<PAGE>
[LOGO] G.T. GLOBAL DOLLAR FUND: ADVISOR CLASS
PROSPECTUS -- MARCH 1, 1995, AS REVISED JUNE 1, 1995
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G.T. GLOBAL DOLLAR FUND ("Fund") is a professionally managed money market fund,
organized as a diversified series of G.T. Investment Portfolios, Inc.
("Company"), seeking maximum current income consistent with liquidity and
conservation of capital.
The Fund has the flexibility to invest in a wide variety of high quality, U.S.
dollar-denominated money market instruments. These instruments include those
issued by the U.S. and foreign governments, their agencies and
instrumentalities; high quality U.S. and non-U.S. corporate obligations; and
high quality instruments of U.S. and foreign banks. There can be no assurance
that the Fund will achieve its investment objective.
The Fund's investment manager, G.T. CAPITAL MANAGEMENT, INC. ("G.T. Capital"),
is a part of the G.T. Group, a leading international investment advisory
organization with offices throughout the world that long has emphasized global
investment.
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT. THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00 PER SHARE.
Shares offered by this Prospectus are available for purchase only by certain
investors and are offered at net asset value without the imposition of a front-
end or contingent deferred sales charge and without a Rule 12b-1 charge.
An investment in the G.T. Global Dollar Fund offers the following advantages:
/ / Professional Management by a Leading Manager with Offices in the World's
Major Markets
/ / Daily Dividends
/ / Automatic Dividend Reinvestment at No Sales Charge
This Prospectus sets forth concisely the information an investor should know
before investing and should be read carefully and retained for future reference.
A Statement of Additional Information, dated March 1, 1995, as revised June 1,
1995, has been filed with the Securities and Exchange Commission ("SEC") and, as
amended or supplemented from time to time, is incorporated herein by reference.
The Statement of Additional Information is available without charge by writing
to G.T. Global Dollar Fund at 50 California Street, San Francisco, California
94111, or calling (800) 824-1580.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR GUARANTEED BY,
ANY BANK, NOR ARE THEY FEDERALLY INSURED OR OTHERWISE PROTECTED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
FOR FURTHER INFORMATION, CALL (800) 824-1580 OR CONTACT YOUR
FINANCIAL ADVISOR.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Prospectus Page 1
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G.T. GLOBAL DOLLAR FUND
TABLE OF CONTENTS
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<TABLE>
<CAPTION>
Page
---------
<S> <C>
Prospectus Summary........................................................................ 3
Financial Highlights...................................................................... 6
Investment Objective and Policies......................................................... 7
How to Invest............................................................................. 10
How to Make Exchanges..................................................................... 11
How to Redeem Shares...................................................................... 12
Shareholder Account Manual................................................................ 14
Calculation of Net Asset Value............................................................ 15
Dividends and Taxes....................................................................... 15
Management................................................................................ 16
Other Information......................................................................... 18
</TABLE>
Prospectus Page 2
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G.T. GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
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The following summary is qualified in its entirety by the more detailed
information appearing in the body of this Prospectus. Cross-references in this
summary are to headings in the body of the Prospectus.
<TABLE>
<S> <C> <C>
Investment Objective: Maximum current income consistent with liquidity and conservation
of capital
Principal Investments: Invests in a wide variety of high quality U.S. dollar-denominated
money market instruments of U.S. and non-U.S. issuers
Investment Manager: G.T. Capital, part of the G.T. Group, a leading international
investment advisory organization with over $20 billion under
management
Advisor Class shares are offered through this Prospectus to (a)
Advisor Class Shares: trustees or other fiduciaries purchasing shares for employee
benefit plans which are sponsored by organizations which have at
least 250 employees; (b) any account investing at least $25,000 in
one or more G.T. Global Mutual Funds if (i) a financial planner,
trust company, bank trust department or registered investment
adviser has investment discretion over such account, and (ii) the
account holder pays such person as compensation for its advice and
other services an annual fee of at least .50% on the assets in the
account; (c) any account investing at least $25,000 in one or more
G.T. Global Mutual Funds if (i) such account is established under
a "wrap fee" program, and (ii) the account holder pays the sponsor
of such program an annual fee of at least .50% on the assets in
the account; (d) accounts advised by one of the companies
comprising or affiliated with the G.T. Group; and (e) any of the
companies comprising or affiliated with the G.T. Group
Dividends: Declared daily and paid monthly from available net investment
income and any realized net short-term capital gain
Reinvestment: All dividends are paid in Advisor Class shares of the Fund
Yield: Advisor Class shares of the G.T. Global Dollar Fund are expected
to be quoted daily in the financial section of most newspapers
</TABLE>
Prospectus Page 3
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G.T. GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
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THE FUND. G.T. Global Dollar Fund is a mutual fund organized as a diversified
series of G.T. Investment Portfolios, Inc. ("Company"), a registered open-end
management investment company. Advisor Class shares of the Fund's common stock
are available through Financial Advisors who have entered into agreements with
the Fund's distributor, G.T. Global Financial Services, Inc. ("G.T. Global") and
certain of its affiliates. See "How to Invest" and "Shareholder Account Manual."
Shares may be redeemed through the Fund's transfer agent, G.T. Global Investor
Services, Inc. ("Transfer Agent"). See "How to Redeem Shares" and "Shareholder
Account Manual."
INVESTMENT MANAGER. G.T. Capital is the Fund's investment manager and
administrator. G.T. Capital provides investment management and/or administration
services to all of the G.T. Global Mutual Funds as well as to other
institutional, corporate and individual clients. G.T. Capital is part of the
G.T. Group, a leading international investment advisory organization that long
has emphasized global investing. The G.T. Group maintains fully staffed
investment offices in San Francisco, London, Tokyo, Toronto, Hong Kong,
Singapore and Sydney. As of April 1, 1995, total assets under G.T. Group
management exceeded $20 billion; of this amount, more than $17 billion was
invested in the securities of non-U.S. issuers. The companies comprising the
G.T. Group are indirect subsidiaries of the Prince of Liechtenstein Foundation.
See "Management."
INVESTMENT OBJECTIVE, TECHNIQUES AND RISK FACTORS. The Fund's investment
objective is maximum current income consistent with liquidity and conservation
of capital. The Fund seeks this objective by investing in high quality U.S.
dollar-denominated money market instruments, including obligations issued or
guaranteed by the U.S. and foreign governments, their agencies and
instrumentalities; obligations of U.S. and non-U.S. banks, including
certificates of deposit, bankers' acceptances and similar instruments, when such
banks have total assets at the time of purchase of at least $1 billion; interest
bearing deposits that are insured by a U.S. government agency in other U.S.
banking or savings institutions; commercial paper of U.S. and foreign corporate
issuers, including variable rate master notes; and repurchase agreements secured
by any of the foregoing. An investment in the Fund is neither insured nor
guaranteed by the U.S. government. There is no assurance that the Fund will
achieve its investment objective. There can be no assurance that the Fund will
be able to maintain a stable net asset value of $1.00 per share. See "Investment
Objective and Policies."
EXPENSES. The Fund pays G.T. Capital investment management and administration
fees at the annualized rate of 0.50% of the Fund's average daily net assets. As
the Fund's distributor, G.T. Global may, from time to time, pay ongoing
commissions to broker/dealers and other financial institutions for servicing
shareholder accounts. G.T. Capital has agreed to limit expenses (exclusive of
brokerage commissions, interest, taxes and extraordinary expenses) to the annual
rate of 0.75% of the average daily net assets of the Fund's Advisor Class
shares.
Prospectus Page 4
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G.T. GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
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SUMMARY OF INVESTOR COSTS. The expenses and maximum transaction costs associated
with investing in the Advisor Class shares of the Fund are reflected in the
following tables*:
<TABLE>
<CAPTION>
ADVISOR
CLASS
----------
<S> <C>
SHAREHOLDER TRANSACTION COSTS:
Sales charge on purchases of shares......................................................................... None
Sales charges on reinvested distributions to shareholders................................................... None
Maximum contingent deferred sales charge.................................................................... None
Redemption charges.......................................................................................... None
Exchange fees:
-- On first four exchanges each year...................................................................... None
-- On each additional exchange............................................................................ $ 7.50
ANNUAL FUND OPERATING EXPENSES
(AS A % OF AVERAGE NET ASSETS):
Investment management
and administration fees................................................................................... .50 %
12b-1 distribution and service fees......................................................................... None
Other expenses.............................................................................................. .25 %
----------
Total Fund Operating Expenses................................................................................. 0.75 %
</TABLE>
HYPOTHETICAL EXAMPLE OF EFFECT OF EXPENSES:
An investor would directly or indirectly pay the following expenses at the end
of the periods shown on a $1,000 investment in the Fund, assuming a 5% annual
return*:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
----- ----------- ----- -----
<S> <C> <C> <C> <C>
Advisor Class shares..................................................... $ 8 $ 23 $ 42 $ 93
<FN>
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* BECAUSE ADVISOR CLASS SHARES HAVE NOT PREVIOUSLY BEEN OFFERED, EXPENSES ARE
ESTIMATES AND DO NOT REFLECT ACTUAL ADVISOR CLASS EXPENSES. SUCH DATA ARE
DERIVED FROM CLASS A AND CLASS B SHARE EXPENSES FOR THE FUND BASED ON THE
FUND'S FISCAL YEAR ENDED DECEMBER 31, 1994. THESE TABLES ARE INTENDED TO
ASSIST INVESTORS IN UNDERSTANDING THE VARIOUS COSTS AND EXPENSES ASSOCIATED
WITH INVESTING IN THE FUND. "Other Expenses" include custody, transfer
agent, legal, audit and other expenses. The transfer agent fees are
calculated on a per account and per transaction basis, rather than on the
basis of average net assets. "Other expenses" may be reduced to the extent
that (i) certain broker/dealers executing the Fund's portfolio transac-
tions pay all or a portion of the Fund's custodian fees and transfer agency
expenses, or (ii) fees received in connection with the lending of portfolio
securities are used to reduce custodian fees. Investors purchasing Advisor
Class shares through financial planners, trust companies, bank trust
departments or registered investment advisers, or under a "wrap fee"
program, will be subject to additional fees charged by such entities or by
the sponsors of such programs. Where any account advised by one of the
companies comprising or affiliated with the G.T. Group invests in Advisor
Class shares of the Fund, such account shall not be subject to duplicative
advisory fees. THE "HYPOTHETICAL EXAMPLE" SET FORTH ABOVE IS NOT A
REPRESENTATION OF PAST OR FUTURE EXPENSES; THE FUND'S ACTUAL EXPENSES MAY
BE MORE OR LESS THAN THOSE SHOWN. The above table and the assumption in the
Hypothetical Example of a 5% annual return are required by regulation of
the Securities and Exchange Commission applicable to all mutual funds; the
5% annual return is not a prediction of and does not represent the Fund's
projected or actual performance.
</TABLE>
Prospectus Page 5
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G.T. GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
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The table below provides condensed information concerning income and capital
changes for one share of Class A and Class B for the periods shown. This
information is supplemented by the financial statements and notes thereto
included in the Statement of Additional Information. The financial statements
and notes for fiscal years ended December 31, 1992, 1993 and 1994 have been
audited by Coopers & Lybrand, L.L.P., independent accountants, whose report
thereon also appears in the Statement of Additional Information. Information
presented below for the periods January 1, 1987 to December 31, 1991 was audited
by other auditors which served as the Fund's independent accountants for those
periods.
<TABLE>
<CAPTION>
CLASS B++
----------------------
APRIL 1,
YEAR ENDED 1993 TO
DEC. 31, DEC. 31,
1994 1993
---------- ----------
Net investment
income........... $ 0.025 $ 0.010
<S> <C> <C>
Distributions from
net investment
income........... (0.025) (0.010)
---------- ----------
Net asset value
(unchanged during
the period)...... $ 1.00 $ 1.00
---------- ----------
---------- ----------
Total Investment
Return........... 2.53% 1.4%(a)
Ratios and
supplemental
data:
Ratio of net
investment income
to average net
assets........... 2.65%(b) 1.42%(a)(b)
Ratio of expenses
to average net
assets........... 1.67%(c) 1.75%(a)(c)
Net assets at end
of the period (in
000's)........... $109,936 $3,478
<CAPTION>
CLASS A+
-----------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1994 1993 1992 1991 1990 1989 1988 1987 1986
---------- ---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
Net investment
income........... $ 0.032 $ 0.022 $ 0.028 $ 0.051 $ 0.069 $ 0.075 $ 0.058 $ 0.053 $ 0.063
<S> <C>
Distributions from
net investment
income........... (0.032) (0.022) (0.028) (0.051) (0.069) (0.075) (0.058) (0.053) (0.063)
---------- ---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
Net asset value
(unchanged during
the period)...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
Total Investment
Return........... 3.30% 2.2% 2.8% 5.1% 6.9% 7.6% 5.9% 5.4% 6.5%
Ratios and
supplemental
data:
Ratio of net
investment income
to average net
assets........... 3.40%(b) 2.17%(b) 2.78%(b) 5.10%(b) 6.95%(b) 7.60%(b) 5.72% 5.24%(b) 5.90%(b)
Ratio of expenses
to average net
assets........... 0.92%(c) 1.00%(c) 1.25%(c) 1.25%(c) 1.25%(c) 1.19%(c) 1.03% 0.83%(c) 0.15%(c)
Net assets at end
of the period (in
000's)........... $320,858 $87,822 $81,674 $70,925 $123,218 $13,143 $11,628 $11,791 $5,295
<CAPTION>
SEPT. 16,
1985
(COMMENCE-
MENT OF
OPERATIONS)
THROUGH
DEC. 31,
1985
----------
Net investment
income........... $ 0.021
Distributions from
net investment
income........... (0.021 )
----------
Net asset value
(unchanged during
the period)...... $ 1.00
----------
----------
Total Investment
Return........... 1.4%
Ratios and
supplemental
data:
Ratio of net
investment income
to average net
assets........... 7.08%(b )
Ratio of expenses
to average net
assets........... --(c )
Net assets at end
of the period (in
000's)........... $2,927
<FN>
- ------------------------
+ All capital shares issued and outstanding as of March 31, 1993 were
re-classified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
(a) Annualized.
(b) Ratios of net investment income to average net assets prior to expense
reimbursement concerning Class A shares by G.T. Capital were: 3.15%(a) in
1994, 1.46% in 1993, 2.47% in 1992; 4.90% in 1991; 6.64% in 1990; 7.17% in
1989, 5.09% in 1987, 5.07% in 1986; and 6.09% in the period September 16,
1985 through December 31, 1985. Such ratio for Class B shares was 2.40% for
1994 and .86% (a) for 1993.
(c) Ratios of expenses to average net assets prior to expense reimbursement by
G.T. Capital concerning Class A shares were: 1.17%(a) in 1994; 1.72% in
1993, 1.56% in 1992; 1.45% in 1991; 1.56% in 1990; 1.62% in 1989; .98% in
1987; .98% in 1986; and .98% (a) in the period September 16, 1985 through
December 31, 1985. Such ratio for Class B shares was 1.92% for 1994 and
2.31% (a) for 1993.
</TABLE>
Prospectus Page 6
<PAGE>
G.T. GLOBAL DOLLAR FUND
INVESTMENT OBJECTIVE
AND POLICIES
- --------------------------------------------------------------------------------
The investment objective of G.T. Global Dollar Fund is to seek maximum current
income consistent with liquidity and conservation of capital. The Fund seeks
this objective by investing in high quality, U.S. dollar-denominated money
market instruments, i.e., debt obligations with remaining maturities of 13
months or less.
The Fund seeks to maintain a net asset value of $1.00 per share. To do so, the
Fund uses the amortized cost method of valuing its securities pursuant to Rule
2a-7 under the 1940 Act, certain requirements of which are summarized below.
In accordance with Rule 2a-7, the Fund will (i) maintain a dollar-weighted
average portfolio maturity of 90 days or less, and (ii) purchase only
instruments having remaining maturities of 13 months or less.
The Fund will invest only in high quality, U.S. dollar-denominated money market
instruments determined by G.T. Capital to present minimal credit risks in
accordance with procedures established by the Company's Board of Directors. To
be considered high quality, a security must be rated in accordance with
applicable rules in one of the two highest rating categories for short-term
securities by at least two nationally recognized statistical rating
organizations ("NRSROs") (or one, if only one such NRSRO has rated the
security), or, if the issuer has no applicable short-term rating, determined by
G.T. Capital to be of equivalent credit quality.
High quality securities are divided into "first tier" and "second tier"
securities. The Fund will invest only in first tier securities. First tier
securities have received the highest rating for short-term debt from at least
two NRSROs, i.e., rated not lower than A-1 by Standard & Poor's Ratings Group
("S&P") or P-1 by Moody's Investors Service, Inc. ("Moody's") (or one, if only
one such NRSRO has rated the security), or, if unrated, are determined to be of
equivalent quality as described above. If a security has been assigned different
ratings by different NRSROs, at least two NRSROs must have assigned the higher
rating in order for G.T. Capital to determine the security's eligibility for
purchase by the Fund.
The rating criteria of S&P and Moody's, two NRSROs currently rating instruments
of the type the Fund may purchase, are more fully described in "Description of
Debt Ratings" in the Fund's Statement of Additional Information.
The Fund may invest in the following types of money market instruments:
/ / OBLIGATIONS ISSUED OR GUARANTEED BY THE U.S. AND FOREIGN GOVERNMENTS, THEIR
AGENCIES AND INSTRUMENTALITIES. These include: direct obligations of the
U.S. Treasury, such as Treasury bills and notes; obligations backed by the
full faith and credit of the U.S. government, such as those issued by the
Government National Mortgage Association; obligations supported primarily or
solely by the creditworthiness of the issuer, such as securities of the
Federal National Mortgage Association, the Federal Home Loan Mortgage
Corporation and the Tennessee Valley Authority; and similar U.S.-dollar
denominated instruments of foreign governments, their agencies, authorities
and instrumentalities.
/ / OBLIGATIONS OF U.S. AND NON-U.S. BANKS, including certificates of deposit,
bankers' acceptances and similar instruments, when such banks have total
assets at the time of purchase equal to at least $1 billion.
/ / INTEREST-BEARING DEPOSITS IN U.S COMMERCIAL AND SAVINGS BANKS having total
assets of $1 billion or less, in principal amounts at each such bank not
greater than are insured by an agency of the U.S. government, provided that
the aggregate amount of such deposits (including interest earned) does not
exceed 5% of the Fund's assets.
/ / COMMERCIAL PAPER AND OTHER SHORT-TERM DEBT OBLIGATIONS OF U.S. AND FOREIGN
COMPANIES, rated at least A-1 by S&P, Prime-1 by Moody's, or, if not rated,
determined by G.T. Capital to be of equivalent quality, provided that any
outstanding intermediate- or long-term debt of the issuer is rated at least
AA by S&P or Aa by Moody's. See "Description of Debt Ratings" in the
Statement of Additional Information. These instruments may include corporate
bonds and notes (corporate obligations that mature, or that may be redeemed,
in one year or less). These corporate obligations include variable rate
master notes, which are
Prospectus Page 7
<PAGE>
G.T. GLOBAL DOLLAR FUND
redeemable upon notice and permit investment of fluctuating amounts at
varying rates of interest pursuant to direct arrangements with the issuer of
the instrument.
/ / REPURCHASE AGREEMENTS SECURED BY ANY OF THE FOREGOING.
In managing the Fund, G.T. Capital may employ a number of professional money
management techniques, including varying the composition of the Fund's
investments and the average weighted maturity of the Fund's portfolio within the
limitations described above. Determinations to use such techniques will be based
on G.T. Capital's identification and assessment of the relative values of
various money market instruments and the future of interest rate patterns,
economic conditions and shifts in fiscal and monetary policy. G.T. Capital also
may seek to improve the Fund's yield by purchasing or selling securities in
order to take advantage of yield disparities that regularly occur in the market.
For example, frequently there are yield disparities between different types of
money market instruments, and market conditions from time to time result in
similar securities trading at different prices.
Investors should recognize that in periods of declining interest rates, the
Fund's yield will tend to be somewhat higher than prevailing market rates;
conversely, in periods of rising interest rates, the Fund's yield will tend to
be somewhat lower than those rates. Also, when interest rates are falling, the
net new money flowing into the Fund from the sale of its shares and reinvestment
of dividends likely will be invested in instruments producing lower yields than
the balance of the Fund's portfolio, thereby reducing the Fund's yield. The
opposite generally will be true in periods of rising interest rates. The Fund is
designed to provide maximum current income consistent with the liquidity and
safety of principal afforded by investment in a portfolio of high quality money
market instruments; the Fund's yield may be lower than that produced by funds
investing in lower quality and/or longer-term securities.
Although the Fund may invest in instruments of non-U.S. issuers, all such
instruments will be denominated in U.S. dollars and will be first tier
securities. Obligations of non-U.S. issuers are subject to the same risks that
pertain to domestic issues, notably credit risk, market risk and liquidity risk.
Nonetheless, these instruments present risks that are different from those
presented by investment in instruments of U.S. issuers. Obligations of foreign
entities may be subject to certain sovereign risks, including adverse political
and economic developments in a foreign country, the extent and quality of
government regulation of financial markets and institutions, interest
limitations, currency controls, foreign withholding taxes, and expropriation or
nationalization of foreign issuers and their assets. There may be less publicly
available information about foreign issuers than about domestic issuers, and
foreign issuers may not be subject to the same accounting, auditing and
financial recordkeeping standards and requirements as are domestic issuers.
Accordingly, while the Fund's ability to invest in these instruments may provide
it with the potential to produce a higher yield than money market funds
investing solely in instruments of domestic issuers, the Fund presents greater
risk than such other funds.
REPURCHASE AGREEMENTS. Repurchase agreements are transactions in which the Fund
purchases a security from a bank or recognized securities dealer and
simultaneously commits to resell that security to the bank or dealer at an
agreed-upon price, date and market rate of interest unrelated to the coupon rate
or maturity of the purchased security. Although repurchase agreements carry
certain risks not associated with direct investments in securities, including
possible decline in the market value of the underlying securities and delays and
costs to the Fund if the other party to the repurchase agreement becomes
bankrupt, the Fund will enter into repurchase agreements only with banks and
dealers believed by G.T. Capital to present minimal credit risks in accordance
with guidelines approved by the Company's Board of Directors. G.T. Capital will
review and monitor the creditworthiness of such institutions under the Board's
general supervision.
The Fund will not enter into repurchase agreements with maturities of more than
seven days if, as a result, more than 10% of the value of its total assets would
be invested in such repurchase agreements and other illiquid securities.
VARIABLE AND FLOATING RATE SECURITIES. The Fund may purchase variable and
floating rate securities with remaining maturities in excess of 13 months. Such
securities must comply with conditions established by the SEC under which they
may be considered to have remaining maturities of 13 months or less. The yield
of these securities varies in relation to changes in specific money market rates
such as the prime rate. These changes are reflected in adjustments to the yields
of the variable and floating rate securities, and different securities may have
different adjustment rates. To the extent that the Fund invests in such variable
and
Prospectus Page 8
<PAGE>
G.T. GLOBAL DOLLAR FUND
floating rate securities, it is G.T. Capital's view that the Fund may be able to
take advantage of the higher yield that is usually paid on longer-term
securities. G.T. Capital further believes that the variable and floating rates
paid on such securities may substantially reduce the wide fluctuations in market
value caused by interest rate changes and other factors which are typical of
longer-term debt securities.
OTHER INFORMATION. The Fund may acquire participation interests in securities in
which it is permitted to invest. Participation interests are pro rata interests
in securities held by others. Pending investment of proceeds from new sales of
Fund shares or for temporary defensive purposes, the Fund may hold any portion
of its assets in cash. The Fund may borrow money from banks as a temporary
measure (a) for extraordinary or emergency purposes in amounts up to 5% of its
net assets (taken at market value) or (b) in amounts up to 33 1/3% of its net
assets in order to meet redemption requests. The Fund will not purchase
securities while borrowings remain outstanding. The Fund may invest no more than
5% of its total assets in the securities of a single issuer (other than
securities issued or guaranteed by the U.S. government, its agencies, or
instrumentalities).
The Fund's investment objective and policies with respect to borrowing as stated
above are fundamental and may not be changed without the approval of a majority
of the Fund's outstanding voting securities. As defined in the 1940 Act and as
used in this Prospectus, a "majority of the Fund's outstanding voting
securities" means the lesser of (i) 67% of the Fund's shares represented at a
meeting at which more than 50% of the outstanding shares are represented, and
(ii) more than 50% of the Fund's outstanding shares. In addition, the Fund has
adopted certain investment limitations as fundamental policies which also may
not be changed without shareholder approval; a description of these limitations
is included in the Statement of Additional Information. The Fund's other
investment policies described herein are not fundamental policies and may be
changed by vote of the Company's Board of Directors without shareholder
approval.
On December 29, 1992, the shareholders of the Fund approved modifications to the
Fund's investment policies and limitations which authorize the Board of
Directors to effect a change in the operating structure of the Fund, so that the
Fund may transfer all of its investable assets to the Global Dollar Portfolio
("Portfolio"), an open-end management investment company with substantially the
same investment objective, limitations and policies as the Fund. The Portfolio
is expected to serve as the investment vehicle for different entities that have
the same investment objective and policies as the Fund. By investing in the
Portfolio rather than maintaining its own portfolio of securities, the Fund
would expect to realize certain economies of scale that would arise as
additional investors invest their assets in the Portfolio. There is no assurance
that institutional investors will invest in the Portfolio or that any of these
expected benefits would actually be realized by the Fund. Implementation of this
new operating structure will only occur upon approval of the Board of Directors.
Prospectus Page 9
<PAGE>
G.T. GLOBAL DOLLAR FUND
HOW TO INVEST
- --------------------------------------------------------------------------------
GENERAL. Advisor Class shares are offered through this Prospectus to (a)
trustees or other fiduciaries purchasing shares for employee benefit plans which
are sponsored by organizations which have at least 250 employees; (b) any
account investing at least $25,000 in one or more G.T. Global Mutual Funds if
(i) a financial planner, trust company, bank trust department or registered
investment adviser has investment discretion over such account, and (ii) the
account holder pays such person as compensation for its advice and other
services an annual fee of at least .50% on the assets in the account ("Advisory
Account"); (c) any account investing at least $25,000 in one or more G.T. Global
Mutual Funds if (i) such account is established under a "wrap fee" program, and
(ii) the account holder pays the sponsor of such program an annual fee of at
least .50% on the assets in the account ("Wrap Fee Account"); (d) accounts
advised by one of the companies comprising or affiliated with the G.T. Group;
and (e) any of the companies comprising or affiliated with the G.T. Group.
Financial planners, trust companies, bank trust companies and registered
investment advisers referenced in subpart (b) and sponsors of "wrap fee"
programs referenced in subpart (c) are collectively referred to as "Financial
Advisors." Investors in Wrap Fee Accounts and Advisory Accounts may only
purchase Advisor Class shares through Financial Advisors who have entered into
agreements with G.T. Global and certain of its affiliates.
Investors known to be eligible to purchase Advisor Class shares will be sold
only Advisor Class shares rather than any other class of shares offered by the
Fund.
Orders received by G.T. Global before the close of regular trading on the New
York Stock Exchange ("NYSE") (currently, 4:00 p.m. Eastern time, unless weather,
equipment failure or other factors contribute to an earlier closing time) on any
Business Day will be executed at the Fund's net asset value per share determined
that day, provided Federal Funds, as defined below, become available to the Fund
that day. A "Business Day" is any day Monday through Friday on which the NYSE is
open for business. The Fund follows policies designed to ensure that it
maintains a constant net asset value per share of $1.00. See "Calculation of Net
Asset Value." No sales charges are imposed on purchases of Advisor Class shares.
Prior to receipt of Federal Funds, an investor's money will not be invested.
"Federal Funds" are monies held on deposit at a Federal Reserve Bank which are
available for the Fund's immediate use. Purchases by check or negotiable bank
draft normally take two business days to be converted into Federal Funds. Shares
begin accruing income dividends on the day following the date of purchase. The
Fund and G.T. Global reserve the right to reject any purchase order and to
suspend the offering of shares for a period of time.
Fiduciaries and Financial Advisors may be required to provide information
satisfactory to G.T. Global concerning their eligibility to purchase Advisor
Class shares. For specific information on opening an account, please contact
your Financial Advisor or G.T. Global.
PURCHASES BY BANK WIRE. Shares of the Fund may also be purchased through G.T.
Global by bank wire. Bank wire purchases will be executed at the net asset value
next determined after the bank wire is received. Accordingly, a bank wire
received by the close of regular trading on the NYSE on a Business Day will be
effected that day. A wire investment is considered received when the Transfer
Agent is notified that the bank wire has been credited to the Fund. Prior
telephonic or facsimile notice that a bank wire is being sent must be provided
to the Transfer Agent. A bank may charge a service fee for wiring money to the
Fund. The Transfer Agent currently does not charge a service fee for
facilitating wire purchases, but reserves the right to do so in the future. For
more information, please refer to the Shareholder Account Manual in this
Prospectus.
CERTIFICATES. In the interest of economy and convenience, the Fund does not
issue physical certificates representing its shares. Shares of the Fund are
recorded on a register by the Transfer Agent, and shareholders have the same
rights of ownership as if certificates had been issued to them.
Prospectus Page 10
<PAGE>
G.T. GLOBAL DOLLAR FUND
HOW TO MAKE EXCHANGES
- --------------------------------------------------------------------------------
Advisor Class shares of the Fund may only be exchanged for Advisor Class shares
of the other G.T. Global Mutual Funds, based on their respective net asset
values, provided that the registration remains identical. This exchange
privilege is available only in those jurisdictions where the sale of G.T. Global
Mutual Fund shares to be acquired may be legally made. Other than the Fund, the
G.T. Global Mutual Funds currently include:
-- G.T. GLOBAL: WORLDWIDE GROWTH FUND
-- G.T. GLOBAL: INTERNATIONAL GROWTH FUND
-- G.T. GLOBAL EMERGING MARKETS FUND
-- G.T. GLOBAL HEALTH CARE FUND
-- G.T. GLOBAL TELECOMMUNICATIONS FUND
-- G.T. GLOBAL FINANCIAL SERVICES FUND
-- G.T. GLOBAL INFRASTRUCTURE FUND
-- G.T. GLOBAL NATURAL RESOURCES FUND
-- G.T. GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
-- G.T. GLOBAL: NEW PACIFIC GROWTH FUND
-- G.T. GLOBAL: EUROPE GROWTH FUND
-- G.T. LATIN AMERICA GROWTH FUND
-- G.T. GLOBAL: AMERICA GROWTH FUND
-- G.T. GLOBAL: JAPAN GROWTH FUND
-- G.T. GLOBAL GROWTH & INCOME FUND
-- G.T. GLOBAL GOVERNMENT INCOME FUND
-- G.T. GLOBAL STRATEGIC INCOME FUND
-- G.T. GLOBAL HIGH INCOME FUND
Up to four exchanges each year may be made without a service charge. A $7.50
service charge will be imposed on each subsequent exchange. Exchange requests
received in good order by the Transfer Agent before the close of regular trading
on the NYSE on any Business Day will be processed at the net asset value
determined that day.
EXCHANGES BY TELEPHONE. A shareholder may give exchange information to his or
her Financial Advisor. Shareholders automatically have telephone privileges to
authorize redemptions. The Fund, G.T. Global and the Transfer Agent shall not be
liable for any loss or damage for acting in good faith upon instructions
received by telephone and reasonably believed to be genuine. The Fund employs
reasonable procedures to confirm that instructions communicated by telephone are
genuine, including requiring some form of personal identification prior to
acting upon instructions received by telephone, providing written confirmation
of such transactions, and/or tape recording of telephone instructions. The Fund
may be liable for any losses due to unauthorized or fraudulent instructions if
it does not follow reasonable procedures. Exchanges may also be made by mail.
Investors in Wrap Fee Accounts and Advisory Accounts interested in making an
exchange should contact their Financial Advisors to request the prospectus of
the other G.T. Global Mutual Fund(s) being considered. Other investors should
contact G.T. Global. See the Shareholder Account Manual in this prospectus for
more information.
OTHER INFORMATION ABOUT EXCHANGES. Purchases, redemptions and exchanges should
be made for investment purposes only. A pattern of frequent exchanges, purchases
and sales is not acceptable and can be limited by the Fund's or G.T. Global's
refusal to accept further purchase and exchange orders. The terms of the
exchange offer described above may be modified at any time, on 60 days' prior
written notice.
Prospectus Page 11
<PAGE>
G.T. GLOBAL DOLLAR FUND
HOW TO REDEEM SHARES
- --------------------------------------------------------------------------------
Fund shares may be redeemed without charge at net asset value. Redemption
requests may be transmitted to the Transfer Agent by telephone or by mail, in
accordance with the instructions provided in the Shareholder Account Manual. All
redemptions will be effected at the net asset value next determined after the
Transfer Agent has received the request and any required supporting
documentation. Redemption requests will not require a signature guarantee if the
redemption proceeds are to be sent either: (i) to the redeeming shareholder at
the shareholder's address of record as maintained by the Transfer Agent,
provided the shareholder's address of record has not been changed in the
preceding thirty days; or (ii) directly to a pre-designated bank, savings and
loan or credit union account ("Pre-Designated Account"). ALL OTHER REDEMPTION
REQUESTS MUST BE ACCOMPANIED BY A SIGNATURE GUARANTEE OF THE REDEEMING
SHAREHOLDER'S SIGNATURE. A signature guarantee can be obtained from any bank,
U.S. trust company, a member firm of a U.S. stock exchange or a foreign branch
of any of the foregoing or other eligible guarantor institution. A notary public
is not an acceptable guarantor.
Shareholders with Pre-Designated Accounts should request that redemption
proceeds be sent either by bank wire or by check. The minimum redemption amount
for a bank wire is $1,000. Shareholders requesting a bank wire should allow two
business days from the time the redemption request is effected for the proceeds
to be deposited in the shareholder's Pre-Designated Account. See "How to Redeem
Shares -- Other Important Redemption Information." Shareholders may change their
Pre-Designated Accounts only by a letter of instruction to the Transfer Agent
containing all account signatures, each of which must be guaranteed. The
Transfer Agent currently does not charge a bank wire service fee for each wire
redemption sent, but reserves the right to do so in the future. The
shareholder's bank may charge a bank wire service fee.
REDEMPTIONS BY TELEPHONE. Redemption requests may be made by telephone by
calling the Transfer Agent at the appropriate toll-free number provided in the
Shareholder Account Manual, provided telephone redemption forms have been signed
and filed. REDEMPTION REQUESTS MAY NOT BE MADE BY TELEPHONE FOR THIRTY DAYS
FOLLOWING ANY CHANGE OF THE SHAREHOLDER'S ADDRESS OF RECORD.
Shareholders automatically have telephone privileges to authorize redemptions.
The Fund, G.T. Global and the Transfer Agent shall not be liable for any loss or
damage for acting in good faith upon instructions received by telephone and
reasonably believed to be genuine. The Fund employs reasonable procedures to
confirm that instructions communicated by telephone are genuine, including
requiring some form of personal identification prior to acting upon instructions
received by telephone, providing written confirmation of such transactions,
and/or tape recording of telephone instructions. The Fund may be liable for any
losses due to unauthorized or fraudulent instructions if it does not follow
reasonable procedures.
REDEMPTIONS BY MAIL. Redemption requests should be mailed directly to the
Transfer Agent at the appropriate address provided in the Shareholder Account
Manual. As discussed above, requests for payment of redemption proceeds to a
party other than the shareholder of record and/or requests that redemption
proceeds be mailed to an address other than the shareholder's address of record
require a signature guarantee. In addition, if the shareholder's address of
record has been changed within the preceding thirty days, a signature guarantee
is required.
OTHER IMPORTANT REDEMPTION INFORMATION. A request for redemption will not be
processed until all of the necessary documentation has been received in good
order. A shareholder in a Wrap Fee Account or Advisory Account who is in doubt
about what documents are required should contact his or her Financial Advisor.
Except in extraordinary circumstances and as permitted under the 1940 Act,
payment for shares redeemed by telephone or by mail will be made promptly after
receipt of a redemption request, if in good order, but not later than seven days
after the date the request is executed. Requests for
Prospectus Page 12
<PAGE>
G.T. GLOBAL DOLLAR FUND
redemption which are subject to any special conditions or which specify a future
or past effective date cannot be accepted.
If the Transfer Agent is requested to redeem shares for which the Fund has not
yet received good payment, the Fund may delay payment of redemption proceeds
until it has assured itself that good payment has been collected for the
purchase of the shares. In the case of purchases by check, it can take up to 10
business days to confirm that the check has cleared and good payment has been
received. Redemption proceeds will not be delayed when shares have been paid for
by wire or when the investor's account holds a sufficient number of shares for
which funds already have been collected.
G.T. Global reserves the right to redeem the shares of any Advisory Account or
Wrap Fee Account if the amount invested in G.T. Global Mutual Funds through such
account is reduced to less than $25,000 through redemptions or other action by
the shareholder. Written notice will be given to the shareholder at least 60
days prior to the date fixed for such redemption, during which time the
shareholder may increase the amount invested in G.T. Global Mutual Funds through
such account to an aggregate amount of $25,000 or more.
For additional information on how to redeem shares, see the Shareholder Account
Manual in this Prospectus, or contact your Financial Advisor.
Prospectus Page 13
<PAGE>
G.T. GLOBAL DOLLAR FUND
SHAREHOLDER ACCOUNT MANUAL
- --------------------------------------------------------------------------------
Purchase, exchange and redemption orders may be placed in accordance with this
Manual. It is recommended that investors in Wrap Fee Accounts and Advisory
Accounts make such orders through their Financial Advisors. PLEASE BE CAREFUL TO
REFERENCE "ADVISOR CLASS" IN ALL INSTRUCTIONS PROVIDED. See "How to Invest,"
"How to Make Exchanges" and "How to Redeem Shares" for more information.
The Fund's Transfer Agent is G.T. GLOBAL INVESTOR SERVICES, INC.
INVESTMENTS BY MAIL
Send completed Account Application (if initial purchase) or letter stating Fund
name, class of shares, shareholder's registered name and account number (if
subsequent purchase) with a check to:
G.T. Global
P.O. Box 7345
San Francisco, California 94120-7345
INVESTMENTS BY BANK WIRE
A new account may be opened by calling 1-800-223-2138 to obtain an account
number. WITHIN SEVEN DAYS OF PURCHASE A COMPLETED ACCOUNT APPLICATION CONTAINING
THE APPROPRIATE TAXPAYER IDENTIFICATION NUMBER MUST BE SENT TO G.T. GLOBAL
INVESTOR SERVICES AT THE ADDRESS PROVIDED ABOVE UNDER "INVESTMENTS BY MAIL."
Wire instructions must state Fund name, class of shares, shareholder's
registered name and account number. Bank wires should be sent through the
Federal Reserve Bank Wire System to:
WELLS FARGO BANK N.A.
ABA 121000248
Attn: GT GLOBAL
Account No. 4023-050701
EXCHANGES BY TELEPHONE
Call G.T. Global at 1-800-223-2138
EXCHANGES BY MAIL
Send complete instructions, including name of Fund exchanging from, class of
shares, amount of exchange, name of the G.T. Global Mutual Fund exchanging into,
shareholder's registered name and account number, to:
G.T. Global
P.O. Box 7893
San Francisco, California 94120-7893
REDEMPTIONS BY TELEPHONE
Call G.T. Global at 1-800-223-2138
REDEMPTIONS BY MAIL
Send complete instructions, including name of Fund, amount of redemption,
shareholder's registered name and account number, to:
G.T. Global
P.O. Box 7893
San Francisco, California 94120-7893
OVERNIGHT MAIL
Overnight mail services do not deliver to post office boxes. To send purchase,
exchange or redemption orders by overnight mail, comply with the above
instructions but send to the following:
G.T. Global Investor Services
California Plaza
2121 N. California Boulevard
Suite 450
Walnut Creek, California 94596
ADDITIONAL QUESTIONS
Shareholders with additional questions regarding purchase, exchange and
redemption procedures may call G.T. Global at 1-800-223-2138.
Prospectus Page 14
<PAGE>
G.T. GLOBAL DOLLAR FUND
CALCULATION OF NET ASSET VALUE
- --------------------------------------------------------------------------------
The Fund intends to use its best efforts to maintain its net asset value at
$1.00 per share. There can be no assurance that the Fund will be able to
maintain a stable price of $1.00 per share. The value of each share of the Fund
is computed by dividing the Fund's net assets by the number of its outstanding
shares. "Net assets" equal the value of the Fund's investments and other assets
less its liabilities. The Fund's net asset value per share is computed once each
Business Day at the close of regular trading on the New York Stock Exchange
("NYSE") (currently 4:00 p.m. Eastern time, unless weather, equipment failure or
other factors contribute to an earlier closing time). Net asset value is
determined separately for each class of the Fund's shares.
The Fund values its portfolio securities using the amortized cost method of
valuation, pursuant to which the market value of an instrument is approximated
by amortizing the difference between the acquisition cost and value at maturity
of the instrument on a straight-line basis over its remaining life. All cash,
receivables and current payables are carried at their face value. Other assets,
if any, are valued at fair value as determined in good faith by or under the
direction of the Company's Board of Directors.
- --------------------------------------------------------------------------------
DIVIDENDS AND TAXES
- --------------------------------------------------------------------------------
DIVIDENDS. Dividends are declared daily and paid monthly from the Fund's net
investment income and any realized net short-term capital gain (the excess of
short-term capital gains over short-term capital losses). The Fund's net
investment income includes accrued interest and earned discount (including both
original issue and market discounts), less amortization of premium and
applicable expenses. Fund shares begin to earn dividends on the day following
the day on which Federal Funds become available. Dividends paid by the Fund with
respect to all classes of its shares are calculated in the same manner and at
the same time. The per share dividends on Advisor Class shares will be higher
than the per share dividends on shares of other classes of the Fund as a result
of the service and distribution fees applicable to those shares.
Dividends are automatically reinvested in Advisor Class shares unless the
investor has elected to receive them in cash. Cash payments may be elected on
the Account Application located at the end of this Prospectus or through the
investor's broker. An election to receive dividends in additional shares or in
cash may be changed at any time, but, to be effective for a particular dividend,
the investor or the investor's broker must notify the Transfer Agent at least
fifteen Business Days prior to the payment date. Shares earn dividends on the
day of redemption. THE FEDERAL INCOME TAX STATUS OF DIVIDENDS IS THE SAME
WHETHER THEY ARE RECEIVED IN CASH OR REINVESTED IN ADDITIONAL FUND SHARES.
The Fund does not expect to realize long-term capital gain and thus does not
anticipate payment of any capital gain distributions.
TAXES. The Fund intends to continue to qualify for treatment as a regulated
investment company under the Internal Revenue Code of 1986, as amended. In each
taxable year that the Fund so qualifies, the Fund (but not its shareholders)
will be relieved of federal income tax on that part of its investment company
taxable income (consisting of net investment income and any net short-term
capital gain) that is distributed to its shareholders. Such distributions are
taxable to the Fund's shareholders as ordinary income to the extent of the
Fund's earnings and profits, whether they are received in cash or reinvested in
additional Fund shares.
Prospectus Page 15
<PAGE>
G.T. GLOBAL DOLLAR FUND
The Fund provides federal tax information to its shareholders annually,
including information about dividends paid during the preceding year.
The Fund must withhold 31% of all dividends payable to any individuals and
certain other noncorporate shareholders who (i) have not furnished to the Fund a
correct taxpayer identification number or a properly completed claim for
exemption on Form W-8 or W-9 or (ii) otherwise are subject to backup
withholding.
Taxpayer identification numbers may be furnished on the Account Application
provided at the end of this Prospectus. Fund accounts opened via a bank wire
purchase (see "How to Invest -- Purchases Through the Distributor") are
considered to have uncertified taxpayer identification numbers unless a
completed Form W-8 or W-9 or Account Application is received by the Transfer
Agent within seven days after the purchase. A shareholder should contact the
Transfer Agent if the shareholder is uncertain whether a proper taxpayer
identification number is on file with the Fund.
The foregoing is only a summary of some of the important federal tax
considerations generally affecting the Fund and its shareholders. See "Dividends
and Taxes" in the Statement of Additional Information for a further discussion.
There may be other federal, state, local or foreign tax considerations
applicable to a particular investor. Prospective investors are therefore urged
to consult their tax advisers.
- --------------------------------------------------------------------------------
MANAGEMENT
- --------------------------------------------------------------------------------
The Company's Board of Directors has overall responsibility for the operation of
the Fund. Pursuant to such responsibility, the Board has approved contracts with
various financial organizations to provide, among other things, day to day
management services required by the Fund.
INVESTMENT MANAGEMENT AND ADMINISTRATION. Services provided by G.T. Capital as
the Fund's investment manager and administrator include, but are not limited to,
determining the composition of the Fund's portfolio and placing orders to buy,
sell or hold particular securities; furnishing corporate officers and clerical
staff; providing office space, services and equipment; and supervising all
matters relating to the Fund's operation. For these services, the Fund pays G.T.
Capital management and administration fees, computed daily and paid monthly, at
the annualized rate of 0.50% of the Fund's average daily net assets.
G.T. Capital, organized in 1973, provides investment management and/or
administration services to all the G.T. Global Mutual Funds as well as other
institutional, corporate and individual clients. The offices of G.T. Capital are
located at 50 California Street, 27th Floor, San Francisco, California 94111.
G.T. Capital is the U.S. member of the G.T. Group, an international investment
advisory organization founded in 1969 for the purpose of rendering international
portfolio management services to both institutional and individual clients.
Since the G.T. Group was established it has gained a reputation as a leader in
identifying and investing in emerging and established markets around the world.
As of April 1, 1995, total assets under G.T. Group management exceeded $20
billion. Of this amount, more than $17 billion was invested in the securities of
foreign issuers.
In addition to the San Francisco office, the G.T. Group maintains investment
offices in London, Hong Kong, Tokyo, Toronto, Singapore and Sydney. Many of G.T.
Capital's investment managers are natives of the countries in which they invest
and have the advantage of being close to the financial markets they follow and
speaking the languages of local corporate and government leaders. G.T. Capital's
experienced management team is situated to react quickly to changes in foreign
markets which are in time zones different from those in the United States.
G.T. Capital and the other companies in the G.T. Group are subsidiaries of BIL
GT Group Limited ("BIL GT Group"), a financial services holding company. BIL GT
Group in turn is controlled by the Prince of Liechtenstein Foundation, which
serves as the parent organization for the various business enterprises of the
Princely Family of Liechtenstein. Its principal business address is Herrengasse
12, FL-9490, Vaduz, Liechtenstein.
Prospectus Page 16
<PAGE>
G.T. GLOBAL DOLLAR FUND
In managing the Fund, G.T. Capital employs a team approach, taking advantage of
the resources of its various investment offices around the world in seeking to
achieve the Fund's objective. In addition, in managing the Fund these
individuals utilize the research and related work of other members of G.T.
Capital's investment staff. The investment professionals primarily responsible
for the portfolio management of the Fund are as follows:
GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
- -------------------------------------- -------------------------------------- --------------------------------------
<S> <C> <C>
Gary Kreps Overall supervision since 1992 Chief Investment Officer -- Global
San Francisco Fixed Income Investments for G.T.
Capital since 1992; From 1988 to
1992, Mr. Kreps was the Senior Vice
President for Global Fixed Income of
Putnam Management Co. (Boston)
Donald Shute Portfolio manager since 1991 Portfolio Manager for G.T. Capital
San Francisco since 1991; Assistant Portfolio
Manager of G.T. Capital from 1990 to
1991; From 1989 to 1990, Mr. Shute
was a Bond Analyst at Wells Fargo
Asset Management; Prior thereto, he
was an Equity Analyst at Security
Pacific Investment Research
</TABLE>
In placing orders for the Fund's portfolio transactions, G.T. Capital seeks to
obtain the best net results. The money market instruments in which the Fund
invests generally are traded on a "net" basis in over-the-counter ("OTC")
markets with a dealer acting as principal for its own account without a stated
commission, although the price of the security usually includes a profit
("spread") to the dealer. G.T. Capital has no agreement or commitment to place
orders with any dealer. On occasion, money market obligations may be purchased
directly from an issuer, in which case no spreads are paid. Consistent with its
obligation to obtain the best net results, G.T. Capital may consider a dealer's
sale of shares of the G.T. Funds as a factor in considering through whom
portfolio transactions will be effected.
DISTRIBUTION OF FUND SHARES. G.T. Global is the distributor, or principal
underwriter, of the Fund's Advisor Class shares. Like G.T. Capital, G.T. Global
is a subsidiary of BIL GT Group with offices at 50 California Street, 27th
Floor, San Francisco, California 94111.
G.T. Capital or an affiliate thereof may, from time to time, make ongoing
payments to brokerage firms, financial institutions (including banks) and others
that facilitate the administration and servicing of Advisor Class shareholder
accounts.
The Glass-Steagall Act and other applicable laws, among other things, generally
prohibit federally chartered or supervised banks from engaging in the business
of underwriting or distributing securities. Accordingly, G.T. Global intends to
engage banks (if at all) only to perform administrative and shareholder
servicing functions. Banks and broker/ dealer affiliates of banks also may
execute dealer agreements with G.T. Global for the purpose of selling shares of
the Fund. If a bank were prohibited from so acting, its shareholder clients
would be permitted to remain shareholders, and alternative means for continuing
the servicing of such shareholders would be sought. It is not expected that
shareholders would suffer any adverse financial consequences as a result of any
of these occurrences.
Prospectus Page 17
<PAGE>
G.T. GLOBAL DOLLAR FUND
OTHER INFORMATION
- --------------------------------------------------------------------------------
STATEMENTS AND REPORTS TO SHAREHOLDERS. Shareholders receive monthly statements
from the Transfer Agent detailing account transactions, such as an additional
investment, redemption or the payment of a dividend or distribution.
ORGANIZATION. The Company was organized as a Maryland corporation in 1981 and is
registered with the SEC as an open-end diversified management investment
company. In July 1985, the name of the Company was changed from "Advisors Cash
Reserve Fund, Inc." to "Advisors Cash Reserves, Inc." In November 1987, the name
of the Company was changed to "G.T. Money Market Series, Inc." and in April
1989, the Company changed its name to "G.T. Investment Portfolios, Inc."
Effective May 1, 1991, the Fund changed its name from "G.T. Money Market Fund"
to "G.T. Global Dollar Fund."
From time to time, the Board of Directors may, at its discretion, establish
additional funds, each corresponding to a distinct investment portfolio and a
distinct series of the Company's common stock.
Advisor Class shares are offered through this prospectus to certain enumerated
institutional and other investors. There are two other classes of shares offered
to investors through a separate prospectus: Class A shares and Class B shares.
CLASS A. Class A shares are sold at net asset value. Class A shares of the Fund
may bear annual service and distribution fees of up to 0.25% of the average
daily net assets of that class although G.T. Global does not currently intend to
seek any reimbursements thereunder. Unless the Class A shares of the Fund were
purchased via exchange for shares of another G.T. Global Mutual Fund, a sales
load will apply to exchanges from the Fund into other G.T. Global Mutual Funds.
For the fiscal year ended December 31, 1994, total operating expenses for the
Class A shares were 1.00% for the Fund.
CLASS B. Class B shares of the Fund are available only through an exchange of
Class B shares of other G.T. Global Mutual Funds. No contingent deferred sales
charge ("CDSC") will be imposed on the exchange out of Class B shares of any
G.T. Global Mutual Fund and into the Fund. A shareholder's holding period of
Class B shares of the Fund would be counted for purposes of measuring the CDSC
to which the shareholder's redemption would be subject. A shareholder will be
assessed a CDSC, if applicable, upon redemption of the Class B shares of the
Fund, but no CDSC will be imposed on the exchange out of the Fund into another
G.T. Global Mutual Fund.
Class B shares may bear annual service and distribution fees of up to 1.00% of
the average daily net assets of that class; however, G.T. Global does not
currently intend to seek reimbursement of amounts in excess of 0.75% of the
average daily net assets of the Class B shares thereunder. Upon a redemption of
Class B shares, investors pay a CDSC of up to 5% of the lesser of the original
purchase price or the net asset value of such shares at the time of redemption.
The deferred sales charge is waived for certain redemptions and is reduced for
shares held more than one year. For the fiscal year ended December 31, 1994,
total operating expenses for the Class B shares were 1.75%.
The different expenses borne by each class of shares will result in different
dividends. The per share dividends on Advisor Class shares of the Fund will
generally be higher than the per share dividends on Class A and B shares of the
Fund as a result of the service and distribution fees applicable with respect to
Class A and B shares. Consequently, during comparable periods, the Fund expects
that the total return on an investment in shares of the Advisor Class will be
higher than the total return on Class A and B shares.
Pursuant to the Company's Articles of Amendment and Restatement, the Company may
issue two billion shares. Of this number, one billion five hundred million
shares have been classified as shares of the Fund; five hundred million shares
have been classified as Class A shares, five hundred million have been
classified as Class B shares and five hundred million have been classified as
Advisor Class shares. These amounts may be increased from time to time at the
discretion of the Board of Directors. Each share of the Fund represents an
interest in the Fund only, has a par value
Prospectus Page 18
<PAGE>
G.T. GLOBAL DOLLAR FUND
of $0.001 per share, represents an equal proportionate interest in the Fund with
other shares of the Fund and is entitled to such dividends and other
distributions out of the income earned and gain realized on the assets belonging
to the Fund as may be declared at the discretion of the Board of Directors. Each
Class A, Class B and Advisor Class share of the Fund is equal as to earnings,
assets and voting privileges except as noted below, and each class bears the
expenses related to the distribution of its shares. Shares of the Fund when
issued are fully paid and nonassessable. A salesperson and any other person
entitled to receive compensation for selling or servicing Shares may receive
different compensation with respect to one particular class of Shares over
another in the Fund.
Fund shares are entitled to one vote per share (with proportional voting for
fractional shares) and are freely transferable. Shareholders have no preemptive
or conversion rights. Shares may be voted on the election of Directors and on
other matters submitted to the vote of Fund shareholders. If one or more
additional funds were established, on any matter submitted to a vote of
shareholders, shares of each fund would be voted by that fund's shareholders
individually when the matter affected the specific interest of that fund only,
such as approval of that fund's investment advisory arrangements. In addition,
each class of shares has exclusive voting rights with respect to its
distribution plan. The shares of all the Company's funds would be voted in the
aggregate on other matters, such as the election of Directors and ratification
of the Directors' selection of the Company's independent accountants.
The Company normally will not hold meetings of shareholders except as required
under the 1940 Act. The Company would be required to hold a shareholders'
meeting in the event that at any time less than a majority of the Directors
holding office had been elected by shareholders. Directors shall continue to
hold office until their successors are elected and have qualified. Shares of the
Company do not have cumulative voting rights, which means that the holders of a
majority of the shares voting for the election of Directors can elect all the
Directors. A Director may be removed upon a majority vote of the shareholders
qualified to vote in the election. Shareholders holding 10% of the Company's
outstanding voting securities may call a meeting of shareholders for the purpose
of voting upon the question of removal of any Director or for any other purpose.
The 1940 Act requires the Company to assist shareholders in calling such a
meeting.
SHAREHOLDER INQUIRIES. Shareholder inquiries may be made by calling the Fund at
(800) 223-2138 or by writing to the Fund at P.O. Box 7893 San Francisco, CA
94120-7893.
PERFORMANCE INFORMATION. From time to time the Fund may advertise its "yield"
and "effective yield" in advertisements or promotional materials ("Performance
Advertisements"). Both yield and effective yield are calculated separately for
Class A, Class B and Advisor Class shares of the Fund. Both yield figures are
based on historical earnings and are not intended to indicate future
performance. It can be expected that these yields will fluctuate substantially.
The "yield" of the Fund refers to the income generated by an investment in the
Fund over a seven-day period (which period will be stated in the advertisement).
This income is then "annualized." That is, the amount of income generated by the
investment during that week is assumed to be generated each week over a 52-week
period and is shown as a percentage of the investment. The "effective yield" is
calculated similarly but, when annualized, the income earned by an investment in
the Fund is assumed to be reinvested. The "effective yield" will be slightly
higher than the "yield" because of the compounding effect of this assumed
reinvestment. The Fund's "yield" and "effective yield" may reflect expenses
after reimbursement pursuant to an undertaking that may be in effect. See
"Management." The Statement of Additional Information describes the methods used
to calculate the Fund's yield and effective yield.
In Performance Advertisements, the Fund may quote its average annual total
return ("Standardized Return"). Standardized Return is calculated separately for
each class of shares of the Fund. Standardized Return shows percentage rates
reflecting the average annual change in the value of an assumed investment in
the Fund at the end of a one-year period and at the end of five- and ten-year
periods, reduced by the maximum applicable sales charge imposed on sales of Fund
shares. If a one-, five- and/or ten-year period has not yet elapsed, data will
be provided as to the end of a shorter period corresponding to the life of the
Fund. Standardized Return assumes the reinvestment of all dividends and capital
gain distributions at net asset value on the reinvestment date established by
the Board of Directors.
In addition, in order to more completely represent the Fund's performance or
more accurately
Prospectus Page 19
<PAGE>
G.T. GLOBAL DOLLAR FUND
compare such performance to other measures of investment return, the Fund also
may include in advertisements, sales literature and shareholder reports other
total return performance data ("Non-Standardized Return"). Non-Standardized
Return reflects percentage rates of return encompassing all elements of return;
it assumes reinvestment of all dividends and capital gain distributions.
Non-Standardized Return may be quoted for the same or different periods as those
for which Standardized Return is quoted; it may consist of an aggregate or
average annual percentage rate of return, actual year-by-year rates or any
combination thereof. Non-Standardized Return may or may not take sales charges
into account; performance data calculated without taking the effect of sales
charges into account will be higher than data including the effect of such
charges.
The Fund's performance data reflects past performance and is not necessarily
indicative of future results. The Fund's investment results will vary from time
to time depending upon market conditions, the composition of its portfolio and
its operating expenses. These factors and possible differences in calculation
methods should be considered when comparing the Fund's investment results with
those published for other investment companies, other investment vehicles and
unmanaged indices. The Fund's results also should be considered relative to the
risks associated with its investment objective and policies. The Fund will
include performance data for all classes of shares of the Fund in any
advertisement or information including performance data for such Fund. See
"Investment Results" in the Statement of Additional Information.
The Fund's Annual Report contains additional information with respect to its
performance. The Annual Report is available to investors upon request and free
of charge.
TRANSFER AGENT. Shareholder servicing, reporting and general transfer agent
functions for the Fund are performed by G.T. Global Investor Services, Inc. The
Transfer Agent is an affiliate of G.T. Capital and G.T. Global, a subsidiary of
BIL GT Group and maintains offices at 50 California Street, 27th Floor, San
Francisco, CA 94111.
CUSTODIAN AND ACCOUNTING AGENT. State Street Bank and Trust Company, 225
Franklin Street, Boston, Massachusetts 02110 is custodian of the Fund's assets
and serves as the Fund's accounting agent.
COUNSEL. The law firm of Kirkpatrick & Lockhart LLP 1800 M Street, N.W.,
Washington, D.C., 20036-5891, acts as counsel to the Fund. Kirkpatrick &
Lockhart LLP also acts as counsel to G.T. Capital, G.T. Global and G.T. Global
Investor Services, Inc. in connection with other matters.
INDEPENDENT ACCOUNTANTS. The Company's and the Fund's independent accountants
are Coopers & Lybrand L.L.P., One Post Office Square, Boston, Massachusetts
02109. Coopers & Lybrand L.L.P. conducts an annual audit of the Fund, assists in
the preparation of the Fund's federal and state income tax returns and consults
with the Company and the Fund as to matters of accounting, regulatory filings,
and federal and state income taxation.
MULTIPLE TRANSLATIONS OF THE PROSPECTUS. This Prospectus may be translated into
other languages. In the event of any inconsistency or ambiguity as to the
meaning of any word or phrase contained in a translation, the English text shall
prevail.
Prospectus Page 20
<PAGE>
<TABLE>
<S> <C> <C>
[G.T. GLOBAL LOGO]
G.T. GLOBAL
MUTUAL FUNDS
P.O. Box 7345 ADVISOR CLASS
SAN FRANCISCO, CA 94120-7345 ACCOUNT APPLICATION
800/223-2138
</TABLE>
<TABLE>
<S> <C> <C>
/ / INDIVIDUAL / / JOINT TENANT / / GIFT/TRANSFER FOR MINOR / / TRUST / / CORP.
ACCOUNT REGISTRATION / / NEW ACCOUNT / / ACCOUNT REVISION (Account No.: -------------------------------------)
NOTE: Trust registrations should specify name of trustee(s), beneficiary(ies) and date of trust instrument. Registration for
Uniform Gifts/Transfers to Minors accounts should be in the name of one custodian and one minor and include the state under
which the custodianship is created.
----------------------------------------------------------------
- ------------------------------------------------------------ Social Security Number / / or Tax I.D. Number / / (Check
Owner applicable box)
- ------------------------------------------------------------ If more than one owner, social security number or taxpayer
Co-owner 1 identification number should be provided for first owner listed.
- ------------------------------------------------------------ If a purchase is made under Uniform Gift/Transfer to Minors Act,
Co-owner 2 social security number of the minor must be provided.
Resident of / / U.S. / / Other (specify) ----------------
- -------------------------------------------------------------------------------------- ( )
Street Address ---------------------------
- -------------------------------------------------------------------------------------- Home Telephone
City, State, Zip Code ( )
---------------------------
Business Telephone
FUND SELECTION $25,000 total minimum initial investment is required. Checks should be made payable to "G.T. GLOBAL."
</TABLE>
<TABLE>
<S> <C> <C> <C>
INITIAL INITIAL
INVESTMENT INVESTMENT
407 / / G.T. GLOBAL WORLDWIDE GROWTH FUND $ 402 / / G.T. GLOBAL NEW PACIFIC GROWTH FUND $
---------- ----------
405 / / G.T. GLOBAL INTERNATIONAL GROWTH FUND $ 403 / / G.T. GLOBAL EUROPE GROWTH FUND $
---------- ----------
416 / / G.T. GLOBAL EMERGING MARKETS FUND $ 413 / / G.T. LATIN AMERICA GROWTH FUND $
---------- ----------
411 / / G.T. GLOBAL HEALTH CARE FUND $ 406 / / G.T. GLOBAL AMERICA GROWTH FUND $
---------- ----------
415 / / G.T. GLOBAL TELECOMMUNICATIONS FUND $ 404 / / G.T. GLOBAL JAPAN GROWTH FUND $
---------- ----------
419 / / G.T. GLOBAL INFRASTRUCTURE FUND $ 410 / / G.T. GLOBAL GROWTH & INCOME FUND $
---------- ----------
417 / / G.T. GLOBAL FINANCIAL SERVICES FUND $ 409 / / G.T. GLOBAL GOVERNMENT INCOME FUND $
---------- ----------
421 / / G.T. GLOBAL NATURAL RESOURCES FUND $ 408 / / G.T. GLOBAL STRATEGIC INCOME FUND $
---------- ----------
422 / / G.T. GLOBAL CONSUMER PRODUCTS $ 418 / / G.T. GLOBAL HIGH INCOME FUND $
AND SERVICES FUND ---------- ----------
401 / / G.T. GLOBAL DOLLAR FUND $
----------
TOTAL INITIAL INVESTMENT: $
----------
</TABLE>
AGREEMENTS & SIGNATURES
By the execution of this Account Application, I/we represent and warrant that
I/we have full right, power and authority and am/are of legal age in my/our
state of residence to make the investment applied for pursuant to this
Application. The person(s), if any, signing on behalf of the investor
represent and warrant that they are duly authorized to sign this Application
and to purchase, redeem or exchange shares of the Fund(s) on behalf of the
investor. I/WE HEREBY AFFIRM THAT I/WE HAVE RECEIVED A CURRENT ADVISOR CLASS
PROSPECTUS OF THE G.T. FUND(S) IN WHICH I/WE AM/ARE INVESTING AND I/WE AGREE
TO ITS TERMS AND CONDITIONS.
I/WE AND MY/OUR AGENTS, ASSIGNS AND SUCCESSORS UNDERSTAND AND AGREE THAT THE
ACCOUNT WILL BE SUBJECT TO THE TELEPHONE EXCHANGE AND TELEPHONE REDEMPTION
PRIVILEGES DESCRIBED IN THE CURRENT PROSPECTUS TO WHICH THIS APPLICATION IS
ATTACHED AND AGREE THAT G.T. GLOBAL FINANCIAL SERVICES, INC., G.T. GLOBAL
GROWTH SERIES, G.T. INVESTMENT FUNDS, INC., G.T. INVESTMENT PORTFOLIOS, INC.
AND THE FUNDS' TRANSFER AGENT, THEIR OFFICERS AND EMPLOYEES, WILL NOT BE
LIABLE FOR ANY LOSS OR DAMAGES ARISING OUT OF ANY SUCH TELEPHONE, TELEX OR
TELEGRAPHIC INSTRUCTIONS REASONABLY BELIEVED TO BE GENUINE, INCLUDING ANY SUCH
LOSS OR DAMAGES DUE TO NEGLIGENCE ON THE PART OF SUCH ENTITIES. THE
INVESTOR(S) CERTIFY(IES) AND AGREE(S) THAT THE CERTIFICATIONS, AUTHORIZATIONS,
DIRECTIONS AND RESTRICTIONS CONTAINED HEREIN WILL CONTINUE UNTIL G.T. GLOBAL
FINANCIAL SERVICES, INC., G.T. GLOBAL GROWTH SERIES, G.T. INVESTMENT FUNDS,
INC., G.T. INVESTMENT PORTFOLIOS, INC. OR THE FUNDS' TRANSFER AGENT RECEIVES
WRITTEN NOTICE OF ANY CHANGE OR REVOCATION. ANY CHANGE IN THESE INSTRUCTIONS
MUST BE IN WRITING AND IN SOME CASES, AS DESCRIBED IN THE PROSPECTUS, REQUIRES
THAT ALL SIGNATURES BE GUARANTEED.
PLEASE INDICATE THE NUMBER OF SIGNATURES REQUIRED TO PROCESS CHECKS OR
WRITTEN REDEMPTION REQUESTS: / / ONE / / TWO / / THREE / / FOUR.
(If you do not indicate the number of required signatures, ALL account
owners must sign checks and/or written redemption requests.)
Under penalties of perjury, I certify that the Taxpayer Identification
Number provided on this form is my (or my employer's, trust's, minor's or
other payee's) true, correct and complete Number and may be assigned to any
new account opened under the exchange privilege. I further certify that I am
(or the payee whose Number is given is) not subject to backup withholding
because: (a) I am (or the payee is) exempt from backup withholding; (b) the
Internal Revenue Service has not notified me that I am (or the payee is)
subject to backup withholding as a result of a failure to report all interest
or dividends; OR (c) the I.R.S. has notified me that I am (the payee is) no
longer subject to backup withholding;
OR, / / I am (the payee is) subject to backup withholding.
ALL ACCOUNT OWNERS MUST SIGN BELOW (Minors are not authorized signers)
Account revisions may require that signatures be guaranteed. Please see the
Prospectus.
<TABLE>
<S> <C>
----------------------------------------------------------
Date
X X
---------------------------------------------------------- ----------------------------------------------------------
X X
---------------------------------------------------------- ----------------------------------------------------------
</TABLE>
<PAGE>
ACCOUNT PRIVILEGES
CHECKWRITING PRIVILEGE
Checkwriting privilege available on Advisor Class shares of G.T. Global Dollar
Fund and G.T. Global Government Income Fund.
/ / Check here if desired. You will be sent a book of checks.
CAPITAL GAINS AND DIVIDEND DISTRIBUTIONS
All capital gains and dividend distributions will be reinvested in additional
shares of Advisor class unless appropriate boxes below are checked:
/ / Pay capital gain distributions only in cash / / Pay dividends only in
cash / / Pay capital gain distributions AND dividends in cash.
SPECIAL CAPITAL GAINS AND DIVIDEND DISTRIBUTIONS OPTION
Pay distributions noted above to another G.T. Global Fund: Fund Name
- -----------------------------------------
<TABLE>
<S> <C>
TELEPHONE EXCHANGE AND REDEMPTION AUTHORITY TO TRANSMIT REDEMPTION PROCEEDS TO
PRE-DESIGNATED ACCOUNT
I/We, either directly or through the Authorized Agent, if any, named By completing the following section, redemptions that
below, hereby authorize the Transfer Agent of the G.T. Global Mutual exceed $1,000 may be wired or mailed to a Pre-Designated
Funds, to honor any telephone, telex or telegraphic instructions Account at your bank. (Wiring instructions may be obtained
reasonably believed to be authentic for redemption and/or exchange from your bank.) A bank wire service fee may be charged.
between a similar class of shares of any of the Funds distributed by ----------------------------------------------------------
G.T. Global Financial Services, Inc. Name of Bank
----------------------------------------------------------
Bank Address
----------------------------------------------------------
Bank A.B.A Number Account Number
----------------------------------------------------------
Names(s) in which Bank Account is Established
A corporation (or partnership) must also submit a
"Corporate Resolution" (or "Certificate of Partnership")
indicating the names and titles of Officers authorized to
act on its behalf.
</TABLE>
<TABLE>
<S> <C> <C> <C>
FOR USE BY AUTHORIZED AGENT ONLY
We hereby submit this Account Application for the purchase of Advisor Class shares in accordance with the terms of our Advisor Class
Agreement with G.T. Global Financial Services, Inc. and with the Prospectus and Statement of Additional Information of each Fund
purchased.
- ------------------------------------------------------------------------------------------------------------------------------------
Advisor's Name
- ------------------------------------------------------------------------------------------------------------------------------------
Main Office Address Branch Number (if applicable) Representative's Number Representative's
Name
( )
- -------------------------------------------------------------------------------------------------------------------------
Branch Address Telephone
- -------------------------------------------------------------------------------------------------------------------------
Advisor's Authorized Signature Title
</TABLE>
<PAGE>
G.T. GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 21
<PAGE>
G.T. GLOBAL DOLLAR FUND
[LOGO]
G.T. GLOBAL GROUP OF FUNDS
G.T. GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY
INVESTORS' PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE
G.T. GLOBAL MUTUAL FUNDS, PLEASE CONTACT G.T. GLOBAL OR YOUR FINANCIAL
ADVISOR.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
G.T. GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
G.T. GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside
the U.S.
G.T. GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
G.T. GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
G.T. GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
G.T. GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
G.T. GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
G.T. GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
G.T. GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
/ / REGIONALLY DIVERSIFIED FUNDS
G.T. GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
G.T. GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
G.T. LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
G.T. GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
G.T. GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
G.T. GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
G.T. GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
G.T. GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
G.T. GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
G.T. GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN THIS PROSPECTUS
AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED
UPON AS HAVING BEEN AUTHORIZED BY G.T. GLOBAL DOLLAR FUND, G.T. CAPITAL
MANAGEMENT, INC., G.T. INVESTMENT PORTFOLIOS, INC., OR G.T. GLOBAL FINANCIAL
SERVICES, INC. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR
SOLICITATION OF ANY OFFER TO BUY ANY OF THE SECURITIES OFFERED HEREBY IN ANY
JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER IN SUCH
JURISDICTION.
DOLPV506020MC
<PAGE>
[LOGO]
G.T. GLOBAL DOLLAR FUND:
ADVISOR CLASS
50 California Street, 27th Floor
San Francisco, California 94111-4624
(415) 392-6181
Toll Free: (800) 824-1580
Statement of Additional Information
March 1, 1995
- --------------------------------------------------------------------------------
G.T. Global Dollar Fund ("Fund") is a diversified series of G.T. Investment
Portfolios, Inc. ("Company"), a registered open-end management investment
company. This Statement of Additional Information relating to the Advisor Class
shares of the Fund, which is not a prospectus, supplements and should be read in
conjunction with the Fund's current Advisor Class Prospectus dated March 1,
1995, a copy of which is available without charge by writing to the above
address or calling the Fund at the toll-free telephone number printed above.
G.T. Capital Management, Inc. ("G.T. Capital") serves as the Fund's investment
manager and administrator. The distributor of the Fund's shares is G.T. Global
Financial Services, Inc. ("G.T. Global"). The Fund's transfer agent is G.T.
Global Investor Services, Inc. ("G.T. Services" or "Transfer Agent").
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Investment Objective and Policies........................................................................................ 2
Investment Limitations................................................................................................... 4
Directors and Executive Officers......................................................................................... 5
Management............................................................................................................... 7
Dividends and Taxes...................................................................................................... 8
Information Relating to Sales and Redemptions............................................................................ 9
Valuation of Fund Shares................................................................................................. 10
Execution of Portfolio Transactions...................................................................................... 11
Additional Information................................................................................................... 12
Investment Results....................................................................................................... 13
Description of Debt Ratings.............................................................................................. 18
Financial Statements..................................................................................................... 19
</TABLE>
Statement of Additional Information Page 1
<PAGE>
G.T. GLOBAL DOLLAR FUND
INVESTMENT OBJECTIVE
AND POLICIES
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
The investment objective of the Fund is maximum current income consistent with
liquidity and conservation of capital. The Fund seeks its objective by investing
in high quality, U.S. dollar-denominated money market instruments.
CHANGES IN A SECURITY'S RATING
Subsequent to the purchase of a security by the Fund, the security may cease to
be rated or its rating may be reduced below the minimum rating required for its
purchase, as described in the Prospectus. In such event the Fund, the Company's
Board of Directors and G.T. Capital will review the situation and take
appropriate action in accordance with procedures adopted by the Company's Board
of Directors pursuant to Rule 2a-7 under the Investment Company Act of 1940, as
amended ("1940 Act").
VARIABLE AND FLOATING RATE OBLIGATIONS
Floating and variable rate demand notes and bonds are obligations ordinarily
having stated maturities in excess of 13 months, but which permit the holder to
demand payment of principal at any time, or at specified intervals not exceeding
13 months, in each case upon not more than 30 days' notice. The issuer of such
obligations generally has a corresponding right, after a given period, to prepay
in its discretion the outstanding principal amount of the obligation plus
accrued interest upon a specified number of days' notice to the holders thereof.
The interest rates payable on certain securities in which the Fund may invest
are not fixed and may fluctuate based upon changes in market rates. Variable and
floating rate obligations have interest rates that are adjusted at designated
intervals or whenever there are changes in the market rates of interest on which
the interest rates are based. Variable and floating rate obligations permit the
Fund to "lock in" the current interest rate for only the period until the next
rate adjustment, but the rate adjustment feature tends to limit the extent to
which the market value of the obligation will fluctuate.
BANKERS' ACCEPTANCES
Bankers' acceptances are negotiable obligations of a bank to pay a draft which
has been drawn on it by a customer. These obligations are backed by large banks
and usually are backed by goods in international trade.
CERTIFICATES OF DEPOSIT
Certificates of deposit are negotiable certificates representing a commercial
bank's obligations to repay funds deposited with it, earning specified rates of
interest over a given period of time.
COMMERCIAL PAPER
Commercial paper consists of short-term promissory notes issued by large
corporations with a high quality rating to finance short-term credit needs.
U.S. GOVERNMENT OBLIGATIONS
U.S. government obligations are debt securities issued or guaranteed by the U.S.
Treasury or by an agency or instrumentality of the U.S. government. However, not
all U.S. government obligations are backed by the full faith and credit of the
United States. For example, securities issued by the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation and the Tennessee Valley
Authority are supported only by the credit of the issuer. There is no guarantee
that the U.S. government will provide support to such U.S. government sponsored
agencies as it is not so obligated by law. Therefore the purchase of such
securities involves more risk than investment in other U.S. government
obligations.
REPURCHASE AGREEMENTS
Repurchase agreements are transactions by which the Fund purchases a security
and simultaneously commits to resell that security to the seller at an agreed
upon price on an agreed upon date within a number of days from the date of
purchase. The resale price reflects the purchase price plus an agreed upon
incremental amount. In the event of bankruptcy of the other party to a
repurchase agreement, the Fund could experience delays in recovering cash. To
the extent that, in the meantime, the value of the securities purchased may have
decreased, the Fund could experience a loss. In all cases, the creditworthiness
of the other party to a transaction is reviewed and found satisfactory by G.T.
Capital.
Statement of Additional Information Page 2
<PAGE>
G.T. GLOBAL DOLLAR FUND
The Fund will invest only in repurchase agreements collateralized at all times
in an amount at least equal to the repurchase price plus accrued interest. To
the extent that the proceeds from any sale of such collateral upon a default in
the obligation to repurchase were less than the repurchase price, the Fund would
suffer a loss. If the financial institution which is party to the repurchase
agreement petitions for bankruptcy or otherwise becomes subject to bankruptcy or
other liquidation proceedings, there may be restrictions on the Fund's ability
to sell the collateral and the Fund could suffer a loss. However, with respect
to financial institutions whose bankruptcy or liquidation proceedings are
subject to the U.S. Bankruptcy Code, the Fund intends to comply with provisions
under the U.S. Bankruptcy Code that would allow it immediately to resell the
collateral. There is no limitation on the amount of the Fund's assets that may
be subject to repurchase agreements at any given time. The Fund will not enter
into a repurchase agreement with a maturity of more than seven days if, as a
result, more than 10% of the value of its net assets would be invested in such
repurchase agreements and other illiquid investments.
DELAYED DELIVERY TRANSACTIONS
The Fund may buy and sell securities on a when-issued or delayed delivery basis,
with payment and delivery taking place at a future date. The market value of
securities purchased in this way may change before the delivery date, which
could increase fluctuations in the Fund's yield. Ordinarily, the Fund will not
earn interest on securities purchased until they are delivered.
ILLIQUID SECURITIES
The Fund will not invest more than 10% of its total assets in illiquid
securities. The term "illiquid securities" for this purpose means securities
that cannot be disposed of within seven days in the ordinary course of business
at approximately the amount at which the Fund has valued the securities and
includes, among other things, repurchase agreements maturing in more than seven
days, and restricted securities other than those G.T. Capital has determined to
be liquid pursuant to guidelines established by the Company's Board of
Directors. Commercial paper issues in which the Fund may invest include
securities issued by major corporations without registration under the
Securities Act of 1933 ("1933 Act") in reliance on the exemption from such
registration afforded by Section 3(a)(3) thereof and commercial paper issued in
reliance on the so-called "private placement" exemption from registration
afforded by Section 4(2) of the 1933 Act ("Section 4(2) paper"). Section 4(2)
paper is restricted as to disposition under the federal securities laws in that
any resale must similarly be made in an exempt transaction. Section 4(2) paper
is normally resold to other institutional investors through or with the
assistance of investment dealers who make a market in Section 4(2) paper, thus
providing liquidity.
In recent years a large institutional market has developed for certain
securities that are not registered under the 1933 Act, including private
placements, repurchase agreements, commercial paper, foreign securities and
corporate bonds and notes. These instruments are often restricted securities
because the securities are sold in transactions not requiring registration.
Institutional investors generally will not seek to sell these instruments to the
general public, but instead will often depend either on an efficient
institutional market in which such unregistered securities can be readily resold
on or an issuer's ability to honor a demand for repayment. Therefore, the fact
that there are contractual or legal restrictions on resale to the general public
or certain institutions is not dispositive of the liquidity of such investments.
Rule 144A under the 1933 Act establishes a "safe harbor" from the registration
requirements of the 1933 Act for resales of certain securities to qualified
institutional buyers. Institutional markets for restricted securities that might
develop as a result of Rule 144A could provide both readily ascertainable values
for restricted securities and the ability to liquidate an investment in order to
satisfy share redemption orders. Such markets might include automated systems
for the trading, clearance and settlement of unregistered securities, such as
the PORTAL System sponsored by the National Association of Securities Dealers,
Inc. An insufficient number of qualified institutional buyers interested in
purchasing certain restricted securities held by the Fund, however, could affect
adversely the marketability of such portfolio securities and the Fund might be
unable to dispose of such securities promptly or at reasonable prices.
The Board of Directors has delegated the function of making day-to-day
determinations of liquidity to G.T. Capital, pursuant to guidelines approved by
the Board. G.T. Capital takes into account a number of factors in reaching
liquidity decisions, including (1) the frequency of trades for the security, (2)
the number of dealers that make quotes for the security, (3) the number of
dealers that have undertaken to make a market in the security, (4) the number of
other potential purchasers and (5) the nature of the security and how trading is
effected (E.G., the time needed to sell the security, how offers are solicited
and the mechanics of transfer). G.T. Capital will monitor the liquidity of
restricted securities held by the Fund and report periodically on such decisions
to the Board.
Statement of Additional Information Page 3
<PAGE>
G.T. GLOBAL DOLLAR FUND
INVESTMENT LIMITATIONS
- --------------------------------------------------------------------------------
The Fund has adopted the following investment restrictions as fundamental
policies which may not be changed without approval by the holders of the lesser
of (i) 67% of the Fund's shares represented at a meeting at which more than 50%
of the outstanding shares are represented, and (ii) more than 50% of the Fund's
outstanding shares. The Fund may not:
(1) Purchase common stocks, preferred stocks, warrants or other equity
securities;
(2) Issue senior securities;
(3) Pledge, mortgage or hypothecate its assets except to secure
borrowings as disclosed in the Prospectus;
(4) Sell securities short, purchase securities on margin, or engage in
option transactions;
(5) Underwrite the sale of securities of other issuers;
(6) Purchase or sell real estate interests, commodities or commodity
contracts or oil and gas investments;
(7) Make loans, except: (i) the purchase of debt securities in
accordance with the Fund's objectives and policies shall not be considered
making loans, and (ii) pursuant to contracts providing for the compensation
of service provided by compensating balances;
(8) Purchase the securities issued by other investment companies, except
as they may be acquired as part of a merger, consolidation or acquisition of
assets; and
(9) Invest more than 25% of the value of the Fund's assets in securities
of issuers in any one industry, except that the Fund is permitted to invest
without such limitation in U.S. government-backed obligations.
For purposes of the Fund's concentration policy contained in limitation (9),
above, the Fund intends to comply with the Securities and Exchange Commission
("SEC") staff position that securities issued or guaranteed as to principal and
interest by any single foreign government are considered to be securities of
issuers in the same industry.
If a percentage restriction is adhered to at the time of investment, a later
increase or decrease in percentage resulting from a change in values or assets
will not constitute a violation of that restriction.
An additional investment policy of the Fund, which is not a fundamental policy
and may be changed by vote of the Company's Board of Directors without
shareholder approval to the extent consistent with regulatory requirements,
provides that the Fund may not invest more than 10% of its total assets in
illiquid securities.
Statement of Additional Information Page 4
<PAGE>
G.T. GLOBAL DOLLAR FUND
DIRECTORS AND EXECUTIVE
OFFICERS
- --------------------------------------------------------------------------------
The Company's By-Laws authorize a Board of Directors of between 1 and 25
persons, as fixed by the Board of Directors. Directors normally are elected by
shareholders; however, a majority of remaining Directors may fill Director
vacancies caused by resignation, death or expansion of the Board. The Company's
Directors and Executive Officers are listed below.
<TABLE>
<CAPTION>
NAME, POSITION(S) WITH THE PRINCIPAL OCCUPATIONS AND BUSINESS
COMPANY AND ADDRESS EXPERIENCE FOR PAST 5 YEARS
- --------------------------------------- ------------------------------------------------------------------------------------------
<S> <C>
David A. Minella*, 42 Director of BIL G.T. Group Limited (holding company of the various international G.T.
Director, Chairman of the Board and companies) since 1990; Director and President of G.T. Capital since 1989; Director and
President President of G.T. Global since 1987; and Director and President of G.T. Services since
50 California St. 1990. Mr. Minella also is a director or trustee of each of the other investment companies
San Francisco, CA 94111 registered under the 1940 Act that is managed or administered by G.T. Capital.
C. Derek Anderson, 53 Chairman, Anderson Capital Management, Inc. from 1988 to present; Chairman, Plantagenet
Director Holdings, Ltd. from 1991 to present; Director, Munsingwear, Inc.; Director, American
220 Sansome Street Heritage Group Inc.; Director, T.L. Higgins Inc. and various other companies. Mr. Anderson
Suite 400 also is a director or trustee of each of the other investment companies registered under
San Francisco, CA 94104 the 1940 Act that is managed or administered by G.T. Capital.
Frank S. Bayley, 55 A partner of Baker & McKenzie (a law firm), and serves as Director and Chairman of C.D.
Director Stimson Company (a private investment company); Trustee, Seattle Art Museum. Mr. Bayley
2 Embarcadero Center also is a director or trustee of each of the other investment companies registered under
Suite 2400 the 1940 Act that is managed or administered by G.T. Capital.
San Francisco, CA 94111
Arthur C. Patterson, 52 Managing Partner of Accel Partners (a venture capital firm). Mr. Patterson also serves as
Director a director of various computing and software companies. Mr. Patterson also is a director
One Embarcadero Center or trustee of each of the other investment companies registered under the 1940 Act that is
Suite 3820 managed or administered by G.T. Capital.
San Francisco, CA 94111
Ruth H. Quigley, 59 Private investor. From 1984 to 1986, Miss Quigley was President of Quigley Friedlander &
Director Co., Inc. (a financial advisory services firm). Miss Quigley also is a director or trustee
1055 California Street of each of the other investment companies registered under the 1940 Act that is managed or
San Francisco, CA 94108 administered by G.T. Capital.
F. Christian Wignall, 39 Senior Vice President, Chief Investment Officer - Global Equities and a Director of G.T.
Vice President and Capital since 1987, and Chairman of the Investment Policy Committee of the affiliated
Chief Investment Officer - international G.T. companies since 1990.
Global Equities
50 California Street
San Francisco, CA 94111
Gary Kreps, 40 Senior Vice President and Chief Investment Officer - Global Fixed Income of G.T. Capital
Vice President and Chief Investment and a director since 1992. Prior to joining G.T. Capital, Mr. Kreps was Senior Vice
Officer - President of the Putnam Companies from 1988 to 1992. Prior thereto he was Chief Investment
Global Fixed Income Officer of the World Bank.
50 California Street
San Francisco, CA 94111
</TABLE>
Statement of Additional Information Page 5
<PAGE>
G.T. GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
NAME, POSITION(S) WITH THE PRINCIPAL OCCUPATIONS AND BUSINESS
COMPANY AND ADDRESS EXPERIENCE FOR PAST 5 YEARS
- --------------------------------------- ------------------------------------------------------------------------------------------
Helge K. Lee, 48 Senior Vice President, General Counsel and Secretary of G.T. Capital, G.T. Global and G.T.
Vice President and Secretary Services since May, 1994. Mr. Lee was the Senior Vice President, General Counsel and
50 California Street Secretary of Strong/Corneliuson Management, Inc. and Secretary of each of the Strong Funds
San Francisco, CA 94111 from October, 1991 through May, 1994. For more than five years prior to October, 1991, he
was a shareholder in the law firm of Godfrey & Kahn, S.C., Milwaukee, Wisconsin.
<S> <C>
James R. Tufts, 37 Senior Vice President -- Finance and Administration of G.T. Capital, G.T. Global and G.T.
Vice President and Services since 1994. Prior thereto, Mr. Tufts was Vice President -- Finance of G.T.
Principal Financial Officer Capital and G.T. Global since 1987; Vice President -- Finance of G.T. Services since 1990;
50 California Street and a Director of G.T. Capital, G.T. Global and G.T. Services since 1991.
San Francisco, CA 94111
Kenneth W. Chancey, 50 Vice President of G.T. Capital and G.T. Global since 1992. Mr. Chancey was Vice President
Vice President and Principal Accounting of Putnam Fiduciary Trust Company from 1989 to 1992, and Assistant Vice President of
Officer Fidelity Service Co. prior thereto.
50 California Street
San Francisco, CA 94111
Peter R. Guarino, 36 Assistant General Counsel of G.T. Capital, G.T. Global and G.T. Services since 1991. From
Assistant Secretary 1989 to 1991, Mr. Guarino was an attorney at The Dreyfus Corporation. Prior thereto, he
50 California Street was associated with Colonial Management Associates, Inc.
San Francisco, CA 94111
David J. Thelander, 39 Assistant General Counsel of G.T. Capital since January 1995. From 1993 to 1994, Mr.
Assistant Secretary Thelander was an associate at Kirkpatrick & Lockhart LLP (a law firm). Prior thereto, he
50 California Street was an attorney with the U.S. Securities and Exchange Commission.
San Francisco, CA 94111
<FN>
- ------------------
* Mr. Minella is an "interested person" of the Company as defined by the
Investment Company Act of 1940 ("1940 Act") due to his affiliation with the
G.T. companies.
</TABLE>
The Board of Directors has established an Audit and Nominating Committee, which
presently consists of Miss Quigley and Messrs. Anderson, Bayley and Patterson,
which is responsible for nominating persons to serve as Directors, reviewing
audits of the Company and recommending firms to serve as independent auditors of
the Company. Each of the Directors and officers of the Company is also a
Director and officer of G.T. Investment Funds, Inc. and G.T. Global Developing
Markets Fund, Inc. and a Trustee and officer of G.T. Global Growth Series, G.T.
Greater Europe Fund, G.T. Global Variable Investment Trust, G.T. Global Variable
Investment Series, G.T. Global High Income Portfolio and Global Investment
Portfolios, which also are registered investment companies managed by G.T.
Capital. Each Director and Officer serves in total as a Director and or Trustee
and Officer, respectively, of 9 registered investment companies with 38 series
managed or adminstered by G.T. Capital. The Company pays each Director who is
not a director, officer or employee of G.T. Capital or any affiliated company
$1,000 per annum, plus $300 for each meeting of the Board or any committee
thereof attended by the Director, and reimburses travel and other expenses
incurred in connection with attendance at such meetings. Other Directors and
officers receive no compensation or expense reimbursement from the Company. Mr.
Anderson, Mr. Bayley, Mr. Patterson and Ms. Quigley who are not directors,
officers, or employees of G.T. Capital or any affiliated company, received total
compensation of $86,260.80, $91,278.72, $74,492.00 and $78,665.19, respectively,
from the 38 G.T. Funds for which he or she serves as a Director or Trustee. Fees
and expenses disbursed to the Directors contained no accrued or payable pension
or retirement benefits. For the fiscal year ended December 31, 1994, the Fund
paid Mr. Anderson, Mr. Bayley, Mr. Patterson and Ms. Quigley Directors' fees and
reimbursements of $3,875, $3,898, $3,230 and $3,384, respectively. As of the
date of this Statement of Additional Information, the Directors and officers and
their immediate families as a group owned in the aggregate beneficially or of
record less than 1% of the outstanding shares of the Fund.
Statement of Additional Information Page 6
<PAGE>
G.T. GLOBAL DOLLAR FUND
MANAGEMENT
- --------------------------------------------------------------------------------
INVESTMENT MANAGEMENT AND ADMINISTRATION SERVICES
G.T. Capital serves as the Fund's investment manager and administrator under an
Investment Management and Administration Contract between the Company and G.T.
Capital ("Management Contract"). As investment manager and administrator, G.T.
Capital makes all investment decisions for the Fund and administers the Fund's
affairs. Among other things, G.T. Capital furnishes the services and pays the
compensation and travel expenses of persons who perform the executive,
administrative, clerical and bookkeeping functions of the Company and the Fund,
and provides suitable office space, necessary small office equipment and
utilities. For these services, the Fund pays G.T. Capital investment management
and administration fees, computed daily and paid monthly, at the annualized rate
of 0.50% of the Fund's average daily net assets.
The Management Contract took effect on May 1, 1989 and had an initial two-year
term. The Management Contract may be renewed for additional one-year terms
thereafter with respect to the Fund, provided that any such renewal has been
specifically approved at least annually by: (i) the Company's Board of
Directors, or by the vote of a majority of the Fund's outstanding voting
securities (as defined in the 1940 Act), and (ii) a majority of Directors who
are not parties to the Management Contract or interested persons of any such
party (as defined in the 1940 Act), cast in person at a meeting called for the
specific purpose of voting on such approval. The Management Contract was most
recently approved by the Board of Directors of the Company on June 15, 1994, and
by the Fund's shareholders at a meeting on April 19, 1989. Either the Company or
G.T. Capital may terminate the Management Contract without penalty upon sixty
(60) days' written notice to the other party. The Management Contract terminates
automatically in the event of its assignment (as defined in the 1940 Act).
Under the Management Contract, G.T. Capital has agreed to reimburse the Fund if
the Fund's annual ordinary expenses exceed the most stringent limits prescribed
by any state in which the Fund's shares are offered for sale. Currently, the
most restrictive applicable limitation provides that the Fund's expenses may not
exceed an annual rate of 2 1/2% of the first $30 million of average net assets,
2% of the next $70 million and 1 1/2% in excess of that amount. Expenses which
are not subject to this limitation are interest, taxes, the amortization of
organizational expenses, payments of distribution fees, in part, and
extraordinary expenses. G.T. Capital and G.T. Global have voluntarily undertaken
to limit the Fund's Advisor Class share expenses (excluding brokerage
commissions, interest, taxes and extraordinary items) to the maximum annual
level of 0.75% of the average daily net assets of the Fund's Advisor Class
shares.
For the fiscal years ended December 31, 1994, 1993, and 1992, the Fund paid
investment management and administration fees to G.T. Capital in the gross
amounts of $1,406,615, $372,788, and $431,951, respectively; during the same
periods G.T. Capital reimbursed the Fund for a portion of its operating expenses
in the amounts of $703,312, $522,638, and $264,168, respectively.
DISTRIBUTION SERVICES
The Fund's Advisor Class are offered through the Fund's principal underwriter
and distributor, G.T. Global, on a "best efforts" basis without a sales charge
or a contingent deferred sales charge.
TRANSFER AGENCY SERVICES
G.T. Global Investor Services, Inc. ("Transfer Agent") has been retained by the
Fund to perform shareholder servicing, reporting and general transfer agent
functions for the Fund. For these services, the Transfer Agent 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. The Transfer Agent also is reimbursed
by the Fund for its out-of-pocket expenses for such items as postage, forms,
telephone charges, stationery and office supplies.
EXPENSES OF THE FUND
The Fund pays all expenses not assumed by G.T. Capital, G.T. Global and other
agents. These expenses include, in addition to the advisory, distribution and
brokerage fees discussed above, legal and audit expenses, custodian and transfer
agency fees, directors' fees, organizational fees, fidelity bond and other
insurance premiums, taxes, extraordinary expenses and the expenses of reports
and prospectuses sent to existing investors. The allocation of general Company
Statement of Additional Information Page 7
<PAGE>
G.T. GLOBAL DOLLAR FUND
expenses and expenses shared among the Fund and other funds organized as series
of the Company are allocated on a basis deemed fair and equitable, which may be
based on the relative net assets of the Fund or the nature of the services
performed and relative applicability to the Fund. Expenditures, including costs
incurred in connection with the purchase or sale of portfolio securities, which
are capitalized in accordance with generally accepted accounting principles
applicable to investment companies, are accounted for as capital items and not
as expenses. The ratio of the Fund's expenses to its relative net assets can be
expected to be higher than the expense ratios of funds investing solely in
domestic securities, since the cost of maintaining the custody of foreign
securities and the rate of investment management fees paid by the Fund generally
are higher than the comparable expenses of such other funds.
- --------------------------------------------------------------------------------
DIVIDENDS AND TAXES
- --------------------------------------------------------------------------------
DAILY INCOME DIVIDENDS
Net investment income and any realized net short-term capital gain are
determined and declared each day as a dividend. Each such dividend is payable to
shareholders as of the close of business on that day. Orders to purchase Fund
shares are executed on the business day on which Federal Funds, i.e., monies
held on deposit at a Federal Reserve Bank, become available. Shares begin
accruing dividends on the day following the date of purchase. Shares are
entitled to the dividend declared on the day a redemption request is received by
the Transfer Agent. Dividends are automatically reinvested in Advisor Class
shares on the last Business Day of the month, at net asset value unless a
shareholder otherwise instructs the Transfer Agent in writing. A shareholder
that does so will be mailed a check in the amount of the accumulated dividends.
For the purpose of calculating dividends, daily net investment income of the
Fund consists of (a) all interest income accrued on investments (including any
discount or premium ratably accrued or amortized, respectively, to the date of
maturity or determined in such other manner as the Fund may determine), (b)
minus all accrued liabilities, including interest, taxes and other expense
items, and reserves for contingent or undetermined liabilities, all determined
in accordance with generally accepted accounting principles, (c) plus or minus
all realized gains or losses on investments.
TAXES -- GENERAL
In order to continue to qualify for treatment as a regulated investment company
under the Internal Revenue Code of 1986, as amended ("Code"), the Fund must
distribute to its shareholders for each taxable year at least 90% of its
investment company taxable income (consisting of net investment income and any
net short-term capital gain) and must meet several additional requirements.
These requirements include the following: (1) the Fund must derive at least 90%
of its gross income each taxable year from dividends, interest, payments with
respect to securities loans and gains from the sale or other disposition of
securities; (2) the Fund must derive less than 30% of its gross income each
taxable year from the sale or other disposition of securities held for less than
three months; and (3) the Fund must diversify its holdings so that, at the close
of each quarter of its taxable year, (i) at least 50% of the value of the Fund's
total assets is represented by cash and cash items, U.S. government securities
and other securities limited, with respect to any one issuer, to an amount not
greater than 5% of the value of the Fund's total assets and (ii) not more than
25% of the value of its total assets is invested in the securities of any one
issuer (other than U.S. government securities) or in two or more issuers which
the Fund controls and which are engaged in the same or similar trades or
businesses.
The Fund will be subject to a nondeductible 4% excise tax to the extent it fails
to distribute by the end of any calendar year substantially all of its ordinary
income for that year and capital gain net income, if any, for the one-year
period ending on October 31 of that year, plus certain other amounts.
Dividends from net investment income (and realized net short-term capital gain)
are taxable to shareholders as ordinary income. The Fund does not expect to
receive any dividend income from U.S. corporations, which means that dividends
from the Fund will not be eligible for the dividends-received deduction allowed
to corporations. Dividends will be taxed for federal income tax purposes in the
same manner whether they are received in cash or reinvested in additional Fund
shares.
NON-U.S. SHAREHOLDERS
Dividends paid by the Fund to a shareholder who, as to the United States, is a
nonresident alien individual, nonresident alien fiduciary of a trust or estate,
foreign corporation or foreign partnership (a "foreign shareholder") will be
subject to
Statement of Additional Information Page 8
<PAGE>
G.T. GLOBAL DOLLAR FUND
U.S. withholding tax (at a rate of 30% or lower treaty rate). Withholding will
not apply if a dividend paid by the Fund to a foreign shareholder is
"effectively connected with the conduct of a U.S. trade or business," in which
case the reporting and withholding requirements applicable to U.S. citizens or
other domestic taxpayers will apply.
The foregoing is a general and abbreviated summary of certain federal tax
considerations affecting the Fund and its shareholders. Investors are urged to
consult their own tax advisers for more detailed information and for information
regarding any foreign, state and local taxes applicable to an investment in the
Fund.
- --------------------------------------------------------------------------------
INFORMATION RELATING TO
SALES AND REDEMPTIONS
- --------------------------------------------------------------------------------
STATEMENTS AND REPORTS
When an investor makes an initial investment in the Fund, a shareholder account
is opened in accordance with the investor's registration instructions.
Shareholders receive monthly statements detailing account transactions. Shortly
after the end of the Fund's fiscal year on December 31 and fiscal half-year on
June 30, shareholders will receive an annual and semiannual report,
respectively. These reports list the securities held by the Fund and contain the
Fund's financial statements. In addition, the federal income status of
distributions made by the Fund to shareholders will be reported after the end of
the fiscal year on Form 1099-DIV.
PAYMENT AND TERMS OF OFFERING
Payment of shares purchased should accompany the purchase order or funds should
be wired to the Transfer Agent as described in the Prospectus. Payment, other
than by wire transfer, must be made by check or money order drawn on a U.S.
bank. Checks or money orders must be payable in U.S. dollars.
As a condition of this offering, if an order to purchase shares is cancelled due
to nonpayment (for example, because a check is returned for "not sufficient
funds"), the person who made the order will be responsible for any loss incurred
by the Fund by reason of such cancellation, and if such purchaser is a
shareholder, the Fund shall have the authority as agent of the shareholder to
redeem shares in his or her account for their then-current net asset value per
share to reimburse the Company for the loss incurred. Investors whose purchase
orders have been cancelled due to nonpayment may be prohibited from placing
future orders.
The Fund reserves the right at any time to waive or increase the minimum
requirements applicable to initial or subsequent investments with respect to any
person or class of persons. An order to purchase shares is not binding on the
Fund until it has been confirmed in writing by the Transfer Agent (or other
arrangements made with the Fund, in the case of orders utilizing wire transfer
of funds, as described above) and payment has been received. To protect existing
shareholders, the Fund reserves the right to reject any offer for a purchase of
shares by any individual.
WHEN ORDERS ARE EFFECTIVE
In order to maximize earnings on its portfolio, the Fund intends at all times to
be as completely invested as reasonably possible. Transactions in the money
market instruments in which the Fund invests normally require immediate
settlement in Federal Funds, as defined above. Thus, an order to purchase Fund
shares will be executed on the Business Day (any day Monday through Friday on
which the New York Stock Exchange ("NYSE") is open for business), on which
Federal Funds become available to the Fund. Funds transmitted by bank wire to
the Transfer Agent and received by it prior to the close of regular trading on
the NYSE will normally be credited to a shareholder's account on the same day as
received. Funds transmitted by bank wire and received after the close of regular
trading on the NYSE normally will be credited on the next Business Day. If
remitted in other than the foregoing manner, such as by check, purchase orders
will be executed as of the close of business on the day on which the payment is
converted into Federal Funds, normally two days after receipt of the payment.
The investor becomes a shareholder on the day on which the order is effective.
Dividends begin to accrue on the next day. Information on how to transmit
Federal Funds by wire is available at any national bank or any state bank which
is a member of the Federal Reserve System. Any such bank may charge the
shareholder for this service.
EXCHANGES BETWEEN FUNDS
A shareholder may exchange shares of the Fund for shares of the corresponding
class of other G.T. Global Mutual Funds as described in the Prospectus. Advisor
Class shares may be exchanged only for Advisor Class shares of other G.T. Global
Statement of Additional Information Page 9
<PAGE>
G.T. GLOBAL DOLLAR FUND
Mutual Funds. The exchange privilege is not an option or right to purchase
shares but is permitted under the current policies of the respective G.T. Global
Mutual Funds. The privilege may be discontinued or changed at any time by any of
the Funds upon 60 days' prior written notice to the shareholders of such Fund
and is available only in states where the exchange may be legally made. Before
purchasing shares through the exercise of the exchange privilege, a shareholder
should obtain and read a copy of the Prospectus of the Fund to be purchased and
should consider the investment objective(s) of such Fund.
TELEPHONE REDEMPTIONS
A corporation or partnership wishing to utilize the telephone redemption
services must submit a "Corporate Resolution" or "Certificate of Partnership"
indicating the names, titles and the required number of signatures of persons
authorized to act on its behalf. The certificate must be signed by a duly
authorized officer(s) and, in the case of a corporation, the corporate seal must
be affixed. All shareholders may request that redemption proceeds be transmitted
by bank wire directly to the shareholder's predesignated account at a domestic
bank or savings institution if liquidation proceeds are at least $1,000. Costs
in connection with the administration of this service, including wire charges,
currently are borne by the Fund. Proceeds of less than $1,000 will be mailed to
the shareholder's registered address of record. The Fund and the Transfer Agent
reserve the right to refuse any telephone instructions and may discontinue the
aforementioned redemption options upon 30 days' written notice to shareholders.
SUSPENSION OF REDEMPTION PRIVILEGES
The Fund may suspend redemption privileges or postpone the date of payment for
more than seven days after a redemption order is received during any period: (1)
when the NYSE is closed other than customary weekend and holiday closings, or
when trading on the NYSE is restricted as directed by the SEC; (2) when an
emergency exists, as defined by the SEC, which would prohibit the Fund from
disposing of portfolio securities or in fairly determining the value of its
assets; or (3) as the SEC may otherwise permit.
REDEMPTIONS IN KIND
It is possible that conditions may arise in the future which, in the opinion of
the Company's Board of Directors, would make it undesirable for the Fund to pay
for all redemptions in cash. In such cases, the Board may authorize payment to
be made in portfolio securities or other property of the Fund, so called
"Redemptions in Kind." Payment of redemptions in kind will be made in readily
marketable securities. Such securities delivered in payment of redemptions would
be valued at the same value assigned to them in computing the Fund's net asset
value per share. Shareholders receiving such securities would incur brokerage
costs in selling any such securities so received and would be subject to any
increase or decrease in the value of such securities until they were sold.
- --------------------------------------------------------------------------------
VALUATION OF FUND SHARES
- --------------------------------------------------------------------------------
As described in the Prospectus, the Fund's net asset value per share for each
class of shares is determined at the close of regular trading on the New York
Stock Exchange ("NYSE") (currently, 4:00 p.m. Eastern time, unless weather,
equipment failure or other factors contribute to an earlier closing time).
Currently, the NYSE is closed on weekends and on the following holidays: (i) New
Years Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day and Christmas Day; and (ii) the preceding Friday when any
one of those holidays falls on a Saturday or the subsequent Monday when any one
of those holidays falls on a Sunday.
The net asset value of the Fund's shares is determined by dividing its total
assets less its liabilities by the number of shares outstanding. The Fund may
declare a suspension of the determination of net asset value during the periods
when it may suspend redemption privileges, as provided in "Suspension of
Redemption Privileges," above.
The Fund has adopted a policy which requires that it use its best efforts, under
normal circumstances, to maintain a constant net asset value of $1.00 per share.
The Fund values its portfolio securities using the amortized cost method. This
policy does not establish a net asset value of $1.00 per share; it merely
permits a pricing method under which the Fund may seek to maintain a per share
net asset value of $1.00. There can be no assurance that the Fund will be able
to maintain a stable net asset value of $1.00 per share for purchases and
redemptions. The amortized cost method involves valuing a security at its cost
and thereafter accruing any discount or premium at a constant rate to maturity.
By declaring these
Statement of Additional Information Page 10
<PAGE>
G.T. GLOBAL DOLLAR FUND
accruals to the Fund's shareholders in the daily dividend, the value of the
Fund's assets, and, thus, its net asset value per share, generally will remain
constant. Although this method provides certainty in valuation, it may result in
periods during which the value of the Fund's securities, as determined by
amortized cost, is higher or lower than the price the Fund would receive if it
sold the securities. During periods of declining interest rates, the daily yield
on shares of the Fund computed as described above may tend to be higher than a
like computation made by a similar fund with identical investments utilizing a
method of valuation based upon market prices and estimates of market prices for
all of its portfolio securities. Thus, if the Fund's use of amortized cost
resulted in a lower aggregate portfolio value on a particular day, a prospective
investor in the Fund would be able to obtain a somewhat higher yield than would
result from investment in a similar fund utilizing solely market values, and
existing investors in the Fund would receive less investment income. The
converse would apply in a period of rising interest rates.
In connection with the Fund's policy of valuing its securities using the
amortized cost method, the Fund maintains a dollar-weighted portfolio maturity
of 90 days or less and purchases only portfolio securities having remaining
maturities of 13 months or less. The Board of Directors also has established
procedures in accordance with Rule 2a-7 under the 1940 Act designed to
stabilize, to the extent reasonably possible, the Fund's net asset value per
share, as computed for the purpose of sales and redemptions, at $1.00. Such
procedures include review of portfolio holdings by the Board of Directors, at
such intervals as it may deem appropriate, to determine whether the Fund's net
asset value calculated by using available market quotations deviates from $1.00
per share and, if so, whether such deviation may result in material dilution or
may be otherwise unfair to existing shareholders. In the event the Board of
Directors determines that such a deviation exists, the Board has agreed to take
such corrective action as it deems necessary and appropriate, which action might
include selling portfolio securities prior to maturity to realize capital gains
or losses or to shorten average portfolio maturity, withholding dividends, or
paying distributions from capital or capital gains, redeeming shares in kind, or
establishing a net asset value per share by using available market quotations or
market equivalents.
- --------------------------------------------------------------------------------
EXECUTION OF PORTFOLIO
TRANSACTIONS
- --------------------------------------------------------------------------------
Subject to policies established by the Company's Board of Directors, G.T.
Capital is responsible for the execution of the Fund's portfolio transactions
and the selection of broker/dealers who execute such transactions on behalf of
the Fund. Purchases and sales of money market instruments by the Fund generally
are made on a principal basis, in which the dealer through whom the trade is
executed retains a "spread" as compensation. The spread is the difference in the
price at which the dealer buys or sells the instrument to the Fund and the price
which the dealer is able to resell or at which the dealer originally purchased,
respectively, the instrument. In executing portfolio transactions, G.T. Capital
seeks the best net results for the Fund, taking into account such factors as the
price (including the applicable dealer spread), size of the order, difficulty of
execution and operational facilities of the firm involved. While G.T. Capital
generally seeks reasonably competitive spreads, payment of the lowest spread is
not necessarily consistent with the best net results. Research services may be
received from dealers who execute Fund transactions. The Fund has no obligation
to deal with any broker/dealer or group of broker/dealers in the execution of
portfolio transactions.
Investment decisions for the Fund and for other investment accounts managed by
G.T. Capital are made independently of each other in light of differing
conditions. However, the same investment decision occasionally may be made for
two or more of such accounts, including the Fund. In such cases, simultaneous
transactions may occur. Purchases or sales are then allocated as to price or
amount in a manner deemed fair and equitable to all accounts involved. While in
some cases this practice could have a detrimental effect upon the price or value
of the security as far as the Fund is concerned, in other cases G.T. Capital
believes that coordination and the ability to participate in volume transactions
will be beneficial to the Fund.
Under a policy adopted by the Company's Board of Directors, and subject to the
policy of obtaining the best net results, G.T. Capital may consider a
broker/dealer's sale of the shares of the Fund and the other funds for which
G.T. Capital serves as investment manager and/or administrator in selecting
broker/dealers for the execution of portfolio transactions. This policy does not
imply a commitment to execute portfolio transactions through all broker/dealers
that sell shares of the Fund and such other funds.
Statement of Additional Information Page 11
<PAGE>
G.T. GLOBAL DOLLAR FUND
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
BIL GT GROUP
Other subsidiaries of the BIL GT Group include the Bank in Liechtenstein AG, an
international financial services institution founded in 1920, with over $17
billion in assets under adminstration and principal offices in Vaduz,
Liechtenstein, Bank in Liechtenstein (Frankfurt) GmbH, and Bilfinanz und
Verwaltung AG located in Zurich, Switzerland. In total, BIL GT Group encompasses
over $43 billion in assets under management and administration.
CUSTODIAN
State Street Bank and Trust Company ("State Street"), 225 Franklin Street,
Boston, Massachusetts 02110, acts as custodian of the Fund's assets. State
Street is authorized to establish and has established separate accounts in
foreign currencies and to cause securities of the Fund to be held in separate
accounts outside the United States in the custody of non-U.S. banks.
INDEPENDENT ACCOUNTANTS
The Fund's independent accountants are Coopers & Lybrand L.L.P., One Post Office
Square, Boston, Massachusetts 02109. Coopers & Lybrand L.L.P. conducts annual
audits of the Fund, assists in the preparation of the Fund's federal and state
income tax returns and consults with the Company and the Fund as to matters of
accounting, regulatory filings, and federal and state income taxation.
The financial statements of the Company included in this Statement of Additional
Information have been audited by Coopers & Lybrand L.L.P., as stated in their
opinion appearing herein and are included in reliance upon such opinion given
upon the authority of said firm as experts in accounting and auditing.
USE OF NAME
G.T. Capital has granted the Company the right to use the "G.T." name in the
name of the Company and the Fund and has reserved the rights to withdraw its
consent to the use of such name by the Company or the Fund at any time, or to
grant the use of such name to any other company, and the Company has granted
G.T. Capital, under certain conditions, the use of any other name it might
assume in the future, with respect to any other investment company sponsored by
G.T. Capital.
Statement of Additional Information Page 12
<PAGE>
G.T. GLOBAL DOLLAR FUND
INVESTMENT RESULTS
- --------------------------------------------------------------------------------
The Fund may, from time to time, provide yield information or comparisons of its
yield to various averages including data from Lipper Analytical Services, Inc.,
Bank Rate Monitor-TM-, IBC/Donaghue's Money Fund Report, MONEY Magazine, and
other industry publications, in advertisements or in reports furnished to
current or prospective shareholders.
For the seven-day period ended December 31, 1994, the Fund's Class A share yield
was 4.76% and effective yield was 4.87%. The seven-day and effective yields are
calculated as follows:
Assumptions:
<TABLE>
<S> <C>
Value of hypothetical pre-existing account with exactly one share
at the beginning of the period:........................................... $1.000000000
Value of same account* (excluding capital changes) at the end
of the seven-day period ending December 31, 1993:......................... $1.000912930
<FN>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
</TABLE>
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000912930
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000912930
Seven-day yield = $.000912930 x 365/7 = 4.76%
Effective yield** = [1 + .000912930] 365/7 -1 = 4.87%
<FN>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
</TABLE>
For the seven-day period ended December 31, 1994, the Fund's Class B share yield
was 4.00% and effective yield was 4.08%. The seven-day and effective yields are
calculated as follows:
Assumptions:
<TABLE>
<S> <C>
Value of hypothetical pre-existing account with exactly one share
at the beginning of the period:........................................... $1.000000000
Value of same account* (excluding capital changes) at the end
of the seven-day period ending December 31, 1994:......................... $1.000767477
<FN>
- ------------------
* Value includes additional shares acquired with dividends paid on the
original shares.
</TABLE>
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000767477
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000767477
Seven-day yield = $.000767477 x 365/7 = 4.00%
Effective yield** = [1 + .000767477] 365/7 -1 = 4.08%
<FN>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
</TABLE>
The Fund's investment results may also be calculated for longer periods in
accordance with the following method: by subtracting (a) the net asset value of
one share at the beginning of the period, from (b) the net asset value of all
shares an investor would own at the end of the period for the share held at the
beginning of the period (assuming reinvestment of all dividends and
distributions) and dividing by (c) the net asset value per share at the
beginning of the period. The resulting percentage indicates the positive or
negative rate of return that an investor would have earned from the reinvested
dividends and distributions and any changes in share price during the period.
Statement of Additional Information Page 13
<PAGE>
G.T. GLOBAL DOLLAR FUND
The Fund's "Standardized Return," as referred to in the Prospectus (see "Other
Information -- Performance Information" in the Prospectus), is calculated as
follows: Standardized Return ("T") is computed by using the value at the end of
the period ("EV") of a hypothetical initial investment of $1,000 ("P") over a
period of years ("n") according to the following formula as required by the SEC:
P(1+T) to the (n)th power = EV. The following assumptions will be reflected in
computations made in accordance with this formula: (1) for Class A shares,
deduction of the applicable contingent deferred sales charge from the $1,000
initial investment for Class B shares (Class A shares do not impose a sales
charge); (2) for Class B shares, deduction of the applicable contingent deferred
sales charge imposed on a redemption of Class B shares held for the period; (3)
reinvestment of dividends and other distributions at net asset value on the
reinvestment date determined by the Board; and (4) a complete redemption at the
end of any period illustrated subject to deduction of the applicable contingent
deferred sales charge imposed on a redemption of Class B shares held for the
period illustrated.
The Fund's Standardized Returns for its Class A shares, stated as average
annualized total returns, at December 31, 1994, were as follows:
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended December 31, 1994..................................................................... (1.69)%
Five years ended December 31, 1994............................................................... 3.1%
September 16, 1985 through December 31, 1994..................................................... 4.52%
</TABLE>
The Fund's Standardized Return for its Class A shares, stated as aggregate total
return, at December 31, 1994, was as follows:
<TABLE>
<CAPTION>
STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
September 16, 1985 through December 31, 1994..................................................... 51.53%
</TABLE>
The Fund's Standardized Returns for its Class B shares, which were first offered
on April 1, 1993, stated as average annualized total returns, were as follows:
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended December 31, 1994..................................................................... (2.47)%
April 1, 1993 through December 31, 1994.......................................................... (0.02)%
</TABLE>
The Fund's Standardized Return for its Class B shares, which were first offered
on April 1, 1993, stated as aggregate total returns, at December 31, 1994, was
as follows:
<TABLE>
<CAPTION>
STANDARDIZED AGGREGATE
PERIOD RETURN
- -------------------------------------------------------------------------------------------------- -----------------------
<S> <C>
April 1, 1993 through December 31, 1994........................................................... (0.04)%
</TABLE>
"Non-Standardized Return," as referred to in the Prospectus, is calculated for a
specified period of time by assuming the investment of $1,000 in Fund shares and
further assuming the reinvestment of all dividends and other distributions made
to Fund shareholders in additional Fund shares at their net asset value.
Percentage rates of return are then calculated by comparing this assumed initial
investment to the value of the hypothetical account at the end of the period for
which the Non-Standardized Return is quoted. As discussed in the Prospectus, the
Fund may quote Non-Standardized Returns that do not reflect the effect of
contingent deferred sales charges. Non-Standardized Returns may be quoted from
the same or different time periods for which Standardized Returns are quoted.
The Fund's Non-Standardized Returns for its Class A shares, stated as average
annual total return, at December 31, 1994, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended December 31, 1994................................................................. 3.30%
Five years ended December 31, 1994........................................................... 4.11%
September 16, 1985 through December 31, 1994................................................. 5.11%
</TABLE>
The Fund's Non-Standardized Return for its Class A shares, stated as aggregate
total return, at December 31, 1994, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
September 16, 1985 through December 31, 1994................................................. 59.89%
</TABLE>
Statement of Additional Information Page 14
<PAGE>
G.T. GLOBAL DOLLAR FUND
The Fund's Non-Standardized Return for its Class B shares, which were first
offered on April 1, 1993, stated as average annualized total returns at December
31, 1994, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended December 31, 1994................................................................. 2.53%
April 1, 1993 through December 31, 1994...................................................... 2.04%
</TABLE>
The Fund's Non-Standardized Return for its Class B shares, which were first
offered on April 1, 1993, stated as aggregate total return, at December 31,
1994, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 through December 31, 1994...................................................... 3.59%
</TABLE>
Standardized Returns and Non-Standardized Returns are not presented for the
Advisor Class shares because no shares of that class were outstanding during the
fiscal year ended December 31, 1994.
The Fund's investment results will vary from time to time depending upon market
conditions, the composition of the Fund's portfolio and operating expenses of
the Fund, so that any yield or total return figure should not be considered
representative of what an investment in the Fund may earn in any future period.
These factors and possible differences in calculation methods should be
considered when comparing the Fund's investment results with those published for
other investment companies, other investment vehicles and averages. Investment
results also should be considered relative to the risks associated with the
investment objective and policies. The Fund's investment results will be
calculated separately for Class A and Class B shares. The Fund will include
performance data for both Class A and Class B shares of the Fund in any
advertisement or information including performance data for the Fund.
The Fund and G.T. Global may from time to time compare the Fund with the
following:
(1) The Salomon Brothers Non-U.S. Dollars Indices, which are measures of
the total return performance of high quality non-U.S. dollar denominated
securities in major sectors of the worldwide bond markets.
(2) The Lehman Brothers Government/Corporate Bond Index, which is a
comprehensive measure of all public obligations of the U.S. Treasury
(excluding flower bonds and foreign targeted issues), all publicly issued
debt of agencies of the U.S. Government (excluding mortgage backed
securities), and all public, fixed rate, non-convertible investment grade
domestic corporate debt rated at least Baa by Moody's Investors Service,
Inc. or BBB by Standard and Poor's Ratings Group, or, in the case of
nonrated bonds, BBB by Fitch Investors Service (excluding Collateralized
Mortgage Obligations).
(3) Average of Savings Accounts, which is a measure of all kinds of
savings deposits, including longer-term certificates (based on figures
supplied by the U.S. League of Savings Institutions). Savings accounts offer
a guaranteed rate of return on principal, but no opportunity for capital
growth. During a portion of the period, the maximum rates paid on some
savings deposits were fixed by law.
(4) The Consumer Price Index, which is a measure of the average change
in prices over time in a fixed market basket of goods and services (e.g.,
food, clothing, shelter, fuels, transportation fares, charges for doctors'
and dentists' services, prescription medicines, and other goods and services
that people buy for day-to-day living).
(5) Data and mutual fund rankings published or prepared by Lipper
Analytical Data Services, Inc. ("Lipper"), CDA/Wiesenberger Investment
Company Services ("CDA/Wiesenberger"), Morningstar Publishers
("Morningstar") and/or other companies that rank and/or compare mutual funds
by overall performance, investment objectives, assets, expense levels,
periods of existence and/or other factors. In this regard the Fund may be
compared to its "peer group" as defined by Lipper, CDA/Wiesenberger,
Morningstar and/or other firms, as applicable, or to specific funds or
groups of funds within or without such peer group. Morningstar is a mutual
fund rating service that also rates mutual funds on the basis of
risk-adjusted performance. Morningstar ratings are calculated from a fund's
three, five and ten year average annual returns with appropriate fee
adjustments and a risk factor that reflects fund performance relative to the
three-month U.S. Treasury bill monthly returns. Ten percent of the funds in
an investment category receive five stars and 22.5% receive four stars. The
ratings are subject to change each month.
(6) Bear Stearns Foreign Bond Index, which provides simple average
returns for individual countries and GNP-weighted index, beginning in 1975.
The returns are broken down by local market and currency.
Statement of Additional Information Page 15
<PAGE>
G.T. GLOBAL DOLLAR FUND
(7) Ibbottson Associates International Bond Index, which provides a
detailed breakdown of local market and currency returns since 1960.
(8) Salomon Brothers Broad Investment Grade Index which is a widely used
index composed of U.S. domestic government, corporate and mortgage-backed
fixed income securities.
(9) Salomon Brothers World Government Bond Index and Salomon Brothers
World Government Bond Index-Non-U.S. are each a widely used index composed
of world government bonds.
(10) The World Bank Publication of Trends in Developing Countries (TIDE)
provides brief reports on most of the World Bank's borrowing members. The
World Development Report is published annually and looks at global and
regional economic trends and their implications for the developing
economies.
(11) Datastream and Worldscope each is an on-line database retrieval
service for information including but not limited to international financial
and economic data.
(12) International Financial Statistics, which is produced by the
International Monetary Fund.
(13) Various publications and annual reports such as the World
Development Report, produced by the World Bank and its affiliates.
(14) Various publications from the International Bank for Reconstruction
and Development/The World Bank.
(15) Various publications including but not limited to ratings agencies
such as Moody's Investors Services, Fitch Investors Service, Standard &
Poor's Ratings Group.
(16) Privatizations from various sources, stock market capitalization,
number of issuers, and trading volume of newly privatized companies and, in
addition, projected levels of privatization. Privatization, an economic
process virtually unknown in the U.S., is the selling of state-owned
companies to the private sector. Under private ownership, such companies can
release assets and seek to make profits free from political intervention.
Examples of state-owned industries being privatized outside the U.S. include
airlines, telecommunications, utilities and financial institutions.
Indices, economic and financial data prepared by the research departments of
such financial organizations as Salomon Brothers, Inc., Lehman Brothers, Merrill
Lynch, Pierce, Fenner & Smith, Inc., J. P. Morgan, Morgan Stanley, Smith Barney
Shearson, S.G. Warburg, Jardine Flemming, Barings Securities, The Bank for
International Settlements, Asian Development Bank, Bloomberg, L.P. and Ibbottson
Associates may be used as well as information reported by the Federal Reserve
and the respective Central Banks of various nations. In addition, performance
rankings, ratings and commentary reported periodically in national financial
publications, included but not limited to Money Magazine, Smart Money, Global
Finance, EuroMoney, Financial World, Forbes, Fortune, Business Week, Latin
Finance, the Wall Street Journal, Emerging Markets Weekly, Kiplinger's Guide To
Personal Finance, Barron's, The Financial Times, USA Today, The New York Times,
Far Eastern Economic Review, The Economist and Investors Business Digest. Each
Fund may compare its performance to that of other compilations or indicies of
comparable quality to those listed above and other indicies which may be
developed and made available.
The Fund may compare its performance to that of other compilations or indices of
comparable quality to those listed above which may be developed and made
available in the future. The Fund may be compared in advertising to Certificates
of Deposit (CDs), the Bank Rate Monitor National Index, an average of the quoted
rates for 100 leading banks and thrifts in ten U.S. cities chosen to represent
the ten largest Consumer Metropolitan statistical areas, or other investments
issued by banks. The Fund differs from bank investments in several respects. The
Fund may offer greater liquidity or higher potential returns than CDs; but
unlike CDs, the Fund will have a fluctuating share price and return and is not
FDIC insured.
G.T. Global may provide information designed to help individuals understand
their investment goals and explore various financial strategies. For example,
G.T. Global may describe general principles of investing, such as asset
allocation, diversification and risk tolerance.
In advertising materials, G.T. Global may reference or discuss its products and
services, which may include: retirement investing; the effects of dollar-cost
averaging and saving for college or a home. In addition, G.T. Global may quote
financial or business publications and periodicals, including model portfolios
or allocations, as they relate to fund management, investment philosophy, and
investment techniques.
The Fund may quote various measures of volatility and benchmark correlation such
as beta, standard deviation and R(2) in advertising. In addition, the Fund may
compare these measures to those of other funds. Measures of volatility seek to
Statement of Additional Information Page 16
<PAGE>
G.T. GLOBAL DOLLAR FUND
compare the Fund's total returns compared to those of a benchmark. All measures
of volatility and correlation are calculated using averages of historical data.
The Fund may advertise examples of the effects of periodic investment plans,
including the principle of dollar cost averaging. In such a program, an investor
invests a fixed dollar amount in a fund at periodic intervals, thereby
purchasing fewer shares when prices are high and more shares when prices are
low. While such a strategy does not assure a profit or guard against loss in a
declining market, the investor's average cost per share can be lower than if
fixed numbers of shares are purchased at the same intervals. In evaluating such
a plan, investors should consider their ability to continue purchasing shares
through periods of low price levels.
Each Fund may be available for purchase through retirement plans of other
programs offering deferral of or exemption from income taxes, which may produce
superior after tax returns over time. For example, a $10,000 investment earning
a taxable return of 10% annually would have an after-tax value of $17,976 after
ten years, assuming tax was deducted from the return each year at a 39.6% rate.
An equivalent tax-deferred investment would have an after-tax value of $19,626
after ten years, assuming tax was deducted at a 39.6% rate from the deferred
earnings at the end of the ten-year period.
The Fund may describe in its sales material and advertisements how an investor
may invest in the G.T. Global Mutual Funds through various retirement accounts
and plans that offer deferral of income taxes on investment earnings and may
also enable an investor to make pre-tax contributions. Because of their
advantages, these retirement accounts and plans may produce returns superior to
comparable non-retirement investments. The Fund may also discuss these accounts
and plans, which include:
INDIVIDUAL RETIREMENT ACCOUNTS (IRAS): Any individual who receives earned income
from employment (including self-employment) can contribute up to $2,000 each
year to an IRA (or if less, 100% of compensation). If your spouse is not
employed, a total of $2,250 may be contributed each year to IRAs set up for you
and your spouse (subject to the maximum of $2,000 to either IRA). Some
individuals may be able to take an income tax deduction for the contribution.
Regular contributions may not be made for the year you become 70 1/2, or
thereafter. Please consult your tax advisor for more information.
ROLLOVER IRAS: Individuals who receive distributions from qualified retirement
plans (other than required distributions) and who wish to keep their savings
growing tax-deferred can rollover (or make a direct transfer of) their
distribution to a Rollover IRA. These accounts can also receive rollovers or
transfers from an existing IRA. If an "eligible roll-over distribution" from a
qualified employer-sponsored retirement plan is not directly rolled over to an
IRA (or certain qualified plans), withholding at the rate of 20% will be
required for federal income tax purposes. A distribution from a qualified plan
that is not an "eligible rollover distribution," including a distribution that
is one of a series of substantially equal periodic payments, generally is
subject to regular wage withholding or withholding at the rate of 10% (depending
on the type and amount of the distribution), unless you elect not to have any
withholding apply. Please consult your tax advisor for more information.
SEP-IRAS AND SALARY-REDUCTION SEP-IRAS: Simplified employee pension (SEP) plans
and salary-reduction SEPs provide self-employed individuals (and any eligible
employees) with benefits similar to Keogh-type plans or 401(k) plans, but with
fewer administrative requirements and therefore potential lower annual
administration expenses.
403(B)(7) CUSTODIAL ACCOUNTS: Employees of public schools and most
not-for-profit organizations can make pre-tax salary reduction contributions to
these accounts.
PROFIT-SHARING (INCLUDING 401(K)) AND MONEY PURCHASE PENSION PLANS: Corporations
can sponsor these qualified defined contribution plans for their employees. A
401(k) plan, a type of profit-sharing plan, additionally permits the eligible,
participating employees to make pre-tax salary reduction contributions to the
plan (up to certain limitations).
In advertising and sales materials, G.T. Global may make reference to or discuss
its products, services and accomplishments. Among these accomplishments are that
in 1983 G.T. Global provided assistance to the government of Hong Kong in
linking its currency to the U.S. dollar, and that in 1987 Japan's Ministry of
Finance licensed G.T. Management (Japan) Ltd. as one of the first foreign
discretionary investment managers for Japanese investors. Such accomplishments,
however, should not be viewed as an endorsement of G.T. Global by the government
of Hong Kong, Japan's Ministry of Finance or any other government or government
agency. Nor do any such accomplishments of G.T. Global provide any assurance
that the G.T. Global Mutual Funds' investment objectives will be achieved.
In addition, G.T. Global may, in its radio, television and other advertising,
employ the use of sound effects such as, for example, sounds of electronic data
being communicated.
Statement of Additional Information Page 17
<PAGE>
G.T. GLOBAL DOLLAR FUND
THE G.T. ADVANTAGE
G.T. Capital has developed a unique team approach to its global money management
which we call the G.T. Advantage. G.T Capital's money management style combines
the best of the "top-down" and "bottom-up" investment manager strategies. The
top-down approach is implemented by G.T. Capital's Investment Policy Committee
which sets broad guidelines for asset allocation and currency management based
on G.T. Capital's own macroeconomic forecasts and research from its worldwide
offices. The bottom-up approach utilizes regional teams of individual portfolio
managers to implement the committee's guidelines by selecting local securities
that offer strong growth and income potential.
- --------------------------------------------------------------------------------
DESCRIPTION OF DEBT RATINGS
- --------------------------------------------------------------------------------
COMMERCIAL PAPER RATINGS
STANDARD & POOR'S RATINGS GROUP ("S&P"). "A-1" and "A-2" are the two highest
commercial paper rating categories:
A-1. This highest category indicates that the degree of safety regarding
timely payment is strong. Issues determined to possess extremely strong
safety characteristics are denoted with a plus sign (+) designation.
A-2. Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated A-1.
MOODY'S INVESTORS SERVICE, INC. ("MOODY'S"). "Prime-1" and "Prime-2" are the two
highest commercial paper rating categories.
Prime-1. Issuers (or supporting institutions) assigned this highest
rating have a superior ability for repayment of short-term debt obligations.
Prime-1 repayment ability will often be evidenced by the following
characteristics: leading market positions in well established industries;
high rates of return on funds employed; conservative capitalization
structure with moderate reliance on debt and ample asset protection; broad
margins in earnings coverage of fixed financial charges and high internal
cash generation; well established access to a range of financial markets and
assured sources of alternate liquidity.
Prime-2. Issuers (or supporting institutions) assigned this rating have
a strong ability for repayment of short-term debt obligations. This will
normally be evidenced by many of the characteristics cited above but to a
lesser degree. Earnings trends and coverage ratios, while sound, will be
more subject to variation. Capitalization characteristics, while still
appropriate, may be more affected by external conditions. Ample alternate
liquidity is maintained.
BOND RATINGS
S&P: Its ratings for high quality bonds are as follows:
Bonds rated "AAA" are highest-grade obligations. Capacity to pay
interest and repay principal is extremely strong.
Bonds rated "AA" has a very strong capacity to pay interest and repay
principal and differs from the higher rated issues only in a small degree.
MOODY'S: Its ratings for high quality bonds are as follows:
Bonds rated "Aaa" are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt
edged." Interest payments are protected by a large or by an exceptionally
stable margin, and principal is secure. While the various protective
elements are likely to change, such changes as can be visualized are most
unlikely to impair the fundamentally strong position of such issues.
Bonds rated "Aa" are judged to be of high quality by all standards.
Together with the Aaa group, they comprise what are generally known as
high-grade bonds. They are rated lower than the best bonds because margins
of protection may not be as large as in Aaa securities, or fluctuation of
protective elements may be of greater amplitude, or there may be other
elements present which make the long-term risks appear somewhat larger than
the Aaa securities.
Statement of Additional Information Page 18
<PAGE>
G.T. GLOBAL DOLLAR FUND
NOTE RATINGS
S&P: The SP-1 rating denotes a very strong or strong capacity to pay principal
and interest. Those issues determined to possess overwhelming safety
characteristics will be given a plus (+) designation.
The SP-2 rating denotes a satisfactory capacity to pay principal and interest.
MOODY'S: The MIG 1 designation denotes best quality. There is present strong
protection by established cash flows, superior liquidity support or demonstrated
broad-based access to the market for refinancing.
The MIG 2 designation denotes high quality. Margins of protection are ample
although not as large as in the preceding group.
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The audited financial statements of the Fund at December 31, 1994 and for the
year then-ended appear on the following pages.
Statement of Additional Information Page 19
<PAGE>
G.T. GLOBAL DOLLAR FUND
REPORT OF
INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND
BOARD OF DIRECTORS OF
G.T. INVESTMENT PORTFOLIOS, INC.:
We have audited the accompanying statement of assets and liabilities of G.T.
Global Dollar Fund, a series of shares of common stock of G.T. Investment
Portfolios, Inc., including the schedule of portfolio investments, as of
December 31, 1994 and 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 three 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. The financial highlights for each of the two years in the
period ended December 31, 1991 were audited by other auditors whose report dated
January 31, 1992 expressed an unqualified opinion on such financial highlights.
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, 1994 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
G.T. Global Dollar Fund as of December 31, 1994, 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 three
years in the period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND, L.L.P.
BOSTON, MASSACHUSETTS
FEBRUARY 10, 1995
Statement of Additional Information Page 20
<PAGE>
G.T. GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Principal
Short-Term Investments Yield Date Amount Market Value
- --------------------------------------------------------------------- ---------- ---------- ----------- -------------
<S> <C> <C> <C> <C>
Commercial Paper -- Discounted (67.0%)
- ---------------------------------------------------------------------
Pitney Bowes Inc..................................................... 5.3200% 03-Jan-95 10,000,000 $ 9,997,044
Banc One Corp........................................................ 5.4800% 03-Jan-95 14,000,000 13,995,738
Proctor & Gamble Co.................................................. 5.5300% 04-Jan-95 18,000,000 17,991,705
Emerson Electric Co.................................................. 5.7500% 04-Jan-95 10,000,000 9,995,208
BAT Capital Corp..................................................... 6.0000% 04-Jan-95 8,000,000 7,996,000
Dupont & Company..................................................... 5.6400% 05-Jan-95 16,000,000 15,989,973
Toronto Dominion Holdings............................................ 5.2000% 05-Jan-95 10,000,000 9,994,222
Shell Oil Co......................................................... 5.6000% 06-Jan-95 9,400,000 9,392,689
Bellsouth Capital Funding Corp....................................... 6.0000% 06-Jan-95 15,000,000 14,987,500
AT&T Corp............................................................ 5.5300% 09-Jan-95 18,000,000 17,977,880
Ford Motor Credit Co................................................. 6.0000% 09-Jan-95 16,000,000 15,978,667
PHH Corp............................................................. 5.9800% 09-Jan-95 14,000,000 13,981,396
Atlantic Richfield Co................................................ 5.4000% 11-Jan-95 14,000,000 13,979,000
AIG Funding Inc...................................................... 5.9500% 11-Jan-95 5,200,000 5,191,406
AIG Funding Inc...................................................... 5.9700% 13-Jan-95 10,000,000 9,980,100
Bank of Nova Scotia.................................................. 5.3000% 17-Jan-95 4,000,000 3,990,578
Banc One Corp........................................................ 5.9700% 17-Jan-95 6,950,000 6,931,559
Motorola Inc......................................................... 5.8000% 20-Jan-95 3,571,000 3,560,069
Emerson Electric Co.................................................. 5.8500% 20-Jan-95 3,300,000 3,289,811
Motorola Inc......................................................... 5.9000% 23-Jan-95 15,000,000 14,945,917
Metlife Funding Inc.................................................. 5.9000% 26-Jan-95 4,400,000 4,381,972
Emerson Electric Co.................................................. 5.9000% 01-Feb-95 5,000,000 4,974,597
Philip Morris Companies Inc.......................................... 5.8500% 01-Feb-95 19,250,000 19,153,028
Hanson Finance....................................................... 5.6300% 02-Feb-95 5,000,000 4,974,978
Metlife Funding Inc.................................................. 6.0300% 06-Feb-95 10,000,000 9,939,700
Pitney Bowes Inc..................................................... 5.9500% 13-Feb-95 5,000,000 4,964,465
General Electric Capital Corp........................................ 5.8700% 14-Feb-95 17,000,000 16,878,035
Dresdner U.S. Finance Inc............................................ 6.0800% 21-Feb-95 3,300,000 3,271,576
-------------
Total Discounted Commercial Paper (amortized cost $288,684,813)...... 288,684,813
-------------
Medium-Term Notes -- Floating Rate (5.0%)
- ---------------------------------------------------------------------
PHH Corp............................................................. 5.840 % 19-Oct-95 4,500,000 4,500,000
Merrill Lynch & Co., Inc............................................. 5.938 % 18-Nov-95 17,000,000 16,996,141
-------------
Total Medium-Term Notes (amortized cost $21,496,141)................. 21,496,141
-------------
Corporate Bonds (3.3%)
- ---------------------------------------------------------------------
Toyota Motor Credit Corp............................................. 5.750 % 15-Jun-95 14,250,000 14,186,990
-------------
Total Corporate Bonds (amortized cost $14,186,990)................... 14,186,990
-------------
Treasury Bills (0.9%)
- ---------------------------------------------------------------------
United States Treasury Bill.......................................... 4.650 % 09-Feb-95 4,000,000 3,979,850
-------------
<CAPTION>
% of Net
Short-Term Investments Assets(a)
- --------------------------------------------------------------------- -----------
<S> <C>
Commercial Paper -- Discounted (67.0%)
- ---------------------------------------------------------------------
Pitney Bowes Inc..................................................... 2.3
Banc One Corp........................................................ 3.2
Proctor & Gamble Co.................................................. 4.2
Emerson Electric Co.................................................. 2.3
BAT Capital Corp..................................................... 1.9
Dupont & Company..................................................... 3.7
Toronto Dominion Holdings............................................ 2.3
Shell Oil Co......................................................... 2.2
Bellsouth Capital Funding Corp....................................... 3.5
AT&T Corp............................................................ 4.2
Ford Motor Credit Co................................................. 3.7
PHH Corp............................................................. 3.2
Atlantic Richfield Co................................................ 3.2
AIG Funding Inc...................................................... 1.2
AIG Funding Inc...................................................... 2.3
Bank of Nova Scotia.................................................. 0.9
Banc One Corp........................................................ 1.6
Motorola Inc......................................................... 0.8
Emerson Electric Co.................................................. 0.8
Motorola Inc......................................................... 3.5
Metlife Funding Inc.................................................. 1.0
Emerson Electric Co.................................................. 1.2
Philip Morris Companies Inc.......................................... 4.4
Hanson Finance....................................................... 1.2
Metlife Funding Inc.................................................. 2.3
Pitney Bowes Inc..................................................... 1.2
General Electric Capital Corp........................................ 3.9
Dresdner U.S. Finance Inc............................................ 0.8
-----------
Total Discounted Commercial Paper (amortized cost $288,684,813)...... 67.0
Medium-Term Notes -- Floating Rate (5.0%)
- ---------------------------------------------------------------------
PHH Corp.............................................................
Merrill Lynch & Co., Inc.............................................
Total Medium-Term Notes (amortized cost $21,496,141)................. 5.0
Corporate Bonds (3.3%)
- ---------------------------------------------------------------------
Toyota Motor Credit Corp.............................................
Total Corporate Bonds (amortized cost $14,186,990)................... 3.3
Treasury Bills (0.9%)
- ---------------------------------------------------------------------
United States Treasury Bill..........................................
</TABLE>
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 21
<PAGE>
G.T. GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
Maturity Principal
Short-Term Investments Yield Date Amount Market Value
- --------------------------------------------------------------------- ---------- ---------- ----------- -------------
Total Treasury Bills (amortized cost $3,979,850)..................... 3,979,850
<S> <C> <C> <C> <C>
-------------
Repurchase Agreement (19.5%)
- ---------------------------------------------------------------------
Dated December 30, 1994, with State Street Bank & Trust Company, due
January 3, 1995, for an effective yield of 5.25% collateralized by
$74,640,000 United States Treasury Bond, 8.875% due 8/15/2017.
(Market value $84,116,288, including accrued interest.) (cost
$84,034,503)....................................................... 84,034,503
-------------
Total Short-Term Investments (cost $412,382,297)*.................... 412,382,297
Other Assets and Liabilities......................................... 18,412,115
-------------
Net Assets........................................................... $ 430,794,412
-------------
-------------
<CAPTION>
% of Net
Short-Term Investments Assets(a)
- --------------------------------------------------------------------- -----------
Total Treasury Bills (amortized cost $3,979,850)..................... 0.9
<S> <C>
Repurchase Agreement (19.5%)
- ---------------------------------------------------------------------
Dated December 30, 1994, with State Street Bank & Trust Company, due
January 3, 1995, for an effective yield of 5.25% collateralized by
$74,640,000 United States Treasury Bond, 8.875% due 8/15/2017.
(Market value $84,116,288, including accrued interest.) (cost
$84,034,503)....................................................... 19.5
-----------
Total Short-Term Investments (cost $412,382,297)*.................... 95.7
Other Assets and Liabilities......................................... 4.3
-----------
Net Assets........................................................... 100.0
-----------
-----------
<FN>
- ------------------
(a) Percentages indicated are based on net assets of $430,794,412.
* For Federal income tax purposes, cost is $412,382,297.
</TABLE>
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 22
<PAGE>
G.T. GLOBAL DOLLAR FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments in securities, at value (amortized cost $328,347,794) (Note 1)........................................ $ 328,347,794
Repurchase agreement, at value (cost $84,034,503)(Note 1)......................................................... 84,034,503
Cash.............................................................................................................. 357,311
Receivable for Fund shares sold................................................................................... 24,882,811
Interest receivable............................................................................................... 211,356
Prepaid insurance................................................................................................. 10,599
--------------
Total assets...................................................................................................... 437,844,374
--------------
Liabilities:
Payable for Fund shares repurchased............................................................................... 6,223,448
Payable for investment management and administration fees (Note 2)................................................ 310,640
Payable for printing and postage expense.......................................................................... 131,602
Income distribution payable (Note 1).............................................................................. 109,107
Payable for transfer agent fees (Note 2).......................................................................... 68,456
Payable for service and distribution expenses (Note 2)............................................................ 63,507
Payable for custodian fees........................................................................................ 54,975
Payable for professional fees..................................................................................... 32,950
Payable for registration fees..................................................................................... 18,311
Payable for Directors' fees (Note 2).............................................................................. 3,272
Accrued expenses.................................................................................................. 33,694
--------------
Total liabilities................................................................................................. 7,049,962
--------------
Net assets (equivalent to $1.00 per share based on 430,812,849 shares of common stock issued and outstanding)....... $ 430,794,412
--------------
--------------
Class A:
Net asset value, offering and redemption price per share
($320,858,340 DIVIDED BY 320,880,489 shares outstanding).......................................................... $ 1.00
--------------
--------------
Class B:+
Net asset value and offering price per share
($109,936,072 DIVIDED BY 109,932,360 shares outstanding).......................................................... $ 1.00
--------------
--------------
Net assets: At December 31, 1994 net assets consisted of paid in capital of $430,812,849 and accumulated net
realized losses of $18,437.
<FN>
- ------------------
+ 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.
Statement of Additional Information Page 23
<PAGE>
G.T. GLOBAL DOLLAR FUND
STATEMENT OF OPERATIONS
Year ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest......................................................................................................... $12,224,267
-----------
Expenses:
Investment management and administration fees (Note 2)........................................................... 1,406,615
Service and distribution expenses: (Note 2)......................................................................
Class A.............................................................................................. $545,042
Class B.............................................................................................. 633,077 1,178,119
--------
Transfer agent fees (Note 2)..................................................................................... 627,250
Registration fees................................................................................................ 192,326
Printing and postage expenses.................................................................................... 144,487
Professional fees................................................................................................ 86,657
Custodian fees................................................................................................... 82,819
Directors' fees and expenses (Note 2)............................................................................ 17,950
Other............................................................................................................ 18,615
-----------
Total Expenses................................................................................................... 3,754,838
Expenses waived by G.T. Capital Management, Inc. -- Class A and Class B (Note 2)................................. (703,312)
-----------
Total net expenses after reimbursement............................................................................. 3,051,526
-----------
Net investment income.............................................................................................. 9,172,741
-----------
Realized gain on investments:
Net realized gain from investments................................................................................. 2,228
-----------
Net increase in net assets resulting from operations............................................................... $ 9,174,969
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 24
<PAGE>
G.T. GLOBAL DOLLAR FUND
STATEMENTS OF CHANGES
IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1994 DECEMBER 31, 1993
-------------------- --------------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income................................................................ $ 9,172,741 $ 1,613,893
Net realized gain (loss) from investments............................................ 2,228 (2,917)
-------------------- --------------------
Net increase in net asssets resulting from investments............................... 9,174,969 1,610,976
-------------------- --------------------
Class A:+
Distributions to shareholders from: (Note 1)
Net investment income.............................................................. (7,423,289) (1,600,066)
Class B:++
Distributions to shareholders from: (Note 1)
Net investment income.............................................................. (1,749,452) (13,827)
Capital share transactions: (Note 3)
Increase from capital shares sold and reinvested................................... 5,479,251,663 1,865,796,156
Decrease from capital shares repurchased........................................... (5,139,759,248) (1,856,167,326)
-------------------- --------------------
Net increase from capital share transaction............................................ 339,492,415 9,628,830
-------------------- --------------------
Total increase in net assets........................................................... 339,494,643 9,625,913
Net assets:
Beginning of year.................................................................... 91,299,769 81,673,856
-------------------- --------------------
End of year.......................................................................... $ 430,794,412 $ 91,299,769
-------------------- --------------------
-------------------- --------------------
<FN>
- ------------------
+ 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.
</TABLE>
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 25
<PAGE>
G.T. GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding,
total investment return, ratios and supplemental data. This information has been
derived from information provided in the financial statements.
<TABLE>
<CAPTION>
CLASS A+
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1994 1993 1992 1991 1990
------------- ---------- ---------- ---------- ----------
Net investment income............................ $ 0.032 $ 0.022 $ 0.028 $ 0.051 $ 0.069
Distributions from net investment income......... (0.032) (0.022) (0.028) (0.051) (0.069)
------------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the year)...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------- ---------- ---------- ---------- ----------
------------- ---------- ---------- ---------- ----------
Total investment return.......................... 3.30% 2.2% 2.8% 5.1% 6.9%
------------- ---------- ---------- ---------- ----------
------------- ---------- ---------- ---------- ----------
Ratios and supplemental data:
Net assets, end of period (in 000's)............. $ 320,858 $ 87,822 $ 81,674 $ 70,925 $ 123,218
Ratio of net investment income to average net
assets (b)...................................... 3.40% 2.17% 2.78% 5.10% 6.95%
Ratio of expenses to average net assets (c)...... 0.92% 1.00% 1.25% 1.25% 1.25%
<CAPTION>
CLASS B++
-----------------------------
<S> <C> <C>
APRIL 1, 1993
YEAR ENDED TO
DECEMBER 31, DECEMBER 31,
1994 1993
------------- -------------
Net investment income............................ $ 0.025 $ 0.010
Distributions from net investment income......... (0.025) (0.010)
------------- -------------
Net asset value (unchanged during the year)...... $ 1.00 $ 1.00
------------- -------------
------------- -------------
Total investment return.......................... 2.53% 1.4%(a)
------------- -------------
------------- -------------
Ratios and supplemental data:
Net assets, end of period (in 000's)............. $ 109,936 $ 3,478
Ratio of net investment income to average net
assets (b)...................................... 2.65% 1.42%(a)
Ratio of expenses to average net assets (c)...... 1.67% 1.75%(a)
<FN>
- ------------------
+ 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.
(a) Annualized.
(b) Ratio of net investment income to average net assets prior to expense
reimbursement by G.T. Capital Management, Inc. ("G.T. Capital") was 3.15%,
1.46%, 2.47%, 4.90% and 6.64% for 1994, 1993, 1992, 1991 and 1990,
respectively, for Class A shares. Such ratio for Class B shares was 2.40%
and .86%(a) for 1994 and 1993, respectively.
(c) Ratio of expenses to average net assets prior to expense reimbursement by
G.T. Capital was 1.17%, 1.72%, 1.56%, 1.45% and 1.56% for 1994, 1993, 1992,
1991 and 1990, respectively, for Class A shares. Such ratio for Class B
shares was 1.92% and 2.31%(a) for 1994 and 1993, respectively.
</TABLE>
Statement of Additional Information Page 26
<PAGE>
G.T. GLOBAL DOLLAR FUND
NOTES TO
FINANCIAL STATEMENTS
December 31, 1994
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global Dollar Fund ("Fund"), formerly G.T. Money Market Fund, is a
diversified series of G.T. Investment Portfolios, Inc. ("Company"). The Company
is registered under the Investment Company Act of 1940, as amended (1940 Act),
as an open-end management investment company. The following is a summary of
significant accounting policies followed by the Fund in the preparation of its
financial statements. The policies are in conformity with generally accepted
accounting principles.
A. PORTFOLIO VALUATION
Securities are valued at amortized cost, which approximates market value.
B. FEDERAL INCOME TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, and unrealized appreciation of securities held, or for excise tax on
income and capital gains. The Fund currently has a capital loss carryforward of
$18,437 which expires in 2001.
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 paid to the Fund under each agreement at its
maturity.
D. OTHER
Security transactions are recorded on the trade date (date the order to buy or
sell is executed). Interest income is recorded on an accrual basis. Dividends to
shareholders from net investment income are declared daily and paid or
reinvested monthly.
2. RELATED PARTIES
G.T. Capital Management, Inc. ("G.T. Capital") serves as the investment manager
and administrator of the Fund. The Fund pays G.T. Capital investment management
and administration fees at the annualized rate of 0.50% of the Fund's average
daily net assets. 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 sold.
G.T. Global Financial Services, Inc. ("G.T. Global"), an affiliate of G.T.
Capital, serves as the Fund's distributor. The Fund offers Class A shares for
purchase. Certain redemptions of Class A shares made within two years of
purchase are subject to contingent deferred sales charges ("CDSCs"), in
accordance with the Fund's current prospectus. Class B shares of the Fund are
available only through an exchange of Class B shares of other G.T. Global Mutual
Funds. Certain redemptions of Class B shares made within six years of purchase
are also subject to CDSCs, in accordance with the Fund's current prospectus. For
the year ended December 31, 1994, G.T. Global collected CDSCs in the amount of
$602,389. In addition, G.T. Global may, from time to time, make ongoing payments
to brokerage firms, financial institutions (including banks) and others that
facilitate the administration and servicing of shareholder accounts.
Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Directors 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 G.T. Global for a portion of its shareholder servicing and
distribution expenses. Under the Class A Plan, the Fund may pay G.T. 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 G.T. Global's expenditures incurred in
servicing and maintaining shareholder accounts, and may pay G.T. Global a
distribution fee at the annualized rate of up to 0.25% 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 G.T. Global's expenditures incurred in providing
services as distributor. G.T. Global does not currently intend to seek
reimbursement of any amounts under the
Statement of Additional Information Page 27
<PAGE>
G.T. GLOBAL DOLLAR FUND
Class A Plan. All expenses for which G.T. 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 G.T. 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 G.T. Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay G.T. 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 G.T. Global's expenditures incurred in providing services as
distributor. G.T. Global does not currently intend to seek reimbursement of any
amounts in excess of 0.75% of average daily net assets under the Class B Plan.
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.
G.T. Capital and G.T. Global have voluntarily undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, interest, taxes and extraordinary
expenses) to the annual rate of 1.00% and 1.75% of the average daily net assets
of the Fund's Class A and Class B shares, respectively. If necessary, this
limitation will be effected by waivers by G.T. Capital of its investment
management and administration fees, waivers by G.T. Global of payments under the
Class A Plan and/or Class B Plan and/or reimbursements by G.T. Capital or G.T.
Global of portions of the Fund's other operating expenses.
G.T. Global Investor Services, Inc. ("G.T. Services"), an affiliate of G.T.
Capital and G.T. Global, is the transfer agent for the Fund.
The Company pays each of its Directors who is not an employee, officer or
director of G.T. Capital, G.T. Global or G.T. Services $1,000 per year plus $300
for each meeting of the board or any committee thereof attended by the Director.
3. CAPITAL SHARES
At December 31, 1994, there were 2,000,000,000 shares of the Company's common
stock authorized, at $0.001 per share. Of this number, one billion shares have
been classified as shares of the Fund; 500 million shares have been classified
as Class A shares and 500 million have been classified as Class B shares. These
amounts may be increased from time to time at the discretion of the Board of
Directors. Transactions in capital shares of the Fund were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1994 DECEMBER 31, 1993
------------------ ------------------
<S> <C> <C>
CLASS A:
Shares sold............. 4,869,818,720 1,848,890,241
Shares issued in
connection with
reinvestment of
distributions.......... 6,725,406 1,384,242
------------------ ------------------
4,876,544,126 1,850,274,483
Shares repurchased...... (4,643,506,545) (1,844,123,266)
------------------ ------------------
Net increase............ 233,037,581 6,151,217
------------------ ------------------
------------------ ------------------
<CAPTION>
APRIL 1, 1993
YEAR ENDED TO
DECEMBER 31, 1994 DECEMBER 31, 1993
------------------ ------------------
<S> <C> <C>
CLASS B:
Shares sold............. 601,281,318 15,510,483
Shares issued in
connection with
reinvestment of
distributions.......... 1,426,219 11,103
------------------ ------------------
602,707,537 15,521,586
Shares repurchased...... (496,252,703) (12,044,060)
------------------ ------------------
Net increase............ 106,454,834 3,477,526
------------------ ------------------
------------------ ------------------
</TABLE>
Statement of Additional Information Page 28
<PAGE>
G.T. GLOBAL DOLLAR FUND
[LOGO]
G.T. GLOBAL GROUP OF FUNDS
G.T. GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY
INVESTORS' PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE
G.T. GLOBAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL G.T.
GLOBAL DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
G.T. GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
G.T. GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity for U.S. investors by investing outside the U.S.
G.T. GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
G.T. GLOBAL HEALTH CARE FUND
Invests in the growing health care industries worldwide
G.T. GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
G.T. GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
G.T. GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
G.T. GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
G.T. GLOBAL CONSUMER PRODUCTS AND
SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
/ / REGIONALLY DIVERSIFIED FUNDS
G.T. GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
G.T. GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
G.T. LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
G.T. GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
G.T. GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
G.T. GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
G.T. GLOBAL GOVERNMENT INCOME FUND
Invests in global government securities
G.T. GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
G.T. GLOBAL HIGH INCOME FUND
Invests in a portfolio of emerging market debt securities
MONEY MARKET FUND
G.T. GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and conservation of capital
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN THIS STATEMENT OF
ADDITIONAL INFORMATION AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY G.T.
GLOBAL DOLLAR FUND, G.T. INVESTMENT PORTFOLIOS, INC., G.T. CAPITAL
MANAGEMENT, INC. OR G.T. GLOBAL FINANCIAL SERVICES, INC. THIS STATEMENT OF
ADDITIONAL INFORMATION DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION
OF ANY OFFER TO BUY ANY OF THE SECURITIES OFFERED HEREBY IN ANY JURISDICTION
TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER IN SUCH
JURISDICTION.
DOLSX506MC
