<PAGE>
GT GLOBAL
OVER 25 YEARS
OF INVESTING
WORLDWIDE
/ /
GT GLOBAL
EUROPE
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 Mutual Funds
1
<PAGE>
[GRAPHIC]
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The GT Global Europe Growth Fund seeks long-term capital growth by investing
primarily in the equity securities of issuers from European countries. Over the
long term, we tend to favor growth-oriented companies increasing their share of
market capitalization.
GT GLOBAL EUROPE GROWTH FUND
PERFORMANCE SUMMARY
[Edgar representation of graph]
GT Global Europe Growth Fund MSCI Europe Index
7/19/08 9525 10000
9535 10191
9563 10717
10068 10897
10954 12111
11763 13063
12992 13637
12897 13902
13907 15559
15059 16837
16116 18408
14621 16786
15288 17524
15859 17380
17278 19328
16659 18110
16678 18227
17831 19210
18317 19700
19421 20577
20498 21319
21210 22379
22050 23263
22373 23141
22778 23809
24175 24617
25187 24829
26077 24999
19560 20254
18643 19371
19523 20507
18945 19674
19775 20840
19913 21422
20077 21829
19737 21430
20139 21222
19901 21278
19285 20320
20224 21433
21437 23428
21315 23725
21692 23860
22962 24734
22655 24462
23199 24648
24426 25341
24161 24052
24984 25053
26742 28012
27342 27671
28374 28156
26226 26320
27956 27792
30522 30793
30355 30722
29853 29997
31164 30432
30271 29636
31555 32061
32392 33200
33815 34612
29490 31192
25668 27532
27035 29866
26505 30179
26031 29756
26533 30771
2/28/91 28542 33477
27760 31245
27286 30929
27732 31854
26282 29191
27230 31226
27230 31808
27147 32774
26114 32098
25110 31357
27157 33821
27044 33824
27242 33969
26647 32793
27695 34615
28601 36599
27723 35931
26506 34662
26279 34564
24410 34008
23079 31648
23759 31646
24099 32385
24127 32452
24495 32836
25373 34537
26109 35312
26534 35704
26647 35194
27355 35326
29592 38437
28459 38330
29592 39938
28771 39088
30923 42034
33062 44186
31465 42633
30010 41439
31151 43168
29496 41345
28983 40925
30837 43083
31322 44463
29867 42714
30723 44589
29325 42895
29129 43153
28432 42830
28490 43815
27851 45865
29100 47349
29738 48335
30261 48808
31975 51370
31103 49401
32149 50911
31800 50689
31626 51067
31999 52703
32117 53064
33441 54049
34470 54714
34911 55129
35911 55573
36529 56204
34294 55520
35499 57187
36146 58409
36411 59785
37764 62834
38274 64070
38511 64262
39105 65130
39818 67253
38719 66938
39966 69816
41926 73328
42460 76783
39729 72414
43440 79456
41451 75570
41599 76749
12/31/97 42559 79574
The chart above shows performance of GT Global Europe Growth Fund Class A shares
since the Fund's inception, versus the MSCI Europe Index. This represents a
cumulative return of 325.59% and an average annual total return of 12.33% 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 $15,977 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 $14,460 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) 11.20 12.05 8.10 12.77 5.92 10.96 7.58 12.33
CLASS B(3) 10.55 N/A N/A 10.66 5.55 N/A N/A 10.37
ADVISOR CLASS(4) 11.64 N/A N/A 15.33 N/A N/A N/A N/A
HISTORICAL PERFORMANCE(2)
ANNUAL TOTAL RETURNS % (LAST 10 YEARS)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
CLASS A 11.11 40.71 -14.72 4.33 -11.26 28.32 -5.80 9.86 19.61 11.20
CLASS B N/A N/A N/A N/A N/A 20.50(3) -6.38 9.20 18.79 10.55
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gains
distributions at net asset value.
(2) 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 (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. 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 THE MANAGEMENT TEAM
Q HOW DID THE FUND PERFORM?
A Overall, European markets enjoyed a strong year, although returns over the
second half of the year were considerably more mixed. Against this backdrop, the
Fund returned a total of 11.20% for Class A shares (5.92% including the maximum
4.75% sales charge) over the 12-month period to December 31, 1997; total return
for Class B shares over the same period was 10.55% (5.55% including the 5%
maximum contingent deferred sales charge). The Morgan Stanley Capital
International (MSCI) Europe Index(5) returned 24.20% over the same period.
During the course of 1997, a "nifty 10" phenomena was apparent in European
markets, where the stocks of the 10 largest companies contributed to a majority
of the markets' positive performance. And, as overall market performance was
generally driven by large index constituents, the Fund's bias toward mid-cap
growth companies caused it to underperform its benchmark.
In terms of stocks, Gucci was a major underperformer for the Fund due to
concerns about the impact of a weak yen on Japanese spending and resulting
effects on demand for Gucci's luxury products. We believe, however, that
long-term prospects for the company, which has retained a high level of
profitability and is still growing its brand globally, continue to be sound.
Other disappointments included Castorama, the do-it-yourself home repair tools,
materials and equipment chain, and Premier Farnell,(6) the electrical
distributor. Both were negatively impacted by weak European growth.
On the other hand, several companies we noted in the semiannual report as
examples of holdings we found attractive did indeed perform well, including
Alcatel, France's dominant supplier of telecommunications equipment, and Akzo
Nobel, the Dutch chemicals and pharmaceuticals company. Both were beneficiaries
of restructuring activities. Additionally, Dassault Systems,6 a European global
leader in the software niche of CAD (computer-aided design) software performed
well, thanks to strong revenue growth and its strategic acquisitions of smaller
U.S. software companies.
Q WHAT ARE YOU DOING TO SEEK BETTER FUND PERFORMANCE IN THE FUTURE?
A The Fund has reduced its exposure to small and medium-sized companies as we
forecast large cap outperformance to continue. Currently, we hold only one
company with a market capitalization below $1billion-Genset. We believe this
leading DNA technology company has significant growth prospects as a value-added
service provider to the pharmaceutical industry. We are also currently invested
in stocks of medium-sized companies whose market positioning and valuations we
find more attractive relative to global peers. This is also the case for our
holdings in oil services companies such as PGS, a world leader in marine seismic
survey data, and Coflexip, a world leader in flexible pipes for deep water
exploration. We believe this selective approach to investing in mid cap
companies can potentially enhance performance of the Fund.
Q WHAT IMPACT HAS THE DOWNTURN IN ASIA HAD ON EUROPEAN MARKETS?
A Europe has relatively little exposure to Asian growth and, therefore, the
impact of the Asian crisis on absolute returns for equity markets has been
minimal, although the crisis did cause price volatility. Exceptions included the
markets of Sweden and Finland, which are largely correlated with the movements
of their telecommunications sectors. We maintain, however, that mobile equipment
companies have been unfairly hit by concerns of slowing Asian demand and view
this, instead, as an opportunity. We have used weakness in stock prices to buy
Nokia, the leading mobile equipment company, which we believe should report
strong earnings progress for the foreseeable future as mobile penetration rates
rise in most countries.
Implications of slower growth in Asia may also be felt through weaker commodity
prices and we have avoided companies (steel and paper, for example) exhibiting
what we feel is considerable earnings risk.
CONTINUED P.4
(5) The MSCI Europe Index is an arithmetic average, weighted by market value,
of the performance of 566 securities listed on 14 major European stock
exchanges. It includes the effect of reinvested dividends and is measured
in U.S. dollars.
(6) Premier Farnell, Castorama and Dassault Systems were sold prior to
December 31, 1997.
The index is unmanaged, not available for direct investment and does not include
the effects of sales charges and professional management fees.
3
<PAGE>
INTERVIEW WITH THE MANAGEMENT TEAM - CONTINUED
Q WHAT IMPLICATIONS DO YOU SEE FOR EUROPEAN MONETARY UNION IN 1998?
A We believe monetary union is likely to go forward in May 1998. This
possibility was priced into bond and equity markets in 1997, as yields in
peripheral countries such as Spain have converged with German levels. If
monetary union is delayed or canceled, the impact could be negative for Spain
and Italy, where bond yields would rise sharply.
However, in this event, we believe the Fund currently is well positioned
relative to the European market. The Fund currently has no exposure to Spanish
equities and is overweighted in Switzerland and the Netherlands, which we think
could be relative winners. The Fund also has substantial exposure to the UK
equity market, which we feel offers good value and is home to some excellent
financial services and health care companies.
Q WHAT TYPES OF COMPANIES DO YOU BELIEVE WILL PERFORM WELL IN THE YEAR AHEAD?
A We expect further progress in equity markets to be driven by corporate
earnings growth. We therefore favor companies with visible and improving
earnings growth, such as the Swiss drug company Roche, and the Swiss food and
drinks company Nestle. In fact, Nestle is among a select group of stable growth
companies we believe still have capacity to rerate.
Q COULD YOU DESCRIBE YOUR INVESTMENT STRATEGY?
A The Fund is currently concentrated in a number of companies we believe offer
visible and superior growth rates relative to the market. In general, we seek to
invest in sectors likely to undergo consolidation and experience improving
profitability, such as health care, banking and consumer products companies. We
also favor segments benefiting from a prolonged investment cycle and those
expected to grow strongly over the next three years, such as oil services
companies.
On the other hand, we continue to avoid sectors likely to suffer persistent
price deflation, such as commodities and capital goods.
Going forward, as valuations become compelling relative to developed markets, we
intend to invest in new markets in eastern and southern Europe. Portugal, for
instance, is a market we have found attractive and has been a profitable area of
investment for the Fund over the last 12 months.
Q WHAT IS YOUR OUTLOOK OVER THE LONGER TERM?
A We feel the Fund is well positioned to take advantage of opportunities in the
European marketplace over the coming year. 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.
We believe consolidation and restructuring will continue to be key themes for
Europe. Europe is still a very fragmented marketplace, with few companies
ranking highly within their global industries. Already in the past year, we
witnessed a considerable pickup in merger and acquisition activity.
Two of three large Swiss banks, for example combined to form United Bank of
Switzerland (UBS), now the largest global asset manager and the leading European
investment bank. Where costs overlap and the potential to strengthen competitive
positions exists, we believe these deals stand to enhance returns to
shareholders. The Fund is currently invested in Swiss Bank Corp., and we
estimate that over 20% cost savings are likely to be achieved as a result of its
consolidation with UBS.
Industries still exist that yield very low returns in Europe compared to their
U.S. peers, specifically banks, food and drinks producers and insurers. We
CONTINUED P.5
GEOGRAPHIC ALLOCATION OF NET ASSETS %
DECEMBER 31, 1997
Austria 0.3
Denmark 2.0
Finland 6.1
France 14.4
Germany 3.5
Italy 5.3
Netherlands 16.7
Norway 3.2
Portugal 2.2
Sweden 7.2
Switzerland 14.1
United Kingdom 21.8
U.S., Short Term & Other 3.2
4
<PAGE>
INTERVIEW WITH THE MANAGEMENT TEAM - CONTINUED
find many of these companies attractive because they tend to have managements
committed to improving returns with few structural impediments. Toward the end
of the reporting period we purchased BNP, the French retail and corporate
banking group, which has low but improving profitability. French bank valuations
are at low levels, reflecting historically low levels of profitability. The
entire French-quoted banking sector is only valued at 1.0% of the MSCI Europe
Index, which compares to 1.5% for Lloyds TSB, the most profitable retail
franchise in the UK market. Overall, we believe European markets will continue
to provide attractive returns over the next year, boosted by consolidation and
increasing emphasis on the creation of shareholder value.
SECTOR ALLOCATION OF NET ASSETS %
DECEMBER 31, 1997
Finance 29.2
Energy 14.3
Services 14.0
Health Care 10.6
Technology 7.6
Consumer Non-Durables 7.2
Capital Goods 7.1
Materials/Basic Industry 6.0
Short Term & Other 4.0
A complete listing of holdings and allocations may be found in the Financial
Statements section of this report.
TOTAL EUROPEAN MERGER & ACQUISITION VOLUME
1988 - 1997
[Edgar representation of graph]
1988 152
1989 211
1990 235
1991 182
1992 168
1993 169
1994 150
1995 279
1996 325
1997 508
WE BELIEVE CORPORATE MERGER AND ACQUISITION (M&A) ACTIVITY WILL BE ONE OF THE
MAIN DRIVERS OF IMPROVED CORPORATE PROFITABILITY IN EUROPE. THE VOLUME OF M&A
ACTIVITY REACHED NEW LEVELS IN 1997 AND WE BELIEVE IT WILL CONTINUE.
Source: JP Morgan, February 1998
5
<PAGE>
GT Global Europe Growth Fund
KEY PORTFOLIO HOLDINGS(7)
<TABLE>
<CAPTION>
% of
Country Net Assets
------- ----------
<S> <C> <C>
CIBA SPECIALTY CHEMICALS AG The company develops, manufactures and markets Switzerland 4.0
chemical products for plastics, coatings, fibers, fabrics and other materials.
Such products include additives for plastics, brighteners for detergents,
polymers for adhesives and dyes for textiles.
ING GROEP N.V. This international financial service group of companies offers a Netherlands 3.9
wide range of financial services to individuals, corporations and other
institutions. The company's services include commercial, savings and investment
banking, as well as life, property and commercial insurance.
NOKIA Develops and manufactures mobile phones, networks and systems for Finland 3.8
cellular and fixed networks. Nokia also develops and supplies access networks,
multimedia equipment and other telecom related products. The Company operates
in 45 countries and sells its products worldwide.
FORENINGSSPARBANKEN The Company consists of a group of local savings banks Sweden 3.4
located throughout Sweden. The Bank provides services to private customers,
farmers, small and medium size companies, communities and organizations as well
as to a limited number of large corporations.
VNU(VERENIGDE NEDERLANDSE UITGEVERSBEDRIJVEN VERENIGD An international company Netherlands 3.3
that publishes materials of consumer and professional information. The Company
publishes and distributes consumer and professional magazines, regional
newspapers, trade magazines and educational textbooks. VNU operates commercial
broadcasting in The Netherlands and Belgium.
ALCATEL ALSTHOM COMPAGNIE GENERALE D' ELECTRICITE Develops, produces and France 3.3
distributes telecommunication equipment and systems for public network, business
and residential applications.
ROCHE HOLDING AG Develops and manufactures pharmaceutical and chemical Switzerland 3.2
products. Roche distributes its products throughout Europe, the United States,
Asia and Latin America.
BAAN COMPANY N.V. Provides business management software. Baan's software is an Netherlands 3.2
open system which can be reconfigured in response to changes in production and
operational processes.
TELECOM ITALIA SPA The financial parent company for companies operating in the Italy 3.2
field of telecommunications, manufacturing, electronics and network
construction. The company's subsidiaries are also active in publishing,
telematics information services and auxiliary services.
PETROLEUM GEO-SERVICES ASA An oilfield service company. Petroleum operates Norway 3.2
worldwide and has two headquarters, one in Texas and one in Norway.
</TABLE>
Source: Bloomberg, January, 1998.
(7) There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
6
<PAGE>
GT GLOBAL
EUROPE
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL EUROPE 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 Europe 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 the 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 estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of GT
Global Europe 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 EUROPE 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 (29.2%)
ING Groep N.V. ............................................ NETH 449,610 $ 18,940,753 3.9
OTHER FINANCIAL
ForeningsSparbanken AB .................................... SWDN 732,160 16,649,643 3.4
BANKS-REGIONAL
Schweizerischer Bankverein (Swiss Bank Corp.) ............. SWTZ 44,940 13,968,753 2.8
BANKS-MONEY CENTER
General Accident PLC ...................................... UK 729,800 12,642,677 2.6
INSURANCE - PROPERTY-CASUALTY
Axa - UAP ................................................. FR 161,800 12,519,774 2.6
INSURANCE - MULTI-LINE
Lloyds TSB Group PLC ...................................... UK 949,000 12,263,760 2.5
BANKS-REGIONAL
National Westminster Bank PLC ............................. UK 658,000 10,934,253 2.2
BANKS-MONEY CENTER
Banque Nationale de Paris ................................. FR 203,000 10,790,014 2.2
BANKS-MONEY CENTER
Unidanmark AS "A" ......................................... DEN 136,300 10,007,284 2.0
BANKS-REGIONAL
Svenska Handelsbanken, Inc. "A" Free ...................... SWDN 288,900 9,991,061 2.0
BANKS-MONEY CENTER
Nordbanken Holding AB ..................................... SWDN 1,344,033 7,602,878 1.5
OTHER FINANCIAL
Abbey National PLC ........................................ UK 419,253 7,510,756 1.5
BANKS-SUPER REGIONAL
------------
143,821,606
------------
Energy (14.3%)
Petroleum Geo-Services ASA-/- ............................. NOR 249,800 15,735,300 3.2
ENERGY EQUIPMENT & SERVICES
Total S.A. "B" ............................................ FR 118,000 12,842,070 2.6
OIL
Shell Transport & Trading Co., PLC ........................ UK 1,534,000 11,083,087 2.3
OIL
Viag AG ................................................... GER 19,990 10,770,259 2.2
ELECTRICAL & GAS UTILITIES
Ente Nazionale Idrocarburi (ENI) S.p.A. ................... ITLY 1,790,700 10,231,703 2.1
OIL
Coflexip - ADR{\/} ........................................ FR 171,610 9,524,355 1.9
ENERGY EQUIPMENT & SERVICES
------------
70,186,774
------------
Services (14.0%)
VNU (Verenigde Nederlandse Uitgeversbedrijven Verenigd
Bezit) ................................................... NETH 573,300 16,176,381 3.3
BROADCASTING & PUBLISHING
Telecom Italia SpA ........................................ ITLY 2,465,000 15,777,115 3.2
TELEPHONE NETWORKS
Vodafone Group PLC ........................................ UK 1,650,000 11,894,089 2.4
WIRELESS COMMUNICATIONS
Telecel - Comunicacaoes Pessoais S.A.-/- .................. PORT 103,383 11,018,156 2.2
WIRELESS COMMUNICATIONS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL EUROPE 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 (Continued)
Koninklijke Ahold N.V. .................................... NETH 386,359 $ 10,082,079 2.1
RETAILERS-FOOD
Kuoni Reisen Holdings "B" - Registered .................... SWTZ 1,061 3,977,116 0.8
LEISURE & TOURISM
------------
68,924,936
------------
Health Care (10.6%)
Roche Holding AG .......................................... SWTZ 1,600 15,889,361 3.2
PHARMACEUTICALS
Nycomed Amersham PLC ...................................... UK 253,300 9,408,286 1.9
PHARMACEUTICALS
Genset: ................................................... FR -- -- 1.8
BIOTECHNOLOGY
ADR-/- {\/} ............................................. -- 393,667 7,774,923 --
Common-/- ............................................... -- 14,900 891,252 --
Glaxo Wellcome PLC ........................................ UK 363,639 8,598,361 1.8
PHARMACEUTICALS
Schering AG ............................................... GER 63,630 6,138,340 1.3
PHARMACEUTICALS
Incentive AB "A" .......................................... SWDN 15,760 1,419,659 0.3
MEDICAL TECHNOLOGY & SUPPLIES
Nearmedic Ltd.-/- ......................................... ASTRI 618,200 1,272,722 0.3
PHARMACEUTICALS
M.L. Laboratories PLC-/- .................................. UK 141,507 191,697 --
PHARMACEUTICALS
------------
51,584,601
------------
Technology (7.6%)
Baan Company N.V.-/- {\/} ................................. NETH 478,400 15,787,200 3.2
SOFTWARE
TT Tieto Oy "B" ........................................... FIN 101,828 11,460,254 2.3
COMPUTERS & PERIPHERALS
Misys PLC ................................................. UK 337,828 10,151,482 2.1
SOFTWARE
------------
37,398,936
------------
Consumer Non-Durables (7.2%)
Cadbury Schweppes PLC ..................................... UK 1,236,700 12,458,382 2.5
BEVERAGES - NON-ALCOHOLIC
Nestle S.A. - Registered .................................. SWTZ 8,100 12,139,463 2.5
FOOD
Gucci Group - NY Registered Shares{\/} .................... NETH 260,550 10,910,531 2.2
TEXTILES & APPAREL
------------
35,508,376
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL EUROPE 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>
Capital Goods (7.1%)
Nokia AB "A" .............................................. FIN 269,400 $ 18,844,695 3.8
TELECOM EQUIPMENT
Alcatel Alsthom Compagnie Generale d'Electricite .......... FR 127,200 16,168,148 3.3
TELECOM EQUIPMENT
------------
35,012,843
------------
Materials/Basic Industry (6.0%)
Ciba Specialty Chemicals AG-/- ............................ SWTZ 166,000 19,775,431 4.0
CHEMICALS
Akzo Nobel N.V. ........................................... NETH 55,500 9,571,231 2.0
CHEMICALS
------------
29,346,662
------------ -----
TOTAL EQUITY INVESTMENTS (cost $412,654,262) ................ 471,784,734 96.0
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Union Bank of Switzerland Roche Warrants "C", expire 7/98
(cost $3,431,328) ........................................ SWTZ 481,700 3,644,246 0.8
------------ -----
PHARMACEUTICALS
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated December 31, 1997, with State Street Bank & Trust
Co., due January 2, 1998, for an effective yield of 5.80%,
collateralized by $15,920,000 U.S. Treasury Notes, 5.75%
due 12/31/98 (market value of collateral is $15,934,933,
including accrued interest). (cost $15,622,000) .......... 15,622,000 3.2
------------ -----
TOTAL INVESTMENTS (cost $431,707,590) * .................... 491,050,980 100.0
Other Assets and Liabilities ................................ 202,831 --
------------ -----
NET ASSETS .................................................. $491,253,811 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{\/} U.S. currency denominated.
-/- Non-income producing security.
* For Federal income tax purposes, cost is $431,707,590 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 65,811,221
Unrealized depreciation: (6,467,831)
-------------
Net unrealized appreciation: $ 59,343,390
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL EUROPE 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 WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Austria (ASTRI/ATS) .................. 0.3 0.3
Denmark (DEN/DKK) .................... 2.0 2.0
Finland (FIN/FIM) .................... 6.1 6.1
France (FR/FRF) ...................... 14.4 14.4
Germany (GER/DEM) .................... 3.5 3.5
Italy (ITLY/ITL) ..................... 5.3 5.3
Netherlands (NETH/NLG) ............... 16.7 16.7
Norway (NOR/NOK) ..................... 3.2 3.2
Portugal (PORT/PTE) .................. 2.2 2.2
Sweden (SWDN/SEK) .................... 7.2 7.2
Switzerland (SWTZ/CHF) ............... 13.3 0.8 14.1
United Kingdom (UK/GBP) .............. 21.8 21.8
United States (US/USD) ............... 3.2 3.2
------ ----- ----- -----
Total ............................... 96.0 0.8 3.2 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $491,253,811.
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL EUROPE GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $431,707,590) (Note 1).......................... $491,050,980
U.S. currency................................................................. $ 317
Foreign currencies (cost $18,334,892)......................................... 18,199,857 18,200,174
----------
Receivable for securities sold............................................................ 19,572,716
Receivable for Fund shares sold........................................................... 1,953,987
Dividends and dividend withholding tax reclaims receivable................................ 186,252
Interest receivable....................................................................... 2,517
-----------
Total assets............................................................................ 530,966,626
-----------
Liabilities:
Payable for Fund shares repurchased....................................................... 33,388,567
Payable for securities purchased.......................................................... 5,169,750
Payable for investment management and administration fees (Note 2)........................ 415,152
Payable for transfer agent fees (Note 2).................................................. 256,798
Payable for service and distribution expenses (Note 2).................................... 195,095
Payable for printing and postage expenses................................................. 113,320
Payable for custodian fees................................................................ 26,846
Payable for registration and filing fees.................................................. 17,663
Payable for professional fees............................................................. 17,272
Payable for fund accounting fees (Note 2)................................................. 10,165
Payable for Trustees' fees and expenses (Note 2).......................................... 3,013
Other accrued expenses.................................................................... 99,174
-----------
Total liabilities....................................................................... 39,712,815
-----------
Net assets.................................................................................. $491,253,811
-----------
-----------
Class A:
Net asset value and redemption price per share ($407,003,587 DIVIDED BY 28,420,611 shares
outstanding)............................................................................... $ 14.32
-----------
-----------
Maximum offering price per share (100/95.25 of $14.32) *.................................... $ 15.03
-----------
-----------
Class B:+
Net asset value and offering price per share ($81,010,803 DIVIDED BY 5,763,649 shares
outstanding)............................................................................... $ 14.06
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($3,239,421
DIVIDED BY 224,847 shares outstanding)..................................................... $ 14.41
-----------
-----------
Net assets consist of:
Paid in capital (Note 4).................................................................. $427,588,285
Accumulated net realized gain on investments and foreign currency transactions............ 4,527,954
Net unrealized depreciation on translation of assets and liabilities in foreign
currencies............................................................................... (205,818)
Net unrealized appreciation of investments................................................ 59,343,390
-----------
Total -- representing net assets applicable to capital shares outstanding................... $491,253,811
-----------
-----------
<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.
F6
<PAGE>
GT GLOBAL EUROPE 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 $1,472,615)............................ $ 6,804,153
Interest income........................................................................... 1,008,013
-----------
Total investment income................................................................. 7,812,166
-----------
Expenses:
Investment management and administration fees (Note 2).................................... 5,228,246
Service and distribution expenses: (Note 2)
Class A.................................................................... $ 1,554,410
Class B.................................................................... 910,363 2,464,773
-----------
Transfer agent fees (Note 2).............................................................. 1,655,972
Custodian fees............................................................................ 433,551
Fund accounting fees (Note 2)............................................................. 138,072
Registration and filing fees.............................................................. 126,714
Printing and postage expenses............................................................. 112,239
Audit fees................................................................................ 38,142
Legal fees................................................................................ 20,986
Trustees' fees and expenses (Note 2)...................................................... 8,387
Other expenses (Note 1)................................................................... 497,313
-----------
Total expenses before reductions........................................................ 10,724,395
-----------
Expense reductions (Notes 1 & 5)...................................................... (748,353)
-----------
Total net expenses...................................................................... 9,976,042
-----------
Net investment loss......................................................................... (2,163,876)
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized gain on investments............................................. 107,873,761
Net realized loss on foreign currency transactions........................... (728,823)
-----------
Net realized gain during the year....................................................... 107,144,938
Net change in unrealized depreciation on translation of assets and
liabilities in foreign currencies........................................... (237,701)
Net change in unrealized appreciation of investments......................... (31,970,694)
-----------
Net unrealized depreciation during the year............................................. (32,208,395)
-----------
Net realized and unrealized gain on investments and foreign currencies...................... 74,936,543
-----------
Net increase in net assets resulting from operations........................................ $72,772,667
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL EUROPE 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 loss...................................................... $ (2,163,876) $ (1,938,485)
Net realized gain on investments and foreign currency transactions....... 107,144,938 86,541,400
Net change in unrealized depreciation on translation of assets and
liabilities in foreign currencies....................................... (237,701) (218,619)
Net change in unrealized appreciation (depreciation) of investments...... (31,970,694) 23,691,090
-------------- --------------
Net increase in net assets resulting from operations................... 72,772,667 108,075,386
-------------- --------------
Class A:
Distributions to shareholders: (Note 1)
From net realized gain on investments.................................... (368,261) (4,360,146)
Class B:
Distributions to shareholders: (Note 1)
From net realized gain on investments.................................... (76,445) (815,186)
Advisor Class: (Note 1)
Distributions to shareholders:
From net realized gain on investments.................................... (1,099) (29,590)
-------------- --------------
Total distributions.................................................... (445,805) (5,204,922)
-------------- --------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested......................... 2,415,165,409 3,224,591,371
Decrease from capital shares repurchased................................. (2,538,538,626) (3,342,278,802)
-------------- --------------
Net decrease from capital share transactions........................... (123,373,217) (117,687,431)
-------------- --------------
Total decrease in net assets............................................... (51,046,355) (14,816,967)
Net assets:
Beginning of year........................................................ 542,300,166 557,117,133
-------------- --------------
End of year *............................................................ $ 491,253,811 $ 542,300,166
-------------- --------------
-------------- --------------
* Includes undistributed net investment income of......................... $ -- $ --
-------------- --------------
-------------- --------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL EUROPE 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 (D) 1996 (D) 1995 (D) 1994 (D) 1993 (D)
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.89 $ 10.88 $ 10.03 $ 10.84 $ 8.51
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss).......... (0.04) (0.03) 0.04 0.06 0.05
Net realized and unrealized gain
(loss) on investments................ 1.48 2.16 0.95 (0.69) 2.36
---------- ---------- ---------- ---------- ----------
Net increase (decrease) from
investment operations.............. 1.44 2.13 0.99 (0.63) 2.41
---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income............ -- -- (0.10) (0.05) (0.06)
From net realized gain on
investments.......................... (0.01) (0.12) (0.04) -- --
In excess of net investment income.... -- -- -- -- (0.02)
In excess of net realized gain on
investments.......................... -- -- -- (0.13) --
---------- ---------- ---------- ---------- ----------
Total distributions................. (0.01) (0.12) (0.14) (0.18) (0.08)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period.......... $ 14.32 $ 12.89 $ 10.88 $ 10.03 $ 10.84
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total investment return (c)............. 11.20% 19.61% 9.86% (5.8)% 28.3%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 407,004 $ 453,792 $ 483,375 $ 646,313 $ 854,701
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Notes 1 &
5)................................... (0.29)% (0.26)% 0.38% 0.61% 0.6%
Without expense reductions............ (0.43)% (0.32)% 0.32% 0.53% N/A
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.75% 1.82% 1.83% 1.73% 1.9%
Without expense reductions............ 1.89% 1.88% 1.89% 1.81% N/A
Portfolio turnover rate++++............. 107% 123% 108% 91% 67%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0533 $ 0.0277 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 period.
+ 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.
F9
<PAGE>
GT GLOBAL EUROPE 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 (D) 1996 (D) 1995 (D) 1994 (D) 1993 (D)
---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.73 $ 10.81 $ 9.97 $ 10.79 $ 9.02
---------- ---------- ---------- ---------- -------------
Income from investment operations:
Net investment income (loss).......... (0.13) (0.11) (0.03) -- --
Net realized and unrealized gain
(loss) on investments................ 1.47 2.15 0.94 (0.69) 1.85
---------- ---------- ---------- ---------- -------------
Net increase (decrease) from
investment operations.............. 1.34 2.04 0.91 (0.69) 1.85
---------- ---------- ---------- ---------- -------------
Distributions to shareholders:
From net investment income............ -- -- (0.03) -- (0.06)
From net realized gain on
investments.......................... (0.01) (0.12) (0.04) -- --
In excess of net investment income.... -- -- -- -- (0.02)
In excess of net realized gain on
investments.......................... -- -- -- (0.13) --
---------- ---------- ---------- ---------- -------------
Total distributions................. (0.01) (0.12) (0.07) (0.13) (0.08)
---------- ---------- ---------- ---------- -------------
Net asset value, end of period.......... $ 14.06 $ 12.73 $ 10.81 $ 9.97 $ 10.79
---------- ---------- ---------- ---------- -------------
---------- ---------- ---------- ---------- -------------
Total investment return (c)............. 10.55% 18.79% 9.20% (6.38)% 20.5%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 81,011 $ 87,092 $ 73,025 $ 81,602 $ 34,048
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Notes 1 &
5)................................... (0.94)% (0.91)% (0.27)% (0.04)% (0.1)%(a)
Without expense reductions............ (1.08)% (0.97)% (0.33)% (0.12)% N/A
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.40% 2.47% 2.48% 2.38% 2.6%(a)
Without expense reductions............ 2.54% 2.53% 2.54% 2.46% N/A
Portfolio turnover rate++++............. 107% 123% 108% 91% 67%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0533 $ 0.0277 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 period.
+ 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 EUROPE 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+++
-------------------------------------
YEAR ENDED DECEMBER JUNE 1, 1995
31, TO
---------------------- DECEMBER 31,
1997 (D) 1996 (D) 1995 (D)
---------- ---------- -------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.92 $ 10.85 $ 10.24
---------- ---------- -------------
Income from investment operations:
Net investment income (loss).......... 0.01 0.01 0.08
Net realized and unrealized gain
(loss) on investments................ 1.49 2.18 0.71
---------- ---------- -------------
Net increase (decrease) from
investment operations.............. 1.50 2.19 0.79
---------- ---------- -------------
Distributions to shareholders:
From net investment income............ -- -- (0.14)
From net realized gain on
investments.......................... (0.01) (0.12) (0.04)
In excess of net investment income.... -- -- --
In excess of net realized gain on
investments.......................... -- -- --
---------- ---------- -------------
Total distributions................. (0.01) (0.12) (0.18)
---------- ---------- -------------
Net asset value, end of period.......... $ 14.41 $ 12.92 $ 10.85
---------- ---------- -------------
---------- ---------- -------------
Total investment return (c)............. 11.64% 20.21% 7.75%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 3,239 $ 1,416 $ 718
Ratio of net investment income (loss) to
average net assets:
With expense reductions (Notes 1 &
5)................................... 0.06% 0.09% 0.73%(a)
Without expense reductions............ (0.08)% 0.03% 0.67%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.40% 1.47% 1.48%(a)
Without expense reductions............ 1.54% 1.53% 1.54%(a)
Portfolio turnover rate++++............. 107% 123% 108%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0533 $ 0.0277 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 period.
+ 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 EUROPE GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
December 31, 1997
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Europe 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 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 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.
F12
<PAGE>
GT GLOBAL EUROPE 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 an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers, unless a quotation from only one
broker is available, in which case only that broker's price will be used. If an
option expires on its stipulated expiration date or if the Fund enters into a
closing purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. The Fund can write options only on
a covered basis, which, for a call, requires that the Fund hold the underlying
security, and, for a put, requires the Fund to set aside cash, U.S. government
securities or other liquid securities in an amount not less than the exercise
price or otherwise provide adequate cover at all times while the put option is
outstanding. The Fund may use options to manage its exposure to the stock 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 December 31, 1997, stocks with an aggregate value of approximately
$19,959,963 were on loan to brokers. The loans were secured by cash collateral
of $20,701,800, 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 $541,865. 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 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
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GT GLOBAL EUROPE GROWTH FUND
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 BankBoston and State
Street Bank & Trust Company. The arrangements with the banks allow the Fund and
the 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 $21,092,373 with a weighted average interest rate of 6.31%. Interest expense
for the year ended December 31, 1997, was $465,718, 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 $4,461
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 $15,594 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 $501,201. 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.
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
F14
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GT GLOBAL EUROPE GROWTH FUND
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 $540,359,758 and $667,512,449, 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............................. 146,863,882 $ 2,008,141,712 247,661,557 $ 2,968,073,960
Shares issued in connection with
reinvestment of distributions......... 20,229 286,488 261,336 3,297,924
---------------- -------------------- ---------------- --------------------
146,884,111 2,008,428,200 247,922,893 2,971,371,884
Shares repurchased...................... (153,681,853) (2,115,903,158) (257,136,969) (3,090,222,730)
---------------- -------------------- ---------------- --------------------
Net decrease............................ (6,797,742) $ (107,474,958) (9,214,076) $ (118,850,846)
---------------- -------------------- ---------------- --------------------
---------------- -------------------- ---------------- --------------------
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
-------------------------------------- --------------------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ---------------- -------------------- ---------------- --------------------
<S> <C> <C> <C> <C>
Shares sold............................. 25,162,463 $ 340,605,118 15,643,994 $ 188,596,754
Shares issued in connection with
reinvestment of distributions......... 4,768 66,175 53,171 663,732
---------------- -------------------- ---------------- --------------------
25,167,231 340,671,293 15,697,165 189,260,486
Shares repurchased...................... (26,243,592) (357,657,223) (15,609,973) (188,238,304)
---------------- -------------------- ---------------- --------------------
Net increase (decrease)................. (1,076,361) $ (16,985,930) 87,192 $ 1,022,182
---------------- -------------------- ---------------- --------------------
---------------- -------------------- ---------------- --------------------
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
-------------------------------------- --------------------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ---------------- -------------------- ---------------- --------------------
<S> <C> <C> <C> <C>
Shares sold............................. 4,798,844 $ 66,064,822 5,230,224 $ 63,929,457
Shares issued in connection with
reinvestment of distributions......... 77 1,094 2,336 29,544
---------------- -------------------- ---------------- --------------------
4,798,921 66,065,916 5,232,560 63,959,001
Shares repurchased...................... (4,683,709) (64,978,245) (5,189,081) (63,817,768)
---------------- -------------------- ---------------- --------------------
Net increase............................ 115,212 $ 1,087,671 43,479 $ 141,233
---------------- -------------------- ---------------- --------------------
---------------- -------------------- ---------------- --------------------
</TABLE>
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 $206,488 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):
F15
<PAGE>
GT GLOBAL EUROPE GROWTH FUND
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 $.2362 per share (representing an approximate total of
$8,046,337). The total amount of taxes paid by the Fund to such countries was
approximately $.0432 per share (representing an approximate total of
$1,472,615).
F16
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GT GLOBAL EUROPE GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL EUROPE 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 Europe Growth Fund
EURAR802078M
