<PAGE>
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 12 months ended December 31, 1997, was 4.62%
for Class A shares and 3.84% for Class B shares. As of December 31, the Fund's
SEC seven-day yield was 4.55% for Class A shares and 3.82% 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. Please bear in mind that an investment in the Fund is
neither insured nor guaranteed by the U.S. government and that there can be no
assurance that the Fund will be able to maintain a stable net asset value of
$1.00 per share.
The U.S. bond market produced excellent returns in 1997. After a 25-basis
point increase in the Federal funds rate in March, the market began an upswing
in the second quarter that lasted throughout the last three quarters of the
year. In addition, interest rates fell after it became clear that the benign
economic environment in the U.S. would forestall additional interest rate
increases by the Fed in 1997.
In total, 1997 produced the lowest rates of U.S. inflation in decades, while
the economy enjoyed continued good growth. That combination, along with a stable
dollar, beckoned global investors in the fourth quarter. In addition, yields on
money market instruments have been fairly stable throughout the period and the
90-day Treasury bill yield ended the year about 18 basis points higher than it
began, at 5.35%.
We believe the overall environment for U.S. fixed income markets should
continue to be attractive in 1998. Short-term rates have remained in a narrow
range for some time, and we feel the economic environment augurs well for
continued stability. We concur with Federal Reserve (the Fed) Chairman
Greenspan's recent comments that effects of the Asian crisis have not yet fully
impacted U.S. markets. We expect weakness in Asia to moderate economic growth
somewhat, but believe its potential negative effect on U.S. profits and growth
in 1998 will be counterbalanced by its positive effect on inflation and interest
rates.
Additionally, we see reasonable potential for further declines in interest
rates. Inflation is at its lowest level in over 40 years, and productivity is
strong -- all positive cost factors we think will support U.S. profitability
even as product pricing remains under pressure. This environment (a new one for
investors) may necessitate a shift in policy stance by the Fed, whereby, instead
of constantly fighting inflation, they must also be concerned with deflation.
Our concerns about Fed tightening have been virtually erased, and we feel
the potential grows that the Fed may soon lower interest rates. In keeping with
our outlook, the average maturity of holdings in the Fund has been increased
moderately while still maintaining a high degree of liquidity for investors.
DECEMBER 31, 1997
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REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
GT Investment Portfolios, Inc.:
We have audited the accompanying statement of assets and liabilities of GT
Global Dollar Fund, a series of shares of common stock of GT Investment
Portfolios, Inc., including the schedule of portfolio investments, as of
December 31, 1997, the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of GT Global Dollar Fund as of December 31, 1997, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND, L.L.P.
BOSTON, MASSACHUSETTS
FEBRUARY 17, 1998
[LOGO]
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<PAGE>
GT GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
December 31, 1997
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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 (47.4%)
John Deere Capital Corp. ...................................... 5.73% 19-Mar-98 12,000,000 $ 11,854,982 4.3
Walt Disney Co. ............................................... 5.59% 14-Apr-98 12,000,000 11,812,884 4.3
American Express Credit Corp. ................................. 5.71% 21-May-98 12,000,000 11,740,067 4.2
Kingdom of Sweden ............................................. 5.62% 26-Jan-98 10,000,000 9,961,875 3.6
AIG Funding, Inc. ............................................. 5.73% 30-Jan-98 10,000,000 9,954,245 3.6
E.I. DuPont de Nemours & Co. .................................. 5.62% 09-Feb-98 10,000,000 9,940,742 3.6
Ford Motor Credit Corp. ....................................... 5.63% 13-Feb-98 10,000,000 9,934,544 3.6
Bellsouth Telecommunications, Inc. ............................ 5.78% 25-Feb-98 10,000,000 9,912,611 3.6
General Electric Capital Corp. ................................ 5.71% 11-Mar-98 10,000,000 9,893,625 3.6
3M Corp. ...................................................... 5.68% 24-Apr-98 10,000,000 9,824,850 3.5
AT&T Corp. .................................................... 5.58% 15-Jan-98 9,500,000 9,479,902 3.4
Motorola, Inc. ................................................ 5.59% 09-Feb-98 9,000,000 8,946,375 3.2
Emerson Electric Co. .......................................... 5.66% 05-Jan-98 8,000,000 7,995,111 2.9
------------ -----
Total Commercial Paper - Discounted (amortized cost
$131,251,813) .................................................. 131,251,813 47.4
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Government & Government Agency Obligations (3.6%)
Federal Home Loan Bank ........................................ 5.59% 06-Mar-98 10,000,000 9,903,289 3.6
------------ -----
Total Government & Government Agency Obligations (amortized cost
$9,903,289) .................................................... 9,903,289 3.6
------------ -----
TOTAL SHORT-TERM INVESTMENTS (cost $141,155,102) ................ 141,155,102 51.0
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENTS (NOTE 1) ASSETS
- ----------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Dated December 31, 1997, with State Street Bank & Trust Co.,
due January 2, 1998, for an effective yield of 5.80%,
collateralized by $45,775,000 U.S. Treasury Bills, 6.25% due
6/30/98 (market value of collateral is $45,946,656 including
accrued interest) ........................................... 45,041,000 16.3
Dated December 31, 1997, with BancAmerica Robertson Stephens,
due January 2, 1998, for an effective yield of 6.10%,
collateralized by $40,190,000 U.S. Treasury Bills and Notes,
6.25% due 6/30/98 & 3/31/99, respectively (market value of
collateral is $40,808,921 including accrued interest) ....... 40,000,000 14.4
------------ -----
TOTAL REPURCHASE AGREEMENTS (cost $85,041,000) .................. 85,041,000 30.7
------------ -----
TOTAL INVESTMENTS (cost $226,196,102) * ........................ 226,196,102 81.7
Other Assets and Liabilities .................................... 50,692,653 18.3
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NET ASSETS ...................................................... $276,888,755 100.0
------------ -----
------------ -----
</TABLE>
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* For Federal income tax purposes, cost is $226,196,102
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1997
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<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (amortized cost $141,155,102) (Note 1)....................... $141,155,102
Repurchase agreement, at value and cost (Note 1)................................................. 85,041,000
U.S. currency.................................................................................... 22,315
Receivable for Fund shares sold.................................................................. 72,954,035
Interest receivable.............................................................................. 14,034
-----------
Total assets................................................................................... 299,186,486
-----------
Liabilities:
Payable for Fund shares repurchased.............................................................. 21,805,756
Payable for investment management and administration fees (Note 2)............................... 134,841
Distribution payable............................................................................. 97,586
Payable for registration and filing fees......................................................... 91,486
Payable for service and distribution expenses (Note 2)........................................... 65,528
Payable for transfer agent fees (Note 2)......................................................... 35,773
Payable for printing and postage expenses........................................................ 26,318
Payable for professional fees.................................................................... 24,747
Payable for fund accounting fees (Note 2)........................................................ 4,326
Payable for Directors' fees and expenses (Note 2)................................................ 3,682
Payable for custodian fees....................................................................... 1,701
Other accrued expenses........................................................................... 5,987
-----------
Total liabilities.............................................................................. 22,297,731
-----------
Net assets......................................................................................... $276,888,755
-----------
-----------
Class A:
Net asset value and redemption price per share ($186,610,657 DIVIDED BY 186,670,776 shares
outstanding)...................................................................................... $ 1.00
-----------
-----------
Class B:+
Net asset value and offering price per share ($83,498,094 DIVIDED BY 83,456,702 shares
outstanding)...................................................................................... $ 1.00
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($6,780,004 DIVIDED BY
6,779,978 shares outstanding)..................................................................... $ 1.00
-----------
-----------
Net assets: At December 31, 1997, net assets consisted of paid-in capital of
$276,888,755.
<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, 1997
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<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income.............................................................................. $15,170,711
Expenses:
Service and distribution expenses: (Note 2)
Class A......................................................................... $ 422,808
Class B......................................................................... 995,797 1,418,605
---------
Investment management and administration fees (Note 2)....................................... 1,384,735
Transfer agent fees (Note 2)................................................................. 725,305
Registration and filing fees................................................................. 400,217
Professional fees............................................................................ 102,864
Printing and postage expenses................................................................ 101,842
Fund accounting fees (Note 2)................................................................ 69,517
Custodian fees (Note 4)...................................................................... 43,930
Directors' fees and expenses (Note 2)........................................................ 13,971
Other expenses............................................................................... 13,326
----------
Total expenses before reductions........................................................... 4,274,312
----------
Expenses waived by Chancellor LGT Asset Management, Inc. (Note 2)........................ (671,757)
Expenses reimbursed by Chancellor LGT Asset Management, Inc. (Note 2).................... (88,707)
Expense reductions (Note 2).............................................................. (43,916)
----------
Total net expenses......................................................................... 3,469,932
----------
Net investment income.......................................................................... 11,700,779
----------
Net increase in net assets resulting from operations........................................... $11,700,779
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL DOLLAR FUND
STATEMENT OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1997 1996
-------------- ---------------
Increase (Decrease) in net assets
Operations:
Net investment income................................................... $ 11,700,779 $ 15,135,332
-------------- ---------------
Net increase in net assets resulting from operations.................. 11,700,779 15,135,332
-------------- ---------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income.............................................. (7,587,680) (11,055,154)
Class B:
Distributions to shareholders: (Note 1)
From net investment income.............................................. (3,720,785) (3,791,539)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income.............................................. (392,314) (288,639)
-------------- ---------------
Total distributions................................................... (11,700,779) (15,135,332)
-------------- ---------------
Capital share transactions: (Note 3)
Increase from capital shares sold and reinvested........................ 8,215,928,197 16,871,270,679
Decrease from capital shares repurchased................................ (8,474,948,990) (16,620,368,622)
-------------- ---------------
Net increase (decrease) from capital share transactions............... (259,020,793) 250,902,057
-------------- ---------------
Total increase (decrease) in net assets................................... (259,020,793) 250,902,057
Net assets:
Beginning of year....................................................... 535,909,548 285,007,491
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End of year *........................................................... $ 276,888,755 $ 535,909,548
-------------- ---------------
-------------- ---------------
<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,
----------------------------------------------------------
1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net investment income................... 0.045 0.044 0.050 0.032 0.022
Distributions from net investment
income................................. (0.045) (0.044) (0.050) (0.032) (0.022)
---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total investment return (b)............. 4.62% 4.50% 5.08% 3.3% 2.2%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 186,611 $ 392,623 $ 183,761 $ 320,858 $ 87,822
Ratio of net investment income to
average net assets:
With expense reductions, waivers, and
reimbursement by Chancellor LGT Asset
Management, Inc. (a) (Notes 2 & 4)... 4.50% 4.39% 4.94% 3.40% 2.17%
Without expense reductions, waivers,
and reimbursement by Chancellor LGT
Asset Management, Inc. (a)........... 4.20% 4.08% 4.66% 3.15% 1.46%
Ratio of expenses to average net
assets: (a)
With expense reductions, waivers, and
reimbursement by Chancellor LGT Asset
Management, Inc. (a) (Notes 2 & 4)... 0.98% 0.99% 0.97% 0.92% 1.00%
Without expense reductions, waivers,
and reimbursement by Chancellor LGT
Asset Management, Inc. (a)........... 1.28% 1.30% 1.25% 1.17% 1.72%
</TABLE>
- ----------------
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
+ 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.
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++
-------------------------------------------------------------
APRIL 1, 1993
YEAR ENDED DECEMBER 31, TO
---------------------------------------------- DECEMBER 31,
1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Net investment income................... 0.038 0.037 0.040 0.025 0.010
Distributions from net investment
income................................. (0.038) (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 (b)............. 3.84% 3.73% 4.29% 2.53% 1.4%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 83,498 $ 128,308 $ 99,151 $ 109,936 $ 3,478
Ratio of net investment income to
average net assets:
With expense reductions, waivers, and
reimbursement by Chancellor LGT Asset
Management, Inc. (a) (Notes 2 & 4)... 3.75% 3.64% 4.19% 2.65% 1.42%
Without expense reductions, waivers,
and reimbursement by Chancellor LGT
Asset Management, Inc. (a)........... 3.45% 3.33% 3.91% 2.40% 0.86%
Ratio of expenses to average net
assets: (a)
With expense reductions, waivers, and
reimbursement by Chancellor LGT Asset
Management, Inc. (a) (Notes 2 & 4)... 1.73% 1.74% 1.72% 1.67% 1.75%
Without expense reductions, waivers,
and reimbursement by Chancellor LGT
Asset Management, Inc. (a)........... 2.03% 2.05% 2.00% 1.92% 2.31%
</TABLE>
- ----------------
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
+ 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.
The accompanying notes are an integral part of the financial statements.
F7
<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+++
-------------------------------------
YEAR ENDED DECEMBER JUNE 1, 1995
31, TO
---------------------- DECEMBER 31,
1997 1996 1995
---------- ---------- -------------
<S> <C> <C> <C>
Net investment income................... 0.045 0.044 0.030
Distributions from net investment
income................................. (0.045) (0.044) (0.030)
---------- ---------- -------------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00
---------- ---------- -------------
---------- ---------- -------------
Total investment return (b)............. 4.61% 4.50% 2.92%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 6,780 $ 14,978 $ 2,096
Ratio of net investment income to
average net assets:
With expense reductions, waivers, and
reimbursement by Chancellor LGT Asset
Management, Inc. (a) (Notes 2 & 4)... 4.50% 4.39% 4.94%
Without expense reductions, waivers,
and reimbursement by Chancellor LGT
Asset Management, Inc. (a)........... 4.45% 4.33% 4.91%
Ratio of expenses to average net
assets: (a)
With expense reductions, waivers, and
reimbursement by Chancellor LGT Asset
Management, Inc. (a) (Notes 2 & 4)... 0.98% 0.99% 0.97%
Without expense reductions, waivers,
and reimbursement by Chancellor LGT
Asset Management, Inc. (a)........... 1.03% 1.05% 1.0%
</TABLE>
- ----------------
(a) Annualized for periods of less than one year.
(b) Not annualized for periods of less than one year.
+ 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.
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
- --------------------------------------------------------------------------------
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 preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Funds in the preparation of the
financial statements.
(A) PORTFOLIO VALUATION
Securities are valued at amortized cost, which approximates market value.
(B) FEDERAL INCOME TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, and unrealized appreciation of securities held, or for excise tax on
income and capital gains. The Fund currently has a capital loss carryforward of
$3,382 which expires in 2005.
(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. ("GT Global"), 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,
1997, GT Global collected CDSCs in the amount of $1,241,407. 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 is reimbursed under the Class
A Plan will have been incurred within one year of such reimbursement.
Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.75% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in providing services as
distributor. GT Global does not currently intend to seek reimbursement of any
F9
<PAGE>
GT GLOBAL DOLLAR FUND
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 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, 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>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
---------------------- ----------------------
CLASS A SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- ---------------------- ----------------------
<S> <C> <C>
Shares sold............................. 6,222,351,251 14,275,856,684
Shares issued in connection with
reinvestment of distributions......... 4,193,093 7,664,536
---------------------- ----------------------
6,226,544,344 14,283,521,220
Shares repurchased...................... (6,432,557,179) (14,074,631,817)
---------------------- ----------------------
Net increase (decrease)................. (206,012,835) 208,889,403
---------------------- ----------------------
---------------------- ----------------------
<CAPTION>
CLASS B SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- ---------------------- ----------------------
<S> <C> <C>
Shares sold............................. 1,763,392,144 2,348,173,773
Shares issued in connection with
reinvestment of distributions......... 2,479,264 2,261,688
---------------------- ----------------------
1,765,871,408 2,350,435,461
Shares repurchased...................... (1,810,681,116) (2,321,320,722)
---------------------- ----------------------
Net increase (decrease)................. (44,809,708) 29,114,739
---------------------- ----------------------
---------------------- ----------------------
<CAPTION>
ADVISOR CLASS SHARES & AMOUNT SHARES & AMOUNT
- ---------------------------------------- ---------------------- ----------------------
<S> <C> <C>
Shares sold............................. 223,289,952 237,098,781
Shares issued in connection with
reinvestment of distributions......... 222,493 215,804
---------------------- ----------------------
223,512,445 237,314,585
Shares repurchased...................... (231,710,695) (224,416,508)
---------------------- ----------------------
Net increase (decrease)................. (8,198,250) 12,898,077
---------------------- ----------------------
---------------------- ----------------------
</TABLE>
4. EXPENSE REDUCTIONS
For the year ended December 31, 1997, the Fund's custody fees were offset by
$43,916 of credits on cash held at the custodian.
5. SUBSEQUENT EVENT
On January 30, 1998, Liechtenstein Global Trust ("LGT") and AMVESCAP PLC
("AMVESCAP") entered into an agreement by which AMVESCAP will acquire LGT's
Asset Management Division, including Chancellor LGT Asset Management, Inc.
AMVESCAP is the holding company of the AIM and INVESCO asset management
businesses.
F10
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GT GLOBAL DOLLAR FUND
NOTES
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