<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 25, 1996
FILE NO. 2-74549
811-03297
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
POST-EFFECTIVE AMENDMENT NO. 21
AND
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
AMENDMENT NO. 17
------------------------
G.T. INVESTMENT PORTFOLIOS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
50 CALIFORNIA STREET, 27TH FLOOR,
SAN FRANCISCO, CALIFORNIA 94111
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(415) 392-6181
------------------------
<TABLE>
<S> <C>
DAVID J. THELANDER, ESQ. ARTHUR J. BROWN, ESQ.
ASSISTANT GENERAL COUNSEL DANIEL T. STEINER, ESQ.
LGT ASSET MANAGEMENT, INC. KIRKPATRICK & LOCKHART
50 CALIFORNIA STREET, 24TH FLOOR 1800 MASSACHUSETTS AVENUE, N.W.
SAN FRANCISCO, CALIFORNIA 94111 WASHINGTON, D.C. 20036
(NAME AND ADDRESS OF AGENT FOR SERVICE) (202) 778-9000
</TABLE>
------------------------
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE:
/ / IMMEDIATELY UPON FILING PURSUANT TO PARAGRAPH (b) of Rule 485
/X/ ON APRIL 29, 1996 PURSUANT TO PARAGRAPH (b) of Rule 485
/ / 60 DAYS AFTER FILING PURSUANT TO PARAGRAPH (a)(i) of Rule 485
/ / ON PURSUANT TO PARAGRAPH (a)(i) of Rule 485
/ / 75 DAYS AFTER FILING PURSUANT TO PARAGRAPH (a)(ii) of Rule 485
/ / ON PURSUANT TO PARAGRAPH (a)(ii) of Rule 485
/ / THIS POST-EFFECTIVE AMENDMENT DESIGNATES A NEW EFFECTIVE DATE FOR A
PREVIOUSLY FILED POST-EFFECTIVE AMENDMENT.
PURSUANT TO RULE 24f-2 under the Investment Company Act of 1940, Registrant
has elected to register an indefinite number of its shares of common stock. A
Rule 24f-2 Notice for Registrant's fiscal year ended December 31, 1995 was filed
on February 28, 1996.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT
PROSPECTUS
<TABLE>
<CAPTION>
ITEM NO. OF
PART A OF FORM N-1A CAPTIONS IN PROSPECTUS
- --------------------------------- ------------------------------------------------------------------
<S> <C>
1. Cover Page................... Cover Page
2. Synopsis..................... Prospectus Summary
3. Condensed Financial
Information................. Financial Highlights; Other Information
4. General Description of
Registrant.................. Investment Objective and Policies; Management; Other Information
5. Management of the
Fund........................ Management
6. Capital Stock and Other
Securities.................. Alternative Purchase Plan; Dividends and Taxes; Other Information
7. Purchase of Securities
Being Offered............... Alternative Purchase Plan; How to Invest; How to Make Exchanges;
Calculation of Net Asset Value; Management
8. Redemption or
Repurchase.................. Alternative Purchase Plan; How to Redeem Shares; Calculation of
Net Asset Value
9. Pending Legal
Proceedings................. Inapplicable
</TABLE>
PROSPECTUS -- ADVISOR CLASS
<TABLE>
<CAPTION>
ITEM NO. OF
PART A OF FORM N-1A CAPTIONS IN PROSPECTUS
- --------------------------------- ------------------------------------------------------------------
<S> <C>
1. Cover Page................... Cover Page
2. Synopsis..................... Prospectus Summary
3. Condensed Financial
Information................. Financial Highlights; Other Information
4. General Description of
Registrant.................. Investment Objective and Policies; Management; Other Information
5. Management of the
Fund........................ Management
6. Capital Stock and Other
Securities.................. Dividends and Taxes; Other Information
7. Purchase of Securities
Being Offered............... How to Invest; How to Make Exchanges; Calculation of Net Asset
Value; Management
8. Redemption or
Repurchase.................. Alternative Purchase Plan; How to Redeem Shares; Calculation of
Net Asset Value
9. Pending Legal
Proceedings................. Inapplicable
</TABLE>
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT
STATEMENT OF ADDITIONAL INFORMATION
<TABLE>
<CAPTION>
ITEM NO. OF
PART B OF FORM N-1A CAPTIONS IN STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------- ------------------------------------------------------------------
<S> <C>
10. Cover Page................... Cover Page
11. Table of Contents............ Table of Contents
12. General Information and
History..................... Cover Page
13. Investment Objective
and Policies................ Investment Objective and Policies; Investment Limitations
14. Management of the
Fund........................ Directors and Executive Officers; Management
15. Control Persons and
Principal Holders of
Securities.................. Directors and Executive Officers; Management
16. Investment Advisory and
Other Services.............. Management; Additional Information
17. Brokerage Allocation......... Execution of Portfolio Transactions
18. Capital Stock and Other
Securities.................. Inapplicable
19. Purchase, Redemption
and Pricing of Securities
Being Offered............... Valuation of Fund Shares; Information Relating to
Sales and Redemptions
20. Tax Status................... Dividends and Taxes
21. Underwriters................. Management
22. Calculation of
Performance Data............ Investment Results
23. Financial Statements......... Financial Statements
</TABLE>
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT
STATEMENT OF ADDITIONAL INFORMATION -- ADVISOR CLASS
<TABLE>
<CAPTION>
ITEM NO. OF
PART B OF FORM N-1A CAPTIONS IN STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------- ------------------------------------------------------------------
<S> <C>
10. Cover Page................... Cover Page
11. Table of Contents............ Table of Contents
12. General Information and
History..................... Cover Page
13. Investment Objective
and Policies................ Investment Objective and Policies; Investment Limitations
14. Management of the
Fund........................ Directors and Executive Officers; Management
15. Control Persons and
Principal Holders of
Securities.................. Directors and Executive Officers; Management
16. Investment Advisory and
Other Services.............. Management; Additional Information
17. Brokerage Allocation......... Execution of Portfolio Transactions
18. Capital Stock and Other
Securities.................. Inapplicable
19. Purchase, Redemption
and Pricing of Securities
Being Offered............... Valuation of Fund Shares; Information Relating to
Sales and Redemptions
20. Tax Status................... Dividends and Taxes
21. Underwriters................. Management
22. Calculation of
Performance Data............ Investment Results
23. Financial Statements......... Financial Statements
</TABLE>
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CONTENTS OF POST-EFFECTIVE AMENDMENT
This post-effective amendment to the registration statement of G.T.
Investment Portfolios, Inc. contains the following documents:
<TABLE>
<S> <C> <C>
Facing Sheet
Contents of Post-Effective Amendment
Cross-Reference Sheet
Part A -- Prospectus
-- GT Global Dollar Fund -- Class A and Class B
-- GT Global Dollar Fund -- Advisor Class
Part B -- Statement of Additional Information
-- GT Global Dollar Fund -- Class A and Class B
-- GT Global Dollar Fund -- Advisor Class
Part C -- Other Information
Signature Page
Exhibits
</TABLE>
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS -- APRIL 29, 1996
- --------------------------------------------------------------------------------
GT 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 is LGT ASSET MANAGEMENT, INC. ("LGT Asset
Management"). LGT Asset Management and its worldwide affiliates are part of
Liechtenstein Global Trust, a provider of global asset management and private
banking products and services to individual and institutional investors.
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.
An investment in the GT Global Dollar Fund offers the following advantages:
/ / Professional Management by a Leading Manager with Offices in the World's
Major Markets
/ / No Sales Charges on Purchases of Class A Shares
/ / Daily Dividends
/ / Automatic Dividend Reinvestment at No Sales Charge
/ / Checkwriting Privileges
/ / Low $500 Minimum Investment
/ / Automatic Investment Plan
/ / Systematic Withdrawal Plan
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 April 29, 1996, 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 GT 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.
[LOGO]
- --------------------------------------------------------------------------------
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
<PAGE>
GT GLOBAL DOLLAR FUND
TABLE OF CONTENTS
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Page
---------
<S> <C>
Prospectus Summary........................................................................ 3
Financial Highlights...................................................................... 6
Investment Objective and Policies......................................................... 8
Alternative Purchase Plan................................................................. 10
How to Invest............................................................................. 12
How to Make Exchanges..................................................................... 14
How to Redeem Shares...................................................................... 15
Shareholder Account Manual................................................................ 19
Calculation of Net Asset Value............................................................ 20
Dividends and Taxes....................................................................... 20
Management................................................................................ 21
Other Information......................................................................... 23
</TABLE>
Prospectus Page 2
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
- ------------------------------------------------------------
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: LGT Asset Management is part of Liechtenstein Global Trust, a
provider of global asset management and private bank products and
services to individual and institutional investors, entrusted with
approximately $45 billion in total assets
Sales Charges: No sales charges are imposed on sales of Class A shares of the
Fund. Class B shares, which may be obtained only through an
exchange of shares of the corresponding class of other GT Global
Mutual Funds, which are open-end management investment companies
advised and/or administered by LGT Asset Management, may be
subject to a contingent deferred sales charge
Shares Available Through: Class A shares may be obtained through most brokerage firms
nationwide, directly through the Fund's distributor or through an
exchange of Class A shares of other GT Global Mutual Funds. Class
B shares may be obtained only through an exchange of Class B
shares of other GT Global Mutual Funds. Exchanges can be made
through most brokerage firms nationwide, or directly through the
Fund's distributor
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 Fund shares of the distributing class
without a sales charge
First Purchase: $500 minimum ($100 for individual retirement accounts ("IRAs") and
reduced amounts for certain other retirement plans)
Subsequent Purchases: $100 minimum (reduced amounts for IRAs and certain other
retirement plans)
Yield: Quoted in the financial section of most newspapers
Checkwriting: Available on Class A shares upon request
Unlimited number of free checks
$300 minimum amount per check
</TABLE>
Prospectus Page 3
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
INVESTMENT MANAGER AND ADMINISTRATOR. LGT Asset Management and its worldwide
asset management affiliates maintain fully-staffed investment offices in San
Francisco, London, Hong Kong, Tokyo, Singapore, Sydney and Frankfurt. LGT Asset
Management is part of Liechtenstein Global Trust, a provider of global asset
management and private banking products and services to individual and
institutional investors. As of December 31, 1995, assets entrusted to
Liechtenstein Global Trust totaled approximately $45 billion. The companies
comprising Liechtenstein Global Trust are indirect subsidiaries of the Prince of
Liechtenstein Foundation. See "Management."
INVESTMENT OBJECTIVE AND POLICIES. GT 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. 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."
PURCHASES AND REDEMPTIONS. Class A shares of the Fund's common stock are
available through broker/ dealers that have entered into agreements to sell
shares with the Fund's distributor, GT Global, Inc. ("GT Global"). Class A
shares also may be acquired directly through the Fund's distributor or through
exchanges of Class A shares of other GT Global Mutual Funds. Class B shares of
the Fund's common stock may be obtained only through an exchange of Class B
shares of other GT Global Mutual Funds. Redemptions of Class B shares may be
subject to a contingent deferred sales charge. See "How to Invest" and
"Shareholder Account Manual." Shares may be redeemed either through
broker/dealers or the Fund's transfer agent, GT Global Investor Services, Inc.
("Transfer Agent"). See "How to Redeem Shares" and "Shareholder Account Manual."
Prospectus Page 4
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
SUMMARY OF INVESTOR COSTS. The expenses and maximum transaction costs associated
with investing in the Class A and Class B shares of the Fund are reflected in
the following tables+*:
<TABLE>
<CAPTION>
CLASS A CLASS B
--------- ---------
<S> <C> <C>
SHAREHOLDER TRANSACTION COSTS:
Sales charge on purchases of shares................................................................ None None
Sales charges on reinvested distributions to shareholders.......................................... None None
Maximum contingent deferred sales charge........................................................... None 5.0%
Redemption charges................................................................................. None None
Exchange fees:
-- On first four exchanges each year............................................................. None None
-- On each additional exchange................................................................... $7.50 $7.50
ANNUAL FUND OPERATING EXPENSES
(AS A % OF AVERAGE NET ASSETS):
Investment management and administration fees...................................................... 0.50% 0.50%
12b-1 distribution and service fees (after waivers)................................................ 0.00% 0.75%
Other expenses..................................................................................... 0.50% 0.50%
--------- ---------
Total Fund Operating Expenses (after waivers)........................................................ 1.00% 1.75%
</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>
Class A shares........................................................... $ 10 $ 32 $ 55 $ 126
Class B shares
Assuming complete redemption at end of period (1)...................... 68 85 117 220
Assuming no redemption................................................. 18 55 97 126
<FN>
- ------------------
(1) Assumes deduction of the maximum applicable contingent deferred sales
charge.
+ The Fund offers Advisor Class shares to certain categories of investors.
See "Alternative Purchase Plan." Advisor Class shares are not subject to a
distribution or service fee. "Total Fund Operating Expenses" for the
Advisor Class shares are estimated to approximate 1.00%.
* THESE TABLES ARE INTENDED TO ASSIST INVESTORS IN UNDERSTANDING THE VARIOUS
COSTS AND EXPENSES ASSOCIATED WITH INVESTING IN THE FUND. Expenses are
based on the Fund's fiscal year ended December 31, 1995. Long-term
shareholders may pay more than the economic equivalent of the maximum
front-end sales charges permitted by the National Association of Securities
Dealers, Inc. ("NASD") rules regarding investment companies. "Other
expenses" include custody, transfer agent, legal, audit and other expenses.
Without waivers, "12b-1 distribution and service fees" and "Total Fund
Operating Expenses" would have been 0.25%, and 1.25%, respectively, for
Class A shares; and the amount of expenses an investor would pay, assuming
redemption after one, three, five and ten years, would be $13, $39, $69 and
$157. Without waivers, "12b-1 distribution and service fees" and "Total
Fund Operating Expenses" would have been 1.00% and 2.00%, respectively, for
Class B shares; and the amount of expenses an investor would pay, assuming
redemption after one, three, five and ten years, would be $70, $93, $131
and $252. Assuming no redemption, the amount of expenses an investor would
pay after one, three, five and ten years, would be $20, $63, $111 and $252.
See "Management" herein and the Statement of Additional Information for
more information. 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
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
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 the fiscal years ended December 31, 1995, 1994, 1993 and 1992 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. Information presented below for the period prior to January 1, 1987 is
not covered by the auditor's report.
<TABLE>
<CAPTION>
CLASS A+
----------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.050 $ 0.032 $ 0.022 $ 0.028 $ 0.051 $ 0.069 $ 0.075
Distributions from net investment
income................................. (0.050) (0.032) (0.022) (0.028) (0.051) (0.069) (0.075)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investment Return (b)............. 5.08% 3.30% 2.2% 2.8% 5.1% 6.9% 7.6%
Ratios and supplemental data:
Ratio of net investment income to
average net assets:
With expense waivers and reductions
(a).................................. 4.94% 3.40% 2.17% 2.78% 5.10% 6.95% 7.60%
Without expense waivers and reductions
(a).................................. 4.66% 3.15% 1.46% 2.47% 4.90% 6.64% 7.17%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 0.97% 0.92% 1.00% 1.25% 1.25% 1.25% 1.19%
Without expense waivers and reductions
(a).................................. 1.25% 1.17% 1.72% 1.56% 1.45% 1.56% 1.62%
Net assets at end of the period
(in 000's)............................. $183,761 $320,858 $87,822 $81,674 $70,295 $123,218 $13,143
<FN>
- ------------------
+ All capital shares issued and outstanding as of March 31, 1993 were
re-classified as Class A shares.
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
</TABLE>
Prospectus Page 6
<PAGE>
GT GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
CLASS B++
CLASS A+ ----------------------------------
---------------------------------- APRIL 1,
1993
YEAR ENDED DEC. 31, YEAR ENDED DEC. 31, TO
---------------------------------- ---------------------- DEC. 31,
1988 1987 1986 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.058 $ 0.053 $ 0.063 $ 0.040 $ 0.025 $ 0.010
Distributions from net investment
income................................. (0.058) (0.053) (0.063) (0.040) (0.025) (0.010)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
Total Investment Return (b)............. 5.9% 5.4% 6.5% 4.29% 2.53% 1.4%(a)
Ratios and supplemental data:
Ratio of net investment income to
average net
assets:
With expense waivers and reductions
(a).................................. 5.72% 5.24% 5.90% 4.19% 2.65% 1.42%
Without expense waivers and
reductions (a)....................... --% 5.09% 5.07% 3.91% 2.40% 0.86%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 1.03% 0.83% 0.15% 1.72% 1.67% 1.75%
Without expense waivers and
reductions (a)....................... --% 0.98% 0.98% 2.00% 1.92% 2.31%
Net assets at end of the period (in
000's)................................. $11,628 $11,791 $5,295 $99,151 $109,936 $3,478
<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 for periods of less than one year.
(b) Not annualized for periods of less than one year.
</TABLE>
Prospectus Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
INVESTMENT OBJECTIVE
AND POLICIES
- --------------------------------------------------------------------------------
The investment objective of GT 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 LGT Asset Management 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
LGT Asset Management 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 LGT Asset Management 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 LGT Asset Management 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).
Prospectus Page 8
<PAGE>
GT GLOBAL DOLLAR FUND
These corporate obligations include variable rate master notes, which are
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, LGT Asset Management 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 LGT Asset Management'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. LGT Asset
Management 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 LGT Asset Management to present minimal credit risks in
accordance with guidelines approved by the Company's Board of Directors. LGT
Asset Management 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
Prospectus Page 9
<PAGE>
GT GLOBAL DOLLAR FUND
variable and floating rate securities, and different securities may have
different adjustment rates. To the extent that the Fund invests in such variable
and floating rate securities, it is LGT Asset Management's view that the Fund
may be able to take advantage of the higher yield that is usually paid on
longer-term securities. LGT Asset Management 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
may 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.
- --------------------------------------------------------------------------------
ALTERNATIVE PURCHASE PLAN
- --------------------------------------------------------------------------------
DIFFERENCES BETWEEN THE CLASSES. The primary distinction between the two classes
of the Fund's shares offered through this Prospectus lies in their ongoing
expenses and role as exchange vehicles for the corresponding classes of shares
of the GT Global Mutual Funds, as summarized below. Class A and Class B shares
of the Fund represent interests in the same portfolio of investments of the Fund
and have the same rights, except that each class bears the separate expenses of
its Rule 12b-1 distribution plan and has exclusive voting rights with respect to
such plan, and each class has a separate exchange privilege. See "Management"
and "How to Make Exchanges." Class A shares of the Fund are available for
purchase directly by investors. Class B shares may be purchased only via
exchange with Class B shares of other GT Global Mutual Funds.
Dividends and other distributions paid by the Fund with respect to its Class A
and Class B shares are
Prospectus Page 10
<PAGE>
GT GLOBAL DOLLAR FUND
calculated in the same manner and at the same time. The per share dividends on
Class B shares of the Fund will be lower than the per share dividends on Class A
shares of the Fund as a result of the higher service and distribution fees
applicable to Class B shares.
CLASS A SHARES. 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 GT 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 GT Global Mutual Fund, a
sales load will apply to exchanges from the Fund into other GT Global Mutual
Funds, as set forth in the prospectuses of such Funds.
Purchases of the Class A shares of the other GT Global Mutual Funds of $500,000
or more may be made without a sales charge. If a shareholder within one year
after the date of such purchase redeems any Class A shares that were purchased
without a sales charge by reason of a purchase of $500,000 or more, a contingent
deferred sales charge ("CDSC") of 1% of the lower of the original purchase price
or the net asset value of such shares at the time of redemption will be charged.
This CDSC will apply to a redemption by such an investor from any GT Global
Mutual Fund, including the Fund. Class A shares that are redeemed will not be
subject to the CDSC to the extent that the value of such shares represents (1)
reinvestment of dividends or other distributions or (2) Class A shares redeemed
more than one year after their original purchase. Thus, investors purchasing
shares of the Fund via an exchange of certain Class A shares of the other GT
Global Mutual Funds will be subject to a CDSC on a redemption of those Class A
shares of the Fund received in exchange for such Class A shares of the other GT
Global Mutual Fund, if such redemption is made within one year of the original
purchase date.
CLASS B SHARES. Class B shares of the Fund are available only through an
exchange of Class B shares of other GT Global Mutual Funds. No CDSC will be
imposed on the exchange out of Class B shares of any GT 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 that 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 GT 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, GT 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. The higher service and distribution fees paid by
the Class B shares of the Fund will cause that class to have a higher expense
ratio and to pay lower dividends than Class A shares.
See "How to Invest," "How to Redeem Shares" and "Management" for a more complete
description of the contingent deferred sales charges, service fees and
distribution fees for Class A and Class B shares of the Fund and "Dividends and
Taxes" and "Calculation of Net Asset Value" for other differences between these
two classes.
ADVISOR CLASS SHARES. Advisor Class shares may be offered through a separate
prospectus to (a) trustees or other fiduciaries purchasing shares for employee
benefit plans which are sponsored by organizations which have at least 1,000
employees; (b) any account with assets of at least $25,000 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 with assets of at
least $25,000 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 Liechtenstein Global Trust; and (e) any
of the companies comprising or affiliated with Liechtenstein Global Trust.
Prospectus Page 11
<PAGE>
GT GLOBAL DOLLAR FUND
HOW TO INVEST
- --------------------------------------------------------------------------------
GENERAL. The Fund is authorized to issue three classes of shares. Class A shares
are sold to investors with no sales charge, while Class B shares may be obtained
only through an exchange of Class B shares of other GT Global Mutual Funds. See
"Alternative Purchase Plan." The third class of shares of the Fund, the Advisor
Class, may be offered through a separate prospectus only to certain investors.
Orders received 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 Class A Fund shares. The
minimum initial investment is $500 ($100 for IRAs and $25 for custodial accounts
under Section 403(b)(7) of the Internal Revenue Code of 1986, as amended
("Code"), and other tax-qualified employer-sponsored retirement accounts, if
made under a systematic investment plan providing for monthly payments of at
least that amount), and the minimum for additional purchases is $100 (with a $25
minimum for IRAs, Code Section 403(b)(7) custodial accounts and other
tax-qualified employer-sponsored retirement accounts, as mentioned above). 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 GT Global reserve the right to reject any purchase order and to suspend the
offering of shares for a period of time.
PURCHASES THROUGH BROKER/DEALERS. Shares of the Fund may be purchased through
broker/dealers with which GT Global has entered into dealer agreements. Orders
received by such broker/dealers before the close of regular trading on the NYSE
on a Business Day will be effected that day if Federal Funds are available to
the Fund that day, provided that such order is transmitted to the Transfer Agent
prior to its close of business on such day. The broker/dealer will be
responsible for forwarding the investor's order to the Transfer Agent so that it
will be received prior to such time. After an initial investment is made and a
shareholder account is established through a broker/dealer, at the investor's
option subsequent purchases may be made directly through GT Global. See
"Shareholder Account Manual."
Broker/dealers that do not have dealer agreements with GT Global also may offer
to place orders for the purchase of shares. Purchases made through such
broker/dealers will be effected at the net asset value next determined after the
order is received by the Transfer Agent and Federal Funds are available to the
Fund. Such a broker/dealer may charge the investor a transaction fee as
determined by the broker/dealer. That fee may be avoided if shares are purchased
through a broker/dealer which has a dealer agreement with GT Global or directly
through GT Global.
PURCHASES THROUGH THE DISTRIBUTOR. Investors may purchase shares and open an
account directly through GT Global, the Fund's distributor, by completing and
signing an Account Application accompanying this Prospectus. Investors should
mail to the Transfer Agent the completed Account Application together with a
check to cover the purchase in accordance with the instructions provided in the
Shareholder Account Manual. Purchases will be executed at the net asset value
next determined after the Transfer Agent has received the Account Application
and check, and Federal Funds become available to the Fund. Subsequent
investments do not need to be accompanied by such an application.
Investors also may purchase shares of the Fund through GT Global by bank wire to
the Transfer Agent. Bank wire purchases will be executed at the
Prospectus Page 12
<PAGE>
GT GLOBAL DOLLAR FUND
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. The
investor is responsible for providing prior telephonic or facsimile notice to
the Transfer Agent that a bank wire is being sent. An investor's 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. Investors desiring to open an account by bank wire
should call the Transfer Agent at the appropriate toll-free number provided in
the Shareholder Account Manual to obtain an account number and detailed
instructions.
AUTOMATIC INVESTMENT PLAN. Investors may purchase Class A shares of the Fund
through the GT Global Automatic Investment Plan. Under this Plan, an amount
specified by the shareholder of $100 or more (or $25 for IRAs, Code Section
403(b)(7) custodial accounts and other tax-qualified employer-sponsored
retirement accounts) on a monthly or quarterly basis will be sent to the
Transfer Agent from the investor's bank for investment in the Fund. To
participate in the Automatic Investment Plan, investors should complete the
appropriate portion of the Supplemental Application provided at the end of this
Prospectus. Investors should contact their broker/ dealers or GT Global for more
information.
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 13
<PAGE>
GT GLOBAL DOLLAR FUND
HOW TO MAKE EXCHANGES
- --------------------------------------------------------------------------------
Fund shares may be exchanged for shares of the other GT 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 GT Global Mutual Fund shares to be acquired may
be legally made. CLASS A SHARES MAY BE EXCHANGED ONLY FOR CLASS A SHARES OF
OTHER GT GLOBAL MUTUAL FUNDS. CLASS B SHARES MAY BE EXCHANGED ONLY FOR CLASS B
SHARES OF OTHER GT GLOBAL MUTUAL FUNDS. For Class A shares, a sales load will
apply to exchanges from the Fund into other GT Global Mutual Funds; however, no
sales load will be charged if the exchanged shares were acquired as a result of
a previous exchange from another GT Global Mutual Fund. The exchange of Class B
shares will not be subject to a contingent deferred sales charge. Other than the
Fund, the GT Global Mutual Funds currently include:
-- GT GLOBAL AMERICA GROWTH FUND
-- GT GLOBAL AMERICA SMALL CAP GROWTH FUND
-- GT GLOBAL AMERICA VALUE FUND
-- GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
-- GT GLOBAL EMERGING MARKETS FUND
-- GT GLOBAL EUROPE GROWTH FUND
-- GT GLOBAL FINANCIAL SERVICES FUND
-- GT GLOBAL GOVERNMENT INCOME FUND
-- GT GLOBAL GROWTH & INCOME FUND
-- GT GLOBAL HEALTH CARE FUND
-- GT GLOBAL HIGH INCOME FUND
-- GT GLOBAL INFRASTRUCTURE FUND
-- GT GLOBAL INTERNATIONAL GROWTH FUND
-- GT GLOBAL JAPAN GROWTH FUND
-- GT GLOBAL LATIN AMERICA GROWTH FUND*
-- GT GLOBAL NATURAL RESOURCES FUND
-- GT GLOBAL NEW PACIFIC GROWTH FUND
-- GT GLOBAL STRATEGIC INCOME FUND
-- GT GLOBAL TELECOMMUNICATIONS FUND
-- GT GLOBAL WORLDWIDE GROWTH FUND
- --------------
* Formerly, the G.T. Latin America Growth 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. If an investor does
not surrender all of his or her shares in an exchange, the remaining balance in
the investor's account after the exchange must be at least $500. 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.
An investor interested in making an exchange should write or call his or her
broker/dealer or the Transfer Agent to request the prospectus of the other GT
Global Mutual Fund(s) being considered. Certain broker/dealers may charge a fee
for handling exchanges.
EXCHANGES BY TELEPHONE. A shareholder may give exchange information to his or
her Financial Advisor or to the Transfer Agent by telephone at the appropriate
toll-free number provided in the Shareholder Account Manual. Shareholders
automatically have telephone privileges to authorize exchanges. The Fund, GT
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.
EXCHANGES BY MAIL. Exchange orders should be sent by mail to the shareholder's
broker/dealer or to the Transfer Agent at the address set forth in the
Shareholder Account Manual.
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 GT Global's
refusal to accept further purchase and exchange orders from the investor or
broker. The terms of the exchange offer described above may be modified at any
time, on 60 days' prior written notice.
Prospectus Page 14
<PAGE>
GT GLOBAL DOLLAR FUND
HOW TO REDEEM SHARES
- --------------------------------------------------------------------------------
As described below, Class A shares of the Fund may be redeemed without charge at
net asset value. Class B shares of the Fund may be redeemed at their net asset
value (subject to any applicable CDSC). A shareholder's holding period of such
Class B shares of the Fund, as well as his holding period of Class B shares of
any other GT Global Mutual Fund exchanged to purchase Class B shares of the
Fund, would be credited for purposes of measuring the CDSC. Class B shares may
be obtained only through an exchange of Class B shares of other GT Global Mutual
Funds. Shareholders with broker/dealers that sell shares may redeem shares
through such broker/dealers; if the shares are held in the broker/dealer's
"street name," the redemption must be made through the broker/ dealer. Other
shareholders may redeem shares through the Transfer Agent. If a redeeming
shareholder owns both Class A and Class B shares of the Fund, the Class A shares
will be redeemed first unless the shareholder specifically requests otherwise.
Shareholders also may redeem shares by writing checks against their Fund
accounts. Redemption requests received in good order before the close of regular
trading on the NYSE on any Business Day will be effected at the net asset value
calculated on that day.
Class B shares of the Fund that are redeemed will not be subject to a CDSC to
the extent that the value of such shares represents: (1) reinvestment of
dividends or (2) shares redeemed more than six years after their purchase.
Redemptions of most other Class B shares will be subject to a CDSC. See
"Contingent Deferred Sales Charge Waivers." The amount of any applicable CDSC
will be calculated by multiplying the lesser of the original purchase price or
the net asset value of such shares at the time of redemption by the applicable
percentage shown in the table below. For purposes of this calculation, the Fund
will consider the original purchase price of the shares exchanged to purchase
Class B shares of the Fund. Accordingly, no charge is imposed on increases in
net asset value above the original purchase price:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED SALES
CHARGE AS A PERCENTAGE OF THE
LESSER OF NET ASSET VALUE AT
REDEMPTION
OR THE ORIGINAL
REDEMPTION DURING PURCHASE PRICE
- ------------------------------ -----------------------------
<S> <C>
1st Year Since Purchase....... 5%
2nd Year Since Purchase....... 4%
3rd Year Since Purchase....... 3%
4th Year Since Purchase....... 3%
5th Year Since Purchase....... 2%
6th year Since Purchase....... 1%
Thereafter.................... 0%
</TABLE>
In determining whether a CDSC is applicable to a redemption, the calculation
will be made in a manner that results in the lowest possible rate. It will be
assumed that the redemption is made first of amounts representing shares
acquired pursuant to the reinvestment of dividends; then of amounts representing
the cost of shares purchased seven years or more prior to the redemption; and
finally, of amounts representing the cost of shares held for the longest period
of time within the applicable six-year period.
For example, assume an investor purchases 100 Class B shares of another GT
Global Mutual Fund at $10 per share for a cost of $1,000. Subsequently, the
shareholder acquired 15 additional shares of that Fund through dividend
reinvestment. The investor then decides to exchange his shares of the other GT
Global Mutual Fund for Class B shares of the Fund. At the time of exchange, the
original Fund's shares had a net asset value of $11 per share, for a total value
of $1,265. Accordingly, the investor acquires 1,265 shares of the Fund. The
shareholder then acquires 50 additional shares of the Fund through dividend
reinvestment. Subsequently, in the third year after the original purchase, the
investor decides to redeem $500 of his or her investment. The CDSC would not be
applied to the value of any of the reinvested dividend shares. Therefore, $185
of the $500 redemption proceeds ($500 minus $315) would be charged at a rate of
3% (the applicable rate in the third year after purchase) for a total contingent
deferred sales charge of $5.55.
Prospectus Page 15
<PAGE>
GT GLOBAL DOLLAR FUND
CONTINGENT DEFERRED SALES CHARGE WAIVERS. The contingent deferred sales charge
will be waived for exchanges, as described below, and for redemptions in
connection with the Fund's systematic withdrawal plan not in excess of 12% of
the value of the account annually. In addition, the contingent deferred sales
charge will be waived in the following circumstances: (1) total or partial
redemptions made within one year following the death or disability of a
shareholder; (2) minimum required distributions made in connection with a GT
Global IRA, Keogh Plan, Code Section 403(b)(7) custodial account or other
retirement plan following attainment of age 70 1/2; (3) total or partial
redemptions resulting from a distribution following retirement in the case of a
tax-qualified employer-sponsored retirement plan; (4) when a redemption results
from a tax-free return of an excess contribution pursuant to Section 408(d)(4)
or (5) of the Code or from the death or disability of the employee; (5) a
one-time reinvestment in Class B shares of the Fund within 180 days of a prior
redemption; (6) redemptions pursuant to the Fund's right to liquidate a
shareholder's account involuntarily; (7) redemptions pursuant to distributions
from a tax-qualified employer-sponsored retirement plan, which is invested in GT
Global Mutual Funds, which are permitted to be made without penalty pursuant to
the Code (other than tax-free rollovers or transfers of assets) and the proceeds
of which are reinvested in Fund shares; (8) redemptions made in connection with
participant-directed exchanges between options in an employer-sponsored benefit
plan; (9) redemptions made for the purpose of providing cash to fund a loan to a
participant in a tax-qualified retirement plan; (10) redemptions made in
connection with a distribution from any retirement plan or account that is
permitted in accordance with the provisions of Section 72(t)(2) of the Code and
the regulations promulgated thereunder; (11) redemptions made in connection with
a distribution from any retirement plan or account that involves the return of
an excess deferral amount pursuant to Section 401(k)(8) or Section 402(g)(2) of
the Code or the return of excess aggregate contributions pursuant to Section
401(m)(6) of the Code; (12) redemptions made in connection with a distribution
(from a qualified profit-sharing or stock bonus plan described in Section 401(k)
of the Code) to a participant or beneficiary under Section 401(k)(2)(B)(IV) of
the Code upon hardship of the covered employee (determined pursuant to Treasury
Regulation Section 1.401(k)-1(d)(2); and (13) redemptions made by or for the
benefit of certain states, counties or cities, or any instrumentalities,
departments or authorities thereof where such entities are prohibited or limited
by applicable law from paying a sales charge or commission.
REDEMPTIONS THROUGH BROKER/DEALERS. Shareholders with accounts at broker/dealers
which sell shares of the Fund may submit redemption requests to such
broker/dealers. Broker/dealers may honor a redemption request either by
repurchasing shares from a redeeming shareholder at the shares' net asset value
next computed after the broker/ dealer receives the request or, as described
below, by forwarding such requests to the Transfer Agent (see "How to Redeem
Shares -- Redemptions Through the Transfer Agent"). Redemption proceeds (less
any applicable contingent deferred sales charge for Class B shares) normally
will be paid by check or, if offered by the broker/dealer, credited to the
shareholder's brokerage account at the election of the shareholder.
Broker/dealers may impose a service charge for handling redemption transactions
placed through them and may have other requirements concerning redemptions.
Accordingly, shareholders should contact their broker/dealers for more details.
REDEMPTIONS THROUGH THE TRANSFER AGENT. 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 (less any
applicable contingent deferred sales charge for Class B shares). 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.
A shareholder with questions concerning the Fund's signature guarantee
requirement should contact the Transfer Agent.
Prospectus Page 16
<PAGE>
GT GLOBAL DOLLAR FUND
Shareholders may qualify to have redemption proceeds sent to a Pre-Designated
Account by completing the appropriate section of the Account Application at the
end of this Prospectus. 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
instruc-
tion 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, GT 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.
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 registered account owner(s) 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.
CHECKWRITING. Shareholders may redeem Class A shares of the Fund by writing
checks, a supply of which may be obtained through the Transfer Agent, against
their Fund accounts. The minimum check amount is $300. When the check is
presented to the Transfer Agent for payment, the Transfer Agent will cause the
Fund to redeem a sufficient number of Class A shares to cover the amount of the
check. This procedure enables the shareholder to continue receiving dividends on
those shares until such time as the check is presented to the Transfer Agent for
payment. Cancelled checks are not returned; however, shareholders may obtain
photocopies of their cancelled checks upon request. If a Class A shareholder
does not own sufficient Class A shares to cover a check, the check will be
returned to the payee marked "not sufficient funds." Checks written in amounts
less than $300 also will be returned. The Fund and the Transfer Agent reserve
the right to terminate or modify the checkwriting service at any time or to
impose a service charge in connection therewith.
Because the aggregate amount of Class A shares owned by a shareholder is likely
to change each day, shareholders should not attempt to redeem all Class A shares
held in their accounts by using the check redemption procedure. Charges may be
imposed for specially imprinted checks, business checks, copies of cancelled
checks, stop payment orders, checks returned "not sufficient funds" and checks
returned because they are written for less than $300; these charges will be paid
by redeeming automatically an appropriate number of Class A shares.
Class A shareholders who are interested in checkwriting should obtain the
necessary forms by calling the Transfer Agent at the number provided in the
Shareholder Account Manual. Checkwriting generally is not available to persons
who hold Class A shares in tax-deferred retirement plan accounts.
Checkwriting is not available to redeem Class B shares of the Fund.
SYSTEMATIC WITHDRAWAL PLAN. Shareholders owning shares with a value of $10,000
or more may participate in the GT Global Systematic Withdrawal Plan. A
participating shareholder will receive monthly, quarterly or annual redemptions
of Fund shares with respect to either Class A or Class B shares. No contingent
deferred sales charge will be
Prospectus Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
imposed on redemptions made under the Systematic Withdrawal Plan. The minimum
withdrawal amount is $100. The amount or percentage a participating shareholder
specifies to be redeemed may not, on an annualized basis, exceed 12% of the
value of the account, as of the time the shareholder elects to participate in
the Systematic Withdrawal Plan. To participate in the Systematic Withdrawal
Plan, investors should complete the appropriate portion of the Supplemental
Application provided at the end of this Prospectus. Investors should contact
their broker/dealers or the Transfer Agent for more information.
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 doubt about what documents are required should contact
his or her broker/dealer or the Transfer Agent.
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 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.
The Fund may redeem the shares of any shareholder whose account is reduced to
less than $500 in net asset value 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 his or her holdings to an aggregate amount of $500 or more (with a
minimum purchase of $100 or more). For additional information on how to redeem
shares, see the Shareholder Account Manual.
Prospectus Page 18
<PAGE>
GT GLOBAL DOLLAR FUND
SHAREHOLDER ACCOUNT MANUAL
- --------------------------------------------------------------------------------
Shareholders are encouraged to place purchase, exchange and redemption orders
through their broker/dealers. Shareholders also may place such orders directly
through GT Global in accordance with this Manual. See "How to Invest," "How to
Make Exchanges" and "How to Redeem Shares" for more information.
The Fund's Transfer Agent is GT 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:
GT Global
P.O. Box 7345
San Francisco, California 94120-7345
INVESTMENTS BY BANK WIRE
An investor opening a new account should call 1-800-223-2138 to obtain an
account number. WITHIN SEVEN DAYS OF PURCHASE SUCH AN INVESTOR MUST SEND A
COMPLETED ACCOUNT APPLICATION CONTAINING THE INVESTOR'S CERTIFIED TAXPAYER
IDENTIFICATION NUMBER TO GT GLOBAL INVESTOR SERVICES AT THE ADDRESS PROVIDED
ABOVE UNDER "INVESTMENTS BY MAIL." Wire instructions must state Fund name,
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 GT 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 GT Global Mutual Fund exchanging into,
shareholder's registered name and account number, to:
GT Global
P.O. Box 7893
San Francisco, California 94120-7893
REDEMPTIONS BY TELEPHONE
Call GT 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:
GT 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:
GT Global Investor Services
California Plaza
2121 N. California Boulevard
Suite 450
Walnut Creek, California 94956
ADDITIONAL QUESTIONS
Shareholders with additional questions regarding purchase, exchange and
redemption procedures may call GT Global at 1-800-223-2138.
Prospectus Page 19
<PAGE>
GT 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 Class B shares will be lower than per
share dividends on Class A shares as a result of the higher service and
distribution fees applicable to the Class B shares; the per share dividends on
both such classes of shares will be lower than the per share dividends on the
Advisor Class shares as a result of the absence of any service and distribution
fees applicable to Advisor Class shares.
Dividends are automatically reinvested in Fund shares of the distributing class
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. Reinvestments in the corresponding class of
shares of another GT Global Mutual Fund may only be directed to an account with
the identical shareholder registration and account number. 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 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 Code. 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
Prospectus Page 20
<PAGE>
GT GLOBAL DOLLAR FUND
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 shares.
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 LGT Asset
Management 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 LGT Asset Management management and administration fees, computed
daily and paid monthly, at the annualized rate of 0.50% of the Fund's average
daily net assets.
LGT Asset Management also serves as the Fund's pricing and accounting agent. The
monthly fee for these services to LGT Asset Management is a percentage, not to
exceed 0.03% annually, of the Fund's average daily net assets. The annual fee
rate is derived by applying 0.03% to the first $5 billion of assets of GT Global
Mutual Funds and 0.02% to the assets in excess of $5 billion, and allocating the
result according to each Fund's average daily net assets.
LGT Asset Management provides investment management and/or administration
services to the GT Global Mutual Funds. LGT Asset Management and its worldwide
asset management affiliates have provided investment management and/or
administration services to institutional, corporate and individual clients
around the world since 1969. The U.S. offices of LGT Asset Management are
located at 50 California Street, 27th Floor, San Francisco, California 94111.
LGT Asset Management and its worldwide affiliates, including LGT Bank in
Liechtenstein, formerly Bank in Liechtenstein, comprise Liechtenstein Global
Trust, formerly BIL GT Group Limited. Liechtenstein Global Trust is a provider
of global asset management and private banking products and services to
individual and institutional investors. Liechtenstein Global Trust 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. The principal business address of the Prince of Liechtenstein
Foundation is Herrengasse 12, FL-9490, Vaduz, Liechtenstein.
Prospectus Page 21
<PAGE>
GT GLOBAL DOLLAR FUND
As of December 31, 1995, LGT Asset Management and its worldwide affiliates
managed approximately $27 billion, of which approximately $15 billion consists
of GT Global retail funds worldwide. In the U.S., as of December 31, 1995, LGT
Asset Management managed or administered approximately $10 billion in GT Global
Mutual Funds. As of December 31, 1995, assets under advice by LGT Bank in
Liechtenstein exceeded approximately $18 billion. As of December 31, 1995,
assets entrusted to Liechtenstein Global Trust totaled approximately $45
billion.
In addition to the resources of its San Francisco office, LGT Asset Management
uses the expertise, personnel, data and systems of other offices of
Liechtenstein Global Trust, including investment offices in London, Hong Kong,
Tokyo, Singapore, Sydney and Frankfurt. In managing the GT Global Mutual Funds,
LGT Asset Management employs a team approach, taking advantage of the resources
of these various investment offices around the world in seeking to achieve each
Fund's investment objective. Many of the investment managers who manage the GT
Global Mutual Funds' portfolios are natives of the countries in which they
invest, speak local languages and/or live or work in the markets they follow.
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>
Jeffrey W. Gorman Portfolio Manager since 1995 Money Market Analyst and Trader for
San Francisco LGT Asset Management from 1994 to
1995; Investment Operations
Specialist for LGT Asset Management
from February 1993 to April 1994;
Financial Services Representative for
LGT Asset Management from June 1992
to February 1993; prior thereto, a
student at the University of
California at Berkeley.
</TABLE>
In placing orders for the Fund's portfolio transactions, LGT Asset Management
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. LGT Asset Management 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, LGT Asset Management may
consider a dealer's sale of shares of the GT Global Mutual Funds as a factor in
considering through whom portfolio transactions will be effected.
DISTRIBUTION OF FUND SHARES. GT Global is the distributor, or principal
underwriter, of the Fund's Class A and Class B shares. Like LGT Asset
Management, GT Global is a subsidiary of Liechtenstein Global Trust with offices
at 50 California Street, 27th Floor, San Francisco, California 94111. LGT Asset
Management and any 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 shareholder accounts.
Under a plan of distribution adopted by the Company's Board of Directors
pursuant to Rule 12b-1 under the 1940 Act, with respect to the Fund's Class A
shares ("Class A Plan"), the Fund may pay GT Global a service fee at the
annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may pay GT Global a distribution fee at the annualized
rate of up to 0.25% of the average daily net assets of the Fund's Class A
shares, less any amounts paid by the Fund
Prospectus Page 22
<PAGE>
GT GLOBAL DOLLAR FUND
as the aforementioned service fee, for its expenditures incurred in providing
services as distributor. All expenses for which GT Global is reimbursed under
the Class A Plan will have been incurred within one year of such reimbursement.
Pursuant to a separate plan of distribution adopted with respect to the Fund's
Class B shares ("Class B Plan"), the Fund may pay GT Global a service fee at the
annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may pay GT Global a distribution fee at the annualized
rate of up to 0.75% of the average daily net assets of the Fund's Class B shares
for its expenditures incurred in providing services as distributor. GT Global
does not currently intend to seek reimbursement of any amounts under the Class A
Plan, or of 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. GT Global's service and distribution expenses
include the payment of ongoing commissions; the cost of any additional
compensation paid by GT Global to brokers and dealers; the costs of printing and
mailing to prospective investors prospectuses and other materials relating to
the Fund; the costs of developing, printing, distributing and publishing
advertisements and other sales literature; and allocated costs relating to GT
Global's distribution activities, including among other things, employee
salaries, bonuses and other overhead expenses. In addition, its expenses under
the Class B Plan include interest on any unreimbursed amounts carried forward
thereunder.
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, GT 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 GT 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.
- --------------------------------------------------------------------------------
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. Shortly
after the end of the Fund's fiscal year on December 31 and fiscal half-year on
June 30 of each year, shareholders 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 dividends
paid by the Fund to its shareholders are reported after the end of each fiscal
year on Form 1099-DIV. Under certain circumstances, duplicate mailings of such
reports to the same household may be consolidated.
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. Effective May 1, 1991, the Fund changed its name from "G.T. Money
Market Fund" to "GT 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.
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
Prospectus Page 23
<PAGE>
GT GLOBAL DOLLAR FUND
five hundred million shares 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 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, if any, related to the distribution of its shares. Shares of the Fund
when issued are fully paid and nonassessable.
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 50 California Street, 27th Floor,
San Francisco, California 94111.
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.
Prospectus Page 24
<PAGE>
GT GLOBAL DOLLAR FUND
In addition, in order to more completely represent the Fund's performance or
more accurately 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. 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 GT Global Investor Services, Inc. The
Transfer Agent is an affiliate of LGT Asset Management and GT Global, a
subsidiary of Liechtenstein Global Trust and maintains offices at California
Plaza, 2121 North California Boulevard, Suite 450, Walnut Creek, CA 94596.
CUSTODIAN. State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts 02110 is custodian of the Fund's assets.
COUNSEL. The law firm of Kirkpatrick & Lockhart LLP, 1800 Massachusetts Avenue,
N.W., Washington, D.C., 20036-1800, acts as counsel to the Fund. Kirkpatrick &
Lockhart LLP also acts as counsel to LGT Asset Management, GT Global and GT
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 25
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 26
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 27
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 28
<PAGE>
GT GLOBAL DOLLAR FUND
GT GLOBAL MUTUAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT YOUR FINANCIAL ADVISOR OR CALL GT GLOBAL
DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside
the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND
SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
[LOGO]
NO DEALER, SALES REPRESENTATIVE 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 GT GLOBAL DOLLAR FUND, LGT
ASSET MANAGEMENT, INC., G.T. INVESTMENT PORTFOLIOS, INC., OR GT GLOBAL, 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.
DOLPR604
<PAGE>
GT GLOBAL DOLLAR FUND: ADVISOR CLASS
PROSPECTUS -- APRIL 29, 1996
- --------------------------------------------------------------------------------
GT 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 is LGT ASSET MANAGEMENT, INC. ("LGT Asset
Management"). LGT Asset Management and its worldwide affiliates are part of
Liechtenstein Global Trust, a provider of global asset management and private
banking products and services to individual and institutional investors.
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 GT 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 April 29, 1996, 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 GT 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.
[LOGO]
- --------------------------------------------------------------------------------
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
<PAGE>
GT GLOBAL DOLLAR FUND
TABLE OF CONTENTS
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Page
---------
<S> <C>
Prospectus Summary........................................................................ 3
Financial Highlights...................................................................... 6
Investment Objective and Policies......................................................... 8
How to Invest............................................................................. 11
How to Make Exchanges..................................................................... 12
How to Redeem Shares...................................................................... 13
Shareholder Account Manual................................................................ 15
Calculation of Net Asset Value............................................................ 16
Dividends and Taxes....................................................................... 16
Management................................................................................ 17
Other Information......................................................................... 19
</TABLE>
Prospectus Page 2
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
- ------------------------------------------------------------
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: LGT Asset Management is part of Liechtenstein Global Trust, a
provider of global asset management and private banking products
and services to individual and institutional investors, entrusted
with approximately $45 billion in total assets
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
Advisor Class Shares: least 1,000 employees; (b) any account with assets of at least
$25,000 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 with assets of at least $25,000 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 Liechtenstein Global
Trust; and (e) any of the companies comprising or affiliated with
Liechtenstein Global Trust
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 GT Global Dollar Fund are calculated
daily and may be obtained by calling 1-800-223-2138
</TABLE>
Prospectus Page 3
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
INVESTMENT MANAGER AND ADMINISTRATOR. LGT Asset Management and its worldwide
asset management affiliates maintain fully-staffed investment offices in San
Francisco, London, Hong Kong, Tokyo, Singapore, Sydney and Frankfurt. LGT Asset
Management is part of Liechtenstein Global Trust, a provider of global asset
management and private banking products and services to individual and
institutional investors. As of December 31, 1995, assets entrusted to
Liechtenstein Global Trust totaled approximately $45 billion. The companies
comprising Liechtenstein Global Trust are indirect subsidiaries of the Prince of
Liechtenstein Foundation. See "Management."
INVESTMENT OBJECTIVE AND POLICIES. GT 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. 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."
PURCHASES AND REDEMPTIONS. Advisor Class shares of the Fund's common stock are
available through Financial Advisors who have entered into agreements with the
Fund's distributor, GT Global, Inc. ("GT Global") and certain of its affiliates.
See "How to Invest" and "Shareholder Account Manual." Shares may be redeemed
through the Fund's transfer agent, GT Global Investor Services, Inc. ("Transfer
Agent"). See "How to Redeem Shares" and "Shareholder Account Manual."
Prospectus Page 4
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
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................................................................................... 0.50 %
12b-1 distribution and service fees......................................................................... None
Other expenses.............................................................................................. 0.50 %
----------
Total Fund Operating Expenses................................................................................. 1.00 %
</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..................................................... $ 10 $ 32 $ 55 $ 126
</TABLE>
- --------------
* BECAUSE ADVISOR CLASS SHARES WERE NOT OFFERED PRIOR TO JUNE 1, 1995,
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, 1995. 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 operating expenses. See "Management"
herein and the Statement of Additional Information for more information.
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 Liechtenstein Global
Trust 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.
Prospectus Page 5
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below provides condensed information concerning income and capital
changes for one share of each class of shares 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 the fiscal years ended December 31, 1995, 1994, 1993 and 1992 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 A+
----------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income................... 0.050 $ 0.032 $ 0.022 $ 0.028 $ 0.051 $ 0.069 $ 0.075
Distributions from net investment
income................................. (0.050) (0.032) (0.022) (0.028) (0.051) (0.069) (0.075)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investment Return (b)............. 5.08% 3.30% 2.2% 2.8% 5.1% 6.9% 7.6%
Ratios and supplemental data:
Ratio of net investment income to
average net assets:
With expense waivers and reductions
(a).................................. 4.94% 3.40% 2.17% 2.78% 5.10% 6.95% 7.60%
Without expense waivers and reductions
(a).................................. 4.66% 3.15% 1.46% 2.47% 4.90% 6.64% 7.17%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 0.97% 0.92% 1.00% 1.25% 1.25% 1.25% 1.19%
Without expense waivers and reductions
(a).................................. 1.25% 1.17% 1.72% 1.56% 1.45% 1.56% 1.62%
Net assets at end of the period
(in 000's)............................. $183,761 $320,858 $87,822 $81,674 $70,295 $123,218 $13,143
</TABLE>
- --------------
+ All capital shares issued and outstanding as of March 31, 1993 were
re-classified as Class A shares.
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
Prospectus Page 6
<PAGE>
GT GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
CLASS B++ ADVISOR
CLASS A+ ---------------------------------- CLASS+++
---------------------------------- APRIL 1, ----------
1993 JUNE 1,
YEAR ENDED DEC. 31, YEAR ENDED DEC. 31, TO 1995 TO
---------------------------------- ---------------------- DEC. 31, DEC. 31,
1988 1987 1986 1995 1994 1993 1995
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.058 $ 0.053 $ 0.063 $ 0.040 $ 0.025 $ 0.010 $ 0.030
Distributions from net investment
income................................. (0.058) (0.053) (0.063) (0.040) (0.025) (0.010) (0.030 )
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investment
Return (b)............................. 5.9% 5.4% 6.5% 4.29% 2.53% 1.4%(a) 2.92%
Ratios and supplemental data:
Ratio of net investment income to
average net
assets:
With expense waivers and reductions
(a).................................. 5.72% 5.24% 5.90% 4.19% 2.65% 1.42% 4.94%
Without expense waivers and reductions
(a).................................. --% 5.09% 5.07% 3.91% 2.40% 0.86% 4.91%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 1.03% 0.83% 0.15% 1.72% 1.67% 1.75% 0.97%
Without expense waivers and reductions
(a).................................. --% 0.98% 0.98% 2.00% 1.92% 2.31% 1.00%
Net assets at end of the period (in
000's)................................. $11,628 $11,791 $5,295 $99,151 $109,936 $3,478 $2,096
</TABLE>
- --------------
+ 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.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
Prospectus Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
INVESTMENT OBJECTIVE
AND POLICIES
- --------------------------------------------------------------------------------
The investment objective of GT 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 LGT Asset Management 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
LGT Asset Management 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 LGT Asset Management 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 LGT Asset Management 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
Prospectus Page 8
<PAGE>
GT GLOBAL DOLLAR FUND
master notes, which are 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, LGT Asset Management 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 LGT Asset Management'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. LGT Asset
Management 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 LGT Asset Management to present minimal credit risks in
accordance with guidelines approved by the Company's Board of Directors. LGT
Asset Management 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
Prospectus Page 9
<PAGE>
GT GLOBAL DOLLAR FUND
the extent that the Fund invests in such variable and floating rate securities,
it is LGT Asset Management's view that the Fund may be able to take advantage of
the higher yield that is usually paid on longer-term securities. LGT Asset
Management 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
may 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 10
<PAGE>
GT 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 1,000 employees; (b) any
account with assets of at least $25,000 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 with assets of
at least $25,000 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 Liechtenstein
Global Trust; and (e) any of the companies comprising or affiliated with
Liechtenstein Global Trust. 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 GT Global and certain of its affiliates.
Investors may be charged a fee by their agent or broker if they effect
transactions other than through a dealer.
Orders received by GT 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 GT 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 GT Global concerning their eligibility to purchase Advisor Class
shares. For specific information on opening an account, please contact your
Financial Advisor or GT Global.
PURCHASES BY BANK WIRE. Shares of the Fund may also be purchased through GT
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 11
<PAGE>
GT GLOBAL DOLLAR FUND
HOW TO MAKE EXCHANGES
- --------------------------------------------------------------------------------
Advisor Class shares of the Fund may only be exchanged for Advisor Class shares
of the other GT Global Mutual Funds, which are open-end management investment
companies advised and/or administered by LGT Asset Management, 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 GT Global Mutual Fund shares to be acquired may be legally made. Other than
the Fund, the GT Global Mutual Funds currently include:
-- GT GLOBAL AMERICA GROWTH FUND
-- GT GLOBAL AMERICA SMALL CAP GROWTH FUND
-- GT GLOBAL AMERICA VALUE FUND
-- GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
-- GT GLOBAL EMERGING MARKETS FUND
-- GT GLOBAL EUROPE GROWTH FUND
-- GT GLOBAL FINANCIAL SERVICES FUND
-- GT GLOBAL GOVERNMENT INCOME FUND
-- GT GLOBAL GROWTH & INCOME FUND
-- GT GLOBAL HEALTH CARE FUND
-- GT GLOBAL HIGH INCOME FUND
-- GT GLOBAL INFRASTRUCTURE FUND
-- GT GLOBAL INTERNATIONAL GROWTH FUND
-- GT GLOBAL JAPAN GROWTH FUND
-- GT GLOBAL LATIN AMERICA GROWTH FUND*
-- GT GLOBAL NATURAL RESOURCES FUND
-- GT GLOBAL NEW PACIFIC GROWTH FUND
-- GT GLOBAL STRATEGIC INCOME FUND
-- GT GLOBAL TELECOMMUNICATIONS FUND
-- GT GLOBAL WORLDWIDE GROWTH FUND
- --------------
* Formerly, the G.T. Latin America Growth 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 exchanges. The Fund, GT 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. 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 GT Global Mutual Fund(s) being considered. Other investors should
contact GT 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 GT 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 12
<PAGE>
GT 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, GT 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.
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 redemption which are
subject to any special conditions or which specify a future or past effective
date cannot be accepted.
Prospectus Page 13
<PAGE>
GT GLOBAL DOLLAR FUND
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.
The Fund and GT Global each reserves the right to redeem the shares of any
Advisory Account or Wrap Fee Account if the amount invested in GT Global Mutual
Funds through such account is reduced to less than $500 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 GT 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.
Prospectus Page 14
<PAGE>
GT 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 GT 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:
GT 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 GT 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 GT 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 GT Global Mutual Fund exchanging into,
shareholder's registered name and account number, to:
GT Global
P.O. Box 7893
San Francisco, California 94120-7893
REDEMPTIONS BY TELEPHONE
Call GT 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:
GT 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:
GT 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 GT Global at 1-800-223-2138.
Prospectus Page 15
<PAGE>
GT 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. Reinvestments in Advisor Class shares of another GT Global
Mutual Fund may only be directed to an account with an identical shareholder
registration and account number. 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 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
Prospectus Page 16
<PAGE>
GT GLOBAL DOLLAR FUND
Fund's earnings and profits, whether they are received in cash or reinvested in
additional shares.
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 LGT Asset
Management 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 LGT Asset Management management and administration fees, computed
daily and paid monthly, at the annualized rate of 0.50% of the Fund's average
daily net assets.
LGT Asset Management also serves as the Fund's pricing and accounting agent. The
monthly fee for these services to LGT Asset Management is a percentage, not to
exceed 0.03% annually, of the Fund's average daily net assets. The annual fee
rate is derived by applying 0.03% to the first $5 billion of assets of GT Global
Mutual Funds and 0.02% to the assets in excess of $5 billion, and allocating the
result according to each Fund's average daily net assets.
LGT Asset Management provides investment management and/or administration
services to the GT Global Mutual Funds. LGT Asset Management and its worldwide
asset management affiliates have provided investment management and/or
administration services to institutional, corporate and individual clients
around the world since 1969. The U.S. offices of LGT Asset Management are
located at 50 California Street, 27th Floor, San Francisco, California 94111.
LGT Asset Management and its worldwide affiliates, including LGT Bank in
Liechtenstein, formerly Bank in Liechtenstein, comprise Liechtenstein Global
Trust, formerly BIL GT Group Limited. Liechtenstein Global Trust is a provider
of global asset management and private banking products and services to
individual and institutional investors. Liechtenstein Global Trust 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. The principal business address of the Prince of Liechtenstein
Foundation is Herrengasse 12, FL-9490, Vaduz, Liechtenstein.
As of December 31, 1995, LGT Asset Management and its worldwide affiliates
managed approximately $27 billion, of which approximately
Prospectus Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
$15 billion consists of GT Global retail funds worldwide. In the U.S., as of
December 31, 1995, LGT Asset Management managed or administered approximately
$10 billion in GT Global Mutual Funds. As of December 31, 1995, assets under
advice by LGT Bank in Liechtenstein exceeded approximately $18 billion. As of
December 31, 1995, assets entrusted to Liechtenstein Global Trust totaled
approximately $45 billion.
In addition to the resources of its San Francisco office, LGT Asset Management
uses the expertise, personnel, data and systems of other offices of
Liechtenstein Global Trust, including investment offices in London, Hong Kong,
Tokyo, Singapore, Sydney and Frankfurt. In managing the GT Global Mutual Funds,
LGT Asset Management employs a team approach, taking advantage of the resources
of these various investment offices around the world in seeking to achieve each
Fund's investment objective. Many of the investment managers who manage the GT
Global Mutual Funds' portfolios are natives of the countries in which they
invest, speak local languages and/or live or work in the markets they follow.
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>
Jeffrey W. Gorman Portfolio Manager since 1995 Money Market Analyst and Trader for LGT
San Francisco Asset Management from 1994 to 1995;
Investment Operations Specialist for LGT
Asset Management from February 1993 to
April 1994; Financial Services
Representative for LGT Asset Management
from June 1992 to February 1993; prior
thereto, a student at the University of
California at Berkeley.
</TABLE>
In placing orders for the Fund's portfolio transactions, LGT Asset Management
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. LGT Asset Management 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, LGT Asset Management may
consider a dealer's sale of shares of the GT Global Mutual Funds as a factor in
considering through whom portfolio transactions will be effected.
DISTRIBUTION OF FUND SHARES. GT Global is the distributor, or principal
underwriter, of the Fund's Advisor Class shares. Like LGT Asset Management, GT
Global is a subsidiary of Liechtenstein Global Trust with offices at 50
California Street, 27th Floor, San Francisco, California 94111.
LGT Asset Management 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, GT 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 GT 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 18
<PAGE>
GT 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. Shortly
after the end of the Fund's fiscal year on December 31 and fiscal half-year on
June 30 of each year, shareholders 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 dividends
paid by the Fund to its shareholders are reported after the end of each fiscal
year on Form 1099-DIV. Under certain circumstances, duplicate mailings of such
reports to the same household may be consolidated.
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. Effective May 1, 1991, the Fund changed its name from "GT Money Market
Fund" to "GT 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 GT 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 GT Global Mutual Fund, a sales load
will apply to exchanges from the Fund into other GT Global Mutual Funds. For the
fiscal year ended December 31, 1995, 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 GT Global Mutual Funds. No contingent deferred sales
charge ("CDSC") will be imposed on the exchange out of Class B shares of any GT
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 GT 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, GT 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, 1995,
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
Prospectus Page 19
<PAGE>
GT GLOBAL DOLLAR FUND
Board of Directors. Each share of the Fund represents an interest in the Fund
only, has a par value 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.
Prospectus Page 20
<PAGE>
GT GLOBAL DOLLAR FUND
In addition, in order to more completely represent the Fund's performance or
more accurately 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. 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 GT Global Investor Services, Inc. The
Transfer Agent is an affiliate of LGT Asset Management and GT Global, a
subsidiary of Liechtenstein Global Trust and maintains offices at California
Plaza, 2121 North California Boulevard, Suite 450, Walnut Creek, CA 94596.
CUSTODIAN. State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts 02110 is custodian of the Fund's assets.
COUNSEL. The law firm of Kirkpatrick & Lockhart LLP, 1800 Massachusetts Avenue,
N.W., Washington, D.C., 20036-1800, acts as counsel to the Fund. Kirkpatrick &
Lockhart LLP also acts as counsel to LGT Asset Management, GT Global and GT
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 21
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 22
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 23
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 24
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 25
<PAGE>
GT GLOBAL DOLLAR FUND
GT GLOBAL MUTUAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT GT GLOBAL OR YOUR FINANCIAL ADVISOR.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside
the U.S.
GT GLOBAL EMERGING MARKETS GROWTH FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
[LOGO]
NO DEALER, SALES REPRESENTATIVE 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 GT GLOBAL DOLLAR FUND, LGT
ASSET MANAGEMENT, INC., G.T. INVESTMENT PORTFOLIOS, INC., OR GT GLOBAL, 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.
DOLPV6040
<PAGE>
GT GLOBAL DOLLAR FUND
50 California Street, 27th Floor
San Francisco, California 94111-4624
(415) 392-6181
Toll Free: (800) 824-1580
Statement of Additional Information
April 29, 1996
- --------------------------------------------------------------------------------
GT 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 Class A and
Class B shares of the Fund, which is not a prospectus, supplements and should be
read in conjunction with the Fund's current Class A and Class B Prospectus dated
April 29, 1996, 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.
LGT Asset Management, Inc. ("LGT Asset Management") serves as the Fund's
investment manager and administrator. The distributor of the Fund's shares is GT
Global, Inc. ("GT Global"). The Fund's transfer agent is GT Global Investor
Services, Inc. ("GT 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................................................................................................. 11
Execution of Portfolio Transactions...................................................................................... 12
Additional Information................................................................................................... 13
Investment Results....................................................................................................... 14
Description of Debt Ratings.............................................................................................. 19
Financial Statements..................................................................................................... 20
</TABLE>
[LOGO]
Statement of Additional Information Page 1
<PAGE>
GT 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 LGT Asset Management 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 LGT
Asset Management.
Statement of Additional Information Page 2
<PAGE>
GT 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 total 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 LGT Asset Management 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 LGT Asset Management, pursuant to guidelines
approved by the Board. LGT Asset Management 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). LGT Asset Management 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>
GT 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>
GT GLOBAL DOLLAR FUND
DIRECTORS AND EXECUTIVE
OFFICERS
- --------------------------------------------------------------------------------
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*, 43 Director of Liechtenstein Global Trust (holding company of the various international LGT
Director, Chairman of the Board and companies) since 1990; President of the Asset Management Division, Liechtenstein Global
President Trust, since 1995; Director and President of LGT Asset Management Holdings, Inc. ("LGT
50 California Street Asset Management Holdings") since 1988; Director and President of LGT Asset Management
San Francisco, CA 94111 since 1989; Director of GT Global since 1987; President of GT Global from 1987 to 1995;
Director of GT Services since 1990; President of GT Services from 1990 to 1995; Director
of G.T. Global Insurance Agency, Inc. ("G.T. Insurance") since 1992; and President of G.T.
Insurance from 1992 to 1995. Mr. Minella also is a director or trustee of each of the
other investment companies registered under the 1940 Act that is managed or administered
by LGT Asset Management.
C. Derek Anderson, 54 Chief Executive Officer of Anderson Capital Management, Inc.; Chairman and Chief Executive
Director Officer of Plantagenet Holdings, Ltd. from 1991 to present; Director, Munsingwear, Inc.;
220 Sansome Street Director, American Heritage Group Inc. and various other companies. Mr. Anderson also is a
Suite 400 director or trustee of each of the other investment companies registered under the 1940
San Francisco, CA 94104 Act that is managed or administered by LGT Asset Management.
Frank S. Bayley, 56 A Partner with Baker & McKenzie (a law firm); Director and Chairman of C.D. Stimson
Director Company (a private investment company). Mr. Bayley also is a director or trustee of each
Two Embarcadero Center of the other investment companies registered under the 1940 Act that is managed or
San Francisco, CA 94111 administered by LGT Asset Management.
Arthur C. Patterson, 51 Managing Partner of Accel Partners (a venture capital firm). He also serves as a director
Director of various computing and software companies. Mr. Patterson also is a director or trustee
One Embarcadero Center of each of the other investment companies registered under the 1940 Act that is managed or
Suite 3820 administered by LGT Asset Management.
San Francisco, CA 94111
Ruth H. Quigley, 60 Private investor. From 1984 to 1986, Ms. Quigley was President of Quigley Friedlander &
Director Co., Inc. (a financial advisory services firm). Ms. 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 LGT Asset Management.
F. Christian Wignall, 39 Director of LGT Asset Management Holdings since 1989, Senior Vice President, Chief
Vice President and Chief Investment Investment Officer - Global Equities and a Director of LGT Asset Management since 1987,
Officer - and Chairman of the Investment Policy Committee of the affiliated international LGT
Global Equities companies since 1990.
50 California Street
San Francisco, CA 94111
</TABLE>
- ------------------
* Mr. Minella is an "interested person" of the Company as defined by the 1940
Act due to his affiliation with the LGT companies.
Statement of Additional Information Page 5
<PAGE>
GT GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
NAME, POSITION(S) WITH THE PRINCIPAL OCCUPATIONS AND BUSINESS
COMPANY AND ADDRESS EXPERIENCE FOR PAST 5 YEARS
- --------------------------------------- ------------------------------------------------------------------------------------------
<S> <C>
James R. Tufts, 37 President of GT Services since 1995; from 1994 to 1995 Senior Vice President - Finance and
Senior Vice President and Administration of GT Global, GT Services and G.T. Insurance. Senior Vice President -
Chief Financial Officer Finance and Administration of LGT Asset Management Holdings and LGT Asset Management since
50 California Street 1994. From 1990 to 1994, Mr. Tufts was Vice President - Finance of LGT Asset Management
San Francisco, CA 94111 Holdings, LGT Asset Management, GT Global and GT Services. He was Vice President - Finance
of GT Insurance from 1992 to 1994; and a Director of LGT Asset Management, GT Global and
GT Services since 1991.
Kenneth W. Chancey, 50 Vice President - Mutual Fund Accounting at LGT Asset Management since 1992. Mr. Chancey
Vice President and Principal was Vice President of Putnam Fiduciary Trust Company from 1989 to 1992.
Accounting Officer
50 California Street
San Francisco, CA 94111
Helge K. Lee, 50 Senior Vice President, General Counsel and Secretary of LGT Asset Management Holdings, LGT
Vice President and Secretary Asset Management, GT Global, GT Services and G.T. Insurance since May 1994. Mr. Lee was
50 California Street the Senior Vice President, General Counsel and Secretary of Strong/Corneliuson Management,
San Francisco, CA 94111 Inc. and Secretary of each of the Strong Funds 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.
Peter R. Guarino, 36 Secretary of LGT Asset Management Holdings, LGT Asset Management, GT Global, GT Services
Assistant Secretary and G.T. Insurance since February 1996. Mr. Guarino has been an Assistant General Counsel
50 California Street of LGT Asset Management, GT Global and GT Services since 1991, and Assistant General
San Francisco, CA 94111 Counsel of G.T. Insurance since 1992. From 1989 to 1991, Mr. Guarino was an attorney at
The Dreyfus Corporation.
David J. Thelander, 40 Vice President of LGT Asset Management Holdings, LGT Asset Management, GT Global, GT
Assistant Secretary Services and G.T. Insurance since February 1996. Assistant General Counsel of LGT Asset
50 California Street Management since January 1995. From 1993 to 1994, Mr. Thelander was an associate at
San Francisco, CA 94111 Kirkpatrick & Lockhart LLP (a law firm). Prior thereto, he was an attorney with the U.S.
Securities and Exchange Commission.
</TABLE>
The Board of Directors has established an Audit and Nominating Committee, which
presently consists of Ms. 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 LGT Asset
Management. Each Director and Officer serves in total as a Director and or
Trustee and Officer, respectively, of 10 registered investment companies with 40
series managed or administered by LGT Asset Management. The Company pays each
Director who is not a director, officer or employee of LGT Asset Management 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. For the fiscal year ended December 31, 1995, the Fund paid Mr.
Anderson, Mr. Bayley, Mr. Patterson and Ms. Quigley Directors' fees and
reimbursements of $3,993.29, $3,866.68, $3,692.27 and $3,839.89, respectively.
Mr. Anderson, Mr. Bayley, Mr. Patterson and Ms. Quigley, who are not directors,
officers or employees of LGT Asset Management or any affiliated company,
received total compensation of $99,676.78, $95,368.64, $92,139.90 and
$94,457.55, respectively, from the 40 GT Global 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. 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
1.51% of the outstanding shares of the Fund.
Statement of Additional Information Page 6
<PAGE>
GT GLOBAL DOLLAR FUND
MANAGEMENT
- --------------------------------------------------------------------------------
INVESTMENT MANAGEMENT AND ADMINISTRATION SERVICES
LGT Asset Management serves as the Fund's investment manager and administrator
under an Investment Management and Administration Contract between the Company
and LGT Asset Management ("Management Contract"). As investment manager and
administrator, LGT Asset Management makes all investment decisions for the Fund
and administers the Fund's affairs. Among other things, LGT Asset Management
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 LGT Asset
Management 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. Either the Company or LGT Asset
Management 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, LGT Asset Management 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. LGT Asset Management and GT Global have
voluntarily undertaken to limit the Fund's Class A and Class B share expenses
(excluding brokerage commissions, interest, taxes and extraordinary items) to
the maximum annual level of 1.00% and 1.75% of the average daily net assets of
the Fund's Class A and Class B shares, respectively.
For the fiscal years ended December 31, 1995, 1994 and 1993, the Fund paid
investment management and administration fees to LGT Asset Management in the
amounts of $1,665,299, $1,406,615 and $372,788, respectively; during the same
periods LGT Asset Management reimbursed and/or waived the Fund for a portion of
its operating expenses in the amounts of $829,866, $703,312 and $522,638,
respectively.
DISTRIBUTION SERVICES
The Fund's Class A shares are offered through the Fund's principal underwriter
and distributor, GT Global, on a "best efforts" basis pursuant to a Distribution
Contract between the Company and GT Global.
As described in the Prospectus, the Company has adopted separate Distribution
Plans with respect to each class of the Fund in accordance with the provisions
of Rule 12b-1 under the 1940 Act ("Class A Plan" and "Class B Plan")
(collectively, "Plans"). The rate of payment by the Fund to GT Global under the
Plans, as described in the Prospectus, may not be increased without the approval
of the majority of the outstanding voting securities of the respective class of
the Fund. For the year ended December 31, 1995, the Fund made payments to GT
Global under the Class A Plan and Class B Plan in the amounts of $0 and
$769,927, respectively.
In approving the Plans, the Directors determined that each Plan was in the best
interests of the shareholders of the Fund. Agreements related to the Plans must
also be approved by such vote of the Directors and Qualified Directors as
described above.
Each Plan requires that, at least quarterly, the Directors will review the
amounts expended thereunder and the purposes for which such expenditures were
made. Each Plan requires that as long as it is in effect the selection and
nomination of
Statement of Additional Information Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
Directors who are not "interested persons" of the Company will be committed to
the discretion of the Directors who are not "interested persons" of the Company,
as defined in the 1940 Act.
As discussed in the Prospectus, GT Global receives no compensation or
reimbursements relating to its distribution efforts with respect to Class A
shares other than as described above. GT Global receives any contingent deferred
sales charges payable with respect to redemption of Class B shares. For the
fiscal years ended December 31, 1995 and 1994, GT Global collected contingent
deferred sales charges in the amount of $1,333,734 and $602,389, respectively.
For the nine month period ended December 31, 1993, GT Global collected
contingent deferred sales charges in the amount of $4,735.
TRANSFER AGENCY SERVICES
GT 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.
As of December 31, 1995, the Fund paid LGT Asset Management fees of $34,482 for
accounting services.
EXPENSES OF THE FUND
The Fund pays all expenses not assumed by LGT Asset Management, GT Global and
other agents. These expenses include, in addition to the advisory, distribution,
transfer agency, pricing and accounting agency and brokerage fees discussed
above, legal and audit expenses, custodian 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. Certain
of these expenses, such as custodial fees and brokerage fees, generally are
higher for non-U.S. securities. The allocation of general Company 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.
- --------------------------------------------------------------------------------
DIVIDENDS AND TAXES
- --------------------------------------------------------------------------------
DAILY INCOME DIVIDENDS
Net investment income and any realized net short-term capital gain are
determined and declared as a dividend each day. 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 Fund shares of the
distributing class, 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 each dividend.
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 in
accordance with generally accepted accounting principles), (b) minus all accrued
liabilities, including interest, taxes and other expense items, and reserves for
contingent or undetermined liabilities, all determined in accordance with those
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, 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
Statement of Additional Information Page 8
<PAGE>
GT GLOBAL DOLLAR FUND
income each taxable year from dividends, interest, payments with respect to
securities loans and gains from the sale or other disposition of securities, or
other income derived with respect to its business of investing in 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 its 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 that does
not exceed 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).
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
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 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
Statement of Additional Information Page 9
<PAGE>
GT GLOBAL DOLLAR FUND
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.
AUTOMATIC INVESTMENT PLAN
To establish participation in the GT Global Automatic Investment Plan ("AIP"),
investors or their broker/dealers should send the following documents to the
Transfer Agent: (1) an AIP Application; (2) a Bank Authorization Form; and (3) a
voided personal check from the pertinent bank account. The necessary forms are
included at the back of the Fund's Prospectus. Providing that an investor's bank
accepts the Bank Authorization Form, investment amounts will be drawn on the
designated dates (monthly on the 25th day or beginning quarterly on the 25th day
of the month the investor first selects) in order to purchase full and
fractional shares of the Fund at the public offering price determined on that
day. In the event that the 25th day falls on a Saturday, Sunday or holiday,
shares will be purchased on the next business day. If an investor's check is
returned because of insufficient funds, a stop payment order, or the account is
closed, the AIP may be discontinued, and any share purchase made upon deposit of
such check may be cancelled. Furthermore, the shareholder will be liable for any
loss incurred by the Fund by reason of such cancellation. Investors should allow
one month for the establishment of an AIP. An AIP may be terminated by the
Transfer Agent or the Fund upon 30 days' written notice or by the participant,
at any time, without penalty, upon written notice to the Fund or the Transfer
Agent.
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.
INDIVIDUAL RETIREMENT ACCOUNTS (IRAS)
Shares of the Fund also may be purchased as the underlying investment for an IRA
meeting the requirements of Section 408(a) of the Code. GT Global IRA
applications are available from brokers or GT Global.
EXCHANGES BETWEEN FUNDS
A shareholder may exchange shares of the Fund for shares of the corresponding
class of other GT Global Mutual Funds as described in the Prospectus. For Class
A shares, a sales load will apply to exchanges from the Fund into other GT
Global Mutual Funds, except that no sales load will be charged if the exchanged
shares were acquired as a result of a previous exchange from another GT Global
Mutual Fund. No sales load will be imposed on the exchange of Class B shares
from the Fund into other GT Global Mutual Funds. The exchange privilege is not
an option or right to purchase shares but is permitted under the current
policies of the respective GT 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.
Statement of Additional Information Page 10
<PAGE>
GT GLOBAL DOLLAR FUND
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.
SYSTEMATIC WITHDRAWAL PLAN
Shareholders owning shares of the Fund with a value of $10,000 or more may
establish a Systematic Withdrawal Plan ("SWP"). Under a SWP, a shareholder will
receive monthly or quarterly payments, in amounts of not less than $100 per
payment, through the automatic redemption of the necessary number of shares on
the designated dates (monthly on the 25th day or beginning quarterly on the 25th
day of the month the investor first selects). In the event that the 25th day
falls on a Saturday, Sunday or holiday, the redemption will take place on the
prior business day. Checks will be made payable to the designated recipient and
mailed within seven days. If the recipient is other than the registered
shareholder, the signature of each shareholder must be guaranteed on the SWP
application (see "How to Redeem Shares" in the Prospectus). A corporation (or
partnership) must also submit a "Corporation Resolution" or "Certificate of
Partnership" indicating the names, titles, and signatures of the individuals
authorized to act on its behalf, and the SWP application must be signed by a
duly authorized officer(s) and the corporate seal affixed.
Shareholders should be aware that systematic withdrawals may deplete or use up
entirely the initial investment and result in realized long-term or short-term
capital gains or losses. The SWP may be terminated at any time by the Transfer
Agent or the Fund upon 30 days' written notice to shareholders or by a
shareholder upon written notice to the Transfer Agent. Applications and further
details regarding establishment of a SWP are provided at the back of the Fund's
Prospectus.
With respect to a SWP established in Class B shares, the maximum annual SWP
withdrawal is 12% of the initial account value. Withdrawals in excess of 12% of
the initial account value annually may result in assessment of a contingent
deferred sales charge.
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 11
<PAGE>
GT 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, LGT Asset
Management 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, LGT Asset
Management 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 LGT Asset Management 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
LGT Asset Management 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 LGT Asset
Management 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, LGT Asset Management may consider a
broker/dealer's sale of the shares of the Fund and the other funds for which LGT
Asset Management 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 12
<PAGE>
GT GLOBAL DOLLAR FUND
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
LIECHTENSTEIN GLOBAL TRUST
Liechtenstein Global Trust, formerly BIL GT Group, is composed of LGT Asset
Management and its worldwide affiliates. Other worldwide affiliates of
Liechtenstein Global Trust include LGT Bank in Liechtenstein, formerly Bank in
Liechtenstein, an international financial services institution founded in 1920.
LGT Bank in Liechtenstein has principal offices in Vaduz, Liechtenstein. Its
subsidiaries currently include LGT Bank in Liechtenstein (Deutschland) GmbH,
formerly Bank in Liechtenstein (Frankfurt) GmbH, and LGT Asset Management AG,
formerly Bilfinanz und Verwaltung AG, located in Zurich, Switzerland.
Worldwide asset management affiliates also currently include LGT Asset
Management PLC, formerly G.T. Management PLC in London, England; LGT Asset
Management Ltd., formerly G.T. Management (Asia) Ltd. in Hong Kong; LGT
Investment Trust Management Ltd., formerly G.T. Management (Japan) Ltd. in
Tokyo; LGT Asset Management Pte. Ltd., formerly G.T. Management (Singapore) PTE
Ltd. located in Singapore; LGT Asset Management Ltd., formerly G.T. Management
(Australia) Ltd., located in Sydney; and LGT Asset Management GmbH, formerly BIL
Asset Management GmbH, located in Frankfurt, Germany.
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
LGT Asset Management has granted the Company the right to use the "GT" and "GT
Global" names in the name of the Company and the Fund and has reserved the
rights to withdraw its consent to the use of such names by the Company or the
Fund at any time, or to grant the use of such names to any other company, and
the Company has granted LGT Asset Management, under certain conditions, the use
of any other names it might assume in the future, with respect to any other
investment company sponsored by LGT Asset Management.
Statement of Additional Information Page 13
<PAGE>
GT 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, 1995, the Fund's Class A share yield
was 4.81% and effective yield was 4.93%. 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, 1995:......................... $1.000922914
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:..... $ 1.000922914
Less beginning account $ 1.000000000
value:..................
Net change in account $ .000922914
value:..................
Seven-day yield = $.000922914 x (3)(6)(5)/(7) = 4.81%
Effective yield** = [1 + .000922914] (3)(6)(5)/(7) -1 =
4.93%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
For the seven-day period ended December 31, 1995, the Fund's Class B share yield
was 4.07% and effective yield was 4.15%. 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, 1995:......................... $1.000779990
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:..... $ 1.000779990
Less beginning account $ 1.000000000
value:..................
Net change in account $ .000779990
value:..................
Seven-day yield = $.000779990 x (3)(6)(5)/(7) = 4.07%
Effective yield** = [1 + .000779990] (3)(6)(5)/(7) -1 =
4.15%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
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 14
<PAGE>
GT 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)(n) = EV. The following assumptions will be reflected in computations made
in accordance with this formula: (1) for Class B shares, deduction of the
applicable contingent deferred sales charge imposed on a redemption of Class B
shares held for the period; (2) reinvestment of dividends and other
distributions at net asset value on the reinvestment date determined by the
Board; and (3) 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, 1995, were as follows:
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended December 31, 1995..................................................................... 5.08%
Five years ended December 31, 1995............................................................... 3.70%
Ten years ended December 31, 1995................................................................ 5.12%
September 16, 1985 through December 31, 1995..................................................... 5.12%
</TABLE>
The Fund's Standardized Return for its Class A shares, stated as aggregate total
return, at December 31, 1995, was as follows:
<TABLE>
<CAPTION>
STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
September 16, 1985 through December 31, 1995..................................................... 67.17%
</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, 1995..................................................................... (0.71)%
April 1, 1993 through December 31, 1995.......................................................... 1.80%
</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, 1995, was
as follows:
<TABLE>
<CAPTION>
STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- -------------------------------------------------------------------------------------------------- -----------------------
<S> <C>
April 1, 1993 through December 31, 1995........................................................... 5.04%
</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, 1995, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended December 31, 1995................................................................. 5.08%
Five years ended December 31, 1995........................................................... 3.70%
Ten years ended December 31, 1995............................................................ 5.12%
September 16, 1985 through December 31, 1995................................................. 5.12%
</TABLE>
The Fund's Non-Standardized Return for its Class A shares, stated as aggregate
total return, at December 31, 1995, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
September 16, 1985 through December 31, 1995................................................. 67.17%
</TABLE>
Statement of Additional Information Page 15
<PAGE>
GT 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, 1995, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended December 31, 1995................................................................. 4.29%
April 1, 1993 through December 31, 1995...................................................... 2.85%
</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,
1995, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 through December 31, 1995...................................................... 8.04%
</TABLE>
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 GT 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.
(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.
Statement of Additional Information Page 16
<PAGE>
GT GLOBAL DOLLAR FUND
(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,
S.G. Warburg, Jardine Flemming, 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.
GT Global may provide information designed to help individuals understand their
investment goals and explore various financial strategies. For example, GT
Global may describe general principles of investing, such as asset allocation,
diversification and risk tolerance.
In advertising materials, GT 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, GT 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
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
Statement of Additional Information Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
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 GT 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 roll over (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 rollover 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, GT Global may make reference to or discuss
its products, services and accomplishments. Among these accomplishments are that
in 1983 GT 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 LGT Asset Management Ltd. (Japan) as one of the first foreign
discretionary investment managers for Japanese investors. Such accomplishments,
however, should not be viewed as an endorsement of GT Global or LGT Asset
Management by the government of Hong Kong, Japan's Ministry of Finance or any
other government or government agency. Nor do any such accomplishments of GT
Global or LGT Asset Management provide any assurance that the GT Global Mutual
Funds' investment objectives will be achieved.
In addition, GT 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.
THE LGT ADVANTAGE
LGT Asset Management has developed a unique team approach to its global money
management which we call the LGT Advantage. LGT Asset Management's money
management style combines the best of the "top-down" and "bottom-up" investment
manager strategies. The top-down approach is implemented by LGT Asset
Management's Investment Policy Committee which sets broad guidelines for asset
allocation and currency management based on LGT Asset Management'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.
Statement of Additional Information Page 18
<PAGE>
GT GLOBAL DOLLAR FUND
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.
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.
Statement of Additional Information Page 19
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The audited financial statements of the Fund at December 31, 1995 and for the
year then-ended appear on the following pages.
Statement of Additional Information Page 20
<PAGE>
GT GLOBAL DOLLAR FUND
REPORT OF
INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND
BOARD OF DIRECTORS OF
GT INVESTMENT PORTFOLIOS, INC.:
We have audited the accompanying statement of assets and liabilities of GT
Global Dollar Fund, a series of shares of common stock of GT Investment
Portfolios, Inc., including the schedule of portfolio investments, as of
December 31, 1995, 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 four 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 the year 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, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of GT
Global Dollar Fund as of December 31, 1995, 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 four years in
the period then ended, in conformity with generally accepted accounting
principles.
Coopers & Lybrand, L.L.P.
Boston, Massachusetts
February 12, 1996
Statement of Additional Information Page 21
<PAGE>
GT GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Principal Market
Short-Term Investments Yield Date Amount Value
- --------------------------------------------------------------------------------- --------- --------- ----------- ------------
<S> <C> <C> <C> <C>
Commercial Paper - Discounted (50.9%)
AIG Funding Inc. .............................................................. 5.77% 08-Jan-96 $14,400,000 $ 14,383,900
E.I. DuPont de Nemours & Co. .................................................. 5.78% 12-Jan-96 14,400,000 14,374,656
Minnesota Mining & Manufacturing Co. .......................................... 5.70% 19-Jan-96 14,250,000 14,209,886
PHH Corp ...................................................................... 5.77% 26-Jan-96 14,250,000 14,193,792
Ford Motor Credit Co. ......................................................... 5.78% 05-Jan-96 13,250,000 13,241,564
Toronto Dominion Holdings USA, Inc. ........................................... 5.72% 24-Jan-96 12,400,000 12,355,556
Procter & Gamble Co. .......................................................... 5.66% 13-Feb-96 12,000,000 11,919,733
AT&T Corp. .................................................................... 5.79% 05-Jan-96 9,500,000 9,493,899
Philip Morris Cos., Inc. ...................................................... 5.91% 05-Jan-96 9,500,000 9,493,772
Bellsouth Capital Funding Corp. .............................................. 5.66% 09-Jan-96 9,500,000 9,488,072
General Electric Capital Corp. ................................................ 5.72% 12-Feb-96 9,000,000 8,940,780
Hanson Finance PLC ............................................................ 5.80% 17-Jan-96 8,900,000 8,877,453
Ameritech Corp. ............................................................... 5.62% 09-Feb-96 3,390,000 3,369,510
Merrill Lynch & Co., Inc. ..................................................... 5.86% 04-Jan-96 1,263,000 1,262,384
------------
Total Commercial Paper - Discounted
(amortized cost $145,604,957) ................................................. 145,604,957
------------
Government & Government Agency Obligations (15.8%)
Federal National Mortgage Association ......................................... 5.60% 20-Sep-96 14,400,000 14,385,942
Sallie Mae ................................................................... 5.20% 19-Jul-96 12,400,000 12,390,700
Federal Home Loan Mortgage Corp. .............................................. 5.42% 12-Mar-96 12,000,000 11,871,727
Federal Home Loan Bank ........................................................ 5.76% 02-Oct-96 6,000,000 5,995,774
------------
Total Government & Government Agency Obligations (amortized cost $44,644,143) ... 44,644,143
------------
<CAPTION>
Principal Market
Repurchase Agreements Amount Value
- --------------------------------------------------------------------------------- ----------- ------------
<S> <C> <C> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust Company, due January 2,
1996, for an effective yield of 5.55%, collateralized by $67,910,000 U.S.
Treasury Note, 6.00% due 8/31/97 (market value of collateral is $70,092,688,
including accrued interest). (cost $68,726,771) .............................. 68,726,771
Dated December 29, 1995, with Merrill Lynch, due January 2, 1996, for an
effective yield of 5.60%, collateralized by $50,185,000 U.S. Treasury Note,
5.625% due 10/31/97 (market value of collateral is $51,042,298, including
accrued interest). (cost $50,023,333) ....................................... 50,023,333
------------
TOTAL REPURCHASE AGREEMENTS (cost $118,750,104) ................................. 118,750,104
------------
TOTAL SHORT-TERM INVESTMENTS (cost $308,999,204)* ............................... 308,999,204
Other Assets and Liabilities ................................................... (23,991,713)
------------
NET ASSETS ...................................................................... $285,007,491
------------
------------
<CAPTION>
% of Net
Short-Term Investments Assets {d}
- --------------------------------------------------------------------------------- -------------
<S> <C>
Commercial Paper - Discounted (50.9%)
AIG Funding Inc. .............................................................. 5.1
E.I. DuPont de Nemours & Co. .................................................. 5.0
Minnesota Mining & Manufacturing Co. .......................................... 5.0
PHH Corp ...................................................................... 5.0
Ford Motor Credit Co. ......................................................... 4.6
Toronto Dominion Holdings USA, Inc. ........................................... 4.3
Procter & Gamble Co. .......................................................... 4.2
AT&T Corp. .................................................................... 3.3
Philip Morris Cos., Inc. ...................................................... 3.3
Bellsouth Capital Funding Corp. .............................................. 3.3
General Electric Capital Corp. ................................................ 3.1
Hanson Finance PLC ............................................................ 3.1
Ameritech Corp. ............................................................... 1.2
Merrill Lynch & Co., Inc. ..................................................... 0.4
-----
Total Commercial Paper - Discounted
(amortized cost $145,604,957) ................................................. 50.9
-----
Government & Government Agency Obligations (15.8%)
Federal National Mortgage Association ......................................... 5.1
Sallie Mae ................................................................... 4.4
Federal Home Loan Mortgage Corp. .............................................. 4.2
Federal Home Loan Bank ........................................................ 2.1
-----
Total Government & Government Agency Obligations (amortized cost $44,644,143) ... 15.8
-----
% of Net
Repurchase Agreements Assets {d}
- --------------------------------------------------------------------------------- -------------
<S> <C>
Dated December 29, 1995, with State Street Bank & Trust Company, due January 2,
1996, for an effective yield of 5.55%, collateralized by $67,910,000 U.S.
Treasury Note, 6.00% due 8/31/97 (market value of collateral is $70,092,688,
including accrued interest). (cost $68,726,771) .............................. 24.1
Dated December 29, 1995, with Merrill Lynch, due January 2, 1996, for an
effective yield of 5.60%, collateralized by $50,185,000 U.S. Treasury Note,
5.625% due 10/31/97 (market value of collateral is $51,042,298, including
accrued interest). (cost $50,023,333) ....................................... 17.6
-----
TOTAL REPURCHASE AGREEMENTS (cost $118,750,104) ................................. 41.7
-----
TOTAL SHORT-TERM INVESTMENTS (cost $308,999,204)* ............................... 108.4
Other Assets and Liabilities ................................................... (8.4)
-----
NET ASSETS ...................................................................... 100.0
-----
-----
</TABLE>
- ----------------
{d} Percentages indicated are based on net assets of $285,007,491.
* For Federal income tax purposes, cost is $308,999,204.
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 22
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (amortized
cost $190,249,100) (Note 1)...................... $190,249,100
Repurchase agreements, at value and cost (Note
1)............................................... 118,750,104
U.S. currency..................................... 120,007
Receivable for Fund shares sold................... 23,487,618
Interest receivable............................... 452,998
------------
Total assets.................................... 333,059,827
------------
Liabilities:
Payable for Fund shares repurchased............... 47,537,243
Distribution payable.............................. 137,794
Payable for investment management and
administration fees (Note 2)..................... 135,110
Payable for printing and postage expenses......... 74,962
Payable for transfer agent fees (Note 2).......... 67,712
Payable for service and distribution expenses
(Note 2)......................................... 67,165
Payable for professional fees..................... 19,088
Payable for fund accounting fees (Note 2)......... 6,672
Payable for registration and filing fees.......... 3,497
Payable for custodian fees........................ 1,838
Payable for Directors' fees and expenses (Note
2)............................................... 1,255
------------
Total liabilities............................... 48,052,336
------------
Net assets.......................................... $285,007,491
------------
------------
Class A:
Net asset value and redemption price per share
($183,766,837 DIVIDED BY 183,794,106 shares
outstanding)....................................... $ 1.00
------------
------------
Class B:+
Net asset value and offering price per share
($99,150,908 DIVIDED BY 99,151,671 shares
outstanding)....................................... $ 1.00
------------
------------
Advisor Class:
Net asset value, offering price per share, and
redemption price per share
($2,089,746 DIVIDED BY 2,080,151 shares
outstanding)....................................... $ 1.00
------------
------------
Net assets: At December 31, 1995, net assets
consisted of paid-in capital of $285,007,491.
<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>
GT GLOBAL DOLLAR FUND
STATEMENT OF OPERATIONS
Year ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income........................................... $19,720,237
-----------
Expenses:
Investment management and administration fees (Note 2).... 1,665,299
Service and distribution expenses: (Note 2)
Class A.................................. $ 573,163
Class B.................................. 1,026,630 1,599,793
----------
Transfer agent fees (Note 2).............................. 935,216
Registration and filing fees.............................. 376,015
Printing and postage expenses............................. 145,535
Fund accounting fees (Note 2)............................. 86,710
Custodian fees (Note 4)................................... 43,228
Legal fees................................................ 31,280
Audit fees................................................ 24,277
Directors' fees and expenses (Note 2)..................... 16,960
Insurance expenses........................................ 5,555
-----------
Total expenses before reimbursement....................... 4,929,868
-----------
Expenses waived by LGT Asset Management, Inc. (Note
2).......................................................... (829,866)
Expense reductions (Note 4)............................. (88,704)
-----------
Total net expenses........................................ 4,011,298
-----------
Net investment income....................................... 15,708,939
-----------
Net increase in net assets resulting from operations........ $15,708,939
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 24
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income...................... $ 15,708,939 $ 9,172,741
Net realized gain on investments and
foreign currency transactions............. -- 2,228
----------------- -----------------
Net increase in net assets resulting from
operations.............................. 15,708,939 9,174,969
----------------- -----------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income................. (11,346,132) (7,423,289)
Class B:
Distributions to shareholders: (Note 1)
From net investment income................. (4,308,505) (1,749,452)
Advisor Class: (Note 1)
Distributions to shareholders:
From net investment income................. (54,302) --
----------------- -----------------
Total distributions.................... (15,708,939) (9,172,741)
----------------- -----------------
Capital share transactions: (Note 3)
Increase from capital shares sold and
reinvested................................ 9,659,790,290 5,479,251,663
Decrease from capital shares repurchased... (9,805,577,211) (5,139,759,248)
----------------- -----------------
Net increase (decrease) from capital
share transactions...................... (145,786,921) 339,492,415
----------------- -----------------
Total increase (decrease) in net
assets................................ (145,786,921) 339,494,643
Net assets:
Beginning of year.......................... 430,794,412 91,299,769
----------------- -----------------
End of year................................ $ 285,007,491 $ 430,794,412
----------------- -----------------
----------------- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 25
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
---------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net investment income................... 0.050 0.032 0.022 0.028 0.051
Distributions from net investment
income................................. (0.050) (0.032) (0.022) (0.028) (0.051)
----------- ----------- ----------- ----------- -----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Total investment return (a)......... 5.08% 3.30% 2.2% 2.8% 5.1%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 183,761 $ 320,858 $ 87,822 $ 81,674 $ 70,295
Ratio of net investment income to
average net assets:
With expense waivers and
reductions (b) (Notes 2 & 4)......... 4.94% 3.40% 2.17% 2.78% 5.10%
Without expense waivers and
reductions (b)....................... 4.66% 3.15% 1.46% 2.47% 4.90%
Ratio of expenses to average net assets:
With expense waivers and
reductions (b) (Notes 2 & 4)......... 0.97% 0.92% 1.00% 1.25% 1.25%
Without expense waivers and
reductions (b)....................... 1.25% 1.17% 1.72% 1.56% 1.45%
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
(a) Not annualized for periods of less than one year.
(b) Annualized for periods of less than one year.
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 26
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS (CONT'D)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR
CLASS B++ CLASS+++
----------------------------------------- --------------
APRIL 1, 1993 JUNE 1, 1995
YEAR ENDED DECEMBER 31, TO TO
------------------------- DECEMBER 31, DECEMBER 31,
1995 1994 1993 1995
---------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Net investment income................... 0.040 0.025 0.010 0.030
Distributions from net investment
income................................. (0.040) (0.025) (0.010) (0.030)
---------- ------------- ------- -------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ------------- ------- -------
---------- ------------- ------- -------
Total investment return (a)......... 4.29% 2.53 % 1.4 % 2.92 %
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 99,151 $ 109,936 $ 3,478 $ 2,096
Ratio of net investment income to
average net assets:
With expense waivers and
reductions (b) (Notes 2 & 4)......... 4.19% 2.65 % 1.42 % 4.94 %
Without expense waivers and
reductions (b)....................... 3.91% 2.40 % 0.86 % 4.91 %
Ratio of expenses to average net assets:
With expense waivers and
reductions (b) (Notes 2 & 4)......... 1.72% 1.67 % 1.75 % 0.97 %
Without expense waivers and
reductions (b)....................... 2.00% 1.92 % 2.31 % 1.00 %
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
(a) Not annualized for periods of less than one year.
(b) Annualized for periods of less than one year.
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 27
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES TO
FINANCIAL STATEMENTS
December 31, 1995
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Dollar Fund ("Fund") is a diversified series of GT 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 Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Each class has exclusive voting
rights with respect to its distribution plan. The Fund commenced sale of Advisor
Class shares on June 1, 1995. Investment income, realized and unrealized capital
gains and losses, and the common expenses of the Fund are allocated on a pro
rata basis to each class based on the relative net assets of each class to the
total net assets of the Fund. Each class of shares differs in its respective
distribution expenses, and may differ in its transfer agent, registration, and
certain other class-specific fees and expenses.
The following is a summary of significant accounting policies 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.
C. REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, U.S. government securities or other
high quality debt securities of which the value, including accrued interest, is
at least equal to the amount to be repaid to the Fund under each agreement at
its maturity. LGT Asset Management, Inc. ("LGT", formerly known as G.T. Capital
Management, Inc.) is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
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
LGT serves as the investment manager and administrator of the Fund. The Fund
pays LGT 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.
GT Global, Inc. ("GT Global", formerly known as G.T. Capital Management, Inc.),
an affiliate of LGT, 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 GT 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, 1995, GT Global collected CDSCs in the amount of
$1,333,734. In addition, GT 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 GT
Statement of Additional Information Page 28
<PAGE>
GT GLOBAL DOLLAR FUND
Global for a portion of its shareholder servicing and distribution expenses.
Under the Class A Plan, the Fund may pay GT Global a service fee at the
annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.25% 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 GT Global's expenditures incurred in providing services as distributor.
GT Global does not currently intend to seek reimbursement of any amounts under
the Class A Plan. All expenses for which GT Global is reimbursed under the Class
A Plan will have been incurred within one year of such reimbursement.
Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.75% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in providing services as
distributor. GT 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.
LGT and GT 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%, 1.75%, and 1.00% of the average daily net assets of
the Fund's Class A, Class B, and Advisor Class shares, respectively. If
necessary, this limitation will be effected by waivers by LGT of its investment
management and administration fees, waivers by GT Global of payments under the
Class A Plan and/or Class B Plan and/or reimbursements by LGT or GT Global of
portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of LGT and GT
Global, is the transfer agent for the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT services receives
an annual maintenance fee of $17.50 per account, a new account fee of $4.00 per
account, a per transaction fee of $1.75 for all transactions other than
exchanges and a per exchange fee of $2.25. 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.
The Company pays each of its Directors who is not an employee, officer or
director of LGT, GT Global or GT Services $1,000 per year plus $300 for each
meeting of the board or any committee thereof attended by the Director.
Effective July 1, 1995, LGT has assumed the role of pricing and accounting agent
for the Fund. The monthly fee for these services to LGT is a percentage, not to
exceed 0.03% annually, of the Fund's average daily net assets. The annual fee
rate is derived by applying 0.03% to the first $5 billion of assets of all
registered mutual funds advised by LGT ("GT Funds") and 0.02% to the assets in
excess of $5 billion and dividing the result by the aggregated assets of the GT
Funds. For the period ended December 31, 1995, the Fund paid fund accounting
fees of $34,482 to LGT.
Statement of Additional Information Page 29
<PAGE>
GT GLOBAL DOLLAR FUND
3. CAPITAL SHARES
At December 31, 1995, there were 2,000,000,000 shares of the Company's common
stock authorized, at $0.001 per share. Of this number, 1,500,000,000 shares have
been classified as shares of the Fund; 500 million shares have been classified
as Class A shares, 500 million have been classified as Class B shares, and 500
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.
Transactions in capital shares of the Fund were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------ ------------------
SHARES & AMOUNT SHARES & AMOUNT
------------------ ------------------
<S> <C> <C>
CLASS A:
Shares sold................................................................................ 8,377,131,000 4,869,818,720
Shares issued in connection with reinvestment of distributions............................. 9,256,942 6,725,406
------------------ ------------------
8,386,387,942 4,876,544,126
Shares repurchased......................................................................... (8,523,474,325) (4,643,506,545)
------------------ ------------------
Net increase (decrease).................................................................... (137,086,383) 233,037,581
------------------ ------------------
------------------ ------------------
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------ ------------------
SHARES & AMOUNT SHARES & AMOUNT
------------------ ------------------
<S> <C> <C>
CLASS B:
Shares sold................................................................................ 1,264,724,918 601,281,318
Shares issued in connection with reinvestment of distributions............................. 3,247,874 1,426,219
------------------ ------------------
1,267,972,792 602,707,537
Shares repurchased......................................................................... (1,278,753,481) (496,252,703)
------------------ ------------------
Net increase (decrease).................................................................... (10,780,689) 106,454,834
------------------ ------------------
------------------ ------------------
</TABLE>
<TABLE>
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT
OF SALE OF SHARES)
TO DECEMBER 31, 1995
---------------------
SHARES & AMOUNT
---------------------
<S> <C> <C>
ADVISOR CLASS:
Shares sold............................................................................. 5,375,327
Shares issued in connection with reinvestment of distributions.......................... 54,229
---------------------
5,429,556
Shares repurchased...................................................................... (3,349,405)
---------------------
Net increase............................................................................ 2,080,151
---------------------
---------------------
</TABLE>
4. EXPENSE REDUCTIONS
For the year ended December 31, 1995, the Fund's custody fees were offset by
$88,704 of credits on cash held at the custodian.
Statement of Additional Information Page 30
<PAGE>
GT GLOBAL DOLLAR FUND
GT GLOBAL MUTUAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT YOUR FINANCIAL ADVISOR OR CALL GT GLOBAL
DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity for U.S. investors by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND
SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in the growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Invests in global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in a portfolio of emerging market debt securities
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and conservation of capital
[LOGO]
NO DEALER, SALES REPRESENTATIVE 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 GT
GLOBAL DOLLAR FUND, G.T. INVESTMENT PORTFOLIOS, INC., LGT ASSET MANAGEMENT,
INC. OR GT GLOBAL, 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.
DOLA604
<PAGE>
GT 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
April 29, 1996
- --------------------------------------------------------------------------------
GT 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 April 29,
1996, 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.
LGT Asset Management, Inc. ("LGT Asset Management") serves as the Fund's
investment manager and administrator. The distributor of the Fund's shares is GT
Global, Inc. ("GT Global"). The Fund's transfer agent is GT Global Investor
Services, Inc. ("GT Services" or "Transfer Agent").
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TABLE OF CONTENTS
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<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.............................................................................................. 19
Financial Statements..................................................................................................... 20
</TABLE>
[LOGO]
Statement of Additional Information Page 1
<PAGE>
GT GLOBAL DOLLAR FUND
INVESTMENT OBJECTIVE
AND POLICIES
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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 LGT Asset Management 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 accrue
d 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 LGT
Asset Management.
Statement of Additional Information Page 2
<PAGE>
GT 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 total 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 LGT Asset Management 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 LGT Asset Management, pursuant to guidelines
approved by the Board. LGT Asset Management 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). LGT Asset Management 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>
GT 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>
GT GLOBAL DOLLAR FUND
DIRECTORS AND EXECUTIVE
OFFICERS
- --------------------------------------------------------------------------------
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,* 43 Director of Liechtenstein Global Trust (holding company of the various international LGT
Director, Chairman of the Board and companies) since 1990; President of the Asset Management Division, Liechtenstein Global
President Trust, since 1995; Director and President of LGT Asset Management Holdings, Inc. ("LGT
50 California Street Asset Management Holdings") since 1988; Director and President of LGT Asset Management
San Francisco, CA 94111 since 1989; Director of GT Global since 1987; President of GT Global from 1987 to 1995;
Director of GT Services since 1990; President of GT Services from 1990 to 1995; Director
of G.T. Global Insurance Agency, Inc. ("G.T. Insurance") since 1992; and President of G.T.
Insurance from 1992 to 1995. Mr. Minella also is a director or trustee of each of the
other investment companies registered under the 1940 Act that is managed or administered
by LGT Asset Management.
C. Derek Anderson, 54 Chief Executive Officer of Anderson Capital Management, Inc.; Chairman and Chief Executive
Director Officer of Plantagenet Holdings, Ltd. from 1991 to present; Director, Munsingwear, Inc.;
220 Sansome Street Director, American Heritage Group Inc. and various other companies. Mr. Anderson also is a
Suite 400 director or trustee of each of the other investment companies registered under the 1940
San Francisco, CA 94104 Act that is managed or administered by LGT Asset Management.
Frank S. Bayley, 56 A Partner with Baker & McKenzie (a law firm); Director and Chairman of C.D. Stimson
Director Company (a private investment company). Mr. Bayley also is a director or trustee of each
Two Embarcadero Center of the other investment companies registered under the 1940 Act that is managed or
San Francisco, CA 94111 administered by LGT Asset Management.
Arthur C. Patterson, 51 Managing Partner of Accel Partners (a venture capital firm). He also serves as a director
Director of various computing and software companies. Mr. Patterson also is a director or trustee
One Embarcadero Center of each of the other investment companies registered under the 1940 Act that is managed or
Suite 3820 administered by LGT Asset Management.
San Francisco, CA 94111
Ruth H. Quigley, 60 Private investor. From 1984 to 1986, Ms. Quigley was President of Quigley Friedlander &
Director Co., Inc. (a financial advisory services firm). Ms. 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 LGT Asset Management.
F. Christian Wignall, 39 Director of LGT Asset Management Holdings since 1989, Senior Vice President, Chief
Vice President and Chief Investment Investment Officer - Global Equities and a Director of LGT Asset Management since 1987,
Officer - and Chairman of the Investment Policy Committee of the affiliated international LGT
Global Equities companies since 1990.
50 California Street
San Francisco, CA 94111
</TABLE>
- ------------------
* Mr. Minella is an "interested person" of the Company as defined by the 1940
Act due to his affiliation with the LGT companies.
Statement of Additional Information Page 5
<PAGE>
GT GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
NAME, POSITION(S) WITH THE PRINCIPAL OCCUPATIONS AND BUSINESS
COMPANY AND ADDRESS EXPERIENCE FOR PAST 5 YEARS
- --------------------------------------- ------------------------------------------------------------------------------------------
<S> <C>
James R. Tufts, 37 President of GT Services since 1995; from 1994 to 1995 Senior Vice President - Finance and
Senior Vice President and Administration of GT Global, GT Services and G.T. Insurance. Senior Vice President -
Chief Financial Officer Finance and Administration of LGT Asset Management Holdings and LGT Asset Management since
50 California Street 1994. From 1990 to 1994, Mr. Tufts was Vice President - Finance of LGT Asset Management
San Francisco, CA 94111 Holdings, LGT Asset Management, GT Global and GT Services. He was Vice President - Finance
of GT Insurance from 1992 to 1994; and a Director of LGT Asset Management, GT Global and
GT Services since 1991.
Kenneth W. Chancey, 50 Vice President - Mutual Fund Accounting at LGT Asset Management since 1992. Mr. Chancey
Vice President and Principal was Vice President of Putnam Fiduciary Trust Company from 1989 to 1992.
Accounting Officer
50 California Street
San Francisco, CA 94111
Helge K. Lee, 50 Senior Vice President, General Counsel and Secretary of LGT Asset Management Holdings, LGT
Vice President and Secretary Asset Management, GT Global, GT Services and G.T. Insurance since May 1994. Mr. Lee was
50 California Street the Senior Vice President, General Counsel and Secretary of Strong/Corneliuson Management,
San Francisco, CA 94111 Inc. and Secretary of each of the Strong Funds 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.
Peter R. Guarino, 36 Secretary of LGT Asset Management Holdings, LGT Asset Management, GT Global, GT Services
Assistant Secretary and G.T. Insurance since February 1996. Mr. Guarino has been an Assistant General Counsel
50 California Street of LGT Asset Management, GT Global and GT Services since 1991, and Assistant General
San Francisco, CA 94111 Counsel of G.T. Insurance since 1992. From 1989 to 1991, Mr. Guarino was an attorney at
The Dreyfus Corporation.
David J. Thelander, 40 Vice President of LGT Asset Management Holdings, LGT Asset Management, GT Global, GT
Assistant Secretary Services and G.T. Insurance since February 1996. Assistant General Counsel of LGT Asset
50 California Street Management since January 1995. From 1993 to 1994, Mr. Thelander was an associate at
San Francisco, CA 94111 Kirkpatrick & Lockhart LLP (a law firm). Prior thereto, he was an attorney with the U.S.
Securities and Exchange Commission.
</TABLE>
The Board of Directors has established an Audit and Nominating Committee, which
presently consists of Ms. 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 LGT Asset
Management. Each Director and Officer serves in total as a Director and or
Trustee and Officer, respectively, of 10 registered investment companies with 40
series managed or adminstered by LGT Asset Management. The Company pays each
Director who is not a director, officer or employee of LGT Asset Management 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 LGT Asset Management or any affiliated
company, received total compensation of $3,993.29, $3,866.68, $3,692.27 and
$3,839.89, respectively, from the 40 GT Global 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, 1995, the Fund paid Mr. Anderson, Mr. Bayley, Mr. Patterson and Ms.
Quigley Directors' fees and reimbursements of $99,676.78, $95,368.64, $92,139.90
and $94,457.55, 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 1.51% of the outstanding shares
of the Fund.
Statement of Additional Information Page 6
<PAGE>
GT GLOBAL DOLLAR FUND
MANAGEMENT
- --------------------------------------------------------------------------------
INVESTMENT MANAGEMENT AND ADMINISTRATION SERVICES
LGT Asset Management serves as the Fund's investment manager and administrator
under an Investment Management and Administration Contract between the Company
and LGT Asset Management ("Management Contract"). As investment manager and
administrator, LGT Asset Management makes all investment decisions for the Fund
and administers the Fund's affairs. Among other things, LGT Asset Management
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 LGT Asset
Management 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. Either the Company or LGT Asset
Management 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, GT 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. LGT Asset Management and GT 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 1.00% of the average daily net assets of the Fund's Advisor Class
shares.
For the fiscal years ended December 31, 1995, 1994, and 1993, the Fund paid
investment management and administration fees to LGT Asset Management in the
amounts of $1,665,299, $1,406,615, and $372,788, respectively; during the same
periods LGT Asset Management reimbursed and/or waived the Fund for a portion of
its operating expenses in the amounts of $829,866, $703,312, and $522,638,
respectively.
DISTRIBUTION SERVICES
The Fund's Advisor Class are offered through the Fund's principal underwriter
and distributor, GT Global , on a "best efforts" basis without a sales charge or
a contingent deferred sales charge.
TRANSFER AGENCY SERVICES
GT 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.
As of December 31, 1995, the Fund paid LGT Asset Management fees of $34,482 for
accounting services.
EXPENSES OF THE FUND
The Fund pays all expenses not assumed by LGT Asset Management, GT Global and
other agents. These expenses include, in addition to the advisory, distribution,
transfer agency, pricing and accounting agency and brokerage fees discussed
above, legal and audit expenses, custodian fees, directors' fees, organizational
fees, fidelity bond and other insurance premiums, taxes, extraordinary expenses
and the expenses of reports and prospectuses sent to existing
Statement of Additional Information Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
investors. Certain of these expenses, such as custodial fees and brokerage fees,
generally are higher for non-U.S. securities. The allocation of general Company
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.
- --------------------------------------------------------------------------------
DIVIDENDS AND TAXES
- --------------------------------------------------------------------------------
DAILY INCOME DIVIDENDS
Net investment income and any realized net short-term capital gain are
determined and declared as a dividend each day. 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 of the Fund 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 each dividend.
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 in
accordance with generally accepted accounting principles), (b) minus all accrued
liabilities, including interest, taxes and other expense items, and reserves for
contingent or undetermined liabilities, all determined in accordance with those
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, 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, or other
income derived with respect to its business of investing in 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 its 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 that does not
exceed 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).
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>
GT 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 domestic
shareholders 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 GT Global Mutual Funds as described in the Prospectus. Advisor
Class shares may be exchanged only for Advisor Class shares of other GT Global
Statement of Additional Information Page 9
<PAGE>
GT 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 GT 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>
GT 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, LGT Asset
Management 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, LGT Asset
Management 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 LGT Asset Management 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
GT 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 GT 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, LGT Asset Management may consider a
broker/dealer's sale of the shares of the Fund and the other funds for which LGT
Asset Management 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>
GT GLOBAL DOLLAR FUND
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
LIECHTENSTEIN GLOBAL TRUST
Liechtenstein Global Trust, formerly BIL GT Group, is composed of LGT Asset
Management and its worldwide affiliates. Other worldwide affiliates of
Liechtenstein Global Trust include LGT Bank in Liechtenstein, formerly Bank in
Liechtenstein, an international financial services institution founded in 1920.
LGT Bank in Liechtenstein has principal offices in Vaduz, Liechtenstein. Its
subsidiaries currently include LGT Bank in Liechtenstein (Deutschland) GmbH,
formerly Bank in Liechtenstein (Frankfurt) GmbH, and LGT Asset Management AG,
formerly Bilfinanz und Verwaltung AG, located in Zurich, Switzerland.
Worldwide asset management affiliates also currently include LGT Asset
Management PLC, formerly G.T. Management PLC in London, England; LGT Asset
Management Ltd., formerly G.T. Management (Asia) Ltd. in Hong Kong; LGT
Investment Trust Management Ltd., formerly G.T. Management (Japan) Ltd. in
Tokyo; LGT Asset Management Pte. Ltd., formerly G.T. Management (Singapore) PTE
Ltd. located in Singapore; LGT Asset Management Ltd., formerly G.T. Management
(Australia) Ltd., located in Sydney; and LGT Asset Management GmbH, formerly BIL
Asset Management GmbH, located in Frankfurt, Germany.
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
LGT Asset Management has granted the Company the right to use the "GT" and "GT
Global" names in the name of the Company and the Fund and has reserved the
rights to withdraw its consent to the use of such names by the Company or the
Fund at any time, or to grant the use of such names to any other company, and
the Company has granted LGT Asset Management, under certain conditions, the use
of any other names it might assume in the future, with respect to any other
investment company sponsored by LGT Asset Management.
Statement of Additional Information Page 12
<PAGE>
GT 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, 1995, the Fund's Class A share yield
was 4.81% and effective yield was 4.93%. 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, 1995:......................... $1.000922914
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000922914
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000922914
Seven-day yield = $.000922914 x 365/7 = 4.81%
Effective yield** = [1 + .000922914] 365/7 -1 = 4.93%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
For the seven-day period ended December 31, 1995, the Fund's Class B share yield
was 4.07% and effective yield was 4.15%. 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:......................... $1.000779990
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000779990
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000779990
Seven-day yield = $.000779990 x 365/7 = 4.07%
Effective yield** = [1 + .000779990] 365/7 -1 = 4.15%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
For the seven-day period ended December 31, 1995, the Fund's Advisor Class share
yield was 4.81% and effective yield was 4.93%. 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, 1995:......................... $1.009232742
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Statement of Additional Information Page 13
<PAGE>
GT GLOBAL DOLLAR FUND
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.009232742
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ 1.009232742
Seven-day yield = $1.009232742 x 365/7 = 4.81%
Effective yield** = [1 + 1.009232742] 365/7 -1 = 4.93%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
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.
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 B shares,
deduction of the applicable contingent deferred sales charge imposed on a
redemption of Class B shares held for the period; (2) reinvestment of dividends
and other distributions at net asset value on the reinvestment date determined
by the Board; and (3) 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, 1995, were as follows:
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended December 31, 1995..................................................................... 5.08%
Five years ended December 31, 1995............................................................... 3.70%
Ten years ended December 31, 1995................................................................ 5.12%
September 16, 1985 through December 31, 1995..................................................... 5.12%
</TABLE>
The Fund's Standardized Return for its Class A shares, stated as aggregate total
return, at December 31, 1995, was as follows:
<TABLE>
<CAPTION>
STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
September 16, 1985 through December 31, 1995..................................................... 67.17%
</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, 1995..................................................................... (0.71)%
April 1, 1993 through December 31, 1995.......................................................... 1.80%
</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, 1995, was
as follows:
<TABLE>
<CAPTION>
STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- -------------------------------------------------------------------------------------------------- -----------------------
<S> <C>
April 1, 1993 through December 31, 1995........................................................... 5.04%
</TABLE>
The Fund's Standardized Returns for its Advisor Class shares, which were first
offered on June 1, 1995, stated as average annualized total returns, were as
follows:
<TABLE>
<CAPTION>
STANDARDIZED
PERIOD TOTAL RETURN
- ------------------------------------------------------------------------------------------------------------ ---------------
<S> <C>
June 1, 1995 through December 31, 1995...................................................................... N/A
</TABLE>
Statement of Additional Information Page 14
<PAGE>
GT GLOBAL DOLLAR FUND
The Fund's Standardized Return for its Advisor Class shares, which were first
offered on June 1, 1995, stated as aggregate total returns, at December 31,
1995, was as follows:
<TABLE>
<CAPTION>
STANDARDIZED AGGREGATE
PERIOD RETURN
- -------------------------------------------------------------------------------------------------- -----------------------
<S> <C>
June 1, 1995 through December 31, 1995............................................................ 2.92%
</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, 1995, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUAL TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended December 31, 1995................................................................. 5.08%
Five years ended December 31, 1995........................................................... 3.70%
Ten years ended December 31, 1995............................................................ 5.12%
September 16, 1985 through December 31, 1995................................................. 5.12%
</TABLE>
The Fund's Non-Standardized Return for its Class A shares, stated as aggregate
total return, at December 31, 1995, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
September 16, 1985 through December 31, 1995................................................. 67.17%
</TABLE>
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, 1995, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended December 31, 1995................................................................. 4.29%
April 1, 1993 through December 31, 1995...................................................... 2.85%
</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,
1995, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 through December 31, 1995...................................................... 8.04%
</TABLE>
The Fund's Non-Standardized Return for its Advisor Class shares, which were
first offered on June 1, 1995, stated as average annualized total returns, at
December 31, 1995, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
June 1, 1995 through December 31, 1995....................................................... N/A
</TABLE>
The Fund's Non-Standardized Return for its Advisor Class shares, which were
first offered on June 1, 1995, stated as aggregate total return, at December 31,
1995, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
June 1, 1995 through December 31, 1995....................................................... 2.92%
</TABLE>
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
Statement of Additional Information Page 15
<PAGE>
GT GLOBAL DOLLAR FUND
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 GT 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.
(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.
Statement of Additional Information Page 16
<PAGE>
GT GLOBAL DOLLAR FUND
(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.
GT Global may provide information designed to help individuals understand their
investment goals and explore various financial strategies. For example, GT
Global may describe general principles of investing, such as asset allocation,
diversification and risk tolerance.
In advertising materials, GT 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, GT 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
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 GT 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:
Statement of Additional Information Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
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 adviser 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 roll over (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 rollover 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, GT Global may make reference to or discuss
its products, services and accomplishments. Among these accomplishments are that
in 1983 GT 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 GT 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 GT 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 GT Global provide any assurance that the GT
Global Mutual Funds' investment objectives will be achieved.
In addition, GT 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.
THE LGT ADVANTAGE
LGT Asset Management has developed a unique team approach to its global money
management which we call the LGT Advantage. LGT Asset Management's money
management style combines the best of the "top-down" and "bottom-up" investment
manager strategies. The top-down approach is implemented by LGT Asset
Management's Investment Policy Committee which sets broad guidelines for asset
allocation and currency management based on LGT Asset Management'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.
Statement of Additional Information Page 18
<PAGE>
GT GLOBAL DOLLAR FUND
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.
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.
Statement of Additional Information Page 19
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The audited financial statements of the Fund at December 31, 1995 and for the
year then-ended appear on the following pages.
Statement of Additional Information Page 20
<PAGE>
GT GLOBAL DOLLAR FUND
REPORT OF
INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND
BOARD OF DIRECTORS OF
GT INVESTMENT PORTFOLIOS, INC.:
We have audited the accompanying statement of assets and liabilities of GT
Global Dollar Fund, a series of shares of common stock of GT Investment
Portfolios, Inc., including the schedule of portfolio investments, as of
December 31, 1995, 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 four 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 the year 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, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of GT
Global Dollar Fund as of December 31, 1995, 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 four years in
the period then ended, in conformity with generally accepted accounting
principles.
Coopers & Lybrand, L.L.P.
Boston, Massachusetts
February 12, 1996
Statement of Additional Information Page 21
<PAGE>
GT GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Principal Market
Short-Term Investments Yield Date Amount Value
- --------------------------------------------------------------------------------- --------- --------- ----------- ------------
<S> <C> <C> <C> <C>
Commercial Paper - Discounted (50.9%)
AIG Funding Inc. .............................................................. 5.77% 08-Jan-96 $14,400,000 $ 14,383,900
E.I. DuPont de Nemours & Co. .................................................. 5.78% 12-Jan-96 14,400,000 14,374,656
Minnesota Mining & Manufacturing Co. .......................................... 5.70% 19-Jan-96 14,250,000 14,209,886
PHH Corp ...................................................................... 5.77% 26-Jan-96 14,250,000 14,193,792
Ford Motor Credit Co. ......................................................... 5.78% 05-Jan-96 13,250,000 13,241,564
Toronto Dominion Holdings USA, Inc. ........................................... 5.72% 24-Jan-96 12,400,000 12,355,556
Procter & Gamble Co. .......................................................... 5.66% 13-Feb-96 12,000,000 11,919,733
AT&T Corp. .................................................................... 5.79% 05-Jan-96 9,500,000 9,493,899
Philip Morris Cos., Inc. ...................................................... 5.91% 05-Jan-96 9,500,000 9,493,772
Bellsouth Capital Funding Corp. .............................................. 5.66% 09-Jan-96 9,500,000 9,488,072
General Electric Capital Corp. ................................................ 5.72% 12-Feb-96 9,000,000 8,940,780
Hanson Finance PLC ............................................................ 5.80% 17-Jan-96 8,900,000 8,877,453
Ameritech Corp. ............................................................... 5.62% 09-Feb-96 3,390,000 3,369,510
Merrill Lynch & Co., Inc. ..................................................... 5.86% 04-Jan-96 1,263,000 1,262,384
------------
Total Commercial Paper - Discounted
(amortized cost $145,604,957) ................................................. 145,604,957
------------
Government & Government Agency Obligations (15.8%)
Federal National Mortgage Association ......................................... 5.60% 20-Sep-96 14,400,000 14,385,942
Sallie Mae ................................................................... 5.20% 19-Jul-96 12,400,000 12,390,700
Federal Home Loan Mortgage Corp. .............................................. 5.42% 12-Mar-96 12,000,000 11,871,727
Federal Home Loan Bank ........................................................ 5.76% 02-Oct-96 6,000,000 5,995,774
------------
Total Government & Government Agency Obligations (amortized cost $44,644,143) ... 44,644,143
------------
<CAPTION>
Principal Market
Repurchase Agreements Amount Value
- --------------------------------------------------------------------------------- ----------- ------------
<S> <C> <C> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust Company, due January 2,
1996, for an effective yield of 5.55%, collateralized by $67,910,000 U.S.
Treasury Note, 6.00% due 8/31/97 (market value of collateral is $70,092,688,
including accrued interest). (cost $68,726,771) .............................. 68,726,771
Dated December 29, 1995, with Merrill Lynch, due January 2, 1996, for an
effective yield of 5.60%, collateralized by $50,185,000 U.S. Treasury Note,
5.625% due 10/31/97 (market value of collateral is $51,042,298, including
accrued interest). (cost $50,023,333) ....................................... 50,023,333
------------
TOTAL REPURCHASE AGREEMENTS (cost $118,750,104) ................................. 118,750,104
------------
TOTAL SHORT-TERM INVESTMENTS (cost $308,999,204)* ............................... 308,999,204
Other Assets and Liabilities ................................................... (23,991,713)
------------
NET ASSETS ...................................................................... $285,007,491
------------
------------
<CAPTION>
% of Net
Short-Term Investments Assets {d}
- --------------------------------------------------------------------------------- -------------
<S> <C>
Commercial Paper - Discounted (50.9%)
AIG Funding Inc. .............................................................. 5.1
E.I. DuPont de Nemours & Co. .................................................. 5.0
Minnesota Mining & Manufacturing Co. .......................................... 5.0
PHH Corp ...................................................................... 5.0
Ford Motor Credit Co. ......................................................... 4.6
Toronto Dominion Holdings USA, Inc. ........................................... 4.3
Procter & Gamble Co. .......................................................... 4.2
AT&T Corp. .................................................................... 3.3
Philip Morris Cos., Inc. ...................................................... 3.3
Bellsouth Capital Funding Corp. .............................................. 3.3
General Electric Capital Corp. ................................................ 3.1
Hanson Finance PLC ............................................................ 3.1
Ameritech Corp. ............................................................... 1.2
Merrill Lynch & Co., Inc. ..................................................... 0.4
-----
Total Commercial Paper - Discounted
(amortized cost $145,604,957) ................................................. 50.9
-----
Government & Government Agency Obligations (15.8%)
Federal National Mortgage Association ......................................... 5.1
Sallie Mae ................................................................... 4.4
Federal Home Loan Mortgage Corp. .............................................. 4.2
Federal Home Loan Bank ........................................................ 2.1
-----
Total Government & Government Agency Obligations (amortized cost $44,644,143) ... 15.8
-----
% of Net
Repurchase Agreements Assets {d}
- --------------------------------------------------------------------------------- -------------
<S> <C>
Dated December 29, 1995, with State Street Bank & Trust Company, due January 2,
1996, for an effective yield of 5.55%, collateralized by $67,910,000 U.S.
Treasury Note, 6.00% due 8/31/97 (market value of collateral is $70,092,688,
including accrued interest). (cost $68,726,771) .............................. 24.1
Dated December 29, 1995, with Merrill Lynch, due January 2, 1996, for an
effective yield of 5.60%, collateralized by $50,185,000 U.S. Treasury Note,
5.625% due 10/31/97 (market value of collateral is $51,042,298, including
accrued interest). (cost $50,023,333) ....................................... 17.6
-----
TOTAL REPURCHASE AGREEMENTS (cost $118,750,104) ................................. 41.7
-----
TOTAL SHORT-TERM INVESTMENTS (cost $308,999,204)* ............................... 108.4
Other Assets and Liabilities ................................................... (8.4)
-----
NET ASSETS ...................................................................... 100.0
-----
-----
</TABLE>
- ----------------
{d} Percentages indicated are based on net assets of $285,007,491.
* For Federal income tax purposes, cost is $308,999,204.
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 22
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets:
Investments in securities, at value (amortized
cost $190,249,100) (Note 1)...................... $190,249,100
Repurchase agreements, at value and cost (Note
1)............................................... 118,750,104
U.S. currency..................................... 120,007
Receivable for Fund shares sold................... 23,487,618
Interest receivable............................... 452,998
------------
Total assets.................................... 333,059,827
------------
Liabilities:
Payable for Fund shares repurchased............... 47,537,243
Distribution payable.............................. 137,794
Payable for investment management and
administration fees (Note 2)..................... 135,110
Payable for printing and postage expenses......... 74,962
Payable for transfer agent fees (Note 2).......... 67,712
Payable for service and distribution expenses
(Note 2)......................................... 67,165
Payable for professional fees..................... 19,088
Payable for fund accounting fees (Note 2)......... 6,672
Payable for registration and filing fees.......... 3,497
Payable for custodian fees........................ 1,838
Payable for Directors' fees and expenses (Note
2)............................................... 1,255
------------
Total liabilities............................... 48,052,336
------------
Net assets.......................................... $285,007,491
------------
------------
Class A:
Net asset value and redemption price per share
($183,766,837 DIVIDED BY 183,794,106 shares
outstanding)....................................... $ 1.00
------------
------------
Class B:+
Net asset value and offering price per share
($99,150,908 DIVIDED BY 99,151,671 shares
outstanding)....................................... $ 1.00
------------
------------
Advisor Class:
Net asset value, offering price per share, and
redemption price per share
($2,089,746 DIVIDED BY 2,080,151 shares
outstanding)....................................... $ 1.00
------------
------------
Net assets: At December 31, 1995, net assets
consisted of paid-in capital of $285,007,491.
<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>
GT GLOBAL DOLLAR FUND
STATEMENT OF OPERATIONS
Year ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income........................................... $19,720,237
-----------
Expenses:
Investment management and administration fees (Note 2).... 1,665,299
Service and distribution expenses: (Note 2)
Class A.................................. $ 573,163
Class B.................................. 1,026,630 1,599,793
----------
Transfer agent fees (Note 2).............................. 935,216
Registration and filing fees.............................. 376,015
Printing and postage expenses............................. 145,535
Fund accounting fees (Note 2)............................. 86,710
Custodian fees (Note 4)................................... 43,228
Legal fees................................................ 31,280
Audit fees................................................ 24,277
Directors' fees and expenses (Note 2)..................... 16,960
Insurance expenses........................................ 5,555
-----------
Total expenses before reimbursement....................... 4,929,868
-----------
Expenses waived by LGT Asset Management, Inc. (Note
2).......................................................... (829,866)
Expense reductions (Note 4)............................. (88,704)
-----------
Total net expenses........................................ 4,011,298
-----------
Net investment income....................................... 15,708,939
-----------
Net increase in net assets resulting from operations........ $15,708,939
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 24
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income...................... $ 15,708,939 $ 9,172,741
Net realized gain on investments and
foreign currency transactions............. -- 2,228
----------------- -----------------
Net increase in net assets resulting from
operations.............................. 15,708,939 9,174,969
----------------- -----------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income................. (11,346,132) (7,423,289)
Class B:
Distributions to shareholders: (Note 1)
From net investment income................. (4,308,505) (1,749,452)
Advisor Class: (Note 1)
Distributions to shareholders:
From net investment income................. (54,302) --
----------------- -----------------
Total distributions.................... (15,708,939) (9,172,741)
----------------- -----------------
Capital share transactions: (Note 3)
Increase from capital shares sold and
reinvested................................ 9,659,790,290 5,479,251,663
Decrease from capital shares repurchased... (9,805,577,211) (5,139,759,248)
----------------- -----------------
Net increase (decrease) from capital
share transactions...................... (145,786,921) 339,492,415
----------------- -----------------
Total increase (decrease) in net
assets................................ (145,786,921) 339,494,643
Net assets:
Beginning of year.......................... 430,794,412 91,299,769
----------------- -----------------
End of year................................ $ 285,007,491 $ 430,794,412
----------------- -----------------
----------------- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 25
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
---------------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
1995 1994 1993 1992 1991
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net investment income................... 0.050 0.032 0.022 0.028 0.051
Distributions from net investment
income................................. (0.050) (0.032) (0.022) (0.028) (0.051)
----------- ----------- ----------- ----------- -----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Total investment return (a)......... 5.08% 3.30% 2.2% 2.8% 5.1%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 183,761 $ 320,858 $ 87,822 $ 81,674 $ 70,295
Ratio of net investment income to
average net assets:
With expense waivers and
reductions (b) (Notes 2 & 4)......... 4.94% 3.40% 2.17% 2.78% 5.10%
Without expense waivers and
reductions (b)....................... 4.66% 3.15% 1.46% 2.47% 4.90%
Ratio of expenses to average net assets:
With expense waivers and
reductions (b) (Notes 2 & 4)......... 0.97% 0.92% 1.00% 1.25% 1.25%
Without expense waivers and
reductions (b)....................... 1.25% 1.17% 1.72% 1.56% 1.45%
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
(a) Not annualized for periods of less than one year.
(b) Annualized for periods of less than one year.
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 26
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS (CONT'D)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR
CLASS B++ CLASS+++
----------------------------------------- --------------
APRIL 1, 1993 JUNE 1, 1995
YEAR ENDED DECEMBER 31, TO TO
------------------------- DECEMBER 31, DECEMBER 31,
1995 1994 1993 1995
---------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Net investment income................... 0.040 0.025 0.010 0.030
Distributions from net investment
income................................. (0.040) (0.025) (0.010) (0.030)
---------- ------------- ------- -------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ------------- ------- -------
---------- ------------- ------- -------
Total investment return (a)......... 4.29% 2.53 % 1.4 % 2.92 %
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 99,151 $ 109,936 $ 3,478 $ 2,096
Ratio of net investment income to
average net assets:
With expense waivers and
reductions (b) (Notes 2 & 4)......... 4.19% 2.65 % 1.42 % 4.94 %
Without expense waivers and
reductions (b)....................... 3.91% 2.40 % 0.86 % 4.91 %
Ratio of expenses to average net assets:
With expense waivers and
reductions (b) (Notes 2 & 4)......... 1.72% 1.67 % 1.75 % 0.97 %
Without expense waivers and
reductions (b)....................... 2.00% 1.92 % 2.31 % 1.00 %
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
(a) Not annualized for periods of less than one year.
(b) Annualized for periods of less than one year.
The accompanying notes are an integral part of the financial statements.
Statement of Additional Information Page 27
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES TO
FINANCIAL STATEMENTS
December 31, 1995
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Dollar Fund ("Fund") is a diversified series of GT 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 Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Each class has exclusive voting
rights with respect to its distribution plan. The Fund commenced sale of Advisor
Class shares on June 1, 1995. Investment income, realized and unrealized capital
gains and losses, and the common expenses of the Fund are allocated on a pro
rata basis to each class based on the relative net assets of each class to the
total net assets of the Fund. Each class of shares differs in its respective
distribution expenses, and may differ in its transfer agent, registration, and
certain other class-specific fees and expenses.
The following is a summary of significant accounting policies 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.
C. REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, U.S. government securities or other
high quality debt securities of which the value, including accrued interest, is
at least equal to the amount to be repaid to the Fund under each agreement at
its maturity. LGT Asset Management, Inc. ("LGT", formerly known as G.T. Capital
Management, Inc.) is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
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
LGT serves as the investment manager and administrator of the Fund. The Fund
pays LGT 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.
GT Global, Inc. ("GT Global", formerly known as G.T. Capital Management, Inc.),
an affiliate of LGT, 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 GT 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, 1995, GT Global collected CDSCs in the amount of
$1,333,734. In addition, GT 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 GT
Statement of Additional Information Page 28
<PAGE>
GT GLOBAL DOLLAR FUND
Global for a portion of its shareholder servicing and distribution expenses.
Under the Class A Plan, the Fund may pay GT Global a service fee at the
annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.25% 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 GT Global's expenditures incurred in providing services as distributor.
GT Global does not currently intend to seek reimbursement of any amounts under
the Class A Plan. All expenses for which GT Global is reimbursed under the Class
A Plan will have been incurred within one year of such reimbursement.
Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.75% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in providing services as
distributor. GT 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.
LGT and GT 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%, 1.75%, and 1.00% of the average daily net assets of
the Fund's Class A, Class B, and Advisor Class shares, respectively. If
necessary, this limitation will be effected by waivers by LGT of its investment
management and administration fees, waivers by GT Global of payments under the
Class A Plan and/or Class B Plan and/or reimbursements by LGT or GT Global of
portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of LGT and GT
Global, is the transfer agent for the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT services receives
an annual maintenance fee of $17.50 per account, a new account fee of $4.00 per
account, a per transaction fee of $1.75 for all transactions other than
exchanges and a per exchange fee of $2.25. 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.
The Company pays each of its Directors who is not an employee, officer or
director of LGT, GT Global or GT Services $1,000 per year plus $300 for each
meeting of the board or any committee thereof attended by the Director.
Effective July 1, 1995, LGT has assumed the role of pricing and accounting agent
for the Fund. The monthly fee for these services to LGT is a percentage, not to
exceed 0.03% annually, of the Fund's average daily net assets. The annual fee
rate is derived by applying 0.03% to the first $5 billion of assets of all
registered mutual funds advised by LGT ("GT Funds") and 0.02% to the assets in
excess of $5 billion and dividing the result by the aggregated assets of the GT
Funds. For the period ended December 31, 1995, the Fund paid fund accounting
fees of $34,482 to LGT.
Statement of Additional Information Page 29
<PAGE>
GT GLOBAL DOLLAR FUND
3. CAPITAL SHARES
At December 31, 1995, there were 2,000,000,000 shares of the Company's common
stock authorized, at $0.001 per share. Of this number, 1,500,000,000 shares have
been classified as shares of the Fund; 500 million shares have been classified
as Class A shares, 500 million have been classified as Class B shares, and 500
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.
Transactions in capital shares of the Fund were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------ ------------------
SHARES & AMOUNT SHARES & AMOUNT
------------------ ------------------
<S> <C> <C>
CLASS A:
Shares sold................................................................................ 8,377,131,000 4,869,818,720
Shares issued in connection with reinvestment of distributions............................. 9,256,942 6,725,406
------------------ ------------------
8,386,387,942 4,876,544,126
Shares repurchased......................................................................... (8,523,474,325) (4,643,506,545)
------------------ ------------------
Net increase (decrease).................................................................... (137,086,383) 233,037,581
------------------ ------------------
------------------ ------------------
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
------------------ ------------------
SHARES & AMOUNT SHARES & AMOUNT
------------------ ------------------
<S> <C> <C>
CLASS B:
Shares sold................................................................................ 1,264,724,918 601,281,318
Shares issued in connection with reinvestment of distributions............................. 3,247,874 1,426,219
------------------ ------------------
1,267,972,792 602,707,537
Shares repurchased......................................................................... (1,278,753,481) (496,252,703)
------------------ ------------------
Net increase (decrease).................................................................... (10,780,689) 106,454,834
------------------ ------------------
------------------ ------------------
</TABLE>
<TABLE>
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT
OF SALE OF SHARES)
TO DECEMBER 31, 1995
---------------------
SHARES & AMOUNT
---------------------
<S> <C> <C>
ADVISOR CLASS:
Shares sold............................................................................. 5,375,327
Shares issued in connection with reinvestment of distributions.......................... 54,229
---------------------
5,429,556
Shares repurchased...................................................................... (3,349,405)
---------------------
Net increase............................................................................ 2,080,151
---------------------
---------------------
</TABLE>
4. EXPENSE REDUCTIONS
For the year ended December 31, 1995, the Fund's custody fees were offset by
$88,704 of credits on cash held at the custodian.
Statement of Additional Information Page 30
<PAGE>
GT GLOBAL DOLLAR FUND
GT GLOBAL MUTUAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT YOUR FINANCIAL ADVISOR OR CALL GT GLOBAL
DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity for U.S. investors by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND
SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in the growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Invests in global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in a portfolio of emerging market debt securities
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and conservation of capital
[LOGO]
NO DEALER, SALES REPRESENTATIVE 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 GT
GLOBAL DOLLAR FUND, G.T. INVESTMENT PORTFOLIOS, INC., LGT ASSET MANAGEMENT,
INC. OR GT GLOBAL, 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.
DOLSX604MC
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
PART C: OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
The following audited financial statements as of December 31, 1995, and for
the fiscal year then ended for the Class A, Class B and Advisor Class shares of
the GT Global Dollar Fund are filed herewith:
-- Report of Independent Accountants
-- Portfolio of Investments
-- Statement of Assets and Liabilities
-- Statement of Operations
-- Statement of Changes in Net Assets
-- Financial Highlights
-- Notes to Financial Statements
(b) EXHIBITS REQUIRED BY PART C, ITEM 24 OF FORM N-1A.
<TABLE>
<S> <C>
(1) The Registrant's Articles of Amendment and Restatement. (1)
(2) The Registrant's By-Laws as amended. (2)
(3) Not Applicable.
(4) Not Applicable.
(5) The Investment Management and Administration Contract dated May 1, 1989.
(2)
(6)(a) Distribution Agreement relating to Class A shares of GT Global Dollar Fund.
(3)
(6)(b) Distribution Agreement relating to Class B shares of GT Global Dollar
Fund.(4)
(7) Not Applicable.
(8) The Custodian Agreement between the Registrant and State Street Bank and
Trust Company. (2)
(9)(a) The Transfer Agent Contract dated May 25, 1990. (2)
(9)(b) Other material contracts:
</TABLE>
(i) Broker/dealer sales contract (2)
(ii) Bank sales contract (2)
(iii) Agency sales contract (2)
(iv) Foreign sales contract (2)
<TABLE>
<S> <C>
(10) Opinion and consent of counsel is incorporated by reference to Exhibit 10
of a Post-Effective Amendment to the Registration Statement filed
previously.
(11) Consent of Coopers & Lybrand L.L.P., Independent Accountants -- Filed
herewith.
(12) Not Applicable.
(13) Not Applicable.
(14) Model retirement plan -- GT Global Individual Retirement Account Disclosure
Statement and Application. (2)
(15)(a) Distribution Plan adopted pursuant to Rule 12b-1 relating to Class A
shares.(3)
(15)(b) Form of Distribution Plan adopted pursuant to Rule 12b-1 relating to Class
B shares.(3)
</TABLE>
C-1
<PAGE>
<TABLE>
<S> <C>
(16) Schedules of Computation of Performance Quotations relating to the Class A,
Class B and Advisor Class shares of GT Global Dollar Fund -- Filed
herewith.
(18) Multiple Class Plan Pursuant to Rule 18f-3 -- Filed herewith.
</TABLE>
<TABLE>
<S> <C>
Other Exhibits:
(a) Power of Attorney -- Superceded. (2)
(b) Power of Attorney -- Filed herewith.
</TABLE>
- ------------------------
(1) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 17 to the Registration Statement on Form N-1A,
filed March 30, 1993.
(2) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 14 to the Registration Statement on Form N-1A,
filed April 29, 1992.
(3) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 18 to the Registration Statement on Form N-1A,
filed on April 25, 1994.
(4) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 20 to the Registration Statement on Form N-1A,
filed on March 1, 1995.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE REGISTRANT
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
As of April 1, 1996:
<TABLE>
<CAPTION>
TITLE OF CLASS NUMBER OF RECORD HOLDERS
- -------------------------------------------------------------- --------------------------
<S> <C>
Shares of Common Stock, $.0001 par value, of
GT Global Dollar Fund Class A................................. 8,216
GT Global Dollar Fund Class B................................. 4,876
GT Global Dollar Fund Advisor Class........................... 291
</TABLE>
ITEM 27. INDEMNIFICATION
Section 2-148 of the Maryland General Corporation Law and Article X of
Registrant's By-laws provide for indemnification of certain persons acting on
behalf of the Registrant.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933, as amended ("1933 Act") may be permitted to Directors, officers and
controlling persons by the Registrant's Articles of Incorporation, By-Laws, or
otherwise, the Registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the 1933 Act, and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment by
the Registrant of expenses incurred or paid by a Director, officer or
controlling person of the Registrant in the successful defense of any action,
suit or proceeding ) is asserted by such Director, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the 1933 Act
and will be governed by the final adjudication of such issues.
Effective January 21, 1988, Registrant and the Directors and officers of the
Registrant obtained coverage under a Professional Indemnity insurance policy.
The terms and conditions of policy coverage conform generally to the standard
coverage available throughout the investment company industry. Similar coverage
by separate policies is afforded the investment manager and its directors,
officers and employees.
C-2
<PAGE>
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
See the material under the heading "Management" included in Part A
(Prospectus) of this Amendment and the material appearing under the headings
"Directors and Executive Officers" and "Management" included in Part B
(Statement of Additional Information) of this Amendment.
ITEM 29. PRINCIPAL UNDERWRITERS
(a) In addition to the Registrant, GT Global, Inc. is the principal
underwriter for the following other investment companies: G.T. Global Growth
Series (which includes eight funds currently in operation: GT Global America
Small Cap Growth Fund, GT Global America Value Fund, GT Global America Growth
Fund, GT Global Europe Growth Fund, GT Global International Growth Fund, GT
Global Japan Growth Fund, GT Global New Pacific Growth Fund and GT Global
Worldwide Growth Fund); G.T. Investment Funds, Inc. (which includes twelve funds
currently in operation: GT Global Strategic Income Fund, GT Global High Income
Fund, GT Global Government Income Fund, GT Global Health Care Fund, GT Global
Growth & Income Fund, GT Global Latin America Growth Fund, GT Global Emerging
Markets Fund, GT Global Telecommunications Fund, GT Global Financial Services
Fund, GT Global Infrastructure Fund, GT Global Natural Resources Fund and GT
Global Consumer Products and Services Fund); G.T. Global Variable Investment
Series (which includes five funds currently in operation: GT Global Variable New
Pacific Fund, GT Global Variable Europe Fund, GT Global Variable America Fund,
GT Global Variable International Fund and GT Global Money Market Fund); and G.T.
Global Variable Investment Trust (which includes nine funds currently in
operation: GT Global Variable Latin America Fund, GT Global Variable Emerging
Markets Fund, GT Global Variable Infrastructure Fund, GT Global Variable Natural
Resources Fund, GT Global Variable Telecommunications Fund, GT Global Variable
Growth & Income Fund, GT Global Variable Strategic Income Fund, GT Global
Variable Global Government Income Fund and GT Global Variable U.S. Government
Income Fund).
(b) Directors and Officers of GT Global, Inc.
Unless otherwise indicated, the business address of each person listed is 50
California Street, San Francisco, CA 94111.
<TABLE>
<CAPTION>
POSITIONS AND OFFICES WITH GT POSITIONS AND OFFICES WITH THE
NAME GLOBAL FUND
- -------------------------------------------- ---------------------------------- ----------------------------------
<S> <C> <C>
David A. Minella Chairman of the Board of Chairman of the Board of Directors
Directors and President
William J. Guilfoyle President and Director None
James R. Tufts Senior Vice President -- Finance Vice President, Treasurer and
and Administration and Director Principal Financial Officer
Helge K. Lee Senior Vice President Vice President and Secretary
Raymond R. Cunningham Senior Vice President -- National None
Bank Sales and Director
Donald F. MacLeod Senior Vice President None
375 Park Avenue, Suite 3401
New York, New York 10152
</TABLE>
C-3
<PAGE>
<TABLE>
<S> <C> <C>
Stephen A. Maginn Senior Vice President -- Regional None
519 S. Juanita Sales Manager
Redondo Beach, CA 90277
Robert J. Wolf Senior Vice President -- Regional None
71 South 20th Street Sales Manager
Suite 120
Battle Creek, MI 49015
Peter R. Guarino Secretary Assistant Secretary
David J. Thelander Vice President Assistant Secretary
David P. Anderson, Jr. Vice President None
1012 William
Plymouth, MI 48170
Jon Burke Vice President None
31 Darlene Drive
Southboro, MA 01772
Bruce W. Caldwell Vice President None
1003 Medinah Court
Kennesaw, GA 30144
Anthony DiBacco Vice President None
30585 Via Lindosa Way
Laguna Niguel, CA 92677
Stephen Donovick Vice President None
2806 Carriage Lane
Carrolton, TX 75006
Philip D. Edelstein Vice President None
9 Huntly Circle
Palm Beach Gardens, FL 33418
Jon Fessel Vice President None
1781 Pine Harrier Circle
Sarasota, FL 34231
Ned E. Hammond Vice President None
8080 N. Central Expressway
Suite 400
Dallas, TX 75206
Campbell Judge Vice President None
551 Harrington Road
Wayzata, MN 55391
Richard Kashnowski Vice President None
1454 High School Drive
Brentwood, MO 63144
Allen M. Kuhn Vice President None
5518 South Saratoga Street
New Orleans, LA 70115
</TABLE>
C-4
<PAGE>
<TABLE>
<S> <C> <C>
Jeffrey S. Kulik Vice President None
10013 Cape Ann Drive
Columbia, MD 21046
Steven C. Manns Vice President None
3025 Caswell Drive
Troy, MI 48084
C. David Matthews Vice President None
25804 Woodpath Trail
Westlake, OH 44145
Wayne F. Meyer Vice President None
2617 Sun Meadow Drive
Chesterfield, MO 63005
Anthony R. Rogers Vice President None
100 South Bank Drive
Cary, NC 27511
James B. Sandidge Vice President None
758 Chimney Creek Drive
Golden, CO 80401
Philip Schertz Vice President None
25 Ivy Place
Wayne, NJ 07470
Peter Sykes Vice President None
3490 East Brockbank Drive
Salt Lake City, UT 84124
Tommy D. Wells Vice President None
25 Crane Drive
San Anselmo, CA 94960
Todd H. Westby Vice President None
3405 Goshen Road
Newtown Square, PA 19073
Brian A. Williams Vice President None
655 Cherry Street
Winnetka, IL 60093
Eric T. Zeigler Vice President None
26003 Alma Street
Manhattan Beach, CA 90266
</TABLE>
(c) None.
C-5
<PAGE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
Accounts, books and other records required by Rules 31a-1 and 31a-2 under
the Investment Company Act of 1940, as amended, are maintained and held in the
offices of the Registrant and its investment manager, LGT Asset Management,
Inc., 50 California Street, 27th Floor, San Francisco, California 94111, and its
custodian, State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts 02110.
Records covering shareholder accounts are maintained and kept by the
Registrant's transfer agent, GT Global Investor Services, Inc., 2121 N.
California Boulevard, Suite 450, Walnut Creek, California 94596, and records of
portfolio transactions are maintained and kept by the Registrant's custodian,
State Street Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts
02110.
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
Not applicable.
C-6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, as amended, the Registrant hereby certifies that it meets
all of the requirements for effectiveness of this Post-effective Amendment to
its Registration Statement pursuant to Rule 485(b) under the Securities Act of
1933 and caused this Post-Effective Amendment to its Registration Statement to
be signed on its behalf by the undersigned, thereto duly authorized, in the City
of San Francisco and the State of California, on the 25th day of April, 1996.
G.T. INVESTMENT PORTFOLIOS, INC.
By: David A. Minella*
President
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment to the Registration Statement of G.T. Investment
Portfolios, Inc. has been signed below by the following persons in the
capacities indicated on April 25, 1996.
<TABLE>
<S> <C>
David A. Minella* President, Director and
Chairman of the Board
(Chief Executive Officer)
/s/ JAMES R. TUFTS Vice President, Treasurer and
- -------------------------------------------- Chief Financial Officer
James R. Tufts
/s/ KENNETH W. CHANCEY Vice President and
- -------------------------------------------- Chief Accounting Officer
Kenneth W. Chancey
C. Derek Anderson* Director
Arthur C. Patterson* Director
Frank S. Bayley* Director
Ruth H. Quigley* Director
*By: /s/ DAVID J. THELANDER
- -------------------------------------------
David J. Thelander
Attorney-in-Fact, pursuant to
Powers of Attorney filed herewith.
</TABLE>
C-7
<PAGE>
EXHIBIT 99.B11
[COOPERS & LYBRAND LETTERHEAD]
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
G.T. Investment Portfolios, Inc:
GT Global Dollar Fund
We consent to the inclusion in the Registration Statement of G.T. Investment
Portfolios, Inc. of our report dated February 12, 1996 on the financial
statements of GT Global Dollar Fund as of and for the year ended December 31,
1995. We also consent to the references to our firm under the captions
"Financial Highlights" and "Independent Accountants" in such Registration
Statement.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
April 18, 1996
<PAGE>
EXHIBIT 16
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATIONS
GT GLOBAL DOLLAR FUND
CLASS A SHARES
The following is the schedule for the computation of the Standardized Return
quotations for the Class A Shares of the GT Global Dollar Fund
STANDARDIZED RETURN
Time period covered: December 31, 1994 - December 31, 1995
FORMULA: P(1 + T)(n) = ERV
P = initial investment ($1,000)
T = average annual total return
n = number of years (1)
ERV = ending redeeming value ($1050.80 which assumes deduction of the maximum
4.75% sales charge on a $1,000 invesmtent at the beginning of the period)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T + 1)(1) = 1050.80
(T + 1)(1) = (1050.80/$1,000)
T + 1 = (1050.80/$1,000)(1)
T = (1050.80/$1,000)(1) - 1
T = 0.0508
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: December 31, 1990 - December 31, 1995
FORMULA: P(1 + T)(n) = ERV
P = initial investment ($1,000)
T = average annual total return
n = number of years (5)
ERV = ending redeeming value ($1199.28 which assumes deduction of the maximum
4.75% sales charge on a $1,000 investment at the beginning of the period)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T + 1)(5) = 1199.28
(T + 1)(5) = (1199.28/$1,000)
T + 1 = (1199.28/$1,000)(.2)
T = (1199.28/$1,000)(.2) - 1
T = 0.0370
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: December 31, 1985 -- December 31, 1995
FORMULA: P(1 + T)(n) = ERV
P = $1,000
T = average annual total return
n = number of years (10)
ERV = ending redeeming value ($1647.99 which assumes deduction of the maximum
4.75% sales charge on a $1,000 investment at the beginning of the period)
<PAGE>
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T +
1)(10) = 1647.99
(T + 1)(10) = (1647.99/$1,000)
T + 1 = (1647.99/$1,000)(.1)
T = (1647.99/$1,000)(.1) - 1
T = 0.0512
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: September 16, 1985 (commencement of operations) -- December
31, 1995
FORMULA: P(1 + T)(n) = VOA
P = initial investment ($1,000)
T = average annual total return
n = number of years (3758 / 365 = 10.30)
VOA = ending value of account ($1671.70 which assumes deduction of the maximum
4.75% sales charge on a $1,000 investment at the beginning of the period)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T +
1)(10.30) = 1671.70
(T + 1)(10.30) = (1671.70/$1,000)
T + 1 = (1671.70/$1,000)(0.10)
(1671.70/$1,000)(0.10) -
T = 1
T = 0.0512
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: September 16, 1985 (commencement of operations) -- December
31, 1995 FORMULA: T = (VOA / P) - 1
P = initial investment ($1,000)
T = aggregate total return
VOA = ending value of account ($1671.70 which assumes deduction of the maximum
4.75% sales charge on a $1,000 investment at the beginning of the period)
CALCULATION:
<TABLE>
<S> <C> <C>
T = (1671.70/$1,000) - 1
T = 0.6717
</TABLE>
<PAGE>
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATIONS
GT GLOBAL DOLLAR FUND
CLASS B SHARES
The following is the schedule for the computation of the Standardized Return
quotations for the Class B Shares of the GT Global Dollar Fund
STANDARDIZED RETURN
Time period covered: December 31, 1994 -- December 31, 1995
FORMULA: P(1 + T)(n) = ERV
P = initial investment ($1,000)
T = average annual total return
n = number of years (1)
ERV = ending redeeming value ($992.90 which assumes deduction of the maximum
5.00% sales charge on a $1,000 investment at the beginning of the period)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T + 1)(1) = 992.90
(T + 1)(1) = (992.90/$1,000)
T + 1 = (992.90/$1,000)(1)
T = (992.90/$1,000)(1) - 1
T = -0.0071
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: April 1, 1993 (commencement of operations) -- December 31,
1995
FORMULA: P(1 + T)(n) = VOA
P = initial investment ($1,000)
T = average annual total return
n = number of years (1004 / 365 = 2.75)
VOA = ending value of account ($1050.38 which assumes deduction of the maximum
4.00% sales charge on a $1,000 investment at the beginning of the period)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T +
1)(2.75) = 1050.38
(T + 1)(2.75) = (1050.38/$1,000)
T + 1 = (1050.38/$1,000)(0.36)
(1050.38/$1,000)(0.36) -
T = 1
T = 0.0180
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: April 1, 1993 (commencement of operations) -- December 31,
1995
FORMULA: T = (VOA / P) - 1
P = initial investment ($1,000)
T = aggregate total return
VOA = ending value of account ($1050.38 which assumes deduction of the maximum
4.00% sales charge on a $1,000 investment at the beginning of the period)
CALCULATION:
<TABLE>
<S> <C> <C>
T = (1050.38/$1,000) - 1
T = 0.0504
</TABLE>
<PAGE>
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATIONS
GT GLOBAL DOLLAR FUND
CLASS ADV SHARES
The following is the schedule for the computation of the Standardized Return
quotations for the Class Adv Shares of the GT Global Dollar Fund Series of the
Registrant.
STANDARDIZED RETURN
Time period covered: May 31, 1995 (commencement of operations) - December 31,
1995
FORMULA: P(1 + T)(n) = VOA
P = initial investment ($1,000)
T = average annual total return
n = number of years (214 / 365 = 0.59)
VOA = ending value of account ($1029.25)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T +
1)(0.59) = 1029.25
(T + 1)(0.59) = (1029.25/$1,000)
T + 1 = (1029.25/$1,000)(1.71)
(1029.25/$1,000)(1.71) -
T = 1
NA
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: May 31, 1995 (commencement of operations) -- December 31,
1995
FORMULA: T = (VOA / P) - 1
P = initial investment ($1,000)
T = aggregate total return
VOA = ending value of account ($1029.25)
CALCULATION:
<TABLE>
<S> <C> <C>
T = (1029.25/$1,000) - 1
T = 0.0292
</TABLE>
<PAGE>
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATIONS
GT GLOBAL DOLLAR FUND
CLASS A SHARES
The following is the schedule for the computation of the Non-Standardized
Return quotations for the Class A Shares of the GT Global Dollar Fund
NON-STANDARDIZED RETURN
Time period covered: December 31, 1994 -- December 31, 1995
FORMULA: P(1 + T)(n) = ERV
P = initial investment ($1,000)
T = average annual total return
n = number of years (1)
ERV = ending redeeming value ($1050.80, which does not take sales charges into
account)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T + 1)(1) = 1050.80
(T + 1)(1) = (1050.80/$1,000)
T + 1 = (1050.80/$1,000)(1)
T = (1050.80/$1,000)(1) - 1
T = 0.0508
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: December 31, 1990 -- December 31, 1995
FORMULA: P(1 + T)(n) = ERV
P = initial investment ($1,000)
T = average annual total return
n = number of years (5)
ERV = ending redeeming value ($1199.28, which does not take sales charges into
account)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T + 1)(5) = 1199.28
(T + 1)(5) = (1199.28/$1,000)
T + 1 = (1199.28/$1,000)(.2)
T = (1199.28/$1,000)(.2) - 1
T = 0.0370
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: December 31, 1985 -- December 31, 1995
FORMULA: P(1 + T)(n) = ERV
P = $1,000
T= average annual total return
n = number of years (10)
ERV = ending redeeming value ($1283.74, which does not take sales charges into
account)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T +
1)(10) = 1283.74
(T + 1)(10) = (1283.74/$1,000)
T + 1 = (1283.74/$1,000)(.1)
T = (1283.74/$1,000)(.1) - 1
T = 0.0512
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
Time period covered: September 16, 1985 (commencement of operations) -- December
31, 1995
FORMULA: P(1 + T)(n) = VOA
P = initial investment ($1,000)
T = average annual total return
n = number of years (3758 / 365 = 10.30)
VOA = ending value of account ($1671.70, which does not take sales charges into
account)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T +
1)(10.30) = 1671.70
(T + 1)(1)(0.30) = (1671.70/$1,000)
T + 1 = (1671.70/$1,000)(0.10)
(1671.70/$1,000)(0.10) -
T = 1
T = 0.0512
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: September 16, 1985 (commencement of operations) -- December
31, 1995
FORMULA: T = (VOA / P) - 1
P = initial investment ($1,000)
T= aggregate total return
VOA = ending value of account ($1671.70, which does not take sales charges into
account)
CALCULATION:
<TABLE>
<S> <C> <C>
T = (1671.70/$1,000) - 1
T = 0.6717
</TABLE>
<PAGE>
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATIONS
GT GLOBAL DOLLAR FUND
CLASS B SHARES
The following is the schedule for the computation of the Non-Standardized
Return quotations for the Class B Shares of the GT Global Dollar Fund
NON-STANDARDIZED RETURN
Time period covered: December 31, 1994 -- December 31, 1995
FORMULA: P(1 + T)(n) = ERV
P = initial investment ($1,000)
T = average annual total return
n = number of years (1)
ERV = ending redeeming value ($1042.90, which does not take sales charges into
account)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T + 1)(1) = 1042.90
(T + 1)(1) = (1042.90/$1,000)
T + 1 = (1042.90/$1,000)(1)
T = (1042.90/$1,000)(1) - 1
T = 0.0429
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: April 1, 1993 (commencement of operations) -- December 31,
1995
FORMULA: P(1 + T)(n) = VOA
P = initial investment ($1,000)
T = average annual total return
n = number of years (1004 / 365 = 2.75)
VOA = ending value of account ($1080.38, which does not take sales charges into
account)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T +
1)(2.75) = 1080.38
(T + 1)(2.75) = (1080.38/$1,000)
T + 1 = (1080.38/$1,000)(0.36)
(1080.38/$1,000)(0.36) -
T = 1
T = 0.0285
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: April 1, 1993 (commencement of operations) -- December 31,
1995
FORMULA: T = (VOA / P) - 1
P = initial investment ($1,000)
T= aggregate total return
VOA = ending value of account ($1080.38, which does not take sales charges into
account)
CALCULATION:
<TABLE>
<S> <C> <C>
T = (1080.38/$1,000) - 1
T = 0.0804
</TABLE>
<PAGE>
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATIONS
GT GLOBAL DOLLAR FUND
CLASS ADV SHARES
The following is the schedule for the computation of the Non-Standardized
Return quotations for the Class Adv Shares of the GT Global Dollar Fund Series
of the Registrant.
NON-STANDARDIZED RETURN
Time period covered: May 31, 1995 (commencement of operations) -- December 31,
1995
FORMULA: P(1 + T)(n) = VOA
P = initial investment ($1,000)
T = average annual total return
n = number of years (214 / 365 = 0.59)
VOA = ending value of account ($1029.25)
CALCULATION:
<TABLE>
<S> <C> <C>
$1,000 (T +
1)(0.59) = 1029.25
(T + 1)(0.59) = (1029.25/$1,000)
T + 1 = (1029.25/$1,000)(1.71)
(1029.25/$1,000)(1.71) -
T = 1
NA
</TABLE>
- --------------------------------------------------------------------------------
Time period covered: May 31, 1995 (commencement of operations) -- December 31,
1995
FORMULA: T = (VOA / P) - 1
P = initial investment ($1,000)
T= aggregate total return
VOA = ending value of account ($1029.25)
CALCULATION:
<TABLE>
<S> <C> <C>
T = (1029.25/$1,000) - 1
T = 0.0292
</TABLE>
<PAGE>
EXHIBIT 18
G.T. INVESTMENT PORTFOLIOS, INC.
MULTIPLE CLASS PLAN PURSUANT TO RULE 18f-3
G.T. Investment Portfolios, Inc. ("Company") hereby adopts this Multiple
Class Plan pursuant to Rule 18f-3 under the Investment Company Act of 1940, as
amended (the "1940 Act") on behalf of its current operating series, GT Global
Dollar Fund and any series that may commence operations in the future (referred
to hereinafter as the "Fund").
A. GENERAL DESCRIPTION OF CLASSES THAT ARE OFFERED
1. CLASS A SHARES. Class A shares of the Fund are sold to the general
public at net asset value.
Class A shares of the Fund may pay a service fee at the annualized rate of
up to 0.25% of the average daily net assets for the Fund's Class A shares. Class
A shares of the Fund may pay a distribution fee at the annualized rate of up to
0.25% of the average daily net assets for the Fund's Class A shares, less any
amounts paid by the Fund as the aforementioned service fee. Such fees are paid
pursuant to a plan of distribution adopted in accordance with Rule 12b-1 under
the 1940 Act.
Class A shares of any other GT Global Mutual Fund are subject to a
contingent deferred sales charge ("CDSC") on redemptions of shares: (i)
purchased without an initial sales charge due to a sales charge waiver for
purchases of $500,000 or more, and (ii) redeemed within one year after the date
of purchase. Purchases of Class A shares of two or more GT Global Mutual Funds
(other than GT Global Dollar Fund) may be combined for this purpose. The Class A
CDSC is equal to 1% of the lower of (i) the original purchase price, or (ii) the
net asset value of the shares at the time of redemption. This CDSC will apply to
a redemption by such an investor from any GT Global Mutual Fund, including the
Fund.
Class A shares that are redeemed will not be subject to a CDSC to the extent
that the value of such shares represents: (i) reinvestment of dividends or other
distributions, or (ii) Class A shares redeemed one year or more after their
purchase. Thus, investors purchasing shares of the Fund via an exchange of
certain Class A shares of the other GT Global Mutual Funds will be subject to a
CDSC on a redemption of those Class A shares of the Fund received in exchange
for such Class A shares of the other GT Global Mutual Fund, if such redemption
is made within one year of the original purchase date.
2. CLASS B SHARES. Class B shares of the Fund are available only through
an exchange of Class B shares of other GT Global Mutual Funds. No CDSC will be
imposed on the exchange out of Class B shares of any GT 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 that 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 GT Global Mutual Fund.
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. Class B shares
that are redeemed will not be subject to a CDSC to the extent that the value of
such shares represents: (i) reinvestment of dividends, or (ii) shares redeemed
more than six years after their purchase. The higher service and distribution
fees paid by the Class B shares of the Fund will cause that class to have a
higher expense ratio and to pay lower dividends than Class A shares.
Class B shares are subject to a service fee at the annualized rate of up to
0.25% of the average daily net assets of the Class B shares of the Fund and 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. Such fees are paid pursuant to a plan of
distribution adopted in accordance with Rule 12b-1 under the 1940 Act.
3. ADVISOR CLASS SHARES. Advisor Class shares are sold without imposition
of an initial sales charge or CDSC and are not subject to any service or
distribution fees.
Advisor Class shares of the Fund are available for purchase only by: (a)
trustees or other fiduciaries purchasing shares for employee benefit plans which
are sponsored by organizations which have at least 1,000 employees; (b) any
account with assets of at least $25,000 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
<PAGE>
annual fee of at least 0.50% on the assets in the account; (c) any account with
assets of at least $25,000 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 0.50% on the assets in the account; (d) accounts advised by one
of the companies comprising or affiliated with Liechtenstein Global Trust; and
(e) any of the companies comprising or affiliated with Liechtenstein Global
Trust.
B. EXPENSE ALLOCATIONS OF EACH CLASS
Certain expenses may be attributable to a particular Class of shares ("Class
Expenses"). Class Expenses are charged directly to the net assets of the
particular Class and, thus, are borne on a pro rata basis by the outstanding
shares of that Class.
In addition to the service and distribution fees described above, each Class
could also pay a different amount of the following other expenses:
(1) transfer agent fees identified as being attributable to a specific Class
of shares;
(2) stationery, printing, postage and delivery expenses related to preparing
and distributing materials such as shareholder reports, prospectuses and
proxy statements to current shareholders of a specific Class of shares;
(3) Blue Sky registration fees incurred by a specific Class of shares;
(4) SEC registration fees incurred by a specific Class of shares;
(5) expenses of administrative personnel and services as required to support
the shareholders of a specific Class of shares;
(6) Directors' fees or expenses incurred as a result of issues relating to a
specific Class of shares;
(7) accounting expenses relating solely to a specific Class of shares;
(8) auditors' fees, litigation expenses and legal fees and expenses relating
to a specific Class of shares; and
(9) expenses incurred in connection with shareholders meetings as a result
of issues relating to a specific Class of shares.
C. EXCHANGE PRIVILEGES
Class A shares of the Fund may be exchanged only for Class A shares of other
GT Global Mutual Funds, as listed in the Fund's Prospectus. Unless the Class A
shares of the Fund were purchased via exchange for shares of another GT Global
Mutual Fund, a sales load will apply to exchanges from the Fund into other GT
Global Mutual Funds, as set forth in the prospectuses of such Funds. Class B
shares of the Fund may be exchanged only for Class B shares of other GT Global
Mutual Funds, as listed in the Fund's Prospectus. Advisor Class shares of the
Fund may be exchanged only for Advisor Class shares of other GT Global Mutual
Funds, as listed in the Fund's Prospectus.
This exchange privilege is available only in those jurisdictions where the
sale of GT Global Mutual Fund shares to be acquired may be legally made. The
terms of the exchange privileges may be modified at any time, on sixty days'
prior written notice to shareholders.
D. ADDITIONAL INFORMATION
The prospectus for the Fund contains additional information about the
Classes and the Fund's multiple class structure. This Multiple Class Plan is
subject to the terms of the then current prospectus for the applicable Classes;
provided, however, that none of the terms set forth in any such prospectus shall
be inconsistent with the terms of the Classes contained in this Plan.
E. DATE OF EFFECTIVENESS
This Multiple Class Plan will become effective on , 1996. Before
any material amendment of this Multiple Class Plan, a majority of the Directors
of the Company, and a majority of the Directors who are not interested persons
of the Company, shall find that the plan as proposed to be adopted or amended,
including the expense allocation, is in the best interests of each class
individually and the Company as a whole.
<PAGE>
EXHIBIT 99.24(B)
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
Helge K. Lee, Peter R. Guarino and David J. Thelander, and each of them, with
full power to act without the other, his or her true and lawful attorney-in-fact
and agent, with full power of substitution and resubstitution, for him or her
and in his or her name, place and stead, in any and all capacities (until
revoked in writing) to sign any and all Post-Effective Amendments to the
Registration Statement, and to file the same, with all exhibits thereto, and
other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them,
full power and authority to do and perform each and every act and thing
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or their or his substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.
G.T. INVESTMENT PORTFOLIOS, INC.
<TABLE>
<S> <C> <C>
/s/ DAVID A. MINELLA Director, Chairman of the Board and
- ------------------------------------ President
David A. Minella June 20, 1995
/s/ Director
- ------------------------------------
C. Derek Anderson June 20, 1995
/s/ Director
- ------------------------------------
Frank S. Bayley June 20, 1995
/s/ Director
- ------------------------------------
Arthur C. Patterson June 20, 1995
/s/ Director
- ------------------------------------
Ruth H. Quigley June 20, 1995
</TABLE>
<PAGE>
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
Helge K. Lee, Peter R. Guarino and David J. Thelander, and each of them, with
full power to act without the other, his or her true and lawful attorney-in-fact
and agent, with full power of substitution and resubstitution, for him or her
and in his or her name, place and stead, in any and all capacities (until
revoked in writing) to sign any and all Post-Effective Amendments to the
Registration Statement, and to file the same, with all exhibits thereto, an
other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them,
full power and authority to do and perform each and every act and thing
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or their or his substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.
GT. INVESTMENT PORTFOLIOS, INC.
<TABLE>
<S> <C> <C>
/s/ Director, Chairman of the Board and
- ------------------------------------ President
David A. Minella June 20, 1995
/s/ C. DEREK ANDERSON Director
- ------------------------------------
C. Derek Anderson June 20, 1995
/s/ FRANK S. BAYLEY Director
- ------------------------------------
Frank S. Bayley June 20, 1995
/s/ ARTHUR C. PATTERSON Director
- ------------------------------------
Arthur C. Patterson June 20, 1995
/s/ RUTH H. QUIGLEY Director
- ------------------------------------
Ruth H. Quigley June 20, 1995
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FUND'S ANNUAL FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000355978
<NAME> G.T. INVESTMENT PORTFOLIOS, INC.
<SERIES>
<NUMBER>011
<NAME> G.T. GLOBAL DOLLAR FUND - CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 308999
<INVESTMENTS-AT-VALUE> 308999
<RECEIVABLES> 23941
<ASSETS-OTHER> 120
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 333060
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 48052
<TOTAL-LIABILITIES> 48052
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 285007
<SHARES-COMMON-STOCK> 183794
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 285007
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19720
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