<PAGE>
[LOGO]
GT GLOBAL DOLLAR FUND
Fifty California Street, 27th Floor
San Francisco, California 94111
General Telephone No. 415/392-6181
General Fund Information 800/824-1580
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REPORT FROM THE FUND MANAGER
The Fund's total return for the six months ended June 30, 1997, was 2.22%
for Class A shares and 1.84% for Class B shares. As of June 30, 1997, the Fund's
SEC seven-day yield was 4.50% for Class A shares and 3.76% for Class B shares.
Because the Fund invests only in short-term debt obligations with remaining
maturities of 13 months or less, its performance generally reflects the level of
short-term interest rates.
U.S. fixed income markets continued their roller coaster ride during the
first six months of 1997. Yields on fixed income securities rose during the
first three months of the year as the pace of economic growth increased during
the quarter. However, this growth spurt moderated in the second quarter, and
fears of runaway growth coupled with accelerating inflation subsided. As a
result, yields on 90-day Treasury bills ended the six-month period where they
began.
While fixed income markets have been experiencing short-term volatility,
longer-term interest rate swings have become much more moderate than they were
in the 1980's and early 1990s. This trend results from the current economic
environment, characterized by smaller swings in economic activity and benign
inflation. Steadily increasing worker productivity, reduced backlogs due to
better inventory management, and freer trade and capital flows have all
contributed to stable economic growth with decelerating inflation.
Risk premiums have been steadily declining as economic and inflation risks
have been temporarily reduced. This has been manifested in tighter yield spreads
across different quality instruments -- the pickup in yield that accompanies
moving down in quality has declined. Also, the yield curve has flattened,
reducing the yield pickup earned by purchasing longer dated maturities.
While this financial nirvana is not forecast to change in the near term, we
also know it will not last forever. Accordingly, we have continued to maintain a
high-quality bias in the portfolio; the average maturity has been kept on the
shorter side since we are not sacrificing any yield to be defensive in this
environment. We continue to believe the economy will grow at a trend rate with
low inflation, but inflation scares are likely to continue, and short-term
volatility will be evident even though the longer-term trend in rates remains
intact. The real rate of return available to short-term, high-quality
investments continues to be attractive, and the Fund's management will provide
the opportunity to participate in this segment of the market.
<TABLE>
<S> <C>
JOHN GEISSINGER HEIDE KOCH
PORTFOLIO MANAGER PORTFOLIO MANAGER
NEW YORK NEW YORK
</TABLE>
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<PAGE>
GT GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
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<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 (28.0%)
Walt Disney Co. ............................................... 5.45% 25-Jul-97 15,000,000 $ 14,946,900 6.5
E.I. DuPont de Nemours & Co. .................................. 5.36% 18-Aug-97 15,000,000 14,895,600 6.5
Ford Motor Credit Corp. ....................................... 5.40% 18-Aug-97 15,000,000 14,892,400 6.4
General Electric Capital Corp. ................................ 5.82% 12-Sep-97 15,000,000 14,832,100 6.4
Pitney Bowes Credit Corp. ..................................... 5.41% 21-Jul-97 5,000,000 4,985,278 2.2
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Total Commercial Paper - Discounted (amortized cost
$64,552,278) ................................................... 64,552,278 28.0
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Government & Government Agency Obligations (10.2%)
Kingdom of Sweden ............................................. 5.45% 29-Jul-97 14,000,000 13,942,180 6.0
Federal Home Loan Bank ........................................ 5.58% 26-Dec-97 10,000,000 9,731,517 4.2
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Total Government & Government Agency Obligations (amortized cost
$23,673,697) ................................................... 23,673,697 10.2
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Medium-Term Notes (8.3%)
Morgan Stanley Group, Inc.+ ................................... 5.65% 26-Aug-97 14,400,000 14,400,000 6.2
Bear Stearns Cos., Inc.+ ...................................... 5.95% 14-Nov-97 4,750,000 4,750,000 2.1
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Total Medium-Term Notes (amortized cost $19,150,000) ............ 19,150,000 8.3
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Treasury Bills (6.5%)
United States Treasury Bill ................................... 4.77% 03-Jul-97 15,000,000 14,996,208 6.5
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Total Treasury Bills (cost $122,372,183) ........................ 14,996,208
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TOTAL SHORT-TERM INVESTMENTS (cost $122,372,183) ................ 122,372,183 53.0
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<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENTS (NOTE 1) ASSETS
- ----------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co., due
July 1, 1997, for an effective yield of 5.75%, collateralized
by $36,740,000 U.S. Treasury Bills, 8.25% due 8/31/97 (market
value of collateral is $37,480,790, including accrued
interest). .................................................. 36,744,868 15.9
Dated June 30, 1997, with Bank of America NT&SA, due July 1,
1997, for an effective yield of 5.75%, collateralized by
$25,850,000 U.S. Treasury Notes, 8.25% due 7/15/98 (market
value of collateral is $27,461,677, including accrued
interest). .................................................. 26,899,296 11.6
Dated June 30, 1997, with Bank of America NT&SA, due July 1,
1997, for an effective yield of 5.75%, collateralized by
$10,220,000 U.S. Treasury Notes, 5.875% due 10/31/98 (market
value of collateral is $10,310,016, including accrued
interest). .................................................. 10,106,614 4.4
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TOTAL REPURCHASE AGREEMENTS (cost $73,750,778) .................. 73,750,778 31.9
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TOTAL INVESTMENTS (cost $196,122,961) * ........................ 196,122,961 84.9
Other Assets and Liabilities .................................... 34,967,348 15.1
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NET ASSETS ...................................................... $231,090,309 100.0
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</TABLE>
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+ The coupon rate shown on floating rate note represents the rate at
period end.
* For Federal income tax purposes, cost is $196,123,771
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF ASSETS
AND LIABILITIES
June 30, 1997 (Unaudited)
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<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (amortized cost $122,372,183) (Note 1)....................... $122,372,183
Repurchase agreements, at value and cost (Note 1)................................................ 73,750,778
U.S. currency.................................................................................... 39,834
Receivable for Fund shares sold.................................................................. 37,701,110
Receivable from Chancellor LGT Asset Management, Inc............................................. 257,482
Interest receivable.............................................................................. 48,998
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Total assets................................................................................... 234,170,385
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Liabilities:
Payable for Fund shares repurchased.............................................................. 2,542,764
Payable for investment management and administration fees (Note 2)............................... 167,020
Payable for transfer agent fees (Note 2)......................................................... 164,924
Payable for printing and postage expenses........................................................ 73,104
Payable for registration and filing fees......................................................... 52,413
Payable for service and distribution expenses (Note 2)........................................... 49,736
Payable for professional fees.................................................................... 14,872
Payable for Directors' fees and expenses (Note 2)................................................ 7,150
Payable for fund accounting fees (Note 2)........................................................ 2,230
Payable for custodian fees....................................................................... 1,851
Other accrued expenses........................................................................... 4,012
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Total liabilities.............................................................................. 3,080,076
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Net assets......................................................................................... $231,090,309
-----------
-----------
Class A:
Net asset value and redemption price per share
($126,902,978 DIVIDED BY 126,963,124 shares outstanding).......................................... $ 1.00
-----------
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Class B:+
Net asset value and offering price per share
($100,809,683 DIVIDED BY 100,768,003 shares outstanding).......................................... $ 1.00
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share
($3,377,648 DIVIDED BY 3,377,610 shares outstanding).............................................. $ 1.00
-----------
-----------
Net assets: At June 30, 1997, net assets consisted of paid-in capital of $231,090,309.
<FN>
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+ 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.
F2
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF OPERATIONS
Six months ended June 30, 1997 (Unaudited)
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<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income............................................................................... $8,226,459
---------
Total investment income..................................................................... 8,226,459
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Expenses:
Investment management and administration fees (Note 2)........................................ 763,168
Service and distribution expenses: (Note 2)
Class A.......................................................................... $ 237,188
Class B.......................................................................... 523,679 760,867
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Transfer agent fees (Note 2).................................................................. 546,760
Registration and filing fees.................................................................. 283,668
Printing and postage expenses................................................................. 55,724
Professional fees............................................................................. 46,345
Fund accounting fees (Note 2)................................................................. 38,168
Custodian fees (Note 4)....................................................................... 32,187
Directors' fees and expenses (Note 2)......................................................... 9,851
Other expenses................................................................................ 8,334
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Total expenses before reductions............................................................ 2,545,072
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Expenses waived by Chancellor LGT Asset Management, Inc. (Note 2)......................... (367,031)
Expense reimbursed by Chancellor LGT Asset Management, Inc. (Note 2)...................... (257,482)
Expense reductions (Note 4)............................................................... (32,174)
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Total net expenses.......................................................................... 1,888,385
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Net investment income........................................................................... 6,338,074
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Net increase in net assets resulting from operations............................................ $6,338,074
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</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
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Increase (Decrease) in net assets
Operations:
Net investment income................................................... $ 6,338,074 $ 15,135,332
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Net increase in net assets resulting from operations.................. 6,338,074 15,135,332
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Class A:
Distributions to shareholders: (Note 1)
From net investment income.............................................. (4,180,682) (11,055,154)
Class B:
Distributions to shareholders: (Note 1)
From net investment income.............................................. (1,937,899) (3,791,539)
Advisor Class: (Note 1)
Distributions to shareholders:
From net investment income.............................................. (219,493) (288,639)
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Total distributions................................................... (6,338,074) (15,135,332)
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Capital share transactions: (Note 3)
Increase from capital shares sold and reinvested........................ 4,388,320,235 16,871,270,679
Decrease from capital shares repurchased................................ (4,693,139,474) (16,620,368,622)
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Net increase (decrease) from capital share transactions............... (304,819,239) 250,902,057
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Total increase (decrease) in net assets................................... (304,819,239) 250,902,057
Net assets:
Beginning of period..................................................... 535,909,548 285,007,491
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End of period *......................................................... $ 231,090,309 $ 535,909,548
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<FN>
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* Includes undistributed net investment income of $0.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
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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+
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SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1997 ----------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income................... 0.022 0.044 0.050 0.032 0.022 0.028
Distributions from net investment
income................................. (0.022) (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 $ 1.00
----------- ---------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ---------- ----------
Total investment return (a)............. 2.22% 4.50% 5.08% 3.3% 2.2% 2.8%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 126,903 $ 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)................................... 4.42% 4.39% 4.94% 3.40% 2.17% 2.78%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 3.98% 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)................................... 0.98% 0.99% 0.97% 0.92% 1.00% 1.25%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 1.42% 1.30% 1.25% 1.17% 1.72% 1.56%
</TABLE>
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+ 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.
F5
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS (cont'd)
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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++
--------------------------------------------------------------
SIX MONTHS
ENDED APRIL 1, 1993
JUNE 30, YEAR ENDED DECEMBER 31, TO
1997 ---------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
----------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Net investment income................... 0.018 0.037 0.040 0.025 0.010
Distributions from net investment
income................................. (0.018) (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
----------- ---------- ---------- ---------- -------------
----------- ---------- ---------- ---------- -------------
Total investment return (a)............. 1.84% 3.73% 4.29% 2.53% 1.4%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 100,810 $ 128,308 $ 99,151 $ 109,936 $ 3,478
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)................................... 3.67% 3.64% 4.19% 2.65% 1.42%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 3.23% 3.33% 3.91% 2.40% 0.86%
Ratio of expenses to average net
assets: (b)
With expense reductions, waivers, and
reimbursements by Chancellor LGT
Asset Management, Inc. (b) (Notes 2 &
4)................................... 1.73% 1.74% 1.72% 1.67% 1.75%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 2.17% 2.05% 2.00% 1.92% 2.31%
</TABLE>
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+ 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>
ADVISOR CLASS+++
-----------------------------------------
SIX MONTHS
ENDED JUNE 1, 1995
JUNE 30, YEAR ENDED TO
1997 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1996 1995
----------- ------------- -------------
<S> <C> <C> <C>
Net investment income................... 0.022 0.044 0.030
Distributions from net investment
income................................. (0.022) (0.044) (0.030)
----------- ------------- -------------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00
----------- ------------- -------------
----------- ------------- -------------
Total investment return (a)............. 2.22% 4.50% 2.92%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 3,378 $ 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)................................... 4.42% 4.39% 4.94%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 4.23% 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)................................... 0.98% 0.99% 0.97%
Without expense reductions, waivers,
and reimbursements by Chancellor LGT
Asset Management, Inc. (b)........... 1.17% 1.05% 1.0%
</TABLE>
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+ 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
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Dollar Fund ("Fund") is a diversified series of GT Investment
Portfolios, Inc. ("Company"). The Company is registered under the Investment
Company Act of 1940, as amended (1940 Act), as an open-end management investment
company.
The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Each class has exclusive voting
rights with respect to its distribution plan. 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 year 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 period ended June 30, 1997, GT Global collected
CDSCs in the amount of $758,077. 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.
The Manager and GT Global have voluntarily undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, interest, taxes
F8
<PAGE>
GT GLOBAL DOLLAR FUND
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 June 30, 1997, 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>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
--------------------- ----------------------
CLASS A SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- --------------------- ----------------------
<S> <C> <C>
Shares sold............................. 3,389,048,993 14,275,856,684
Shares issued in connection with
reinvestment of distributions......... 2,541,863 7,664,536
--------------------- ----------------------
3,391,590,856 14,283,521,220
Shares repurchased...................... (3,657,311,241) (14,074,631,817)
--------------------- ----------------------
Net increase (decrease)................. (265,720,385) 208,889,403
--------------------- ----------------------
--------------------- ----------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
--------------------- ----------------------
CLASS B SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- --------------------- ----------------------
<S> <C> <C>
Shares sold............................. 907,543,753 2,348,173,773
Shares issued in connection with
reinvestment of distributions......... 1,231,238 2,261,688
--------------------- ----------------------
908,774,991 2,350,435,461
Shares repurchased...................... (936,273,398) (2,321,320,722)
--------------------- ----------------------
Net increase (decrease)................. (27,498,407) 29,114,739
--------------------- ----------------------
--------------------- ----------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
--------------------- ----------------------
ADVISOR CLASS SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- --------------------- ----------------------
<S> <C> <C>
Shares sold............................. 87,803,368 237,098,781
Shares issued in connection with
reinvestment of distributions......... 150,848 215,804
--------------------- ----------------------
87,954,216 237,314,585
Shares repurchased...................... (99,554,834) (224,416,508)
--------------------- ----------------------
Net increase (decrease)................. (11,600,618) 12,898,077
--------------------- ----------------------
--------------------- ----------------------
</TABLE>
4. EXPENSE REDUCTIONS
For the period ended June 30, 1997, the Fund's custody fees were offset by
$32,174 of credits on cash held at the custodian.
F9
