingly expensive. We think current
valuations are generally too high, particularly in the context of upcoming
monetary union, which we believe will compound market instabilities. We also
introduced several smaller positions in eastern Europe, specifically the Czech
Republic and Hungary. We think this region has significant long-term potential,
as future trend economic growth rates are forecasted to surpass those of more
developed European countries. Many of these markets, however, may be vulnerable
to relatively greater volatility.
Additionally, we introduced a position in India. We feel the country's overall
economic environment is conducive to equity performance, with the potential for
interest rates and inflation to remain subdued. India is at a much earlier stage
of development than most Asian markets, and we are optimistic about continued
reform there.
CONTINUED P.4
(5) The MSCI World Index is a market value weighted average of the
performance of 1,560 securities listed on major world stock exchanges -
the U.S., Europe, Canada, Australia, New Zealand and the Far East. It
includes the effect of reinvested dividends and is measured in U.S.
dollars.
(6) Shares in Premier Farnell were sold prior to December 31, 1997.
Indices are unmanaged, not available for direct investment and do not
include the effects of sales charges and professional management fees.
3
<PAGE>
INTERVIEW WITH PORTFOLIO MANAGER CONTINUED
Q WHAT CONTRIBUTED TO IMPRESSIVE U.S. STOCK MARKET RETURNS?
A The stock market continued its remarkable upsurge in 1997, reflecting what
has been an almost ideal environment for equities-steady GDP growth, declining
inflation and firm Federal Reserve policy. Gains in 1997 were all the more
impressive given the extended length of the current seven year bull market,
concerns about a tightening labor market with rising wage costs, the periodic
threat of Federal Reserve tightening and toward year-end, the Asian currency
crisis.
Strong performance of the equity market was accompanied by higher volatility
than in the two previous years. In addition, better-than-expected economic
growth and resulting fears of higher interest rates clouded market prospects
during the first quarter. However, in the second and third quarters, moderating
growth and a continued deceleration of inflation reversed some of these fears,
resulting in a rally that broadened into small and mid capitalization issues
after three years of large cap leadership. October's collapse of the Thai baht
and the Korean won, however, touched off a period of volatility and led
investors back to larger cap issues, fueling modest gains for larger cap issues
as a whole in the fourth quarter.
Q WHAT ARE SOME OF THE IMPLICATIONS OF EUROPEAN MONETARY UNION IN 1998?
A We believe that monetary union is likely to go forward in May 1998. This
possibility was priced into bond and equity markets in 1997, as bond yields fell
in peripheral countries such as Spain to converge with German levels. At some
point, however, we believe EMU could potentially create serious structural
problems and interest rates would rise.
Similarly, if monetary union is delayed or canceled, we believe the impact would
be negative for Spain and Italy, where bond yields would rise sharply. However,
in the event of a rise in interest rates, we believe the Fund is well positioned
relative to the European market. The Fund currently has no exposure to Spanish
equities and is considerably underweighted in Italy relative to the index. The
Fund is also overweighted in the UK and the Netherlands, which we think could be
relative winners. We feel the Fund's substantial exposure to the UK offers good
value because its equity market is home to some excellent financial services and
health care companies.
Q RELATIVE TO THE INDEX, WHY IS THE FUND CONSIDERABLY UNDERWEIGHTED IN JAPAN?
A While we believe fundamental changes are likely to occur in 1998, our top-
down analysis suggests the year will continue to be a very difficult one for
Japan with limited economic growth. The course of the stock market rests on the
policy response of Japanese authorities. Clearly, Japan has the resources to
produce a domestic demand-led recovery, but we believe the policy response must
be rigorous, wide ranging and implemented quickly.
At the same time, more action by Japanese corporations is necessary. As yet,
remarkably little active restructuring is taking place in Japan. Although the
unemployment rate has recently been creeping up, it remains at relatively modest
levels. However, we look for this to change in 1998-99.
In addition, without policy action and corporate restructuring, we foresee no
substantial rally in the Japanese stock market; indeed, further falls are
possible. In this environment, we have continued to focus on companies we feel
can exploit major trends, such as the graying of Japan, companies that are
beneficiaries of the long-term weakness of the yen, companies entering new
markets and businesses that can maintain pricing power.
Q HOW DID AUSTRALASIAN MARKETS FARE?
A Despite our positive outlook, the second half of the year was disappointing
for investors in both Australia and New Zealand. The two stock markets fell by
15.25% and 18.15%, respectively, in U.S. dollars (based on MSCI country
indices). In the fourth quarter, foreign investors also had to bear the effects
of falls in both Australian and New Zealand dollars of around 10% against the
U.S. dollar.
During this time, two factors had additional impact on both countries. First,
many experts felt prospects for economic and corporate earnings growth would be
constrained by the financial crises in Asia, the destination of over half the
exports from both Australia and New Zealand. This view, which overlooked the
importance of foodstuffs exported to Asia,
CONTINUED P.5
4
<PAGE>
INTERVIEW WITH PORTFOLIO MANAGER CONTINUED
was prevalent despite growth in many sectors of the Australian economy remaining
robust through the third quarter.
Second, commodity prices had already been weakening. For example, the outlook
for base metals was clouded by developments in East Asia, while sales by central
banks (and falling inflation expectations) had caused the price of gold to
slide.
Q WHAT IS YOUR OUTLOOK OVER THE LONGER TERM?
A After seven years of solid economic growth, improving corporate profits and
a rising equity market in the U.S., our outlook for the stock market remains
positive. We believe the focus of U.S. corporate management on improving
profitability and competitiveness on a global basis should continue to drive
earnings. We expect weakness in Asia will moderate growth somewhat, but see
increasing potential for the Federal Reserve to ease interest rates later in
1998.
In Europe, although we reduced the Fund's weighting, we feel the portfolio is
well positioned to take advantage of opportunities in the European marketplace
over the coming year. We believe European markets will continue to provide
attractive returns boosted by consolidation and increasing emphasis on the
creation of shareholder value. Currently, the Fund is concentrated in companies
with visible earnings growth and those we believe have the ability to rerate
substantially against their global peers.
Conversely, as we enter 1998, we believe Asian recovery will take time and its
stock markets are likely to remain extremely volatile. At present, we anticipate
maintaining our Hong Kong presence and will continue to invest elsewhere on a
very selective basis.
ABOUT THE PORTFOLIO MANAGERS
ROGER YATES - Global Chief Investment Officer for Chancellor LGT Asset
Management since October 1997. Mr. Yates was International Chief Investment
Officer for Chancellor LGT from September '96 to October '97, and from '94 to
'96, he was Chief Investment Officer and Portfolio Manager for Europe and the
UK. 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
Chancellor LGT. 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.
RICHARD COLLINS - Senior Equity Portfolio Manager and Managing Director since
1993. Previously, Mr. Collins spent 10 years at Scudder, Stevens & Clark. From
1970 to 1973, he was an oil and gas Analyst at Salomon Brothers.
Mr. Collins was an employee of Chancellor Capital Management until October 31,
1996, when LGT Asset Management merged with Chancellor. The resulting entity
was renamed Chancellor LGT Asset Management and is the investment manager to
GT Global Funds.
<TABLE>
<CAPTION>
GEOGRAPHIC ALLOCATION OF NET ASSETS %
1997 1996
DECEMBER 31 DECEMBER 31
<S> <C> <C>
Australia 5.2 3.0
Brazil 3.5 1.2
Czech Republic 1.1 N/A
France 2.6 4.1
Germany 1.1 4.2
Hong Kong 2.9 4.3
Hungary 1.2 N/A
India 1.2 N/A
Italy 1.3 2.7
Japan 5.6 8.2
Korea 0.2 0.8
Mexico 0.9 1.2
Netherlands 3.8 3.5
New Zealand 1.7 3.6
Norway 1.3 0.6
Portugal 2.2 1.2
Singapore 0.6 2.9
Spain N/A 2.5
Sweden 2.8 2.2
Switzerland 2.2 3.4
Thailand 0.3 1.3
United Kingdom 15.8 15.4
U.S. & Other 42.5 33.7
</TABLE>
Allocations will change based on current market conditions.
5
<PAGE>
SECTOR ALLOCATION OF NET ASSETS %
DECEMBER 31, 1997
Finance 26.9
Services 23.2
Health Care 10.3
Material/Basic Industry 8.3
Energy 6.1
Technology 5.2
Capital Goods 4.0
Consumer Durables 3.5
Consumer Non-Durables 3.4
Multi-Industry/Misc. 1.2
Short Term & Other 7.9
A complete listing of holdings and allocations may be found in the Financial
Statements section of this report.
<TABLE>
<CAPTION>
GT GLOBAL WORLDWIDE GROWTH FUND % of
KEY PORTFOLIO HOLDINGS(7) Country Net Assets
<S> <C> <C>
STUDENT LOAN MARKETING ASSOCIATION A financial intermediary serving the U.S. 2.9
education credit market, the company purchases and services student loans made
under federally sponsored student loan programs, and provides financial and
operational services to originators of such loans.
CITICORP The parent of Citibank, Citicorp provides a broad range of financial U.S. 2.6
services from over 3,200 locations in 98 countries and territories throughout
the world.
TRAVELERS GROUP, INC. Through its subsidiaries, Travelers offers multiline U.S. 2.5
insurance and financial and health care services, primarily to customers in the
United States.
CHASE MANHATTAN CORP. Chase Manhattan is a bank holding company providing U.S. 2.4
domestic and international financial services through various bank and non-bank
subsidiaries.
FEDERATED DEPARTMENT STORES, INC. The company operates more than 400 full-line U.S. 2.3
department stores and 150 specialty stores in 36 states.
BRISTOL MYERS SQUIBB CO. Researches, develops, manufactures and markets U.S. 2.3
prescription and non-prescription drugs, medical devices, health and skin care
products, toiletries and beauty aids. Product lines include cardiovascular
drugs, antibiotics, central nervous system drugs, and chemotherapeutic and
diagnostic agents.
COMPAQ COMPUTER CORP. Compaq designs, develops, manufactures and markets U.S. 2.2
personal computers for professional users and consumers.
PETROLEO BRASILEIRO S.A. (PETROBRAS) Produces oil and natural gas liquids Brazil 2.2
(mainly oil products and fuel alcohol) through approximately 7,258 active wells.
Petroleo also provides maritime freight services.
SERVICE CORPORATION INTERNATIONAL This company provides death care services U.S. 2.1
worldwide, as well as capital financing to independent funeral home and cemetery
operators.
INTEL CORP. Intel designs and manufactures microcomputer components and related U.S. 2.1
products, which are sold worldwide.
</TABLE>
Source: Bloomberg, January 1998
(7) There can be no assurance the Fund will continue to hold these securities.
6
<PAGE>
GT GLOBAL
WORLDWIDE
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
GT Global Growth Series:
We have audited the accompanying statement of assets and liabilities of GT
Global Worldwide Growth Fund, one of the funds organized as a series of GT
Global Growth Series, including the schedule of portfolio investments, as of
December 31, 1997, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimated
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of GT
Global Worldwide Growth Fund as of December 31, 1997, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
FEBRUARY 17, 1998
F1
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (26.9%)
Student Loan Marketing Association ........................ US 31,800 $ 4,424,175 2.9
OTHER FINANCIAL
Citicorp .................................................. US 31,600 3,995,420 2.6
BANKS-MONEY CENTER
Travelers Group, Inc. ..................................... US 70,500 3,798,187 2.5
INSURANCE - MULTI-LINE
Chase Manhattan Corp. ..................................... US 33,500 3,668,250 2.4
BANKS-MONEY CENTER
HSBC Holdings PLC ......................................... HK 104,000 2,563,593 1.7
BANKS-MONEY CENTER
Royal & Sun Alliance Insurance Group PLC .................. UK 235,000 2,365,435 1.6
INSURANCE - MULTI-LINE
Australia & New Zealand Banking Group Ltd. ................ AUSL 350,000 2,312,203 1.5
BANKS-REGIONAL
Nordbanken Holding AB-/- .................................. SWDN 398,006 2,251,426 1.5
OTHER FINANCIAL
Schroders PLC ............................................. UK 70,000 2,198,851 1.5
BANKS-MONEY CENTER
ING Groep N.V. ............................................ NETH 47,300 1,992,610 1.3
OTHER FINANCIAL
ForeningsSparbanken AB .................................... SWDN 84,560 1,922,932 1.3
BANKS-REGIONAL
State Bank of India Ltd. - GDR{\/} ........................ IND 103,400 1,848,275 1.2
BANKS-REGIONAL
Lloyds TSB Group PLC ...................................... UK 139,000 1,796,273 1.2
BANKS-REGIONAL
Old Mutual South Africa Trust PLC ......................... UK 971,000 1,550,571 1.0
REAL ESTATE INVESTMENT TRUST
Nichiei Co., Ltd. ......................................... JPN 10,400 1,107,739 0.7
OTHER FINANCIAL
Union Bank of Switzerland - Bearer ........................ SWTZ 588 850,237 0.6
BANKS-MONEY CENTER
United Overseas Bank Ltd. - Foreign ....................... SING 152,000 844,444 0.6
BANKS-MONEY CENTER
PSIL Bangkok Bank Co., Ltd. (Entitlement
Certificates){\/}{=} ..................................... THAI 249,000 458,160 0.3
OTHER FINANCIAL
Kookmin Bank .............................................. KOR 62,644 330,775 0.2
BANKS-MONEY CENTER
Abbey National PLC ........................................ UK 12,644 226,512 0.2
BANKS-SUPER REGIONAL
Kokusai Securities Co., Ltd. .............................. JPN 23,000 160,383 0.1
INVESTMENT MANAGEMENT
Bank Inicjatyw Gospodarczych BIG S.A. - GDR{\/} ........... POL 3,066 46,757 --
BANKS-REGIONAL
------------
40,713,208
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (23.2%)
Federated Department Stores, Inc.-/- ...................... US 82,200 $ 3,539,738 2.3
RETAILERS-APPAREL
Service Corporation International ......................... US 86,400 3,191,400 2.1
CONSUMER SERVICES
CVS Corp. ................................................. US 45,100 2,889,219 1.9
RETAILERS-OTHER
EMI Group PLC ............................................. UK 333,000 2,777,734 1.8
LEISURE & TOURISM
Woolworths Ltd. ........................................... AUSL 813,000 2,717,239 1.8
RETAILERS-OTHER
Telecom Corporation of New Zealand Ltd. - ADR{\/} ......... NZ 68,000 2,635,000 1.7
TELEPHONE NETWORKS
EMAP PLC .................................................. UK 158,000 2,354,433 1.6
BROADCASTING & PUBLISHING
Telecom Italia SpA ........................................ ITLY 308,900 1,977,100 1.3
TELEPHONE NETWORKS
Reuters Holdings PLC ...................................... UK 179,000 1,954,598 1.3
BROADCASTING & PUBLISHING
Telecomunicacoes Brasileiras S.A. (Telebras) - ADR{\/} .... BRZL 16,300 1,897,931 1.3
TELEPHONE NETWORKS
Koninklijke Ahold N.V. .................................... NETH 70,359 1,836,026 1.2
RETAILERS-FOOD
Telecel - Comunicacaoes Pessoais S.A.-/- .................. PORT 16,716 1,781,526 1.2
WIRELESS COMMUNICATIONS
SPT Telecom-/- ............................................ CZCH 15,100 1,616,328 1.1
TELEPHONE NETWORKS
Portugal Telecom S.A. - Registered ........................ PORT 33,450 1,552,516 1.0
TELEPHONE NETWORKS
Ezaki Glico Co., Ltd. ..................................... JPN 150,000 968,966 0.6
RETAILERS-FOOD
Vodafone Group PLC ........................................ UK 113,586 818,789 0.5
WIRELESS COMMUNICATIONS
Telstra Corp. Ltd.-/- ..................................... AUSL 333,100 703,136 0.5
TELEPHONE NETWORKS
------------
35,211,679
------------
Health Care (10.3%)
Bristol Myers Squibb Co. .................................. US 37,300 3,529,513 2.3
PHARMACEUTICALS
Warner-Lambert Co. ........................................ US 23,800 2,951,200 1.9
PHARMACEUTICALS
Roche Holding AG .......................................... SWTZ 239 2,373,473 1.6
PHARMACEUTICALS
Nycomed Amersham PLC ...................................... UK 55,400 2,057,714 1.4
PHARMACEUTICALS
Richter Gedeon Rt. - Reg S GDR{c} {\/} .................... HGRY 15,800 1,815,025 1.2
PHARMACEUTICALS
Schering AG ............................................... GER 16,580 1,599,461 1.1
PHARMACEUTICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Health Care (Continued)
Takeda Chemical Industries ................................ JPN 40,000 $ 1,140,230 0.8
PHARMACEUTICALS
M.L. Laboratories PLC-/- .................................. UK 1,091 1,478 --
PHARMACEUTICALS
------------
15,468,094
------------
Materials/Basic Industry (8.3%)
Monsanto Co. .............................................. US 67,900 2,851,800 1.9
CHEMICALS
Hercules, Inc. ............................................ US 54,000 2,703,375 1.8
CHEMICALS
Imperial Chemical Industries PLC - ADR{\/} ................ UK 35,300 2,292,294 1.5
CHEMICALS
Akzo Nobel N.V. ........................................... NETH 11,290 1,947,013 1.3
CHEMICALS
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 285,600 1,398,265 0.9
PAPER/PACKAGING
CRH PLC ................................................... UK 114,500 1,325,493 0.9
BUILDING MATERIALS & COMPONENTS
------------
12,518,240
------------
Energy (6.1%)
Petroleo Brasileiro S.A. (Petrobras) - ADR{\/} ............ BRZL 138,200 3,299,525 2.2
GAS PRODUCTION & DISTRIBUTION
Petroleum Geo-Services ASA-/- ............................. NOR 31,920 2,010,692 1.3
ENERGY EQUIPMENT & SERVICES
Shell Transport & Trading Co., PLC ........................ UK 265,000 1,914,614 1.3
OIL
Total S.A. "B" ............................................ FR 17,380 1,891,485 1.3
OIL
------------
9,116,316
------------
Technology (5.2%)
Compaq Computer Corp.-/- .................................. US 60,000 3,386,250 2.2
COMPUTERS & PERIPHERALS
Intel Corp. ............................................... US 44,500 3,126,125 2.1
SEMICONDUCTORS
Texas Instruments, Inc. ................................... US 31,144 1,401,480 0.9
SEMICONDUCTORS
------------
7,913,855
------------
Capital Goods (4.0%)
Textron, Inc. ............................................. US 43,800 2,737,500 1.8
AEROSPACE/DEFENSE
Alcatel Alsthom Compagnie Generale d'Electricite .......... FR 15,440 1,962,549 1.3
TELECOM EQUIPMENT
Canon, Inc. ............................................... JPN 60,000 1,397,701 0.9
OFFICE EQUIPMENT
------------
6,097,750
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables (3.5%)
Futuris Corp., Ltd. ....................................... AUSL 2,000,000 $ 2,189,068 1.4
AUTO PARTS
Ford Motor Co. ............................................ US 36,200 1,762,488 1.2
AUTOMOBILES
Bridgestone Corp. ......................................... JPN 65,000 1,409,579 0.9
AUTO PARTS
------------
5,361,135
------------
Consumer Non-Durables (3.4%)
RJR Nabisco Holdings Corp. ................................ US 73,300 2,748,750 1.8
TOBACCO
Asahi Breweries Ltd. ...................................... JPN 95,000 1,383,142 0.9
BEVERAGES - ALCOHOLIC
Amway Japan Ltd. .......................................... JPN 55,400 1,061,303 0.7
HOUSEHOLD PRODUCTS
------------
5,193,195
------------
Multi-Industry/Miscellaneous (1.2%)
Shanghai Industrial Holdings Ltd. ......................... HK 490,000 1,821,256 1.2
MULTI-INDUSTRY
------------ -----
TOTAL EQUITY INVESTMENTS (cost $124,048,794) ................ 139,414,728 92.1
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated December 31, 1997, with State Street Bank & Co., due
January 2, 1998, for an effective yield of 5.80%,
collateralized by $11,755,000 U.S. Treasury Notes, 5.75%
due 12/31/98 (market value of collateral is $11,766,026,
including accrued interest). (cost $11,535,000) .......... 11,535,000 7.6
------------ -----
TOTAL INVESTMENTS (cost $135,583,794) * .................... 150,949,728 99.7
Other Assets and Liabilities ................................ 457,079 0.3
------------ -----
NET ASSETS .................................................. $151,406,807 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
{=} Each share of Entitlement Certificates represents one local share
of PSIL Bangkok Bank Co., Ltd.
* For Federal income tax purposes, cost is $136,039,555 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 21,802,933
Unrealized depreciation: (6,892,760)
-------------
Net unrealized appreciation: $ 14,910,173
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1997
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 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) ................. 5.2 5.2
Brazil (BRZL/BRL) .................... 3.5 3.5
Czech Republic (CZCH/CSK) ............ 1.1 1.1
France (FR/FRF) ...................... 2.6 2.6
Germany (GER/DEM) .................... 1.1 1.1
Hong Kong (HK/HKD) ................... 2.9 2.9
Hungary (HGRY/HUF) ................... 1.2 1.2
India (IND/INR) ...................... 1.2 1.2
Italy (ITLY/ITL) ..................... 1.3 1.3
Japan (JPN/JPY) ...................... 5.6 5.6
Korea (KOR/KRW) ...................... 0.2 0.2
Mexico (MEX/MXN) ..................... 0.9 0.9
Netherlands (NETH/NLG) ............... 3.8 3.8
New Zealand (NZ/NZD) ................. 1.7 1.7
Norway (NOR/NOK) ..................... 1.3 1.3
Portugal (PORT/PTE) .................. 2.2 2.2
Singapore (SING/SGD) ................. 0.6 0.6
Sweden (SWDN/SEK) .................... 2.8 2.8
Switzerland (SWTZ/CHF) ............... 2.2 2.2
Thailand (THAI/THB) .................. 0.3 0.3
United Kingdom (UK/GBP) .............. 15.8 15.8
United States (US/USD) ............... 34.6 7.9 42.5
------ ----- -----
Total ............................... 92.1 7.9 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $151,406,807.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1997
<TABLE>
<CAPTION>
MARKET
VALUE
(U.S. CONTRACT DELIVERY APPRECIATION
CONTRACTS TO BUY: DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- ---------- --------- ------- -------------
<S> <C> <C> <C> <C>
Deutsche Marks.......................... 613,677 1.76130 2/27/98 $ (10,861)
---------- -------------
Total Contracts to Buy (Payable amount
$624,538)............................ 613,677 (10,861)
---------- -------------
THE VALUE OF CONTRACTS TO BUY AS
PERCENTAGE OF NET ASSETS IS 0.41%
<CAPTION>
CONTRACTS TO SELL:
- ----------------------------------------
<S> <C> <C> <C> <C>
British Pounds.......................... 1,476,511 0.61245 1/20/98 $ (6,991)
British Pounds.......................... 1,476,511 0.60002 1/20/98 23,429
Deutsche Marks.......................... 1,729,455 1.73540 2/27/98 56,876
French Francs........................... 2,830,938 5.72800 2/6/98 136,939
Japanese Yen............................ 2,310,962 118.82300 2/4/98 213,801
Japanese Yen............................ 4,318,711 122.20000 2/12/98 263,940
Swiss Francs............................ 1,174,569 1.42180 3/19/98 21,099
---------- -------------
Total Contracts to Sell (Receivable
amount $16,026,750).................. 15,317,657 709,093
---------- -------------
THE VALUE OF CONTRACTS TO SELL AS
PERCENTAGE OF NET ASSETS IS 10.12%
Total Open Forward Foreign Currency
Contracts, Net....................... $ 698,232
-------------
-------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $135,583,794) (Note 1).......................... $150,949,728
U.S. currency.................................................................. $ 48
Foreign currencies (cost $1,578,009)........................................... 1,536,226 1,536,274
---------
Receivable for Fund shares sold........................................................... 1,036,495
Receivable for open forward foreign currency contracts, net (Note 1)...................... 698,232
Dividends and dividend withholding tax reclaims receivable................................ 221,497
Receivable for securities sold............................................................ 194,078
Interest receivable....................................................................... 1,858
Miscellaneous receivable.................................................................. 646
-----------
Total assets............................................................................ 154,638,808
-----------
Liabilities:
Payable for Fund shares repurchased....................................................... 2,788,587
Payable for investment management and administration fees (Note 2)........................ 121,861
Payable for printing and postage expenses................................................. 96,022
Payable for transfer agent fees (Note 2).................................................. 89,810
Payable for service and distribution expenses (Note 2).................................... 67,726
Payable for professional fees............................................................. 37,204
Payable for custodian fees................................................................ 12,019
Payable for Trustees' fees and expenses (Note 2).......................................... 6,727
Payable for registration and filing fees.................................................. 5,626
Payable for fund accounting fees (Note 2)................................................. 1,924
Other accrued expenses.................................................................... 4,495
-----------
Total liabilities....................................................................... 3,232,001
-----------
Net assets.................................................................................. $151,406,807
-----------
-----------
Class A:
Net asset value and redemption price per share ($103,769,443 DIVIDED BY 7,275,753 shares
outstanding)............................................................................... $ 14.26
-----------
-----------
Maximum offering price per share (100/95.25 of $14.26) *.................................... $ 14.97
-----------
-----------
Class B:+
Net asset value and offering price per share ($45,009,871 DIVIDED BY 3,300,587 shares
outstanding)............................................................................... $ 13.64
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($2,627,493
DIVIDED BY 182,671 shares outstanding)..................................................... $ 14.38
-----------
-----------
Net assets consist of:
Paid in capital (Note 4).................................................................. $133,904,092
Undistributed net investment income....................................................... 95,296
Accumulated net realized gain on investments and foreign currency transactions............ 1,383,082
Net unrealized appreciation on translation of assets and liabilities in foreign
currencies............................................................................... 658,403
Net unrealized appreciation of investments................................................ 15,365,934
-----------
Total -- representing net assets applicable to capital shares outstanding................... $151,406,807
-----------
-----------
<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 WORLDWIDE GROWTH FUND
STATEMENT OF OPERATIONS
Year ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $275,397).............................. $ 2,764,013
Interest income........................................................................... 645,128
-----------
Total investment income................................................................. 3,409,141
-----------
Expenses:
Investment management and administration fees (Note 2).................................... 1,619,691
Service and distribution expenses: (Note 2)
Class A.................................................................... $ 400,318
Class B.................................................................... 496,417 896,735
-----------
Transfer agent fees (Note 2).............................................................. 455,298
Custodian fees............................................................................ 111,017
Printing and postage expenses (Note 2).................................................... 63,005
Registration and filing fees.............................................................. 53,920
Audit fees................................................................................ 47,254
Fund accounting fees...................................................................... 41,680
Legal fees................................................................................ 29,476
Trustees' fees and expenses (Note 2)...................................................... 13,218
Other expenses (Note 1)................................................................... 12,217
-----------
Total expenses before reductions........................................................ 3,343,511
-----------
Expense reductions (Notes 1 & 5)...................................................... (146,965)
-----------
Total net expenses...................................................................... 3,196,546
-----------
Net investment income....................................................................... 212,595
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized gain on investments............................................. 25,979,995
Net realized gain on foreign currency transactions........................... 2,164,063
-----------
Net realized gain during the year....................................................... 28,144,058
Net change in unrealized appreciation on translation of assets and
liabilities in foreign currencies........................................... 162,616
Net change in unrealized appreciation of investments......................... (11,824,112)
-----------
Net unrealized depreciation during the year............................................. (11,661,496)
-----------
Net realized and unrealized gain on investments and foreign currencies...................... 16,482,562
-----------
Net increase in net assets resulting from operations........................................ $16,695,157
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1997 1996
------------- -------------
Decrease in net assets
Operations:
Net investment income (loss)............................................. $ 212,595 $ (81,643)
Net realized gain on investments and foreign currency transactions....... 28,144,058 21,499,978
Net change in unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................ 162,616 111,081
Net change in unrealized appreciation (depreciation) of investments...... (11,824,112) (1,481,639)
------------- -------------
Net increase in net assets resulting from operations................... 16,695,157 20,047,777
------------- -------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income............................................... (109,138) --
From net realized gain on investments.................................... (22,666,381) (13,087,564)
Class B:
Distributions to shareholders: (Note 1)
From net realized gain on investments.................................... (10,444,406) (5,727,628)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income............................................... (8,161) --
From net realized gain on investments.................................... (358,231) (175,598)
------------- -------------
Total distributions.................................................... (33,586,317) (18,990,790)
------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested......................... 243,618,368 290,210,249
Decrease from capital shares repurchased................................. (256,140,244) (314,217,462)
------------- -------------
Net decrease from capital share transactions........................... (12,521,876) (24,007,213)
------------- -------------
Total decrease in net assets............................................... (29,413,036) (22,950,226)
Net assets:
Beginning of year........................................................ 180,819,843 203,770,069
------------- -------------
End of year *............................................................ $151,406,807 $180,819,843
------------- -------------
------------- -------------
* Includes undistributed net investment income of......................... $ 95,296 $ --
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
----------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1997 1996 (D) 1995 (D) 1994 1993 (D)
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.71 $ 16.82 $ 15.53 $ 17.47 $ 14.47
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss).......... 0.05 0.03 -- -- 0.04
Net realized and unrealized gain
(loss) on investments................ 1.55 1.79 1.74 (1.16) 3.92
---------- ---------- ---------- ---------- ----------
Net increase (decrease) from
investment operations.............. 1.60 1.82 1.74 (1.16) 3.96
---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income............ (0.02) -- -- -- --
From net realized gain on
investments.......................... (4.03) (1.93) (0.45) (0.78) (0.96)
---------- ---------- ---------- ---------- ----------
Total distributions................. (4.05) (1.93) (0.45) (0.78) (0.96)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period.......... $ 14.26 $ 16.71 $ 16.82 $ 15.53 $ 17.47
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total investment return (c)............. 10.00% 10.92% 11.23% (6.65)% 27.6%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 103,769 $ 125,556 $ 145,982 $ 182,467 $ 193,997
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Notes 1 &
5)................................... 0.32% 0.14% (0.06)% (0.01)% 0.9%
Without expense reductions............ 0.23% 0.06% (0.12)% (0.04)% N/A
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.73% 1.72% 1.87% 1.81% 1.9%
Without expense reductions............ 1.82% 1.80% 1.93% 1.84% N/A
Portfolio turnover rate++++............. 92% 80% 113% 86% 92%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0288 $ 0.0263 N/A N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon average
shares outstanding during the year.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++
-------------------------------------------------------------
APRIL 1, 1993
YEAR ENDED DECEMBER 31, TO
---------------------------------------------- DECEMBER 31,
1997 1996 (D) 1995 (D) 1994 1993 (D)
---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.23 $ 16.50 $ 15.34 $ 17.39 $ 15.67
---------- ---------- ---------- ---------- -------------
Income from investment operations:
Net investment income (loss).......... (0.05) (0.09) (0.12) (0.11) (0.04)
Net realized and unrealized gain
(loss) on investments................ 1.49 1.75 1.73 (1.16) 2.72
---------- ---------- ---------- ---------- -------------
Net increase (decrease) from
investment operations.............. 1.44 1.66 1.61 (1.27) 2.68
---------- ---------- ---------- ---------- -------------
Distributions to shareholders:
From net investment income............ -- -- -- -- --
From net realized gain on
investments.......................... (4.03) (1.93) (0.45) (0.78) (0.96)
---------- ---------- ---------- ---------- -------------
Total distributions................. (4.03) (1.93) (0.45) (0.78) (0.96)
---------- ---------- ---------- ---------- -------------
Net asset value, end of period.......... $ 13.64 $ 16.23 $ 16.50 $ 15.34 $ 17.39
---------- ---------- ---------- ---------- -------------
---------- ---------- ---------- ---------- -------------
Total investment return (c)............. 9.22% 10.16% 10.52% (7.32)% 17.3%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 45,010 $ 52,809 $ 56,095 $ 52,567 $ 20,592
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Notes 1 &
5)................................... (0.33)% (0.51)% (0.71)% (0.66)% (0.4)%(a)
Without expense reductions............ (0.42)% (0.59)% (0.77)% (0.69)% N/A
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.38% 2.37% 2.52% 2.46% 2.5%(a)
Without expense reductions............ 2.47% 2.45% 2.58% 2.49% N/A
Portfolio turnover rate++++............. 92% 80% 113% 86% 92%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0288 $ 0.0263 N/A N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon average
shares outstanding during the year.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR CLASS+++
-------------------------------------------
JUNE 1, 1995
YEAR ENDED DECEMBER 31, TO
---------------------------- DECEMBER 31,
1997 1996 (D) 1995 (D)
------------- ------------- -------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.81 $ 16.86 $ 15.26
------------- ------------- -------------
Income from investment operations:
Net investment income (loss).......... 0.12 0.09 0.03
Net realized and unrealized gain
(loss) on investments................ 1.57 1.79 2.02
------------- ------------- -------------
Net increase (decrease) from
investment operations.............. 1.69 1.88 2.05
------------- ------------- -------------
Distributions to shareholders:
From net investment income............ (0.09) -- --
From net realized gain on
investments.......................... (4.03) (1.93) (0.45)
------------- ------------- -------------
Total distributions................. (4.12) (1.93) (0.45)
------------- ------------- -------------
Net asset value, end of period.......... $ 14.38 $ 16.81 $ 16.86
------------- ------------- -------------
------------- ------------- -------------
Total investment return (c)............. 10.43% 11.31% 13.46%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 2,627 $ 2,455 $ 1,693
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Notes 1 &
5)................................... 0.67% 0.49% 0.29%(a)
Without expense reductions............ 0.58% 0.41% 0.23%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.38% 1.37% 1.52%(a)
Without expense reductions............ 1.47% 1.45% 1.58%(a)
Portfolio turnover rate++++............. 92% 80% 113%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0288 $ 0.0263 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
(d) These selected per share data were calculated based upon average
shares outstanding during the year.
+ All capital shares issued and outstanding as of March 31, 1993, were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
December 31, 1997
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Worldwide Growth Fund ("Fund"), is a separate series of GT Global
Growth Series ("Company"). The Company is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended
("1940 Act"), as 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 preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Funds in the preparation of the
financial statements.
(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
F13
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
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 counter
party 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.
(E) OPTION ACCOUNTING PRINCIPLES
When the Fund writes a call or put option, an amount equal to the premium
received is included in the Fund's "Statement of Assets and Liabilities" as an
asset and an equivalent liability. The amount of the liability is subsequently
market-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of on over-the-counter option, is valued at the average
of the last bid prices obtained from brokers, unless a quotation from only one
broker is available, in which case only that broker's price will be used. If an
option expires on its stipulated expiration date or if the Fund enters into a
closing purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. The Fund can write options only on
a covered basis, which, for a call, requires that the Fund hold the underlying
security, and, for a put, requires the Fund to set aside cash, U.S. government
securities or other liquid securities in an amount not less than the exercise
price or otherwise provide adequate cover at all times while the put option is
outstanding. The Fund may use options to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other then normal settlement terms. This may increase the risk if
the other party to the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At December 31, 1997, stocks with an aggregate value of approximately
$12,659,388 were on loan to brokers. The loans were secured by cash collateral
of $13,106,152, received by the Fund. Cash collateral is received by the Fund
against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For the year ended December 31, 1997,
the Fund received securities lending fees of $137,889 which 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.
F14
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
(J) DISTRIBUTION TO SHAREHOLDERS
Distribution to shareholders are recorded by the Fund on the ex-date. Income and
capital gain distributions are determined in accordance with Federal income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments in emerging market
countries may involve greater risks than investments in more developed markets,
and the prices of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(L) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed 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 ("GT Funds") advised and/or
administered by the Manager, has a line of credit with the BankBoston and State
Street Bank & Trust Company. The arrangements with the banks allow the Fund and
GT Funds to borrow an aggregate maximum amount of $250,000,000. The Fund is
limited to borrowing up to 33 1/3% of the value of the Fund's total assets.
For the year ended December 31, 1997, the weighted average outstanding daily
balance of bank loans (based on the number of days the loans were outstanding)
was $2,000,000 with a weighted average interest rate of 6.44%. Interest expense
for the year ended December 31, 1997 was $1,431, 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. ("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 year ended December 31, 1997, GT Global retained $8,456
of such sales charges. Purchases of Class A shares exceeding $500,000 may be
subject to a contingent deferred sales charge ("CDSC") upon redemption, in
accordance with the Fund's current prospectus. GT Global collected CDSCs in the
amount of $3,645 for the year ended December 31, 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 year ended December 31, 1997, GT Global collected CDSC's
in the amount of $272,024. 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.
F15
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
The Manager and GT Global have voluntarily undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest and extraordinary
items) to the maximum annual level of 2.25%, 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.
Effective January 1, 1998, the Manager and GT Global have undertaken to limit
the Fund's Expenses (exclusive of brokerage commissions, taxes, interest, and
extraordinary expenses) to the annual rate of 2.00%, 2.65%, and 1.65% of the
average daily net assets of the Fund's Class A, Class B, and Advisor Class
shares, respectively. This undertaking may be changed or eliminated in the
future.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and GT Global, is the transfer agent of the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT Services receives
an annual maintenance fee of $17.50 per account, a new account fee of $4.00 per
account, a per transaction fee of $1.75 for all transactions other than
exchanges and a per exchange fee of $2.25. GT Services also is reimbursed by the
Fund for its out-of-pocket expenses for such items as postage, forms, telephone
charges, stationery and office supplies.
The Manager is the pricing and accounting agent for the Fund. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of the Fund's average daily net assets. The annual fee rate is derived by
applying 0.03% to the first $5 billion of assets of all registered mutual funds
advised by the Manager and 0.02% to the assets in excess of $5 billion and
allocating the result according to the Fund's average daily net assets.
The Company pays each of its Trustees who is not an employee, officer or
director of GT Capital, GT Global or GT Services $5,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Trustee.
3. PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 1997, purchases and sales of investment
securities by the Fund, other than U.S. government obligations and short-term
investments, aggregated $138,743,808 and $176,373,627, respectively. There were
no purchases or sales of U.S. government obligations by the Fund during the
year.
4. CAPITAL SHARES
At December 31, 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>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
------------------------ ------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold...................................................... 9,536,130 $163,326,296 14,357,786 $250,471,583
Shares issued in connection with reinvestment of distributions... 1,372,411 19,227,529 670,053 11,082,654
---------- ------------ ---------- ------------
10,908,541 182,553,825 15,027,839 261,554,237
Shares repurchased............................................... (11,147,719) (193,303,890) (16,192,391) (283,412,820)
---------- ------------ ---------- ------------
Net decrease..................................................... (239,178) $(10,750,065) (1,164,552) $(21,858,583)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
------------------------ ------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------- ---------- ------------ ---------- ------------
Shares sold...................................................... 1,034,341 $ 17,020,574 854,412 $ 14,531,361
Shares issued in connection with reinvestment of distributions... 688,809 9,238,884 308,538 4,961,416
---------- ------------ ---------- ------------
1,723,150 26,259,458 1,162,950 19,492,777
Shares repurchased............................................... (1,675,941) (28,047,548) (1,309,880) (22,330,821)
---------- ------------ ---------- ------------
Net increase (decrease).......................................... 47,209 $ (1,788,090) (146,930) $ (2,838,044)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
YEAR ENDED YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
------------------------ ------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------- ---------- ------------ ---------- ------------
Shares sold...................................................... 1,924,783 $ 34,438,694 521,049 $ 8,987,637
Shares issued in connection with reinvestment of distributions... 25,931 366,391 10,546 175,598
---------- ------------ ---------- ------------
1,950,714 34,805,085 531,595 9,163,235
Shares repurchased............................................... (1,914,043) (34,788,806) (485,979) (8,473,821)
---------- ------------ ---------- ------------
Net increase..................................................... 36,671 $ 16,279 45,616 $ 689,414
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
F16
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the year ended December 31, 1997, the Fund's
expenses were reduced by $9,076 under these arrangements.
6. SUBSEQUENT EVENT
On January 30, 1998, Liechtenstein Global Trust ("LGT") and AMVESCAP PLC
("AMVESCAP") entered into an agreement by which AMVESCAP will acquire LGT's
Asset Management Division, including Chancellor LGT Asset Management, Inc.
AMVESCAP is the holding company of the AIM and INVESCO asset management
businesses.
- --------------
FEDERAL TAX INFORMATION (UNAUDITED):
For its fiscal year ended December 31, 1997, the total amount of income received
by the Fund from sources within foreign countries and possessions of the United
States was approximately $.2723 per share (representing an approximate total of
$2,266,869). The total amount of taxes paid by the Fund to such countries was
approximately $.0331 per share (representing an approximate total of $275,397).
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$22,856,473 as a capital gain dividend for the fiscal year ended December 31,
1997.
Pursuant to Section 854 of the Internal Revenue Code, the Fund designates 5.14%
of ordinary income dividends paid (including short-term capital gain
distributions, if any) by the Fund as income qualifying for the dividends
received deduction for corporations for the fiscal year ended December 31, 1997.
F17
<PAGE>
GT GLOBAL WORLDWIDE GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL WORLDWIDE 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 NEW DIMENSION FUND
Captures global growth opportunities by investing directly in the six GT Global
Theme 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
GT GLOBAL DEVELOPING MARKETS FUND
Invests in debt and equity securities of developing market issuers
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Focuses on worldwide opportunities from the demand for consumer products and
services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
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 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
Focuses on equity securities of U.S. companies believed to be undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government securities
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, INC.
Invests primarily in senior secured floating rate loans with 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 Worldwide Growth Fund
WORAR802021M
