<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH 10, 1998
FILE NO. 2-74549
811-03297
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
POST-EFFECTIVE AMENDMENT NO. 23
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
AMENDMENT NO. 19
------------------------
G.T. INVESTMENT PORTFOLIOS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
50 CALIFORNIA STREET, 27TH FLOOR,
SAN FRANCISCO, CALIFORNIA 94111
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(415) 392-6181
------------------------
<TABLE>
<S> <C>
MICHAEL A. SILVER, ESQ. ARTHUR J. BROWN, ESQ.
CHANCELLOR LGT ASSET R. CHARLES MILLER, ESQ.
MANAGEMENT, INC. KIRKPATRICK & LOCKHART LLP
50 CALIFORNIA STREET, 27TH FLOOR 1800 MASSACHUSETTS AVENUE, N.W.,
SAN FRANCISCO, CALIFORNIA 94111 2ND FLOOR
(NAME AND ADDRESS OF AGENT FOR SERVICE) WASHINGTON, D.C. 20036
(202) 778-9000
</TABLE>
------------------------
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE:
/ / IMMEDIATELY UPON FILING PURSUANT TO PARAGRAPH (b) OF RULE 485.
/ / ON PURSUANT TO PARAGRAPH (b) OF RULE 485.
/X/ 60 DAYS AFTER FILING PURSUANT TO PARAGRAPH (a)(i) OF RULE 485 OR SUCH
OTHER DATE AS IT MAY BE DECLARED EFFECTIVE BY THE SECURITIES AND
EXCHANGE COMMISSION.
/ / ON PURSUANT TO PARAGRAPH (a)(i) OF RULE 485.
/ / 75 DAYS AFTER FILING PURSUANT TO PARAGRAPH (a)(ii) OF RULE 485.
/ / ON PURSUANT TO PARAGRAPH (a)(ii) OF RULE 485.
IF APPROPRIATE, CHECK THE FOLLOWING BOX:
/ / THIS POST-EFFECTIVE AMENDMENT DESIGNATES A NEW EFFECTIVE DATE FOR A
PREVIOUSLY FILED POST-EFFECTIVE AMENDMENT.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CONTENTS OF POST-EFFECTIVE AMENDMENT
This post-effective amendment to the registration statement of G.T.
Investment Portfolios, Inc. contains the following documents:
<TABLE>
<S> <C> <C>
Facing Sheet
Contents of Post-Effective Amendment
Cross-Reference Sheet
Part A -- Prospectus
-- GT Global Dollar Fund -- Class A and Class B
-- GT Global Dollar Fund -- Advisor Class
Part B -- Statement of Additional Information
-- GT Global Dollar Fund -- Class A and Class B
-- GT Global Dollar Fund -- Advisor Class
Part C -- Other Information
Signature Page
Exhibits
</TABLE>
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT
PROSPECTUS -- CLASS A AND CLASS B
<TABLE>
<CAPTION>
ITEM NO. OF
PART A OF FORM N-1A CAPTIONS IN PROSPECTUS
- ------------------------------------------- ---------------------------------------------------------------
<C> <S> <C>
1. Cover Page...................... Cover Page
2. Synopsis........................ Prospectus Summary
3. Condensed Financial
Information..................... Financial Highlights
4. General Description of
Registrant...................... Investment Objective and Policies; Management; Other
Information
5. Management of the
Fund............................ Management
5A. Management's
Discussion of Fund
Performance..................... Not Applicable
6. Capital Stock and Other
Securities...................... Dividends and Federal Income Taxation; Other Information
7. Purchase of Securities
Being Offered................... How to Invest; How to Make Exchanges; Calculation of Net Asset
Value; Management
8. Redemption or
Repurchase...................... How to Redeem Shares; Calculation of Net Asset Value
9. Pending Legal
Proceedings..................... Not Applicable
</TABLE>
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT
PROSPECTUS -- ADVISOR CLASS
<TABLE>
<CAPTION>
ITEM NO. OF
PART A OF FORM N-1A CAPTIONS IN PROSPECTUS
- ------------------------------------------- ---------------------------------------------------------------
<C> <S> <C>
1. Cover Page...................... Cover Page
2. Synopsis........................ Prospectus Summary
3. Condensed Financial
Information..................... Financial Highlights
4. General Description of
Registrant...................... Investment Objective and Policies; Management; Other
Information
5. Management of the
Fund............................ Management
5A. Management's
Discussion of Fund
Performance..................... Not Applicable
6. Capital Stock and Other
Securities...................... Dividends and Federal Income Taxation; Other Information
7. Purchase of Securities
Being Offered................... How to Invest; How to Make Exchanges; Calculation of Net Asset
Value; Management
8. Redemption or
Repurchase...................... How to Redeem Shares; Calculation of Net Asset Value
9. Pending Legal
Proceedings..................... Not Applicable
</TABLE>
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT
STATEMENT OF ADDITIONAL INFORMATION -- CLASS A AND CLASS B
<TABLE>
<CAPTION>
ITEM NO. OF
PART B OF FORM N-1A CAPTIONS IN STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------- ------------------------------------------------------------------
<S> <C>
10. Cover Page................... Cover Page
11. Table of Contents............ Table of Contents
12. General Information and
History..................... Cover Page
13. Investment Objective
and Policies................ Investment Objective and Policies; Investment Limitations
14. Management of the
Fund........................ Directors and Executive Officers; Management
15. Control Persons and
Principal Holders of
Securities.................. Directors and Executive Officers; Management
16. Investment Advisory and
Other Services.............. Management; Additional Information
17. Brokerage Allocation and
Other Practices............. Execution of Portfolio Transactions
18. Capital Stock and Other
Securities.................. Not Applicable
19. Purchase, Redemption
and Pricing of Securities
Being Offered............... Valuation of Fund Shares; Information Relating to
Sales and Redemptions
20. Tax Status................... Dividends and Federal Income Taxation
21. Underwriters................. Management
22. Calculation of
Performance Data............ Investment Results
23. Financial Statements......... Financial Statements
</TABLE>
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
CROSS-REFERENCE SHEET
BETWEEN ITEMS ENUMERATED IN FORM N-1A AND THIS AMENDMENT
STATEMENT OF ADDITIONAL INFORMATION -- ADVISOR CLASS
<TABLE>
<CAPTION>
ITEM NO. OF
PART B OF FORM N-1A CAPTIONS IN STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------- ------------------------------------------------------------------
<S> <C>
10. Cover Page................... Cover Page
11. Table of Contents............ Table of Contents
12. General Information and
History..................... Cover Page
13. Investment Objective
and Policies................ Investment Objective and Policies; Investment Limitations
14. Management of the
Fund........................ Directors and Executive Officers; Management
15. Control Persons and
Principal Holders of
Securities.................. Directors and Executive Officers; Management
16. Investment Advisory and
Other Services.............. Management; Additional Information
17. Brokerage Allocation and
Other Practices............. Execution of Portfolio Transactions
18. Capital Stock and Other
Securities.................. Not Applicable
19. Purchase, Redemption
and Pricing of Securities
Being Offered............... Valuation of Shares; Information Relating to
Sales and Redemptions
20. Tax Status................... Dividends and Federal Income Taxation
21. Underwriters................. Management
22. Calculation of
Performance Data............ Investment Results
23. Financial Statements......... Financial Statements
</TABLE>
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS -- APRIL 1, 1998
- --------------------------------------------------------------------------------
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 April 1, 1998, 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, CA 94111, or calling (800) 824-1580. It is
also available, along with other related materials, on the SEC's Internet web
site (http://www.sec.gov).
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, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION PASSED
ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
Prospectus Page 1
<PAGE>
GT GLOBAL DOLLAR FUND
TABLE OF CONTENTS
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Page
---------
<S> <C>
Prospectus Summary........................................................................ 3
Financial Highlights...................................................................... 6
Investment Objective and Policies......................................................... 8
How to Invest............................................................................. 11
How to Make Exchanges..................................................................... 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......................................................................... 24
</TABLE>
Prospectus Page 2
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
- ------------------------------------------------------------
The following summary is qualified in its entirety by the more detailed
information appearing in the body of this Prospectus. Cross-references in the
summary are to headings 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 $79 billion in total assets as of December 31, 1997.
The Manager and its worldwide asset management affiliates maintain
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. Each class has distinct
advantages and disadvantages for different investors, and
investors should choose the class that best suits their
circumstances and objectives. See "How to Invest."
Class A Shares: Offered at net asset value and subject to 12b-1 service and
distribution fees at the annualized rate of up to 0.25% of the
average daily net assets of Class A shares.
Class B Shares: Offered at net asset value (a maximum contingent deferred sales
charge of 5% of the net asset value at the time of purchase or
sale, whichever is less, is imposed on certain redemptions made
within six years of date of purchase) and subject to 12b-1 service
and distribution fees at the annualized rate of up to 1.00% of the
average daily net assets of Class B shares.
Class A shares are available through broker/dealers, banks and
Shares Available Through: other financial service entities ("Financial Institutions") that
have entered into agreements 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 may be exchanged for shares of the same class of any other
GT Global Mutual Funds. See "How to Make Exchanges" and
"Shareholder Account Manual."
Redemptions: Shares may be redeemed through Financial Institutions that sell
shares of the Funds or the Fund's transfer agent, GT Global
Investor Services, Inc. ("Transfer Agent"). See "How to Redeem
Shares" and "Shareholder Account Manual."
</TABLE>
Prospectus Page 3
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Dividends: Dividends are declared daily and paid monthly from available net
investment income and any realized net short-term capital gain.
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 ($25 for IRAs and reduced amounts for 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)............................... 0.50% 0.50%
12b-1 distribution and service fees (after waivers)................................................ 0.00% 0.75%
Other expenses (after waivers)..................................................................... 0.50% 0.50%
----------- -----------
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 $ 55 $ 123
Class B shares
Assuming complete redemption at end of period (4)...................... 70 89 119 208
Assuming no redemption................................................. 18 56 96 208
<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, 1997.
"Other expenses" include custody, transfer agent, legal, audit and other
expenses. Effective January 1, 1998, the Manager and GT Global have
undertaken to limit the Fund's expenses (exclusive of brokerage
commissions, taxes, interest 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. 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," "Other Expenses" and "Total Fund Operating
Expenses" would have been 0.50%, 0.25%, 0.53%, and 1.28%, respectively, for
Class A shares and 0.50%, 1.00%, 0.53%, and 2.03%, respectively, for Class
B shares. The Fund also offers Advisor Class shares, which are not subject
to 12b-1 distribution and service fees, to certain categories of investors.
See "How to Invest."
(4) Assumes deduction of the 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 Class A and Class B share of the Fund. 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, 1997, 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, 1988 to 1991 was audited by other auditors that served
as the Fund's independent accountants for those periods.
<TABLE>
<CAPTION>
CLASS A+
----------------------------------------------------------------------------------
YEAR ENDED DEC. 31,
----------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.045 $ 0.044 $ 0.050 $ 0.032 $ 0.022 $ 0.028 $ 0.051
Distributions from net investment
income................................. (0.045) (0.044) (0.050) (0.032) (0.022) (0.028) (0.051)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investment Return (b)............. 4.62% 4.50% 5.08% 3.30% 2.2% 2.8% 5.1%
Ratios and supplemental data:
Net assets at end of the period (in
000's)................................. $186,611 $392,623 $183,761 $320,858 $87,822 $81,674 $70,295
Ratio of net investment income to
average net assets:
With expense waivers and reductions
(a).................................. 4.50% 4.39% 4.94% 3.40% 2.17% 2.78% 5.10%
Without expense waivers and reductions
(a).................................. 4.20% 4.08% 4.66% 3.15% 1.46% 2.47% 4.90%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 0.98% 0.99% 0.97% 0.92% 1.00% 1.25% 1.25%
Without expense waivers and reductions
(a).................................. 1.28% 1.30% 1.25% 1.17% 1.72% 1.56% 1.45%
<CAPTION>
1990
----------
<S> <C>
Net investment income................... $ 0.069
Distributions from net investment
income................................. (0.069)
----------
Net asset value (unchanged during the
period)................................ $ 1.00
----------
----------
Total Investment Return (b)............. 6.9%
Ratios and supplemental data:
Net assets at end of the period (in
000's)................................. $123,218
Ratio of net investment income to
average net assets:
With expense waivers and reductions
(a).................................. 6.95%
Without expense waivers and reductions
(a).................................. 6.64%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 1.25%
Without expense waivers and reductions
(a).................................. 1.56%
<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 A+ CLASS B++
---------------------- ----------------------------------------------------------
APRIL 1,
YEAR ENDED DEC. 31, 1993
YEAR ENDED DEC. 31, TO
---------------------- ---------------------------------------------- DEC. 31,
1989 1988 1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.075 $ 0.058 $ 0.038 $ 0.037 $ 0.040 $ 0.025 $ 0.010
Distributions from net investment
income................................. (0.075) (0.058) (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 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investment Return (b)............. 7.6% 5.9% 3.84% 3.73% 4.29% 2.53% 1.4%
Ratios and supplemental data:
Net assets at end of the period (in
000's)................................. $13,143 $11,628 $83,498 $128,308 $99,151 $109,936 $3,478
Ratio of net investment income to
average net assets:
With expense waivers and reductions
(a).................................. 7.60% 5.72% 3.75% 3.64% 4.19% 2.65% 1.42%
Without expense waivers and reductions
(a).................................. 7.17% --% 3.45% 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% 1.73% 1.74% 1.72% 1.67% 1.75%
Without expense waivers and reductions
(a).................................. 1.62% --% 2.03% 2.05% 2.00% 1.92% 2.31%
</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.
(a) Annualized for periods of less than one year.
(b) Not annualized.
------------------------------
<TABLE>
<CAPTION>
AVERAGE MONTHLY
NUMBER OF
AVERAGE AMOUNT REGISTRANT'S
AMOUNT OF DEBT OF DEBT SHARES
YEAR OUTSTANDING AT OUTSTANDING OUTSTANDING
ENDED END OF PERIOD DURING THE PERIOD DURING THE PERIOD
----------- --------------------- ----------------------- ------------------
<S> <C> <C> <C> <C>
GT Global Dollar Fund............... 1997 $ 0 $ 0 282,435,505
<CAPTION>
AVERAGE AMOUNT OF
DEBT PER SHARE
DURING THE PERIOD
-------------------
<S> <C>
GT Global Dollar Fund............... $ 0.0000
</TABLE>
Prospectus Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
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, a division of
The McGraw-Hill Companies, Inc. ("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 Fannie
Mae (also known as the Federal National Mortgage Association), Freddie Mac
(also known as the Federal Home Loan Mortgage Corporation) and the Tennessee
Valley Authority; and similar U.S.-dollar denominated instruments of foreign
governments, their agencies, authorities and instrumentalities.
/ / OBLIGATIONS OF U.S. AND NON-U.S. BANKS, including certificates of deposit,
bankers' acceptances and similar instruments, when such banks have total
assets at the time of purchase equal to at least $1 billion.
/ / INTEREST-BEARING DEPOSITS IN U.S. COMMERCIAL AND SAVINGS BANKS having total
assets of $1 billion or less, in principal amounts at each such bank not
greater than are insured by an agency of the U.S. government, provided that
the aggregate amount of such deposits (including interest earned) does not
exceed 5% of the Fund's assets.
/ / COMMERCIAL PAPER AND OTHER SHORT-TERM DEBT OBLIGATIONS OF U.S. AND FOREIGN
COMPANIES, rated at least A-1 by S&P 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
Prospectus Page 8
<PAGE>
GT GLOBAL DOLLAR FUND
(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 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
Prospectus Page 9
<PAGE>
GT GLOBAL DOLLAR FUND
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 10
<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. The third class of shares of the Fund, the Advisor
Class, may be offered through a separate prospectus only to certain investors.
Class A shares of the Fund may be purchased through Financial Institutions, some
of which may charge the investor a transaction fee. Some of these Financial
Institutions (or their designees) may be authorized to accept purchase orders on
behalf of the Fund. All purchase orders will be executed at the public offering
price next determined after the purchase order is received. Orders received by
the Transfer Agent 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. Orders received by authorized institutions (or their designees) before the
close of regular trading on the NYSE on a Business Day will be deemed to have
been received by the Fund on such day and will be effected that day, provided
that such orders are transmitted to the Transfer Agent prior to the time set for
receipt of such orders. A "Business Day" is any date Monday through Friday on
which the NYSE is open for business. Financial Institutions are responsible for
forwarding the investor's order to the Transfer Agent so that it will be
received prior to the required time.
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 (the "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). The minimum for additional purchases is $100
($25 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 that 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 judgment, a market-timing strategy or otherwise engage in
excessive trading. See "How to Make Exchanges -- Limitations on Purchase Orders
and Exchanges."
PURCHASES THROUGH GT GLOBAL. After an initial investment is made and a
shareholder account is established through a Financial Institution, at the
investor's option, subsequent purchases may be made directly through GT Global.
See "Shareholder Account Manual." Investors may also make an initial investment
in the Fund and establish a shareholder account directly through GT Global 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 investment is considered received when
the Transfer Agent is notified that the bank wire has
Prospectus Page 11
<PAGE>
GT GLOBAL DOLLAR FUND
been credited to the Fund. The investor is responsible for providing prior
telephonic or facsimile notice to the Transfer Agent that a bank wire is being
sent. An investor's bank may charge a service fee for wiring money to the Fund.
The Transfer Agent currently does not charge a service fee for facilitating wire
purchases, but reserves the right to do so in the future. Investors desiring to
open an account by bank wire should call the Transfer Agent at the appropriate
toll-free number provided in the Shareholder Account Manual to obtain an account
number and detailed instructions.
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.
DIFFERENCES BETWEEN THE CLASSES. The primary differences between the classes of
the Fund's shares offered through this Prospectus lie 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 Fund and have the same rights, except that each
class bears the separate expenses of its 12b-1 distribution plan and has
exclusive voting rights with respect to such plan, each class can experience
other minor expense differences and, in addition to different sales charges,
each class has a separate exchange privilege. 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 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 will be lower than the per share dividends on Class A shares as a
result of the higher 12b-1 service and distribution fees applicable to Class B
shares.
The decision as to which class of shares is more beneficial to an investor
depends on the amount invested, the intended length of time the investment is
held and the investor's personal situation. Consult your financial adviser.
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 the account and (ii) the account holder pays such
person as compensation for its advice and other services an annual fee of at
least .50% of the assets in the account; (c) any account with assets of at least
$10,000 if (i) the account is established under a "wrap fee" program and (ii)
the account holder pays the sponsor of the program an annual fee of at least
.50% of the assets in the account; (d) accounts advised by one of the companies
composing or affiliated with Liechtenstein Global Trust; and (e) any of those
companies.
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
GT Global Mutual Fund(s) in a shareholder's Personal Portfolio have appreciated
during a rebalancing period, the Program will result in shares of GT Global
Mutual
Prospectus Page 12
<PAGE>
GT GLOBAL DOLLAR FUND
Fund(s) that have appreciated most during the period being exchanged for shares
of GT Global Mutual 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 FEDERAL INCOME 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 Financial Institutions
may charge a fee for establishing accounts relating to the Program. Investors
should contact their Financial Institution 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 other GT Global
Mutual Fund, 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 another GT Global Mutual Fund; 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. See "Dividends
and Federal Income Taxation." In addition to the Fund, the GT Global Mutual
Funds currently include:
-- GTGLOBAL AMERICA MID CAP GROWTH FUND
-- GT GLOBAL AMERICA SMALL CAP GROWTH FUND
-- GT GLOBAL AMERICA VALUE FUND
-- GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
-- GTGLOBAL DEVELOPING MARKETS 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 DIMENSION 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 Financial
Institution or the Transfer Agent to request the prospectus of the other GT
Global Mutual Fund(s) being considered. Certain Financial Institutions may
charge a fee for handling exchanges.
EXCHANGES BY TELEPHONE. A shareholder may give exchange information to the
shareholder's Financial Institution 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 shareholder's
Financial Institution 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 reserve 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 reserve 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 may be redeemed without charge at net asset
value. Class B shares may be redeemed at their net asset value (subject to any
applicable contingent deferred sales charge ("CDSC")). A shareholder's holding
period of Class B shares of the Fund, as well as his or her holding period of
Class B shares of any other GT Global Mutual Fund exchanged to purchase Class B
shares of the Fund, will be credited for purposes of measuring the CDSC. Except
for investors participating in the Program, Class B shares may be obtained only
through an exchange of Class B shares of other GT Global Mutual Funds.
Shareholders with accounts at broker/dealers that sell shares of the Fund 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, 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 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
the 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 purchased 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 or her 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 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.
Class B shares that are acquired pursuant to the exchange privilege during a
tender offer by GT Global Floating Rate Fund, Inc. ("Floating Rate
Prospectus Page 15
<PAGE>
GT GLOBAL DOLLAR FUND
Fund") will be subject, in lieu of the CDSC described above, to a CDSC
equivalent to the early withdrawal charge on the common stock of the Floating
Rate Fund. The purchase of Class B shares of the Fund will be deemed to have
occurred at the time of the initial purchase of the Floating Rate Fund's common
stock.
CONTINGENT DEFERRED SALES CHARGE WAIVERS. The CDSC will be waived 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 FINANCIAL INSTITUTIONS. Shareholders with accounts at
Financial Institutions which sell shares of the Fund may submit redemption
requests to such Financial Institutions. If the shares are held in the name of
the Financial Institution, the redemption must be made through the Financial
Institution. Financial Institutions may honor a redemption request either by
repurchasing shares from a redeeming shareholder at the net asset value next
computed after the Financial Institution 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 Financial Institution, credited to
the shareholder's account at the Financial Institution at the election of the
shareholder. Financial Institutions may impose a service charge for handling
redemption transactions placed through them and may have other requirements
concerning redemptions. Accordingly, shareholders should contact their Financial
Institution 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 (less any applicable contingent deferred sales
charge for Class B shares) next determined after the Transfer Agent has received
the request or after an Authorized Institution has received the request,
provided that the request is transmitted to the Transfer Agent prior to the time
set for receipt of such redemption requests. Redemptions will only be effected
if the request is received in good order and accompanied by any required
supporting documentation. Redemption requests will not require a signature
guarantee if the redemption proceeds are to be sent either: (i) to the redeeming
shareholder at the shareholder's address of record as maintained by the Transfer
Agent, provided the shareholder's address of record has not been changed in the
Prospectus Page 16
<PAGE>
GT GLOBAL DOLLAR FUND
preceding fifteen 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.
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 $500. 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
FIFTEEN 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 fifteen days, a signature guarantee
is required.
CHECKWRITING. Shareholders may redeem Class A shares 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, it 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 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 because of "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
Prospectus Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
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.
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 CDSC 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 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 Financial Institution or the Transfer Agent for more information.
Systematic withdrawal plans offered by Financial Institutions may have different
features. Accordingly, shareholders should contact their Financial Institution
for more details.
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 Financial Institution 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 the Transfer Agent 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 Financial Institutions. Shareholders also may place such orders
directly through GT Global in accordance with this Manual. See "How to Invest,"
"How to Make Exchanges" and "How to Redeem Shares" for more information.
The Fund's Transfer Agent is GT GLOBAL INVESTOR SERVICES, INC.
INVESTMENTS BY MAIL
Send completed Account Application (if initial purchase) or letter stating Fund
name, class of shares, shareholder's registered name and account number (if
subsequent purchase) with a check to:
GT Global Mutual Funds
P.O. Box 7345
San Francisco, CA 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 A COMPLETED ACCOUNT APPLICATION
CONTAINING THE INVESTOR'S CERTIFIED TAXPAYER IDENTIFICATION NUMBER MUST BE SENT
TO 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 the Transfer Agent 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 Mutual Funds
P.O. Box 7893
San Francisco, CA 94120-7893
REDEMPTIONS BY TELEPHONE
Call the Transfer Agent 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 Mutual Funds
P.O. Box 7893
San Francisco, CA 94120-7893
OVERNIGHT MAIL
Overnight mail services do not deliver to post office boxes. To send purchase,
exchange or redemption orders by overnight mail, follow the above instructions
but send to the following address:
GT Global Investor Services, Inc.
California Plaza
2121 N. California Boulevard
Suite 450
Walnut Creek, CA 94596
ADDITIONAL QUESTIONS
Shareholders with additional questions regarding purchase, exchange and
redemption procedures should call the Transfer Agent 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 it will be able to do
so. 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 the
per share dividends on Class A shares as a result of the higher 12b-1 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 12b-1 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/dealer. 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/dealer must notify the Transfer Agent at least fifteen Business Days
prior to the payment date. Shares earn dividends on the day of redemption. THE
FEDERAL INCOME TAX STATUS OF DIVIDENDS IS THE SAME WHETHER THEY ARE RECEIVED IN
CASH OR REINVESTED IN ADDITIONAL SHARES.
The Fund does not expect to realize long-term capital gain and thus does not
anticipate payment of any capital gain distributions.
TAXES. The Fund intends to continue to qualify for treatment as a regulated
investment company under the Code. In each taxable year that the Fund so
qualifies, the Fund (but not its shareholders) will be relieved of federal
income tax on that part of its investment company taxable income (consisting of
net investment income and any net short-term
Prospectus Page 20
<PAGE>
GT GLOBAL DOLLAR FUND
capital gain) that is distributed to its shareholders. Those 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 income 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 (1) 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 (2) 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 the Manager as
the Fund's investment manager and administrator include 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 Funds and 0.02% to the assets in
excess of $5 billion and allocating the result according to the Fund's average
daily net assets.
The Manager provides investment management and/or administration services to the
GT Global 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,
compose Liechtenstein Global Trust ("LGT"). LGT is a provider of global asset
management and private banking products and services to individual and
institutional investors. LGT is controlled by the Prince of Liechtenstein
Foundation, which serves as a parent organization for the various business
enterprises of the Princely Family of Liechtenstein. The principal business
address of the Prince of
Prospectus Page 21
<PAGE>
GT GLOBAL DOLLAR FUND
Liechtenstein Foundation is Herrengasse 12, FL-9490, Vaduz, Liechtenstein.
On January 30, 1998, LGT, the indirect parent organization of Chancellor LGT
Asset Management, Inc. (the "Manager"), entered into an agreement with AMVESCAP
PLC ("AMVESCAP") pursuant to which AMVESCAP will acquire LGT's Asset Management
Division, which includes the Manager. AMVESCAP is a holding company formed in
1997 by the merger of INVESCO PLC and A I M Management Group Inc. Consummation
of the transaction is subject to a number of contingencies, including regulatory
approvals. Because the transaction would constitute an assignment of the
Company's investment management agreement under the Investment Company Act of
1940 (and, therefore, a termination of such agreement), it is anticipated that
the approval of the Company's Board of Directors and the Company's shareholders
of new investment management arrangements will be sought. The Manager
anticipates that the investment management arrangements will be presented for
shareholder approval, and anticipates that the transaction will close, on or
about May 31, 1998.
As of December 31, 1997, the Manager and its worldwide asset management
affiliates managed approximately $54 billion in assets. In the United States, as
of December 31, 1997, the Manager managed or administered approximately $8
billion of assets of the GT Global Mutual Funds. As of December 31, 1997, assets
entrusted to Liechtenstein Global Trust totaled approximately $79 billion.
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 each Fund's
investment objective.
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>
Cheng-Hock Lau* Portfolio Manager since Mr. Lau has been Chief Investment Officer for Global Fixed
New York 1998 Income for the Manager since November 1996, and was a
Senior Portfolio Manager for global/international fixed
income for the Manager from July 1995 to November 1996.
Prior thereto, Mr. Lau was a Senior Vice President and
Senior Portfolio Manager for Fiduciary Trust Company
International from 1993 to 1995, and Vice President at
Bankers Trust Company from 1991 to 1993.
Heide Koch* Portfolio Manager since Ms. Koch has been a Portfolio Manager for the Manager since
New York 1997 1991.
</TABLE>
- --------------
* On October 31, 1996, Chancellor Capital Management, Inc. ("Chancellor
Capital") merged with LGT Asset Management, Inc. (San Francisco), and the
resulting entity was renamed Chancellor LGT Asset Management, Inc. Prior to
October 31, 1996, Mr. Lau and Ms. Koch were employees only 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, CA
94111.
Prospectus Page 22
<PAGE>
GT GLOBAL DOLLAR FUND
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 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.
As of December 31, 1997, unreimbursed distribution expenses for the Fund
amounted to approximately $2,000. Such amount represented approximately .0007%
of the net assets of the Fund.
GT Global's service and distribution expenses covered by the plan 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 covered by 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.
Prospectus Page 23
<PAGE>
GT GLOBAL DOLLAR FUND
OTHER INFORMATION
- --------------------------------------------------------------------------------
STATEMENTS AND REPORTS TO SHAREHOLDERS. Shareholders receive monthly statements
from the Transfer Agent detailing account transactions, such as an additional
investment, redemption or the payment of a dividend. 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 its financial
statements. In addition, the federal income status of dividends paid by the Fund
to its shareholders is reported after the end of each calendar year on Form
1099-DIV. Under certain circumstances, duplicate mailings of the foregoing
reports to the same household may be consolidated.
ORGANIZATION OF THE COMPANY. 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 may, at its discretion,
establish additional funds, each corresponding to a distinct investment
portfolio and a distinct series of the Company's common stock.
Pursuant to the Company's Articles of Amendment and Restatement, the Company may
issue two billion shares. Of this number, one billion five hundred million
shares have been classified as shares of the Fund; five hundred million shares
have been classified as Class A shares, five hundred million have been
classified as Class B shares, and 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 in 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 selection of the Company's independent accountants.
Normally there will be no annual meeting of shareholders in any year, 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's funds 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, CA 94111.
Prospectus Page 24
<PAGE>
GT GLOBAL DOLLAR FUND
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 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, MA
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, MA 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
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL DOLLAR FUND
GT GLOBAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY GT GLOBAL FUND,
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 ADVISER OR CALL GT GLOBAL DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL NEW DIMENSION FUND
Captures global growth opportunities by investing directly in the six GT Global
Theme Funds
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity for U.S. investors by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
GT GLOBAL DEVELOPING MARKETS FUND
Invests in debt and equity securities of developing market issuers
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND
SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in the growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in 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 U.S. companies believed to be undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Invests in global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in a portfolio of emerging market debt securities
GT GLOBAL FLOATING RATE FUND
Invests primarily in senior secured floating rate loans that have the potential
to achieve a high level of current income
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: ADVISOR CLASS
PROSPECTUS -- APRIL 1, 1998
- --------------------------------------------------------------------------------
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.
Shares offered by this Prospectus are available for purchase only by certain
investors and are offered at net asset value without the imposition of a front-
end or contingent deferred sales charge and without a Rule 12b-1 charge.
This Prospectus sets forth concisely the information an investor should know
before investing and should be read carefully and retained for future reference.
A Statement of Additional Information, dated April 1, 1998, 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, CA 94111, or calling (800) 824-1580. It is
also available, along with other related materials, on the SEC's Internet web
site (http://www.sec.gov).
An investment in the Fund offers the following advantages:
/ / Professional Management by a Leading Manager with Offices in the World's
Major Markets
/ / Daily Dividends
/ / Automatic Dividend Reinvestment at No Sales Charge
/ / 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, NOR HAS THE SECURITIES AND EXCHANGE 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...................................................................... 5
Investment Objective and Policies......................................................... 7
How to Invest............................................................................. 10
How to Make Exchanges..................................................................... 12
How to Redeem Shares...................................................................... 13
Shareholder Account Manual................................................................ 15
Calculation of Net Asset Value............................................................ 16
Dividends and Federal Income Taxation..................................................... 16
Management................................................................................ 17
Other Information......................................................................... 19
</TABLE>
Prospectus Page 2
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
- ------------------------------------------------------------
The following summary is qualified in its entirety by the more detailed
information appearing in the body of this Prospectus. Cross-references in the
summary are to headings 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 $79 billion in total assets as of December 31, 1997.
The Manager and its worldwide asset management affiliates maintain
investment offices in Frankfurt, Hong Kong, London, New York, San
Francisco, Singapore, Sydney, Tokyo and Toronto. See "Management."
Advisor Class shares are offered through this Prospectus to (a)
trustees or other fiduciaries purchasing shares for employee
benefit plans which are sponsored by organizations which have at
Advisor Class Shares: least 1,000 employees; (b) any account with assets of at least
$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 0.50% on the assets in the account
("Advisory 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 0.50% on the assets in the
account ("Wrap Fee 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.
Shares Available Through: Advisor Class shares are available through Financial Advisers (as
defined herein) who have entered into agreements with the Fund's
distributor, GT Global, Inc. ("GT Global") or certain of its
affiliates. See "How to Invest" and "Shareholder Account Manual."
Exchange Privileges: Advisor Class shares may be exchanged for Advisor Class shares of
other GT Global Mutual Funds, which are open-end management
investment companies advised and/or administered by the Manager.
See "How to Make Exchanges" and "Shareholder Account Manual."
Redemptions: Shares may be redeemed through the Fund's transfer agent, GT
Global Investor Services, Inc. ("Transfer Agent"). See "How to
Redeem Shares" and "Shareholder Account Manual."
Dividends: Dividends are declared daily and paid monthly from available net
investment income and any realized net short-term capital gain.
Reinvestment: Dividends are reinvested automatically in Advisor Class shares of
the Fund.
Yield: Calculated daily and may be obtained by calling 1-800-223-2138.
</TABLE>
Prospectus Page 3
<PAGE>
GT GLOBAL DOLLAR FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
SUMMARY OF INVESTOR COSTS. The expenses and maximum transaction costs associated
with investing in the Advisor Class shares of the Fund are reflected in the
following tables (1):
<TABLE>
<CAPTION>
ADVISOR
CLASS
-----------
<S> <C>
SHAREHOLDER TRANSACTION COSTS:
Sales charge on purchases of shares......................................................................... None
Sales charges on reinvested distributions to shareholders................................................... None
Maximum contingent deferred sales charge (as a % of net asset value at time of purchase or sale, whichever
is less).................................................................................................. None
Redemption charges.......................................................................................... None
Exchange fees:
-- On first four exchanges each year...................................................................... None
-- On each additional exchange............................................................................ $7.50
ANNUAL FUND OPERATING EXPENSES (2):
(AS A % OF AVERAGE NET ASSETS)
Investment management and administration fees (after reimbursements)........................................ 0.50%
12b-1 distribution and service fees......................................................................... None
Other expenses (after waivers).............................................................................. 0.50%
-----------
Total Fund Operating Expenses................................................................................. 1.00%
-----------
-----------
</TABLE>
HYPOTHETICAL EXAMPLE OF EFFECT OF EXPENSES:
An investor would directly or indirectly pay the following expenses at the end
of the periods shown on a $1,000 investment in the Fund, assuming a 5% annual
return:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
----- ----------- ----- -----
<S> <C> <C> <C> <C>
Advisor Class shares..................................................... $ 10 $ 32 $ 55 $ 123
</TABLE>
- --------------
(1) THESE TABLES ARE INTENDED TO ASSIST INVESTORS IN UNDERSTANDING THE VARIOUS
COSTS AND EXPENSES ASSOCIATED WITH INVESTING IN THE FUND. THE "HYPOTHETICAL
EXAMPLE" SET FORTH ABOVE IS NOT A REPRESENTATION OF PAST OR FUTURE EXPENSES.
THE FUND'S ACTUAL EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN. The above
table and the assumption in the Hypothetical Example of a 5% annual return
are required by regulation of the 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) Expenses are based on the Fund's fiscal year ended December 31, 1997. "Other
Expenses" include custody, transfer agency, legal, audit and other operating
expenses. Effective January 1, 1998, the Manager and GT Global have
undertaken to limit the Fund's expenses (exclusive of brokerage commissions,
taxes, interest and extraordinary expenses) to the annual rate of 1.00% of
the average daily net assets of the Fund's Advisor Class shares. See
"Management" herein and the Statement of Additional Information for more
information. Without reimbursements, "Investment management and
administration fees," "Other Expenses" and "Total Fund Operating Expenses"
would have been 0.50%, 0.53% and 1.03%, respectively, for the Fund.
Investors purchasing Advisor Class shares through financial planners, trust
companies, bank trust departments or registered investment advisers, or
under a "wrap fee" program, will be subject to additional fees charged by
such entities or by the sponsors of such programs. Where any account advised
by one of the companies composing or affiliated with Liechtenstein Global
Trust invests in Advisor Class shares of the Fund, such account shall not be
subject to duplicative advisory fees.
Prospectus Page 4
<PAGE>
GT GLOBAL DOLLAR FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below provides condensed financial information concerning income and
capital changes for one Class A and Advisor Class share of the Fund 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, 1997, 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, 1988 to 1991 was audited
by other auditors that served as the Fund's independent accountants for those
periods.
<TABLE>
<CAPTION>
CLASS A+
----------------------------------------------------------------------------------
YEAR ENDED DEC. 31,
----------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.045 $ 0.044 $ 0.050 $ 0.032 $ 0.022 $ 0.028 $ 0.051
Distributions from net investment
income................................. (0.045) (0.044) (0.050) (0.032) (0.022) (0.028) (0.051)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value (unchanged during the
period)................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investment Return (b)............. 4.62% 4.50% 5.08% 3.30% 2.2% 2.8% 5.1%
Ratios and supplemental data:
Net assets at end of the period (in
000's)................................. $186,611 $392,623 $183,761 $320,858 $87,822 $81,674 $70,295
Ratio of net investment income to
average net assets:
With expense waivers and reductions
(a).................................. 4.50% 4.39% 4.94% 3.40% 2.17% 2.78% 5.10%
Without expense waivers and reductions
(a).................................. 4.20% 4.08% 4.66% 3.15% 1.46% 2.47% 4.90%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 0.98% 0.99% 0.97% 0.92% 1.00% 1.25% 1.25%
Without expense waivers and reductions
(a).................................. 1.28% 1.30% 1.25% 1.17% 1.72% 1.56% 1.45%
</TABLE>
- --------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
(a) Annualized for periods of less than one year.
(b) Not annualized.
Prospectus Page 5
<PAGE>
GT GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
ADVISOR CLASS++
CLASS A+ ----------------------------------
----------------------------------
YEAR ENDED JUNE 1,
YEAR ENDED DEC. 31, DEC. 31, 1995 TO
---------------------------------- ---------------------- DEC. 31,
1990 1989 1988 1997 1996 1995
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income................... $ 0.069 $ 0.075 $ 0.058 $ 0.045 $ 0.044 $ 0.030
Distributions from net investment
income................................. (0.069) (0.075) (0.058) (0.045) (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 (b)............. 6.9% 7.6% 5.9% 4.61% 4.50% 2.92%
Ratios and supplemental data:
Net assets at end of the period (in
000's)................................. $123,218 $13,143 $11,628 $6,780 $14,978 $2,096
Ratio of net investment income to
average net assets:
With expense waivers and reductions
(a).................................. 6.95% 7.60% 5.72% 4.50% 4.39% 4.94%
Without expense waivers and reductions
(a).................................. 6.64% 7.17% --% 4.45% 4.33% 4.91%
Ratio of expenses to average net assets:
With expense waivers and reductions
(a).................................. 1.25% 1.19% 1.03% 0.98% 0.99% 0.97%
Without expense waivers and reductions
(a).................................. 1.56% 1.62% --% 1.03% 1.05% 1.00%
</TABLE>
- --------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
(a) Annualized for periods of less than one year.
(b) Not annualized.
------------------------------
<TABLE>
<CAPTION>
AVERAGE MONTHLY
NUMBER OF
AVERAGE AMOUNT REGISTRANT'S
AMOUNT OF DEBT OF DEBT SHARES
YEAR OUTSTANDING AT OUTSTANDING OUTSTANDING
ENDED END OF PERIOD DURING THE PERIOD DURING THE PERIOD
----------- --------------------- ----------------------- ------------------
<S> <C> <C> <C> <C>
GT Global Dollar Fund............... 1997 $ 0 $ 0 282,435,505
<CAPTION>
AVERAGE AMOUNT OF
DEBT PER SHARE
DURING THE PERIOD
-------------------
<S> <C>
GT Global Dollar Fund............... $ 0.0000
</TABLE>
Prospectus Page 6
<PAGE>
GT GLOBAL DOLLAR FUND
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, a division of
The McGraw-Hill Companies, Inc. ("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 Fannie
Mae (also known as the Federal National Mortgage Association), Freddie Mac
(also known as the Federal Home Loan Mortgage Corporation) and the Tennessee
Valley Authority; and similar U.S.-dollar denominated instruments of foreign
governments, their agencies, authorities and instrumentalities.
/ / OBLIGATIONS OF U.S. AND NON-U.S. BANKS, including certificates of deposit,
bankers' acceptances and similar instruments, when such banks have total
assets at the time of purchase equal to at least $1 billion.
/ / INTEREST-BEARING DEPOSITS IN U.S. COMMERCIAL AND SAVINGS BANKS having total
assets of $1 billion or less, in principal amounts at each such bank not
greater than are insured by an agency of the U.S. government, provided that
the aggregate amount of such deposits (including interest earned) does not
exceed 5% of the Fund's assets.
/ / COMMERCIAL PAPER AND OTHER SHORT-TERM DEBT OBLIGATIONS OF U.S. AND FOREIGN
COMPANIES, rated at least A-1 by S&P 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
Prospectus Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
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 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
Prospectus Page 8
<PAGE>
GT GLOBAL DOLLAR FUND
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 9
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GT GLOBAL DOLLAR FUND
HOW TO INVEST
- --------------------------------------------------------------------------------
GENERAL. Advisor Class shares are offered through this Prospectus to (a)
trustees or other fiduciaries purchasing shares for employee benefit plans which
are sponsored by organizations which have at least 1,000 employees; (b) any
account with assets of at least $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 ("Advisory 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 ("Wrap Fee 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. Financial planners, trust companies, bank trust
companies and registered investment advisers referenced in subpart (b) and
sponsors of "wrap fee" programs referenced in subpart (c) are collectively
referred to as "Financial Advisers." Investors in Wrap Fee Accounts and Advisory
Accounts may only purchase Advisor Class shares through Financial Advisers who
have entered into agreements with GT Global and certain of its affiliates.
Investors may be charged a fee by their agent or broker if they effect
transactions other than through a dealer.
All purchase orders will be executed at the public offering price next
determined after the purchase order is received. Orders received by GT Global
before the close of regular trading on the New York Stock Exchange ("NYSE")
(currently 4:00 p.m. Eastern Time, unless weather, equipment failure or other
factors contribute to an earlier closing time) on any Business Day will be
executed at the Fund's net asset value per share determined that day, provided
Federal Funds, as defined below, become available to the Fund that day. A
"Business Day" is any day Monday through Friday on which the NYSE is open for
business. 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
that 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 judgment, a market-timing
strategy or otherwise engage in excessive trading. See "How to Make Exchanges --
Limitations on Purchase Orders and Exchanges."
Fiduciaries and Financial Advisers may be required to provide information
satisfactory to GT Global concerning their eligibility to purchase Advisor Class
shares. For specific information on opening an account, please contact your
Financial Adviser or GT Global.
PURCHASES BY BANK WIRE. Shares of the Fund may also be purchased through GT
Global by bank wire. Bank wire purchases will be effected at the net asset value
next determined after the bank wire is received. A wire investment is considered
received when the Transfer Agent is notified that the bank wire has been
credited to a Fund. Prior telephonic or facsimile notice must be provided to the
Transfer Agent that a bank wire is being sent. A bank may charge a service fee
for wiring money to the Fund. The Transfer Agent currently does not charge a
service fee for facilitating wire purchases, but reserves the right to do so in
the future. For more information, please refer to the Shareholder Account Manual
in this Prospectus.
CERTIFICATES. In the interest of economy and convenience, the Fund does not
issue physical certificates representing its shares. Shares of the Fund are
recorded on a register by the Transfer Agent, and shareholders have the same
rights of ownership as if certificates had been issued to them.
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
Prospectus Page 10
<PAGE>
GT GLOBAL DOLLAR FUND
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 of one or more other GT Global Mutual Funds in the
shareholder's Personal Portfolio. See "How to Make Exchanges." If shares of the
GT Global Mutual Fund(s) in a shareholder's Personal Portfolio have appreciated
during a rebalancing period, the Program will result in shares of GT Global
Mutual Fund(s) that have appreciated most during the period being exchanged for
shares of GT Global Mutual 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 FEDERAL INCOME 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 brokers/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 11
<PAGE>
GT GLOBAL DOLLAR FUND
HOW TO MAKE EXCHANGES
- --------------------------------------------------------------------------------
Advisor Class shares of the Fund may be exchanged for Advisor Class shares of
any other GT Global Mutual Fund based on their respective net asset values,
provided that the registration remains identical. See "Dividends and Federal
Income Taxation." In addition to the Fund, the GT Global Mutual Funds currently
include:
-- GTGLOBAL AMERICA MID CAP GROWTH FUND
-- GT GLOBAL AMERICA SMALL CAP GROWTH FUND
-- GT GLOBAL AMERICA VALUE FUND
-- GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
-- GTGLOBAL DEVELOPING MARKETS 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 DIMENSION 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. 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.
EXCHANGES BY TELEPHONE. A shareholder may give exchange information to the
shareholder's Financial Adviser. 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.
Investors in Wrap Fee Accounts and Advisory Accounts interested in making an
exchange should contact their Financial Advisers to request the prospectus of
the other GT Global Mutual Fund(s) being considered. Other investors should
contact GT Global.
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 reserve 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 reserve 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 12
<PAGE>
GT GLOBAL DOLLAR FUND
HOW TO REDEEM SHARES
- --------------------------------------------------------------------------------
Redemption requests may be transmitted to the Transfer Agent by telephone or by
mail, in accordance with the instructions provided in the Shareholder Account
Manual. All redemptions will be effected at the net asset value next determined
after the Transfer Agent has received the request and any required supporting
documentation. Redemption requests will not require a signature guarantee if the
redemption proceeds are to be sent either: (i) to the redeeming shareholder at
the shareholder's address of record as maintained by the Transfer Agent,
provided the shareholder's address of record has not been changed in the
preceding fifteen days; or (ii) directly to a pre-designated bank, savings and
loan or credit union account ("Pre-Designated Account"). ALL OTHER REDEMPTION
REQUESTS MUST BE ACCOMPANIED BY A SIGNATURE GUARANTEE OF THE REDEEMING
SHAREHOLDER'S SIGNATURE. A signature guarantee can be obtained from any bank,
U.S. trust company, a member firm of a U.S. stock exchange or a foreign branch
of any of the foregoing or other eligible guarantor institution. A notary public
is not an acceptable guarantor.
Shareholders with Pre-Designated Accounts should request that redemption
proceeds be sent either by bank wire or by check. The minimum redemption amount
for a bank wire is $500. 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
FIFTEEN 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 fifteen days, a signature guarantee
is required.
OTHER IMPORTANT REDEMPTION INFORMATION. A request for redemption will not be
processed until all of the necessary documentation has been received in good
order. A shareholder in doubt about what documents are required should contact
his or her Financial Adviser.
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
Prospectus Page 13
<PAGE>
GT GLOBAL DOLLAR FUND
payment, the Fund may delay payment of redemption proceeds until the Transfer
Agent has assured itself that good payment has been collected for the purchase
of the shares. In the case of purchases by check, it can take up to 10 business
days to confirm that the check has cleared and good payment has been received.
Redemption proceeds will not be delayed when shares have been paid for by wire
or when the investor's account holds a sufficient number of shares for which
funds already have been collected.
The Fund and GT Global each reserves the right to redeem the shares of any
Advisory Account or Wrap Fee Account if the amount invested in GT Global Mutual
Funds through such account is reduced to less than $500 through redemptions or
other action by the shareholder. Written notice will be given to the shareholder
at least 60 days prior to the date fixed for such redemption, during which time
the shareholder may increase the amount invested in GT Global Mutual Funds
through such account to an aggregate amount of $500 or more.
For additional information on how to redeem shares, see the Shareholder Account
Manual in this Prospectus, or contact your Financial Adviser.
Prospectus Page 14
<PAGE>
GT GLOBAL DOLLAR FUND
SHAREHOLDER ACCOUNT MANUAL
- --------------------------------------------------------------------------------
Purchase, exchange and redemption orders should be placed in accordance with
this Manual. It is recommended that investors in Wrap Fee Accounts and Advisory
Accounts make such orders through their Financial Advisers. PLEASE BE CAREFUL TO
REFERENCE "ADVISOR CLASS" IN ALL INSTRUCTIONS PROVIDED. See "How to Invest,"
"How to Make Exchanges" and "How to Redeem Shares" for more information.
The Fund's Transfer Agent is GT GLOBAL INVESTOR SERVICES, INC.
INVESTMENTS BY MAIL
Send completed Account Application (if initial purchase) or letter stating Fund
name, class of shares, shareholder's registered name and account number (if
subsequent purchase) with a check to:
GT Global Mutual Funds
P.O. Box 7345
San Francisco, CA 94120-7345
INVESTMENTS BY BANK WIRE
A new account may be opened by calling 1-800-223-2138 to obtain an account
number. WITHIN SEVEN DAYS OF PURCHASE A COMPLETED ACCOUNT APPLICATION CONTAINING
THE INVESTOR'S CERTIFIED TAXPAYER IDENTIFICATION NUMBER MUST BE SENT TO 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 the Transfer Agent 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 Mutual Funds
P.O. Box 7893
San Francisco, CA 94120-7893
REDEMPTIONS BY TELEPHONE
Call the Transfer Agent 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 Mutual Funds
P.O. Box 7893
San Francisco, CA 94120-7893
OVERNIGHT MAIL
Overnight mail services do not deliver to post office boxes. To send purchase,
exchange or redemption orders by overnight mail, follow the above instructions
but send to the following address:
GT Global Investor Services, Inc.
California Plaza
2121 N. California Boulevard
Suite 450
Walnut Creek, CA 94596
ADDITIONAL QUESTIONS
Shareholders with additional questions regarding purchase, exchange and
redemption procedures should call the Transfer Agent at 1-800-223-2138.
Prospectus Page 15
<PAGE>
GT GLOBAL DOLLAR FUND
CALCULATION OF NET ASSET VALUE
- --------------------------------------------------------------------------------
The Fund intends to use its best efforts to maintain its net asset value at
$1.00 per share. There can be no assurance, however, that it will be able to do
so. 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 Advisor Class shares will be higher
than the per share dividends on shares of other classes of the Fund as a result
of the 12b-1 service and distribution fees applicable to those shares.
Dividends are automatically reinvested in Advisor Class shares unless the
investor has elected to receive them in cash. Cash payments may be elected on
the Account Application located at the end of this Prospectus or through the
investor's broker/ dealer. Reinvestments in Advisor Class shares of another GT
Global Mutual Fund may only be directed to an account with an identical
shareholder registration and account number. An election to receive dividends in
additional shares or in cash may be changed at any time, but, to be effective
for a particular dividend, the investor or the investor's broker/dealer must
notify the Transfer Agent at least fifteen Business Days prior to the payment
date. Shares earn dividends on the day of redemption. THE FEDERAL INCOME TAX
STATUS OF DIVIDENDS IS THE SAME WHETHER THEY ARE RECEIVED IN CASH OR REINVESTED
IN ADDITIONAL SHARES.
The Fund does not expect to realize long-term capital gain and thus does not
anticipate payment of any capital gain distributions.
TAXES. The Fund intends to continue to qualify for treatment as a regulated
investment company under the Internal Revenue Code of 1986, as amended. In each
taxable year that the Fund so qualifies, the Fund (but not its shareholders)
will be relieved of federal income tax on that part of its investment company
taxable income (consisting of net investment income and any net short-term
capital gain) that is distributed to its shareholders. Those distributions are
taxable to the Fund's shareholders as ordinary income to the extent of its
Prospectus Page 16
<PAGE>
GT GLOBAL DOLLAR FUND
earnings and profits, whether they are received in cash or reinvested in
additional shares.
The Fund provides federal income 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 (1) 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 (2) 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 the Manager as
the Fund's investment manager and administrator include 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 has
voluntarily undertaken to limit the Fund's expenses (exclusive of brokerage
commissions, interests, taxes and extraordinary expenses) to the annual rate of
1.00% of the average daily net assets of the Fund's Advisor Class Shares. 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 Funds and 0.02% to the assets in
excess of $5 billion and allocating the result according to the Fund's average
daily net assets.
The Manager provides investment management and/or administration services to the
GT Global 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,
compose Liechtenstein Global Trust ("LGT"). LGT is a provider of global asset
management and private banking products and services to individual and
institutional investors. LGT is controlled by the Prince of Liechtenstein
Foundation, which serves as a 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.
On January 30, 1998, LGT, the indirect parent organization of Chancellor LGT
Asset Management, Inc. (the "Manager"), entered into an agreement with AMVESCAP
PLC ("AMVESCAP") pursuant to which AMVESCAP will acquire LGT's Asset Management
Division, which includes the Manager.
Prospectus Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
AMVESCAP is a holding company formed in 1997 by the merger of INVESCO PLC and A
I M Management Group Inc. Consummation of the transaction is subject to a number
of contingencies, including regulatory approvals. Because the transaction would
constitute an assignment of the Company's investment management agreement under
the Investment Company Act of 1940 (and, therefore, a termination of such
agreement), it is anticipated that the approval of the Company's Board of
Directors and the Company's shareholders of new investment management
arrangements will be sought. The Manager anticipates that the investment
management arrangements will be presented for shareholder approval, and
anticipates that the transaction will close, on or about May 31, 1998.
As of December 31, 1997, the Manager and its worldwide asset management
affiliates managed approximately $54 billion in assets. In the United States, as
of December 31, 1997, the Manager managed or administered approximately $8
billion of assets of the GT Global Mutual Funds. As of December 31, 1997, assets
entrusted to Liechtenstein Global Trust totaled approximately $79 billion.
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 each Fund's
investment objective.
The investment professionals primarily responsible for the portfolio management
of the Fund are as follows:
GLOBAL DOLLAR FUND
<TABLE>
<CAPTION>
RESPONSIBILITIES BUSINESS EXPERIENCE
NAME/OFFICE FOR THE FUND PAST FIVE YEARS
- -------------------------- -------------------------- ---------------------------------------------------------------
<S> <C> <C>
Cheng-Hock Lau* Portfolio Manager since Mr. Lau has been Chief Investment Officer for Global Fixed
New York 1998 Income for the Manager since November 1996, and was a Senior
Portfolio Manager for global/ international fixed income for
the Manager from July 1995 to November 1996. Prior thereto,
Mr. Lau was a Senior Vice President and Senior Portfolio
Manager for Fiduciary Trust Company International from 1993 to
1995, and Vice President at Bankers Trust Company from 1991 to
1993.
Heide Koch* Portfolio Manager since Ms. Koch has been a Portfolio Manager for the Manager since
New York 1997 1991.
</TABLE>
- --------------
* On October 31, 1996, Chancellor Capital Management, Inc. ("Chancellor
Capital") merged with LGT Asset Management, Inc. (San Francisco), and the
resulting entity was renamed Chancellor LGT Asset Management, Inc. Prior to
October 31, 1996, Mr. Lau and Ms. Koch were employees only 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 Advisor
Class shares. Like the Manager, GT Global is a subsidiary of Liechtenstein
Global Trust with offices at 50 California Street, 27th Floor, San Francisco, CA
94111. The Manager or an affiliate thereof may, from time to time, make ongoing
payments to Financial Advisors and others that facilitate the administration and
servicing of Advisor Class shareholder accounts.
GT Global, at its own expense, may provide additional 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
Prospectus Page 18
<PAGE>
GT GLOBAL DOLLAR FUND
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.
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. 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 its financial
statements. In addition, the federal income status of dividends paid by the Fund
to its shareholders is reported after the end of each calendar year on Form
1099-DIV. Under certain circumstances, duplicate mailings of the foregoing
reports to the same household may be consolidated.
ORGANIZATION OF THE COMPANY. 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 may, at its discretion,
establish additional funds, each corresponding to a distinct investment
portfolio and a distinct series of the Company's common stock.
Advisor Class shares are offered through this prospectus to certain investors.
The Fund also offers Class A shares and Class B shares to investors through a
separate prospectus. The different expenses borne by each class of shares will
result in different dividends. The per share dividends on Advisor Class shares
of the Fund will generally be higher than the per share dividends on Class A and
B shares of the Fund as a result of the service and distribution fees applicable
with respect to Class A and B shares. Consequently, during comparable periods,
the Fund expects that the total return on an investment in shares of the Advisor
Class will be higher than the total return on Class A and B shares.
Pursuant to the Company's Articles of Amendment and Restatement, the Company may
issue two billion shares. Of this number, one billion five hundred million
shares have been classified as shares of the Fund; five hundred million shares
have been classified as Class A shares, five hundred million have been
classified as Class B shares and five hundred million 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
Prospectus Page 19
<PAGE>
GT GLOBAL DOLLAR FUND
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.
Normally there will be no annual meeting of shareholders in any year, 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's funds 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, CA 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 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
Prospectus Page 20
<PAGE>
GT GLOBAL DOLLAR FUND
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, MA
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, MA 02109. Coopers
& Lybrand L.L.P. conducts an annual audit of the Fund, assists in the
preparation of the Fund's federal and state income tax returns and consults with
the Company and the Fund as to matters of accounting, regulatory filings, and
federal and state income taxation.
MULTIPLE TRANSLATIONS OF THE PROSPECTUS. This Prospectus may be translated into
other languages. In the event of any inconsistency or ambiguity as to the
meaning of any word or phrase contained in a translation, the English text shall
prevail.
Prospectus Page 21
<PAGE>
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL DOLLAR FUND
GT GLOBAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY GT GLOBAL FUND,
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 ADVISER OR CALL GT GLOBAL DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL NEW DIMENSION FUND
Captures global growth opportunities by investing directly in the six GT Global
Theme Funds
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity for U.S. investors by investing outside the U.S.
GT GLOBAL EMERGING MARKETS GROWTH FUND
Gives access to the growth potential of developing economies
GT GLOBAL DEVELOPING MARKETS FUND
Invests in debt and equity securities of developing market issuers
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in the growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in 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 U.S. companies believed to be undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Invests in global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in a portfolio of emerging market debt securities
GT GLOBAL FLOATING RATE FUND
Invests primarily in senior secured floating rate loans that have the potential
to achieve a high level of current income
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.
DOLPV704029MC
<PAGE>
GT GLOBAL DOLLAR FUND
50 California Street, 27th Floor
San Francisco, CA 94111-4624
(415) 392-6181
Toll Free: (800) 824-1580
Statement of Additional Information
April 1, 1998
- --------------------------------------------------------------------------------
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
April 1, 1998, 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................................................................................................. 12
Execution of Portfolio Transactions...................................................................................... 13
Additional Information................................................................................................... 14
Investment Results....................................................................................................... 15
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 that 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 AND 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 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*, 39 Mr. Guilfoyle is President, GT Global, Inc. since 1995; Director, GT Global since 1991;
Director, Chairman of the Board and Senior Vice President and Director of Sales and Marketing, GT Global from May 1992 to
President April 1995; Vice President and Director of Marketing, GT Global from 1987 to 1992;
50 California Street Director, Liechtenstein Global Trust AG (holding company of the various international LGT
San Francisco, CA 94111 companies) Advisory Board since January 1996; Director, G.T. Global Insurance Agency
("G.T. Insurance") since 1996; President and Chief Executive Officer, G.T. Insurance since
1995; Senior Vice President and Director, Sales and Marketing, G.T. Insurance from April
1995 to November 1995; Senior Vice President, Retail Marketing, G.T. Insurance from 1992
to 1993. Mr. Guilfoyle is also 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, 56 Mr. Anderson is President, Plantagenet Capital Management, LLC (an investment
Director partnership); Chief Executive Officer, Plantagenet Holdings, Ltd. (an investment banking
220 Sansome Street firm); Director, Anderson Capital Management, Inc. since 1988; Director, PremiumWear, Inc.
Suite 400 (formerly Munsingwear, Inc.)(a casual apparel company) and Director, "R" Homes, Inc. and
San Francisco, CA 94104 various other companies. Mr. Anderson is also a director or trustee of each of the other
investment companies registered under the 1940 Act that is managed or administered by the
Manager.
Frank S. Bayley, 58 Mr. Bayley is a partner of the law firm of Baker & McKenzie, and serves as a Director and
Director Chairman of C.D. Stimson Company (a private investment company). Mr. Bayley is also a
Two Embarcadero Center director or trustee of each of the other investment companies registered under the 1940
Suite 2400 Act that is managed or administered by the Manager.
San Francisco, CA 94111
Arthur C. Patterson, 54 Mr. Patterson is Managing Partner of Accel Partners (a venture capital firm). He also
Director serves as a director of Viasoft and PageMart, Inc. (both public software companies), as
428 University Avenue well as several other privately held software and communications companies. Mr. Patterson
Palo Alto, CA 94301 is also a director or trustee of each of the other investment companies registered under
the 1940 Act that is managed or administered by the Manager.
Ruth H. Quigley, 62 Miss Quigley is a private investor. From 1984 to 1986, she was President of Quigley
Director Friedlander & Co., Inc. (a financial advisory services firm). Miss Quigley is also a
1055 California Street director or trustee of each of the other investment companies registered under the 1940
San Francisco, CA 94108 Act that is managed or administered by the Manager.
Robert G. Wade, Jr.*, 70 Mr. Wade is Consultant to the Manager; Chairman of the Board of Chancellor Capital
Director Management, Inc. from January 1995 to October 1996; President, Chief Executive Officer and
1166 Avenue of the Americas Chairman of the Board of Chancellor Capital Management, Inc. from 1988 to January 1995.
New York, NY 10036 Mr. Wade is also a director or trustee of each of the other investment companies
registered under the 1940 Act that is managed or administered by the Manager.
</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>
Kenneth W. Chancey, 52 Senior Vice President -- Mutual Fund Accounting, the Manager since 1997; Vice President --
Vice President and Mutual Fund Accounting, the Manager from 1992 to 1997; and Vice President, Putnam
Principal Accounting Officer Fiduciary Trust Company from 1989 to 1992.
50 California Street
San Francisco, CA 94111
Helge K. Lee, 51 Chief Legal and Compliance Officer -- North America, the Manager since October 1997;
Vice President and Secretary Executive Vice President of the Asset Management Division of Liechtenstein Global Trust
50 California Street since October 1996; Senior Vice President, General Counsel and Secretary of the Manager,
San Francisco, CA 94111 GT Global, GT Services and G.T. Insurance from February 1996 to October 1996; Vice
President, General Counsel and Secretary of LGT Asset Management, Inc., the Manager, GT
Global, GT Services and G.T. Insurance from May 1994 to February 1996; Senior Vice
President, General Counsel and Secretary of Strong/Corneliuson Management, Inc. and
Secretary of each of the Strong Funds from October 1991 through May 1994.
</TABLE>
------------------------
The Board of Directors has a Nominating and Audit Committee, comprised of Miss
Quigley and Messrs. Anderson, Bayley and Patterson, which is responsible for
nominating persons to serve as Directors, reviewing audits of the Company and
recommending firms to serve as independent auditors of the Company. Each of the
Directors and Officers of the Company is also a Director and Officer of G.T.
Investment Funds, Inc., G.T. Investment Portfolios, Inc. and GT Global Floating
Rate 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,
Floating Rate 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 47 series managed or administered by
the Manager. Each Director who is not a director, officer or employee of the
Manager or any affiliated company is paid aggregate fees of $1,000 per annum,
plus $300 for each meeting of the Board or any committee thereof attended by the
Director, and reimbursed 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, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson and Miss
Quigley, who are not directors, officers or employees of the Manager or any
affiliated company, received total compensation of $3,588, $3,716, $3,100 and
$3,409, respectively, from the Company for their services as Directors. For the
fiscal year ended December 31, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson and
Miss Quigley received total compensation of $103,654, $106,556, $89,700 and
$98,038, 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 January 8, 1998, 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 Administrator 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, 1997, 1996 and 1995, the Fund paid
investment management and administration fees to the Manager in the amounts of
$1,384,735, $1,808,976 and $1,665,299, respectively. During the fiscal years
ended December 31, 1997 and 1996, the Manager reimbursed the Fund for a portion
of its investment management and administration fees in the amounts of $88,707
and $173,045, respectively. No such reimbursements were made during the fiscal
year ended December 31, 1995.
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, 1997, the Fund made payments to GT Global under
the Class A Plan and Class B Plan in the amounts of $422,808 and $995,797,
respectively. During the fiscal year ended December 31, 1997, GT Global waived
payments under the Class A Plan and Class B Plan in the amounts of $422,808 and
$248,949, 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
"CDSCs" payable with respect to redemption of Class B shares. For the fiscal
years ended December 31, 1997, 1996 and 1995, GT Global collected contingent
deferred sales charges in the amount of $1,241,407, $968,357 and $1,333,734,
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, 1997, 1996 and 1995, the accounting
services fees for the Fund were $69,517, $90,682 and $86,710, 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 the Fund chooses 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
To continue to qualify for treatment as a regulated investment company under the
Internal Revenue Code of 1986, as amended (the "Code"), the Fund must distribute
to its shareholders for each taxable year at least 90% of its investment company
taxable income (consisting of net investment income and any net short-term
capital gain) and must meet several additional requirements. These requirements
include the following: (1) the Fund must derive at least 90% of its gross income
each taxable year from dividends, interest and gains from the sale or other
disposition of securities, or other income derived with respect to its business
of investing in securities; and (2) 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
Statement of Additional Information Page 8
<PAGE>
GT GLOBAL DOLLAR FUND
exceed 5% of the value of the Fund's total assets and (ii) not more than 25% of
the value of its total assets is invested in the securities of any one issuer
(other than U.S. government securities).
The Fund will be subject to a nondeductible 4% excise tax to the extent it fails
to distribute by the end of any calendar year substantially all of its ordinary
income for that year and capital gain net income, if any, for the one-year
period ending on October 31 of that year, plus certain other amounts.
Dividends from the Fund's investment company taxable income are taxable to its
shareholders as ordinary income. The Fund does not expect to receive any
dividend income from U.S. corporations, which means that no part of the
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 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 is reported after the end of each calendar year
on Form 1099-DIV.
PAYMENT AND TERMS OF OFFERING
Payment for Class A and Class B shares 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
insufficient 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 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. If 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 that
is a member of the Federal Reserve System. Any such bank may charge the
shareholder for this service.
INDIVIDUAL RETIREMENT ACCOUNTS ("IRAS") AND OTHER TAX-DEFERRED PLANS
Class A or Class B shares may be purchased as the underlying investment for an
IRA meeting the requirements of Sections 408(a), 408A or 530 of the Code, as
well as for qualified retirement plans described in Code Section 401 and
custodial accounts complying with Code Section 403(b)(7).
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. Unless your and your spouse's
earnings exceed a certain level, you also may establish an "education IRA"
and/or a "Roth IRA." Although contributions to these new types of IRAs are
nondeductible, withdrawals from them will be tax-free under certain
circumstances. Please consult your tax adviser for more information. IRA
applications are available from brokers or GT Global.
ROLLOVER IRAS: Individuals who receive distributions from qualified retirement
plans (other than required distributions) and who wish to keep their savings
growing tax-deferred can roll over (or make a direct transfer of) their
distribution to a Rollover IRA. These accounts can also receive rollovers or
transfers from an existing IRA. If an "eligible rollover distribution" from a
qualified employer-sponsored retirement plan is not directly rolled over to an
IRA (or certain qualified plans), withholding at the rate of 20% will be
required for federal income tax purposes. A distribution from a qualified plan
that is not an "eligible rollover distribution," including a distribution that
is one of a series of substantially equal periodic payments, generally is
subject to regular wage withholding or withholding at the rate of 10% (depending
on the type and amount of the distribution), unless you elect not to have any
withholding apply. Please consult your tax adviser 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 plans (I.E., self-employed individual retirement plans) or Code Section
401(k) plans, but with fewer administrative requirements and therefore
potentially lower annual administration expenses.
CODE SECTION 403(B)(7) CUSTODIAL ACCOUNTS: Employees of public schools and most
other tax-exempt organizations can make pre-tax salary reduction contributions
to these accounts.
Statement of Additional Information Page 10
<PAGE>
GT GLOBAL DOLLAR FUND
PROFIT-SHARING (INCLUDING SECTION 401(K)) AND MONEY PURCHASE PENSION
PLANS: Corporations and other employers 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
limits).
SIMPLE PLANS: Employers with no more than 100 employees that 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.
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 those funds upon sixty days'
written notice to the shareholders of the 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 its investment
objective(s).
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 $500. Costs
in connection with the administration of this service, including wire charges,
currently are borne by the appropriate Fund. Proceeds of less than $500 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 fifteen 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 closings, or
trading on the NYSE is restricted as directed by the SEC, (2) when an emergency
exists, as defined by the SEC, that 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.
Statement of Additional Information Page 11
<PAGE>
GT GLOBAL DOLLAR FUND
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: New Year's Day, Martin Luther King Day, President's 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 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.
Statement of Additional Information Page 12
<PAGE>
GT GLOBAL DOLLAR FUND
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 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 13
<PAGE>
GT GLOBAL DOLLAR FUND
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
LIECHTENSTEIN GLOBAL TRUST
Liechtenstein Global Trust is composed of the Manager and its worldwide
affiliates. Other worldwide affiliates of Liechtenstein Global Trust include LGT
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 and LGT Asset Management AG in Zurich, Switzerland.
Worldwide asset management affiliates also currently include LGT Asset
Management Inc. in Toronto, Canada; LGT Asset Management PLC in London, England;
LGT Asset Management Ltd. in Hong Kong; LGT Asset Management Ltd. in Tokyo; LGT
Asset Management Pte. Ltd. in Singapore; LGT Asset Management Ltd. in Sydney;
and LGT Asset Management GmbH in Frankfurt, Germany.
CUSTODIAN
State Street Bank and Trust Company ("State Street"), 225 Franklin Street,
Boston, MA 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, MA 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 14
<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, 1997, the Fund's Class A share yield
was 4.55% and effective yield was 4.66%. 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 Dec. 31, 1997:............................. $1.000873532
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000873532
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000873532
Seven-day yield = $.000873532 x 365/7 = 4.55%
Effective yield** = [1 + .000873532] 365/7 -1 = 4.66%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
For the seven-day period ended December 31, 1997, the Fund's Class B share yield
was 3.82% and effective yield was 3.89%. 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 Dec. 31, 1997:............................. $1.000731785
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000731785
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000731785
Seven-day yield = $.000731785 x 365/7 = 3.82%
Effective yield** = [1 + .000731785] 365/7 -1 = 3.89%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
Statement of Additional Information Page 15
<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, 1997, were as follows:
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- -------------------------
<S> <C>
Year ended Dec. 31, 1997......................................................................... 4.62%
Five years ended Dec. 31, 1997................................................................... 3.93%
Ten years ended Dec. 31, 1997.................................................................... 4.84%
</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 Dec. 31, 1997......................................................................... (1.16)%
April 1, 1993 (commencement of operations) through Dec. 31, 1997................................. 2.87%
</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, 1997, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------------------------------- -------------------------------
<S> <C>
Year ended Dec. 31, 1997..................................................................... 4.62%
Five years ended Dec. 31, 1997............................................................... 3.93%
Ten years ended Dec. 31, 1997................................................................ 4.84%
</TABLE>
The Fund's Non-Standardized Return for its Class A shares, stated as aggregate
total return, at December 31, 1997, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Sept. 16, 1985 (commencement of operations) through Dec. 31, 1997............................ 82.77%
</TABLE>
The Fund's Non-Standardized Return for its Class B shares, stated as average
annualized total returns, at December 31, 1997, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
Year ended Dec. 31, 1997....................................................................... 3.84%
April 1, 1993 (commencement of operations) through Dec. 31, 1997............................... 3.24%
</TABLE>
Statement of Additional Information Page 16
<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, 1997, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 (commencement of operations) through Dec. 31, 1997............................. 14.37%
</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, 1997, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
April 1, 1993 (commencement of operations) through Dec. 31, 1997............................. 16.37%
</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.
IMPORTANT POINTS TO NOTE ABOUT DATA RELATING TO WORLD EQUITY AND BOND MARKETS
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, among others:
(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 ("CPI"), 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"),
Micropal, Inc. 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 17
<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) Ibbotson 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., each of which is a widely used index
composed of world government bonds.
(10) The World Bank Publication of Trends in Developing Countries
("TIDE"), which 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 of which 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 reports produced by the World Bank and its
affiliates.
(14) Various publications from the International Bank for Reconstruction
and Development.
(15) Various publications produced by 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., Financial Research
Corporation, 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 Ibbotson Associates, may be used, as well as
information reported by the Federal Reserve and the respective central banks of
various nations. In addition, GT Global may use performance rankings, ratings
and commentary reported periodically in national financial publications,
including 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 indices of
comparable quality to those listed above and other indices that 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 18
<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 describe in its sales material and advertisements how an investor
may invest in the GT Global Mutual Funds through various retirement plans or
other programs that offer deferral of income taxes on investment earnings and
pursuant to which an investor may make deductible contributions. Because of
their advantages, these retirement plans and programs may produce returns
superior to comparable non-retirement investments. 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. In sales
material and advertisements, the Fund may also discuss these plans and programs.
See "Information Relating to Sales and Redemptions -- Individual Retirement
Accounts ('IRAs') and Other Tax-Deferred 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, 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. 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 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. Those issues determined to possess extremely
strong safety characteristics are denoted with a plus sign (+) designation.
Statement of Additional Information Page 19
<PAGE>
GT GLOBAL DOLLAR FUND
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 senior short-term debt
obligations. Prime-1 repayment ability will often be evidenced by many of
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 senior 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, may 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:
An obligation rated "AAA" has the highest rating assigned by S&P. The
obligor's capacity to meet its financial commitment on the obligation is
extremely strong.
An obligation rated "AA" differs from the highest rated obligations only
in a small degree. The obligor's capacity to meet its financial commitment
on the obligation is very strong.
MOODY'S: Its ratings for high quality bonds are as follows:
Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to
as "gilt edged." Interest payments are protected by a large or by an
exceptionally stable margin, and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized
are most unlikely to impair the fundamentally strong position of such
issues.
Bonds which are 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 risk 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 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, 1997, and for the
fiscal year then ended, appear on the following pages.
Statement of Additional Information Page 20
<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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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]
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
December 31, 1997
- --------------------------------------------------------------------------------
<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
------------ -----
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
------------ -----
NET ASSETS ...................................................... $276,888,755 100.0
------------ -----
------------ -----
</TABLE>
- --------------
* 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
- --------------------------------------------------------------------------------
<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
- --------------------------------------------------------------------------------
<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
- --------------------------------------------------------------------------------
<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
-------------- ---------------
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
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
F9
<PAGE>
GT GLOBAL DOLLAR FUND
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 A I M and INVESCO asset management
businesses.
F10
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL DOLLAR FUND
GT GLOBAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY GT GLOBAL FUND,
INCLUDING FEES, EXPENSES AND RISKS OF GLOBAL AND EMERGING MARKET INVESTING
AND THE RISKS OF INVESTING IN RELATED INDUSTRIES, PLEASE CONTACT YOUR
FINANCIAL ADVISER OR CALL GT GLOBAL DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL NEW DIMENSION FUND
Captures global growth opportunities by investing directly in the six GT Global
Theme Funds
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity for U.S. investors by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
GT GLOBAL DEVELOPING MARKETS FUND
Invests in debt and equity securities of developing market issuers
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in the growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in 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 U.S. companies believed to be undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Invests in global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in a portfolio of emerging market debt securities
GT GLOBAL FLOATING RATE FUND
Invests primarily in senior secured floating rate loans that have the potential
to achieve a high level of current income
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
<PAGE>
GT GLOBAL DOLLAR FUND:
ADVISOR CLASS
50 California Street, 27th Floor
San Francisco, CA 94111-4624
(415) 392-6181
Toll Free: (800) 824-1580
Statement of Additional Information
April 1, 1998
- --------------------------------------------------------------------------------
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 Advisor Class
shares of the Fund, which is not a prospectus, supplements and should be read in
conjunction with the Fund's current Advisor Class Prospectus dated April 1,
1998, 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.............................................................................................. 18
Financial Statements..................................................................................................... 19
</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, an agreed-upon price, date and market rate
of interest unrelated to 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 that 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 AND 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 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*, 39 Mr. Guilfoyle is President, GT Global, Inc. since 1995; Director, GT Global since 1991;
Director, Chairman of the Board and Senior Vice President and Director of Sales and Marketing, GT Global from May 1992 to
President April 1995; Vice President and Director of Marketing, GT Global from 1987 to 1992;
50 California Street Director, Liechtenstein Global Trust AG (holding company of the various international LGT
San Francisco, CA 94111 companies) Advisory Board since January 1996; Director, G.T. Global Insurance Agency
("G.T. Insurance") since 1996; President and Chief Executive Officer, G.T. Insurance since
1995; Senior Vice President and Director, Sales and Marketing, G.T. Insurance from April
1995 to November 1995; Senior Vice President, Retail Marketing, G.T. Insurance from 1992
to 1993. Mr. Guilfoyle is also 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, 56 Mr. Anderson is President, Plantagenet Capital Management, LLC (an investment
Director partnership); Chief Executive Officer, Plantagenet Holdings, Ltd. (an investment banking
220 Sansome Street firm); Director, Anderson Capital Management, Inc. since 1988; Director, PremiumWear, Inc.
Suite 400 (formerly Munsingwear, Inc.)(a casual apparel company) and Director, "R" Homes, Inc. and
San Francisco, CA 94104 various other companies. Mr. Anderson is also a director or trustee of each of the other
investment companies registered under the 1940 Act that is managed or administered by the
Manager.
Frank S. Bayley, 58 Mr. Bayley is a partner of the law firm of Baker & McKenzie, and serves as a Director and
Director Chairman of C.D. Stimson Company (a private investment company). Mr. Bayley is also a
Two Embarcadero Center director or trustee of each of the other investment companies registered under the 1940
Suite 2400 Act that is managed or administered by the Manager.
San Francisco, CA 94111
Arthur C. Patterson, 54 Mr. Patterson is Managing Partner of Accel Partners (a venture capital firm). He also
Director serves as a director of Viasoft and PageMart, Inc. (both public software companies), as
428 University Avenue well as several other privately held software and communications companies. Mr. Patterson
Palo Alto, CA 94301 is also a director or trustee of each of the other investment companies registered under
the 1940 Act that is managed or administered by the Manager.
Ruth H. Quigley, 62 Miss Quigley is a private investor. From 1984 to 1986, she was President of Quigley
Director Friedlander & Co., Inc. (a financial advisory services firm). Miss Quigley is also a
1055 California Street director or trustee of each of the other investment companies registered under the 1940
San Francisco, CA 94108 Act that is managed or administered by the Manager.
Robert G. Wade, Jr.*, 70 Mr. Wade is Consultant to the Manager; Chairman of the Board of Chancellor Capital
Director Management, Inc. from January 1995 to October 1996; President, Chief Executive Officer and
1166 Avenue of the Americas Chairman of the Board of Chancellor Capital Management, Inc. from 1988 to January 1995.
New York, NY 10036 Mr. Wade is also a director or trustee of each of the other investment companies
registered under the 1940 Act that is managed or administered by the Manager.
</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>
Kenneth W. Chancey, 52 Senior Vice President -- Mutual Fund Accounting, the Manager since 1997;
Vice President and Vice President -- Mutual Fund Accounting, the Manager from 1992 to 1997;
Principal Accounting Officer and Vice President, Putnam Fiduciary Trust Company from 1989 to 1992.
50 California Street
San Francisco, CA 94111
Helge K. Lee, 51 Chief Legal and Compliance Officer -- North America, the Manager since
Vice President and Secretary October 1997; Executive Vice President of the Asset Management Division
50 California Street of Liechtenstein Global Trust since October 1996; Senior Vice President,
San Francisco, CA 94111 General Counsel and Secretary of the Manager, GT Global, GT Services and
G.T. Insurance from February 1996 to October 1996; Vice President,
General Counsel and Secretary of LGT Asset Management, Inc., the
Manager, GT Global, GT Services and G.T. Insurance from May 1994 to
February 1996; Senior Vice President, General Counsel and Secretary of
Strong/Corneliuson Management, Inc. and Secretary of each of the Strong
Funds from October 1991 through May 1994.
</TABLE>
------------------------
The Board of Directors has a Nominating and Audit Committee, comprised of Miss
Quigley and Messrs. Anderson, Bayley and Patterson, which is responsible for
nominating persons to serve as Directors, reviewing audits of the Company and
recommending firms to serve as independent auditors of the Company. Each of the
Directors and Officers of the Company is also a Director and Officer of G.T.
Investment Funds, Inc., G.T. Investment Portfolios, Inc. and GT Global Floating
Rate 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,
Floating Rate 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 47 series managed or administered by
the Manager. Each Director who is not a director, officer or employee of the
Manager or any affiliated company is paid aggregate fees of $1,000 per annum,
plus $300 for each meeting of the Board or any committee thereof attended by the
Director, and reimbursed 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, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson and Miss
Quigley, who are not directors, officers or employees of the Manager or any
affiliated company, received total compensation of $3,588, $3,716, $3,100 and
$3,409, respectively, from the Company for their services as Directors. For the
fiscal year ended December 31, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson and
Miss Quigley received total compensation of $103,654, $106,556, $89,700 and
$98,038, 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 January 8, 1998, 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 Administrator to the Fund
under an administration contract between the Company and the Manager
("Administration Contract"). The Administration Contract will not be deemed as
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, 1997, 1996 and 1995, the Fund paid
investment management and administration fees to the Manager in the amounts of
$1,384,735, $1,808,976 and $1,665,299, respectively. During the fiscal years
ended December 31, 1997 and 1996, the Manager reimbursed the Fund for a portion
of its investment management and administration fees in the amounts of $88,707
and $173,045, respectively. No such reimbursements were made during the fiscal
year ended December 31, 1995.
DISTRIBUTION SERVICES
The Fund's Advisor Class are offered continuously through the Fund's principal
underwriter and distributor, GT Global, on a "best efforts" basis without a
sales charge or a contingent deferred sales charge.
TRANSFER AGENCY 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, 1997, 1996 and 1995, the accounting
services fees for the Fund were $69,517, $90,682 and $86,710, 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 services performed and
relative applicability to the Fund. Expenditures, including costs incurred in
connection with the purchase or sale of portfolio securities, which are
capitalized in accordance with generally accepted accounting principles
applicable to investment companies, are accounted for as capital items and not
as expenses.
Statement of Additional Information Page 7
<PAGE>
GT GLOBAL DOLLAR FUND
DIVIDENDS AND TAXES
- --------------------------------------------------------------------------------
DAILY INCOME DIVIDENDS
Net investment income and any realized net short-term capital gain are
determined and declared as a dividend each day. Each such dividend is payable to
shareholders as of the close of business on that day. Orders to purchase Fund
shares are executed on the business day on which Federal Funds, i.e., monies
held on deposit at a Federal Reserve Bank, become available. Shares begin
accruing dividends on the day following the date of purchase. Shares are
entitled to the dividend declared on the day a redemption request is received by
the Transfer Agent. Dividends are automatically reinvested in Advisor Class
shares of the Fund on the last Business Day of the month, at net asset value,
unless a shareholder otherwise instructs the Transfer Agent in writing. A
shareholder that does so will be mailed a check in the amount of each dividend.
For the purpose of calculating dividends, daily net investment income of the
Fund consists of (a) all interest income accrued on investments (including any
discount or premium ratably accrued or amortized, respectively, to the date of
maturity or determined in such other manner the Fund chooses 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
To continue to qualify for treatment as a regulated investment company under the
Internal Revenue Code of 1986, as amended (the "Code"), the Fund must distribute
to its shareholders for each taxable year at least 90% of its investment company
taxable income (consisting of net investment income and any net short-term
capital gain) and must meet several additional requirements. These requirements
include the following: (1) the Fund must derive at least 90% of its gross income
each taxable year from dividends, interest and gains from the sale or other
disposition of securities, or other income derived with respect to its business
of investing in securities; and (2) the Fund must diversify its holdings so
that, at the close of each quarter of its taxable year, (i) at least 50% of the
value of its total assets is represented by cash and cash items, U.S. government
securities and other securities limited, with respect to any one issuer, to an
amount that does not exceed 5% of the value of the Fund's total assets and (ii)
not more than 25% of the value of its total assets is invested in the securities
of any one issuer (other than U.S. government securities).
The Fund will be subject to a nondeductible 4% excise tax to the extent it fails
to distribute by the end of any calendar year substantially all of its ordinary
income for that year and capital gain net income, if any, for the one-year
period ending on October 31 of that year, plus certain other amounts.
Dividends from the Fund's investment company taxable income are taxable to its
shareholders as ordinary income. The Fund does not expect to receive any
dividend income from U.S. corporations, which means that no part of the
dividends from the Fund will 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 domestic shareholders will apply.
The foregoing is a general and abbreviated summary of certain federal tax
considerations affecting the Fund and its shareholders. Investors are urged to
consult their own tax advisers for more detailed information and for information
regarding any foreign, state and local taxes applicable to an investment in the
Fund.
Statement of Additional Information Page 8
<PAGE>
GT GLOBAL DOLLAR 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 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 is reported after the end of each calendar year
on Form 1099-DIV.
PAYMENT AND TERMS OF OFFERING
Payment for Advisor Class shares 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
insufficient funds), the person who made the order will be responsible for any
loss incurred by the Fund by reason of such cancellation, and if such purchaser
is a shareholder, the Fund shall have the authority as agent of the shareholder
to redeem shares in his or her account for their then-current net asset value
per share to reimburse the Company for the loss incurred. Investors whose
purchase orders have been cancelled due to nonpayment may be prohibited from
placing future orders.
The Fund reserves the right at any time to waive or increase the minimum
requirements applicable to initial or subsequent investments with respect to any
person or class of persons. An order to purchase shares is not binding on the
Fund until it has been confirmed in writing by the Transfer Agent (or other
arrangements made with the Fund, in the case of orders utilizing wire transfer
of funds, as described above) and payment has been received. To protect existing
shareholders, the Fund reserves the right to reject any offer for a purchase of
shares by any individual.
WHEN ORDERS ARE EFFECTIVE
In order to maximize earnings on its portfolio, the Fund intends at all times to
be as completely invested as reasonably possible. Transactions in the money
market instruments in which the Fund invests normally require immediate
settlement in Federal Funds, as defined above. Thus, an order to purchase Fund
shares will be executed on 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") AND OTHER TAX-DEFERRED PLANS
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. Unless your and your spouse's
earnings exceed a certain level, you also may establish an "education IRA"
and/or a "Roth IRA." Although contributions to these new types of IRAs are
nondeductible, withdrawals from them will be tax-free under certain
circumstances. Please consult your tax adviser for more information. IRA
applications are available from brokers or GT Global.
ROLLOVER IRAS: Individuals who receive distributions from qualified retirement
plans (other than required distributions) and who wish to keep their savings
growing tax-deferred can roll over (or make a direct transfer of) their
distribution to a Rollover IRA. These accounts can also receive rollovers or
transfers from an existing IRA. If an "eligible rollover
Statement of Additional Information Page 9
<PAGE>
GT GLOBAL DOLLAR FUND
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 adviser 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 plans (I.E., self-employed individual retirement plans) or Code Section
401(k) plans, but with fewer administrative requirements and therefore
potentially lower annual administration expenses.
CODE SECTION 403(b)(7) CUSTODIAL ACCOUNTS: Employees of public schools and most
other tax-exempt organizations can make pre-tax salary reduction contributions
to these accounts.
PROFIT-SHARING (INCLUDING SECTION 401(K)) AND MONEY PURCHASE PENSION
PLANS: Corporations and other employers 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
limits).
SIMPLE PLANS: Employers with no more than 100 employees that 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.
EXCHANGES BETWEEN FUNDS
A shareholder may exchange shares of the Fund for shares of the corresponding
class of other GT Global Mutual Funds as described in the Prospectus. Advisor
Class shares may be exchanged only for Advisor Class shares of other GT Global
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
those funds upon sixty days' written notice to the shareholders of the 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 its investment objective(s).
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 appropriate 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 closings, or
trading on the NYSE is restricted as directed by the SEC, (2) when an emergency
exists, as defined by the SEC, that 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.
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.
Statement of Additional Information Page 10
<PAGE>
GT GLOBAL DOLLAR FUND
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: New Year's Day, Martin Luther King Day, President's 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 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.
Statement of Additional Information Page 11
<PAGE>
GT GLOBAL DOLLAR FUND
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 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 is composed of the Manager and its worldwide
affiliates. Other worldwide affiliates of Liechtenstein Global Trust include LGT
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 and LGT Asset Management AG in Zurich, Switzerland.
Worldwide asset management affiliates also currently include LGT Asset
Management Inc. in Toronto, Canada; LGT Asset Management PLC in London, England;
LGT Asset Management Ltd. in Hong Kong; LGT Asset Management Ltd. in Tokyo; LGT
Asset Management Pte. Ltd. in Singapore; LGT Asset Management Ltd. in Sydney;
and LGT Asset Management GmbH in Frankfurt, Germany.
CUSTODIAN
State Street Bank and Trust Company ("State Street"), 225 Franklin Street,
Boston, MA 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, MA 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, 1997, the Fund's Class A share yield
was 4.55% and effective yield was 4.66%. 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 Dec. 31, 1997:............................. $1.000873532
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000873532
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000873532
Seven-day yield = $.000873532 x 365/7 = 4.55%
Effective yield** = [1 + .000873532] 365/7 -1 = 4.66%
</TABLE>
- --------------
** The effective yield assumes a year's compounding of the seven-day yield.
For the seven-day period ended December 31, 1997, the Fund's Advisor Class share
yield was 4.55% and effective yield was 4.66%. 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 Dec. 31, 1997:............................. $1.000873375
</TABLE>
- --------------
* Value includes additional shares acquired with dividends paid on the
original shares.
Calculation:
<TABLE>
<S> <C> <C>
Ending account value:.................... $ 1.000873375
Less beginning account value:............ $ 1.000000000
Net change in account value:............. $ .000873375
Seven-day yield = $.000873375 x 365/7 = 4.55%
Effective yield** = [1 + .000873375] 365/7 -1 = 4.66%
</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 assumption will be reflected in
computations made in accordance with this formula: reinvestment of dividends and
other distributions at net asset value on the reinvestment date determined by
the Board.
The Fund's Standardized Returns for its Class A shares, stated as average
annualized total returns, at December 31, 1997, were as follows:
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
Year ended Dec. 31, 1997......................................................................... 4.62%
Five years ended Dec. 31, 1997................................................................... 3.93%
Ten years ended Dec. 31, 1997.................................................................... 4.84%
</TABLE>
The Fund's Standardized Returns for its Advisor Class shares, stated as average
annualized total returns, were as follows:
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ------------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
Year ended Dec. 31, 1997......................................................................... 4.61%
June 1, 1995 (commencement of operations) through Dec. 31, 1997.................................. 4.67%
</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, 1997, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Year ended Dec. 31, 1997....................................................................... 4.62%
Five years ended Dec. 31, 1997................................................................. 3.93%
Ten years ended Dec. 31, 1997.................................................................. 4.84%
</TABLE>
The Fund's Non-Standardized Return for its Class A shares, stated as aggregate
total return, at December 31, 1997, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
Sept. 16, 1985 (commencement of operations) through Dec. 31, 1997............................ 82.77%
</TABLE>
The Fund's Non-Standardized Return for its Advisor Class shares, stated as
average annualized total returns, at December 31, 1997, were as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE
PERIOD ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------------------------------- ---------------------------
<S> <C>
Year ended Dec. 31, 1997....................................................................... 4.61%
June 1, 1995 (commencement of operations) through Dec. 31, 1997................................ 4.67%
</TABLE>
Statement of Additional Information Page 15
<PAGE>
GT GLOBAL DOLLAR FUND
The Fund's Non-Standardized Return for its Advisor Class shares, stated as
aggregate total return, at December 31, 1997, was as follows:
<TABLE>
<CAPTION>
NON-STANDARDIZED AGGREGATE
PERIOD TOTAL RETURN
- --------------------------------------------------------------------------------------------- -----------------------------
<S> <C>
June 1, 1995 (commencement of operations) through Dec. 31, 1997.............................. 12.52%
</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.
IMPORTANT POINTS TO NOTE ABOUT DATA RELATING TO WORLD EQUITY AND BOND MARKETS
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, among others:
(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 ("CPI"), 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"),
Micropal, Inc. 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.
(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.
Statement of Additional Information Page 16
<PAGE>
GT GLOBAL DOLLAR FUND
(7) Ibbotson 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., each of which is a widely used index
composed of world government bonds.
(10) The World Bank Publication of Trends in Developing Countries
("TIDE"), which 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 of which 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 reports produced by the World Bank and its
affiliates.
(14) Various publications from the International Bank for Reconstruction
and Development.
(15) Various publications produced by 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., Financial Research
Corporation, 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 Ibbotson Associates, may be used, as well as
information reported by the Federal Reserve and the respective central banks of
various nations. In addition, GT Global may use performance rankings, ratings
and commentary reported periodically in national financial publications,
including 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 indices of
comparable quality to those listed above and other indices that 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.
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.
Statement of Additional Information Page 17
<PAGE>
GT GLOBAL DOLLAR FUND
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 describe in its sales material and advertisements how an investor
may invest in the GT Global Mutual Funds through various retirement plans or
other programs that offer deferral of income taxes on investment earnings and
pursuant to which an investor may make deductible contributions. Because of
their advantages, these retirement plans and programs may produce returns
superior to comparable non-retirement investments. 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. In sales
materials and advertisements, the Fund may also discuss these plans and
programs. See "Information Relating to Sales and Redemptions -- Individual
Retirement Accounts ('IRAs') and Other Tax-Deferred 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, 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. Many of the GT Global Mutual Funds' portfolio managers are natives of
the countries in which they invest, speak local languages and/or work in the
markets they follow.
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. Those 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".
Statement of Additional Information Page 18
<PAGE>
GT GLOBAL DOLLAR FUND
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 senior short-term debt
obligations. Prime-1 repayment ability will often be evidenced by many of
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 senior 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, may 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:
An obligation rated "AAA" has the highest rating assigned by S&P. The
obligor's capacity to meet its financial commitment on the obligation is
extremely strong.
An obligation rated "AA" differs from the highest rated obligations only
in a small degree. The obligor's capacity to meet its financial commitment
on the obligation is very strong.
MOODY'S: Its ratings for high quality bonds are as follows:
Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to
as "gilt edged." Interest payments are protected by a large or by an
exceptionally stable margin, and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized
are most unlikely to impair the fundamentally strong position of such
issues.
Bonds which are 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 risk 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 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, 1997, and for the
fiscal year then ended, appear on the following pages.
Statement of Additional Information Page 19
<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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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]
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL DOLLAR FUND
PORTFOLIO OF INVESTMENTS
December 31, 1997
- --------------------------------------------------------------------------------
<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
------------ -----
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
------------ -----
NET ASSETS ...................................................... $276,888,755 100.0
------------ -----
------------ -----
</TABLE>
- --------------
* 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
- --------------------------------------------------------------------------------
<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
- --------------------------------------------------------------------------------
<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
- --------------------------------------------------------------------------------
<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
-------------- ---------------
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
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
F9
<PAGE>
GT GLOBAL DOLLAR FUND
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 A I M and INVESCO asset management
businesses.
F10
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GT GLOBAL DOLLAR FUND
NOTES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL DOLLAR FUND
GT GLOBAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY GT GLOBAL FUND,
INCLUDING FEES, EXPENSES AND RISKS OF GLOBAL AND EMERGING MARKET INVESTING
AND THE RISKS OF INVESTING IN RELATED INDUSTRIES, PLEASE CONTACT YOUR
FINANCIAL ADVISER OR CALL GT GLOBAL DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL NEW DIMENSION FUND
Captures global growth opportunities by investing directly in the six GT Global
Theme Funds
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity for U.S. investors by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
GT GLOBAL DEVELOPING MARKETS FUND
Invests in debt and equity securities of developing market issuers
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in the growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in 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 U.S. companies believed to be undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Invests in global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in a portfolio of emerging market debt securities
GT GLOBAL FLOATING RATE FUND
Invests primarily in senior secured floating rate loans that have the potential
to achieve a high level of current income
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.
DOLSX705MC
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
PART C: OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS -- The following audited financial statements as of
December 31, 1997, and for the fiscal year then ended, for Class A, Class B and
Advisor Class Shares of the GT Global Dollar Fund are filed herewith:
-- Reports of Independent Accountants
-- Portfolio of Investments
-- Statement of Assets and Liabilities
-- Statement of Operations
-- Statement of Changes in Net Assets
-- Financial Highlights
-- Notes to Financial Statements
(b) EXHIBITS REQUIRED BY PART C, ITEM 24 OF FORM N-1A.
<TABLE>
<S> <C>
(1) The Registrant's Articles of Amendment and Restatement(2).
(2) The Registrant's By-Laws as amended(2).
(3) Not Applicable.
(4) Instruments Defining Rights of Shareholders -- Filed herewith.
(5) The Investment Management and Administration Contract dated May 1, 1989(2).
(6)(a) Distribution Agreement relating to Class A shares of GT Global Dollar
Fund(2).
(6)(b) Distribution Agreement relating to Class B shares of GT Global Dollar
Fund(2).
(6)(c) Distribution Agreement relating to Advisor Class Shares of GT Global Dollar
Fund(2).
(7) Not Applicable.
(8) Custodian Agreement between the Registrant and State Street Bank and Trust
Company(2).
(9)(a) Transfer Agency Contract dated May 25, 1990(2).
(9)(b) Fund Accounting and Pricing Agent Agreement -- Filed herewith.
(9)(c) Other material contracts:
</TABLE>
(i) Broker/dealer sales contract(2).
(ii) Bank sales contract(2).
(iii) Agency sales contract(2).
(iv) Foreign sales contract(2).
<TABLE>
<S> <C>
(10) Opinion and consent of counsel is incorporated by reference to Exhibit 10
of a Post-Effective Amendment to the Registration Statement filed
previously.
(11) Consent of Coopers & Lybrand L.L.P., Independent Accountants -- Filed
herewith.
(12) Not Applicable.
</TABLE>
C-1
<PAGE>
<TABLE>
<S> <C>
(13) Not Applicable.
(14)(a) Model Retirement Plan -- GT Global Individual Retirement Account Disclosure
Statement and Application(2).
(14)(b) Model Retirement Plan -- GT Global Simplified Employee Pension Individual
Retirement Account Disclosure Statement and Application(3).
(14)(c) Model Retirement Plan -- GT Global SIMPLE Individual Retirement Account
Disclosure Statement and Application(3).
(14)(d) Model Retirement Plan -- Roth IRA(3).
(14)(e) 403(b)(7) Custodial Agreement(3).
(15)(a) Distribution Plan adopted pursuant to Rule 12b-1 relating to Class A
shares(2).
(15)(b) Distribution Plan adopted pursuant to Rule 12b-1 relating to Class B
shares(2).
(16) Schedules of Computation of Performance Quotations relating to the Class A,
Class B and Advisor Class shares of GT Global Dollar Fund(2).
(17) Financial Data Schedule -- Filed herewith.
(18) Multiple Class Plan Pursuant to Rule 18f-3 -- Filed herewith.
</TABLE>
<TABLE>
<S> <C>
Other Exhibits:
(a) Power of Attorney for Michael A. Silver and Helge K. Lee for G.T.
Investment Portfolios, Inc. -- Filed herewith.
</TABLE>
- ------------------------
(1) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 21 to the Registration Statement on Form N-1A,
filed on April 25, 1996.
(2) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 22 to the Registration Statement on Form N-1A,
filed on April 24, 1997.
(3) Incorporated by reference to the identically enumerated Exhibit of
Post-Effective Amendment No. 51 to the Registration Statement of G.T.
Investment Funds, Inc. on Form N-1A, filed on January 30, 1998.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE REGISTRANT
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
As of February 26, 1998:
<TABLE>
<CAPTION>
TITLE OF CLASS NUMBER OF RECORD HOLDERS
- -------------------------------------------------------------- ---------------------------
<S> <C>
Shares of Common Stock, $.0001 par value, of
GT Global Dollar Fund Class A................................. 6,386
GT Global Dollar Fund Class B................................. 4,268
GT Global Dollar Fund Advisor Class........................... 271
</TABLE>
ITEM 27. INDEMNIFICATION
Section 2-148 of the Maryland General Corporation Law and Article X of
Registrant's By-Laws provide for indemnification of certain persons acting on
behalf of the Registrant.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933, as amended ("1933 Act"), may be permitted to Directors, officers and
controlling persons by the Registrant's Articles of Incorporation, By-Laws, or
otherwise, the Registrant has been advised that in the opinion of the Securities
and Exchange Commission ("Commission") such indemnification is against public
policy as expressed in the 1933 Act, and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than the
payment by
C-2
<PAGE>
the Registrant of expenses incurred or paid by a Director, officer or
controlling person of the Registrant in the successful defense of any action,
suit or proceeding ) is asserted by such Director, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the 1933 Act
and will be governed by the final adjudication of such issues.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
See the material under the heading "Management" included in Part A
(Prospectus) of this Amendment and the material appearing under the headings
"Directors and Executive Officers" and "Management" included in Part B
(Statement of Additional Information) of this Amendment.
ITEM 29. PRINCIPAL UNDERWRITERS
(a) In addition to the Registrant, GT Global, Inc. is the principal
underwriter for the following other investment companies: G.T. Global Growth
Series (which includes eight funds currently in operation: GT Global America
Small Cap Growth Fund, GT Global America Value Fund, GT Global America Mid Cap
Growth Fund, GT Global Europe Growth Fund, GT Global International Growth Fund,
GT Global Japan Growth Fund, GT Global New Pacific Growth Fund and GT Global
Worldwide Growth Fund); G.T. Investment Funds, Inc. (which includes thirteen
funds currently in operation: GT Global Strategic Income Fund, GT Global High
Income Fund, GT Global Government Income Fund, GT Global Health Care Fund, GT
Global Growth & Income Fund, GT Global Latin America Growth Fund, GT Global
Developing Markets Fund, GT Global Emerging Markets Fund, GT Global
Telecommunications Fund, GT Global Financial Services Fund, GT Global
Infrastructure Fund, GT Global Natural Resources Fund and GT Global Consumer
Products and Services Fund); GT Global Series Trust (which includes GT Global
New Dimension Fund); G.T. Global Variable Investment Series (which includes five
funds currently in operation: GT Global Variable New Pacific Fund, GT Global
Variable Europe Fund, GT Global Variable America Fund, GT Global Variable
International Fund and GT Global Money Market Fund); G.T. Global Variable
Investment Trust (which includes nine funds currently in operation: GT Global
Variable Latin America Fund, GT Global Variable Emerging Markets Fund, GT Global
Variable Infrastructure Fund, GT Global Variable Natural Resources Fund, GT
Global Variable Telecommunications Fund, GT Global Variable Growth & Income
Fund, GT Global Variable Strategic Income Fund, GT Global Variable Global
Government Income Fund and GT Global Variable U.S. Government Income Fund); and
GT Global Floating Rate Fund, Inc.
(b) Directors and Officers of GT Global, Inc.
Unless otherwise indicated, the business address of each person listed is 50
California Street, San Francisco, CA 94111.
<TABLE>
<CAPTION>
POSITIONS AND OFFICES WITH GT POSITIONS AND OFFICES
NAME GLOBAL WITH THE REGISTRANT
- -------------------------------------------- ---------------------------------- ----------------------------------
<S> <C> <C>
William J. Guilfoyle President and Chairman of the Chairman of the Board of Directors
Board and President
Raymond R. Cunningham Senior Vice President -- Director None
of Sales and Director
Richard W. Healey Senior Vice President -- Director None
of Marketing and Director
</TABLE>
C-3
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND OFFICES WITH GT POSITIONS AND OFFICES
NAME GLOBAL WITH THE REGISTRANT
- -------------------------------------------- ---------------------------------- ----------------------------------
Helge K. Lee Secretary and Chief Legal and Vice President and Secretary
Compliance Officer
<S> <C> <C>
David P. Hess Assistant Secretary and Director Assistant Secretary
of Mutual Fund Compliance
Michael A. Silver Assistant Secretary and Assistant Assistant Secretary
General Counsel
Philip D. Edelstein Senior Vice President -- Regional None
9 Huntly Circle Sales Manager
Palm Beach Gardens, FL 33418
Stephen A. Maginn Senior Vice President -- Regional None
519 S. Juanita Sales Manager
Redondo Beach, CA 90277
Peter J. Wolfert Senior Vice President -- None
Information Technology
Christine M. Pallatto Senior Vice President -- Director None
of Human Resources
Earle A. Malm II Chief Operating Officer None
Margo A. Tammen Vice President -- Finance & None
Administration
Gary M. Castro Assistant Treasurer & Controller None
Dennis W. Reichert Assistant Treasurer & Budget Assistant Treasurer
Director
Kenneth W. Chancey Senior Vice President -- Fund Vice President, Principal
Accounting Accounting Officer and (Acting)
CFO
Hallie L. Baron Vice President -- Public Relations None
& Shareholder Communications
Claus te Wildt Vice President -- Director of None
Strategy and Business Planning
Pamela Ruddock Vice President -- Fund None
Administration
Paul Wozniak Vice President -- Fund Accounting None
Christine C. Mangan Vice President -- Dealer Marketing None
</TABLE>
C-4
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND OFFICES WITH GT POSITIONS AND OFFICES
NAME GLOBAL WITH THE REGISTRANT
- -------------------------------------------- ---------------------------------- ----------------------------------
Donna B. Abrahamson Vice President -- Account None
Management
<S> <C> <C>
Jon Burke Vice President None
31 Darlene Drive
Southboro, MA 01772
Phil Christopher Vice President None
3621 59th Ave. SW
Seattle, WA 98116
Anthony DiBacco Vice President None
30585 Via Lindosa Way
Laguna Niguel, CA 92677
Stephen Duffy Vice President None
1120 Gables Drive
Atlanta, GA 30319
Glenn R. Farinacci Vice President None
86 University Place
Staten Island, NY 10301
Ned E. Hammond Vice President None
5901 McFarland Ct.
Plano, TX 75093-4317
Richard Kashnowski Vice President None
1368 South Ridge Drive
Mandeville, LA 70448
Allen M. Kuhn Vice President None
19655 Red Maple Lane
Jupiter, FL 33458
Steven C. Manns Vice President None
1941 West Wolfram
Chicago, IL 60657
Wayne F. Meyer Vice President None
2617 Sun Meadow Drive
Chesterfield, MO 63005
Dean Philips Vice President None
3406 Bishop Park Drive, #428
Winter Park, FL 32792
Philip Schertz Vice President None
25 Ivy Place
Wayne, NJ 07470
Peter Sykes Vice President None
1655 E. Sherman Ave.
Salt Lake City, UT 84105
Lance Vetter Vice President None
10915 La Salinas Circle
Boca Raton, FL 33428
</TABLE>
C-5
<PAGE>
<TABLE>
<CAPTION>
POSITIONS AND OFFICES WITH GT POSITIONS AND OFFICES
NAME GLOBAL WITH THE REGISTRANT
- -------------------------------------------- ---------------------------------- ----------------------------------
Tommy D. Wells Vice President None
25 Crane Drive
San Anselmo, CA 94960
<S> <C> <C>
Todd H. Westby Vice President None
3405 Goshen Road
Newtown Square, PA 19073
Eric T. Zeigler Vice President None
437 30th Street
Manhattan Beach, CA 90266
</TABLE>
(c) None.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
Accounts, books and other records required by Rules 31a-1 and 31a-2 under
the Investment Company Act of 1940, as amended, are maintained and held in the
offices of the Registrant and its investment manager, Chancellor LGT Asset
Management, Inc., 50 California Street, 27th Floor, San Francisco, CA 94111, and
its custodian, State Street Bank and Trust Company, 225 Franklin Street, Boston,
MA 02110.
Records covering shareholder accounts are maintained and kept by the
Registrant's transfer agent, GT Global Investor Services, Inc., 2121 N.
California Boulevard, Suite 450, Walnut Creek, CA 94596, and records of
portfolio transactions are maintained and kept by the Registrant's custodian,
State Street Bank and Trust Company, 225 Franklin Street, Boston, MA 02110.
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
Not applicable.
C-6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, and
the Investment Company Act of 1940, as amended, the Registrant has duly caused
this Post-Effective Amendment to its Registration Statement to be signed on its
behalf by the undersigned, thereto duly authorized, in the City of San
Francisco, and the State of California, on the 9th day of March, 1998.
G.T. INVESTMENT PORTFOLIOS, INC.
By: William J. Guilfoyle*
President
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment to the Registration Statement of G.T. Investment
Portfolios, Inc. has been signed below by the following persons in the
capacities indicated on the 9th day of March, 1998.
<TABLE>
<S> <C>
William J. Guilfoyle* President, Director and
Chairman of the Board
(Principal Executive Officer)
/s/ KENNETH W. CHANCEY Vice President and
- ------------------------------------------- Principal Accounting Officer
Kenneth W. Chancey
C. Derek Anderson* Director
Arthur C. Patterson* Director
Frank S. Bayley* Director
Ruth H. Quigley* Director
Robert G. Wade Jr.* Director
*By: /s/ MICHAEL A. SILVER
- ------------------------------------------
Michael A. Silver
Attorney-in-Fact, pursuant to
Power of Attorney filed herewith
</TABLE>
C-7
<PAGE>
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
Helge K. Lee and Michael A. Silver, and each of them, with full power to act
without the other, his or her true and lawful attorney-in-fact and agent, with
full power of substitution and resubstitution, for him or her and in his or her
name, place and stead, in any and all capacities (until revoked in writing) to
sign the Registration Statement and any and all Amendments to the Registration
Statement (including Post-Effective Amendments), and to file the same, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do and perform each and
every act and thing ratifying and confirming all that said attorneys-in-fact and
agents or any of them, or their or his substitute or substitutes, may lawfully
do or cause to be done by virtue hereof.
G.T. INVESTMENT PORTFOLIOS, INC.
<TABLE>
<S> <C> <C>
/s/ WILLIAM J. GUILFOYLE Director, Chairman of the
- ---------------------------------------- Board and President October 14, 1997
William J. Guilfoyle
/s/ C. DEREK ANDERSON
- ---------------------------------------- Director October 14, 1997
C. Derek Anderson
/s/ FRANK S. BAYLEY
- ---------------------------------------- Director October 14, 1997
Frank S. Bayley
/s/ ARTHUR C. PATTERSON
- ---------------------------------------- Director October 14, 1997
Arthur C. Patterson
/s/ RUTH H. QUIGLEY
- ---------------------------------------- Director October 14, 1997
Ruth H. Quigley
/s/ ROBERT G. WADE JR.
- ---------------------------------------- Director October 14, 1997
Robert G. Wade Jr.
</TABLE>
C-8
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
EXHIBIT 4: INSTRUMENTS DEFINING THE RIGHTS
OF SHAREHOLDERS
Sections 2.01, 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09 and 2.10 of the
Registrant's By-Laws provide as follows:
Section 2.01. ANNUAL MEETINGS: To the extent the Corporation is required
to hold annual meetings of its stockholders, the annual meeting of stockholders
shall be held in the month of May each year at a time to be established by the
Board of Directors of the Corporation, at which meeting the stockholders shall
elect a board of Directors and may transact such other business within the
powers of the Corporation as may properly come before the meeting. Any business
of the Corporation may be transacted at the annual meeting without being
specially designated in the notice, except such business as is specifically
required by the statute to be stated in the office. So long as the Corporation
is registered as an investment company under the 1940 Act, the corporation shall
not be required to hold an annual meting of the holders of shares of any class
or series in any year in which none of the following is required to be acted on
by the holders of shares of such class or series under the 1940 Act; (a)
election of directors, (b) approval of the Corporation's investment advisory
agreement with respect to such class or series, (c) ratification of the
selection of independent public accountants, and (d) approval of the
corporation's distribution agreement with respect to such class or series.
Failure to hold an annual meeting does not invalidate the Corporation's
existence or affect any otherwise valid corporate acts.
[MGCL, Section 2-501]
Section 2.02. SPECIAL MEETINGS: Special Meetings of the stockholders may
be called at any time by the Chairman of the Board, the President or by any Vice
President, or by the Board of Directors. Special meetings of the stockholders
shall be called by the Secretary upon the written request of stockholders cast
at such meeting, PROVIDED that (a) such request shall state the purpose or
purposes of such meeting and the matters proposed to be acted on, and (b) the
stockholders requesting such meeting shall have paid to the Corporation the
reasonably estimated cost of preparing and mailing the notice thereof, which the
Secretary shall determine and specify to such stockholders. No special meeting
need be called upon the request of the holders of shares entitled to cast less
than a majority of all votes entitled to be cast at such meeting, to consider
any matter which is substantially the same as a matter voted upon at any special
meeting of the stockholders held during the preceding 12 months. [MGCL, Section
2-502]
Section 2.03. PLACE OF MEETINGS: All stockholders' meetings shall be held
at such place within the United States as may be fixed from time to time by the
Board of Directors. [MGCL, Section 2-503]
Section 2.04. NOTICE OF MEETINGS: Not less than 10 days nor more than 90
days before the date of every stockholders' meeting, the Secretary or an
Assistant Secretary of the Corporation shall give to each stockholder entitled
to vote at the meeting and each other
<PAGE>
stockholder entitled to notice of the meeting written or printed notice stating
(1) the time and place of the meeting and, (2) the purpose or purposes of the
meeting if the meeting is a special meeting or if notice of the purpose is
required by law to be given. Such notice shall be personally delivered to the
stockholder, or left at his residence or usual place of business, or mailed to
him at his address as it appears on the records of the Corporation. No notice
of a stockholders' meeting need be given to any stockholder who shall sign a
written waiver of such notice whether before or after the holding of such
meeting, which shall be filed with the records of stockholders' meetings, or to
any stockholder who shall attend such meeting in person or by proxy. A meeting
of stockholders convened on the date for which it was called may be adjourned
from time to time without further notice to a date not more than 120 days after
the original record date. [MGCL, Sections 2-504, 2-511(d)]
Section 2.05. VOTING - IN GENERAL: At every stockholders' meeting each
stockholder shall be entitled to one vote for each share of stock of the
Corporation validly issued and outstanding and held by such stockholder, except
that no shares held by the Corporation shall be entitled to a vote unless they
are held by it in a fiduciary capacity, in which case they may be voted and
shall be counted in determining the total number of outstanding shares at any
given time. Fractional shares shall be entitled to fractional votes. Except as
otherwise specifically provided in the Articles of Incorporation or these By-
Laws or as required by provisions of the United States Investment Company Act,
as amended from time to time, all matters shall be decided by a vote of the
majority of the votes cast at a meeting at which a quorum is present. The vote
upon any question shall be by ballot whenever requested by any person entitled
to vote, but, unless such a request is made, voting may be conducted in any way
approved by the meeting. [MGCL, Sections 2-506(a)(2), 2-507(a), 2-509(b)]
Section 2.06. STOCKHOLDERS ENTITLED TO VOTE: If, pursuant to Section 8.05
hereof, a record date has been fixed for the determination of stockholders
entitled to notice of or vote at any stockholders' meeting, each stockholder of
the Corporation shall be entitled to vote in person or by proxy, each share or
fraction of a share of stock standing in his name on the books of the
Corporation on such record date and outstanding at the time of the meeting. If
no record date has been fixed for the determination of stockholders, the record
date for the determination of stockholders entitled to notice of or to vote at a
meeting of stockholders shall be at the close of business on the day on which
notice of the meeting is mailed or the day 30 days before the meeting, whichever
is the closer date to the meeting, or, if notice is waived by all stockholders,
at the close of business on the tenth day next preceding the day on which the
meeting is held. [MCGL, Sections 2-207, 2-511]
Section 2.07. VOTING - PROXIES: The right to vote by proxy shall exist
only if the instrument authorizing such proxy to act shall have been executed in
writing by the stockholder himself or by his attorney thereunto duly authorized
in writing. No proxy shall be valid after eleven months from its date unless it
provides for a longer period. [MCGL, Section 2-507]
Section 2.08. QUORUM: The presence at any stockholders' meeting, in
person or by proxy, of stockholders entitled to cast a majority of the votes
entitled to be cast at the meeting
2
<PAGE>
shall be necessary and sufficient to constitute a quorum for the transaction of
business. [MGCL, Section 2-506]
Section 2.09. ABSENCE OF QUORUM: In the absence of a quorum, the holders
of a majority of shares entitled to vote at the meeting and present thereat in
person or by proxy, or, if no stockholder entitled to vote is present thereat in
person or by proxy, any officer present thereat entitled to preside or act as
Secretary of such meeting, may adjourn the meeting SINE DIE or from time to
time. Any business that might have been transacted at the meeting originally
called may be transacted at any such adjourned meeting at which a quorum is
present. [MGCL, Section 2-511(d)]
Section 2.10. STOCK LEDGER AND LIST OF STOCKHOLDERS: It shall be the duty
of the Secretary or Assistant Secretary of the Corporation to cause an original
or duplicate stock ledger to be maintained at the office of the Corporation's
transfer agent, containing the names and addresses of all stockholders and the
number of shares of each class held by each stockholder. Such stock ledger may
be in written form or any other form capable of being converted into written
form within a reasonable time for visual inspection. Any one or more persons,
who together are and for at least six months have been stockholders of record of
at least 5% of the outstanding capital stock of the Corporation, may submit
(unless the Corporation at the time of the request maintains a duplicate stock
ledger at its principal office) a written request to any officer of the
Corporation or its resident agent in Maryland for a list of the stockholders of
the Corporation. Within 20 days after such a request, there shall be prepared
and filed at the Corporation's principal office a list containing the names and
addresses of all stockholders of the Corporation and the number of shares of
each class held by each stockholder, certified as correct by an officer of the
Corporation, by its stock transfer agent, or by its registrar. [MGCL,
Section 2-209, 2-513]
3
<PAGE>
FUND ACCOUNTING AND PRICING AGENT AGREEMENT
This Fund Accounting and Pricing Agent Agreement (the "Agreement") is made
as of January 13, 1998, by and between G.T. Investment Portfolios, Inc. (the
"Company") and Chancellor LGT Asset Management, Inc. ("Chancellor LGT").
WHEREAS, the Company is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment company;
WHEREAS, the Company currently operates one mutual fund, which is organized
as a separate and distinct series consisting of shares of common stock (such
existing fund and such funds as may hereafter be established being referred to
in this Agreement as the "Funds" and singly as a "Fund");
WHEREAS, the Company is part of a complex of investment companies that are
managed and/or administered by Chancellor LGT and with which Chancellor LGT has
entered into Fund Accounting and Pricing Agent Agreements (the "GT Global Group
of Funds");
WHEREAS, the Company desires to retain Chancellor LGT to act as its
accounting and pricing agent, and Chancellor LGT is willing to act in such
capacities.
NOW, THEREFORE, in consideration of the foregoing and the terms and
conditions hereinafter set forth, the Company and Chancellor LGT hereby agree as
follows:
SECTION 1. APPOINTMENT. The Company hereby appoints Chancellor LGT
to act as the accounting and pricing agent for each Fund for the period and on
the terms and conditions set forth in this Agreement. Chancellor LGT hereby
accepts such appointment and agrees to render the services set forth for the
compensation herein provided.
SECTION 2. DEFINITIONS. As used in this Agreement and in addition to
the terms defined elsewhere herein, the following terms shall have the meanings
assigned to them in this Section:
(a) "Authorized Person" means any officer of the Company and any
other person, whether or not any such person is an officer or employee of
the Company, duly authorized by the Board of Directors (the "Board"), the
President or any Vice President of the Fund to give Oral and/or Written
Instructions on behalf of the Company or any Fund.
(b) "Commission" means the Securities and Exchange Commission.
(c) "Custodian" means the custodian or custodians employed by
the Company to maintain custody of the Fund's assets.
<PAGE>
(d) "Governing Documents" means the Articles of Incorporation,
By-Laws and other applicable charter documents of the Company, all as they
may be amended from time to time.
(e) "Oral Instruction" means oral instructions actually received
by Chancellor LGT from an Authorized Person or from a person reasonably
believed by Chancellor LGT to be an Authorized Person, provided that, any
Oral Instruction shall be promptly confirmed by Written Instructions.
(f) "Prospectus" means the current prospectus and statement of
additional information of a Fund, taken together.
(g) "Shares" means shares of common stock of any of the Funds.
(h) "Shareholder" means any owner of Shares.
(i) "Written Instructions" means written instructions delivered
by hand, mail, tested telegram or telex, cable or facsimile sending device
received by Chancellor LGT and signed by an Authorized Person.
SECTION 3. COMPLIANCE WITH LAWS, ETC. In performing its
responsibilities hereunder, Chancellor LGT shall comply with all terms and
provisions of the Governing Documents, the Prospectus and all applicable state
and federal laws including, without limitation, the 1940 Act and the rules and
regulations promulgated by the Commission thereunder.
SECTION 4. SERVICES. In consideration of the compensation payable
hereunder and subject to the supervision and control of the Company's Boards,
Chancellor LGT shall provide the following services to the Funds:
(a) PRICING AGENT. As pricing agent, Chancellor LGT shall:
(1) Obtain security market quotes from services approved by
the investment manager of the Funds or, if such quotes are
unavailable, then obtain such prices from the investment manager of
the Funds or from such sources as the investment manager may direct,
and, in either case, calculate the market value of the Funds'
investments; and
(2) Value the assets of the Funds and compute the net asset
value per Share of the Funds at such dates and times and in the manner
specified in the then currently effective Prospectus and transmit to
the Funds' investment manager.
(b) ACCOUNTING AGENT. As fund accounting agent, Chancellor LGT
shall:
- 2 -
<PAGE>
(1) Calculate the net income of each Fund;
(2) Calculate capital gains or losses for each Fund from the
sale or disposition of assets, if any;
(3) Maintain the general ledger and other accounts, books and
financial records of the Company, as required under Section 31(a) of
the 1940 Act and the rules promulgated by the Commission thereunder in
connection with the services provided by Chancellor LGT;
(4) Perform the following functions on a daily basis:
(A) journalize each Fund's investment, capital share
and income and expense activities;
(B) reconcile cash and investment balances of each Fund
with the Custodian and provide the Funds' investment manager with
the beginning cash balance available for investment purposes and
update the cash availability throughout the day as required by
the investment manager;
(C) verify investment buy/sell trade tickets received from
a Fund's investment manager and transmit trades to a Fund's
Custodian for proper settlement;
(D) maintain individual ledgers for investment securities;
(E) maintain historical tax lots for investment securities;
(F) calculate various contractual expenses (e.g., advisory
and custody fees);
(G) post to and prepare the Funds' statement of assets and
liabilities and statement of operations; and
(H) monitor expense accruals and notify an Authorized
Person of any proposed adjustments;
(5) Receive and act upon notices, Oral and Written Instructions,
certificates, instruments or other communications from a Fund's
shareholder servicing and transfer agent;
(6) Assist in the preparation of financial statements
semiannually
- 3 -
<PAGE>
which will include the following items:
(A) schedule of investments;
(B) statement of assets and liabilities;
(C) statement of operations;
(D) changes in net assets;
(E) cash statement; and
(F) schedule of capital gains and losses;
(7) Prepare monthly security transaction listings;
(8) Prepare quarterly broker security transactions summaries;
and
(9) At the reasonable request of the Company, assist in the
preparation of various reports or other financial documents required
by federal, state and other appropriate laws and regulations.
SECTION 5. COMPENSATION. As compensation for the services rendered
by Chancellor LGT hereunder during the term of the Agreement, each Fund shall
pay to Chancellor LGT monthly such fees as shall be agreed to from time to time
by the Company and Chancellor LGT, in writing and attached hereto as Schedule A.
In addition, as may be agreed to from time to time in writing by the Company and
Chancellor LGT, each Fund shall reimburse Chancellor LGT for certain expenses
that it incurs in rendering services with respect to that Fund under this
Agreement.
SECTION 6. RELIANCE BY CHANCELLOR LGT ON INSTRUCTIONS. Unless
otherwise provided in this Agreement, Chancellor LGT shall act only upon Oral or
Written Instructions. Chancellor LGT shall be entitled to rely upon any such
Instructions actually received by it under this Agreement. The Company agrees
that Chancellor LGT shall incur no liability to the Company or any of the Funds
in acting upon Oral or Written Instructions given to Chancellor LGT hereunder,
provided that, such Instructions reasonably appear to have been received from an
Authorized Person.
SECTION 7. COOPERATION WITH AGENTS OF THE COMPANY. Chancellor LGT
shall cooperate with the Company's agents and employees, including, without
limitation, their independent accountants, and shall take all reasonable action
in the performance of its obligations under this Agreement to assure that all
necessary information is made available to such agents to the extent necessary
in the performance of their duties to the Company.
- 4 -
<PAGE>
SECTION 8. CONFIDENTIALITY. Chancellor LGT, on behalf of itself and
its employees, agrees to treat confidentially all records and other information
relating to the Company and the Funds except when requested to divulge such
information by duly constituted authorities provided that notification and prior
approval is obtained from the Company, which approval shall not be unreasonably
withheld and may not be withheld if Chancellor LGT, in its judgment, may be
subject to civil or criminal contempt proceedings for failure to comply.
SECTION 9. STANDARD OF CARE. In the performance of its
responsibilities hereunder, Chancellor LGT shall exercise care and diligence in
the performance of its duties and act in good faith and use its best efforts to
ensure the accuracy and completeness of all services under this Agreement. In
performing services hereunder, Chancellor LGT:
(a) shall be under no duty to take any action on behalf of the
Company or the Funds except as specifically set forth herein or as may be
specifically agreed to by Chancellor LGT in writing, and in computing the
net asset value per Share of a Fund, Chancellor LGT may rely upon any
information furnished to it including, without limitation, information (1)
as to the accrual of liabilities of a Fund and as to liabilities of a Fund
not appearing on the books of account kept by Chancellor LGT, (2) as to the
existence, status and proper treatment of reserves, if any, authorized by a
Fund, (3) as to the sources of quotations to be used in computing net asset
value, (4) as to the fair value to be assigned to any securities or other
property for which price quotations are not readily available and (5) as to
the sources of information with respect to "corporate actions" affecting
portfolio securities of a Fund (information as to "corporate actions" shall
include information as to dividends, distributions, interest payments,
prepayments, stock splits, stock dividends, rights offerings, conversions,
exchanges, recapitalizations, mergers, redemptions, calls, maturity dates
and similar actions, including ex-dividend and record dates and the amounts
and terms thereof);
(b) shall be responsible and liable for all losses, damages and
costs (including reasonable attorneys' fees) incurred by the Company or any
Fund which is due to or caused by Chancellor LGT's negligence in the
performance of its duties under this Agreement or for Chancellor LGT's
negligent failure to perform such duties as are specifically assumed by
Chancellor LGT in this Agreement, provided that, to the extend that duties,
obligations and responsibilities are not expressly set forth in this
Agreement, Chancellor LGT shall not be liable for any act or omission that
does not constitute willful misfeasance, bad faith or negligence on the
part of Chancellor LGT or reckless disregard by Chancellor LGT of such
duties, obligations and responsibilities; and
(c) without limiting the generality of the foregoing, Chancellor
LGT shall not, in connection with Chancellor LGT's duties under this
Agreement, be under any duty or obligation to inquire into and shall not be
liable for or in respect of:
(1) the validity or invalidity or authority or lack of
authority of any Oral or Written Instruction, notice or other
instrument which conforms
- 5 -
<PAGE>
to the applicable requirements of this Agreement, if any and that
Chancellor LGT reasonably believes to be genuine; and
(2) delays or errors or loss of data occurring by reason of
circumstances beyond Chancellor LGT's control including, without
limitation, acts of civil or military authorities, national
emergencies, labor difficulties, fire, mechanical breakdown,
denial of access, earthquake, flood or catastrophe, acts of God,
insurrection, war, riots, or failure of the mails,
transportation, communication or power supply.
Notwithstanding any other provisions of this Agreement, the following provisions
shall apply with respect to Chancellor LGT's computation of a Fund's net asset
value: Chancellor LGT shall be held to the exercise of reasonable care in
computing and determining net asset value as provided in Section 4(a), above,
but shall not be held accountable or liable for any losses, damages or expenses
of a Fund or any Shareholder or former Shareholder may incur arising from or
based upon errors or delays in the determination of such net asset value unless
such error or delay was due to Chancellor LGT's negligence or willful
misfeasance in the computation and determination of such net asset value. The
parties hereto acknowledge, however, that Chancellor LGT causing an error or
delay in the determination of net asset value may, but does not in an of itself,
constitute negligence or willful misfeasance. In no event shall Chancellor LGT
be liable or responsible to the Company or a Fund or any other party for any
error or delay which continued or was undetected after the date of an audit of
the Company or any Fund performed by the certified public accountants employed
by the Company if, in the exercise of reasonable care in accordance with
generally accepted accounting principles, such accountants should have become
aware of such error or delay in the course of performing such audit. Chancellor
LGT's liability for any such negligence or willful misfeasance which results in
an error in determination of such net asset value be limited to the direct out-
of-pocket loss a Fund and/or any Shareholder or former Shareholder shall
actually incur.
Without limiting the generality of the foregoing, Chancellor LGT shall
not be held accountable or liable to a Fund a Shareholder or former Shareholder
or any other person for any delays or losses, damages or expenses any of them
may suffer or incur resulting from (1) Chancellor LGT's failure to receive
timely and suitable notification concerning quotations, corporate actions or
similar matters relating to or affecting portfolio securities of a Fund or (2)
any errors in the computation of a net asset value based upon or arising out of
quotations or information as to corporate actions if received by Chancellor LGT
from a source that Chancellor LGT was authorized to rely upon. Nevertheless,
Chancellor LGT will use its best judgment in determining whether to verify
through other sources any information that it has received as to quotations or
corporate actions if Chancellor LGT has reason to believe that any such
information is incorrect.
SECTION 10. RECEIPT OF ADVICE. If Chancellor LGT is in doubt as to
any action to be taken or omitted by it, Chancellor LGT may request, and shall
be entitled to rely upon, directions and advice from the Company, including Oral
or Written Instructions where
- 6 -
<PAGE>
appropriate, or from counsel of its own choosing (who may also be counsel for
the Company or any Fund), with respect to any question of law. In case of
conflict between directions, advice or Oral and Written Instructions received by
Chancellor LGT pursuant to this Section, Chancellor LGT shall be entitled to
rely on and follow the advice received from counsel as described above.
Chancellor LGT shall be protected in any action or in action that it takes in
reliance on any directions, advice or Oral or Written Instructions received
pursuant to this Section that Chancellor LGT, after the receipt of the same, in
good faith believes to be consistent with such directions, advice or Oral or
Written Instructions, as the case may be. Notwithstanding the foregoing,
nothing in this Section shall be construed as imposing on Chancellor LGT any
obligation to seek such directions, advice or Oral or Written Instruction, or to
act in accordance with them when received, unless the same is a condition to
Chancellor LGT's properly taking or omitting to take such action under the terms
of this Agreement.
SECTION 11. INDEMNIFICATION OF CHANCELLOR LGT. The Company agrees to
indemnify and hold harmless Chancellor LGT and its officers, directors,
employees, nominees and subcontractors, if any, from all taxes, charges,
expenses, assessments, claims and liabilities, including, without limitation,
liabilities arising under the 1940 Act, the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, the Commodities Exchange Act
and any state or foreign securities or blue sky laws, and expenses, including,
without limitation, reasonable attorneys' fees and disbursements, arising
directly or indirectly from any action or thing that Chancellor LGT takes or
omits to take or do:
(a) at the request or on the direction of or in reliance upon
the advice of the Company;
(b) upon Oral or Written Instructions; or
(c) in the performance by Chancellor LGT of its responsibilities
under this Agreement;
provided that, Chancellor LGT shall not be indemnified against any liability to
the Company or the Funds, or any expenses incident thereto, arising out of
Chancellor LGT's own willful misfeasance, bad faith or negligence or reckless
disregard of its duties in connection with the performance of its duties and
obligations specifically described in this Agreement.
SECTION 12. INDEMNIFICATION OF THE COMPANY. Chancellor LGT agrees to
indemnify and hold harmless the Company and its officers, trustees, directors
and employees, from all taxes, charges, expenses, assessments, claims and
liabilities, including, without limitation, liabilities arising under the 1940
Act, the Securities Act of 1933, as amended, the Securities Exchange Act of
1934, as amended, the Commodities Exchange Act and any state or foreign
securities or blue sky laws, and expenses, including, without limitation,
reasonable attorneys' fees and disbursements, arising directly or indirectly
from any action or omission of Chancellor LGT that does not meet the standard of
care to which Chancellor LGT is subject under Section 9, above.
- 7 -
<PAGE>
SECTION 13. LIMITATION OF LIABILITY OF SHAREHOLDERS AND TRUSTEES OF
THE COMPANY. It is expressly agreed that the obligations of the Company
hereunder shall not be binding upon any of the shareholders, trustees,
directors, officers, nominees, agents or employees of the Company personally,
but shall only bind the assets and property of the applicable Funds, as provided
in the Governing Documents. The execution and delivery of this Agreement has
been authorized by the Board of the Company, and this Agreement has been
executed and delivered by an authorized officer of the Company acting as such,
and neither such authorization by the Board nor such execution and delivery by
such officer shall be deemed to have been made by any of them individually or to
impose any liability on any of them personally, but shall bind only the assets
and property of the applicable Fund as provided in the Governing Documents.
SECTION 14. DURATION AND TERMINATION. This Agreement shall continue
with respect to the Company and each Fund until termination with respect to the
Company, or with respect to one or more Funds, is effected by the Company or
Chancellor LGT upon sixty days' prior written notice to the other. In the event
of the "assignment" of this Agreement within the meaning of the 1940 Act, this
Agreement shall terminate automatically.
SECTION 15. NOTICES. All notices and other communications hereunder,
including Written Instructions, shall be in writing or by confirming telegram,
cable, telex or facsimile sending device. Notices with respect to a party shall
be directed to such address as may from time to time be designated by that party
to the other.
SECTION 16. FURTHER ACTIONS. The Company and Chancellor LGT agree to
perform such further acts and to execute such further documents as may be
necessary or appropriate to effect the purposes of this Agreement.
SECTION 17. AMENDMENTS. This Agreement, or any part thereof, may be
amended only by an instrument in writing signed by the Company and Chancellor
LGT.
SECTION 18. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together constitute one and the same instrument.
SECTION 19. MISCELLANEOUS. This Agreement embodies the entire
agreement and understanding between the Company and Chancellor LGT and
supersedes all prior agreements and understandings relating to the subject
matter hereof, provided that the Company and Chancellor LGT may embody in one or
more separate documents their agreement or agreements with respect to such
matters that this Agreement provides may be later agreed to by and between the
Company and Chancellor LGT from time to time. The captions in this Agreement
are included for convenience of reference only and in no way define or delimit
any of the provisions hereof or otherwise affect their construction or effect.
This Agreement shall be governed by and construed in accordance with California
law. If any provision of this
- 8 -
<PAGE>
Agreement shall be held or made invalid by a court decision, statute, rule or
otherwise, the remainder of this Agreement shall not be affected thereby. This
Agreement shall be binding upon and shall inure to the benefit of the Company
and Chancellor LGT and their respective successors.
IN WITNESS WHEREOF, the Company and Chancellor LGT have caused this
Agreement to be executed by their officers designated below as of this day,
month and year first above written.
G.T. INVESTMENT PORTFOLIOS, INC.
By:
----------------------------
Attest:
-----------------------
CHANCELLOR LGT ASSET MANAGEMENT, INC.
By:
----------------------------
Attest:
-----------------------
- 9 -
<PAGE>
SCHEDULE A
FUND ACCOUNTING AND PRICING AGENT FEES
The Fund shall pay a Fee to Chancellor LGT determined as a percentage of
the Fund's net assets. The annualized rate at which the fee is paid (the Fee
Rate) and the Fee shall be calculated as set forth below:
- - An ASSET MULTIPLIER is determined by multiplying .0003 times the first $5
billion in average net assets of the GT Global Funds plus .0002 times the
net assets over $5 billion.
- - The FEE RATE is determined by dividing the Asset Multiplier by the net
assets of the GT Global Funds.
- - The MONTHLY FEE is determined then by multiplying the average daily Fee
Rate by the number of days in the month and by the Fund's average daily net
assets then dividing by 365/or 366
Example: For Fund X having $100 million in average net assets during December
1997, in which the GT Global Funds have average net assets of $8 billion:
Asset Multiplier = (.0003) ($5 billion) + (.0002) ($3 billion)
= $2.1 million
Fee Rate = $2.1 million = .0002625
------------
$8 billion
Monthly Fee = ( 31 ) (.0002625) ($100 million) = $2,229.45
-----
( 365 )
- 10 -
<PAGE>
[LETTERHEAD]
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
GT Global Investment Portfolios, Inc.:
We hereby consent to the inclusion of our report dated
February 17, 1998 on our audit of the financial statements and
financial highlights of the GT Global Dollar Fund as of
December 31, 1997 in the Statement of Additional Information with
respect to the Post-Effective Amendment to the Registration
Statements on Form N-1A under the Securities Act of 1933, as
amended, of the GT Global Investment Portfolios, Inc. We further
consent to the reference to our Firm under the captions
"Financial Highlights" and "Other Information" in the Prospectus
and "Independent Accountants" in the Statement of Additional
Information.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
March 6, 1998
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS LEGEND CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FUND'S
ANNUAL FINANCIAL STATMENTS AND IS QUALFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000355978
<NAME> G.T. INVESTMENT PORTFOLIOS, INC.
<SERIES>
<NUMBER> 011
<NAME> GT GLOBAL DOLLAR FUND - CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 226196
<INVESTMENTS-AT-VALUE> 226196
<RECEIVABLES> 72968
<ASSETS-OTHER> 22
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 299186
<PAYABLE-FOR-SECURITIES> 0
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<OTHER-ITEMS-LIABILITIES> 22298
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 276889
<SHARES-COMMON-STOCK> 186671
<SHARES-COMMON-PRIOR> 392684
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 276889
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 15171
<OTHER-INCOME> 0
<EXPENSES-NET> 3470
<NET-INVESTMENT-INCOME> 11701
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 11701
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7588)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6222351
<NUMBER-OF-SHARES-REDEEMED> (6432557)
<SHARES-REINVESTED> 4193
<NET-CHANGE-IN-ASSETS> (259021)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1385
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4274
<AVERAGE-NET-ASSETS> 276986
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.05)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.98
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS LEGEND CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FUND'S
ANNUAL FINANCIAL STATMENTS AND IS QUALFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000355978
<NAME> G.T. INVESTMENT PORTFOLIOS, INC.
<SERIES>
<NUMBER> 012
<NAME> GT GLOBAL DOLLAR FUND - CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 226196
<INVESTMENTS-AT-VALUE> 226196
<RECEIVABLES> 72968
<ASSETS-OTHER> 22
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 299186
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22298
<TOTAL-LIABILITIES> 22298
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 276889
<SHARES-COMMON-STOCK> 83457
<SHARES-COMMON-PRIOR> 128266
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 276889
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 15171
<OTHER-INCOME> 0
<EXPENSES-NET> 3470
<NET-INVESTMENT-INCOME> 11701
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 11701
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3721)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1763392
<NUMBER-OF-SHARES-REDEEMED> (1810681)
<SHARES-REINVESTED> 2479
<NET-CHANGE-IN-ASSETS> (259021)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1385
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4274
<AVERAGE-NET-ASSETS> 276986
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.04)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.73
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
THIS LEGEND CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FUND'S
ANNUAL FINANCIAL STATMENTS AND IS QUALFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000355978
<NAME> G.T. INVESTMENT PORTFOLIOS, INC.
<SERIES>
<NUMBER> 013
<NAME> GT GLOBAL DOLLAR FUND - ADVISOR CLASS
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 226196
<INVESTMENTS-AT-VALUE> 226196
<RECEIVABLES> 72968
<ASSETS-OTHER> 22
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 299186
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22298
<TOTAL-LIABILITIES> 22298
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 276889
<SHARES-COMMON-STOCK> 6780
<SHARES-COMMON-PRIOR> 14978
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 276889
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 15171
<OTHER-INCOME> 0
<EXPENSES-NET> 3470
<NET-INVESTMENT-INCOME> 11701
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 11701
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (392)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 223290
<NUMBER-OF-SHARES-REDEEMED> (231711)
<SHARES-REINVESTED> 222
<NET-CHANGE-IN-ASSETS> (259021)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1385
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4274
<AVERAGE-NET-ASSETS> 276986
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.05)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.98
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<PAGE>
G.T. INVESTMENT PORTFOLIOS, INC.
AMENDED MULTIPLE CLASS PLAN PURSUANT TO RULE 18f-3
G.T. Investment Portfolios, Inc. ("Trust") hereby adopts this Amended
Multiple Class Plan pursuant to Rule 18f-3 under the Investment Company Act of
1940, as amended (the "1940 Act") on behalf of its current series, GT Global
Dollar Fund, and any series that may commence operations in the future (referred
to hereinafter as the "Fund").
A. GENERAL DESCRIPTION OF CLASSES THAT ARE OFFERED
1. CLASS A SHARES. Class A shares of the Fund are sold to the general
public subject to an initial sales charge of up to 4.75% of the public offering
price. The initial sales charge is waived for certain eligible purchasers and
reduced or waived for certain large volume purchases, all as set forth in the
prospectus of the Trust.
Class A shares of the Fund are subject to a "service" fee at the annualized
rate of up to 0.25% of the average daily net assets for the Fund's Class A
shares. Class A shares of the Fund also are subject to a "distribution" fee at
the annualized rate of up to 0.50% of the average daily net assets for the
Fund's Class A shares, less any amounts paid by the Fund as the aforementioned
service fee. Such fees are paid pursuant to a plan of distribution adopted in
accordance with Rule 12b-1 under the 1940 Act.
Class A shares of the Fund that are purchased without an initial sales
charge due to the sales charge waiver for purchases of $500,000 or more are
subject to a contingent deferred sales charge ("CDSC") on redemptions of shares
made within one year after the date of purchase. The Class A CDSC is equal to
1% of the lower of (i) the original purchase price, or (ii) the net asset value
of the shares at the time of redemption. Class A shares that are redeemed will
not be subject to a CDSC to the extent that the value of such shares represents:
(i) reinvestment of dividends or other distributions, or (ii) Class A shares
redeemed one year or more after their purchase. Class A shares purchased in
amounts of at least $500,000 without a sales charge may be exchanged for Class A
shares of another GT Global Mutual Fund (other than GT Global Dollar Fund)
without the imposition of a CDSC, although the CDSC will apply to the redemption
of the shares acquired through an exchange.
2. CLASS B SHARES. Class B shares of the Fund are sold to the general
public without imposition of an initial sales charge; however, a CDSC is imposed
on certain redemptions of Class B shares. The maximum CDSC for Class B shares
is equal to 5% of the lesser of the original purchase price or the net asset
value of the shares at the time of redemption. The CDSC is waived for certain
exchanges and redemptions.
Class B shares that are redeemed will not be subject to a CDSC to the
extent that the value of such shares represents: (i) reinvestment of dividends
or other distributions, or (ii) shares redeemed more than six years after their
purchase.
<PAGE>
Class B shares are subject to a service fee at the annualized rate of up to
0.25% of the average daily net assets of the Class B shares of the Fund and a
distribution fee at the annualized rate of up to 0.75% of the average daily net
assets of the Fund's Class B shares. Such fees are paid pursuant to a plan of
distribution adopted in accordance with Rule 12b-1 under the 1940 Act.
Class B shares automatically will convert to Class A shares as of the close
of business on the last business day of the month in which the seventh
anniversary of the initial issuance of such Class B shares occurs. For purposes
of calculating the holding period required for conversion of Class B shares, the
initial issuance date is (i) the date on which such Class B shares were issued;
or (ii) for Class B shares obtained through an exchange, or a series of
exchanges, the date on which the original Class B shares were issued. The
conversion would be effected at the relative net asset value per share of each
class. At the time of conversion, a portion of Class B shares owned as a result
of reinvestment of dividends or other distributions ("Dividend Shares") also
would convert to Class A shares. The portion of Dividend Shares that would
convert would be determined by the ratio of converting Class B non-Dividend
Shares to the total Class B non-Dividend Shares held by the shareholder.
3. CLASS C SHARES. Class C shares of the Fund are sold to the general
public without imposition of an initial sales charge; however, a CDSC equal to
1% of the lesser of the original purchase price or the net asset value of the
shares at the time of redemption is imposed on certain redemptions of Class C
shares made within one year of purchase. Class C shares that are redeemed will
not be subject to a CDSC to the extent that the value of such shares represents:
(i) reinvestment of dividends or other distributions, or (ii) shares redeemed
more than one year after their purchase.
Class C shares are subject to a service fee at the annualized rate of up to
0.25% of the average daily net assets of the Class C shares of the Fund and a
distribution fee at the annualized rate of up to 0.75% of the average daily net
assets of the Fund's Class C shares. Such fees are paid pursuant to a plan of
distribution adopted in accordance with Rule 12b-1 under the 1940 Act.
4. ADVISOR CLASS SHARES. Advisor Class shares are sold without
imposition of an initial sales charge or CDSC and are not subject to any service
or distribution fees. Advisor Class shares of the Fund are offered only to such
investors as are eligible to purchase Advisor Class shares as described in the
prospectuses of the Trust.
2
<PAGE>
B. EXPENSE ALLOCATIONS OF EACH CLASS
Certain expenses may be attributable to a particular Class of shares
("Class Expenses"). Class Expenses are charged directly to the net assets of
the particular Class and, thus, are borne on a pro rata basis by the outstanding
shares of that Class.
In addition to the service and distribution fees described above, each
Class also could pay a different amount of the following other expenses:
(1) transfer agent fees identified as being attributable to a
specific Class of shares;
(2) stationary, printing, postage, and delivery expenses related to
preparing and distributing materials such as shareholder reports,
prospectuses, and proxy statements to current shareholders of a
specific Class of shares;
(3) Blue Sky fees incurred by a specific Class of shares;
(4) SEC registration fees incurred by a specific Class of shares;
(5) expenses of administrative personnel and services as required to
support the shareholders of a specific Class of shares;
(6) Trustees' fees or expenses incurred as a result of issues
relating to a specific Class of shares;
(7) accounting expenses relating solely to a specific Class of
shares;
(8) auditors' fees, litigation expenses, and legal fees and expenses
relating to a specific Class of shares; and
(9) expenses incurred in connection with shareholders meetings as a
result of issues relating to a specific Class of shares.
C. EXCHANGE PRIVILEGES
Class A shares of any Fund may be exchanged only for Class A shares of
other GT Global Mutual Funds, as listed in the Fund's Prospectus. Class B
shares of any Fund may be exchanged only for Class B shares of other GT Global
Mutual Funds, as listed in the Fund's Prospectus. Class C shares of any Fund
may be exchanged only for Class C shares of other GT Global Mutual Funds, as
listed in the Fund's Prospectus. Advisor Class shares of any Fund may
3
<PAGE>
be exchanged only for Advisor Class shares of other GT Global Mutual Funds, as
listed in the Fund's Prospectus.
This exchange privilege is available only in those jurisdictions where the
sale of GT Global Mutual Fund shares to be acquired may be legally made. The
terms of the exchange privileges may be modified at any time, on sixty days'
prior written notice to shareholders.
D. ADDITIONAL INFORMATION
The prospectus for the Fund contains additional information about the
Classes and the Fund's multiple class structure. This Amended Multiple Class
Plan is subject to the terms of the then current prospectus for the applicable
Classes; provided, however, that none of the terms set forth in any such
prospectus shall be inconsistent with the terms of the Classes contained in this
Plan.
E. DATE OF EFFECTIVENESS
This Amended Multiple Class Plan will become effective on January 13, 1998.
Before any material amendment of this Amended Multiple Class Plan, a majority of
the Trustees of the Trust, and a majority of the Trustees who are not interested
persons of the Trust, shall find that the plan as proposed to be adopted or
amended, including the expense allocation, is in the best interests of each
Class individually and the Trust as a whole.
4
