<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS -- MAY 1, 1997
- --------------------------------------------------------------------------------
GT GLOBAL DOLLAR FUND ("FUND") seeks maximum current income consistent with
liquidity and conservation of capital. The Fund may invest in a wide variety of
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; U.S. and non-U.S. corporate obligations; and
instruments of U.S. and foreign banks.
There can be no assurance that the Fund will achieve its investment objective.
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.
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.
The Fund's investment manager, Chancellor LGT Asset Management, Inc. (the
"Manager") 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.
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 May 1, 1997, 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 the Fund at 50
California Street, San Francisco, California 94111, or calling (800) 824-1580.
An investment in the 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
/ / Portfolio Rebalancing Program
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
Alternative Purchase Plan................................................................. 8
Investment Objective and Policies......................................................... 9
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 Federal Income Taxation..................................................... 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.
<TABLE>
<S> <C> <C>
The Fund: The Fund is a diversified series of G.T. Investment Portfolios,
Inc.
Investment Objective: The Fund seeks maximum current income consistent with liquidity
and conservation of capital.
Principal Investments: The Fund 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: The Manager 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 $84 billion in total assets as of December 31, 1996.
The Manager and its worldwide asset management affiliates maintain
fully staffed investment offices in Frankfurt, Hong Kong, London,
New York, San Francisco, Singapore, Sydney, Tokyo and Toronto. See
"Management."
Alternative Purchase Plan: Class A or Class B shares are each subject to different expenses
and different exchange privileges.
Class A Shares: Offered at net asset value and subject to service and distribution
fees at the annualized rate of up to 0.25% of the average daily
net assets of the Fund's Class A shares.
Class B Shares: Offered at net asset value (a maximum contingent deferred sales
charge of 5% of the lesser of the shares' net asset value or the
original purchase price is imposed on certain redemptions made
within six years of date of purchase) and subject to service and
distribution fees at the annualized rate of up to 1.00% of the
average daily net assets of the Fund's Class B shares.
Class A shares are available through broker/dealers who have
Shares Available Through: entered into agreements to sell shares with the Fund's
distributor, GT Global, Inc. ("GT Global"). Shares also may be
acquired directly through GT Global or through an exchange of
Class A shares of the other GT Global Mutual Funds, which are
open-end management investment companies advised and/or
administered by the Manager. Except for investors participating in
the Portfolio Rebalancing Program, Class B shares may be obtained
only through an exchange of Class B shares of other GT Global
Mutual Funds. See "How to Invest" and "Shareholder Account
Manual."
Exchange Privileges: Shares of a class of the Fund may be exchanged for shares of the
corresponding class of other GT Global Mutual Funds. See "How to
Make Exchanges" and "Shareholder Account Manual."
Redemptions: 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."
Dividends: Dividends are declared daily and paid monthly from available net
investment income and any realized net short-term capital gain.
</TABLE>
Prospectus Page 3
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Reinvestment: Dividends are reinvested automatically 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
Other Features:
Class A Shares: Automatic Investment Plan
Systematic Withdrawal Plan
Portfolio Rebalancing Program
Class B Shares: Systematic Withdrawal Plan
Portfolio Rebalancing Program
</TABLE>
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 (1):
<TABLE>
<CAPTION>
CLASS A CLASS B
--------- ---------
<S> <C> <C>
SHAREHOLDER TRANSACTION COSTS (2):
Sales charge on purchases of shares................................................................ None None
Sales charges on reinvested distributions to shareholders.......................................... None None
Maximum contingent deferred sales charge (as a % of net asset value at time of purchase or sale,
whichever is less)............................................................................... 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 (3):
(AS A % OF AVERAGE NET ASSETS)
Investment management and administration fees (after reimbursements)............................... 0.45% 0.45%
12b-1 distribution and service fees (after waivers)................................................ 0.00% 0.75%
Other expenses (after waivers)..................................................................... 0.55% 0.55%
--------- ---------
Total Fund Operating Expenses (after reimbursements and 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 $ 56 $ 125
Class B shares
Assuming complete redemption at end of period (4)...................... 68 85 117 220
Assuming no redemption................................................. 18 55 97 220
<FN>
- ------------------
(1) THESE TABLES ARE INTENDED TO ASSIST INVESTORS IN UNDERSTANDING THE VARIOUS
COSTS AND EXPENSES ASSOCIATED WITH INVESTING IN THE FUND. 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. rules regarding investment companies. THE "HYPOTHETICAL EXAM-
PLE" 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 SEC 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.
(2) The maximum 5% contingent deferred sales charge on Class B shares applies
to redemptions during the first year after purchase. The charge generally
declines by 1% annually thereafter, reaching zero after six years.
(3) Expenses are based on the Fund's fiscal year ended December 31, 1996.
"Other expenses" include custody, transfer agent, legal, audit and other
expenses. See "Management" herein and the Statement of Additional
Information for more information. Without reimbursements or waivers,
"Investment Management and Administration Fees," "12b-1 distribution and
service fees," and "Total Fund Operating Expenses" would have been 0.50%,
0.25% and 1.30%, respectively, for Class A shares and 0.50%, 1.00% and
2.00%, respectively, for Class B shares. The Fund also offers Advisor Class
shares to certain categories of investors. See "Alternative Purchase Plan."
Advisor Class shares are not subject to 12b-1 distribution and service
fees.
(4) Assumes deduction of the maximum applicable contingent deferred sales
charge.
</TABLE>
Prospectus Page 5
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below provides condensed financial 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 year ended December 31, 1996, 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 fiscal years ended December 31, 1987 to 1991 was audited by other
auditors that served as the Fund's independent accountants for those periods.
<TABLE>
<CAPTION>
CLASS A+
----------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.044 $ 0.050 $ 0.032 $ 0.022 $ 0.028 $ 0.051 $ 0.069
Distributions from net investment
income................................. (0.044) (0.050) (0.032) (0.022) (0.028) (0.051) (0.069)
---------- ---------- ---------- ---------- ---------- ---------- ----------
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)............. 4.50% 5.08% 3.30% 2.2% 2.8% 5.1% 6.9%
Ratios and supplemental data:
Ratio of net investment income to
average net assets:
With expense waivers and reductions
(a).................................. 4.39% 4.94% 3.40% 2.17% 2.78% 5.10% 6.95%
Without expense waivers and reductions
(a).................................. 4.08% 4.66% 3.15% 1.46% 2.47% 4.90% 6.64%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 0.99% 0.97% 0.92% 1.00% 1.25% 1.25% 1.25%
Without expense waivers and reductions
(a).................................. 1.30% 1.25% 1.17% 1.72% 1.56% 1.45% 1.56%
Net assets at end of the period (in
000's)................................. $392,623 $183,761 $320,858 $87,822 $81,674 $70,295 $123,218
<FN>
- ------------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
(a) Annualized for periods of less than one year.
(b) Not annualized.
</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,
1989 1988 1987 1996 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.075 $ 0.058 $ 0.053 $ 0.037 $ 0.040 $ 0.025 $ 0.010
Distributions from net investment
income................................. (0.075) (0.058) (0.053) (0.037) (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 $ 1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investment Return (b)............. 7.6% 5.9% 5.4% 3.73% 4.29% 2.53% 1.4%
Ratios and supplemental data:
Ratio of net investment income to
average net
assets:
With expense waivers and reductions
(a).................................. 7.60% 5.72% 5.24% 3.64% 4.19% 2.65% 1.42%
Without expense waivers and reductions
(a).................................. 7.17% --% 5.09% 3.33% 3.91% 2.40% 0.86%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 1.19% 1.03% 0.83% 1.74% 1.72% 1.67% 1.75%
Without expense waivers and reductions
(a).................................. 1.62% --% 0.98% 2.05% 2.00% 1.92% 2.31%
Net assets at end of the period (in
000's)................................. $13,143 $11,628 $11,791 $128,308 $99,151 $109,936 $3,478
<FN>
- ------------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
(a) Annualized for periods of less than one year.
(b) Not annualized.
</TABLE>
Prospectus Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
ALTERNATIVE PURCHASE PLAN
- --------------------------------------------------------------------------------
DIFFERENCES BETWEEN THE CLASSES. The primary difference 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 are available for purchase directly
by investors. Except for investors participating in the Portfolio Rebalancing
Program, Class B shares may be purchased only through an exchange of Class B
shares of other GT Global Mutual Funds.
Dividends paid by the Fund with respect to its Class A and Class B shares are
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 through an exchange of Class A 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 through 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 to investors
participating in the Portfolio Rebalancing Program or through an exchange of
Class B shares of other GT Global Mutual Funds. Class B shares of the Fund may
not be purchased under any circumstances for a Savings Incentive Match Plan for
Employees of Small Employers Individual Retirement Accounts ("SIMPLE IRAs") for
which a designated financial institution was selected by the employer on Form
5305-SIMPLE.
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
Federal
Prospectus Page 8
<PAGE>
GT GLOBAL DOLLAR FUND
Income Taxation" and "Calculation of Net Asset Value" for other differences
between these two classes.
ADVISOR CLASS SHARES. Advisor Class shares are offered through a separate
prospectus to (a) trustees or other fiduciaries purchasing shares for employee
benefit plans that are sponsored by organizations that have at least 1,000
employees; (b) any account with assets of at least $10,000 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 $10,000 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 composing or affiliated with Liechtenstein Global Trust; and (e) any
of the companies composing or affiliated with Liechtenstein Global Trust.
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
AND POLICIES
- --------------------------------------------------------------------------------
The Fund's investment objective 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 Investment Company Act of 1940, as amended (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 the Manager to present minimal credit risks in
accordance with procedures established by the Company's Board of Directors (the
"Board"). 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 the Manager
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 the Manager 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 Statement of Additional Information.
PERMITTED INVESTMENTS. 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
Prospectus Page 9
<PAGE>
GT GLOBAL DOLLAR FUND
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 or Prime-1 by Moody's or, if not rated,
determined by the Manager 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. These instruments may include corporate bonds
and notes (corporate obligations that mature, or that may be redeemed, in
one year or less). These corporate obligations include variable rate master
notes, which are 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. A repurchase
agreement is a transaction 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 the Manager to present minimal credit risks in accordance with guidelines
approved by the Board. The Manager 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 net
assets would be invested in such repurchase agreements and other illiquid
securities.
INVESTMENT TECHNIQUES. In managing the Fund, the Manager 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 the Manager'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. The
Manager 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.
RISKS AND OTHER CONSIDERATIONS. 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 net
sale of its shares likely will be invested in instruments producing lower yields
than the balance of the Fund's portfolio, thereby reducing its 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
Prospectus Page 10
<PAGE>
GT GLOBAL DOLLAR FUND
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.
VARIABLE AND FLOATING RATE SECURITIES. The Fund may purchase variable and
floating rate securities with remaining maturities in excess of 13 months. Such
securities must comply with conditions established by the SEC under which they
may be considered to have remaining maturities of 13 months or less. The yield
of these securities varies in relation to changes in specific money market rates
such as the prime rate. These changes are reflected in adjustments to the yields
of the variable and floating rate securities, and different securities may have
different adjustment rates. To the extent that the Fund invests in such variable
and floating rate securities, it is the Manager's view that the Fund may be able
to take advantage of the higher yield that is usually paid on longer-term
securities. The Manager 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 its outstanding voting securities. A "majority of the Fund's outstanding
voting securities" means the lesser of (i) 67% of its shares represented at a
meeting at which more than 50% of the outstanding shares are represented, and
(ii) more than 50% of its outstanding shares. In addition, the Fund has adopted
certain investment limitations that 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 and may be changed by vote of the Board without shareholder
approval.
On December 29, 1992, the shareholders of the Fund approved modifications to the
Fund's investment policies and limitations that authorize the Board to effect a
change in the operating structure of the Fund, so that it 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.
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,
except with respect to investors participating in the Portfolio Rebalancing
Program described below. 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.
All purchase orders will be executed at the public offering price next
determined after the purchase order is received. 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 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. In particular, the Fund and GT Global
may reject purchase orders or exchanges by investors who appear to follow, in
the Manager's judgement, a market-timing strategy or otherwise engage in
excessive trading. See "How to Make Exchanges -- Limitations on Purchase Orders
and Exchanges."
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 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 an application.
Investors also may purchase shares of the Fund through GT Global by bank wire.
Bank wire purchases will be effected at the net asset value next determined
after the bank wire is received. A wire
Prospectus Page 12
<PAGE>
GT GLOBAL DOLLAR FUND
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 telephone 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.
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.
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 or more 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.
PORTFOLIO REBALANCING PROGRAM. The GT Global Portfolio Rebalancing Program
("Program") permits eligible shareholders to establish and maintain an
allocation across a range of GT Global Mutual Funds. The Program automatically
rebalances holdings of GT Global Mutual Funds to the established allocation on a
periodic basis. Under the Program, a shareholder may predesignate, on a
percentage basis, how the total value of his or her holdings in a minimum of
two, and a maximum of ten, GT Global Mutual Funds ("Personal Portfolio") is to
be rebalanced on a monthly, quarterly, semiannual, or annual basis.
Rebalancing under the Program will be effected through the exchange of shares of
one or more GT Global Mutual Funds in the shareholder's Personal Portfolio for
shares of the same class(es) of one or more other GT Global Mutual Funds in the
shareholder's Personal Portfolio. See "How to Make Exchanges." If shares of the
Funds in a shareholder's Personal Portfolio have appreciated during a
rebalancing period, the Program will result in shares of Fund(s) that have
appreciated most during the period being exchanged for shares of Fund(s) that
have appreciated least. SUCH EXCHANGES ARE NOT TAX-FREE AND MAY RESULT IN A
SHAREHOLDER'S REALIZING A GAIN OR LOSS, AS THE CASE MAY BE, FOR TAX PURPOSES.
See "Dividends and Federal Income Taxation." Participation in the Program does
not assure that a shareholder will profit from purchases under the Program nor
does it prevent or lessen losses in a declining market.
The Program will automatically rebalance the shareholder's Personal Portfolio on
the 28th day of the last month of the period chosen (or the immediately
preceding business day if the 28th is not a business day), subject to any
limitations below. The Program will not execute an exchange if the variance in a
shareholder's Personal Portfolio for a particular Fund would be 2% or less. In
predesignating percentages, shareholders must use whole percentages and totals
must equal 100%. Shareholders participating in the Program may not request
issuance of physical certificates representing a Fund's shares. Exchanges made
under the Program are not subject to the four free exchanges per year
limitation. The Funds and GT Global reserve the right to modify, suspend, or
terminate the Program at any time on 60 days' prior written notice to
shareholders. A request to participate in the Program must be received in good
order at least five business days prior to the next rebalancing date. Once a
shareholder establishes the Program for his or her Personal Portfolio, a
shareholder cannot cancel or change which rebalancing frequency, which Funds or
what allocation percentages are assigned to the Program, unless canceled or
changed in writing and received by the Transfer Agent in good order at least
five business days prior to the rebalancing date. Certain broker/ dealers may
charge a fee for establishing accounts relating to the Program. Investors should
contact their broker/dealers or GT Global for more information.
Prospectus Page 13
<PAGE>
GT GLOBAL DOLLAR FUND
HOW TO MAKE EXCHANGES
- --------------------------------------------------------------------------------
Fund shares may be exchanged for shares of the same class of any of the other GT
Global Mutual Funds, based on their respective net asset values, provided that
the registration remains identical. 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. EXCHANGES ARE
NOT TAX-FREE AND MAY RESULT IN A SHAREHOLDER REALIZING A GAIN OR LOSS, AS THE
CASE MAY BE, FOR TAX PURPOSES. See "Dividends and Federal Income Taxation." In
addition to the Fund, the GT Global Mutual Funds currently include:
-- GTGLOBAL AMERICA SMALL CAP GROWTH FUND
-- GT GLOBAL AMERICA MID 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
Up to four exchanges each year may be made without 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. The terms of the exchange offer may be modified at any
time, on 60 days' prior written notice.
An investor interested in making an exchange should contact 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 broker/dealer 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 will 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 prior to acting upon
instructions received by telephone, including requiring some form of personal
identification, 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 investor's
broker/dealer or to the Transfer Agent at the address set forth in the
Shareholder Account Manual.
LIMITATIONS ON PURCHASE ORDERS AND EXCHANGES. The GT Global Mutual Funds are not
intended to serve as vehicles for frequent trading in response to short-term
fluctuations in the market. Due to the disruptive effect that market-timing
investment strategies and excessive trading can have on efficient portfolio
management, each GT Global Mutual Fund and GT Global reserves the right to
refuse purchase orders and exchanges by any person or group, if, in the
Manager's judgment, such person or group was following a market-timing strategy
or was otherwise engaging in excessive trading.
In addition, each GT Global Mutual Fund and GT Global reserves the right to
refuse purchase orders and exchanges by any person or group if, in the Manager's
judgment, the Fund would not be able to invest the money effectively in
accordance with that Fund's investment objective and policies or would otherwise
potentially be adversely affected. Although a GT Global Mutual Fund will attempt
to give investors prior notice whenever it is reasonably able to do so, it may
impose the above restrictions at any time.
Finally, as described above, the Fund and GT Global reserve the right to reject
any purchase order.
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. Except for investors
participating in the Portfolio Rebalancing Program, 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, 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.
<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 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.
CONTINGENT DEFERRED SALES CHARGE WAIVERS. The contingent deferred sales charge
will be waived
Prospectus Page 15
<PAGE>
GT GLOBAL DOLLAR FUND
for (1) exchanges, as described below; (2) redemptions in connection with the
Fund's systematic withdrawal plan not in excess of 12% of the value of the
account annually; (3) total or partial redemptions made within one year
following the death or disability of a shareholder; (4) minimum required
distributions made in connection with a GT Global IRA, self-employed individual
retirement plan, Code Section 403(b)(7) custodial account or other retirement
plan following attainment of age 70 1/2; (5) total or partial redemptions
resulting from a distribution following retirement in the case of a
tax-qualified employer-sponsored retirement plan; (6) 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; (7) a
one-time reinvestment in Class B shares of the Fund within 180 days of a prior
redemption; (8) redemptions pursuant to the Fund's right to liquidate a
shareholder's account involuntarily; (9) 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; (10) redemptions made in connection with
participant-directed exchanges between options in an employer-sponsored benefit
plan; (11) redemptions made for the purpose of providing cash to fund a loan to
a participant in a tax-qualified retirement plan; (12) 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; (13) redemptions made in connection with
a distribution from any retirement plan or account that involves the return of
an excess deferral amount pursuant to Sections 401(k)(8) or 402(g)(2) of the
Code or the return of excess aggregate contributions pursuant to Section
401(m)(6) of the Code; (14) 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 (15) 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. If the shares are held in the broker/dealer's "street name," the
redemption must be made through the broker/dealer. Broker/ dealers may honor a
redemption request either by repurchasing shares from a redeeming shareholder at
the 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 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. 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
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. 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 will 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 prior to acting
upon instructions received by telephone, including requiring some form of
personal identification, 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.
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 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
Prospectus Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
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).
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," "How to Redeem Shares" and "Dividends and Federal Income
Taxation--Taxes" 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 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, class of shares, 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 should 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, however, 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 its 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 calculates its net asset value as of the close of
regular trading on the NYSE (currently 4:00 p.m. Eastern time, unless weather,
equipment failure or other factors contribute to an earlier closing time) each
Business Day. 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 Board.
- --------------------------------------------------------------------------------
DIVIDENDS AND
FEDERAL INCOME TAXATION
- --------------------------------------------------------------------------------
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
Prospectus Page 20
<PAGE>
GT GLOBAL DOLLAR FUND
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 its 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 income 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 Board 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 Chancellor LGT
Asset Management, Inc. (the "Manager") 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 the Manager 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 Manager 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% and 1.75% of the average daily net assets of the Fund's Class A and Class
B shares, respectively. This undertaking may be changed or eliminated in the
future.
The Manager also serves as the Fund's pricing and accounting agent. For these
services, the Manager receives a fee at an annual rate 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.
The Manager provides investment management and/or administration services, to
the GT Global Mutual Funds. The Manager 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 the Manager are located at 50 California Street, 27th Floor, San
Francisco, CA 94111 and 1166 Avenue of the Americas, New York, NY 10036.
The Manager and its worldwide affiliates, including LGT Bank in Liechtenstein,
formerly Bank in Liechtenstein, compose 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 a
Prospectus Page 21
<PAGE>
GT GLOBAL DOLLAR FUND
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, 1996, the Manager and its worldwide asset management
affiliates managed approximately $62 billion. In the United States, as of
December 31, 1996, the Manager managed or administered approximately $10 billion
of GT Global Mutual Funds. As of December 31, 1996, assets entrusted to
Liechtenstein Global Trust totaled approximately $84 billion.
On October 31, 1996, Chancellor Capital Management, Inc. ("Chancellor Capital")
merged with LGT Asset Management, Inc. and the resulting entity was named
Chancellor LGT Asset Management, Inc. As of September 30, 1996, Chancellor
Capital and its affiliates, based in New York, were the 15th largest independent
investment manager in the United States with approximately $33 billion in assets
under management. Chancellor Capital specialized in public and private U.S.
equity and bond portfolio management for over 300 U.S. institutional clients.
In addition to the investment resources of its San Francisco and New York
offices, the Manager draws upon the expertise, personnel, data and systems of
other offices of Liechtenstein Global Trust, including investment offices in
Frankfurt, Hong Kong, London, Singapore, Sydney, Tokyo, and Toronto. In managing
the GT Global Mutual Funds, the Manager employs a team approach, taking
advantage of its investment resources around the world in seeking to achieve
each Fund's investment objective. Many of the GT Global Mutual Funds' portfolio
managers 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>
John W. Geissinger Portfolio Manager since Mr. Geissinger has been a Senior Portfolio Manager and Head
New York 1997 of Investment Grade Fixed Income Group for the Manager
since 1993. Prior thereto, Mr. Geissinger was a Portfolio
Manager at the Putnam Companies from 1987 until 1993.
Heidi Koch Portfolio Manager since Ms. Koch has been a Portfolio Manager for the Manager since
New York 1997 1991.
</TABLE>
------------------------
Prior to October 31, 1996, Mr. Geissinger and Ms. Koch were employees of
Chancellor Capital.
In placing orders for the Fund's portfolio transactions, the Manager seeks to
obtain the best net results. Consistent with its obligation to obtain the best
net results, the Manager 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 of the Fund's Class A
and Class B shares. Like the Manager, GT Global is a subsidiary of Liechtenstein
Global Trust with offices at 50 California Street, 27th Floor, San Francisco,
California 94111.
GT Global, at its own expense, may provide promotional incentives to
broker/dealers that sell shares of the Fund and/or shares of the other GT Global
Mutual Funds. In some instances additional compensation or promotional
incentives may be offered to broker/dealers that have sold or may sell
significant amounts of shares during specified periods of time. Such
compensation and incentives may include, but are not limited to, cash,
merchandise, trips and financial assistance to broker/dealers in connection with
preapproved conferences or seminars, sales or training programs for invited
sales personnel, payment for travel expenses (including meals and lodging)
incurred by sales personnel and members of their families or other invited
guests to various locations for such seminars or training programs, seminars for
the public, advertising and sales campaigns regarding one or more of the GT
Global Mutual Funds, and/ or other events sponsored by the broker/dealers. In
addition, GT Global makes ongoing payments to brokerage firms, financial
institutions (including
Prospectus Page 22
<PAGE>
GT GLOBAL DOLLAR FUND
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 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 is reported after the end of each fiscal
year on Form 1099-DIV. Under certain circumstances, duplicate mailings of the
foregoing 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. From time to time, the Board of Directors may, at its discretion,
establish additional funds, each corresponding to a distinct
Prospectus Page 23
<PAGE>
GT GLOBAL DOLLAR FUND
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 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 one-, 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
Prospectus Page 24
<PAGE>
GT GLOBAL DOLLAR FUND
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
reinvestment of all dividends and capital gain distributions.
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.
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 the Manager 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 Company. Kirkpatrick
& Lockhart LLP also acts as counsel to the Manager, GT Global and the Transfer
Agent 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
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 29
<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 THESE FUNDS,
INCLUDING FEES, EXPENSES AND THE RISKS OF GLOBAL AND EMERGING MARKET
INVESTING AS WELL AS THE RISKS OF INVESTING IN RELATED INDUSTRIES, 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 MID CAP GROWTH FUND
Concentrates on medium-sized companies in
the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government 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
GT GLOBAL FLOATING RATE FUND
Invests in senior secured floating rate loans and debt securities
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,
CHANCELLOR 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.
DOLPR704016MC
<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
May 1, 1997
- --------------------------------------------------------------------------------
GT Global Dollar Fund (the "Fund") is a diversified series of G.T. Investment
Portfolios, Inc. (the "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
May 1, 1997, 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.
Chancellor LGT Asset Management, Inc. (the "Manager") 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 the "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 (the "Board") and the Manager will review the situation and
take appropriate action in accordance with procedures adopted by the Board
pursuant to Rule 2a-7 under the Investment Company Act of 1940, as amended (the
"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
A repurchase agreement is a transaction 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 intends to enter into
repurchase agreements only with banks and dealers believed by the Manager to
present minimal credit risks in accordance with guidelines established by the
Board. The Manager will review and monitor the creditworthiness of such
institutions under the Board's general supervision.
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 such Code that would allow the immediate resale of such collateral. There
is no limitation on the amount of the Fund's assets that may be subject to
repurchase agreements at any given time. The Fund will not enter into a
repurchase agreement with a maturity of more than seven days if, as a result,
more than 10% of the value of its net assets would be invested in such
repurchase agreements and other illiquid investments.
WHEN-ISSUED 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 net 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 the Manager has determined to
be liquid pursuant to guidelines established by the Board. Commercial paper
issues in which the Fund may invest include securities issued by major
corporations without registration under the Securities Act of 1933, as amended
(the "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.
Not all restricted securities are illiquid. 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 have
developed as a result of Rule 144A, providing both readily ascertainable values
for restricted securities and the ability to liquidate an investment to satisfy
share redemption orders. Such markets 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
Rule 144A-eligible 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 favorable prices.
With respect to liquidity determinations generally, the Board has the ultimate
responsibility for determining whether specific securities, including restricted
securities pursuant to Rule 144A under the 1933 Act, are liquid or illiquid. The
Board has delegated the function of making day-to-day determinations of
liquidity to the Manager, in accordance with procedures approved by the Board.
The Manager takes into account a number of factors in reaching liquidity
decisions, including (1) the frequency of trading in 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). The Manager monitors the liquidity of securities
held by the Fund and periodically reports thereon to the Board.
Statement of Additional Information Page 3
<PAGE>
GT GLOBAL DOLLAR FUND
INVESTMENT LIMITATIONS
- --------------------------------------------------------------------------------
The Fund has adopted the following investment limitations as fundamental
policies that may not be changed without approval by the affirmative vote 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 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 limitation of the Fund, which is not fundamental and
may be changed by vote of the Board without shareholder approval to the extent
consistent with regulatory requirements, provides that the Fund may not invest
more than 10% of its net 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>
William J. Guilfoyle*, 38 Director, LGT Asset Management, Inc. since 1996; Director, G.T. Insurance Agency ("G.T.
Director, Chairman of the Board and Insurance") since 1996; Director, Liechtenstein Global Trust AG (holding company of the
President various international LGT companies) since 1995; President, GT Global since 1995;
50 California Street President and Chief Executive Officer, G.T. Insurance since 1995; Senior Vice President
San Francisco, CA 94111 and Director, Sales and Marketing, G.T. Insurance from April 1995 to November 1995; Vice
President and Director of Marketing, GT Global from 1987 to 1995; Senior Vice President,
Retail Marketing, G.T. Insurance from 1993 to 1995; and Vice President, G.T. Insurance
from 1992 to 1993. Mr. Guilfoyle also is a director or trustee of each of the other
investment companies registered under the 1940 Act that is managed or administered by the
Manager.
C. Derek Anderson, 55 Chief Executive Officer, Anderson Capital Management, Inc.; Chairman and Chief Executive
Director Officer, Plantagenet Holdings, Ltd. from 1991 to present; Director, Munsingwear, Inc.; and
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 the Manager.
Frank S. Bayley, 57 Partner, Baker & McKenzie (a law firm); Director and Chairman, C.D. Stimson Company (a
Director private investment company). Mr. Bayley also is a director or trustee or each of the other
Two Embarcadero Center investment companies registered under the 1940 Act that is managed or administered by the
Suite 2400 Manager.
San Francisco, CA 94111
Arthur C. Patterson, 53 Managing Partner, Accel Partners (a venture capital firm). He also serves as a director of
Director various computing and software companies. Mr. Patterson also is a director or trustee of
One Embarcadero Center each of the other investment companies registered under the 1940 Act that is managed or
Suite 3820 administered by the Manager.
San Francisco, CA 94111
Ruth H. Quigley, 61 Private investor; and President, Quigley Friedlander & Co., Inc. (a financial advisory
Director services firm) from 1984 to 1986. Ms. Quigley also is a director or trustee or each of the
1055 California Street other investment companies registered under the 1940 Act that is managed or administered
San Francisco, CA 94108 by the Manager.
Robert G. Wade, Jr.*, 69 Consultant to the Manager; Chairman of the Board of Chancellor Capital Management, Inc.
Director from January 1995 to October 1996; President, Chief Executive Officer and Chairman of the
1166 Avenue of the Americas Board of Chancellor Capital Management, Inc. from 1988 to January 1995.
New York, NY 10036
</TABLE>
- ------------------
* Mr. Guilfoyle and Mr. Wade are "interested persons" of the Company as
defined by the 1940 Act due to their 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, 38 Chief Information Officer for the Manager since October 1996; President, GT Services since
Vice President and Chief 1995; Senior Vice President -- Finance and Administration, GT Global, GT Services and G.T.
Financial Officer Insurance from 1994 to 1995; Senior Vice President -- Finance and Administration, LGT
50 California Street Asset Management from 1994 to October 1996; Vice President -- Finance, LGT Asset
San Francisco, CA 94111 Management, GT Global and GT Services from 1990 to 1994; Vice President -- Finance, G.T.
Insurance from 1992 to 1994; and Director, LGT Asset Managerment, GT Global and GT
Services since 1991.
Kenneth W. Chancey, 51 Vice President -- Mutual Fund Accounting, the Manager since 1992; and Vice President,
Vice President and Putnam Fiduciary Trust Company from 1989 to 1992.
Principal Accounting Officer
50 California Street
San Francisco, CA 94111
Helge K. Lee, 50 Executive Vice President, Asset Management Division, Liechtenstein Global Trust since
Vice President and Secretary October 1996; Senior Vice President, LGT Asset Management, GT Global, GT Services and G.T.
50 California Street Insurance from February 1996 to October 1996; Vice President, the Manager, LGT Asset
San Francisco, CA 94111 Management, GT Global, GT Services and G.T. Insurance from May 1994 to February 1996;
General Counsel, the Manager, LGT Asset Management, GT Global, GT Services and G.T.
Insurance from May 1994 to October 1996; Secretary, the Manager, LGT Asset Management, GT
Global, GT Services and G.T. Insurance from May 1994 to October 1996; Senior Vice
President, General Counsel and Secretary, Strong/ Corneliuson Management, Inc.; and
Secretary, each of the Strong Funds from October 1991 to May 1994.
</TABLE>
------------------------
The Board of Directors has a Nominating and Audit Committee, comprised 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., G.T. Investment Portfolios, Inc., GT Global Floating
Rate Fund, Inc. and G.T. Global Developing Markets Fund, Inc. and a Trustee and
Officer of G.T. Global Growth Series, G.T. Global Eastern Europe Fund, G.T.
Global Variable Investment Trust, G.T. Global Variable Investment Series, G.T.
Global High Income Portfolio, Growth Portfolio and Global Investment Portfolio,
which also are registered investment companies managed by the Manager. Each
Director and Officer serves in total as a Director and or Trustee and Officer,
respectively, of 12 registered investment companies with 41 series managed or
administered by the Manager. The Company pays each Director who is not a
director, officer or employee of the Manager 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, 1996, Mr. Anderson, Mr. Bayley, Mr. Patterson and
Ms. Quigley, who are not directors, officers or employees of the Manager or any
affiliated company, received total compensation of $3,400, $3,400, $3,100 and
$3,400, respectively, from the Company for their services as Directors. For the
fiscal year ended December 31, 1996, Mr. Anderson, Mr. Bayley, Mr. Patterson and
Ms. Quigley received total compensation of $87,600, $87,600, $80,100 and
$87,600, respectively, from the investment companies managed or administered by
the Manager 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 April 1, 1997, the Directors and Officers and their
families as a group owned in the aggregate beneficially or of record less than
1% of the outstanding shares of the Fund.
Statement of Additional Information Page 6
<PAGE>
GT GLOBAL DOLLAR FUND
MANAGEMENT
- --------------------------------------------------------------------------------
INVESTMENT MANAGEMENT AND ADMINISTRATION SERVICES
The Manager serves as the Fund's investment manager and administrator under an
Investment Management and Administration Contract between the Company and the
Manager ("Management Contract"). The Manager serves as Admistrator to the Fund
under an administration contract between the Company and the Manager
("Administration Contract"). The Administration Contract will not be deemed an
advisory contract, as defined under the 1940 Act. As investment manager and
administrator, the Manager makes all investment decisions for the Fund and, as
administrator, administers the Fund's affairs. Among other things, the Manager
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 the Manager
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 may be renewed for one-year terms with respect to the
Fund, provided that any such renewal has been specifically approved at least
annually by: (i) the Board, 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 the Manager may terminate the Management Contract without penalty
upon sixty days' written notice to the other party. The Management Contract
terminates automatically in the event of its assignment (as defined in the 1940
Act).
For the fiscal years ended December 31, 1996, 1995 and 1994, the Fund paid
investment management and administration fees to the Manager in the amounts of
$1,808,976, $1,665,299 and $1,406,615, respectively. During the fiscal year
ended December 31, 1996, the Manager reimbursed the Fund for a portion of its
investment management and administration fees in the amount of $173,045. No such
reimbursements were made during the fiscal years ended December 31, 1995 and
1994.
DISTRIBUTION SERVICES
The Fund's Class A and Class B shares are offered continuously 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 Class A and Class B shares of the Fund in accordance with
Rule 12b-1 under the 1940 Act (each a "Class A Plan" or "Class B Plan,"
respectively, and collectively, the "Plans"). The rate of payment by the Fund
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
affected class. All expenses for which GT Global is reimbursed under a Class A
Plan will have been incurred within one year of such reimbursement. For the
fiscal year ended December 31, 1996, the Fund made payments to GT Global under
the Class A Plan and Class B Plan in the amounts of $0 and $776,713,
respectively. During the fiscal year ended December 31, 1996, GT Global waived
payments under the Class A Plan and Class B Plan in the amounts of $629,910 and
$258,900, respectively.
In approving the Plans, the Directors determined that the adoption of 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, including a
majority of Directors who are not interested persons of the Company (as defined
in the 1940 Act) and who have no direct or indirect financial interests in the
operation of the Plans, or in any agreement related thereto.
Each Plan requires that, at least quarterly, the Directors 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
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
Statement of Additional Information Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
payable with respect to redemption of Class B shares. For the fiscal years ended
December 31, 1996, 1995 and 1994, GT Global collected contingent deferred sales
charges in the amount of $968,357, $1,333,734 and $602,389, respectively.
TRANSFER AGENCY AND ACCOUNTING AGENCY SERVICES
The 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. The Manager also serves as the Fund's pricing and accounting agent.
For the fiscal years ended December 31, 1996 and 1995, the accounting services
fees for the Fund were $90,682 and $34,482, respectively.
EXPENSES OF THE FUND
The Fund pays all expenses not assumed by the Manager, GT Global and other
agents. These expenses include, in addition to the advisory, administration,
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. 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 service 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, if
any.
TAXES -- GENERAL
In order to continue to qualify for treatment as a regulated investment company
under the Internal Revenue Code of 1986 (the "Code"), 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
Statement of Additional Information Page 8
<PAGE>
GT GLOBAL DOLLAR FUND
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 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 tax status of
dividends paid by the Fund to shareholders will be reported after the end of
each fiscal year on Form 1099-DIV.
PAYMENT AND TERMS OF OFFERING
Payment for Class A and Class B shares of the Fund 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 either class of 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.
Statement of Additional Information Page 9
<PAGE>
GT GLOBAL DOLLAR FUND
AUTOMATIC INVESTMENT PLAN
To establish participation in the Fund's 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
provided at the back of the Fund's Prospectus. Provided 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 or a stop payment order or if 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 thirty 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 any day Monday through Friday on which the New York
Stock Exchange ("NYSE") is open for business ("Business Day"), 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)
Class A or Class B shares of a Fund may be purchased as the underlying
investment for an IRA meeting the requirements of section 408(a) of the Code.
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 sixty days' prior
written notice to the shareholders of such Fund and is available only in states
where the exchange may be made legally. 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 upon request directly to the shareholder's predesignated account at
a domestic bank or savings institution if the 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 thirty days' written
notice.
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
Statement of Additional Information Page 10
<PAGE>
GT GLOBAL DOLLAR FUND
closings, or 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 owned by them or in fairly determining the
value of its assets, or (3) as the SEC may otherwise permit.
SYSTEMATIC WITHDRAWAL PLAN
Shareholders owning Class A or Class B 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 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. Certificates, if any, for the shares being redeemed must
be held by the Transfer Agent. 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 Board, 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 would be valued at the same value assigned to them in computing
the net asset value per share. Shareholders receiving such securities would
incur brokerage costs in selling any such securities so received.
- --------------------------------------------------------------------------------
VALUATION OF FUND SHARES
- --------------------------------------------------------------------------------
As described in the Prospectus, the Fund's net asset value per share for each
class of shares is determined each Business Day as of the close of regular
trading on the 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 certain days relating to the
following holidays: (i) New Years Day, Presidents' Day, Good Friday, Memorial
Day, July 4th, Labor Day, Thanksgiving Day and Christmas Day.
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 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
Statement of Additional Information Page 11
<PAGE>
GT GLOBAL DOLLAR FUND
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 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, 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 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 Board, the Manager 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, the Manager
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. Although the Manager
generally seeks reasonably competitive spreads, payment of the lowest spread is
not necessarily consistent with the best net results. 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
the Manager 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 the Manager
believes that coordination and the ability to participate in volume transactions
will be beneficial to the Fund.
Under a policy adopted by the Board, and subject to the policy of obtaining the
best net results, the Manager may consider a broker/dealer's sale of the shares
of the Fund and the other funds for which the Manager 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 the Manager
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, 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 Asset
Management Ltd., formerly G.T. Management (Japan) Ltd., in Tokyo; LGT Asset
Management Pte. Ltd., formerly G.T. Management (Singapore) PTE Ltd., in
Singapore; LGT Asset Management Ltd., formerly G.T. Management (Australia) Ltd.,
in Sydney; and LGT Asset Management GmbH, formerly BIL Asset Management GmbH, 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's financial statements, 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 that firm as experts in accounting and auditing.
USE OF NAME
The Manager has granted the Company the right to use the "GT" and "GT Global"
names 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 the Manager, under certain
conditions, the use of any other names it might assume in the future, with
respect to any other investment company sponsored by the Manager.
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.
The Fund calculates its yield for its shares daily, based upon the seven days
ending on the day of the calculation, called the "base period." The yield is
computed by determining the net change in the value of a hypothetical account
with a balance of one share at the beginning of the base period, with the net
change, excluding capital changes, but including the value of any additional
shares purchased with dividends earned from the original one share and all
dividends declared on the original and any purchased shares; dividing the net
change in the account's value by the value of the account at the beginning of
the base period to determine the base period return; and multiplying the base
period return by (365/7). The Fund's effective yield is computed by compounding
the unannualized base period return by adding 1 to the base period return;
raising the sum to the 365/7th power; and subtracting 1 from the result.
For the seven-day period ended December 31, 1996, the Fund's Class A share yield
was 4.49% and effective yield was 4.59%. 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, 1996:......................... $1.000861095
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000861095
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000861095
Seven-day yield = $.000861095 x 365/7 = 4.49%
Effective yield** = [1 + .000861095] 365/7 -1 = 4.59%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
For the seven-day period ended December 31, 1996, the Fund's Class B share yield
was 3.74% and effective yield was 3.81%. 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, 1996:......................... $1.000717260
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000717260
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000717260
Seven-day yield = $.000717260 x 365/7 = 3.74%
Effective yield** = [1 + .000717260] 365/7 -1 = 3.81%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
Statement of Additional Information Page 14
<PAGE>
GT GLOBAL DOLLAR FUND
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, 1996, were as follows:
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended December 31, 1996..................................................................... 4.50%
Five years ended December 31, 1996............................................................... 3.57%
Ten years ended December 31, 1996................................................................ 4.93%
</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, 1996..................................................................... -1.27%
April 1, 1993 (commencement of operations) through December 31, 1996............................. 2.34
</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
annualized total returns, at December 31, 1996, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------------------- -------------------------------
<S> <C>
Year ended December 31, 1996................................................................. 4.50%
Five years ended December 31, 1996........................................................... 3.57%
Ten years ended December 31, 1996............................................................ 4.93%
</TABLE>
The Fund's Non-Standardized Return for its Class A shares, stated as aggregate
total return, at December 31, 1996, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
September 16, 1985 (commencement of operations) through December 31, 1996.................... 74.70%
</TABLE>
The Fund's Non-Standardized Return for its Class B shares, stated as average
annualized total returns, at December 31, 1996, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
Year ended December 31, 1996................................................................... 3.73%
April 1, 1993 (commercement of operations) through December 31, 1996........................... 3.08%
</TABLE>
Statement of Additional Information Page 15
<PAGE>
GT GLOBAL DOLLAR FUND
The Fund's Non-Standardized Return for its Class B shares, stated as aggregate
total return (reflecting deduction of the applicable contingent deferred sales
charge), at December 31, 1996, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 (commencement of operations) through December 31, 1996......................... 9.07%
</TABLE>
The Fund's Non-Standardized Return for its Class B shares, stated as aggregate
total return (not reflecting deduction of the applicable contingent deferred
sales charge), at December 31, 1996, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 (commencement of operations) through December 31, 1996......................... 12.07%
</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 current or past yield or total return figures should not be
considered representative of what an investment in the Fund may earn in any
future period. These factors and possible differences in the methods used in
calculating investment results should be considered when comparing the Fund's
investment results with those published for other investment companies and other
investment vehicles. 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 in advertisements, sales literature
and reports furnished to present or prospective shareholders 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. ("Moody's") or BBB by Standard and Poor's Ratings Group ("S&P"), or, in
the case of nonrated bonds, BBB by Fitch Investors Service ("Fitch")
(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). There is inflation risk which does
not affect a security's value but its purchasing power, i.e. the risk of
changing price levels in the economy that affects security prices or the
price of goods and services.
(5) Data and mutual fund rankings published or prepared by Lipper
Analytical Data Services, Inc. ("Lipper"), CDA/Wiesenberger Investment
Company Service ("CDA/Wiesenberger"), Morningstar Inc. ("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 outside of such peer group. Lipper generally ranks funds on the basis of
total return, assuming reinvestment of distributions, but does not take
sales charges or redemption fees into consideration, and is prepared without
regard to tax consequences. In addition to the mutual fund rankings, the
Fund's performance may be compared to mutual fund performance indices
prepared by Lipper. 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.
Statement of Additional Information Page 16
<PAGE>
GT GLOBAL DOLLAR FUND
(6) Bear Stearns Foreign Bond Index, which provides simple average
returns for individual countries and gross national product ("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 international financial and economic data.
(12) International Financial Statistics, which is produced by the
International Monetary Fund.
(13) Various publications and annual reports, produced by the World Bank
and its affiliates.
(14) Various publications from the International Bank for Reconstruction
and Development.
(15) Various publications including ratings agencies such as Moody's, S&P
and Fitch.
(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
various financial organizations, such 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, 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 Money Magazine, Mutual Fund 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 in the future.
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 and sales materials, GT Global may make reference to 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.
Statement of Additional Information Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
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.
The 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 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. In sales material and advertisements, the Fund may
also discuss these accounts and plans, which include:
INDIVIDUAL RETIREMENT ACCOUNTS (IRAS): If you have earned income from employment
(including self-employment) you can contribute each year to an IRA up to the
lesser of (1) $2,000 for yourself or $4,000 for you and your spouse, regardless
of whether your spouse is employed, or (2) 100% of compensation. Some
individuals may be able to take an income tax deduction for the contribution.
Regular contributions may not be made for the year you become 70 1/2 or
thereafter. Please consult your tax advisor for more information.
ROLLOVER IRAS: Individuals who receive distributions from qualified retirement
plans (other than required distributions) and who wish to keep their savings
growing tax-deferred can rollover (or make a direct transfer of) their
distribution to a Rollover IRA. These accounts can also receive rollovers or
transfers from an existing IRA. If an "eligible 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: Simplified employee pension plans "SEPs" or "SEP-IRAs" provide
self-employed individuals (and any eligible employees) with benefits similar to
Keogh-type plans or Code Section 401(k) plans, but with fewer administrative
requirements and therefore potential lower annual administration expenses.
CODE SECTION 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 SECTION 401(K)) AND MONEY PURCHASE PENSION
PLANS: Corporations can sponsor these qualified defined contribution plans for
their employees. A Section 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).
SIMPLE RETIREMENT PLANS: Employers with no more than 100 employees who do not
maintain another retirement plan may establish a Savings Incentive Match Plan
for Employees ("SIMPLE") either as separate IRAs or as part of a Section 401(k)
plan. SIMPLEs are not subject to the complicated nondiscrimination rules that
generally apply to qualified retirement plans
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. as one of the first foreign discretionary
investment managers for Japanese investors. Such accomplishments,
Statement of Additional Information Page 18
<PAGE>
GT GLOBAL DOLLAR FUND
however, should not be viewed as an endorsement of the Manager by the government
of Hong Kong, Japan's Ministry of Finance or any other government or government
agency. Nor do any such accomplishments of the Manager provide any assurance
that the GT Global Mutual Funds' investment objectives will be achieved.
THE GT ADVANTAGE
As part of Liechtenstein Global Trust, GT Global continues a 75-year tradition
of service to individuals and institutions. Today we bring investors a
combination of experience, worldwide resources, a global perspective, investment
talent and a time tested investment discipline. With investment professionals in
nine offices worldwide, we witness world events and economic developments
firsthand.
The key to achieving consistent results is following a disciplined investment
process. Our approach to asset allocation takes advantage of GT Global's
worldwide presence and global perspective. Our "macroeconomic" worldview
determines our overall strategy of regional, country and sector allocations. Our
bottom up process of security selection combines fundamental research with
quantitative analysis through our proprietary models.
Built in checks and balances strengthen the process, enhancing professional
experience and judgment with an objective assessment of risk. Ultimately, each
security we select has passed a ranking system that helps our portfolio teams
determine when to buy and when to sell.
- --------------------------------------------------------------------------------
DESCRIPTION OF DEBT RATINGS
- --------------------------------------------------------------------------------
COMMERCIAL PAPER RATINGS
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. "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; and 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,
Statement of Additional Information Page 19
<PAGE>
GT GLOBAL DOLLAR FUND
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.
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The audited financial statements of the Fund at December 31, 1996 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
- --------------------------------------------------------------------------------
Annual Report
To the Shareholders and Board of Directors of G.T. 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 G.T. Investment
Portfolios, Inc., including the schedule of portfolio investments, as of
December 31, 1996, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996 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, 1996, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended and the financial highlights for each of the five years in
the period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
FEBRUARY 14, 1997
F1
<PAGE>
GT GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Principal Value % of Net
Short-Term Investments Yield Date Amount (Note 1) Assets
- ----------------------------------------------------------------- --------- --------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Commercial Paper - Discounted (28.7%)
Merrill Lynch & Co., Inc ...................................... 6.60% 02-Jan-97 19,250,000 $ 19,246,471 3.6
Ford Motor Credit Corp. ....................................... 5.55% 17-Jan-97 14,400,000 14,365,120 2.7
AIG Funding, Inc. ............................................. 5.30% 15-Jan-97 13,400,000 13,372,535 2.5
Metlife Funding, Inc. ......................................... 5.35% 17-Jan-97 13,400,000 13,368,436 2.5
Coca Cola Co. ................................................. 5.31% 10-Jan-97 13,300,000 13,282,444 2.5
Schering Corp. ................................................ 5.35% 08-Apr-97 13,300,000 13,111,502 2.4
Transamerica Finance Corp. .................................... 5.42% 27-Jun-97 13,300,000 12,956,040 2.4
Toronto - Dominion Holdings USA, Inc. ......................... 5.30% 13-Jan-97 12,400,000 12,378,259 2.3
General Electric Capital Corp. ................................ 5.37% 09-Jan-97 12,000,000 11,985,867 2.2
Motorola, Inc. ................................................ 5.31% 17-Jan-97 12,000,000 11,972,107 2.2
E.I. DuPont de Nemours & Co. .................................. 5.33% 30-Jan-97 11,400,000 11,351,512 2.1
Bear Stearns Cos., Inc. ....................................... 5.89% 18-Feb-97 7,250,000 7,198,283 1.3
------------ -----
Total Commercial Paper - Discounted (amortized cost
$154,588,576) .................................................. 154,588,576 28.7
------------ -----
Government & Government Agency Obligations (9.2%)
Federal Home Loan Mortgage Corp. .............................. 5.29% 10-Mar-97 13,300,000 13,168,862 2.5
Federal Home Loan Bank ........................................ 5.24% 24-Mar-97 13,300,000 13,143,681 2.5
Federal National Mortgage Association ......................... 5.47% 13-Feb-97 12,500,000 12,498,885 2.3
International Bank of Reconstruction and Development (World
Bank) ........................................................ 5.62% 18-Feb-97 10,000,000 9,927,334 1.9
------------ -----
Total Government & Government Agency Obligations (amortized cost
$48,738,762) ................................................... 48,738,762 9.2
------------ -----
Medium-Term Notes (3.6%)
Morgan Stanley Group, Inc.+ ................................... 5.62% 26-Aug-97 14,400,000 14,400,000 2.7
Bear Stearns Cos., Inc.+ ...................................... 5.47% 14-Nov-97 4,750,000 4,750,000 0.9
------------ -----
Total Medium-Term Notes (amortized cost $19,150,000) ............ 19,150,000 3.6
------------ -----
TOTAL SHORT-TERM INVESTMENTS (cost $222,477,338) ................ 222,477,338 41.5
------------ -----
<CAPTION>
Repurchase Agreements
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dated December 31, 1996, with Bank of America NT&SA, due
January 2, 1997, for an effective yield of 6.00%,
collateralized by $69,455,000 U.S. Treasury Bonds, 10.625% due
8/15/15 (market value of collateral is $102,021,232, including
accrued interest). .......................................... 100,016,667 --
Dated December 31, 1996, with State Street Bank & Trust Co.,
due January 2, 1997, for an effective yield of 6.25%,
collateralized by $83,500,000 U.S. Treasury Bonds, 8.125% due
8/15/19 (market value of collateral is $100,166,227, including
accrued interest). .......................................... 98,197,045 --
------------ -----
TOTAL REPURCHASE AGREEMENTS (cost $198,213,712) ................. 198,213,712 37.0
------------ -----
TOTAL INVESTMENTS (cost $420,691,050) * ........................ 420,691,050 78.5
Other Assets and Liabilities .................................... 115,218,498 21.5
------------ -----
NET ASSETS ...................................................... $535,909,548 100.0
------------ -----
------------ -----
</TABLE>
- --------------
+ The coupon rate shown on floating rate note represents the rate at
period end.
* For Federal income tax purposes, cost is $420,691,860.
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (amortized cost $222,477,338) (Note 1)........................ $222,477,338
Repurchase agreements, at value and cost (Note 1)................................................. 198,213,712
U.S. currency..................................................................................... 52,128
Receivable for Fund shares sold................................................................... 124,645,962
Interest receivable............................................................................... 306,950
-----------
Total assets.................................................................................... 545,696,090
-----------
Liabilities:
Payable for Fund shares repurchased............................................................... 9,254,433
Payable for investment management and administration fees (Note 2)................................ 186,171
Distribution payable.............................................................................. 97,718
Payable for transfer agent fees (Note 2).......................................................... 85,948
Payable for service and distribution expenses (Note 2)............................................ 69,406
Payable for printing and postage expenses......................................................... 36,603
Payable for professional fees..................................................................... 23,471
Payable for registration and filing fees.......................................................... 14,260
Payable for fund accounting fees (Note 2)......................................................... 8,310
Payable for Directors' fees and expenses (Note 2)................................................. 3,902
Payable for custodian fees........................................................................ 1,838
Other accrued expenses............................................................................ 4,482
-----------
Total liabilities............................................................................... 9,786,542
-----------
Net assets.......................................................................................... $535,909,548
-----------
-----------
Class A:
Net asset value and redemption price per share
($392,622,957 DIVIDED BY 392,683,509 shares outstanding)........................................... $ 1.00
-----------
-----------
Class B:+
Net asset value and offering price per share
($128,308,214 DIVIDED BY 128,266,410 shares outstanding)........................................... $ 1.00
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share
($14,978,377 DIVIDED BY 14,978,228 shares outstanding)............................................. $ 1.00
-----------
-----------
Net assets: At December 31, 1996, net assets consisted of paid-in capital of
$535,909,548.
<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.
F3
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF OPERATIONS
Year ended December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income............................................................................ $19,482,733
Expenses:
Investment management and administration fees (Note 2)..................................... 1,808,976
Transfer agent fees (Note 2)............................................................... 1,093,238
Service and distribution expenses (Note 2)
Class A....................................................................... $ 629,910
Class B....................................................................... 1,035,613 1,665,523
---------
Registration and filing fees............................................................... 598,919
Fund accounting fees (Note 2).............................................................. 90,682
Custodian fees (Note 4).................................................................... 62,864
Professional fees.......................................................................... 59,885
Printing and postage expenses.............................................................. 48,737
Directors' fees and expenses (Note 2)...................................................... 22,152
Other expenses............................................................................. 21,144
----------
Total expenses before reductions......................................................... 5,472,120
----------
Expenses waived by Chancellor LGT Asset Management, Inc. (Note 2)...................... (888,810)
Expenses reimbursed by Chancellor LGT Asset Management, Inc. (Note 2).................. (173,045)
Expense reductions (Note 4)............................................................ (62,864)
----------
Total net expenses....................................................................... 4,347,401
----------
Net investment income........................................................................ 15,135,332
----------
Net increase in net assets resulting from operations......................................... $15,135,332
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Year ended Year ended
December 31, December 31,
1996 1995
--------------- --------------
Increase (Decrease) in net assets
Operations:
Net investment income................................................... $ 15,135,332 $ 15,708,939
--------------- --------------
Net increase in net assets resulting from operations.................... 15,135,332 15,708,939
--------------- --------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income.............................................. (11,055,154) (11,346,132)
Class B:
Distributions to shareholders: (Note 1)
From net investment income.............................................. (3,791,539) (4,308,505)
Advisor Class: (Note 1)
Distributions to shareholders:
From net investment income.............................................. (288,639) (54,302)
--------------- --------------
Total distributions................................................... (15,135,332) (15,708,939)
--------------- --------------
Capital share transactions: (Note 3)
Increase from capital shares sold and reinvested........................ 16,871,270,679 9,659,790,290
Decrease from capital shares repurchased................................ (16,620,368,622) (9,805,577,211)
--------------- --------------
Net increase (decrease) from capital share transactions................. 250,902,057 (145,786,921)
--------------- --------------
Total increase (decrease) in net assets................................... 250,902,057 (145,786,921)
Net assets:
Beginning of year....................................................... 285,007,491 430,794,412
--------------- --------------
End of year............................................................. $ 535,909,548* $ 285,007,491*
--------------- --------------
--------------- --------------
<FN>
- --------------
* Includes undistributed net investment income of $0.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<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,
----------------------------------------------------------
1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net investment income................... 0.044 0.050 0.032 0.022 0.028
Distributions from net investment
income................................. (0.044) (0.050) (0.032) (0.022) (0.028)
---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total investment return (a)............. 4.50% 5.08% 3.3% 2.2% 2.8%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 392,623 $ 183,761 $ 320,858 $ 87,822 $ 81,674
Ratio of net investment income to
average net assets:
With expense reductions, waivers, and
reimbursements by Chancellor LGT
Asset Management, Inc. (b) (Notes 2 &
4)................................... 4.39% 4.94% 3.40% 2.17% 2.78%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 4.08% 4.66% 3.15% 1.46% 2.47%
Ratio of expenses to average net
assets: (b)
With expense reductions, waivers, and
reimbursements by Chancellor LGT
Asset Management, Inc. (b) (Notes 2 &
4)................................... 0.99% 0.97% 0.92% 1.00% 1.25%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 1.30% 1.25% 1.17% 1.72% 1.56%
</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.
F6
<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>
Class B++ Advisor Class+++
------------------------------------------------- ----------------------------
April 1, 1993 June 1, 1995
Year ended December 31, to Year ended to
---------------------------------- December 31, December 31, December 31,
1996 1995 1994 1993 1996 1995
---------- ---------- ---------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income................... 0.037 0.040 0.025 0.010 0.044 0.030
Distributions from net investment
income................................. (0.037) (0.040) (0.025) (0.010) (0.044) (0.030)
---------- ---------- ---------- ------------- ------------- -------------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ------------- ------------- -------------
---------- ---------- ---------- ------------- ------------- -------------
Total investment return (a)............. 3.73% 4.29% 2.53% 1.4% 4.50% 2.92%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 128,308 $ 99,151 $ 109,936 $ 3,478 $ 14,978 $ 2,096
Ratio of net investment income to
average net assets:
With expense reductions, waivers, and
reimbursements by Chancellor LGT
Asset Management, Inc. (b) (Notes 2 &
4)................................... 3.64% 4.19% 2.65% 1.42% 4.39% 4.94%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 3.33% 3.91% 2.40% 0.86% 4.33% 4.91%
Ratio of expenses to average net
assets: (b)
With expense reductions, waivers, and
reimbursements by Chancellor LGT
Asset Management, Inc. (b) (Notes 2 &
4)................................... 1.74% 1.72% 1.67% 1.75% 0.99% 0.97%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 2.05% 2.00% 1.92% 2.31% 1.05% 1.0%
</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.
F7
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
GT Global Dollar Fund ("Fund") is a diversified series of G.T. Investment
Portfolios, Inc. ("Company"). The Company is registered under the Investment
Company Act of 1940, as amended (1940 Act), as an open-end management investment
company.
The 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. 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 and the Financial
Statements may include certain estimates made by management.
(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. Chancellor LGT Asset Management, Inc. (the "Manager") 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
The Manager serves as the investment manager and administrator of the Fund. The
Fund pays the Manager 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., an affiliate of the Manager, 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, 1996, GT Global collected
CDSCs in the amount of $968,357. 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 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 could be reimbursed under the
Class A Plan will have been incurred within one year prior to 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.
F8
<PAGE>
GT GLOBAL DOLLAR FUND
The Manager 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 the Manager 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 the Manager
or GT Global of portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and GT Global, is the transfer agent 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 the Manager, 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.
The Manager is the pricing and accounting agent for the Fund. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of the Fund's average daily net assets. The annual fee rate is derived by
applying 0.03% to the first $5 billion of assets of all registered mutual funds
advised by LGT and 0.02% to the assets in excess of $5 billion and allocating
the result according to the Fund's average daily net assets.
3. Capital Shares
At December 31, 1996, 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, December 31,
1996 1995
--------------- ---------------
Class A Shares & Amount Shares & Amount
- ------------------------------------------------------------------------------------ --------------- ---------------
<S> <C> <C>
Shares sold......................................................................... 14,275,856,684 8,377,131,000
Shares issued in connection with reinvestment of distributions...................... 7,664,536 9,256,942
--------------- ---------------
14,283,521,220 8,386,387,942
Shares repurchased.................................................................. (14,074,631,817) (8,523,474,325)
--------------- ---------------
Net increase (decrease)............................................................. 208,889,403 (137,086,383)
--------------- ---------------
--------------- ---------------
Year ended Year ended
December 31, December 31,
1996 1995
--------------- ---------------
Class B Shares & Amount Shares & Amount
- ------------------------------------------------------------------------------------ --------------- ---------------
Shares sold......................................................................... 2,348,173,773 1,264,724,918
Shares issued in connection with reinvestment of distributions...................... 2,261,688 3,247,874
--------------- ---------------
2,350,435,461 1,267,972,792
Shares repurchased.................................................................. (2,321,320,722) (1,278,753,481)
--------------- ---------------
Net increase (decrease)............................................................. 29,114,739 (10,780,689)
--------------- ---------------
--------------- ---------------
June 1, 1995
(commencement
of
sale of shares)
Year ended to
December 31, December 31,
1996 1995
--------------- ---------------
Advisor Class Shares & Amount Shares & Amount
- ------------------------------------------------------------------------------------ --------------- ---------------
Shares sold......................................................................... 237,098,781 5,375,327
Shares issued in connection with reinvestment of distributions...................... 215,804 54,229
--------------- ---------------
237,314,585 5,429,556
Shares repurchased.................................................................. (224,416,508) (3,349,405)
--------------- ---------------
Net increase........................................................................ 12,898,077 2,080,151
--------------- ---------------
--------------- ---------------
</TABLE>
4. Expense Reductions
For the year ended December 31, 1996, the Fund's custody fees were offset by
$62,864 of credits on cash held at the custodian.
F9
<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, INCLUDING FEES, EXPENSES AND RISKS OF GLOBAL AND EMERGING
MARKET INVESTING AS WELL AS THE RISKS OF INVESTING IN RELATED INDUSTRIES,
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 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
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA MID CAP GROWTH FUND
Concentrates on medium-sized companies in
the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government 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
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., CHANCELLOR 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.
DOLSA705MC
