GLOBAL ASSET MANAGEMENT(R)
--------------------------------------------------------------------------------
GAM Funds, Inc.
SEMI-ANNUAL REPORT
(UNAUDITED)
FOR THE PERIOD ENDED
30TH JUNE, 2000
GAM GLOBAL FUND
GAM INTERNATIONAL FUND
GAM PACIFIC BASIN FUND
GAM JAPAN CAPITAL FUND
GAM EUROPE FUND
GAM NORTH AMERICA FUND
GAMERICA CAPITAL FUND
This report has been prepared for the information of shareholders of GAM Funds,
Inc., and is not authorized for distribution to prospective investors unless
preceded or accompanied by an effective prospectus that includes information
regarding the Funds' objectives, policies, management, records and other
information.
GAM FUNDS, INC.
INVESTMENT ADVISER:
GAM International Management Limited
<PAGE>
--------------------------------------------------------------------------------
The GAM Group
--------------------------------------------------------------------------------
The GAM group was founded in April 1983 by Gilbert de Botton. GAM's corporate
policy is to attempt to harness the top investment talent in the world, not only
in-house but also outside the GAM organization, in order to provide above
average, long-term growth. The GAM group currently has approximately US$13.5
billion under management and employs a worldwide staff of about 530 people. On
26th July, 2000, the Board of Directors of GAM Funds, Inc. approved the
resignation of Gilbert de Botton and the appointment of Dr Burkhard Poschadel as
President of the Fund and Chairman of the Board of Directors of the Fund. Dr
Poschadel received a Ph.D. in Economics from the University of Hamburg/Freiburg.
He was appointed Chief Executive Officer of the GAM Group in March, 2000 and has
been a long time employee of UBSAG("UBS"), wherein he served as the Head of
Portfolio Management and Investment Advisory Department.
For US investors, GAM offers GAM Funds, Inc. an open-end diversified
management investment company registered under the Investment Company Act of
1940, as amended. The Fund consists of seven open-end mutual funds-GAM Global,
GAM International, GAM Pacific Basin, GAM Japan Capital, GAM Europe, GAM North
America and GAMerica Capital Funds.
For additional information about any of the GAM Funds, please contact your
financial consultant or call GAM at 1-800-426-4685 (toll-free).
--------------------------------------------------------------------------------
Contents
--------------------------------------------------------------------------------
GAM Global ................................................................ 3
GAM International ......................................................... 8
GAM Pacific Basin ......................................................... 13
GAM Japan Capital ......................................................... 18
GAM Europe ................................................................ 23
GAM North America ......................................................... 28
GAMerica Capital .......................................................... 32
Financial Statements ...................................................... 38
Notes to Financial Statements ............................................. 45
<PAGE>
--------------------------------------------------------------------------------
GAM GLOBAL FUND
FUND MANAGEMENT
--------------------------------------------------------------------------------
[PHOTO]
JEAN-PHILIPPE CREMERS JOINED GAM IN APRIL, 1992. HE IS THE INVESTMENT DIRECTOR
RESPONSIBLE FOR GAM'S INTERNATIONAL/ GLOBAL INVESTMENTS. PRIOR TO THIS HE
ANALYZED THE JAPANESE AND US STOCK MARKETS AT THE TOKYO INVESTMENT INFORMATION
CENTRE IN HONG KONG. MR. CREMERS IS A GRADUATE IN APPLIED MATHEMATICS FROM
UNIVERSITE CATHOLIQUE DE LOUVAIN, BELGIUM AND HAS AN MBA FROM CORNELL
UNIVERSITY, NEW YORK.
The Fund's investment objective is to seek long-term capital appreciation,
generally through investment in equity securities issued by companies with
principal offices in the United States, Canada, the United Kingdom, Continental
Europe and the Pacific Basin. However, if the Fund determines that the long-term
capital appreciation of debt securities may equal or exceed the return on equity
securities, it may be substantially invested in debt securities of companies and
governments, their agencies and instrumentalities. Any income realized by the
Fund on its investments will be incidental to its goal of long-term capital
appreciation.
Investments in securities of foreign issuers involve additional risks and
expenses including currency rate fluctuations, political and economic
instability, foreign taxes and different accounting and reporting standards.
REPORT TO SHAREHOLDERS
--------------------------------------------------------------------------------
THE FACTS - CLASS A SHARES
GAM
Global
Class A (after Average
GAM maximum MSCI 1 Month
Global sales load World Deposit
Class A of 5%) Index Rate
30th June, 2000 US$18.60 US$19.58 1,377.72
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (14.72) (18.98) (3.47) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (14.48) (18.76) (2.41) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 (0.75) (5.71) 12.53 5.92
--------------------------------------------------------------------------------
5 years to June, 2000 10.61 9.48 17.53 5.61
--------------------------------------------------------------------------------
10 years to June, 2000 10.31 9.75 12.52 5.27
--------------------------------------------------------------------------------
Since inception 11.30 10.90 13.37 6.06
--------------------------------------------------------------------------------
Performance is calculated on a total return basis. Class A inception was on
28th May, 1986, Class B on 26th May, 1998, Class C on 19th May, 1998 and Class D
on 6th October, 1995. Past performance is not necessarily indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
3
===
GAM GLOBAL FUND / FUND MANAGEMENT
<PAGE>
[Table below represents line chart in its printed piece]
GAM
GLOBAL
CLASS A
(AFTER
AVERAGE MAXIMUM
GAM MSCI 1 MONTH SALES
GLOBAL WORLD DEPOSIT LOAD
CLASS A INDEX RATE OF 5%)
------- ----- ------- -----------
10000 10000 10000 10000
9971 9886.16 10016.7 9472.45
9998 9975.95 10030.2 9498.1
10014 10053.2 10043.6 9513.3
10069 10215.3 10053.2 9565.55
10304 10365 10066.7 9788.8
10243 10166.1 10083.8 9730.85
10261 10074.1 10093.3 9747.95
10156 10239.6 10110.4 9648.2
10143 10380.2 10123.7 9635.85
10183 10376.2 10136 9673.85
10610 10866.4 10148.4 10079.5
10789 11316.2 10160.8 10249.5
10834 11252.7 10173.2 10292.3
10780 11236.6 10185.6 10241
10604 11229.7 10196.7 10073.8
10174 10623.2 10207.8 9665.3
10264 10840.2 10215.8 9750.8
10229 10867.9 10226.9 9717.55
10382 10917.6 10241.8 9862.9
10283 10878.8 10253.6 9768.85
10045 10498.1 10265.3 9542.75
9860 10582.5 10277.1 9367
9895 10689.3 10288.9 9400.25
10008 10907.2 10300.4 9507.6
9904 10605.2 10311.8 9408.8
10233 10994.7 10323.3 9721.35
10533 11298.6 10334.8 10006.3
10355 11275.7 10347.1 9837.25
10263 11246.3 10359.5 9749.85
10411 11379.1 10368.4 9890.45
10469 11349.8 10380.8 9945.55
10515 11753.4 10389.9 9989.25
10743 12068 10410.2 10205.8
10848 12411.8 10423.1 10305.6
10874 12800.5 10436.1 10330.3
10813 12828.8 10449 10272.3
10836 12774.1 10461.2 10294.2
10853 12945.9 10473.3 10310.3
11025 13044.5 10485.5 10473.8
11039 13376.2 10497.6 10487
11064 13382.1 10510.3 10510.8
11286 13666.2 10523 10721.7
11208 13960.2 10532.1 10647.6
11349 13998.3 10544.8 10781.5
11409 14292.3 10561.4 10838.5
11285 14596.2 10574.5 10720.8
11490 14836.3 10587.5 10915.5
11318 14550.8 10600.5 10752.1
11690 15185.6 10610.2 11105.5
11666 15201.5 10627.7 11082.7
11456 14604.5 10641.3 10883.2
11526 14752 10654.9 10949.7
11603 14986.1 10668.5 11022.8
11662 15348.8 10683.1 11078.9
11850 15425.8 10697.7 11257.5
11845 15100.7 10708.1 11252.8
11673 14743.3 10722.7 11089.3
11631 14611.1 10741.2 11049.5
11826 14887.8 10755.4 11234.7
11461 14401.2 10769.7 10888
11641 15010 10784 11059
11656 14942 10790.1 11073.2
11826 15464.2 10812.2 11234.7
11934 15551 10826.2 11337.3
12056 15957.7 10840.2 11453.2
12146 15860.7 10854.2 11538.7
11840 15485.8 10869 11248
11836 15408 10883.9 11244.2
11905 15530.7 10894.5 11309.8
11839 15701.9 10909.3 11247
11921 15679.2 10929.8 11325
12016 15750.3 10946 11415.2
10789 13567.2 10955.3 10249.5
9926 12409.4 10978.4 9429.7
9765 12859.5 10994.7 9276.75
9721 12356.8 11009.4 9234.95
9979 12908.1 11024.2 9480.05
9987 13083.3 11038.9 9487.65
9743 12742.4 11053.7 9255.85
9695 12788.1 11070.7 9210.25
10028 13259.6 11087.6 9526.6
10207 13416.2 11102.2 9696.64
10113.2 13211.5 11116.7 9607.56
10157.3 13442.9 11128 9649.48
9838.55 13110.7 11151.7 9346.62
9718.31 13088 11166.7 9232.4
9645.51 13384.8 11179.6 9163.23
9679.7 13456.7 11196.8 9195.72
9716.1 13538.6 11211.1 9230.3
10086.8 13816.3 11225.3 9582.41
10272.1 14215.4 11239.5 9758.46
10441.9 14526.2 11247.7 9919.85
10617.3 14680.1 11268.2 10086.5
10807.1 14736 11282.6 10266.7
10780 14886.9 11295 10241
10676.3 14779 11307.4 10142.5
10799.7 14920.2 11325.8 10259.7
10963.3 15192.7 11340.2 10415.2
10855 14937.2 11346.4 10312.2
10957.6 15023.2 11369 10409.7
10909.2 15056.6 11377.2 10363.7
10397.3 14735.4 11398.6 9877.49
10374.3 14732.6 11413.9 9855.59
10449.2 14723.3 11429.2 9926.76
10807.7 14927.7 11444.5 10267.3
10905.7 15181.7 11460.8 10360.4
11094.7 15317.5 11477.1 10540
10896.5 15090.8 11491.1 10351.7
10751.2 14640.1 11505.1 10213.7
11038.3 14775.6 11526.7 10486.3
10828.5 14766.2 11543.7 10287
10858.4 14710.6 11560.7 10315.5
10910.3 14787.1 11577.6 10364.8
11098.2 15074.7 11594.6 10543.3
10675.2 14480.1 11612.4 10141.4
10844.6 14638.9 11630.2 10302.4
10858.4 14477 11648 10315.5
10778.9 14189.2 11665.8 10240
11031.3 14454.5 11684.2 10479.8
11144.3 14567.8 11702.7 10587.1
11309.1 14598.3 11710.6 10743.7
11303.4 14652 11734.3 10738.2
11502.8 14771.9 11758 10927.7
11629.6 15091 11776.6 11048.1
12027.3 15417.1 11795.2 11425.9
12188.7 15677.1 11813.8 11579.2
12245.1 15787.5 11832.5 11632.9
12235.9 15794.8 11851.2 11624.1
12248.6 15925.1 11869.9 11636.2
12371.9 16305.3 11888.6 11753.3
12496.4 16346.1 11907.3 11871.6
12716.6 16426.9 11929.3 12080.8
12565.6 16331.2 11951.3 11937.3
12599 16258.7 11973.3 11969.1
12688.9 16403 11989 12054.5
12831.9 16594.1 12004.7 12190.3
12971.3 16845.6 12038.1 12322.8
12752.3 16876.8 12059 12114.7
12932.1 17025 12079.9 12285.5
12874.5 17019.3 12094.8 12230.8
13299.8 17284.5 12122 12634.9
13297.5 17369.1 12143.1 12632.7
13124.6 17202.6 12164.3 12468.4
12845.7 16871.8 12179.4 12203.4
12899.9 16966.4 12208.7 12254.9
12869.9 16997.3 12231.9 12226.4
12712 16565.4 12255.2 12076.4
12693.5 16780.9 12271.7 12058.9
12907.9 17154.2 12301.6 12262.5
12980.5 16970.3 12325 12331.5
13159.2 17240 12348.5 12501.3
13030.1 17180.4 12371.9 12378.6
12950.6 17275.4 12395.4 12303.1
13033.6 17239.2 12418.6 12381.9
12747.7 17095.3 12441.7 12110.3
12676.3 16786.4 12464.9 12042.5
12893.9 16874.7 12488.1 12249.2
13091.4 16922.5 12511 12436.8
12961.3 16498.3 12533.9 12313.2
13312.5 16691.2 12556.8 12646.9
13450.9 16951.8 12573.2 12778.3
13855.3 17135.1 12602.6 13162.6
14101.3 17595.7 12625.3 13396.3
14248 17597 12647.9 13535.6
14471.5 18021.2 12670.6 13747.9
14828.6 18648.2 12693.2 14087.2
14872.4 18534.2 12714.3 14128.8
14795.5 18264.4 12735.4 14055.7
14796.7 18197.6 12747.4 14056.9
14722.2 18222.3 12777.5 13986.1
14745.8 17975.6 12799.2 14008.6
14622.8 17864.5 12821 13891.7
14533 18034.9 12842.7 13806.3
14771.9 18507.6 12858.3 14033.3
14935.1 18593.5 12873.8 14188.3
14847.5 18203.9 12908.5 14105.2
14321.3 17960.1 12930.7 13605.2
14465.6 18103.7 12953 13742.3
14465.6 18012.8 12975.2 13742.3
14304.7 17922.1 12996.7 13589.5
14503.4 18103.7 13018.1 13778.2
14674.9 18183.1 13039.6 13941.1
15020.2 18627.4 13061 14269.2
15422.3 19014.1 13082.8 14651.2
15371.4 19186.2 13095.2 14602.9
15307.1 18880.8 13126.3 14541.8
15576.2 19356.8 13141.9 14797.4
16214.7 19440.3 13163.6 15404
15963.7 19144.2 13191 15165.5
15470 18593.5 13212.2 14696.5
15033.2 18287.4 13224.2 14281.5
15379.5 18490.4 13251.4 14610.6
15647.5 18649.7 13275.3 14865.1
15371.1 18473.3 13296.1 14602.5
15221.4 17988.8 13316.9 14460.3
15317.2 17689.2 13337.7 14551.3
15402 17492.3 13358.8 14631.9
15326.8 17117.8 13379.9 14560.5
15411.7 16778 13401 14641.1
15383.8 16798.3 13416.1 14614.6
15474.7 16389.4 13431.2 14701
15412.9 16711.2 13464.8 14642.2
15472.3 16661.9 13486.4 14698.6
15102.7 16464.1 13508 14347.5
15114.8 16712.9 13529.6 14359
15563.2 17180.2 13551.7 14785
15929.1 17782.4 13573.7 15132.7
16218.7 17978.5 13595.8 15407.8
16326.6 18169.1 13617.8 15510.2
16462.3 18167.6 13630.1 15639.2
16544.7 17976.4 13660.9 15717.5
16509.6 17866.6 13682.4 15684.1
16838 17906.3 13697.8 15996.1
17189.4 18259 13713.2 16329.9
17299.7 18292.9 13740.9 16434.7
17359 18664.5 13765.6 16491.1
17326.3 18170.4 13790.2 16460
17265.7 18131.7 13808.7 16402.4
15896.4 16949.5 13832.6 15101.6
16058.8 17224.3 13847.5 15255.8
15148.7 16092.9 13871.4 14391.3
15027.5 16389.9 13889.2 14276.2
15273.5 16192.7 13916 14509.8
15302.6 16434.6 13934.2 14537.5
15093 15803.8 13946.3 14338.3
14923.3 14944.7 13973.6 14177.2
14670 15519.6 13991.7 13936.6
14993.6 15742.4 14022.8 14243.9
14958.5 16003.4 14044.8 14210.5
15062.7 16538.8 14066.7 14309.5
14756.1 16119.3 14088.7 14018.3
14624 15972.6 14097.8 13892.8
14567 16190.9 14130.9 13838.7
14430.1 16107.7 14143 13708.6
14358.6 16058.1 14173.2 13640.7
14008.4 16034.9 14194.3 13308
14476.2 16636.2 14217.8 13752.3
14370.7 16597.4 14241.2 13652.2
13743 16098.4 14258 13055.9
13978.9 16190.7 14281.5 13279.9
13639.5 15697.7 14308.7 12957.5
13424.6 15419.8 14329.3 12753.4
14004.9 16197.8 14349.8 13304.6
14333.4 16635.9 14370.4 13616.7
14850.7 17499.9 14389.2 14108.1
15493.9 18179.2 14407.9 14719.2
15209.2 18235.4 14421.4 14448.8
15210.6 18132.9 14442.8 14450.1
15228.4 18388 14456.4 14467
14890.4 18220.8 14483.6 14145.8
14556.4 17791.3 14502.6 13828.6
14880.8 17797.5 14516.2 14136.8
15311.9 18331.3 14532.6 14546.3
15142.2 18144.9 14558.2 14385.1
15472 18708.4 14575.6 14698.4
14890.4 18024.2 14583 14145.8
14828.8 18251.1 14608 14087.3
14956.1 18076.2 14626.9 14208.3
14579.7 17888.6 14643.4 13850.7
14743.9 17929.7 14659.8 14006.7
14930.1 18184.4 14676.3 14183.6
14952 18099.8 14683.3 14204.4
14697.4 17638.8 14709.1 13962.5
14661.8 17415 14725.5 13928.7
14481.2 17352.3 14737.2 13757.1
14504.4 17191.7 14751.2 13779.2
14582.4 17311.2 14775.1 13853.3
14696 17583.3 14791.9 13961.2
14672.8 17765.1 14808.7 13939.1
14798.7 18046.1 14820.7 14058.7
14841.1 18127.2 14842 14099
14756.2 17976.4 14858.5 14018.4
14529.1 17617.8 14875 13802.6
14672.8 17775.9 14891.6 13939.1
14627.6 18000.2 14908.1 13896.2
14609.8 17975.8 14914.9 13879.3
14607.1 18187.4 14935.4 13876.7
14637.2 18288.8 14951.3 13905.3
14809.6 18647.2 14967.2 14069.1
14471.6 18296.6 14987 13748
14693.3 18566.9 15002.2 13958.6
14482.5 18506.5 15008.8 13758.4
14711.4 18690.4 15032.7 13975.8
14932.8 18790.7 15038.9 14186.2
14883.5 18886.2 15061.6 14139.4
14605.7 18229.5 15076 13875.4
14322.4 18046.7 15090.4 13606.3
14410 18057.8 15104.8 13689.5
14660.4 17757.9 15111.1 13927.4
14892.2 18134.4 15134.2 14147.5
15363.2 18317.9 15144.6 14595.1
15565.1 19264.8 15159.3 14786.8
15748.2 19263.2 15175.7 14960.8
15153.2 18799.1 15187.8 14395.5
15420.8 19065.3 15200 14649.7
15306.9 18787.2 15205.2 14541.6
15383.8 19030.1 15224.4 14614.6
15217.2 18811.8 15236.2 14456.3
14719.7 18274.9 15248.1 13983.7
14754.6 18510.3 15260 14016.8
14684.8 18342.5 15268.4 13950.6
14562.4 17881.6 15277 13834.3
14530.1 17771.6 15296 13803.6
14499.9 17816.3 15304.6 13774.9
14518.6 17425.8 15316.7 13792.7
14645.1 16931.7 15332.2 13912.8
14617.8 17906 15344.4 13886.9
14611.5 17601.1 15356.5 13880.9
14543 17874.7 15368.6 13815.9
14856 18223.7 15376.6 14113.2
15001.5 18557.4 15391.1 14251.5
15163.9 18605.1 15395.9 14405.7
15056.1 18290.2 15408.7 14303.3
15215.6 18565.1 15418.4 14454.8
15293.2 18290.8 15436.3 14528.6
15432.6 17951.8 15447.7 14661
15569.2 17818.7 15455.9 14790.7
15938.6 18251.9 15467.4 15141.6
16197.2 18257.1 15482 15387.4
16284.9 18513.7 15493.3 15470.7
16111 17713.3 15504.6 15305.5
16194.4 17881.7 15509.4 15384.6
16261.9 18074.7 15524 15448.8
16545.1 17499 15536.9 15717.8
16530.7 17580.3 15546.6 15704.1
17015 18038.4 15556.2 16164.3
17290.9 18557 15561.8 16426.4
17237.8 18753.1 15575.8 16375.9
16016.2 18241.6 15585.7 15215.4
15310.5 18406.8 15592.8 14545
16491.9 18387.8 15602.6 15667.3
16297.8 17866.1 15609.4 15483
16030.5 18030.4 15618.6 15229
15635.3 17981.5 15633 14853.5
15409.7 17973.9 15636.9 14639.2
15309 17958.9 15651.3 14543.6
15241.5 17761.6 15659.3 14479.4
14981.4 17805 15670.1 14232.3
15013 18029.2 15676.8 14262.3
14724.1 18190 15683.5 13987.9
14890.8 18355.2 15701.2 14146.3
15113.6 18315.4 15713.7 14357.9
14816.1 18606.9 15724.3 14075.3
14926.8 18387.8 15734.9 14180.4
14866.9 18307.4 15742.6 14123.5
14779.8 18051.1 15757.7 14040.8
15215.3 18205.4 15764.6 14454.5
15324.2 18332.3 15777 14557.9
15075.9 18560.9 15786.6 14322.1
15226.9 18667.2 15795.8 14465.5
15480.9 18544.7 15805.1 14706.9
15865.6 18744.5 15814.4 15072.3
16253.2 19127.6 15821 15440.6
16489.9 19460.7 15833 15665.4
15894.9 19332.6 15839.6 15100.1
16134.2 19506.5 15848.9 15327.5
16504.4 19969.5 15858.2 15679.2
16324.4 20297 15870.2 15508.2
16967.5 20732.4 15879.5 16119.1
16822.3 20513.4 15888.8 15981.2
16802 20653.8 15892.8 15961.9
17198.3 21051 15906.1 16338.4
17170.7 20782.2 15916.6 16312.2
16990.7 20850 15924.4 16141.2
17349.3 21303.3 15930.9 16481.8
17485.7 21415.8 15944 16611.4
17135.9 21289.1 15948.1 16279.1
17141.7 21091.8 15963.1 16284.6
16796.2 20657.2 15970 15956.4
17124.9 21207.8 15979.5 16268.7
17092.9 20965.1 15990.3 16238.2
16948.6 21234.6 16001 16101.2
16816.5 21182.2 16010.4 15975.7
17117.1 21373.4 16019.8 16261.2
17799.3 21882.3 16029.2 16909.3
18317.6 22024.8 16038.6 17401.7
19118.9 22493.3 16042.6 18162.9
18783.6 22215.6 16057.4 17844.4
19507.9 22586.2 16066.8 18532.6
19836 22397.8 16076.3 18844.2
19786.7 22494.7 16085.7 18797.3
19714.6 22006.4 16093.8 18728.9
20543 22209 16101.9 19515.9
21052.6 22601.3 16114 19999.9
21647.8 22642.7 16123.5 20565.4
21907.6 22710.6 16133 20812.2
21634.1 22577.9 16142.4 20552.4
21994.7 22746.6 16146.5 20895
21929.4 22257.5 16155.9 20832.9
22347.5 22402.3 16170.8 21230.1
22036.8 21899.5 16180.3 20935
22321.3 21953 16184.4 21205.3
23183.7 22167.9 16200.5 22024.5
23359.3 22198.9 16211.2 22191.3
24523.6 22509.7 16221.8 23297.4
25593.5 22669.2 16229.5 24313.8
25788.1 22770.7 16238.6 24498.7
25092 22900.8 16252.9 23837.4
25657.4 23267.8 16262.6 24374.5
25209.5 23257.4 16268.2 23949
25417 24222.9 16278 24146.2
24374.6 23611 16291.5 23155.8
23877.4 23689.4 16296.8 22683.5
23580 23590.9 16304.9 22401
22875.5 23461.4 16319.6 21731.7
22941.6 23459.1 16330.6 21794.5
22723.8 23753.7 16341.5 21587.6
22340.7 23401.8 16350.9 21223.7
22614.1 22803.7 16360.3 21483.4
22163.5 22886.7 16374.6 21055.3
21753.4 23134.8 16385.8 20665.7
21565.7 22930.4 16390.6 20487.4
21639.2 23358.5 16401.7 20557.3
21564.2 23239 16419.3 20485.9
21262.2 23088.6 16431.5 20199.1
21511.6 23558.5 16443.7 20436
21794 23493.8 16455.9 20704.3
21923.2 23573.7 16468.1 20827
21445.5 23644.8 16481.3 20373.2
21748.9 23735.3 16490.8 20661.5
22330.2 23363.9 16505.9 21213.7
22531.5 23555.4 16517.2 21404.9
22780.3 23588.9 16529.1 21641.3
22966.7 23799.9 16541.1 21818.3
22452.3 23982 16563.2 21329.7
22175.3 23804.2 16577.3 21066.6
22002.2 24258.4 16583.3 20902.1
21779.7 24181.8 16599.3 20690.7
21918.1 24344.8 16611.2 20822.2
22254.4 24517.4 16633.1 21141.7
21990.7 24667.6 16639.1 20891.1
22384.7 24431.2 16662.2 21265.5
22608.9 24304.7 16677.3 21478.5
22544.6 24156.2 16692.5 21417.4
22668.2 24106.8 16703.3 21534.8
22689.7 23689.4 16718.5 21555.2
22498.4 24212 16738.7 21373.5
23026 24485.5 16754.5 21874.7
23118.3 24208.9 16761.3 21962.4
22854.5 24528.8 16786.2 21711.8
22758.9 24175.4 16802.1 21621
22310.5 24087.9 16811.1 21195
22538 23371.3 16829.3 21411.1
22302.3 23644.1 16847.5 21187.2
22111 23411.1 16868.9 21005.5
22061.6 23250.1 16888.1 20958.5
21791.3 23634 16907.3 20701.8
21674 23747.1 16921 20590.3
21593.7 23725.4 16937.5 20514
21964.3 23683.2 16964.8 20866.1
22116.6 23765.6 16973 21010.8
22588.1 23212.9 17003 21458.7
22594.2 23545 17022.1 21464.5
22548.9 23732.5 17041.4 21421.5
22742.5 23846.9 17060.8 21605.3
23500.1 23928.2 17080.2 22325.1
24125.9 23771.9 17096.8 22919.6
25678.2 24153.5 17119.3 24394.3
26320.5 24330.3 17138.9 25004.5
26133.1 24232.3 17158.6 24826.5
26532.5 24822.8 17172.7 25205.9
26742.5 25008.8 17198 25405.4
26116.7 25334.6 17206.4 24810.8
27150.1 25660.5 17237.6 25792.6
26769.3 25743.8 17257.3 25430.8
26946.3 26296.6 17277.1 25599
27004 26314.9 17296.8 25653.8
26172.2 25967.6 17316.5 24863.6
26635.5 25835.4 17336.1 25303.7
27693.6 26130.1 17347.4 26308.9
27893.3 26314.5 17375.6 26498.7
27598.9 25982.3 17395.3 26219
27901.6 26334.3 17403.8 26506.5
27199.5 26103.1 17429.2 25839.6
27666.9 26421.1 17449 26283.5
27607.2 27240 17469 26226.8
27384.8 26892.5 17494.8 26015.6
27594.8 27256.2 17514.9 26215.1
27448.7 27195.7 17535 26076.2
27559.8 27140.2 17543.2 26181.8
26497.5 26904.9 17562.3 25172.7
26549 26786.9 17592.3 25221.6
26734.4 26671.8 17611.5 25397.7
27030.9 26917.5 17630.9 25679.4
27247.2 27217.6 17650.3 25884.8
27823.8 27324.7 17658.6 26432.7
27572.6 27358.3 17683.6 26194
27683.8 27475.4 17697.5 26299.6
27650.8 27123.5 17727.9 26268.3
28058.6 27421.1 17741.7 26655.7
28400.5 27265.9 17766.5 26980.5
28274.9 27136.1 17785.8 26861.1
28526.1 27479.4 17805 27099.8
28870.1 27529.7 17824.2 27426.6
29051.3 27908.8 17843.4 27598.7
29074 28079 17862.6 27620.3
29716.5 28652.4 17879.3 28230.7
29312.9 28665.6 17896 27847.2
29121.3 28394.6 17921 27665.3
29588.7 28918.4 17935 28109.2
29830.6 29202.7 17951.7 28339.1
29478.7 28756.5 17978.9 28004.7
29566.7 28792.9 17997.9 28088.3
29720.7 28859.1 18016.8 28234.6
29324.7 29496.5 18035.8 27858.4
29060.7 29891.9 18051.3 27607.7
28928.7 29965.8 18072.1 27482.2
28752.7 29750.9 18082.5 27315.1
28686.7 29722.7 18108.4 27252.4
28620.7 29899.6 18126.2 27189.7
27828.7 29325.4 18144 26437.3
28268.7 29880.3 18151.6 26855.3
28290.7 30069.6 18174.5 26876.2
28708.7 30431.1 18189.8 27273.3
27960.7 29972.3 18215.5 26562.7
27960.7 30172.2 18233.6 26562.7
28158.7 30678.9 18251.7 26750.8
27960.7 30785.8 18262.1 26562.7
27520.8 30404.9 18288 26144.7
27894.7 30799.4 18306.2 26500
27564.8 30989.2 18319.2 26186.5
27762.7 30686 18342.5 26374.6
28114.7 31008.9 18360.7 26709
27872.7 30828.3 18379 26479.1
27850.7 30868.9 18397.2 26458.2
28114.7 30919.3 18410.3 26709
28422.7 31023.9 18425.9 27001.6
28070.7 30519.4 18452.3 26667.2
28312.7 29809.9 18470.9 26897.1
28180.7 29379 18489.5 26771.7
28884.7 29997.2 18508 27440.4
29742.7 30515.9 18526.7 28255.5
29709.4 30580.2 18545.3 28224
29930 30796.8 18558.6 28433.5
29731.5 30776.3 18582.6 28244.9
29158 30349.2 18601.2 27700.1
29488.9 30559.8 18619.8 28014.4
29974.1 31228.4 18619.8 28475.4
30238.8 31357.2 18665 28726.8
30856.3 31736.4 18670.3 29313.5
31121 31615 18694.5 29565
30724 31950.2 18713.3 29187.8
30856.3 31896 18732.1 29313.5
30790.2 31667.9 18750.9 29250.7
32201.8 32408.1 18761.3 30591.7
32267.9 32734.8 18782.1 30654.5
33106.1 33288.1 18800.3 31450.8
33635.4 33501.2 18823.7 31953.6
33458.9 33039.5 18841.9 31786
32863.4 32797.1 18861.1 31220.3
32400.3 32463.1 18869.3 30780.2
33273.8 32845.1 18894 31610.1
33507.2 33021.6 18913.2 31831.9
33437.2 32954.1 18938.1 31765.3
34394.6 33274 18957.5 32674.8
35235.1 33486.6 18968.5 33473.4
34674.8 32878.5 18985.2 32941
35795.6 33246.5 19015.6 34005.8
36752.9 33830.6 19035.1 34915.3
37523.4 34049.8 19054.6 35647.3
37266.6 34183 19068.5 35403.3
37266.6 33980.7 19085.2 35403.3
37243.2 34080.5 19113 35381.1
35678.8 33547.7 19132.5 33894.9
35678.8 33733 19146.4 33894.9
34091 32746.3 19165.8 32386.4
35305.2 32708.2 19191.8 33539.9
35095.1 32831.1 19212.3 33340.3
35655.4 33497.4 19232.8 33872.7
36752.9 34241.8 19244.4 34915.3
37710.2 35214.2 19273.7 35824.7
38667.6 36279.7 19294.3 36734.2
38364.1 36538.8 19306 36445.9
38504.1 36641.8 19335.3 36578.9
38457.4 36431.7 19355.9 36534.6
39181.3 37515 19376.6 37222.2
39905.1 37955.4 19397.2 37909.9
40745.8 38388.2 19411.9 38708.5
41072.6 38644.6 19432.6 39019
41866.6 38946.2 19459.1 39773.2
43968.1 39757.4 19470.9 41769.6
44154.9 39653.3 19500.3 41947.1
45252.3 39810.6 19521 42989.7
45766 39660.7 19538.6 43477.7
44201.6 38765.1 19562.2 41991.5
44803.7 38927.5 19582.7 42563.6
43260.4 37931.4 19603.3 41097.4
43774.9 38163.5 19623.9 41586.1
43120.1 38055.4 19644.7 40964.1
43681.3 38512.5 19665.6 41497.2
44523.1 39098.5 19680.4 42297
45365 39518.5 19701.2 43096.7
46113.2 40009.8 19716.2 43807.6
45528.6 39493.9 19749.2 43252.2
45061 39300.4 19770.3 42807.9
42816.1 37432.2 19779.3 40675.3
43517.6 37989.9 19812.3 41341.7
41389.7 36357.7 19833.4 39320.2
42769.3 37444 19848.5 40630.9
43400.7 37600.2 19869.7 41230.7
45131.1 38623.3 19896.8 42874.6
45552 38493.4 19906.4 43274.4
44902.3 38474.8 19941.4 42657.2
43403.9 37169 19957.4 41233.7
45216.5 38380.1 19979.7 42955.6
45579 38117.2 20009 43300
44708.9 37594.1 20032 42473.5
45119.8 38667.6 20055 42863.8
44829.8 39421.2 20064.9 42588.3
46690.6 40557.2 20087.9 44356.1
46980.6 41122.8 20122.1 44631.6
47633.2 41294.2 20143.2 45251.5
48261.5 41584.6 20164.3 45848.4
47971.5 42051.7 20185.4 45572.9
48527.3 42605.6 20206.9 46101
49735.7 43216.4 20222.3 47248.9
50170.7 44102 20243.8 47662.2
51040.7 44121.9 20265.3 48488.7
51185.7 44273.6 20293.1 48626.4
52249.1 45144 20314.8 49636.6
52249.1 45018.3 20336.4 49636.6
50436.5 43585.2 20354.9 47914.7
50895.7 44464.2 20379.8 48350.9
51016.5 44559.9 20401.7 48465.7
51209.9 44596.6 20414.2 48649.4
50460.7 43858.5 20439.1 47937.7
50315.7 43709.4 20457.8 47799.9
51572.4 44187.2 20476.5 48993.8
51451.5 43737.7 20510.5 48879
52780.7 44229.1 20526 50141.7
54085.8 45414.2 20547.7 51381.5
55366.6 46063 20569.6 52598.3
56405.8 46502.6 20591.6 53585.5
55777.4 46132 20613.5 52988.6
54279.1 44751.2 20635.4 51565.1
52200.7 43295.7 20657.3 49590.7
51884.7 42529.8 20679.2 49290.4
52030.8 43251.3 20701.1 49429.3
50666.7 42035.7 20723 48133.4
47207.7 39848.8 20744.9 44847.4
46866.7 40553.5 20766.8 44523.4
47792.4 41216.3 20788.6 45402.7
47768 40898.7 20810.5 45379.6
46769.3 39511.1 20832.4 44430.8
44747.5 38536.3 20853.5 42510.1
43480.8 39882.8 20874.5 41306.8
42384.7 42174.4 20895.5 40265.4
42068 42011.6 20916.4 39964.6
42847.5 44379.6 20937.4 40705.1
43164.1 43717.9 20958.2 41005.9
43700.1 44498.1 20979 41515
44430.8 46094.4 20999.8 42209.3
44382.1 45343.1 21020.8 42163
45064.1 46078.8 21043 42810.9
44625.7 45420.7 21065.2 42394.4
46087.2 47533.7 21087.3 43782.9
46209 47763.1 21109.5 43898.6
47402.6 49791.6 21130.1 45032.5
45794.9 47680.2 21150.1 43505.2
46111.6 48882.9 21170.2 43806
45916.7 48083.5 21190.2 43620.9
46379.5 48745.8 21210.1 44060.6
45015.4 46894.5 21229.8 42764.7
45039.8 47149.3 21249.4 42787.8
45624.4 48033.3 21269.1 43343.2
44235.9 46910.3 21288.8 42024.1
45210.3 49091.8 21308.6 42949.8
45380.8 49899.4 21328.3 43111.8
44674.4 48710.6 21348.1 42440.7
45039.8 49647.8 21367.8 42787.8
45478.2 50992 21387.7 43204.3
45892.4 51529.8 21407.5 43597.7
45356.5 51080.5 21427.3 43088.6
45502.6 52046.9 21447.2 43227.5
45332.1 51775.1 21466.9 43065.5
45259 51903.5 21486.6 42996.1
44918 50962 21506.2 42672.1
43261.6 49882 21525.9 41098.5
43675.7 49812.4 21545.6 41491.9
44235.9 51035 21565.5 42024.1
44211.6 51299.5 21585.4 42001
44577 51380.2 21605.2 42348.1
45648.8 52059.5 21625.1 43366.3
45624.4 53184 21646.4 43343.2
45307.7 53172.9 21667.9 43042.4
44552.6 52843.6 21689.4 42325
43383.4 52274.7 21711 41214.2
41775.7 51326.8 21732.5 39686.9
41142.4 50409.1 21754 39085.2
42823.1 51940.8 21775.5 40682
45259 53428.1 21797 42996.1
44333.4 52388.6 21818.5 42116.7
44966.7 52786.9 21840.7 42718.4
43870.6 52328.4 21862.9 41677
43651.3 51790.5 21885.1 41468.8
42092.4 50712.4 21907.4 39987.7
43846.2 52512.6 21929.7 41653.9
43188.5 51616 21952.2 41029.1
43675.7 51547 21974.6 41491.9
43407.7 51823 21997.1 41237.4
45453.9 53838.6 22019.5 43181.2
45794.9 54653.7 22041.9 43505.2
46574.4 55789.8 22064.3 44245.7
47012.9 56082.6 22086.8 44662.2
46379.5 55897.8 22109.2 44060.6
48450.1 56912.3 22136.5 46027.6
48060.3 56857.5 22163.8 45657.3
50837.2 58288.6 22191.1 48295.4
52639.8 59623.2 22218.4 50007.8
49107.7 57441.4 22243.9 46652.4
49984.7 58220.6 22268.2 47485.4
50959 58567 22292.5 48411.1
49814.2 57269.4 22316.7 47323.4
50374.4 57367.3 22341.1 47855.7
52615.4 58425.8 22366.1 49984.7
51251.3 57116.5 22391.1 48688.8
52591.1 56761 22416.2 49961.5
54686 57543.2 22441.2 51951.7
55562.9 57338 22466.5 52784.7
52371.9 57101.9 22491.8 49753.3
55903.9 60187.1 22517.1 53108.7
54710.3 61129.9 22542.4 51974.8
49424.4 59806.1 22568.4 46953.2
49059 59429.7 22594.9 46606.1
45941.1 57517.9 22621.4 43644
47061.6 58472.5 22647.9 44708.5
46257.7 57198.3 22674.6 43944.9
43943.6 55881.3 22701.8 41746.4
45624.4 57092 22729 43343.2
42798.8 55176.3 22756.1 40658.8
43773.1 56668.5 22783.3 41584.5
45332.1 59121.7 22811.7 43065.5
45039.8 59043.4 22840.2 42787.8
45794.9 59065.9 22868.7 43505.2
44918 58452.1 22897.3 42672.1
45307.7 58584.5 22905.4 43042.4
NOTE:The graph compares the performance results of a hypothetical $10,000
investment in Class A and a comparable index. The performance of Class A is
shown after adjustment to reflect the maximum sales load, which is waived for
certain investors. The performance of the index does not reflect brokerage
commissions and other expenses that would be incurred to acquire a comparable
portfolio of securities.
--------------------------------------------------------------------------------
Sources used are the net asset value of the Fund which is computed daily, The
Financial Times and Morgan Stanley Capital International.
The MSCI World Index is a market value weighted, unmanaged index of the weighted
share prices of companies listed on all the stock exchanges of Australia,
Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland,
Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain,
Sweden, Switzerland, United Kingdom and The United States. The combined market
capitalization of these companies represents approximately 60% of the aggregate
market value of the stock exchanges of the above 22 countries. The percentage
change in the value of the index includes dividends reinvested.
AVERAGE ANNUAL TOTAL RETURN - CLASS A
[Table below represents bar chart in its printed piece]
GAM
GLOBAL
CLASS A
(AFTER
MAXIMUM
GAM SALES MSCI
GLOBAL LOAD WORLD
CLASS A OF 5%) INDEX
------- ----- -----
1 Year (0.75) (5.71) 12.53
5 Years 10.61 9.48 17.53
10 Years 10.31 9.75 12.52
Since Inception 11.3 10.9 13.37
ANNUAL PERFORMANCE - CLASS A
[Table below represents bar chart in its printed piece]
GAM
GLOBAL
CLASS A
(AFTER
MAXIMUM
GAM SALES MSCI
GLOBAL LOAD WORLD
CLASS A OF 5%) INDEX
------- ----- -----
1996 12.74 7.11 14
1997 34.95 28.2 16.23
1998 2.57 (2.56) 24.8
1999 14.23 8.52 25.34
2000 (14.48) (18.76) (2.41)
GAM GLOBAL
GAM CLASS A MSCI
GLOBAL (AFTER MAXIMUM WORLD
CLASS A SALES LOAD OF 5%) INDEX
YEAR % % %
--------------------------------------------------------------------------------
1996 12.74 7.11 14.00
1997 34.95 28.20 16.23
1998 2.57 (2.56) 24.80
1999 14.23 8.52 25.34
2000* (14.48) (18.76) (2.41)
* 6 months
4
===
GAM GLOBAL FUND / REPORT TO SHAREHOLDERS
<PAGE>
THE FACTS - CLASS B SHARES
GAM
Global Average
GAM Class B MSCI 1 Month
Global (with deferred World Deposit
Class B sales charge) Index Rate
30th June, 2000 US$18.47 1,377.72
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (14.85) (19.10) (3.47) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (14.73) (18.99) (2.41) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 (1.39) (6.32) 12.53 5.92
--------------------------------------------------------------------------------
Since inception* (5.92) (7.27) 14.19 5.59
--------------------------------------------------------------------------------
THE FACTS - CLASS C SHARES
GAM
Global Average
GAM Class C MSCI 1 Month
Global (with deferred World Deposit
Class C sales charge) Index Rate
30th June, 2000 US$18.44 1,377.72
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (14.91) (15.76) (3.47) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (14.75) (15.60) (2.41) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 (1.44) (2.43) 12.53 5.92
--------------------------------------------------------------------------------
Since inception* (6.08) (6.08) 14.29 5.59
--------------------------------------------------------------------------------
THE FACTS - CLASS D SHARES
GAM
Global
Class D (after Average
GAM maximum MSCI 1 Month
Global sales load World Deposit
Class D of 3.5%) Index Rate
30th June, 2000 US$18.30 US$18.96 1,377.72
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (14.76) (17.75) (3.47) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (14.53) (17.52) (2.41) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 (0.97) (4.44) 12.53 5.92
--------------------------------------------------------------------------------
2 years to June, 2000 (8.12) (9.74) 14.29 5.59
--------------------------------------------------------------------------------
3 years to June, 2000 3.66 2.43 15.34 5.64
--------------------------------------------------------------------------------
Since inception* 10.43 9.60 17.30 5.59
--------------------------------------------------------------------------------
* Inception was on 26th May, 1998 for Class B shares, 19th May, 1998 for Class C
shares and 6th October, 1995 for Class D shares.
THE COMMENT
Investments made throughout the last six months have been based on three
underlying assumptions/principles. Firstly, inflation throughout the major
countries is likely to remain low (around 2%). Although there were periodic
fears of a return to high inflation, recent numbers show that intense global
competition and the impact of technology are keeping inflation at modest levels
(2% in Europe, minus 1% in Japan, and 3% in the US due to the rise in the oil
price). That should keep interest rates low and enhance the attraction of
equities to investors. Secondly, the need to invest in growing industries. We
have continued to avoid industries with poor long-term prospects such as
automobiles, building materials, machinery, metals, real estate, textile and
transportation. Finally, a stock selection focused on industry leaders, at a
reasonable valuation compared to profit growth and interest rates.
Most investors cannot recall a time when markets have been so volatile and
polarized in favour of just two or three sectors - technology, media, and
telecoms - and against those same sectors just a few months later.
The Fund has had to adjust to these changing environments. In the summer of
1999 we had sold utilities, slow-growing consumer goods and banks, and invested
in leading mobile phone companies (Nokia and Vodafone), software companies
(Oracle and Siebel) and IT companies. In the second half of 1999 and the first
quarter of 2000, the Fund benefited strongly from these changes and its exposure
to the technology and telecom industries.
As it entered the last quarter, ending June 2000, with a high telecom and
technology exposure, the Fund has given back the gains it had achieved over the
prior two quarters. At the end of May we sold most software/IT stocks due to a
slowdown reported by some competitors, and mobile phone operators due to
concerns over a slowdown in revenues until the third generation is introduced in
three years, and concerns over high government-auctioned mobile license prices.
Nokia (now trading at over 100 times earnings) has been sold, and Microsoft
reduced to 1%, due to the general slowdown in the industry and Microsoft's
weakening position. Sales proceeds have been reinvested across existing
holdings. A consequence of these changes is a lower average PER for the Fund -
in the 30 times range. With this, we are very comfortable with the Fund going
forward.
The seven to eight industries in which the Fund is exposed have strong volume
growth and a good pricing environment. The 40 stocks in the Fund are the leaders
within these industries, with excellent growth prospects and attractively cheap
valuations. These industries are life insurance/financial services (Fortis,
State Street), pharmaceuticals (Roche, Takeda), semiconductors (Philips, Linear
Technology), media/advertising (Omnicom), cosmetics/consumer goods (L'Oreal,
Colgate), retailing, and outsourcing. We have also built a position in the oil
industry, which is currently 8% of the Fund, on account of a sharply rising oil
price and mergers which should result in cost savings (such as Exxon Mobil, BP
Amoco Arco).
5
===
GAM GLOBAL FUND / REPORT TO SHAREHOLDERS
<PAGE>
STATEMENT OF INVESTMENTS AS AT 30TH JUNE, 2000 (UNAUDITED)
MARKET
VALUE
HOLDINGS DESCRIPTION US$
--------------------------------------------------------------------------------
EQUITIES - 100.9%
FRANCE - 7.5%
3,689 L'Oreal 3,187,326
11,902 Sanofi-Synthelabo 565,759
5,485 Total Fina B 839,137
----------
4,592,222
----------
JAPAN - 8.3%
12,200 ORIX 1,798,766
2,200 Rohm 642,517
1,600 Ryohin Keikaku 203,495
38,000 Takeda Chemical 2,491,686
----------
5,136,464
----------
NETHERLANDS - 10.0%
101,532 Fortis AMEV 2,948,974
49,690 Philips 2,338,334
13,518 Royal Dutch Petroleum 838,309
----------
6,125,617
----------
SWITZERLAND - 4.3%
273 Roche Holding Genussscheine 2,654,283
----------
2,654,283
----------
UNITED KINGDOM - 5.5%
111,410 BP Amoco 1,068,338
159,261 WPP Group 2,324,514
----------
3,392,852
----------
UNITED STATES - 65.3%
11,415 American International Group 1,341,262
*4,529 Amgen 318,162
38,157 Automatic Data Processing 2,043,784
7,833 Chevron 664,336
*7,974 Clear Channel Communications 598,050
40,960 Colgate-Palmolive 2,452,480
30,450 Computer Associates International 1,558,659
18,684 Exxon Mobil 1,466,694
*35,911 Fiserv 1,553,151
57,162 Freddie Mac 2,315,061
23,424 General Electric 1,241,472
23,838 Home Depot 1,190,410
29,585 IMS Health 532,530
10,684 Intel 1,428,317
42,505 Linear Technology 2,717,663
28,887 Medtronic 1,438,934
*25,814 Microchip Technology 1,504,068
*8,103 Microsoft 648,240
28,252 Omnicom Group 2,516,194
44,281 Paychex 1,859,802
48,226 Pfizer 2,314,848
*28,937 Starbucks 1,105,032
24,141 State Street 2,560,455
12,647 Texaco 673,453
*16,583 Univision Communications 1,716,341
19,518 Walgreen 628,236
30,083 Wal-Mart Stores 1,733,533
----------
40,121,167
----------
TOTAL EQUITIES (COST $58,386,262) 62,022,605
----------
TOTAL INVESTMENTS (COST $58,386,262**) - 100.9% 62,022,605
NET CURRENT LIABILITIES - (0.9)% (544,321)
----------
TOTAL NET ASSETS - 100.0% 61,478,284
==========
* Non-income producing security.
** Cost for federal income tax purposes is identical.
See notes to financial statements.
6
===
GAM GLOBAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
GEOGRAPHIC ANALYSIS AS AT
30TH JUNE, 2000
[Table below represents pie chart in its printed piece]
NET CURRENT LIABILITIES (0.9)%
SWITZERLAND 4.3%
FRANCE 7.5%
JAPAN 8.3%
NETHERLANDS 10.0%
UNITED KINGDOM 5.5%
UNITED STATES 65.3%
INVESTMENT ANALYSIS AS AT
30TH JUNE, 2000
[Table below represents pie chart in its printed piece]
NET CURRENT LIABILITIES (0.9)%
HEALTH & PERSONAL CARE 22.0%
OTHER 9.9%
BANKING 4.2%
BUSINESS & PUBLIC SERVICES 6.1%
DATA PROCESSING
& REPRODUCTION 6.3%
FINANCIAL SERVICES 6.7%
INSURANCE 7.0%
MERCHANDISING 7.9%
ENERGY SOURCES 9.0%
ELECTRONIC COMP.
& INSTRUMENTS 10.2%
BROADCASTING
& PUBLISHING 11.6%
7
===
GAM GLOBAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
GAM INTERNATIONAL FUND
FUND MANAGEMENT
--------------------------------------------------------------------------------
JEAN-PHILIPPE CREMERS JOINED GAM IN APRIL, 1992. HE IS THE INVESTMENT DIRECTOR
RESPONSIBLE FOR GAM'S INTERNATIONAL/ GLOBAL INVESTMENTS. PRIOR TO THIS HE
ANALYZED THE JAPANESE AND US STOCK MARKETS AT THE TOKYO INVESTMENT INFORMATION
CENTRE IN HONG KONG. MR. CREMERS IS A GRADUATE IN APPLIED MATHEMATICS FROM
UNIVERSITE CATHOLIQUE DE LOUVAIN, BELGIUM AND HAS AN MBA FROM CORNELL
UNIVERSITY, NEW YORK.
The Fund's investment objective is to seek long-term capital appreciation,
generally through investment in equity securities issued by companies in
countries other than the United States, including Canada, the United Kingdom,
Continental Europe and the Pacific Basin. However, if the Fund determines that
the long-term capital appreciation of debt securities may equal or exceed the
return on equity securities, it may be substantially invested in debt securities
of companies and governments, their agencies and instrumentalities. Any income
realized by the Fund on its investments will be incidental to its goal of
long-term capital appreciation.
Investments in securities of foreign issuers involve additional risks and
expenses including currency rate fluctuations, political and economic
instability, foreign taxes and different accounting and reporting standards.
REPORT TO SHAREHOLDERS
-------------------------------------------------------------------------------
THE FACTS - CLASS A SHARES
GAM
Class A (after Average
GAM maximum MSCI 1 Month
International sales load EAFE Deposit
Class A of 5%) Index Rate
30th June, 2000 US$26.25 US$27.63 1,678.61
--------------------------------------------------------------------------------
% % % %
Quarter to June, 2000 (17.43) (21.56) (3.90) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (18.38) (22.46) (3.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 (0.53) (5.50) 17.44 5.92
--------------------------------------------------------------------------------
5 years to June, 2000 7.38 6.28 11.63 5.61
--------------------------------------------------------------------------------
10 years to June, 2000 11.24 10.67 8.28 5.27
--------------------------------------------------------------------------------
Since inception 17.36 16.97 15.58 6.26
--------------------------------------------------------------------------------
Performance is calculated on a total return basis. Class A inception was on
2nd January, 1985, Class B on 26th May, 1998, Class C on 19th May, 1998 and
Class D on 18th September, 1995. Past performance is not necessarily indicative
of future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
8
===
GAM GLOBAL FUND / FUND MANAGEMENT
<PAGE>
[Figures below represent line chart in printed piece]
GAM
INTERNATIONAL
CLASS A
(AFTER
AVERAGE MAXIMUM
GAM MSCI 1 MONTH SALES
INTERNATIONAL EAFE DEPOSIT LOAD
CLASS A INDEX RATE OF 5%)
------------- ------- ------- -------
"1985" 10000 10000 10000 10000
10013 10125.3 10020.9 9512.35
9954 10153.2 10037 9456.3
9960 10186.8 10053 9462
10036 10256.3 10069.1 9534.2
10018 10046.4 10085.3 9517.1
9913 9875.99 10101.5 9417.35
10217 10085 10117.7 9706.15
10128 10258.2 10133.8 9621.6
10043 10226 10151 9540.85
10138 10334.6 10168.1 9631.1
10328 10733.8 10185.2 9811.6
10438 11013.9 10197.4 9916.1
10299 10932.7 10212.1 9784.05
10329 10849.9 10236.4 9812.55
10576 11044.6 10253.3 10047.2
10483 10873.3 10270.2 9958.85
10490 11001 10287.1 9965.5
10347 11010.9 10303.5 9829.65
10745 11358 10319.9 10207.8
10953 11507.3 10336.3 10405.3
10922 11424.7 10352.7 10375.9
10883 11582.4 10369.1 10338.8
11083 11554.4 10384.1 10528.8
11329 11801.1 10399.2 10762.5
11207 11705.5 10409.9 10646.7
11422 11859.4 10422.8 10850.9
11485 12288.6 10444.3 10910.8
11629 12599.7 10459.5 11047.5
11580 12512.7 10472.4 11001
11523 12387.6 10489.7 10946.8
11605 12270.7 10505.7 11024.8
11703 12395.7 10521.7 11117.8
11832 12648.1 10537.6 11240.4
11981 12735.1 10553.6 11382
11814 12461 10569.6 11223.3
11843 12173.8 10585.7 11250.8
11884 12290.5 10601.7 11289.8
12591 13062.7 10613.2 11961.5
12886 13801.7 10629.3 12241.7
12939 13842.7 10650.1 12292
13102 13862.3 10666.3 12446.9
13305 14073.9 10682.5 12639.8
13795 14401 10698.7 13105.2
13881 14664 10714.8 13187
13833 14508.8 10731 13141.3
14187 14643.9 10747.1 13477.7
14806 15048.5 10756.4 14065.7
14719 14918.8 10779.5 13983
14834 14878.9 10796.1 14092.3
15405 15344.2 10812.8 14634.8
15386 15360.1 10824.7 14616.7
"1986" 15926 15795.9 10841.4 15129.7
16344 15987.5 10862.8 15526.8
16381 15806.1 10879.4 15562
16256 15633.2 10896 15443.2
16798 16155.5 10912.7 15958.1
16957 16377.7 10929.3 16109.2
17352 16901 10946 16484.4
17577.5 17566.5 10962.6 16698.6
17998.7 17794 10979.2 17098.8
18208.8 18206.3 10995.9 17298.4
18930.1 18847.2 11012.3 17983.6
19361 19385.3 11028.8 18392.9
19349.2 19596.3 11040.6 18381.8
19649.3 20372.3 11057 18666.8
20171.3 20109.6 11077.4 19162.7
20625.7 20769.9 11093.1 19594.4
21266.7 21806.4 11108.7 20203.3
21577.5 21902.2 11124.4 20498.6
21234.5 21937 11138.9 20172.8
20976.2 21898.3 11153.4 19927.4
20074.8 21115.9 11168 19071.1
20276.3 21401.2 11178.3 19262.5
20262.4 21158.9 11197 19249.3
20531.4 21747.4 11212 19504.8
20602.1 21773.5 11227.1 19572
20618.2 22154.8 11237.8 19587.3
20950.5 22458.5 11252.8 19902.9
20574.3 22411.2 11272 19545.6
20589.3 22593.7 11282.6 19559.8
20199.1 22976 11301.7 19189.2
20374.9 23731.9 11316.6 19356.2
20437.1 23649.8 11330.4 19415.2
21353.5 24927.4 11344.2 20285.8
22338.5 26462.4 11358.1 21221.5
22670.7 25942.1 11372 21537.2
22911.9 26082.5 11385.8 21766.3
22848.6 26223.1 11398.2 21706.2
22238.8 24883.8 11410.6 21126.8
22414.6 25442 11419.5 21293.8
22539.9 25752.1 11431.9 21413
22655.7 25722.3 11448.6 21522.9
22436 25430.9 11461.8 21314.2
<PAGE>
21682.5 24036 11475 20598.4
21775.8 24031.7 11488.1 20687
21795.1 24001.5 11501.3 20705.3
22265.6 24866.4 11514.1 21152.3
21815.4 24316.9 11526.9 20724.7
22387.8 25073.4 11539.7 21268.4
23004 25878 11552.5 21853.8
22963.3 25992.4 11566.4 21815.2
22820.8 26085 11580.2 21679.7
23263.4 26685.1 11590.1 22100.2
23485.3 26913.6 11604 22311
"1987" 23783.2 27487.7 11614.1 22594.1
24466 28211.1 11636.9 23242.7
25440.2 29193.6 11651.3 24168.2
25804.7 30132.9 11665.8 24514.4
25754.3 29906.1 11680.3 24466.6
25814.5 29823.7 11693.9 24523.8
25695.8 29899.3 11707.4 24411
26519.6 30431.3 11721 25193.6
26686.7 31336.8 11734.6 25352.4
26675 31237.2 11748.8 25341.2
27648.3 32104.1 11763 26265.9
27975.2 32663.8 11773.1 26576.5
28715.5 33448.2 11787.3 27279.7
29145 34224.2 11805.9 27687.8
30791.2 36351.2 11820.5 29251.7
30797.1 37163.8 11835.1 29257.2
30177 36207.6 11849.6 28668.2
31329.2 37930.8 11860.5 29762.8
31421.6 38100.2 11880 29850.5
30545 36886.5 11895.2 29017.7
29938.1 36742.9 11910.4 28441.2
30121.3 37322.1 11925.7 28615.2
30685.7 38457.2 11942 29151.4
30785.4 38212.4 11958.3 29246.1
30351.5 36723.4 11969.9 28833.9
29870.6 35556 11986.2 28377.1
29775.4 34569.3 12006.8 28286.6
30372 35485.1 12022.8 28853.4
29410.3 33632 12038.8 27939.8
30197.5 35533.4 12054.7 28687.7
30352.9 35044.9 12061.6 28835.3
30690.1 36094.6 12086.3 29155.6
30955.4 36609.9 12101.9 29407.6
31569.6 37850.9 12117.5 29991.1
31666.4 38340.1 12133.2 30083
30902.6 37412.7 12149.8 29357.5
31200.2 37069.2 12166.4 29640.2
31364.4 37071.1 12178.2 29796.2
31189.9 37657.7 12194.8 29630.5
31506.6 37805.9 12217.7 29931.3
31884.8 38836.3 12235.8 30290.6
28492.7 33952.2 12246.2 27068.1
26239.6 31225.3 12272.1 24927.6
25374.7 31955 12290.2 24106
25181.2 30457.5 12306.7 23922.2
25911.2 32386.8 12323.2 24615.7
25873.1 33162.6 12339.7 24579.5
25453.9 32566.4 12356.2 24181.2
25074.2 32338.8 12375.2 23820.5
26021.2 33556.4 12394.1 24720.1
26241.1 33831.7 12410.4 24929
26133.3 33373 12426.6 24826.7
"1988" 26123.4 33461.5 12439.2 24817.3
25253.2 33109.1 12465.7 23990.6
24960.6 33242.1 12482.5 23712.5
24782.6 33990.3 12497 23543.4
24701.5 34092 12516.2 23466.4
24661.9 34086.6 12532.1 23428.8
25536.1 34929 12548 24259.3
25943.5 36164.8 12563.9 24646.3
26360.8 37070.6 12573 25042.7
26865.1 37619.4 12596 25521.8
27215.1 37860.3 12612.1 25854.4
27236.9 38391.9 12625.9 25875
27054.9 38718.2 12639.8 25702.2
27072.7 38762.9 12660.4 25719.1
27270.4 39380.4 12676.5 25906.9
27151 39438.7 12683.4 25793.5
27163.4 39259.8 12708.6 25805.2
27087.2 39658.6 12717.8 25732.9
26288.6 38901.6 12741.8 24974.2
26463.6 39013.7 12758.8 25140.4
26720.8 38780.5 12775.9 25384.8
27142.8 38641.5 12793 25785.7
27402.2 39265 12811.3 26032
27700.6 39579.3 12829.5 26315.6
27202.5 38542.3 12845.1 25842.4
26613.8 37095.9 12860.8 25283.1
27466 37517.6 12885 26092.7
27128.4 37651.9 12903.9 25772
27066.7 37377.2 12922.9 25713.3
27291 38217.7 12941.9 25926.4
27404.2 38608.2 12960.8 26034
26455.3 37077.1 12980.7 25132.6
26599.4 37773.5 13000.6 25269.4
26624.1 37101.2 13020.5 25292.9
26296.8 35951.2 13040.4 24982
27052.2 36666.7 13061 25699.6
27122.2 36864.2 13081.6 25766.1
27461.8 36913 13090.5 26088.8
27352.8 37173.9 13117 25985.1
27636.8 37439.4 13143.5 26254.9
28081.4 38486.2 13164.3 26677.3
29450.2 39502.1 13185.1 27977.7
29999.7 40161.8 13205.9 28499.7
30236.4 40753.6 13226.7 28724.6
30464.9 41209.9 13247.7 28941.7
31018.6 42372 13268.6 29467.7
31553.7 43435.3 13289.5 29976.1
31603.1 43218.7 13310.4 30023
31940.7 43237.4 13335 30343.7
31529 43043.1 13359.6 29952.6
31473.5 42581.6 13384.1 29899.8
31708.6 43139.2 13401.7 30123.2
"1989" 31995.4 43728.9 13419.2 30395.7
32288.8 44464.1 13456.6 3 0674.3
31503.7 44233.7 13480 29928.5
32062.3 44583.9 13503.3 30459.2
31669.8 43944.5 13520 30086.3
32933.7 44838.7 13550.3 31287
32866.8 45524.6 13574 31223.5
32515.3 45129.8 13597.7 30889.5
31637.4 44125.8 13614.6 30055.5
31708.6 43989.4 13647.3 30123.2
31663.3 43898.3 13673.3 30080.1
31093.9 42642.9 13699.2 29539.2
30934.3 43342.9 13717.8 29387.6
31643.9 43930.3 13751.2 30061.7
31538.2 43612.4 13777.4 29961.3
31792.7 44086.5 13803.6 30203.1
31480 43859.5 13829.8 29906
31387.2 44119.9 13856 29817.8
31747.4 44157.1 13881.9 30160
30513.7 42753.4 13907.8 28988
30223.9 41439.9 13933.7 28712.7
30845.3 41686.2 13959.6 29303.1
31124.5 41371.2 13985.2 29568.2
30507.4 39946.4 14010.8 28982
31687 40904.9 14036.4 30102.7
31990.1 41512.2 14054.7 30390.6
33470.7 42494.6 14087.6 31797.1
34305.8 43578.3 14113 32590.5
34787.7 43180.9 14138.3 33048.3
35202 44585.8 14163.6 33441.9
35690.4 46544.7 14188.9 33905.9
35768.9 45890.7 14212.5 33980.5
35526.9 44943.2 14236 33750.5
35677.3 44787.5 14249.5 33893.5
35542.1 44448.5 14283.1 33765
35640.3 43615.1 14307.4 33858.3
35130 43455.1 14331.7 33373.5
35010.1 44015 14356 33259.6
35555.2 45869.1 14373.4 33777.5
35801.6 45365.5 14390.8 34011.6
35559.6 43897.4 14429.5 33781.6
34148.8 43999 14454.4 32441.4
34604.5 44440.6 14479.2 32874.3
34709.2 44156.4 14504.1 32973.7
34227.3 43973.2 14528.1 32515.9
35021 44461.2 14552.1 33270
35234.7 44650.5 14576.1 33473
36202.8 46188.1 14600.1 34392.7
37195 47303.2 14624.4 35335.2
37120.8 47634.5 14638.3 35264.8
37183.7 47108.4 14673.1 35324.5
38380.8 48524.4 14690.4 36461.7
"1990" 39975.4 48153.1 14714.8 37976.6
39674.4 47720.9 14745.4 37690.7
38390 46266.1 14769 36470.5
37452.5 45598.4 14782.5 35579.9
38674.9 46508.7 14812.9 36741.1
39304.5 46704.8 14839.6 37339.2
38277.4 46194.5 14862.8 36363.5
37917.2 44714.4 14886.1 36021.4
37774 43273.1 14909.4 35885.3
37988.9 42204.7 14932.9 36089.4
37718.5 40787.8 14956.5 35832.6
37878 39309.2 14980.1 35984.1
37808.6 39274.5 14997 35918.2
37905.7 37814.7 15013.8 36010.4
37762.4 38944.6 15051.4 35874.3
37875.6 38848 15075.6 35981.9
36888.9 38685 15099.7 35044.4
36868.1 39202 15123.8 35024.7
37975 40652.4 15148.5 36076.3
38587.4 42199.7 15173.2 36658
39273.8 42549.5 15197.8 37310.1
39571.9 43097.9 15222.5 37593.3
39826.1 42828.9 15236.2 37834.8
39967 41966.9 15270.6 37968.7
40052.5 41995.7 15294.7 38049.9
40715.8 42380.9 15311.9 38680
41825 43323.8 15329.1 39733.7
42106.9 43342.6 15360.1 40001.6
43070.6 44462.4 15387.6 40917
42351.9 43088.3 15415.2 40234.3
42680 43034.8 15435.8 40546
39615.8 39749.4 15462.6 37635
39715.1 40595.8 15479.2 37729.4
37572.9 37907.4 15505.9 35694.3
37822.5 38535.1 15525.9 35931.4
38240.8 37821.2 15555.8 36328.7
38183 38867 15576.1 36273.9
37575.2 36894.7 15589.7 35696.5
37083 34414.1 15620.1 35228.9
37140.8 36108.1 15640.4 35283.8
37988.9 37666.6 15675.1 36089.4
38642.9 38781.2 15699.7 36710.7
38917.9 39835.6 15724.3 36972
37995.8 38807.9 15748.9 36096
37471.2 38102.4 15759 35597.7
37147.7 37941.5 15796 35290.3
37235.5 37851 15809.5 35373.8
37096.9 37558.3 15843.2 35242
35978.4 36575.1 15866.8 34179.5
37455.1 38791.1 15893.1 35582.3
37351.1 38646.8 15919.3 35483.5
35504.7 36753 15938.1 33729.4
"1991" 36224.8 37132.9 15964.3 34413.5
35633.4 36477.5 15994.8 33851.7
34737.8 35110.1 16017.8 33000.9
36148.7 37099.3 16040.7 34341.3
36607.8 38003.5 16063.7 34777.4
38438.3 40016 16084.7 36516.4
39263.5 41753.7 16105.7 37300.3
38798.8 42168.1 16120.7 36858.9
38483.4 42415.6 16144.7 36559.2
38322.9 42006.9 16159.8 36406.7
37959.3 41472.3 16190.2 36061.3
37313.8 40360.8 16211.5 35448.1
37395.5 39869.9 16226.7 35525.8
38379.3 41591.2 16245 36460.4
38184.8 41257.1 16273.6 36275.6
38847.3 42161.1 16293.1 36904.9
37181.3 40136.9 16301.4 35322.2
37116.5 41094.9 16329.3 35260.6
37451.9 40580.8 16350.4 35579.3
37122.1 40508.6 16368.8 35266
37257.4 40135.6 16387.2 35394.5
37243.3 40632 16405.7 35381.1
37167.2 40110.6 16413.5 35308.8
36614.7 38905.9 16442.4 34784
36530.1 38205.3 16460.7 34703.6
36470.9 38236.5 16473.7 34647.4
36558.3 37476.6 16489.4 34730.4
36741.5 37761.2 16516.1 34904.5
36840.2 38416.3 16534.8 34998.2
37054.4 39276.6 16553.6 35201.7
37127.7 39651.8 16567.1 35271.4
37339.1 39735.9 16590.9 35472.2
37071.4 39229.1 16609.4 35217.8
36330 37861.3 16627.8 34513.5
36938.9 38064.4 16646.3 35091.9
37714.1 39239.6 16664.8 35828.4
37897.3 39496.3 16672.4 36002.4
38421.6 40125 16695.3 36500.5
38201.7 40541 16713.1 36291.6
39103.8 41683.3 16730.8 37148.6
38697.9 41122.1 16752.9 36763
38948.7 41039.2 16770 37001.3
38458.2 41089.8 16777.3 36535.3
39216.5 41403.4 16804.1 37255.7
39715.5 41909.1 16811 37729.7
39788.8 41765.7 16836.3 37799.3
39788.8 40582 16852.4 37799.3
39351.8 40060.9 16868.6 37384.2
39253.2 39823.6 16884.7 37290.5
39941 38931.1 16891.7 37943.9
40376.2 39923.5 16917.5 38357.4
41442.6 39551 16929.2 39370.5
"1992" 41897.3 41780.3 16945.6 39802.4
42565.4 41721.3 16963.9 40437.1
41382.2 39821.1 16977.5 39313.1
41948.6 40940.5 16991.1 39851.1
41835.9 40449.6 16996.9 39744.1
41604.6 41028.6 17018.3 39524.3
41506.7 40082.4 17031.6 39431.4
40617.4 38686.7 17044.8 38586.5
40886.9 39075 17058.1 38842.6
41091.6 38748.3 17067.6 39037
40738.7 37456.6 17077.1 38701.7
40792 36752.2 17098.4 38752.4
40735.7 37023.6 17108 38698.9
40462.9 35745.1 17121.5 38439.7
40848.4 34603.3 17138.9 38806
40928.4 36746.2 17152.5 38882
40972.6 36080.6 17166 3 8924
41364.4 36950.3 17179.6 39296.1
41946.9 37858.2 17188.5 39849.6
42513.2 39051.9 17204.7 40387.5
42959.8 39279.6 17210.1 40811.8
42980.5 38382.3 17224.4 40831.5
43659.6 39169.8 17235.2 41476.6
43567.7 38682.9 17255.2 41389.3
43876.1 37764.3 17268 41682.3
44427.6 37170.7 17277.1 42206.2
45498.1 38081 17290 43223.2
46453 38221.3 17306.3 44130.3
46977.9 38758.3 17318.9 44629
46215.8 36231.2 17331.6 43905
46719.9 36092.4 17337 44383.9
47191.4 36714.7 17353.2 44831.8
47674.7 34960.7 17367.7 45291
47473.1 35225.4 17378.5 45099.4
49071.4 37231.9 17389.3 46617.9
49961.1 38756.4 17395.5 47463
49972.9 39589.4 17411.2 47474.3
46049.7 37501 17422.2 43747.2
43357.1 38305.9 17430.1 41189.3
47651 38272.5 17441.2 45268.5
47141 37249.9 17448.7 44783.9
46370 37496.6 17459 44051.5
45287.6 36907.7 17475.1 43023.2
44691.5 36549.5 17479.4 42457
44383.1 36625.7 17495.6 42164
44234.9 35643.8 17504.5 42023.1
43315.6 35800.2 17516.5 41149.8
43579.5 36175.8 17524 41400.5
42749.2 36649.5 17531.5 40611.8
43250.4 36866.8 17551.4 41087.8
44048.1 37013.4 17565.2 41845.6
43271.1 37536.2 17577.1 41107.6
43285.9 36791.7 17589 41121.6
"1993" 43301.6 36742.2 17597.6 41136.5
43165 35949 17614.5 41006.7
44277 36491.2 17622.2 42063.2
44829.8 36610.4 17636 42588.3
43766.5 36746.9 17646.8 41578.2
44143.7 37134.5 17657.1 41936.5
45457.4 37556.7 17667.5 43184.5
46364.6 37765.2 17677.9 44046.3
47866.8 38479.7 17685.3 45473.5
48253.7 39179.9 17698.6 45841.1
46655.6 39291.7 17706 44322.9
47561.1 39895.9 17716.4 45183.1
48549.6 41279.5 17726.8 46122.2
48595.2 43088.3 17740.2 46165.4
50305.5 44241.6 17750.6 47790.2
50312 43700.8 17761 47796.4
50513.6 44567.6 17765.5 47987.9
51212.7 45480.9 17780.4 48652.1
51043.6 44552.5 17792.1 48491.4
50773.7 44514.6 17800.8 48235.1
51615.9 45757.2 17808.2 49035.1
52051.6 46082 17822.8 49449
51303.7 46205.7 17827.3 48738.6
51388.3 45350.1 17844.1 48818.9
50136.4 44034.8 17851.8 47629.6
51268 45464.5 17862.4 48704.6
51067.2 45048.1 17874.5 48513.8
50695.7 45516.9 17886.5 48160.9
50825.8 45558.8 17897 48284.5
51652.3 46177.7 17907.5 49069.7
53709.9 47873.5 17918 51024.4
55410.5 48281.1 17928.5 52640
57722.4 49571.9 17933 54836.3
56750.2 48332.3 17949.5 53912.7
58707.6 49448.4 17960.1 55772.3
59757.9 49289.1 17970.6 56770
59276.7 49272.4 17981.2 56312.8
59040.7 47934.1 17990.2 56088.7
61139.8 48436.5 17999.2 58082.8
62372.2 49745.6 18012.8 59253.6
64290.6 49830.1 18023.4 61076.1
65500.2 49748.7 18034 62225.2
64888.3 49347.5 18044.5 61643.9
65945.7 49989.4 18049.1 62648.4
65474.2 48127.7 18059.7 62200.5
66810.6 48520.7 18076.3 63470.1
65799.4 46899.9 18086.9 62509.4
66612.3 47075 18091.5 63281.7
69025 47489.3 18109.5 65573.7
70267.1 47888.1 18121.4 66753.7
74282.8 48659.5 18133.3 70568.7
76929.6 48975.6 18141.8 73083.1
"1994" 77586 49354.6 18152.1 73706.7
75781.6 49396.5 18168.1 71992.5
76757 50624.4 18178.9 72919.2
75543.7 50710.7 18185.2 71766.5
76686.5 53459 18196.1 72852.2
74196 51986.4 18211.2 70486.2
73529.3 52278.6 18217.2 69852.8
72802.6 52031.2 18226.1 69162.5
70396.8 51934.7 18242.6 66877
70509.7 51767 18254.8 66984.2
70291 52633.2 18267.1 66776.4
69081 51383.9 18277.6 65626.9
69391.4 50871.2 18288.1 65921.9
68216.7 50896.1 18304.1 64805.9
67359.5 51992.2 18316.6 63991.6
66516.4 51627.4 18321.9 63190.6
67327.8 52410.3 18334.4 63961.4
67239.6 51923.8 18354.1 63877.6
66569.3 52180.5 18367.7 63240.9
68036.8 52952.2 18381.3 64635
68371.9 52475.9 18395 64953.4
67983.9 52578.6 18408.6 64584.7
66865.7 52910.5 18423.4 63522.4
68086.2 53116.1 18434 64681.9
69631.3 52360.7 18450.9 66149.7
70481.5 53394.5 18463.5 66957.4
70729.8 53560.5 18476.7 67193.3
72167.6 54100.3 18490.2 68559.2
70920 54571.1 18514.9 67374
70294.4 53862.3 18530.6 66779.7
70122.5 54807.6 18537.4 66616.4
69423.7 54549 18555.2 65952.5
69782.2 54790.8 18568.6 66293.1
70850.5 55144.1 18593 67308
69654.2 55143.3 18599.7 66171.5
71044.4 54565 18625.5 67492.2
71256.6 54225.8 18642.5 67693.8
70733.4 54109.4 18659.4 67196.8
71048.1 53658.1 18671.6 67495.7
70905.4 52900.5 18688.5 67360.1
71340.8 53921.8 18711.1 67773.7
73393.2 54610.2 18728.8 69723.5
73243.2 54137.8 18736.3 69581
72672.4 54961.4 18764.2 69038.8
72416.4 53742.6 18781.9 68795.5
71256.6 53433.2 18792.1 67693.8
71509 51938.2 18812.4 67933.6
70672.3 52568.7 18832.7 67138.7
70115.1 51900.3 18856.7 66609.4
69701.7 51043.6 18878.1 66216.6
69378.1 52069.4 18899.6 65909.2
69309.1 52417.7 18914.9 65843.7
"1995" 68830.6 52301.5 18933.3 65389.1
70351.3 52108.4 18963.8 66833.8
70882.6 51867.4 18972.9 67338.5
72083 50021.8 19006.5 68478.8
72030.2 50934.3 19027.8 68428.7
71762.6 50784 19049.5 68174.5
72723.7 50974.5 19071.2 69087.5
74881.1 51243.8 19092.8 71137.1
76300.5 50547.2 19111.4 72485.5
80169.2 52095 19136.5 76160.8
81746.7 52115.1 19158.5 77659.4
81134.4 51468.4 19180.5 77077.7
82209 53077 19196.2 78098.6
83158 53509.7 19224.5 79000.1
81231.7 54532.8 19233.9 77170.1
84350.2 55878.3 19268.7 80132.7
83101.2 55633.9 19290.8 78946.1
83413.5 56992.4 19313 79242.8
83531.1 56737.8 19334.9 79354.5
81126.3 55270.6 19356.9 77070
82261.8 54639.9 19378.9 78148.7
85205.9 55327.1 19391.5 80945.6
86361.7 55958.7 19423 82043.6
84617.9 54546 19445.1 80387
84946.4 55186.6 19454.6 80699
83494.6 54357.5 19483 79319.8
84536.8 55367.1 19505.1 80309.9
83766.3 57172.4 19527.4 79578
83474.3 56656 19556.3 79300.6
83681.1 57216.5 19578.7 79497.1
83790.6 57126.3 19601.2 79601.1
83871.7 56818.2 19610.3 79678.1
80927.6 55968.6 19631.7 76881.2
80951.9 55763.6 19665.3 76904.3
81625.1 55121.2 19686.7 77543.8
82517.2 55331.4 19708.4 78391.4
82541.6 55823.6 19730.1 78414.5
84317.8 55630.7 19739.4 80101.9
84106.9 56057.4 19767.3 79901.6
84390.8 56289.1 19782.8 80171.2
84102.9 55254.4 19816.8 79897.7
85234.3 55693 19832.3 80972.6
87043 55551.5 19860 82690.8
86592.8 54795.7 19881.6 82263.2
87448.5 55393.5 19903.1 83076.1
88567.8 55411.9 19924.5 84139.4
88957.1 56450.3 19946 84509.2
88413.6 56458.1 19967.4 83993
90165.5 57513.4 19986.1 85657.3
88888.1 57571.8 20004.8 84443.7
89338.3 57763 20032.8 84871.4
90476 59006.3 20048.3 85952.2
"1996" 90943.3 59379.3 20067 86396.1
91198.1 59388.1 20097.5 86638.2
91070.7 58994.2 20118.7 86517.1
90815.8 58229.7 20139.8 86275
89286.6 59278.2 20161 84822.3
88182.2 59743.3 20178.4 83773.1
88139.8 59600 20201.6 83732.8
87545.1 59328 20213.2 83167.8
87375.2 59461.1 20242.2 83006.4
87205.3 59444.7 20262.1 82845
84656.7 58318.2 20282 80423.8
85676.1 59482.6 20290.5 81392.3
85846 60224.6 20316.1 81553.7
86610.6 60895 20333.2 82280.1
84996.5 60855.2 20361.9 80746.6
84741.6 60940.2 20382.2 80504.5
84954 62147.6 20402.4 80706.3
84062 62126 20414 79858.9
83382.4 61447.4 20443 79213.2
83254.9 61430.2 20463.3 79092.2
82150.5 61174.5 20477.8 78043
82745.2 60792.8 20503.9 78607.9
83212.4 61096.9 20524.2 79051.8
83000.1 61067 20544.6 78850.1
83212.4 61691.4 20565.1 79051.8
83467.3 61665 20579.7 79293.9
84104.5 61401.4 20597.2 79899.2
84146.9 60761 20626.7 79939.6
85591.2 59813 20647.4 81311.6
85251.3 58817.8 20668.2 80988.8
87290.2 59988 20688.9 82925.7
88861.9 60128.2 20709.7 84418.8
88320.3 60472.7 20730.6 83904.3
88873.6 61001.4 20745.4 84430
88660.8 60866.9 20772.2 84227.8
87894.7 59916.2 20793 83499.9
87809.5 59854.4 20813.9 83419.1
89512.1 61146.4 20813.9 85036.5
89810 61747.7 20864.4 85319.5
90789 61962 20870.3 86249.6
91810.5 61376.3 20897.3 87220
90576.2 61937.7 20918.3 86047.4
90831.6 61576.4 20939.3 86290
90789 61202.7 20960.4 86249.6
93300.3 61886.9 20972 88635.3
94577.2 62623.3 20995.2 89848.4
96407.5 63684.4 21015.6 91587.1
97556.7 63626.7 21041.8 92678.9
97301.3 62691.1 21062.1 92436.2
95428.5 62208.9 21083.6 90657.1
94492.1 61690.9 21092.8 89767.5
96621.6 61597.8 21120.4 91790.5
"1997" 98929.2 62776 21141.8 93982.8
97689.9 61883.3 21169.6 92805.4
100040 61630.1 21191.3 95038.3
100980 60943.9 21203.7 95931.4
100254 59729.2 21222.3 95241.3
103074 60521.2 21256.3 97920.7
105724 60876 21278.1 V100438
106878 60924.4 21299.9 V101534
107220 61935.4 21315.4 101859
107262 61417.5 21334.1 101899
107775 61614.5 21365.2 102386
104185 61106.4 21386.9 98976.2
104955 61487 21402.5 99707
102391 60838.6 21424.2 97271.1
105681 60017.5 21453.3 100397
105339 60133.9 21476.2 100072
107177 61628.6 21499 101818
109143 62180.5 21512.1 103686
112262 64524.2 21544.8 106649
115040 66841.7 21567.8 109288
113630 67541.5 21580.9 107948
113672 67369.6 21613.7 107989
114100 67019 21636.7 108395
114698 68723.3 21659.8 108963
114698 68874.4 21682.8 108963
118288 70422.2 21699.3 112373
119698 70189.9 21722.4 113713
123330 70977.6 21752.1 117164
127946 71580.5 21765.2 121548
128159 71338.2 21798.2 121751
129997 70794.1 21821.2 123497
129783 69681.2 21840.9 123294
126877 69385.1 21867.2 120533
126942 68751.9 21890.2 120595
121610 67178.4 21913.3 115529
123459 66900.2 21936.3 117286
120922 67074.7 21959.6 114876
122255 67035.7 21982.8 116142
125781 68973.1 21999.4 119492
129823 69695.9 22022.7 123332
129479 69950.7 22039.4 123005
127329 68797.2 22076.4 120962
125910 67691.8 22099.9 119614
120062 64604.1 22109.9 114058
121266 64837 22146.9 115202
115804 61707.5 22170.5 110014
118858 62739.8 22187.4 112915
119288 62785.3 22211 113323
123330 64445.4 22241.4 117163
126254 64462.9 22252.1 119941
127014 64790.4 22291.2 120664
124908 62546.7 22309 118662
127552 64067.9 22334 121174
"1998" 130869 63604.4 22366.8 124325
127193 62346.4 22392.5 120834
129883 65220.8 22418.2 123388
129390 67218.3 22429.2 122920
133513 69018.6 22454.9 126837
133423 70001.9 22493.2 126752
135619 69772.5 22516.8 128838
137681 69942.4 22540.3 130797
137367 71339.6 22563.9 130499
139250 71454.1 22588 132287
143418 72389.3 22605.2 136247
145927 74338.9 22629.2 138631
147899 73795.9 22653.3 140504
149916 74817.9 22684.3 142420
152785 76565.8 22708.5 145145
149289 75233 22732.7 141824
144986 72802.9 22753.4 137737
150140 75127.5 22781.3 142633
147810 74488.6 22805.7 140419
147675 74649.5 22819.6 140292
147989 73982.5 22847.5 140590
150633 74164.3 22868.5 143102
151081 73625.9 22889.3 143527
148616 72581.1 22927.3 141186
147406 72425.9 22944.7 140036
150051 75333.4 22968.9 142548
152785 76154.6 22993.4 145145
157177 77242.7 23017.9 149318
156863 76750.1 23042.4 149020
155115 74872 23066.9 147359
151485 72698.7 23091.4 143911
148902 69741.6 23115.9 141457
151495 71443.7 23140.4 143920
147401 68157.1 23164.9 140031
140394 67157.4 23189.3 133375
138620 68301.1 23213.8 131689
138984 67926.8 23238.2 132035
135163 65296.7 23262.7 128405
133525 63847.9 23287.2 126849
130932 63862.1 23310.8 124385
127884 66099.1 23334.2 121489
126064 69436.2 23357.7 119761
126109 68960 23381.1 119804
127929 73398.1 23404.5 121533
126064 71036.8 23427.8 119761
128703 71968.1 23451 122267
129521 74178.6 23474.3 123045
128884 72558.4 23497.8 122440
132160 74385.9 23522.6 125552
130659 73760.2 23547.4 124126
134844 76195.7 23572.2 128102
135800 76674.1 23596.9 129010
"1999" 139849 80467.1 23620 132856
132660 75872.1 23642.3 126027
132842 78468.5 23664.7 126200
130249 76493.6 23687.1 123737
129476 76853.4 23709.3 123002
126519 73939.5 23731.3 120193
125973 74582.5 23753.3 119674
127292 75553.8 23775.3 120928
124426 73335.3 23797.4 118205
124108 76635.9 23819.4 117902
124244 78636.4 23841.5 118032
122606 76466.6 23863.6 116476
122151 78221.9 23885.7 116044
121878 79895.4 23907.9 115784
124199 81384.1 23930 117989
121833 79251.5 23952.2 115741
123562 81819.4 23974.4 117384
123789 81047.1 23996.4 117600
123061 80546 24018.4 116908
121696 78459.5 24040.4 115612
120832 77607.1 24062.4 114790
120650 77887.7 24084.4 114618
121423 80339.8 24106.6 115352
121423 80558.2 24128.8 115352
120878 80751.3 24151.1 114834
120059 80263.7 24173.3 114056
121833 82390.7 24197.1 115741
119786 82152.2 24221.1 113796
118603 82411.4 24245.2 112673
116556 81536 24269.3 110728
113917 82340.3 24293.3 108221
112234 79578.4 24317.3 106622
114372 82683 24341.4 108653
115418 84064.5 24365.4 109647
115373 84315.3 24389.4 109604
116237 84560.6 24414.3 110425
114463 84725.3 24439.1 108740
113280 83565.8 24463.9 107616
112188 82766.4 24488.8 106579
113735 84964 24513.8 108048
113690 84782.7 24538.9 108005
113007 84199.2 24564 107357
112552 84413.5 24589.1 106925
117147 87108.2 24614.1 111290
119058 88650.9 24639.2 113105
121423 90039.8 24664.3 115352
123289 89938 24689.3 117124
125927 90455.6 24714.4 119631
133161 92898.9 24744.9 126503
128612 91541.4 24775.4 122181
136982 94518 24805.9 130133
144762 97083.7 24836.5 137524
"2000" 134935 93942.9 24865.1 128188
136800 94725.7 24892.2 129960
136527 94176.9 24919.3 129701
139667 93322 24946.4 132683
141122 93199.8 24973.6 134066
151268 96603.2 25001.6 143704
148765 94106.9 25029.6 141327
151904 94823 25057.5 144309
159320 96179.9 25085.5 151354
158911 96341.2 25113.8 150965
148811 93841.2 25142.1 141370
150767 96371.6 25170.4 143229
149448 98774.7 25198.7 141975
130113 95781.2 25227.7 123607
132933 96036.1 25257.3 126287
121105 92650.1 25287 115050
126473 93486.6 25316.6 120150
125700 92424.5 25346.5 119415
118466 90201.8 25376.8 112543
118375 90042.1 25407.2 112457
109868 87019.2 25437.6 104375
113235 90696 25468 107573
118148 95337.4 25499.6 112241
118648 95240.1 25531.5 112716
119376 94555.4 25563.4 113407
119194 94029.3 25595.3 113235
119422 94264.1 25604.4 113451
NOTE:The graph compares the performance results of a hypothetical $10,000
investment in Class A and a comparable index. The performance of Class A is
shown after adjustment to reflect the maximum sales load, which is waived for
certain investors. The performance of the index does not reflect brokerage
commissions and other expenses that would be incurred to acquire a comparable
portfolio of securities.
<PAGE>
AVERAGE ANNUAL TOTAL RETURN -- CLASS A
[Figures below represent bar chart in printed piece]
GAM
INTERNATIONAL
CLASS A
(AFTER
MAXIMUM
GAM SALES MSCI
INTERNATIONAL LOAD EAFE
CLASS A OF 5%) INDEX
------------- ----- -----
1 Year (0.53) (5.50) 17.44
5 Years 7.38 6.28 11.63
10 Years 11.24 10.67 8.28
Since Inception 17.36 16.97 15.58
ANNUAL PERFORMANCE -- CLASS A
[Figures below represent bar chart in printed piece]
GAM
INTERNATIONAL
CLASS A
(AFTER
MAXIMUM
GAM SALES MSCI
INTERNATIONAL LOAD EAFE
CLASS A OF 5%) INDEX
YEAR % % %
---- ------------- ----- -----
1996 8.98 3.53 6.36
1997 28.9 322.48 2.06
1998 7.22 1.85 20.33
1999 6.99 1.64 27.3
2000 (18.38) (22.46) (3.95)
--------------
Sources used are the net asset value of the Fund which is computed daily, The
Financial Times and Morgan Stanley Capital International.
The MSCI Europe, Australasia and Far East Index is a market value weighted,
unmanaged index of the weighted share prices of some 1,093 companies listed on
the stock exchanges of Australia, Austria, Belgium, Denmark, Finland, France,
Germany, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway,
Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The
combined market capitalization of these companies represents approximately 60%
of the aggregate market value of the stock exchanges of the above 20 countries.
The percentage change in the value of the index includes dividends reinvested.
GAM
INTERNATIONAL
GAM CLASS A MSCI
INTERNATIONAL (AFTER MAXIMUM EAFE
CLASS A SALES LOAD OF 5%) INDEX
YEAR % % %
--------------------------------------------------------------------------------
1996 8.98 3.53 6.36
1997 28.93 22.48 2.06
1998 7.22 1.85 20.33
1999 6.99 1.64 27.30
2000* (18.38) (22.46) (3.95)
* 6 months
9
===
GAM INTERNATIONAL FUND / REPORT TO SHAREHOLDERS GAM
<PAGE>
THE FACTS - CLASS B SHARES
================================================================================
GAM
International Average
GAM Class B MSCI 1 Month
International (with deferred EAFE Deposit
Class B sales charge) Index Rate
30th June, 2000 US$26.30 1,678.61
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (17.55) (21.68) (3.90) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (18.60) (22.67) (3.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 (1.16) (6.11) 17.44 5.92
--------------------------------------------------------------------------------
Since inception* (10.76) (12.04) 11.09 5.59
--------------------------------------------------------------------------------
================================================================================
THE FACTS - CLASS C SHARES
================================================================================
GAM
International Average
GAM Class C MSCI 1 Month
International (with deferred EAFE Deposit
Class C sales charge) Index Rate
30th June, 2000 US$26.27 1,678.61
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (17.57) (18.40) (3.90) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (18.64) (19.46) (3.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 (1.20) (2.19) 17.44 5.92
--------------------------------------------------------------------------------
Since inception* (9.71) (9.71) 12.28 5.59
--------------------------------------------------------------------------------
================================================================================
THE FACTS - CLASS D SHARES
================================================================================
GAM
International
Class D (after Average
GAM maximum MSCI 1 Month
International sales load EAFE Deposit
Class D of 3.5%) Index Rate
30th June, 2000 US$26.07 US$27.02 1,678.61
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (17.47) (20.36) (3.90) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (18.43) (21.28) (3.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 (0.65) (4.13) 17.44 5.92
--------------------------------------------------------------------------------
2 years to June, 2000 (10.79) (12.37) 12.58 5.59
--------------------------------------------------------------------------------
3 years to June, 2000 0.19 (1.00) 10.48 5.64
--------------------------------------------------------------------------------
Since inception* 7.67 6.87 11.80 5.59
--------------------------------------------------------------------------------
================================================================================
*Inception was on 26th May, 1998 for Class B shares, 19th May, 1998 for Class
C shares and 18th September, 1995 for Class D shares.
THE COMMENT
Investments made throughout the last six months have been based on three
underlying assumptions/principles. Firstly, inflation throughout the major
countries is likely to remain low (around 2%). Although there were periodic
fears of a return to high inflation, recent numbers show that intense global
competition and the impact of technology are keeping inflation at modest levels
(2% in Europe and minus 1% in Japan). That should keep interest rates low and
enhance the attraction of equities to investors. Secondly, the need to invest in
growing industries. We have continued to avoid industries with poor long-term
prospects such as automobiles, building materials, machinery, metals, real
estate, textile and transportation. Finally, a stock selection focused on
industry leaders, at a reasonable valuation compared to profit growth and
interest rates.
Most investors cannot recall a time when markets have been so volatile and
polarized in favour of just two or three sectors - technology, media, and
telecoms - and against those same sectors just a few months later.
The Fund has had to adjust to these changing environments. In the summer of
1999 we had sold utilities, slow-growing consumer goods and banks, and invested
in leading mobile phone companies (Nokia and Vodafone), software companies and
IT companies. In the second half of 1999 and the first quarter of 2000, the Fund
benefited strongly from these changes and its exposure to the technology and
telecom industries.
As it entered the last quarter, ending June 2000, with a high telecom and
technology exposure, the Fund has given back the gains it had achieved over the
prior two quarters. At the end of May we sold most software/IT stocks due to a
slowdown reported by some competitors, and mobile phone operators due to
concerns over a slowdown in revenues until the third generation is introduced in
three years, and concerns over high government-auctioned mobile license prices.
Nokia (now trading at over 100 times earnings) has been sold. Sales proceeds
have been reinvested across existing holdings. A consequence of these changes is
a lower average PER for the Fund - in the 30 times range. With this, we are very
comfortable with the Fund going forward.
The seven to eight industries in which the Fund is exposed have strong volume
growth and a good pricing environment. The 40 stocks in the Fund are the leaders
within these industries, with excellent growth prospects and attractively cheap
valuations. These industries are life insurance/financial services (Fortis,
AXA), pharmaceuticals (Roche, Takeda), semiconductors (Philips, Rohm),
media/advertising (WPP), cosmetics/beverages (L'Oreal, Danone), speciality
retailing, and outsourcing. We have also built a position in the oil industry,
which is currently 10% of the Fund, on account of a sharply rising oil price and
mergers which should result in cost savings (such as Total Fina Elf, BP Amoco
Arco).
10
====
GAM INTERNATIONAL FUND / REPORT TO SHAREHOLDERS
<PAGE>
================================================================================
STATEMENT OF INVESTMENTS AS AT 30TH JUNE, 2000+ (UNAUDITED)
MARKET
VALUE
HOLDINGS DESCRIPTION US$
-------------------------------------------------------------------
EQUITIES - 100.4%
FRANCE - 28.2%
257,930 AXA-UAP 40,541,179
4,388 Cegedim 354,047
420,750 Danone 55,712,097
6,836 Hermes 921,444
61,160 L'Oreal 52,842,741
55,386 LVMH Moet Hennessy 22,787,348
116,915 Pinault-Printemps-Redoute 25,916,550
476,558 Sanofi-Synthelabo 22,653,061
5,600 Sodexho Alliance 1,013,566
225,286 Total Fina B 34,465,956
-----------
257,207,989
-----------
GERMANY - 0.2%
11,226 Beiersdorf 941,062
16,535 Schering 913,572
-----------
1,854,634
-----------
HONG KONG - 3.1%
793,000 Johnson Electric 7,527,676
4,076,000 Li & Fung New 20,391,765
-----------
27,919,441
-----------
ITALY - 2.6%
1,217,300 Mediaset 18,553,600
475,376 TIM 4,845,422
-----------
23,399,022
-----------
JAPAN - 13.4%
163,020 ORIX 24,035,640
142,900 Rohm 41,734,420
50,700 Ryohin Keikaku 6,448,255
93,000 Secom 6,790,240
661,000 Takeda Chemical 43,342,220
-----------
122,350,775
-----------
NETHERLANDS - 23.6%
772,424 Aegon 27,423,680
1,449,733 Fortis Amev 42,107,167
564,998 Heineken 34,311,340
983,117 Koninklijke Ahold 28,872,827
1,079,656 Philips 50,806,927
513,919 Royal Dutch Petroleum 31,870,306
-----------
215,392,247
-----------
SINGAPORE - 3.0%
1,346,000 Singapore Press Holdings 21,037,337
596,000 Venture Manufacturing 6,072,128
-----------
27,109,465
-----------
SPAIN - 0.6%
388,280 Banco Bilbao Vizcaya Argentaria 5,788,552
-----------
5,788,552
-----------
SWEDEN - 2.5%
744,945 Assa Abloy 14,926,560
*101,345 NetCom Systems B 7,468,710
-----------
22,395,270
-----------
SWITZERLAND - 11.9%
18,652 Nestle 37,285,728
16,969 Novartis 26,846,199
4,514 Roche Holding Genussscheine 43,888,030
-----------
108,019,957
-----------
UNITED KINGDOM - 11.3%
3,303,268 BP Amoco 31,675,863
*53,673 Energis 2,011,650
1,332,895 Marconi 17,337,632
1,177,264 Matalan 9,276,987
2,949,461 WPP Group 43,049,227
-----------
103,351,359
-----------
TOTAL EQUITIES (COST $852,411,511) 914,788,711
-----------
TOTAL INVESTMENTS (COST $852,411,511**) - 100.4% 914,788,711
Net current liabilities - (0.4)% (3,889,594)
-----------
TOTAL NET ASSETS - 100.0% 910,899,117
===========
* Non-income producing security.
** Cost for federal income tax purposes is identical.
+ All securities have been segregated to collateralize forward exchange
currency contracts and revolving demand note (Note 8).
See notes to financial statements.
================================================================================
11
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
GEOGRAPHIC ANALYSIS AS AT
30TH JUNE, 2000
[Figures below represent pie chart in printed piece]
NET CURRENT LIABILITIES (0.4)%
FRANCE 28.2%
NETHERLANDS 23.6%
JAPAN 13.4%
SWITZERLAND 11.9%
UNITED KINGDOM 11.3%
HONG KONG 3.1%
SINGAPORE 3.0%
ITALY 2.5%
SWEDEN 2.5%
OTHER 0.8%
INVESTMENT ANALYSIS AS AT
30TH JUNE, 2000
[Figures below represent pie chart in printed piece]
NET CURRENT LIABILITIES (0.4)%
HEALTH & PERSONAL CARE 21.1%
INSURANCE 12.1%
ENERGY SOURCES 10.8%
FOOD & HOUSEHOLD PRODUCTS 10.2%
BROADCASTING & PUBLISHING 9.1%
MERCHANDISING 7.7%
APPLIANCES & HOUSEHOLD DURABLES 5.6%
ELECTRONIC COMP & INSTRUMENTS 5.2%
BEVERAGES & TOBACCO 3.8%
OTHER 14.8%
12
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
GAM PACIFIC BASIN FUND
FUND MANAGEMENT
--------------------------------------------------------------------------------
[Photo omitted]
MICHAEL S. BUNKER, INVESTMENT DIRECTOR, HAS OVERALL RESPONSIBILITY FOR ASIAN
INVESTMENT POLICY. PRIOR TO JOINING GAMIN 1985, HE WORKED FOR J. ROTHSCHILD
CHARTERHOUSE MANAGEMENT LTD. IN HONG KONG. HE HAS OVER 20 YEARS INVESTMENT
EXPERIENCE, PRIMARILY IN ASIAN MARKETS. HE COMMENCED MANAGEMENT OF GAMPACIFIC
BASIN ON 6TH MAY, 1997. MR. BUNKER ALSO MANAGED THE OFFSHORE FUND GAMPACIFIC,
INC. MR. BUNKER IS NOW BASED IN LONDON, HAVING LIVED IN HONG KONG FOR THREE
YEARS.
The Fund's investment objective is to seek long-term capital appreciation,
generally through investment in equity securities issued by companies with
principal offices in the Pacific Basin, including Japan, Hong Kong, Singapore,
Malaysia, Indonesia, the Philippines, Korea, Taiwan, India, Australia and New
Zealand. However, if the Fund determines that the long-term capital appreciation
of debt securities may equal or exceed the return on equity securities, it may
be invested substantially in debt securities of Pacific Basin companies and
their governments, their agencies and instrumentalities. Any income realized by
the Fund on its investments will be incidental to its goal of long-term capital
appreciation.
Investments in securities of foreign issuers involve additional risks and
expenses including currency rate fluctuations, political and economic
instability, foreign taxes and different accounting and reporting standards.
================================================================================
REPORT TO SHAREHOLDERS
--------------------------------------------------------------------------------
The Facts - Class A Shares
GAM
Pacific Basin
Class A (after Average
GAM maximum MSCI 1 Month
Pacific Basin sales load Pacific Deposit
Class A of 5%) Index Rate
30th June, 2000 US$11.84 US$12.46 2,330.30
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (5.96) (10.66) (5.56) 1.58
--------------------------------------------------------------------------------
Jan-June, 2000 (16.44) (20.62) (5.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 9.75 4.26 21.82 5.92
--------------------------------------------------------------------------------
5 years to June, 2000 1.37 0.34 2.63 5.61
--------------------------------------------------------------------------------
10 years to June, 2000 5.77 5.23 2.56 5.27
--------------------------------------------------------------------------------
Since inception 7.48 7.06 1.63 6.03
--------------------------------------------------------------------------------
================================================================================
Performance is calculated on a total return basis. Class A inception was on
6th May, 1987, Class B on 26th May, 1998, Class C on 1st June, 1998 and Class D
on 18th October, 1995. Past performance is not necessarily indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost.
13
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
[Figures below represent line chart in printed piece]
GAM
PACIFIC
BASIN
CLASS A
(AFTER
GAM AVERAGE MAXIMUM
PACIFIC MSCI 1 MONTH SALES
BASIN PACIFIC DEPOSIT LOAD
CLASS A INDEX RATE OF 5%)
------------- ------- ------- -------
"1987" 10000 10000 10000 10000
10225 10045 10016.5 9713.75
10364 9591.02 10029.3 9845.8
10375 9696.05 10042.1 9856.25
10462 9829.25 10054.9 9938.9
10977 10223.2 10068.7 10428.2
10474 10053.8 10082.4 9950.3
10354 9467.63 10092.2 9836.3
10214 9024.23 10106 9703.3
10232 8477.62 10123.4 9720.4
10582 8705.56 10136.8 10052.9
10495 8100.68 10150.3 9970.25
10766 8772.76 10163.8 10227.7
10835 8710.3 10169.5 10293.2
11142 9172.34 10190.4 10584.9
11003 9378.01 10203.5 10452.8
11155 9780.13 10216.7 10597.2
11259 9849.09 10229.9 10696
11168 9504.54 10243.9 10609.6
11230 9334.68 10257.9 10668.5
11234 9255.23 10267.9 10672.3
11658 9564.31 10281.9 11075.1
12013 9543.17 10301.2 11412.3
12349 10008.5 10316.4 11731.5
8159 8742.08 10325.2 7751.05
8066 8342.64 10347 7662.7
7990 8658.08 10362.3 7590.5
7569 8075.55 10376.2 7190.55
7997 8716.02 10390.1 7597.15
8109 8956.79 10404 7703.55
7938 8845.73 10417.9 7541.1
7687 8788.28 10433.9 7302.65
7966 9060.05 10449.9 7567.7
8219 9047.55 10463.6 7808.05
8187 8842.48 10477.3 7777.65
"1988" 8464 8924.9 10488 8040.8
8261 8877.35 10510.3 7847.95
8519 8983.99 10524.5 8093.05
8449 9308.99 10536.6 8026.55
8440 9355.31 10552.9 8018
8280 9377.49 10566.3 7866
8508 9581.65 10579.7 8082.6
8696 9968.72 10593.1 8261.2
8841 10242.8 10600.7 8398.95
9034 10307.1 10620.1 8582.3
9141 10367.6 10633.7 8683.95
9244 10593.1 10645.3 8781.8
9239 10837.2 10657 8777.05
9199 10837.1 10674.5 8739.05
9570 10992.5 10688 9091.5
9408 10991.7 10693.8 8937.6
9486 10938.9 10715.1 9011.7
9764 11144.9 10722.8 9275.8
9518 10927.5 10743 9042.1
9629 10971.4 10757.4 9147.55
9572 10840.5 10771.8 9093.4
9660 10741.9 10786.2 9177
9840 10915.5 10801.6 9348
10081 11029.4 10817 9576.95
10058 10637.8 10830.2 9555.1
9865 10197.5 10843.4 9371.75
9883 10276.4 10863.8 9388.85
10118 10433.5 10879.8 9612.1
10092 10298.2 10895.8 9587.4
10209 10618.8 10911.7 9698.55
10260 10764.2 10927.7 9747
10028 10289.6 10944.5 9526.6
10048 10546.8 10961.3 9545.6
9820 10317.9 10978 9329
9541 9937.78 10994.8 9063.95
9737 10133 11012.2 9250.15
9630 10223.5 11029.6 9148.5
9527 10154.4 11037 9050.65
9501 10226.7 11059.4 9025.95
9317 10234.8 11081.8 8851.15
9527 10579.1 11099.3 9050.65
9648 10780.5 11116.8 9165.6
9676 10963.8 11134.4 9192.2
9608 11179.8 11151.9 9127.6
9709 11352 11169.5 9223.55
9781 11791.3 11187.2 9291.95
9942 12128.8 11204.8 9444.9
10080 12093.8 11222.5 9576
10129 12110 11243.2 9622.55
10148 12064.5 11263.9 9640.6
10120 11803 11284.6 9614
10167 12103.5 11299.4 9658.65
"1989" 10185 12243.9 11314.2 9675.75
10581 12536.8 11345.8 10052
10543 12439.1 11365.4 10015.8
10576 12453.5 11385.1 10047.2
10637 12188.4 11399.2 10105.2
10821 12440 11424.8 10280
10960 12705.6 11444.7 10412
10725 12609.3 11464.7 10188.8
10542 12307.8 11478.9 10014.9
10574 12138.4 11506.5 10045.3
10649 11928 11528.4 10116.5
10623 11633.9 11550.3 10091.8
10751 11936.4 11565.9 10213.5
10899 12283.9 11594.1 10354
11098 11978.4 11616.2 10543.1
11217 11996.1 11638.3 10656.2
11270 11977 11660.4 10706.5
11503 12116.9 11682.5 10927.8
<PAGE>
11560 12158.9 11704.3 10982
11496 11731.2 11726.2 10921.2
11230 11336.1 11748 10668.5
11228 11376.9 11769.8 10666.6
10955 11135.4 11791.4 10407.2
10874 10666.4 11813 10330.3
11108 10886 11834.6 10552.6
11183 11001.6 11850 10623.8
11348 11287.1 11877.8 10780.6
11607 11468.1 11899.1 11026.7
11562 11288.5 11920.5 10983.9
11906 11754.5 11941.8 11310.7
12278 12344.8 11963.2 11664.1
12430 12149.7 11983 11808.5
12371 11935.5 12002.9 11752.5
12528 11846.8 12014.2 11901.6
12448 11612.1 12042.6 11825.6
12436 11354.7 12063.1 11814.2
12536 11295 12083.6 11909.2
12605 11446.7 12104.1 11974.8
13006 12084.5 12118.7 12355.7
13059 11924.6 12133.4 12406
13314 11568.6 12166 12648.3
12820 11696.6 12187 12179
13085 11853.6 12208 12430.8
13207 11825.3 12228.9 12546.7
13247 11739.2 12249.2 12584.7
13377 11902.4 12269.4 12708.2
13464 11933.7 12289.6 12790.8
13632 12349.8 12309.8 12950.4
13756 12529.1 12330.3 13068.2
14056 12509.9 12342.1 13353.2
14082.2 12355.5 12371.4 13378
14537.3 12635.7 12386 13810.5
"1990" 14675.7 12358.8 12406.5 13942
14703.4 12062.9 12432.3 13968.2
14412.3 11616.3 12452.3 13691.7
14193.9 11569 12463.7 13484.2
14310.8 11784 12489.3 13595.2
14485 11705.3 12511.8 13760.8
14333.3 11655.6 12531.4 13616.7
14049.3 11132.4 12551 13346.9
13501.5 10642.2 12570.6 12826.4
13739.3 10249.8 12590.5 13052.4
13490.6 9707.44 12610.4 12816.1
13313.5 9042.68 12630.3 12647.9
13458 8992.99 12644.5 12785.1
13089.8 8350.71 12658.7 12435.3
13232.1 8763.97 12690.4 12570.5
13390.7 8686.55 12710.7 12721.1
13670.9 8778.98 12731.1 12987.4
13524.3 9013.05 12751.4 12848.1
13647 9239.85 12772.2 12964.7
13995.7 9835.28 12793 13295.9
14303.1 9874.25 12813.8 13587.9
14333.5 10000.6 12834.6 13616.8
14472.5 9928.47 12846.2 13748.9
14424.7 9591.98 12875.2 13703.5
14431.2 9549.68 12895.5 13709.7
14655 9542.16 12910 13922.3
14847.3 9797.02 12924.5 14104.9
15197 9824.3 12950.6 14437.2
15408.8 10097.1 12973.8 14638.4
15287.2 9604.19 12997 14522.8
15353.4 9488.32 13014.5 14585.8
14220.5 8723.91 13037 13509.5
14361.7 8939.96 13051.1 13643.7
13861 8310.17 13073.5 13168
14241.2 8351.12 13090.4 13529.1
14260.7 8255.12 13115.7 13547.7
14619.2 8752.16 13132.8 13888.2
14127.1 8193.4 13144.2 13420.8
13403.7 7575.28 13169.9 12733.5
13428.7 7889.7 13187 12757.3
13894.7 8389.18 13216.2 13199.9
14080.4 8799.51 13237 13376.4
14449.7 9005.62 13257.7 13727.2
14129.3 8851.46 13278.4 13422.8
13903.4 8532.81 13286.9 13208.2
13873 8485.13 13318.2 13179.3
13896.8 8279.3 13329.6 13202
13903.4 8224.07 13358 13208.2
13361.3 7813.65 13377.9 12693.3
14042.4 8556.5 13400 13340.3
13691.6 8604.7 13422.1 13007
13302.7 8149.16 13437.9 12637.6
"1991" 13394.3 8318.17 13460.1 12724.6
13220.9 8046.66 13485.8 12559.8
12979.2 7814.4 13505.1 12330.2
13489.4 8280.8 13524.5 12814.9
13748.9 8417.04 13543.9 13061.5
14296 8925.02 13561.6 13581.2
14516.4 9359.22 13579.3 13790.6
14575.7 9478.07 13591.9 13846.9
14527.6 9361.59 13612.1 13801.2
14762.6 9238 13624.9 14024.4
14733 9196.29 13650.6 13996.4
14765.8 9124.74 13668.5 14027.5
14769.2 9021.9 13681.3 14030.7
15209 9385.85 13696.7 14448.6
15038.3 9281.5 13720.8 14286.4
15193.2 9524.35 13737.3 14433.6
14959.2 9142.53 13744.3 14211.2
15036 9392.96 13767.8 14284.2
15090.3 9240.09 13785.6 14335.8
15082.4 9168.88 13801.1 14328.3
15040.6 9051.03 13816.7 14288.5
14800.9 9080.57 13832.2 14060.8
14871 8972.11 13838.8 14127.4
14578.1 8672.68 13863.1 13849.2
14475.2 8559.3 13878.6 13751.5
14467.3 8655.87 13889.6 13743.9
14584.9 8524.98 13902.8 13855.7
14664 8519.41 13925.3 13930.8
14838.2 8603.9 13941.1 14096.3
14880 8707.81 13957 14136
15102.8 8884.8 13968.3 14347.6
15112.9 8812.02 13988.4 14357.3
14895.8 8651.22 14003.9 14151
14383.6 8317.57 14019.5 13664.4
14463.9 8175.32 14035.1 13740.7
14819 8548.15 14050.7 14078
14782.8 8582.36 14057.1 14043.6
14992 8832.33 14076.4 14242.3
15165 8982.61 14091.4 14406.7
15465.7 9310.65 14106.3 14692.4
15582.2 9395.67 14125 14803.1
15542.6 9387.67 14139.4 14765.5
15465.7 9409 14145.5 14692.4
15462.3 9408.74 14168.1 14689.2
15605.9 9484.71 14174 14825.6
15594.6 9359.05 14195.3 14814.9
15299.5 8996.83 14208.9 14534.5
15193.2 8940.49 14222.5 14433.6
15125.4 8897.8 14236.1 14369.1
14935.4 8573.79 14242 14188.6
15145.4 8795.9 14263.7 14388.1
15000.8 8521.48 14273.6 14250.7
"1992" 15572.5 9155.14 14287.4 14793.9
15853.3 9072.36 14302.8 15060.6
15383 8530.36 14314.3 14613.9
15979.7 8800.55 14325.8 15180.7
15556.2 8559.15 14330.7 14778.3
15898.9 8733.31 14348.7 15104
15701.2 8492.43 14359.9 14916.2
15435.8 8062.37 14371.1 14664
15462.6 8130.35 14382.3 14689.4
15214.6 7986.7 14390.2 14453.8
14795.7 7590.02 14398.3 14055.9
14721.2 7357.91 14416.2 13985.2
14834.6 7513.8 14424.3 14092.9
14394.1 7070.93 14435.7 13674.4
14141.3 6545.3 14450.4 13434.2
14405.9 7019.62 14461.8 13685.6
14405.6 6816.95 14473.3 13685.3
14840.5 7028.07 14484.7 14098.5
15186.8 7195.11 14492.2 14427.4
15513.2 7527.3 14505.9 14737.5
15389.7 7545.48 14510.4 14620.2
15406.3 7343.1 14522.5 14636
15687.4 7575.64 14531.6 14903
15533.8 7460.13 14548.4 14757.1
15354.3 7111.55 14559.2 14586.6
15150 6918.39 14567 14392.5
15440.5 7195.82 14577.8 14668.5
15308.2 7249.26 14591.5 14542.8
15481.9 7394.68 14602.2 14707.8
14763.8 6825.39 14612.8 14025.6
14359.8 6617.86 14617.4 13641.8
14683.4 6899.63 14631.1 13949.3
14190.9 6462.24 14643.3 13481.4
13977.1 6471.22 14652.4 13278.3
14630.3 7297.67 14661.5 13898.8
15128.7 7726.74 14666.7 14372.3
15277.5 8084.77 14680 14513.7
15087.4 7656.15 14689.3 14333
15486.6 7965.09 14695.9 14712.2
15233.8 7702.96 14705.3 14472.1
15239.7 7636.39 14711.6 14477.8
15385 7710.31 14720.3 14615.8
15350.8 7585.01 14733.8 14583.2
15556.3 7492.77 14737.5 14778.4
15806.7 7578.55 14751.1 15016.3
15492.5 7273.88 14758.7 14717.9
15157.1 7297.59 14768.8 14399.2
15256.3 7477.47 14775.1 14493.5
15261 7457.87 14781.4 14497.9
15218.5 7497.97 14798.2 14457.6
15353.1 7575.85 14809.9 14585.5
15459.4 7729.59 14819.9 14686.4
15497.2 7488.29 14829.9 14722.3
"1993" 15453.9 7398.27 14837.2 14681.2
15456.3 7236.51 14851.4 14683.5
15578.1 7280.85 14857.9 14799.2
15541.6 7295.26 14869.5 14764.5
15701.1 7523.16 14878.6 14916
16055.5 7634.88 14887.4 15252.7
16230.8 7723.67 14896.1 15419.3
16216.2 7812.84 14904.8 15405.4
16336.8 7842.12 14911.1 15520
16677.8 8152.85 14922.3 15843.9
16649.2 8281.99 14928.6 15816.8
16871.4 8458.97 14937.3 16027.8
17211.2 8789.69 14946.1 16350.6
18096.5 9561.98 14957.4 17191.7
18531 9785.86 14966.2 17604.4
18478.4 9627.62 14974.9 17554.4
18675.5 9953.13 14978.7 17741.7
18892.2 10254.8 14991.2 17947.6
18785.7 9985.36 15001.1 17846.4
19010.9 10027.5 15008.5 18060.4
19252.1 10451.8 15014.7 18289.5
19355 10508.4 15027 18387.2
19543.5 10624.3 15030.9 18566.3
19110.1 10355.5 15045 18154.6
18750.2 9896.68 15051.4 17812.7
18888.2 10319.6 15060.4 17943.8
19039.9 10245.8 15070.6 18087.9
19246 10401.9 15080.7 18283.7
19323.1 10406.1 15089.6 18357
19493.6 10600.5 15098.4 18518.9
19894.9 11011.9 15107.3 18900.1
20251.2 11162.9 15116.1 19238.6
20395.6 11343.7 15119.9 19375.8
20164.2 10877.2 15133.9 19156
20509.5 11178 15142.8 19484
20769 11108.3 15151.6 19730.6
20592.7 11039.5 15160.5 19563.1
20356.1 10696.9 15168.2 19338.2
20658.8 10761.2 15175.8 19625.9
21193.9 11068.9 15187.2 20134.2
21411.8 11056.5 15196.2 20341.2
21524.4 11037.9 15205.1 20448.2
21380.9 10920.3 15214 20311.8
21842.7 11110.4 15217.8 20750.6
21351.8 10635.1 15226.7 20284.2
21523.2 10688.9 15240.8 20447
20871.9 10170.8 15249.7 19828.3
20699.2 9992.73 15253.6 19664.3
21226.9 9868.47 15268.7 20165.6
21983.5 10102.6 15278.8 20884.3
22235.7 10066.8 15288.8 21123.9
23082.9 10057.6 15296 21928.8
"1994" 24221.6 10308.6 15304.6 23010.5
23378.1 10256.3 15318.1 22209.2
24045 10602.1 15327.3 22842.8
23886.1 10680 15332.6 22691.8
25108.4 11430.3 15341.7 23853
24739.8 11225.9 15354.5 23502.8
24607 11255.1 15359.5 23376.7
24769.4 11268 15367.1 23530.9
24130.1 11505 15381 22923.6
23838.8 11268.9 15391.3 22646.8
24087.5 11487.4 15401.6 22883.2
23416 11143.5 15410.5 22245.2
23297.4 11152.8 15419.3 22132.5
23310.3 11130.4 15432.8 22144.8
23917.4 11410.2 15443.3 22721.5
23956.1 11354.6 15447.9 22758.3
24418.8 11369.7 15458.4 23197.9
24261.6 11292.5 15475 23048.5
24408.5 11403.6 15486.4 23188.1
24951.2 11545.9 15498 23703.6
24983.4 11622.7 15509.4 23734.2
25410.1 11834.5 15521 24139.6
25448.7 11858.6 15533.4 24176.3
25522.2 11964.3 15542.3 24246.1
25184.5 11820.9 15556.6 23925.3
25006.6 12095.7 15567.2 23756.3
25291.6 12150.8 15578.4 24027.1
25438.8 12101.3 15589.7 24166.9
25937.1 12169.8 15610.6 24640.3
25592.8 11940.3 15623.8 24313.1
26173.4 12039.2 15629.5 24864.8
26519.2 12018.8 15644.6 25193.2
26767.6 12136.9 15655.8 25429.2
26606.9 12170.5 15676.4 25276.6
27099.8 12105.3 15682 25744.8
26866.2 11923.9 15703.8 25522.9
26496.2 11866.8 15718.1 25171.4
26455.7 12007.7 15732.4 25132.9
26151.8 11775.9 15742.6 24844.2
26255.8 11777.3 15756.9 24943
26330.1 11853.1 15775.9 25013.6
26481.3 11967.5 15790.9 25157.3
26168.1 11903.2 15797.2 24859.7
26281.5 12024.4 15820.7 24967.4
26178.8 11649.6 15835.7 24869.9
25879.1 11566.1 15844.2 24585.1
24654.2 11289.5 15861.4 23421.5
24909.5 11430.8 15878.5 23664
24679.9 11263.8 15898.7 23445.9
23957.4 11056.9 15916.8 22759.6
24690.6 11274.2 15934.9 23456.1
25021.6 11400.7 15947.8 23770.5
"1995" 24843.9 11297.8 15963.3 23601.7
24177.6 11257.9 15989 22968.7
23694.7 11063.6 15996.8 22509.9
22480.9 10484.4 16025 21356.9
22629.9 10746.5 16043 21498.4
22915.1 10639.6 16061.3 21769.3
22598.4 10544.4 16079.6 21468.5
22495.2 10684.7 16097.8 21370.5
22286 10344.7 16113.5 21171.7
22296.1 10889.4 16134.6 21181.2
22298.9 10941.8 16153.2 21184
22187.1 10634.4 16171.7 21077.8
22586.9 11140.1 16185 21457.6
22773.2 11136.2 16208.8 21634.6
22879.3 11576.1 16216.8 21735.3
22932.3 11949.7 16246.1 21785.7
23084.2 11714.2 16264.8 21930
23651.7 12031.1 16283.4 22469.1
23935.4 11912.4 16302 22738.6
24259.3 11496 16320.5 23046.3
24222 11235.1 16339 23010.9
24107.4 11342.2 16349.7 22902
24381.1 11429.9 16376.2 23162
23643.1 10920.7 16394.8 22460.9
23902.4 11053.3 16402.8 22707.3
23865.2 10939.4 16426.8 22671.9
24243.5 11001.4 16445.4 23031.3
25703.7 11594.3 16464.2 24418.5
25309.7 11420.7 16488.6 24044.2
25309.7 11455.7 16507.5 24044.2
25415.7 11324.7 16526.4 24144.9
25490.2 11354.4 16534.2 24215.7
25571.9 11337.2 16552.2 24293.3
25420.6 11224.5 16580.5 24149.6
25622.5 11031.3 16598.6 24341.3
25667 10971.5 16616.8 24383.7
25739.8 11119.8 16635.2 24452.8
25849.6 10945.5 16643 24557.1
25628.4 11180.1 16666.5 24347
25865.9 11173.4 16679.6 24572.6
25701.2 10957 16708.3 24416.1
25794.7 10981.1 16721.3 24504.9
25638.8 10963.8 16744.7 24356.9
25356.7 10649 16762.9 24088.9
25465.1 10804.5 16781 24191.9
24504.6 10777.8 16799.1 23279.4
24875.8 11048.2 16817.1 23632
25279.6 11146.5 16835.2 24015.6
26180.6 11520.7 16851 24871.6
26246 11606.8 16866.7 24933.7
26053 11709.6 16890.3 24750.3
26402.2 11886.4 16903.4 25082.1
"1996" 26728.7 11803.3 16919.2 25392.3
26930.9 11951.3 16944.9 25584.3
26993.1 11866.6 16962.8 25643.4
26915.3 11573.2 16980.6 25569.6
27723.9 11875.8 16998.5 26337.7
27817.2 12009.6 17013.1 26426.3
27692.8 11925.3 17032.7 26308.1
27615 11827.5 17042.5 26234.3
27319.6 11687.3 17066.9 25953.6
27304 11694 17083.7 25938.8
26029 11413.7 17100.5 24727.6
26837.6 11670 17107.7 25495.7
27288.5 12004.7 17129.2 25924.1
27521.7 12115.7 17143.6 26145.6
27755 12088.6 17167.8 26367.2
28174.8 12151 17184.9 26766.1
28314.7 12489.1 17202 26899
28330.3 12582.7 17211.7 26913.8
28128.1 12440.8 17236.2 26721.7
28159.2 12332.1 17253.3 26751.3
27708.3 12264.6 17265.5 26322.9
27739.4 12085.8 17287.6 26352.4
27459.5 12029.1 17304.7 26086.6
27506.2 12025.5 17321.9 26130.9
27552.8 12214.7 17339.1 26175.2
27428.4 12253.1 17351.4 26057
27568.4 12017.2 17366.2 26190
27288.5 11792.7 17391.1 25924.1
26448.8 11654.2 17408.5 25126.4
26060.1 11417.2 17426 24757.1
25858 11620.3 17443.5 24565.1
26324.5 11475.9 17461.1 25008.2
26309.8 11584.7 17478.7 24994.4
26482.5 11681.1 17491.2 25158.4
26451.1 11484.3 17513.8 25128.6
25995.9 11261.8 17531.3 24696.1
25870.3 11253.3 17548.9 24576.8
26325.6 11601.4 17548.9 25009.3
26372.6 11570.4 17591.5 25054
26686.6 11631.8 17596.5 25352.3
26105.8 11372.5 17619.2 24800.5
26200 11551.6 17637 24890
26152.9 11335.8 17654.7 24845.2
25776.1 11178.7 17672.4 24487.3
26074.4 11295.3 17682.2 24770.7
26372.6 11453.5 17701.8 25054
26875 11612.8 17719 25531.2
27408.7 11614.5 17741.1 26038.3
26780.8 11340 17758.2 25441.8
26827.9 11248.9 17776.3 25486.5
26043 10995.4 17784.1 24740.8
25956.6 10755.5 17807.3 24658.7
"1997" 26283.8 10857.8 17825.4 24969.6
26456.1 10661.7 17848.8 25133.3
26473.3 10325.6 17867.1 25149.6
26748.9 10141.6 17877.6 25411.4
26542.2 9855.71 17893.2 25215.1
26266.6 9775.23 17921.9 24953.3
26335.5 9869.24 17940.3 25018.7
26387.2 9906.48 17958.7 25067.8
26490.5 10226.4 17971.8 25166
26111.6 9998.07 17987.5 24806
26111.6 9884.6 18013.8 24806
25508.7 9895.59 18032.1 24233.3
25715.4 9903.99 18045.2 24429.7
25560.4 9824.67 18063.5 24282.4
25681 9496.73 18088 24396.9
25767.1 9552.29 18107.3 24478.8
26042.7 9899.76 18126.6 24740.6
25853.2 9989.37 18137.6 24560.6
26869.4 10509 18165.2 25526
27282.8 10923.1 18184.6 25918.7
27558.4 11061.7 18195.6 26180.5
27937.3 11165.2 18223.3 26540.5
28643.5 11221.2 18242.6 27211.3
28333.5 11477.8 18262.1 26916.8
28402.4 11457.9 18281.6 26982.3
28746.9 11644.7 18295.5 27309.5
29160.2 11515.9 18314.9 27702.2
28299 11346.4 18339.9 26884.1
28522.9 11393 18351 27096.8
28505.7 11358.1 18378.8 27080.4
29022.4 11298.2 18398.2 27571.3
28884.7 11105.8 18414.8 27440.4
28057.9 11112.7 18437 26655
27303.2 10966.4 18456.4 25938.1
26154.6 10562.3 18475.8 24846.8
24581.8 10291.6 18495.2 23352.7
25394.7 10479.2 18514.9 24124.9
24440.4 9981.2 18534.5 23218.4
24740.8 10334.8 18548.5 23503.8
24846.8 10190.8 18568.1 23604.5
24334.3 10113.8 18582.2 23117.6
23698.2 9819.92 18613.4 22513.2
22302.1 9714.21 18633.2 21187
20570.2 9132.31 18641.7 19541.7
21065 8931.97 18672.8 20011.8
19686.6 8236.42 18692.7 18702.3
19527.6 8286.18 18706.9 18551.2
19598.2 8253.58 18726.9 18618.3
20075.4 8490.84 18752.5 19071.6
19969.4 8453.18 18761.5 18970.9
18551.3 8417.1 18794.5 17623.7
17848.7 7822.25 18809.5 16956.3
18399.4 8106.76 18830.5 17479.4
"1998" 17336 7806.47 18858.2 16469.2
16462.6 7726.8 18879.9 15639.5
17089.2 8423.02 18901.6 16234.7
16880.3 8711.89 18910.9 16036.3
18266.5 8866.3 18932.5 17353.1
18931 9116.84 18964.8 17984.5
18532.3 8690.42 18984.7 17605.7
18722.2 8504.15 19004.5 17786.1
19234.8 8894.72 19024.4 18273.1
18741.2 8557.27 19044.7 17804.1
18912.1 8472.46 19059.2 17966.4
19519.7 8513.9 19079.5 18543.7
18893.1 8256.32 19099.8 17948.4
18950 8324.72 19126 18002.5
19045 8489.82 19146.3 18092.7
18741.2 8259.08 19166.7 17804.1
18361.4 8064.88 19184.2 17443.3
17886.7 7984.22 19207.7 16992.4
17260.1 7863.15 19228.3 16397.1
17222.1 7852.61 19240 16361
16918.3 7721.99 19263.6 16072.4
16329.7 7536.23 19281.2 15513.2
15304.3 7250.61 19298.8 14539.1
15057.5 7159.62 19330.8 14304.6
15152.4 7233.63 19345.4 14394.8
15646.1 7861.04 19365.9 14863.8
15798 7786.89 19386.6 15008.1
15722.1 7795.71 19407.2 14936
15722.1 7682.52 19427.9 14936
15152.4 7434.71 19448.6 14394.8
14810.6 7312.18 19469.2 14070.1
14064.9 6861.62 19489.8 13361.6
14147.4 7016.61 19510.5 13440
13879.3 6792.21 19531.1 13185.3
12827.5 6846.47 19551.7 12186.1
13095.6 6954.38 19572.4 12440.8
13054.4 6909.37 19593 12401.6
12415 6602.64 19613.6 11794.3
13178.1 6597.2 19634.2 12519.2
12951.2 7198.77 19654.1 12303.7
13508.1 7143.62 19673.9 12832.7
15364.1 7875.85 19693.7 14595.9
15446.6 7574.07 19713.4 14674.3
17034.6 8275.42 19733.1 16182.9
16601.5 7895.17 19752.8 15771.4
17096.5 8003.64 19772.4 16241.6
18003.9 8268.6 19792 17103.7
17735.8 8224.74 19811.8 16849
18065.8 8368.11 19832.7 17162.5
17407.3 8136.7 19853.6 16536.9
17621.9 8089.44 19874.5 16740.8
17579 8201.41 19895.4 16700.1
"1999" 17943.9 8202.76 19914.8 17046.7
17922.4 8139.26 19933.7 17026.3
18244.4 8386.67 19952.5 17332.2
17471.7 8372.37 19971.4 16598.1
16935.1 8450.98 19990.2 16088.3
16205.3 8173.71 20008.7 15395
16720.5 8065.44 20027.3 15884.4
17106.8 8057.58 20045.8 16251.5
17020.9 7985.55 20064.4 16169.9
18115.6 8694.33 20083 17209.8
18609.3 9250.17 20101.6 17678.8
18587.8 9070 20120.2 17658.4
18952.7 9262.15 20138.9 18005.1
19661 9528.78 20157.6 18678
20240.6 9826.11 20176.2 19228.5
20777.2 9652.59 20194.9 19738.3
21421.1 9950.33 20213.6 20350
22451.3 9790.51 20232.2 21328.8
22150.8 9847.05 20250.8 21043.3
21442.5 9200.01 20269.3 20370.4
21034.7 9333.53 20287.8 19983
21356.7 9550.73 20306.4 20288.8
22215.2 9832.51 20325.2 21104.5
22065 10007.4 20343.9 20961.7
23610.4 10063 20362.6 22429.9
23524.5 10152.1 20381.3 22348.3
24082.6 10445.2 20401.4 22878.5
24018.2 10621.6 20421.7 22817.3
23524.5 10764.8 20442 22348.3
22923.6 10587.6 20462.3 21777.4
23363.7 10814.9 20482.6 22195.5
22161.2 10339.9 20502.8 21053.1
22869.8 10943.8 20523.1 21726.3
23406.7 11099.7 20543.3 22236.3
23256.3 11161 20563.6 22093.5
23256.3 11050.6 20584.5 22093.5
23814.7 11717 20605.5 22623.9
22783.9 11387 20626.4 21644.7
22418.9 11024.8 20647.3 21297.9
23320.8 11293.8 20668.4 22154.7
23041.6 11299.5 20689.6 21889.5
22805.4 11294.7 20710.8 21665.1
23170.4 11475.8 20731.9 22011.9
24115.3 11716.4 20753 22909.5
25017.2 11913.1 20774.2 23766.3
25489.6 11988.2 20795.3 24215.2
26348.6 12334.1 20816.4 25031.2
26305.7 12294.9 20837.6 24990.4
27357.9 12311.9 20863.3 25990
27757.8 12269.5 20889 26369.9
29066.1 12727.5 20914.8 27612.8
30766.9 13063.5 20940.5 29228.5
29240.5 12496.3 20964.6 27778.5
28891.6 12348.1 20987.4 27447
27954 12263.7 21010.3 26556.3
28433.7 12372.2 21033.2 27012
28935.2 12444.6 21056.1 27488.5
28978.8 12614.7 21079.7 27529.9
28215.7 12270.2 21103.3 26804.9
27125.4 11929.1 21126.9 25769.2
27299.9 12489.5 21150.5 25934.9
26885.6 12328.8 21174.3 25541.3
26122.4 11926.9 21198.2 24816.3
26602.1 12187.6 21222 25272
27365.3 13001.3 21245.9 25997
26907.4 12828.9 21270.4 25562
27190.8 12813.9 21295.3 25831.3
25838.9 12258.5 21320.3 24547
26405.9 12389 21345.3 25085.6
26318.6 12414.3 21370.5 25002.7
25032.1 12068.9 21396.1 23780.5
24857.7 11891.2 21421.7 23614.8
23200.5 11463.3 21447.3 22040.5
23527.6 11479.5 21472.9 22351.2
25337.4 12189.3 21499.6 24070.5
24901.3 11896.1 21526.5 23656.2
25533.7 12290.9 21553.4 24257
25751.7 12312 21580.3 24464.1
25817.1 12367.3 21588 24526.3
NOTE:The graph compares the performance results of a hypothetical $10,000
investment in Class A and a comparable index. The performance of Class A is
shown after adjustment to reflect the maximum sales load, which is waived for
certain investors. The performance of the index does not reflect brokerage
commissions and other expenses that would be incurred to acquire a comparable
portfolio of securities.
-----------------
Sources used are the net asset value of the Fund which is computed daily, The
Financial Times and Morgan Stanley Capital International.
The MSCI Pacific Index is an arithmetical average weighted by market value of
the performance of some 410 securities listed on the stock exchanges of
Australia, Hong Kong, New Zealand, Singapore/Malaysia and Japan. The combined
market capitalization of these companies represents approximately 60% of the
aggregate market value of the stock exchanges of the above 5 countries. The
percentage change in the value of the index includes dividends reinvested.
<PAGE>
AVERAGE ANNUAL TOTAL RETURN - CLASS A
[Figures below represent bar chart in printed piece]
GAM
PACIFIC BASIN
GAM CLASS A MSCI
PACIFIC BASIN (AFTER MAXIMUM PACIFIC
CLASS A SALES LOAD OF 5%) INDEX
--------------------------------------------------------
1 Year 9.75 4.26 21.82
5 Years 1.37 0.34 2.63
10 Years 5.77 5.23 2.56
Since Inception 7.48 7.06 1.63
ANNUAL PERFORMANCE - CLASS A
[Figures below represent bar chart in printed piece]
GAM
PACIFIC BASIN
GAM CLASS A MSCI
PACIFIC BASIN (AFTER MAXIMUM PACIFIC
CLASS A SALES LOAD OF 5%) INDEX
--------------------------------------------------------
1996 (0.39) (5.37) (8.4)
1997 (30) (33.5) (25.34)
1998 (3.99) (8.79) 2.69
1999 74.91 66.16 57.96
2000 (16.44) (20.62) (5.95)
GAM
PACIFIC BASIN
GAM CLASS A MSCI
PACIFIC BASIN (AFTER MAXIMUM PACIFIC
CLASS A SALES LOAD OF 5%) INDEX
YEAR % % %
--------------------------------------------------------------------------------
1996 (0.39) (5.37) (8.40)
1997 (30.00) (33.50) (25.34)
1998 (3.99) (8.79) 2.69
1999 74.91 66.16 57.96
2000* (16.44) (20.62) (5.95)
* 6 months
14
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
THE FACTS - CLASS B SHARES
================================================================================
GAM
Pacific Basin Average
GAM Class B MSCI 1 Month
Pacific Basin (with deferred Pacific Deposit
Class B sales charge) Index Rate
30th June, 2000 US$12.40 2,330.30
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (6.13) (10.83) (5.56) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (16.72) (20.89) (5.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 8.94 3.94 21.82 5.92
--------------------------------------------------------------------------------
Since inception* 17.13 15.92 24.50 5.59
--------------------------------------------------------------------------------
================================================================================
THE FACTS - CLASS C SHARES
================================================================================
GAM
Pacific Basin Average
GAM Class C MSCI 1 Month
Pacific Basin (with deferred Pacific Deposit
Class C sales charge) Index Rate
30th June, 2000 US$10.97 2,330.30
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (6.24) (7.18) (5.56) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (16.96) (17.79) (5.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 8.60 7.60 21.82 5.92
--------------------------------------------------------------------------------
Since inception* 13.54 13.54 27.86 5.59
--------------------------------------------------------------------------------
================================================================================
THE FACTS - CLASS D SHARES
================================================================================
GAM
Pacific Basin
Class D (after Average
GAM maximum MSCI 1 Month
Pacific Basin sales load Pacific Deposit
Class D of 3.5%) Index Rate
30th June, 2000 US$11.61 US$12.03 2,330.30
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (6.22) (9.50) (5.56) 1.58
--------------------------------------------------------------------------------
Jan-June, 2000 (16.77) (19.69) (5.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 8.97 5.16 21.82 5.92
--------------------------------------------------------------------------------
2 years to June, 2000 28.20 25.94 27.27 5.59
--------------------------------------------------------------------------------
3 years to June, 2000 (4.29) (5.42) 2.01 5.64
--------------------------------------------------------------------------------
Since inception* (0.60) (1.35) 2.56 5.58
--------------------------------------------------------------------------------
================================================================================
* Inception was on 26th May, 1998 for Class B shares, 1st June, 1998 for Class C
shares and 18th October, 1995 for Class D shares.
THE COMMENT
The new millennium brought a sharp narrowing of the investment focus with
companies either directly involved or associated with the technology, media or
telecommunications (TMT) sectors seeing their share prices driven sharply higher
by both individual and institutional investors. Most other sectors experienced
selling pressure due to relatively poor sales growth and pressure on profit
margins. In both Hong Kong and Singapore, banks and property shares
underperformed as worries about further US interest rate increases reduced
prospects. Towards the end of March momentum on NASDAQ was finally broken
leading to a dramatic fall in both the index and share prices of many TMT
related businesses.
Recently in Japan the ruling LDP narrowly clung to power in the lower house
elections, but will now become even more reliant on the support of its coalition
partners. There is, however, likely to be little change to the country's
economic policy, with observers still looking for signs that the fragile
recovery can develop into a longer period of sustainable growth. The likelihood
is that there will be some success stories as a result of restructuring, but key
components of the economy, such as banking, are still a long way from operating
with a strong financial base. Foreigners having been buyers of Japanese equities
last year and the early months of 2000.
The Chinese economy appears to be entering a period of accelerating growth
with a strong upturn in exports and this is having a positive impact on Hong
Kong, where retail sales have recovered to record levels and demand for office
space is leading to higher rentals for the first time in three years. There is
still an overhang of new apartments in the residential sector, but if interest
rate worries subside, then major developers will offer attractive investment
opportunities.
In Singapore the MAS has introduced new regulations, which require the banks
to divest themselves of most of their non-banking businesses, such as property
and manufacturing. The effects of these changes will be most noticeable at OCBC,
but analysts agree that the revaluation of non-core assets will provide a
surplus over book values. Profits growth this year is still expected to be
generated by increases in fee based income and write-backs of provisions against
non-performing loans. An anticipated upturn in prices for residential property
has failed to materialise, but in common with the situation in Hong Kong, there
has been strong demand for office space leading to a recovery in rentals. At the
end of May, Malaysia was re-included in some of the Morgan Stanley indices, but
most international funds appear to be taking a wait and see approach.
The Fund has continued to reduce exposure to the Japanese market where many
of the technology companies had become overvalued and proceeds have been
utilized to add to positions such as SHK Properties, Cheung Kong and Swires in
Hong Kong. Quality of management and earnings growth/recovery at a reasonable
price remain key investment criteria and we have excluded both Malaysia and
Korea until the economic outlook for these two markets improves.
15
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
================================================================================
STATEMENT OF INVESTMENTS AS AT 30TH JUNE, 2000 (UNAUDITED)
MARKET
VALUE
HOLDINGS DESCRIPTION US$
-------------------------------------------------------------------
EQUITIES - 93.8%
AUSTRALIA - 5.4%
123,000 ERG 952,799
*180,000 Novus Petroleum 189,316
56,475 Rio Tinto (Australia) 931,581
----------
2,073,696
----------
CHINA - 5.7%
1,382,000 China Everbright 1,072,555
885,000 China Merchants 607,370
98,000 CITIC Pacific 514,169
----------
2,194,094
----------
HONG KONG - 25.5%
160,000 Cheung Kong Holdings 1,759,990
259,000 Henderson Land 1,139,593
1,079,779 Hong Kong & China Gas 1,218,915
737,000 Hong Kong Land Holdings 1,179,200
*63,000 Hutchison Whampoa 791,995
403,000 Kerry Properties 423,911
*580,000 Pacific Century Insurance Holdings 197,165
253,000 Sun Hung Kai Properties 1,817,459
218,500 Swire Pacific A 1,280,925
----------
9,809,153
----------
INDONESIA - 0.4%
*696,000 Mayorah Indah 41,748
*588,000 Modern Photo Film 107,489
----------
149,237
----------
JAPAN - 35.3%
7,300 Aiful 672,608
18,000 Canon 895,379
9,700 Fanuc 986,038
17,000 Fuji Photo Film 695,087
5,000 Jafco 814,923
54,000 Kokusai Securities 747,336
36,000 Mori Seiki 556,220
3,000 Murata Manufacturing 430,166
5,600 Nidec 485,374
31,000 Nomura Securities 757,878
20,500 ORIX 3,022,517
30,000 Ricoh 634,510
52,000 Sharp 918,555
1,260 Shohkoh Fund 283,706
*7,500 Trend Micro 1,236,516
7,000 Uni-Charm 423,383
----------
13,560,196
----------
PHILIPPINES - 2.0%
2,157,240 Ayala Land 274,331
236,520 Bank of Philippine Islands 426,556
*6,255,000 Cebu Holdings 86,775
----------
787,662
----------
SINGAPORE - 13.5%
127,351 DBS Group Holdings 1,636,580
437,250 DBS Land 566,970
185,000 Kim Eng Holdings 76,035
119,966 Overseas Chinese Bank 826,394
270,203 Overseas Union Bank 1,047,965
66,000 Singapore Press Holdings 1,031,548
----------
5,185,492
----------
TAIWAN - 3.6%
45,287 Compal Electronics GDR 554,766
*171,040 Taiwan Semiconductor 812,753
----------
1,367,519
----------
THAILAND - 2.4%
*244,000 Bangkok Bank (FR) 298,966
136,750 Post Publishing (FR) 102,104
*610,220 Thai Farmers Bank (FR) 514,034
----------
915,104
----------
TOTAL EQUITIES (COST $34,795,840) 36,042,153
----------
EQUITY WARRANTS - 0.0%
INDONESIA - 0.0%
*7,447 Bank Bali Wts August 2000 (FR) 1
----------
1
----------
THAILAND - 0.0%
*17,763 Thai Farmers Bank Wts
September 2002 (FR) 1,224
----------
1,224
----------
TOTAL EQUITY WARRANTS (COST $17,592) 1,225
----------
MUTUAL FUND - 2.7%
Taiwan - 2.7%
54,000 Taiwan Fund 1,032,750
----------
TOTAL MUTUAL FUND (COST $1,079,535) 1,032,750
----------
TIME DEPOSIT - 1.4%
UNITED STATES - 1.4%
$558,759 Citibank
6.00% 2000-07-03 558,759
----------
TOTAL TIME DEPOSIT (COST $558,759) 558,759
----------
TOTAL INVESTMENTS (COST $36,451,726**) - 97.9% 37,634,887
NET CURRENT ASSETS - 2.1% 798,234
----------
TOTAL NET ASSETS - 100.0% 38,433,121
==========
* Non-income producing security.
** Cost for federal income tax purposes is identical.
Glossary of Terms:
FR -- Foreign Registered
GDR -- Global Depositary Receipt
See notes to financial statements.
================================================================================
16
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
GEOGRAPHIC ANALYSIS AS AT
30TH JUNE, 2000
[Figures below represent pie chart in printed piece]
JAPAN 35.3%
HONG KONG 25.5%
SINGAPORE 13.5%
TAIWAN 6.3%
CHINA 5.7%
AUSTRALIA 5.4%
THAILAND 2.4%
PHILIPPINES 2.0%
INDONESIA 0.4%
NET CURRENT ASSETS 3.5%
INVESTMENT ANALYSIS AS AT
30TH JUNE, 2000
[Figures below represent pie chart in printed piece]
REAL ESTATE 18.9%
FINANCIAL SERVICES 16.6%
BANKING 12.4%
ELECTRONIC COMP & INSTRUMENTS 10.5%
MULTI-INDUSTRY 8.3%
DATA PROCESSING & REPRODUCTION 5.2%
UTILITIES/ELECTRICAL & GAS 3.2%
OTHER 21.4%
NET CURRENT ASSETS 3.5%
17
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
GAM JAPAN CAPITAL FUND
FUND MANAGEMENT
--------------------------------------------------------------------------------
[Photo omitted]
PAUL S. KIRKBY, INVESTMENT DIRECTOR, IS RESPONSIBLE FOR INVESTMENTS IN THE
JAPANESE MARKET. PRIOR TO JOINING GAMIN 1985, AS A SENIOR FUND MANAGER IN HONG
KONG, HE WAS AN INVESTMENT ANALYST WITH NEW JAPAN SECURITIES CO. LTD IN TOKYO.
HE COMMENCED MANAGEMENT OF GAMJAPAN CAPITAL FUND ON 1ST JULY, 1994. MR. KIRKBY
ALSO MANAGES THE OFFSHORE FUND GAMJAPAN INC. HE IS NOW BASED IN LONDON HAVING
LIVED IN HONG KONG FOR SEVEN YEARS.
The Fund's investment objective is to seek long-term capital appreciation,
generally through investment in equity securities issued by companies in Japan.
However, if the Fund determines that the long-term capital appreciation of debt
securities may equal or exceed the return on equity securities, it may be
substantially invested in debt securities of companies and governments, their
agencies and instrumentalities. Any income realized by the Fund on its
investments will be incidental to its goal of long-term capital appreciation.
Investments in securities of foreign issuers involve additional risks and
expenses including currency rate fluctuations, political and economic
instability, foreign taxes and different accounting and reporting standards.
REPORT TO SHAREHOLDERS
--------------------------------------------------------------------------------
THE FACTS - CLASS A SHARES
================================================================================
GAM
Japan Capital
Class A (after Tokyo Average
GAM maximum Stock 1 Month
Japan Capital sales load Exchange Deposit
Class A of 5%) Index Rate
30th June, 2000 US$12.59 US$13.25 (Y)1,591.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (5.97) (10.68) (9.42) 1.58
--------------------------------------------------------------------------------
Jan-June, 2000 (9.10) (13.64) (10.34) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 32.73 26.09 29.35 5.92
--------------------------------------------------------------------------------
3 years to June, 2000 11.04 9.16 4.34 5.64
--------------------------------------------------------------------------------
5 years to June, 2000 14.68 13.51 2.12 5.61
--------------------------------------------------------------------------------
Since inception 8.74 7.81 (1.07) 5.60
--------------------------------------------------------------------------------
================================================================================
Performance is calculated on a total return basis. Class A inception was on
1st July 1994, Class B on 26th May, 1998 and Class C on 19th May, 1998. Past
performance is not necessarily indicative of future performance. The investment
return and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
18
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
[Figures below represent line chart in printed piece]
GAM
JAPAN CAPITAL
CLASS A
(AFTER
TOKYO AVERAGE MAXIMUM
GAM STOCK 1 MONTH SALES
JAPAN CAPITAL EXCHANGE DEPOSIT LOAD
CLASS A INDEX RATE OF 5%)
-------------- -------- ------- -------------
"1994" 10000 10000 10000 10000
10000 10006.9 10008.5 9500
10000 10122.6 10017 9500
10004 9856.28 10025.5 9503.8
10017 9711.86 10034 9516.15
10009 9756.06 10042.5 9508.55
10003 9817.88 10051 9502.85
10013 9922.15 10059.4 9512.35
9960 9696.18 10067.8 9462
10005 9817 10076.3 9504.75
9860 9504.38 10085.4 9367
9758 9482.71 10094.6 9270.1
9797 9644.4 10103.8 9307.15
9733 9478.49 10113 9246.35
9684 9368.23 10122.2 9199.8
9787 9645.28 10131.7 9297.65
9761 9688.08 10141.3 9272.95
9676 9584.51 10150.9 9192.2
9679 9555.81 10160.5 9195.05
9512 9268.19 10170.1 9036.4
9494 9208.13 10179.7 9019.3
9305 8949.22 10189.3 8839.75
9373 8993.61 10199 8904.35
9324 8958.03 10210.6 8857.8
9267 8975.29 10222.2 8803.65
9473 9188.58 10233.8 8999.35
9623 9313.81 10245.4 9141.85
"1995" 9481 9037.11 10257 9006.95
9449 9148.25 10268.6 8976.55
9143 8775.21 10280.2 8685.85
8911 8502.39 10291.7 8465.45
8791 8667.42 10303.3 8351.45
8707 8601.02 10315 8271.65
8534 8571.25 10326.7 8107.3
8482 8410.8 10338.5 8057.9
8419 8630.43 10350.2 7998.05
8206 8655.62 10362.1 7795.7
8526 8635.89 10374 8099.7
8265 8343.17 10385.9 7851.75
8573 9040.81 10397.8 8144.35
8593 9006.29 10409.8 8163.35
8693 9238.07 10421.7 8258.35
8770 9666.94 10433.7 8331.5
8670 9473.55 10445.7 8236.5
8771 9613.05 10457.7 8332.45
8536 9086.25 10469.6 8109.2
8467 8882.47 10481.5 8043.65
8355 9136.62 10493.4 7937.25
8406 9086.25 10505.3 7985.7
8310 8689.96 10517.3 7894.5
8263 8520.18 10529.2 7849.85
8492 8737.69 10541.2 8067.4
8333 8439.16 10553.1 7916.35
8491 8963.66 10565.1 8066.45
8803 9002.06 10577.3 8362.85
8771 8902.02 10589.4 8332.45
8844 9024.25 10601.6 8401.8
9098 8810.26 10613.7 8643.1
9267 8625.5 10625.3 8803.65
9577 8864.86 10636.9 9098.15
9512.37 8746.15 10648.5 9036.75
9708.97 8769.4 10660 9223.52
9693.84 8633.43 10671.8 9209.15
9776.52 8568.26 10683.5 9287.69
9497.24 8582.35 10695.3 9022.38
9798.7 8744.39 10707.1 9308.76
9823.9 8743.15 10718.8 9332.71
9667.63 8493.93 10730.5 9184.25
9781.56 8670.59 10742.2 9292.48
9572.86 8193.81 10753.9 9094.22
9616.21 8311.99 10765.6 9135.4
9735.18 8491.47 10777.2 9248.42
9575.88 8451.49 10788.8 9097.09
9535.56 8544.83 10800.4 9058.78
9817.85 8877.01 10812 9326.96
10035.6 9061.42 10823.8 9533.84
9918.67 9008.23 10835.6 9422.74
10122.3 9195.8 10847.4 9616.21
10233.2 9191.22 10859.2 9721.57
"1996" 10485.3 9353.61 10871 9961.02
10344.1 9108.27 10882.5 9826.93
10344.1 9049.79 10893.9 9826.93
10324 9002.24 10905.4 9807.77
10434.9 9117.95 10916.9 9913.13
10424.8 9111.61 10927.9 9903.55
10374.4 9157.58 10938.8 9855.66
10182.8 8995.54 10949.8 9673.68
10102.2 8927.91 10960.8 9597.06
9940.85 8779.08 10971.6 9443.81
9890.44 8821.88 10982.4 9395.92
10203 8936.89 10993.2 9692.83
10586.1 9226.45 11003.9 10056.8
10606.3 9293.73 11014.7 10076
10727.2 9266.08 11025.7 10190.9
10797.8 9455.41 11036.6 10257.9
11090.2 9787.41 11047.6 10535.7
10989.4 9696.71 11058.5 10439.9
10818 9481.48 11069.5 10277.1
10959.1 9516.53 11080.5 10411.2
10828.1 9316.1 11091.5 10286.7
10908.7 9369.64 11102.5 10363.3
10838.2 9173.79 11113.5 10296.2
10949 9426.88 11124.6 10401.6
11100.3 9457.7 11135.7 10545.3
11201.1 9414.73 11146.7 10641
11160.8 9194.57 11157.8 10602.7
10979.3 8978.46 11169 10430.3
10868.4 9088.36 11180.2 10325
10626.4 8933.55 11191.5 10095.1
10697 9016.15 11202.7 10162.2
10555.8 8749.49 11214 10028.1
10654 8866.27 11225.3 10121.3
10684.5 8944.29 11236.5 10150.2
10410 8580.76 11247.8 9889.48
10399.8 8537.79 11259.1 9879.83
10501.5 8617.93 11270.4 9976.4
10552.3 8760.06 11270.4 10024.7
10704.8 8843.72 11297.7 10169.6
10552.3 8630.61 11304.2 10024.7
10471 8508.2 11315.6 9947.43
10633.6 8671.29 11326.9 10102
10338.8 8304.24 11338.3 9821.88
10318.5 8289.45 11349.7 9802.57
10410 8545.36 11360.7 9889.48
10450.7 8516.65 11371.7 9928.12
10471 8556.28 11382.8 9947.43
10389.7 8306.36 11393.8 9870.17
10328.7 8142.21 11404.8 9812.22
10328.7 7983.16 11416.4 9812.22
10166 7822.36 11428 9657.7
10247.7 7690.61 11439.7 9735.27
"1997" 10236.7 7662.43 11451.3 9724.89
9777.88 6983.11 11463 9288.98
9832.5 7177.2 11474.8 9340.88
9745.1 6895.05 11486.5 9257.85
9963.6 6847.84 11498.2 9465.42
9843.43 6519.72 11510 9351.25
10171.2 6780.56 11521.8 9662.62
10083.8 7031.9 11533.6 9579.59
9985.45 6983.46 11545.3 9486.18
9810.65 6772.11 11557.1 9320.12
9745.1 6651.11 11568.9 9257.85
9887.13 6907.02 11580.7 9392.77
10094.7 6750.44 11592.5 9589.97
10214.9 6693.73 11604.2 9704.13
10105.6 6428.48 11616.6 9600.34
10204 6679.11 11629 9693.75
10553.5 6794.83 11641.4 10025.9
10881.3 7028.55 11653.8 10337.2
11165.3 7372.88 11666.2 10607.1
11438.5 7914.47 11678.6 10866.5
11318.3 7840.32 11691.1 10752.4
11657 7749.44 11703.5 11074.1
11842.7 7948.99 11715.9 11250.6
11984.7 8105.22 11728.4 11385.5
12061.2 8108.92 11740.9 11458.1
12072.1 8205.08 11753.4 11468.5
12028.4 8103.46 11765.9 11427
12148.6 8046.04 11778.4 11541.2
12214.2 8101.7 11790.9 11603.4
12257.8 8041.28 11803.4 11645
12323.4 7792.77 11815.8 11707.2
12268.8 7890.17 11828.3 11655.3
12236 7803.86 11840.8 11624.2
11763.4 7543.9 11853.2 11175.2
11152.4 7223.52 11865.7 10594.8
11363.5 7253.82 11878.2 10795.3
11074.7 7036.48 11890.8 10520.9
11063.6 6944.89 11903.3 10510.4
11063.6 7007.94 11916 10510.4
11152.4 6864.4 11928.6 10594.8
11230.2 6901.91 11941.3 10668.7
11196.9 6901.56 11954 10637
10908.1 6690.03 11966.7 10362.7
10552.6 6470.75 11979.5 10025
10397.1 6052.63 11992.2 9877.23
9875.01 5648.59 12005 9381.26
10463.7 6166.93 12017.8 9940.55
10252.7 5983.23 12030.6 9740.05
10241.6 5795.3 12043.3 9729.5
10130.5 5612.13 12056.8 9623.97
9982.81 5522.48 12070.3 9483.67
9923.6 5360.8 12083.8 9427.42
"1998" 9982.81 5419.8 12097.3 9483.67
10148.6 5334.03 12111.3 9641.16
10255.2 5688.39 12125.2 9742.41
10456.5 6056.5 12139.1 9933.66
10456.5 6105.47 12153 9933.66
10444.6 6317.52 12166.9 9922.41
10361.8 6240.91 12179.7 9843.66
10219.7 6039.77 12192.5 9708.66
10385.4 6156.37 12205.2 9866.16
10444.6 6158.66 12218 9922.41
10172.3 6087.32 12231 9663.66
10006.5 5884.78 12244.1 9506.17
10219.7 5905.91 12257.1 9708.66
10148.6 5375.06 12270.1 9641.16
10255.2 5886.01 12283.2 9742.41
10243.3 5634.85 12296.3 9731.16
10338.1 5787.2 12309.4 9821.16
10255.2 5602.62 12322.5 9742.41
10113.1 5484.79 12335.7 9607.41
10196 5512.44 12348.9 9686.16
10101.2 5552.25 12362.1 9596.16
9982.81 5400.07 12375.4 9483.67
9899.91 5276.96 12388.6 9404.92
9888.07 5002.73 12401.7 9393.67
9769.65 5433.19 12414.8 9281.17
9734.12 5114.57 12427.9 9247.42
10006.5 5579.72 12441.1 9506.17
9994.65 5400.43 12454.4 9494.92
10207.8 5615.13 12467.6 9697.41
10148.6 5479.68 12480.9 9641.16
10006.5 5363.26 12494.2 9506.17
9959.12 5156.67 12507.4 9461.17
9694.68 4928.76 12520.7 9209.94
9732.8 4972.61 12533.9 9246.16
9402.44 4658.4 12547.2 8932.32
9364.32 5003.26 12560.5 8896.11
9199.14 5022.28 12573.7 8739.19
9161.03 4963.98 12586.9 8702.97
9084.79 4765.84 12600.2 8630.55
8894.2 4626.7 12613.3 8449.49
8716.32 5161.24 12626 8280.5
8919.61 5346.53 12638.7 8473.63
9110.2 5564.4 12651.4 8654.69
9008.55 5472.81 12664.1 8558.13
9300.79 5671.66 12676.8 8835.75
9173.73 5511.39 12689.4 8715.05
9440.56 5793.68 12702 8968.53
9631.15 5803.71 12714.6 9149.59
9529.5 5828.07 12727.5 9053.03
9643.85 5889.95 12740.9 9161.66
9631.15 5873.07 12754.4 9149.59
9504.09 5752.19 12767.8 9028.88
"1999" 9720.09 5944.02 12781.2 9234.09
9580.32 5859.28 12793.3 9101.31
9453.26 5799.26 12805.4 8980.6
9580.32 5934.12 12817.5 9101.31
9605.74 5973.46 12829.6 9125.45
9529.5 5928.77 12841.6 9053.03
9478.68 5885.92 12853.5 9004.74
9313.5 5608.52 12865.5 8847.82
9554.91 5831.28 12877.4 9077.17
9593.03 5794.66 12889.3 9113.38
10050.5 6198.3 12901.3 9547.92
10533.3 6700.5 12913.2 10006.6
10647.6 6525.77 12925.2 10115.2
10914.5 6687.08 12937.2 10368.7
11168.6 6857.19 12949.2 10610.2
11232.1 7032.43 12961.2 10670.5
11092.3 6918.39 12973.2 10537.7
11143.2 6929.78 12985.2 10586
11232.1 7014.17 12997.1 10670.5
11003.4 6830.9 13009 10453.2
10901.8 6541.35 13020.9 10356.7
10927.2 6619.44 13032.8 10380.8
11130.5 6691 13044.8 10573.9
11791.2 7238.92 13056.8 11201.6
12045.3 7162.33 13068.8 11443
12261.3 7186.63 13080.9 11648.2
12909.3 7463.55 13093 12263.8
12858.5 7413.88 13106.1 12215.5
13531.9 7720.26 13119.1 12855.3
12960.1 7648.01 13132.1 12312.1
13481.1 7986.26 13145.2 12807
13087.2 7690.14 13158.2 12432.8
13163.4 7715.21 13171.2 12505.2
13862.2 8343.75 13184.2 13169.1
13709.8 8206.41 13197.2 13024.3
14535.7 8425.07 13210.3 13808.9
15005.8 8649.02 13223.8 14255.5
14967.7 8712.31 13237.2 14219.3
14700.8 8530.14 13250.7 13965.8
15361.6 8945.34 13264.1 14593.5
15221.8 8845.35 13277.7 14460.7
15158.3 8875.11 13291.3 14400.3
15221.8 8878.45 13304.9 14460.7
15730 9301.89 13318.5 14943.5
16123.9 9323.18 13332 15317.7
16301.8 9402.24 13345.6 15486.7
16212.9 9609.41 13359.2 15402.2
17216.6 10161.2 13372.8 16355.8
16543.2 9770.12 13387.2 15716
16835.4 9859.7 13403.7 15993.7
17025.7 9820.7 13420.2 16174.4
17393.3 10194 13436.8 16523.6
18180.9 10454.8 13453.3 17271.8
16474.4 9423.03 13468.2 15650.7
16868.2 9661.93 13482.9 16024.8
16736.9 9643.48 13497.6 15900.1
17052 10016 13512.3 16199.4
17511.4 10086 13527.2 16635.8
17222.6 9873.09 13542.3 16361.5
16855.1 9652.14 13557.4 16012.3
16750.1 9666.29 13572.6 15912.6
17025.7 9750.5 13587.8 16174.4
16723.8 9555.04 13603.1 15887.6
16828.8 9815.87 13618.4 15987.4
16382.5 9528.24 13633.7 15563.4
17577.1 10349.2 13649 16698.2
17012.6 9908.51 13665 16162
16658.2 9814.84 13681 15825.2
16382.5 9652.67 13697.1 15563.4
16435 9497.42 13713.1 15613.2
16881.3 9760.03 13729.4 16037.3
16395.6 9332.31 13745.9 15575.8
16120 9192.61 13762.3 15314
15581.8 8844.88 13778.8 14802.7
15909.9 8964.94 13795.3 15114.4
16198.7 9248.18 13812.6 15388.8
15726.2 8827.89 13829.9 14939.8
16408.8 9305.88 13847.1 15588.3
16526.9 9373.92 13864.4 15700.6
NOTE:The graph compares the performance results of a hypothetical $10,000
investment in Class A and a comparable index. The performance of Class A is
shown after adjustment to reflect the maximum sales load, which is waived for
certain investors. The performance of the index does not reflect brokerage
commissions and other expenses that would be incurred to acquire a comparable
portfolio of securities.
---------------
Sources used are the net asset value of the Fund which is computed daily, The
Financial Times and Datastream.
The Tokyo Stock Exchange Index (TOPIX) is a capitalization-weighted composite
index of approximately 1,200 companies listed on the First Section of the Tokyo
Stock Exchange. The combined market capitalization of these companies represents
approximately 95% of the aggregate market value of the First and Second Section.
The percentage change in the value of the index includes dividends reinvested.
<PAGE>
AVERAGE ANNUAL TOTAL RETURN - CLASS A
[Figures below represent bar chart in printed piece]
GAM
JAPAN CAPITAL
CLASS A
(AFTER
MAXIMUM TOKYO
GAM SALES STOCK
JAPAN CAPITAL LOAD EXCHANGE
CLASS A OF 5%) INDEX
-------------- ------- -------------
1 Year 32.73 26.09 29.35
3 Years 11.04 9.16 4.34
5 Years 14.68 13.51 2.12
Since Inception 8.74 7.81 (1.07)
ANNUAL PERFORMANCE - CLASS A
[Figures below represent bar chart in printed piece]
GAM
JAPAN CAPITAL
CLASS A
(AFTER
MAXIMUM TOKYO
GAM SALES STOCK
JAPAN CAPITAL LOAD EXCHANGE
CLASS A OF 5%) INDEX
YEAR % % %
---- -------------- ------- ----------
1996 0.15 (4.85) (16.55)
1997 (2.58) (7.44 (28.09)
1998 (2.75) (7.61) 7.77
1999 87.05 77.71 75.89
2000* (9.1) (13.64) (10.34)
GAM
JAPAN CAPITAL
GAM CLASS A TOKYO STOCK
JAPAN CAPITAL (AFTER MAXIMUM EXCHANGE
CLASS A SALES LOAD OF 5%) INDEX
YEAR % % %
--------------------------------------------------------------------------------
1996 0.15 (4.85) (16.55)
1997 (2.58) (7.44) (28.09)
1998 (2.75) (7.61) 7.77
1999 87.05 77.71 75.89
2000* (9.10) (13.64) (10.34)
*6 months
19
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
THE FACTS - CLASS B SHARES
================================================================================
GAM
Japan Capital Tokyo Average
GAM Class B Stock 1 Month
Japan Capital (with deferred Exchange Deposit
Class B sales charge) Index Rate
30th June, 2000 US$13.08 (Y)1,591.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (6.17) (10.86) (9.42) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (9.48) (14.01) (10.34) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 31.25 26.25 29.35 5.92
--------------------------------------------------------------------------------
Since inception* 24.20 23.06 29.26 5.59
--------------------------------------------------------------------------------
================================================================================
THE FACTS - CLASS C SHARES
================================================================================
GAM
Japan Capital Tokyo Average
GAM Class C Stock 1 Month
Japan Capital (with deferred Exchange Deposit
Class C sales charge) Index Rate
30th June, 2000 US$13.25 (Y)1,591.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (6.23) (7.17) (9.42) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 (9.56) (10.46) (10.34) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 31.59 30.59 29.35 5.92
--------------------------------------------------------------------------------
Since inception* 23.85 23.85 28.77 5.59
--------------------------------------------------------------------------------
================================================================================
* Inception was on 26th May, 1998 for Class B shares and 19th May, 1998 for
Class C shares.
THE COMMENT
The TS index having last year put in the strongest
performance since 1972 fell modestly in the first half of this year, weighed
down by the performance of technology shares which had led the market in the
second half of 1999. Despite being down, in the case of the Fund slightly less
than the index, we see no reason to change our medium-term bullish case for
Japan. The profits improvement that we are expecting is largely dependent on
bottom up changes at the micro or company level. Last fiscal year, ending in
March, non-financial company profits grew by 26% despite a fall in revenues. A
further 21% profit growth is expected this year. Although economic conditions
have in our view improved, with capital expenditure stabilizing, we think it
will be some time before the economy grows strongly. This should not be
surprising during the early part of the restructuring process nor should it
disturb our view of stockmarket prospects - the US experience when restructuring
began in the early 1990s was not greatly dissimilar. However therein lies the
risk. Many investors have bought Japan heavily over the last 12 months in the
hope of an early economic recovery. Foreign investors sold the market heavily
during April and May after 14 months of buying. Once expectations have become
more realistic we would expect the market to start to rally again.
In the first half, as technology shares corrected, the leading performers in
the market were to be found in cyclical shares, an area that we have long
underweighted in the Fund. Not only are such stocks invariably overpriced on
recovery earnings, but they tend to be over-owned by banks and older Japanese
companies who are under constant pressure to reduce their balance sheets, with
the result that supply pressure on the shares is heavy. As expectations for the
recovery get scaled back, we expect cyclical stocks to correct again by which
time growth stocks are likely to resume outperformance. We are still in the
growth stock camp on Japan though as always reluctant to overpay for the growth.
We remain heavily exposed to technology shares though, having sharply cut back
on software and internet shares since late 1999 and in the first quarter of this
year because of our concerns about valuations, the bulk of our exposure is in
component and hardware manufacturers. In total, exposure to this group
represents approximately 40% of the Fund. Another large exposure area remains in
the financials group that represents approximately 25% of the Fund. Non-bank
financials and stock brokerage companies we believe represent an excellent way
to play the recovery of the financial system while avoiding the risks that many
of the large banks face of disintermediation as companies seek alternative means
of finance.
The Fund continues to be fully exposed to the yen.
20
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
================================================================================
STATEMENT OF INVESTMENTS AS AT 30TH JUNE, 2000 (UNAUDITED)
MARKET
VALUE
HOLDINGS DESCRIPTION US$
-------------------------------------------------------------------
CONVERTIBLES - 1.4%
FINANCIAL SERVICES - 1.4%
65,000,000 Kokusai Securities 0.25% Cnv
2014-09-30 655,236
----------
TOTAL CONVERTIBLES (COST $632,929) 655,236
----------
EQUITIES - 89.3%
APPLIANCES & HOUSEHOLD DURABLES - 5.9%
56,000 Matsushita Electric Industrial 1,450,846
11,000 Pioneer Electronic 427,999
10,400 Sony 969,994
----------
2,848,839
----------
AUTOMOBILES - 1.1%
43,000 Suzuki Motor 554,185
----------
554,185
----------
BANKING - 3.2%
87,000 Bank of Fukuoka 591,775
102,000 Bank of Kyoto 521,796
51,000 Shizuoka Bank 432,427
----------
1,545,998
----------
BROADCASTING & PUBLISHING - 0.6%
5,000 Nippon Broadcasting System 307,598
----------
307,598
----------
BUSINESS & PUBLIC SERVICES - 4.4%
24,000 Canon Sales 429,601
1,200 OBIC 542,654
12,700 Sanix 670,027
7,000 Secom 511,093
----------
2,153,375
----------
CHEMICALS - 1.4%
13,000 Shin-Etsu Chemical 658,910
----------
658,910
----------
CONSTRUCTION & HOUSING - 3.5%
70,800 Daito Trust Construction 1,167,271
72,000 Daiwa House Industry 525,018
----------
1,692,289
----------
DATA PROCESSING & REPRODUCTION - 6.1%
28,000 Canon 1,392,812
3,200 Fujitsu Support and Service 316,548
5,800 Nidec 502,708
1,100 Nippon Systems Development 106,741
31,000 Ricoh 655,660
----------
2,974,469
----------
ELECTRICAL & ELECTRONICS - 2.8%
35,000 Hitachi 504,499
80,000 Mitsubishi Electric 865,232
---------
1,369,731
---------
ELECTRONIC COMP. & INSTRUMENTS - 9.8%
32,000 Koito Manufacturing 182,392
11,000 Mitsumi Electric 404,164
4,800 Rohm 1,401,856
11,000 TDK 1,579,349
5,000 Tokyo Electron 683,970
*3,000 Trend Micro 494,606
----------
4,746,337
----------
FINANCIAL SERVICES - 17.9%
75,000 The 77 Bank 599,180
50,600 Credit Saison 1,172,698
79,000 Daiwa Securities 1,041,971
4,000 Jafco 651,938
54,000 Kokusai Securities 747,336
125,000 Nikko Securities 1,236,516
21,500 ORIX 3,169,956
510 Shohkoh Fund 114,834
----------
8,734,429
----------
FOOD & HOUSEHOLD PRODUCTS - 2.1%
9,900 Matsumotokiyoshi 1,037,147
----------
1,037,147
----------
FOREST PRODUCTS & PAPER - 0.6%
11,800 Toppan Forms 279,033
----------
279,033
----------
HEALTH & PERSONAL CARE - 10.3%
44,000 Chugai Pharmaceutical 831,127
32,000 Eisai 1,025,013
6,000 Fancl 570,352
8,000 Kissei Pharmaceutical 154,505
9,500 Sawai Pharmaceutical 126,195
11,000 Towa Pharmaceutical 90,160
12,000 Uni-Charm 725,800
27,000 Yamanouchi Pharmaceutical 1,472,797
----------
4,995,949
----------
INDUSTRIAL COMPONENTS - 3.0%
60,000 Minebea 751,802
35,000 Sumitomo Electric Industries 599,463
7,000 Sumitomo Special Metals 97,998
----------
1,449,263
----------
INSURANCE - 2.8%
202,000 Mitsui Marine & Fire Insurance 970,559
132,000 Nissan Fire & Marine Insurance 379,293
----------
1,349,852
----------
MACHINERY & ENGINEERING - 2.4%
52,000 Kurita Water Industries 1,143,907
----------
1,143,907
----------
MERCHANDISING - 2.1%
10 Circle K Japan 363
25,400 Deo Deo 226,134
6,200 FamilyMart 238,315
3,500 Ryohin Keikaku 445,146
5,800 Shimachu 122,945
----------
1,032,903
----------
================================================================================
21
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
================================================================================
MARKET
VALUE
HOLDINGS DESCRIPTION US$
-------------------------------------------------------------------
REAL ESTATE - 1.0%
7,600 Sumitomo Real Estate Sales 254,180
2,000 Tachihi Enterprise 43,337
31,000 TOC 207,358
----------
504,875
----------
RECREATION & OTHER CONSUMER GOODS - 3.4%
29,000 Fuji Photo Film 1,185,736
14,400 Noritsu Koki 488,389
----------
1,674,125
----------
TELECOMMUNICATIONS - 4.5%
14 Japan Telecom 606,717
78 Nippon Telegraph and Telephone 1,036,130
21 NTT DoCoMo 567,808
----------
2,210,655
----------
TEXTILES & APPAREL - 0.4%
21,000 Tokyo Style 197,843
----------
197,843
----------
UTILITIES - ELECTRIC & GAS - 0.0%
1,000 Okinawa Electric Power 18,428
----------
18,428
----------
TOTAL EQUITIES (COST $38,325,342) 43,480,140
----------
PREFERRED SHARES - 0.8%
BANKING - 0.8%
Sanwa International 1.25% Cnv Pfd
42,000,000 2005-08-01 395,685
----------
TOTAL PREFERRED SHARES (COST $361,987) 395,685
----------
TIME DEPOSIT - 0.6%
UNITED STATES - 0.6%
$308,410 Citibank
6.00% 2000-07-03 308,410
----------
TOTAL TIME DEPOSIT (COST $308,410) 308,410
----------
TOTAL INVESTMENTS (COST $39,628,668**) - 92.1% 44,839,471
NET CURRENT ASSETS - 7.9% 3,840,783
----------
TOTAL NET ASSETS - 100.0% 48,680,254
==========
* Non-income producing security.
** Cost for federal income tax purposes is identical.
See notes to financial statements.
================================================================================
22
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
GAM EUROPE FUND
FUND MANAGEMENT
--------------------------------------------------------------------------------
[Photo omitted]
JOHN BENNETT, INVESTMENT DIRECTOR, IS RESPONSIBLE FOR EUROPEAN MARKETS. PRIOR TO
JOINING GAM IN 1993, HE WAS A SENIOR FUND MANAGER AT IVORY & SIME, RESPONSIBLE
FOR CONTINENTAL EUROPEAN EQUITY PORTFOLIOS. HE COMMENCED MANAGEMENT OF GAM
EUROPE FUND ON 1ST JANUARY, 1993. MR. BENNETT ALSO MANAGES THE OFFSHORE FUND GAM
PAN EUROPEAN INC. HE IS BASED IN LONDON.
The Fund's investment objective is to seek long-term capital appreciation,
generally through investment in equity securities issued by companies in Europe.
However, if the Fund determines that the long-term capital appreciation of debt
securities may equal or exceed the return on equity securities, it may be
substantially invested in debt securities of companies and governments, their
agencies and instrumentalities. Any income realized by the Fund on its
investments will be incidental to its goal of long-term capital appreciation.
Investments in securities of foreign issuers involve additional risks and
expenses including currency rate fluctuations, political and economic
instability, foreign taxes and different accounting and reporting standards.
REPORT TO SHAREHOLDERS
--------------------------------------------------------------------------------
THE FACTS - CLASS A SHARES
================================================================================
GAM
Europe
Class A (after Average
GAM maximum MSCI 1 Month
Europe sales load Europe Deposit
Class A of 5%) Index Rate
30th June, 2000 US$14.34 US$15.09 1,468.66
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (6.94) (11.60) (3.09) 1.58
--------------------------------------------------------------------------------
Jan-June, 2000 9.63 4.15 (2.95) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 39.44 32.46 15.42 5.92
--------------------------------------------------------------------------------
3 years to June, 2000 15.26 13.31 16.42 5.64
--------------------------------------------------------------------------------
5 years to June, 2000 18.30 17.10 18.84 5.61
--------------------------------------------------------------------------------
Since inception 8.70 8.17 13.51 5.42
--------------------------------------------------------------------------------
================================================================================
Performance is calculated on a total return basis. Class A inception was on
1st January 1990, Class B on 26th May, 1998 and Class C on 20th May, 1998. Past
performance is not necessarily indicative of future performance. The investment
return and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
23
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
[Figures below represent line chart in printed piece]
GAM
EUROPE
CLASS A
(AFTER
AVERAGE MAXIMUM
GAM MSCI 1 MONTH SALES
EUROPE EUROPE DEPOSIT LOAD
CLASS A INDEX RATE OF 5%)
------- ------- ------- --------
"1990" 10000 10000 10000 10000
10002 10275 10009.5 9501.9
9984 10139.1 10025.5 9484.8
9680 9748.57 10050.8 9196
9715 9988.52 10057.7 9229.25
10099 10277.8 10073.8 9594.05
9930 9992.54 10089.6 9433.5
10103 10045.4 10105.4 9597.85
9908.06 9683.9 10121.2 9412.66
10048 9672.75 10137 9545.6
10168 9639.52 10153.1 9659.6
10324 9846.59 10169.1 9807.8
10308 9828.64 10192 9792.6
10300 9739.98 10208.1 9785
10363 9941.28 10217.2 9844.85
10332 9973.32 10233.6 9815.4
10158 9791.55 10250 9650.1
10200 9642.67 10266.5 9690
10409 10105.3 10282.9 9888.55
10444 10278.4 10299.6 9921.8
10572 10342.1 10316.4 10043.4
10530 10334 10333.1 10003.5
10459 10450.5 10359.3 9936.05
10340 10351.6 10366.3 9823
10518 10459.5 10382.7 9992.1
10591 10742.4 10406.1 10061.5
10820 10882 10422.4 10279
10777 10993.6 10443.5 10238.1
10755 11133.6 10448.2 10217.2
10906 11117.1 10464.5 10360.7
10874 11117.9 10480.9 10330.3
10203 10618.2 10497.3 9692.85
10009 10491.7 10524.5 9508.55
9658 10227.7 10529 9175.1
9660 10227.9 10556.2 9177
9359 10058.6 10560.7 8891.05
9346 9938.37 10576.6 8878.7
9306 9824.65 10599.6 8840.7
9061 9166.49 10615.7 8607.95
8993 9317.26 10631.8 8543.35
9020 10020.8 10641 8569
8870 9803.47 10657.7 8426.5
8961 9964.54 10674.4 8512.95
8856 9846.78 10691.1 8413.2
8953 9812.89 10714.7 8505.35
8920 9793.33 10723.9 8474
8801 10027.5 10749.1 8360.95
8594 9948.37 10756 8164.3
8364 9920.5 10772 7945.8
8570 10307 10788 8141.5
8416 9990.44 10805.9 7995.2
8105 9490.51 10831.4 7699.75
8393 9708.71 10849.2 7973.35
"1991" 8216 9387.77 10859.4 7805.2
8172 9148.61 10875 7763.4
8341 9641.4 10890.6 7923.95
8299 9836.85 10906.3 7884.05
8508 10200.3 10921.9 8082.6
8696 10752.3 10936.2 8261.2
8568 10923.1 10960.6 8139.6
8447 10935.6 10964.7 8024.65
8264 10781.8 10987.2 7850.8
8283 10875.6 10993.4 7868.85
8190 10646.9 11007.9 7780.5
8037 10199.1 11028.6 7635.15
8212 10230.6 11043.1 7801.4
8279 10542.8 11051.4 7865.05
8345 10687.7 11064.6 7927.75
7944 10014.2 11083.5 7546.8
7895 9941.99 11091.1 7500.25
7945 10145 11104.3 7547.75
7946 10228.6 11116.9 7548.7
7968 10107.1 11129.4 7569.6
7972 10361.5 11141.9 7573.4
8007 10312.3 11159.7 7606.65
7911 10163.7 11166.9 7515.45
7883 9951.08 11179.3 7488.85
7755 9802.46 11197.1 7367.25
7722 9597.92 11209.6 7335.9
7666 9544.09 11216.7 7282.7
7715 9860.44 11229.5 7329.25
7767 10089 11242.2 7378.65
7751 10131 11262.3 7363.45
7757 10312.4 11267.8 7369.15
7715 10233.2 11280.3 7329.25
7133 9361.96 11292.9 6776.35
7633 10289.1 11305.5 7251.35
7702 10440.7 11318 7316.9
7978 10608.3 11335.8 7579.1
8010 10627.3 11347.8 7609.5
7995 10612.2 11359.9 7595.25
7942 10704.7 11372 7544.9
7906 10493.2 11378.9 7510.7
7795 10297.8 11390.5 7405.25
7817 10376.7 11407.1 7426.15
7660 10227.1 11413.7 7277
8051 10632.6 11430 7648.45
8056 10698.9 11436.3 7653.2
8080 10674.4 11447.2 7676
8016 10540 11458.2 7615.2
7817 10248.9 11469.1 7426.15
7930 10391.4 11484.9 7533.5
7912 10492.6 11491.2 7516.4
8231 10560.6 11508.7 7819.45
8318.2 10878.9 11518.3 7902.29
"1992" 8428.99 11173.5 11524.7 8007.54
8250.11 10853.9 11533.9 7837.6
8208.08 11069.6 11543.2 7797.68
8071.22 11016.9 11556.4 7667.66
8143.42 11069.2 11561.7 7736.25
8282.43 11288.9 11570.9 7868.31
7989.33 10939.5 11580 7589.86
7914.97 10951 11589 7519.22
8002.26 11106.1 11604.4 7602.14
7922.84 10853 11610.9 7526.7
7823.52 10634.7 11616.2 7432.34
7765.2 10556.8 11629.3 7376.94
7811.64 10673.5 11638.5 7421.06
7872.12 10789 11643.7 7478.51
7887.24 11046 11652.9 7492.88
7908.84 11102.4 11662.1 7513.4
7874.28 11307.8 11671.4 7480.57
7920.87 11413.2 11686.7 7524.83
8042.09 11713.1 11689.1 7639.99
8220.71 11897.6 11701.3 7809.68
8173.35 11880.3 11711.1 7764.69
8137.56 11938.2 11718.4 7730.68
8171.19 11805.9 11723.3 7762.63
8179 11708.9 11732 7770.05
8200.44 11562 11745.7 7790.42
8487.09 11748.6 11753.1 8062.74
8594.11 11725.6 11758.1 8164.41
8713.44 11837.5 11766.7 8277.77
8647.56 11598.1 11775.3 8215.18
8692.92 11127.2 11787.6 8258.27
8660.52 11387.1 11798.6 8227.49
8859.24 11122.4 11801.1 8416.28
8800.92 11170 11808.5 8360.87
9249.12 11252.1 11815.8 8786.66
9173.52 11289.3 11826.3 8714.84
9236.16 11500.6 11830.5 8774.35
8771.76 11131.1 11838 8333.17
8374.14 10820.9 11850.9 7955.43
8551.44 10811.3 11856.3 8123.87
8961.84 10522.9 11863.6 8513.75
8532 10488.6 11870.5 8105.4
8502.84 10358.5 11874.5 8077.7
8134.56 10421.3 11884.5 7727.83
7976.88 10234.8 11888.5 7578.04
7891.56 10209.4 11895.4 7496.98
7921.8 10240.8 11902.5 7525.71
7923.96 10136.9 11914.8 7527.76
7904.52 10336.2 11919.9 7509.29
8071.92 10608.3 11923.9 7668.32
8160.48 10457.4 11933.4 7752.46
8142.12 10714.9 11946.8 7735.01
7966.08 10591.9 11956.3 7567.78
"1993" 7864.79 10486.8 11964.8 7471.55
7891.64 10522.2 11969 7497.06
8074.79 10645.3 11980.5 7671.05
8203.19 10814.4 11983.6 7793.03
7935.51 10534.1 11990.9 7538.74
8021.47 10660.3 11998.2 7620.4
7926.81 10540.5 12005.3 7530.47
8087.85 10812.8 12012.3 7683.45
8205.36 10879.2 12023.4 7795.09
8277.18 11017.7 12026.4 7863.32
8217.33 10897.8 12038.5 7806.46
8269.03 10972.5 12045.6 7855.58
8313.08 11075.1 12050.6 7897.43
8264.12 11257.3 12054.7 7850.91
8341.37 11377.6 12061.8 7924.31
8394.69 11420 12068.8 7974.96
8412.1 11679.6 12079 7991.5
8282.62 11477.8 12084 7868.49
8210.8 11473.1 12090.1 7800.26
8224.95 11446 12097 7813.7
8193.39 11329.7 12108 7783.72
8355.52 11661.6 12110.9 7937.74
8275 11432.9 12121 7861.25
8368.58 11622.1 12125.2 7950.15
8258.68 11298.9 12137.6 7845.75
8303.29 11335.7 12142.8 7888.13
8269.56 11340.6 12147 7856.08
8400.13 11277.3 12154.1 7980.13
8414.28 11473.9 12161.2 7993.56
8477.39 11444.6 12168.4 8053.52
8652.57 11618.6 12175.5 8219.94
8780.97 12008.8 12182.6 8341.92
8856.05 12018.4 12192.8 8413.24
8883.25 12337.2 12196.9 8439.09
9054.08 12529.5 12204.1 8601.38
9010.56 12731.3 12211.2 8560.03
8887.6 12733.6 12218.4 8443.22
8885.42 12577.8 12225.6 8441.15
8875.63 12518.2 12235.8 8431.85
8885.42 12661.3 12241 8441.15
9089.99 13051.6 12247.1 8635.49
9113.93 13035.5 12254.3 8658.23
9216.21 13065 12261.5 8755.4
9140.04 12923.3 12271.8 8683.04
8948.53 12665.2 12279 8501.11
8961.59 12734.1 12283.1 8513.51
8860.4 12491 12290.3 8417.38
8953.97 12634.6 12300.6 8506.28
9189 13223 12304.7 8729.55
9306.52 13374.5 12312.8 8841.19
9512.17 13531.9 12320.9 9036.56
9795.08 13955.5 12332.5 9305.32
"1994" 9779.84 13815.4 12340.6 9290.85
9989.85 14003 12345.3 9490.35
9872.33 13825.4 12352.7 9378.71
10041 13990.5 12364.3 9538.94
10265.1 14431.9 12371.7 9751.88
9988.76 13975.3 12374.9 9489.32
9938.71 13818.6 12386 9441.77
10070.4 13904.3 12392.1 9566.85
9932.18 13924.7 12396.2 9435.57
9854.92 13880.7 12403.3 9362.18
9846.22 13913.7 12411.7 9353.91
9799.43 13676.9 12420 9309.46
9708.03 13697.5 12431.9 9222.63
9561.13 13330.7 12437.9 9083.08
9727.61 13744.7 12445.1 9241.23
9652.54 13605.2 12457.3 9169.91
9639.48 13720.6 12465.8 9157.5
9916.94 14186.6 12470.6 9421.1
9735.23 13778.9 12479.1 9248.47
9862.54 13941.6 12488.4 9369.41
9980.05 14016.1 12497.7 9481.05
9752.64 13519 12507 9265.01
9648.18 13508.5 12516.2 9165.77
9646.01 13514.9 12533.5 9163.71
9454.5 13259.8 12540.6 8981.78
9427.3 13327.2 12550.7 8955.93
9402.27 13427.4 12562.5 8932.16
9736.32 13848.4 12571.7 9249.5
9885.39 14119.6 12577.8 9391.12
9845.13 14065.1 12588.5 9352.87
9934.35 14221 12603.8 9437.64
10082.3 14424.7 12615.9 9578.22
9937.62 14178.1 12625 9440.74
10047.5 14346.5 12631 9545.14
10088.9 14463.5 12646.1 9584.42
10147.6 14557.5 12652.2 9640.24
10066 14380.8 12663.7 9562.71
9950.67 14188.9 12675.2 9453.14
9749.38 13959.3 12691.7 9261.91
9678.65 13775.1 12703.2 9194.72
9746.11 13943.3 12709.8 9258.81
10091 14593.6 12721.8 9586.49
9906.06 14345.4 12739 9410.76
10023.6 14563.6 12745.9 9522.4
9886.48 14299.3 12758 9392.15
9792.9 14261.2 12776.9 9303.26
9693.88 14200.6 12787.3 9209.19
9495.85 13933 12794.2 9021.06
9475.17 13948.8 12806.3 9001.42
9288.02 13575.9 12820.9 8823.62
9327.19 13819.4 12835.4 8860.83
9344.6 13961.5 12856.3 8877.37
"1995" 9414.24 14089.8 12870.9 8943.53
9390.3 13949 12879.2 8920.79
9517.61 14222.2 12899.9 9041.73
9426.21 13933.3 12908.2 8954.9
9481.7 14036.5 12922.7 9007.62
9432.74 14182 12937.2 8961.1
9473 14322 12952 8999.35
9489.32 14383.4 12966.7 9014.85
9513.26 14323.9 12981.4 9037.6
9754.82 14706.9 12996.2 9267.08
9487.14 14244.2 13011.1 9012.79
9576.37 14565.5 13026.1 9097.55
9599.22 14631.3 13047.4 9119.26
9779.84 14927.3 13060.2 9290.85
9715.64 14960.5 13077.4 9229.86
10104.1 15303.7 13086 9598.89
9865.8 15288.7 13101 9372.51
9978.97 15464 13116 9480.02
10214 15777 13131.1 9703.29
10041 15461 13146 9538.94
10018.1 15330.1 13161 9517.23
10263 15814 13184.5 9749.81
10343.5 16067.2 13190.9 9826.3
10279.3 15873.1 13205.9 9765.32
10300 16020.2 13227.4 9784.96
10311.9 15960.1 13242.4 9796.33
10393.5 16071.8 13255.3 9873.85
10595.9 16470.4 13272.5 10066.1
10656.9 16583.9 13281.3 10124
10709.1 16600.2 13296.5 10173.6
10829.9 16778.4 13311.8 10288.4
10803.7 16795 13333.3 10263.6
10620.9 16357 13347.8 10089.9
10656.9 16333.6 13356.1 10124
10655.8 16240.1 13370.7 10123
10679.7 16285 13385.2 10145.7
10754.8 16398.5 13400 10217
10800.5 16341 13421.1 10260.5
10676.4 16505 13435.8 10142.6
10687.3 16620.7 13450.6 10153
10674.3 16529.4 13459 10140.5
10726.5 16589.2 13484.2 10190.2
10552.4 16392.4 13488.4 10024.8
10574.2 16413.8 13503 10045.5
10681.9 16546.5 13517.7 10147.8
10579.6 16479.5 13532.3 10050.6
10688.4 16812.3 13546.9 10154
10693.9 16856.5 13561.5 10159.1
10635.1 16714.8 13576.1 10103.3
10702.5 16771.7 13597.2 10167.4
10663.4 16728.9 13605.7 10130.2
10848.4 16936.2 13626.8 10305.9
"1996" 10996.8 17213.7 13641.6 10447
11084.4 17441.2 13650.1 10530.2
11095.4 17210.3 13664.5 10540.6
11325.4 17201.2 13678.9 10759.1
11347.3 17034 13693.3 10779.9
11358.3 17402.3 13707.7 10790.4
11402.1 17381.6 13721.5 10832
11413 17551.6 13743.2 10842.4
11577.3 17611.5 13749.1 10998.5
11708.8 17749.8 13762.9 11123.3
11643 17339.2 13776.4 11060.9
11697.8 17645.2 13795.8 11112.9
11785.4 17780.2 13809.3 11196.2
12070.2 17892.7 13822.8 11466.7
12190.7 18025.8 13830.5 11581.1
12190.7 17881.3 13844.3 11581.1
12344 18205.3 13858.1 11726.8
12355 18056.4 13879.7 11737.2
12289.3 17831.1 13885.6 11674.8
12333.1 17786 13899.4 11716.4
12486.4 17976.6 13923.1 11862.1
12486.4 17879.8 13927 11862.1
12552.1 18122.6 13940.8 11924.5
12574 18046.8 13954.6 11945.3
12552.1 18251.7 13968.5 11924.5
12585 18135.8 13988.4 11955.8
12639.8 18387.9 14002.2 12007.8
12552.1 18239.9 14010.2 11924.5
12365.9 18039 14024.3 11747.6
12070.2 17955 14038.4 11466.7
12037.4 17935.8 14052.5 11435.5
12300.2 18420.2 14066.6 11685.2
12265.6 18447.3 14080.8 11652.3
12309.8 18535.7 14103 11694.4
12409.5 18819.3 14109.1 11789
12254.5 18616.2 14123.2 11641.8
12309.8 18749.8 14137.4 11694.4
12343 18955.3 14151.6 11725.9
12243.4 18742.3 14185.9 11631.2
12398.4 19077.5 14185.9 11778.5
12475.9 19364.6 14194 11852.1
12520.2 19424.4 14208.3 11894.2
12586.6 19606.3 14222.6 11957.3
12597.7 19619.3 14236.9 11967.8
12475.9 19531.3 14259.1 11852.1
12597.7 19868.9 14274.9 11967.8
12819.1 20253.9 14288.7 12178.1
13051.5 20475.5 14292.7 12399
13029.4 20452.6 14306.5 12377.9
12785.9 20056.5 14320.4 12146.6
12830.1 20034.2 14341.2 12188.6
13160.6 20406.4 14357.9 12502.6
13261.9 20680.7 14370.4 12598.8
"1997" 13363.2 20614.1 14378.7 12695.1
13689.7 20785.5 14393.5 13005.2
13836.1 20923.1 14416.6 13144.3
13689.7 20702 14429.2 13005.2
13813.6 20962.2 14439.8 13122.9
14072.5 21436.1 14452.4 13368.9
14140 21247.9 14467.2 13433
14230.1 21373.3 14492.6 13518.6
14027.5 21178.5 14505.3 13326.1
14331.4 21857 14511.6 13614.9
14050 21412.6 14526.4 13347.5
13926.1 21057.6 14547.5 13229.8
14365.2 21966 14562.3 13647
14072.5 21226.2 14570.8 13368.9
13993.7 21034.8 14586.3 13294
14275.1 21591.5 14601.9 13561.4
14297.7 21470.2 14626.3 13582.8
14590.4 22156.8 14633 13860.9
14894.3 22950.7 14648.6 14149.6
14973.1 23159.4 14673.1 14224.5
14928.1 23426.4 14679.8 14181.7
14669.2 22757.1 14697.6 13935.7
15029.4 23447.4 14711 14278
15254.6 23808.7 14726.7 14491.9
15479.8 23917.3 14749.1 14705.8
15671.1 23950.3 14764.8 14887.6
16346.6 25136.6 14773.8 15529.3
16493 25060.6 14798.4 15668.3
16312.8 24634.2 14805.1 15497.2
16695.6 24816.5 14820.8 15860.8
16515.5 24481.7 14836.5 15689.7
16470.5 24690.4 14852.1 15646.9
15883.5 23917.3 14867.8 15089.4
15963.5 24083 14883.4 15165.3
15940.7 23823.4 14899.1 15143.6
16192.1 24376.4 14914.7 15382.5
16054.9 24278.1 14930.5 15252.2
16546.3 25153.4 14955.4 15719
16912 25794.8 14969 16066.4
17220.5 26420.4 14984.9 16359.5
17083.4 26254.5 14994 16229.2
16626.3 25632.5 15010 15795
16032.1 24475.2 15032.8 15230.5
16306.3 25030.1 15041.9 15491
16203.5 24707.6 15057.9 15393.3
16112.1 24899.3 15085.4 15306.5
16180.6 25163.5 15099.2 15371.6
16374.9 25456.5 15106.1 15556.1
16763.4 25923.8 15129.4 15925.2
16406.8 25373.9 15139.1 15586.5
16609.9 25345.3 15168.2 15779.4
16880.6 25945.4 15180.3 16036.6
17408.6 26477.3 15190 16538.2
"1998" 16555.8 25056 15207.4 15728
17164.9 26080.3 15224.9 16306.7
17205.5 26547.5 15249.9 16345.2
17814.7 27601.6 15267.4 16924
17895.9 27890.6 15277.3 17001.1
18180.2 28037.3 15293.4 17271.2
18437.4 28772 15309.4 17515.5
19087.2 29610.5 15325.4 18132.8
19046.6 29565.2 15341.4 18094.2
19520.3 30269.7 15369.5 18544.3
20061.8 30995.6 15383.5 19058.7
20386.7 31131 15397.5 19367.4
21158.3 32417.8 15406.9 20100.4
20806.4 32324.9 15423.3 19766
20792.8 32590.3 15439.8 19753.2
19479.7 30893.2 15456.2 18505.8
20752.2 32923.4 15472.6 19714.6
20589.8 32908 15489.2 19560.3
19899.4 31802.6 15515.3 18904.4
20819.9 33280.2 15531.9 19778.9
20346.1 32521.9 15546.1 19328.8
20955.3 33552.3 15562.7 19907.5
19303.8 31386.5 15572.1 18338.6
19479.7 31982.5 15595.6 18505.8
20427.3 32924.1 15612.2 19406
21077.1 33650 15628.7 20023.2
21185.4 33795.4 15645.4 20126.1
22024.7 35244.5 15662 20923.5
21374.9 33560.1 15678.7 20306.2
21036.5 33007.4 15695.4 19984.7
20200.6 31758.7 15712 19190.6
19608.5 31142.7 15728.6 18628.1
19457 30743 15745.3 18484.2
18217.7 29364 15761.9 17306.8
18741 30215.4 15778.6 17803.9
18121.3 30004.8 15795.2 17215.2
16840.7 27794.7 15811.8 15998.7
17212.5 28868.6 15828.5 16351.9
15697.8 26143.8 15844.7 14912.9
16207.3 27961 15860.6 15396.9
17088.6 29436.7 15876.6 16234.1
17240 29849.9 15892.5 16378
17832.2 31135.8 15908.5 16940.5
17432.8 30465.4 15924.3 16561.2
17749.5 31101 15940.1 16862
18038.7 32213.2 15955.9 17136.8
18148.9 32092.2 15971.8 17241.4
17832.2 31433.4 15988.5 16940.5
17732.8 31383.4 16005.3 16846.1
18359.1 32816.7 16022.1 17441.2
18746.9 33432.8 16039 17809.5
"1999" 19567.2 34693.7 16055.1 18588.8
19358.4 34388 16070.4 18390.5
19462.8 34119.4 16085.5 18489.6
18896 33099.2 16100.8 17951.2
19104.8 33660.2 16116 18149.6
18433.7 32552.1 16130.9 17512
18195.1 32539 16145.9 17285.3
18060.8 32459.8 16160.8 17157.8
17583.6 31907.1 16175.8 16704.4
17822.2 32439.4 16190.8 16931.1
18045.9 33036.3 16205.8 17143.6
17881.9 32848.9 16220.8 16987.8
17419.5 32383.1 16235.9 16548.6
17449.4 32662.5 16250.9 16576.9
18045.9 33725.5 16266 17143.6
17628.3 33519.5 16281.1 16746.9
17688 33384.1 16296.1 16803.6
17941.5 33949 16311.2 17044.5
17881.9 33792.8 16326.1 16987.8
17255.5 32432.6 16341.1 16392.7
17628.3 32922.6 16356 16746.9
17106.4 32191.3 16371 16251
17255.5 32814.2 16386 16392.7
17345 33081.5 16401.2 16477.7
17673.1 33707.9 16416.3 16789.4
17315.2 32939.1 16431.4 16449.4
17702.9 33914.3 16447.2 16817.8
17538.9 33334 16463.5 16661.9
17628.3 33233.5 16479.9 16746.9
17180.9 32647.4 16496.3 16321.9
17232.7 32979.7 16512.6 16371
17015.7 32457.7 16529 16164.9
17263.7 33071.8 16545.3 16400.5
17589.1 33604.7 16561.6 16709.6
17620.1 33612 16578 16739.1
17930 34135.9 16594.7 17033.5
17589.1 33428.2 16611.6 16709.6
17279.2 33176.3 16628.5 16415.2
17093.2 33076.9 16645.4 16238.5
17356.6 33530.9 16662.3 16488.8
17635.6 34117.6 16679.4 16753.8
17170.7 32889.8 16696.4 16312.1
17403.1 33376.6 16713.5 16533
17790.6 34367.8 16730.6 16901
17914.5 34593.1 16747.6 17018.8
18379.4 35464 16764.6 17460.5
18673.9 35444.2 16781.7 17740.2
19030.3 35734.8 16798.7 18078.8
19960.1 36887.4 16818.4 18962.1
20550.6 36849.1 16839.2 19523
20751.4 37189.7 16859.9 19713.8
21588.2 38428 16880.7 20508.7
22173.9 39210.8 16900.8 21065.2
21655.1 38352.4 16919.2 20572.3
22073.5 38834.5 16937.6 20969.8
22123.7 37512.4 16956.1 21017.5
21420.8 36175.1 16974.5 20349.8
22943.7 37476.6 16993.4 21796.5
23646.6 37938 17012.5 22464.2
24416.4 37713.5 17031.5 23195.5
24449.8 37734.9 17050.5 23227.3
26407.8 40056 17069.7 25087.4
26156.8 38965.1 17088.9 24849
26658.9 39537.2 17108.1 25325.9
26608.7 40231.7 17127.3 25278.2
25219.7 38307.1 17146.8 23958.7
25721.7 39046.2 17167 24435.6
23813.9 36584.2 17187.1 22623.2
24048.2 37202.4 17207.3 22845.8
24014.7 37161.3 17227.5 22814
23562.9 36472.6 17248.1 22384.7
23495.9 36729.9 17268.8 22321.1
22441.6 34823.8 17289.4 21319.5
23362.1 36268.6 17310 22194
24399.6 38715.3 17331.3 23179.7
24433.1 38564.1 17353 23211.5
24533.5 38596.9 17374.7 23306.8
23914.3 37533.1 17396.3 22718.6
23998 37790.3 17408.8 22798.1
NOTE:The graph compares the performance results of a hypothetical $10,000
investment in Class A and a comparable index. The performance of Class A is
shown after adjustment to reflect the maximum sales load, which is waived for
certain investors. The performance of the index does not reflect brokerage
commissions and other expenses that would be incurred to acquire a comparable
portfolio of securities.
--------------
Sources used are the net asset value of the Fund which is computed daily, The
Financial Times and Morgan Stanley Capital International.
The MSCIEurope Index is a market value weighted, unmanaged index of the weighted
share prices of companies listed on the stock exchanges of Austria, Belgium,
Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland and the United Kingdom. The combined market
capitalization of these companies represents approximately 60% of the aggregate
market value of the stock exchanges of the above 15 countries. The percentage
change in the value of the index includes dividends reinvested.
<PAGE>
AVERAGE ANNUAL TOTAL RETURN - CLASS A
[Figures below represent bar chart in printed piece]
GAM
EUROPE
CLASS A
(AFTER
MAXIMUM
GAM SALES MSCI
EUROPE LOAD EUROPE
CLASS A OF 5%) INDEX
YEAR % % %
---- ------- ----- -----
1 Year 39.44 32.46 15.42
3 Year 15.26 13.31 16.42
5 Years 18.3 17.1 18.84
Since Inception 8.7 8.17 13.51
ANNUAL PERFORMANCE - CLASS A
[Figures below represent bar chart in printed piece]
GAM
EUROPE
CLASS A
(AFTER
MAXIMUM
GAM SALES MSCI
EUROPE LOAD EUROPE
CLASS A OF 5%) INDEX
YEAR % % %
---- ------- ----- -----
1996 21.3 15.2 21.6
1997 27.6 21.2 24.2
1998 10.7 5.2 28.9
1999 16.3 10.5 16.2
2000 9.63 4.15 (2.95)
GAM EUROPE
GAM CLASS A MSCI
EUROPE (AFTER MAXIMUM EUROPE
CLASS A SALES LOAD OF 5%) INDEX
YEAR % % %
--------------------------------------------------------------------------------
1996 21.32 15.25 21.57
1997 27.55 21.17 24.20
1998 10.70 5.17 28.91
1999 16.21 10.40 16.23
2000* 9.63 4.15 (2.95)
* 6 months
24
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
THE FACTS - CLASS B SHARES
================================================================================
GAM
Europe Average
GAM Class B MSCI 1 Month
Europe(with deferred Europe Deposit
Class B sales charge) Index Rate
30th June, 2000 US$14.28 1,468.66
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (7.09) (11.74) (3.09) 1.58
Jan - June, 2000 9.17 4.17 (2.95) 3.06
Average annual total return:
1 year to June, 2000 38.25 33.25 15.42 5.92
--------------------------------------------------------------------------------
Since inception* 5.87 4.62 6.07 5.59
--------------------------------------------------------------------------------
================================================================================
THE FACTS - CLASS C SHARES
================================================================================
GAM
Europe Average
GAM Class C MSCI 1 Month
Europe(with deferred Europe Deposit
Class C sales charge) Index Rate
30th June, 2000 US$13.91 1,468.66
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 (7.20) (8.13) (3.09) 1.58
Jan - June, 2000 8.93 7.93 (2.95) 3.06
Average annual total return:
1 year to June, 2000 37.50 36.50 15.42 5.92
--------------------------------------------------------------------------------
Since inception* 5.39 5.39 7.00 5.59
--------------------------------------------------------------------------------
================================================================================
* Inception was on 26th May, 1998 for Class B shares and 20th May, 1998 for
Class C shares.
THE COMMENT
The Fund had an excellent six months, with the NAV of Class A rising by 9.63%
compared with a fall of 2.95% in the benchmark index.
Early identification of major investment themes remains central to the fund
manager's investment process. Our long-standing commitments to the
telecommunications and media sectors continued to reap rewards, particularly in
the early months of 2000. Returns were further enhanced by our selections in the
technology sector, implemented some 12 months ago, which yielded exceptional
results during the reporting period.
Within the technology sector the headlines are often made by new, untested
business models in the "b2b dotcom" space. We have carefully avoided many such
situations, judging the majority of such candidates as unsuitable at this stage
of their development for anything other than venture capital. The inflated
prices paid by the equity market quite clearly encouraged such companies to
float their businesses prematurely. Instead, we have profitably exploited those
businesses supplying enabling technologies: companies such as Cor Insurance
Technologie, April and Adcon Telemetry being fine examples.
A further example of enabling technologies is the oil services sector, at
last benefiting from increased exploration and production spending, thus,
holdings in Geophysique and IHC Caland have produced strong returns for the
Fund.
In media too, the headline-makers have been fledgling franchises where much
hope has been built into valuations. Our strategy here has been to tap the very
favourable media environment by investing in so called `old media' businesses,
in industries such as newspapers, magazines and television broadcasting.
Favoured holdings were Daily Mail and General Trust, Telegraaf, M6 and Prisa.
European business practices remain subject to profound change. The key result
of this is that the equity owner is being promoted in the order of ranking while
previous vested interests, notably politicians, are seeing their power eroded.
While the charge to date has been led by the companies themselves, latterly
Europe's politicians have begun to see the unquestionable merit of such change.
The recent overhaul of Germany's tax laws is a fine example and one which is set
to unleash fiscal reform on a Europe-wide scale. This presents excellent
opportunities for the Fund, not just in the near term, but for forthcoming
years.
25
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
================================================================================
STATEMENT OF INVESTMENTS AS AT 30TH JUNE, 2000 (UNAUDITED)
MARKET
VALUE
HOLDINGS DESCRIPTION US$
-------------------------------------------------------------------
EQUITIES - 91.3%
FINLAND - 3.8%
18,850 Nokia 959,775
3,155 Sonera 143,511
----------
1,103,286
----------
FRANCE - 16.9%
6,345 Alcatel 415,240
1,325 April Group 261,905
7,035 Aventis 507,851
1,486 AXA-UAP 233,568
2,975 Banque Nationale de Paris 285,666
*935 Business Objects 85,416
4,750 Fimalac 147,601
2,440 France Telecom 340,284
*2,630 Geophysique 178,881
2,445 Imerys 283,219
1,804 Marine- Wendel 137,393
1,795 Saint Gobain 242,124
1,750 Suez Lyonnaise des Eaux 305,904
3,320 Technip 400,705
3,555 Total Fina B 543,871
6,400 Valeo 341,412
2,630 Vivendi 231,619
----------
4,942,659
----------
GERMANY - 11.9%
*12,860 Adcon Telemetry 202,132
1,075 Allianz 389,137
3,455 Bayer 134,282
2,940 Bayerische Hypo-Vereinsbank 190,724
7,490 Bayerische Motoren Werke 225,465
6,906 BERU 207,228
*9,050 Cor AG Insurance Technologie 152,161
*9,244 Deutsche Telekom 524,828
970 Munchener Ruckversicherung 307,237
*1,021 Norcom Information Technology 83,644
*3,972 Rational 145,673
2,200 Rhoen-Klinikum 86,972
14,690 Sartorius 165,126
2,915 Siemens 437,351
*2,695 Teamwork Information Management 43,130
*7,435 Techem 177,065
----------
3,472,155
----------
IRELAND - 0.4%
*260,660 Minment 103,490
----------
103,490
----------
ITALY - 3.0%
5,015 Assicurazioni Generali 171,505
38,070 ENI 219,406
15,360 Telecom Italia 210,700
28,505 TIM 290,546
----------
892,157
----------
NETHERLANDS - 10.5%
13,115 ABN AMRO Holding 320,579
5,820 Aegon 206,630
9,930 Fortis AMEV 288,415
5,940 IHC Caland 288,581
4,505 ING Groep 303,836
3,541 KPN 158,032
5,665 Philips 266,586
*940 Qiagen 162,971
10,265 Royal Dutch Petroleum 636,576
19,960 Telegraaf Holding 456,333
----------
3,088,539
----------
NORWAY - 1.6%
24,280 Orkla 460,700
----------
460,700
----------
PORTUGAL - 0.9%
*25,100 Impresa 274,968
++8,297 Sotancro 0
----------
274,968
----------
SPAIN - 4.8%
*11,620 Amadeus Global Travel Distribution 132,277
16,850 Banco Bilbao Vizcaya Argentaria 251,203
*25,840 Grupo Prisa 598,149
6,545 Repsol YPF Registered 129,995
*13,840 Telefonica 296,640
----------
1,408,264
----------
SWEDEN - 2.6%
39,210 L.M. Ericsson B 774,559
----------
774,559
----------
SWITZERLAND - 9.2%
72 Bank Sarasin B 185,147
100 Julius Baer Holding 394,906
155 Nestle 309,848
290 Novartis 458,801
36 Roche Holding Genussscheine 350,015
180 Schweizerische Rueckversiche 366,436
*210 Think Tools 121,503
2,000 UBS 292,659
470 Zurich Allied 231,935
----------
2,711,250
----------
UNITED KINGDOM - 25.7%
*99,000 Anglian Group 222,360
50,000 Arriva 132,344
*7,483 AstraZeneca Group 349,161
7,950 Barclays 197,561
95,080 BP Amoco 911,746
30,775 British Telecom 397,513
*8,540 Celltech 165,334
*14,275 CGNU 237,500
19,540 Cobham 295,543
42,770 Daily Mail & General Trust A 740,696
*46,350 FKI 164,745
13,515 Glaxo Wellcome 393,907
*43,310 Glynwed International 155,250
25,235 Granada Group 251,908
*32,305 HSBC Holdings 369,147
*38,400 IMI (UK) 164,367
*15,529 K S Biomedix Holdings 132,470
14,345 Lloyds TSB Group 135,388
10,150 Marconi 132,026
*20,573 Prudential 301,209
*8,550 Rio Tinto 139,664
*12,298 Royal Bank of Scotland 205,724
21,640 SmithKline Beecham 283,119
208,485 Vodafone AirTouch 841,941
*40,800 Wolseley 219,071
----------
7,539,694
----------
TOTAL EQUITIES (COST $25,406,506) 26,771,721
----------
================================================================================
26
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
================================================================================
MARKET
VALUE
HOLDINGS DESCRIPTION US$
-------------------------------------------------------------------
PREFERRED - 1.8%
GERMANY - 1.8%
*730 JUMPtec Industrielle Computertechnik 63,281
675 Marshollek, Lautenschlaeger und
Partner Pfd 336,935
2,800 Rhoen-Klinikum Pfd 124,028
----------
524,244
----------
TOTAL PREFERRED (COST $256,648) 524,244
----------
TIME DEPOSIT - 6.2%
UNITED STATES - 6.2%
$1,825,607 CitiBank
6.00% 2000-07-03 1,825,607
----------
TOTAL TIME DEPOSIT (COST $1,825,607) 1,825,607
----------
TOTAL INVESTMENTS (COST $27,488,761**) - 99.3% 29,121,572
NET CURRENT ASSETS - 0.7% 204,144
----------
TOTAL NET ASSETS - 100.0% 29,325,716
==========
* Non-income producing security.
** Cost for federal income tax purposes is identical.
++ Fair Value determined by Board of Directors
See notes to financial statements.
================================================================================
GEOGRAPHIC ANALYSIS AS AT
30TH JUNE, 2000
[Figures below represent pie chart in printed piece]
UNITED KINGDOM 25.7%
FRANCE 16.9%
GERMANY 13.7%
NETHERLANDS 10.5%
SWITZERLAND 9.2%
SPAIN 4.8%
FINLAND 3.8%
ITALY 3.0%
SWEDEN 2.6%
NORWAY 1.6%
PORTUGAL 0.9%
IRELAND 0.4%
NET CURRENT ASSETS 6.9%
INVESTMENT ANALYSIS AS AT
30TH JUNE, 2000
[Figures below represent pie chart in printed piece]
INSURANCE 11.4%
TELECOMMUNICATIONS 10.9%
ELECTRICAL & ELECTRONICS 9.8%
BANKING 9.6%
HEALTH & PERSONAL CARE 8.5%
ENERGY SOURCES 8.3%
BROADCASTING & PUBLISHING 7.1%
MULTI-INDUSTRY 3.7%
OTHER 23.8%
NET CURRENT ASSETS 6.9%
27
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
GAM NORTH AMERICA FUND
FUND MANAGEMENT
--------------------------------------------------------------------------------
[PHOTO OMITTED]
FAYEZ SAROFIM FOUNDED FAYEZ SAROFIM &CO. IN 1958 AND IS THE PRESIDENT AND
CHAIRMAN OF THE BOARD. HE IS ALSO DIRECTOR OF TELEDYNE INC., ARGONAUT GROUP,
UNITRIN, INC., MESAINS., IMPERIAL HOLLY CORP. AND EXORGROUP. FROM 1951 TO 1958
MR. SAROFIM WORKED FOR ANDERSON, CLAYTON &CO. WHERE HIS LAST ASSIGNMENT WAS AS
ASSISTANT TO THE PRESIDENT. HE COMMENCED MANAGEMENT OF GAMNORTH AMERICA FUND ON
29TH JUNE, 1990. MR. SAROFIM ALSO MANAGES THE OFFSHORE FUND GAM U.S. INC.
The Fund's investment objective is to seek long-term capital appreciation,
generally through investment in equity securities issued by companies in the
United States and Canada. However, if the Fund determines that the long-term
capital appreciation of debt securities may equal or exceed the return on equity
securities, it may be substantially invested in debt securities of companies and
governments, their agencies and instrumentalities. Any income realized by the
Fund on its investments will be incidental to its goal of long-term capital
appreciation.
REPORT TO SHAREHOLDERS
--------------------------------------------------------------------------------
THE FACTS -- CLASS A SHARES
GAM
North America
Class A (after Average
GAM maximum S&P 1 Month
North America sales load Comp Deposit
Class A of 5%) Index Rate
30th June, 2000 US$18.89 US$19.88 1,454.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 3.56 (1.61) (2.66) 1.58
--------------------------------------------------------------------------------
Jan-June, 2000 3.22 (1.94) (0.42) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 6.00 0.70 7.25 5.92
--------------------------------------------------------------------------------
3 years to June, 2000 15.84 13.87 19.71 5.64
--------------------------------------------------------------------------------
5 years to June, 2000 21.81 20.57 23.83 5.61
--------------------------------------------------------------------------------
Since inception 14.74 14.18 17.25 5.42
--------------------------------------------------------------------------------
Performance is calculated on a total return basis. Class A inception was on
1st January, 1990, Class B on 26th May, 1998 and Class C on 7th July, 1998. Past
performance is not necessarily indicative of future performance. The investment
return and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
28
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
[Figures below represent line chart in printed piece]
GAM
NORTH
AMERICA
CLASS A
(AFTER
GAM MAXIMUM STANDARD AVERAGE
NORTH SALES & POOR'S 1 MONTH
AMERICA LOAD COMPOSITE DEPOSIT
CLASS A OF 5%) INDEX RATE
------- ----- ---- -----
"1990" 10000 10000 10000 10000
10000 10017.4 10009.5 9500
10006 9547.96 10025.5 9505.7
10013 9366.41 10050.8 9512.35
10021 9225.32 10057.7 9519.95
10028 9419.91 10073.8 9526.6
10036 9375.61 10089.6 9534.2
10045 9458.19 10105.4 9542.75
10050.5 9349.53 10121.2 9548
10058 9500.32 10137 9555.1
10065 9647.26 10153.1 9561.75
10071 9791.87 10169.1 9567.45
10075 9630.21 10192 9571.25
9995 9667.32 10208.1 9495.25
9991 9750.08 10217.2 9491.45
9981 9852.89 10233.6 9481.95
9974 9467.89 10250 9475.3
9966 9467.22 10266.5 9467.7
9957 9752.25 10282.9 9459.15
9948 10166.3 10299.6 9450.6
9786 10266.3 10316.4 9296.7
9773 10175 10333.2 9284.35
9780 10551 10359.3 9291
9845 10392.5 10366.3 9352.75
9916 10263.1 10382.7 9420.2
9999 10138.8 10406.1 9499.05
10010 10353.9 10422.4 9509.5
10008 10360.6 10443.5 9507.6
10005 10639.6 10448.2 9504.75
9998 10252.1 10464.5 9498.1
9989 10265.6 10480.9 9489.55
9981 9662.14 10497.3 9481.95
9972 9796.05 10524.5 9473.4
9963 9503.49 10529 9464.85
9954 9305.06 10556.2 9456.3
9952 9343.68 10560.7 9454.4
9947 9322.78 10576.6 9449.65
9941 9216.96 10599.6 9443.95
9739 8840.32 10615.7 9252.05
9901 9146.75 10631.8 9405.95
9876 9110.3 10641 9382.2
9776 8818.08 10657.7 9287.2
9926 9159.45 10674.4 9429.7
9764 8794.84 10691.1 9275.8
9999 9172.16 10714.7 9499.05
10097 9321.94 10723.9 9592.15
10190 9324.95 10749.1 9680.5
10152 9249.39 10756 9644.4
10285 9478.59 10772 9770.75
10384 9626.03 10788 9864.8
10313 9549.3 10805.9 9797.35
10248 9670.33 10831.4 9735.6
10214 9685.71 10849.2 9703.3
"1991" 9848 9260.76 10859.4 9355.6
9808 9178.68 10875 9317.6
10284 9731.02 10890.7 9769.8
10438 9884.15 10906.3 9916.1
10615 10253.4 10921.9 10084.2
11105 10856.6 10936.2 10549.8
11148 10878.3 10960.6 10590.6
11218 10832.7 10964.7 10657.1
11274 10901.4 10987.2 10710.3
11448 11015.1 10993.4 10875.6
11446 10996.9 11007.9 10873.7
11388 10936.5 11028.6 10818.6
11477 10987 11043.1 10903.2
11621 11211.5 11051.3 11040
11716 11293.3 11064.6 11130.2
11670 11293.1 11083.5 11086.5
11432 11083.8 11091.1 10860.4
11699 11281.2 11104.3 11114
11640 11189.6 11116.8 11058
11610 11063.1 11129.4 11029.5
11713 11225 11141.9 11127.3
11784 11546.4 11159.7 11194.8
11601 11270.7 11166.9 11021
11681 11323.8 11179.3 11097
11507 11056.7 11197.1 10931.7
11641 11271.4 11209.6 11059
11665 11279.4 11216.7 11081.8
11762 11419.3 11229.5 11173.9
11764 11441.2 11242.2 11175.8
11775 11456.6 11262.3 11186.2
11918 11521 11267.8 11322.1
12043 11616.1 11280.3 11440.8
11777 11277 11292.9 11188.2
12214 11804.6 11305.5 11603.3
12292 11859.1 11318 11677.4
12057 11660.4 11335.8 11454.2
11984 11583.5 11347.8 11384.8
11972 11594.5 11359.9 11373.4
11997 11659.9 11372 11397.2
11838 11415.3 11378.9 11246.1
11885 11631.8 11390.5 11290.8
12055 11745.6 11407.1 11452.2
12042 11738.6 11413.7 11439.9
12136 11768.7 11430 11529.2
12233 11861.7 11436.3 11621.3
12084 11631 11447.2 11479.8
11914 11339.1 11458.2 11318.3
12142 11529.3 11469.1 11534.9
12162 11441.4 11484.9 11553.9
12315 11636 11491.2 11699.2
12781 12017.5 11508.7 12142
13327.7 12580 11518.3 12661.3
"1992" 13363.3 12673.6 11524.7 12695.1
13226.9 12570.8 11533.9 12565.5
13057.3 12639.2 11543.2 12404.5
13023.2 12604.6 11556.4 12372.1
12988.5 12458.5 11561.7 12339.1
13105.5 12581.5 11570.9 12450.2
13012.2 12549.2 11580 12361.6
13017.2 12549.9 11589 12366.4
13100.5 12562.4 11604.4 12445.5
12865.4 12348.8 11610.9 12222.1
12884.8 12391.6 11616.2 12240.6
12989.1 12505.8 11629.3 12339.7
12844.7 12301.8 11638.5 12202.5
13042.3 12387.9 11643.7 12390.2
13073.4 12409.6 11652.9 12419.7
13019.2 12541.4 11662.2 12368.3
12935 12496.1 11671.4 12288.2
13204.7 12762 11686.7 12544.4
13226.9 12817.5 11689.1 12565.6
13113.7 12651.9 11701.3 12458
13045.5 12696.2 11711.1 12393.2
13394 12804.2 11718.4 12724.3
13087.4 12690.7 11723.3 12433
12971.5 12603.7 11732 12322.9
12845.7 12399.3 11745.7 12203.4
12960.4 12577 11753.1 12312.4
13155.2 12735.1 11758.1 12497.4
13205 12774.4 11766.7 12544.7
13123.6 12747.3 11775.3 12467.4
13071.4 12686.7 11787.6 12417.8
13526.8 13111.6 11798.7 12850.5
13426.5 12943.9 11801.1 12755.2
13503.7 12992.1 11808.5 12828.5
13216.8 12689.7 11815.8 12556
13273 12799.5 11826.3 12609.4
13429.5 12901.3 11830.5 12758
13670.2 13162.1 11838 12986.7
13541.8 13072.8 11850.9 12864.7
13212.8 12909.3 11856.3 12552.2
12931 12636.2 11863.6 12284.4
12885.8 12639.7 11870.5 12241.5
13172.7 12881.4 11874.5 12514.1
13277 12987.7 11884.5 12613.2
13422.5 13137.8 11888.5 12751.4
13268 13016.2 11895.4 12604.6
13439.5 13088.7 11902.5 12767.6
13587 13234.3 11914.8 12907.6
13694.3 13435.9 11919.9 13009.6
13824.7 13567 11923.9 13133.5
13751.5 13497.8 11933.4 13063.9
14062.5 13750.7 11946.8 13359.3
13926 13710.2 11956.3 13229.7
"1993" 13667.6 13599.2 11964.8 12984.2
13335.6 13468.2 11969 12668.8
13395.5 13659.6 11980.5 12725.8
13360 13766.8 11983.6 12692
13424.8 13852.8 11990.9 12753.6
13446.8 14027.2 11998.2 12774.5
13383 13932.3 12005.3 12713.8
12856.8 13646.7 12012.3 12213.9
13201 13866.4 12023.4 12540.9
13592.2 14272.8 12026.4 12912.6
13485.5 14177.3 12038.5 12811.2
13266.3 14104.8 12045.6 12603
13205.1 14171.7 12050.6 12544.9
12784.6 13912.5 12054.7 12145.3
12730.2 14111.3 12061.8 12093.7
12659 14090.2 12068.8 12026.1
12512.5 13659.3 12079 11886.9
12859.9 13947.8 12084 12216.9
12829.5 13966.2 12090.1 12188.1
12914.3 13897 12097 12268.6
13055.5 14145.4 12108 12402.8
13073.3 14222.1 12110.9 12419.7
12957.2 14150.8 12121 12309.3
13011.6 14159 12125.2 12361
12889.2 14119.5 12137.6 12244.7
13006.4 14305.4 12142.8 12356
12785.6 14122.8 12147 12146.3
12830.6 14230 12154.1 12189.1
12679.9 14144.1 12161.2 12046
12685.2 14248.7 12168.3 12050.9
12637 14290.2 12175.5 12005.2
12505.2 14315.9 12182.6 11880
12514.6 14376.3 12192.8 11888.9
12886 14474.6 12196.9 12241.7
12925.8 14694.4 12204.1 12279.5
12958.2 14684.2 12211.2 12310.3
12905.9 14714.8 12218.4 12260.6
12629.7 14499.2 12225.6 11998.2
12814.9 14722 12235.8 12174.2
12731.2 14715.1 12241 12094.7
12894.4 14708.1 12247.1 12249.7
13358.9 14957.5 12254.3 12691
13137.1 14829.7 12261.5 12480.3
13250.1 14994 12271.8 12587.6
13094.2 14717.5 12279 12439.5
13289.9 14838.3 12283.1 12625.4
13250.1 14698.2 12290.3 12587.6
13253.3 14794.7 12300.6 12590.6
13410.2 14947.7 12304.7 12739.7
13362.1 14932 12312.8 12694
13275.2 14944.7 12320.9 12611.5
13509.6 15103.2 12332.5 12834.1
"1994" 13394.3 14947.3 12340.6 12724.6
13698.6 15271 12345.3 13013.7
13546.5 15215.5 12352.7 12869.2
13441.6 15180.6 12364.3 12769.5
13623.3 15498.7 12371.7 12942.1
13381 15189.4 12374.9 12712
13298.3 15148 12386 12633.4
13234.8 15074.1 12392.2 12573.1
13159.5 15064.2 12396.2 12501.5
13107.8 15064.7 12403.3 12452.4
13115.2 15088.1 12411.7 12459.4
13137.3 15133.2 12420 12480.5
12895.1 14865.3 12431.9 12250.3
12372.2 14191.9 12437.9 11753.6
12580.5 14554 12445.1 11951.4
12426.8 14322.3 12457.3 11805.5
12735.6 14662.1 12465.8 12098.8
12827.1 14680.4 12470.6 12185.8
12537.6 14341.5 12479.1 11910.7
12689.8 14420.1 12488.4 12055.3
12865.5 14710.8 12497.7 12222.3
12926.1 14853 12507 12279.8
12963 14911.6 12516.2 12314.9
12895.1 14926.8 12533.5 12250.3
12831.6 14814.8 12540.6 12190
12683.9 14559.2 12550.7 12049.7
12626.2 14531.1 12562.5 11994.9
12745.9 14599.8 12571.7 12108.6
12927.6 14841.4 12577.8 12281.2
12963 14817.8 12588.5 12314.9
13112.2 15046.5 12603.8 12456.6
13031 14952.9 12615.9 12379.4
13150.6 15070 12625 12493.1
13323.4 15113.7 12631 12657.3
13564.2 15523.1 12646.1 12886
13542 15413.4 12652.2 12865
13418 15265.1 12663.7 12747.1
13555.4 15425.3 12675.2 12877.6
13412.1 15104.6 12691.7 12741.5
13514 15142.9 12703.2 12838.3
13449 15062.7 12709.8 12776.5
13791.7 15396.5 12721.8 13102.1
13621.8 15137.8 12739 12940.7
13940.9 15524.6 12745.9 13243.8
13735.6 15227.9 12758 13048.8
13909.8 15333.8 12776.9 13214.4
13788.7 15087.4 12787.3 13099.3
13629.2 14959.4 12794.2 12947.7
13570.1 14940.5 12806.3 12891.6
13496.3 14821.6 12820.8 12821.5
13793.2 15108.3 12835.4 13103.5
13879.3 15180.2 12856.3 13185.3
"1995" 13761.7 15170 12870.8 13073.6
13666.7 15230.1 12879.2 12983.4
13834.1 15521.2 12899.9 13142.4
13758.7 15411.6 12908.2 13070.7
13889.8 15509.6 12922.7 13195.4
14236.6 15936.3 12937.2 13524.8
14149.2 15961.9 12952 13441.7
14227.6 15981 12966.7 13516.2
14322.6 16050.7 12981.4 13606.5
14443.2 16119.7 12996.2 13721.1
14588 16275.2 13011.1 13858.6
14809.6 16486.5 13026.1 14069.1
14910.6 16729.6 13047.4 14165.1
14808.1 16693.3 13060.2 14067.7
14916.7 16873.7 13077.4 14170.8
14880.5 16852.9 13086 14136.4
15109.7 17087 13101 14354.2
15124.7 17141.3 13116 14368.5
15433.8 17473.5 13131.1 14662.2
15391.6 17608.4 13146 14622
15289.1 17480.7 13161 14524.6
15341.9 17489.4 13184.5 14574.8
15623.8 17897.5 13190.9 14842.6
15530.3 17748.5 13205.9 14753.8
15860.6 18236.8 13227.4 15067.5
15942 18209.2 13242.4 15144.9
15869.6 18317.2 13255.3 15076.1
15946.5 18664.4 13272.5 15149.2
16044.5 18858.7 13281.3 15242.3
15993.2 18663.4 13296.5 15193.6
16103.3 18854.5 13311.8 15298.1
16106.3 18795.5 13333.3 15301
16053.6 18794.7 13347.8 15250.9
15844 18749 13356.1 15051.8
15928.4 18789.5 13370.7 15132
16012.8 18959.7 13385.2 15212.2
16208.8 19307.4 13400 15398.4
16686.8 19614.7 13421.1 15852.5
16825.5 19591.4 13435.8 15984.3
16861.7 19597.4 13450.6 16018.6
16988.4 19493.5 13459 16139
17003.5 19659.6 13484.2 16153.3
17001.9 19737.2 13488.4 16151.9
16931.1 19685.2 13503 16084.5
17000.4 19870.3 13517.7 16150.4
17229.6 20009 13532.3 16368.2
17621.7 20172 13546.9 16740.6
17629.2 20332.3 13561.5 16747.7
17973 20759.6 13576.1 17074.3
18265.5 20966.4 13597.2 17352.2
17942.8 20545.3 13605.7 17045.7
17837.3 20728.9 13626.8 16945.4
"1996" 18042.9 20872.7 13641.6 17140.8
18209.3 20967.7 13650.1 17298.8
17785.8 20344.9 13664.5 16896.5
18133.7 20814.9 13678.9 17227
18526.9 21191.5 13693.3 17600.6
18905 21785.2 13707.7 17959.8
19479.7 22474.7 13721.5 18505.7
19116.7 22026.3 13743.2 18160.9
19192.4 22120.1 13749.1 18232.7
19525.1 22141.4 13762.9 18548.8
19147 21783.5 13776.4 18189.6
19207.5 22223 13795.8 18247.1
19207.5 22143.6 13809.3 18247.1
19343.6 22278.7 13822.8 18376.4
19086.5 21964.6 13830.5 18132.2
18799.1 21914.4 13844.3 17859.2
18995.7 22108.2 13858.1 18046
19071.4 22331.7 13879.7 18117.8
18663 21885.3 13885.6 17729.9
19328.5 22602 13899.4 18362.1
19888.1 23009.5 13923.1 18893.7
19812.4 23202.4 13927 18821.8
19767.1 22841.8 13940.8 18778.7
20054.4 23004.7 13954.6 19051.7
19963.7 22774.6 13968.5 18965.5
20084.7 22910.9 13988.4 19080.4
20296.4 23161.6 14002.2 19281.6
19615.8 22371.1 14010.2 18635
19056.2 21600.8 14024.3 18103.4
19389 21746.6 14038.4 18419.5
19192.4 21658.2 14052.5 18232.7
20084.7 22674.8 14066.6 19080.4
20054.4 22874.9 14080.8 19051.7
20205.7 22912.6 14103 19195.4
20099.8 22829.5 14109.1 19094.8
19797.3 22430.2 14123.2 18807.4
20099.8 22844.9 14137.4 19094.8
20614 23550.9 14151.6 19583.3
20689.6 23646.9 14185.9 19655.2
20780.4 23685.3 14185.9 19741.4
21158.5 24247.7 14194 20100.6
21264.3 24264.5 14208.3 20201.1
21506.3 24492.1 14222.6 20431
21052.6 24067.3 14236.9 20000
21385.3 24404.1 14259.1 20316.1
22277.7 25282.2 14274.9 21163.8
22549.9 25470 14288.7 21422.4
22837.2 26171.6 14292.7 21695.4
22716.2 26165.3 14306.5 21580.4
22519.6 25941.8 14320.4 21393.7
21687.8 24954 14341.2 20603.4
22538.9 25861.9 14357.9 21411.9
22770.1 26112.1 14370.4 21631.6
"1997" 22654.5 25907.3 14378.7 21521.7
22918.7 26328.4 14393.5 21772.7
23579.1 26934.4 14416.6 22400.2
23314.9 26539.1 14429.2 22149.2
24190.1 27302.4 14439.8 22980.6
24173.6 27267.4 14452.4 22964.9
25180.8 28077.8 14467.2 23921.8
25015.7 28150.4 14492.6 23764.9
24503.8 27640.2 14505.3 23278.6
25114.8 28288 14511.7 23859
24338.7 27674.3 14526.4 23121.8
24206.6 27516.9 14547.6 22996.3
23133.3 26351.7 14562.3 21976.7
23331.5 26536.2 14570.8 22164.9
22852.6 25905.6 14586.3 21710
23579.1 26495.3 14601.9 22400.2
24008.4 26944.2 14626.3 22808
25577.1 28951.6 14633 24298.2
25808.3 29220.9 14648.6 24517.8
25824.8 29078.1 14673.1 24533.5
26237.6 29568.7 14679.8 24925.7
25973.4 29555.7 14697.6 24674.7
26567.8 30144.3 14711 25239.4
27492.5 31237.6 14726.7 26117.9
26997.1 30713.9 14749.1 25647.3
27228.3 30952.2 14764.8 25866.9
28004.3 31909 14773.8 26604.1
28070.4 32135.7 14798.4 26666.9
27855.7 31955.5 14805.1 26463
28532.7 32788.8 14820.8 27106.1
28829.9 33284.1 14836.5 27388.4
28351.1 32828.4 14852.1 26933.6
27542.7 31979.8 14867.8 26165.5
27725 32258.8 14883.4 26338.7
27957 31543.7 14899.1 26559.1
27957 32666.9 14914.7 26559.1
27509.5 32276.3 14930.6 26134
28669.6 33538.2 14955.4 27236.1
28619.8 33475.4 14969 27188.9
29017.6 34165.4 14984.9 27566.7
28885 34014.5 14994 27440.8
28487.3 33586 15010 27062.9
26432.3 30832.2 15032.8 25110.7
28255.3 33022.5 15041.9 26842.5
27642.1 32404.7 15057.9 26260
28387.8 33297.4 15085.4 26968.4
28503.8 33324.5 15099.2 27078.7
29299.3 34324.7 15106.1 27834.3
29547.9 34602.6 15129.4 28070.5
29093.5 33944.5 15139.1 27638.8
28675.2 33613.5 15168.2 27241.5
28625 33611.8 15180.3 27193.8
"1998" 29411.3 34458.8 15190 27940.8
28541.4 33133.9 15207.4 27114.3
29528.4 33931.2 15224.9 28052
28892.7 33780.8 15249.9 27448.1
30130.7 35356.3 15267.4 28624.2
30398.4 35712.5 15277.3 28878.5
30799.9 36053.6 15293.4 29259.9
31301.8 36702.5 15309.4 29736.7
31586.2 37051.4 15325.4 30006.9
31619.7 37225.3 15341.4 30038.7
32238.7 38189.9 15369.5 30626.8
33025 38776.9 15383.5 31373.8
33008.3 38716.9 15397.5 31357.9
34012.1 39713.1 15406.9 32311.5
33577.1 39310 15423.3 31898.2
33777.9 39815.4 15439.8 32089
32807.5 38510.9 15456.2 31167.1
34145.9 39781.3 15472.6 32438.6
33828.1 39245.3 15489.2 32136.7
33928.4 39227 15515.3 32232
33593.8 39402.8 15531.9 31914.2
33627.3 38722.1 15546.2 31945.9
34698 39611.4 15562.7 32963.1
33577.1 38247.7 15572.1 31898.2
34447.1 39190.1 15595.6 32724.7
35568 40453.3 15612.2 33789.6
36170.3 41133.8 15628.7 34361.8
36421.2 41424.1 15645.4 34600.1
36672.2 42107.4 15662 34838.6
35952.8 40808.5 15678.7 34155.1
34748.2 39580.4 15695.4 33010.8
33665.8 38548.9 15712 31982.5
33956.9 38578.8 15728.6 32259
33991.1 38748.9 15745.3 32291.6
30258.1 34098.6 15761.9 28745.2
31713.7 34701 15778.6 30128
31987.6 36701.7 15795.2 30388.2
31610.9 36504.9 15811.8 30030.4
32330.1 37400.1 15828.4 30713.6
31114.3 35266.4 15844.7 29558.6
31319.8 35644.7 15860.6 29753.8
34744.6 37967.6 15876.6 33007.4
33511.7 38333.8 15892.5 31836.1
34385 39749.7 15908.4 32665.7
34624.7 40426.3 15924.3 32893.5
35087.1 40640.5 15940.1 33332.7
36525.5 42524.9 15955.9 34699.2
35874.8 41656.2 15971.8 34081
36354.2 42529.2 15988.4 34536.5
34951.8 40874.9 16005.3 33204.2
36385.7 43094.3 16022.2 34566.4
37349.1 43917.2 16039 35481.7
"1999" 37416.4 44022 16055.1 35545.5
37998.9 45315.7 16070.3 36098.9
37528.4 44587.6 16085.6 35652
36878.6 44265.8 16100.8 35034.7
38290.1 45678 16116 36375.6
37550.8 44639.2 16130.9 35673.2
37662.8 44161 16145.9 35779.7
38514.2 45681 16160.8 36588.5
37438.8 44400.3 16175.8 35566.8
38693.4 46084.8 16190.8 36758.8
39522.4 46977.7 16205.8 37546.3
39298.4 46620.9 16220.8 37333.4
39432.8 47105.6 16235.9 37461.2
39276 47511.1 16250.9 37312.2
40396.2 48872.9 16266 38376.4
38491.8 46396.3 16281.1 36567.2
40060.1 48946.8 16296.1 38057.1
40060.1 48763.6 16311.2 38057.1
39589.6 48259.2 16326.1 37610.1
39365.6 48241.4 16341.1 37397.3
38379.8 47069.9 16356 36460.8
37954.1 46908.1 16371 36056.4
39007.1 48097.5 16386.1 37056.8
37774.8 46648.5 16401.2 35886.1
38805.5 48642.9 16416.3 36865.2
38379.8 48017.9 16431.4 36460.8
40149.8 50189 16447.2 38142.3
40329 50484.9 16463.6 38312.6
40530.6 50805 16479.9 38504.1
39298.4 48654.7 16496.3 37333.4
38626.2 47954.4 16512.6 36694.9
37864.4 46873.5 16529 35971.2
38738.2 48076.1 16545.3 36801.3
39925.7 49151.8 16561.6 37929.4
39074.3 47854.8 16578 37120.6
39679.3 49067.2 16594.7 37695.3
39253.6 48604.7 16611.6 37290.9
39074.3 48305.7 16628.5 37120.6
37438.8 46428.2 16645.4 35566.8
37864.4 47210 16662.3 35971.2
38872.7 48329.4 16679.4 36929
36811.4 45406.1 16696.4 34970.8
38178.1 46847.8 16713.5 36269.2
39679.3 49050.8 16730.6 37695.3
39858.5 49891.7 16747.6 37865.6
39858.5 50533.3 16764.6 37865.6
40821.9 51507.3 16781.7 38780.8
40418.6 51043.7 16798.7 38397.7
40844.3 51617 16818.4 38802.1
40351.4 51334.5 16839.2 38333.8
40149.8 51450.4 16859.9 38142.3
41090.8 52877.4 16880.7 39036.2
40373.8 52821 16900.8 38355.1
"2000" 40844.3 52919.3 16919.2 38802.1
41583.7 53205.8 16937.6 39504.5
39836.1 50906.6 16956.1 37844.3
39836.1 50661.2 16974.5 37844.3
40104.9 51753 16993.4 38099.7
39007.1 50520.3 17012.4 37056.8
37730 48937.8 17031.5 35843.5
37080.3 49020.7 17050.5 35226.3
37662.8 50604.7 17069.7 35779.7
37281.9 50337.9 17088.9 35417.8
39813.7 53006.3 17108.1 37823
40732.3 55465.1 17127.3 38695.7
41673.3 54825.6 17146.8 39589.6
41762.9 54782.1 17167 39674.8
39880.9 51042 17187.1 37886.9
40844.3 52088.6 17207.3 38802.1
41001.1 53499.1 17227.4 38951.1
40687.5 51904.7 17248.1 38653.1
41538.9 52944 17268.8 39461.9
40754.7 51072.8 17289.4 38717
41225.2 50256.3 17310 39163.9
41919.8 53536.6 17331.3 39823.8
41404.4 52759 17353 39334.2
42188.6 54230.1 17374.7 40079.2
42054.2 53121.5 17396.3 39951.5
42323.1 53104.8 17408.8 40206.9
NOTE:The graph compares the performance results of a hypothetical $10,000
investment in Class A and a comparable index. The performance of Class A is
shown after adjustment to reflect the maximum sales load, which is waived for
certain investors. The performance of the index does not reflect brokerage
commissions and other expenses that would be incurred to acquire a comparable
portfolio of securities.
--------------
Sources used are the net asset value of the Fund which is computed daily, The
Financial Times and Datastream.
The Standard and Poor's Composite Index is an unmanaged weighted index of the
stock performance of 500 industrial, transportation, utility and financial
companies. The percentage change in the value of the index includes dividends
reinvested.
AVERAGE ANNUAL TOTAL RETURN - CLASS A
[Figures below represent bar chart in printed piece]
GAM
NORTH AMERICA STANDARD &
GAM CLASS A POOR'S
NORTH AMERICA (AFTER MAXIMUM COMPOSITE
CLASS A SALES LOAD OF 5%) INDEX
YEAR % % %
---- ------------- ----------------- -----------
1 Year 6 0.7 7.25
3 Year 15.84 13.87 19.71
5 Years 21.81 20.57 23.83
Since Inception 14.74 14.18 17.25
<PAGE>
ANNUAL PERFORMANCE - CLASS A
[Figures below represent bar chart in printed piece]
GAM
NORTH AMERICA STANDARD &
GAM CLASS A POOR'S
NORTH AMERICA (AFTER MAXIMUM COMPOSITE
CLASS A SALES LOAD OF 5%) INDEX
------------- ----------------- -----------
1996 24.1 17.9 22.9
1997 29.4 22.9 33.4
1998 29.4 23 28.8
1999 9.3 3.9 21
2000* 3.22 (1.94) (0.42)
GAM
NORTH AMERICA STANDARD &
GAM CLASS A POOR'S
NORTH AMERICA (AFTER MAXIMUM COMPOSITE
CLASS A SALES LOAD OF 5%) INDEX
YEAR % % %
--------------------------------------------------------------------------------
1996 24.10 17.89 22.95
1997 29.41 22.94 33.35
1998 29.44 22.96 28.76
1999 9.32 3.85 21.04
2000* 3.22 (1.94) (0.42)
* 6 months
29
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
THE FACTS - CLASS B SHARES
================================================================================
GAM
North America Average
GAM Class B S&P 1 Month
North America(with deferred Comp Deposit
Class B sales charge) Index Rate
30th June, 2000 US$18.71 1,454.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 3.37 (1.63) (2.66) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 2.86 (2.14) (0.42) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 5.17 0.17 7.25 5.92
--------------------------------------------------------------------------------
Since inception* 9.79 8.58 16.11 5.59
--------------------------------------------------------------------------------
================================================================================
THE FACTS - CLASS C SHARES
================================================================================
GAM
North America Average
GAM Class C S&P 1 Month
North America(with deferred Comp Deposit
Class C sales charge) Index Rate
30th June, 2000 US$18.40 1,454.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 3.31 2.31 (2.66) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 2.74 1.74 (0.42) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 5.14 4.14 7.25 5.92
--------------------------------------------------------------------------------
Since inception* 5.76 5.76 13.88 5.58
--------------------------------------------------------------------------------
================================================================================
* Inception was on 26th May, 1998 for Class B shares and 7th July, 1998 for
Class C shares.
THE COMMENT
We believe we are at an inflection point in the U.S. economy, between the
white hot pace of growth of 1999's final quarter, and a more moderate level of
economic activity ahead. We believe factors are in place to insure the
successful transition to a sustainable non-inflationary rate of growth. The
recent evidence of moderating economic activity confirms, in our view, that
monetary policy is ahead of the curve in confronting what we see as a cyclical,
non-secular, up-tick in the level of core inflation. The behavior of prices in
the general economy remains of utmost concern going forward, as does the level
of wage inflation, with historically low unemployment. Therefore, we expect the
FOMC's restrictive stance to remain in place over the next few months, although
further increases in short-term interest rates may not be required. Demand in
the sectors of the economy most sensitive to the higher cost of capital, such as
housing starts and auto sales, has probably peaked, and thus will be a much
smaller contributor to incremental GDP. With the U.S. equity market representing
55 per cent of world capitalization, dominant companies domiciled in the U.S.
should continue to achieve above average earnings growth, leading to meaningful
stock- price appreciation over a multi-year time frame. Our projection of 15 per
cent earnings growth for the portfolio in 2000, remains in place, supporting our
outlook for the Dow Jones Industrial Average to reach 25,000 - 30,000 by 2008.
We are much more comfortable with the investment backdrop, which has been
unfolding since mid-March. We have witnessed a sharp shift in investor sentiment
away from momentum-driven strategies, to a more fundamentally-based approach to
equity valuation. As monetary policy attempts to decelerate the robust pace of
U.S. growth, companies with sustainable earnings growth and strong balance
sheets, are receiving renewed investor respect. We expect that our focus on top
tier companies, with strong business franchises, and proven proprietary
technologies, will constitute a relatively risk averse portfolio, which can
achieve an above average, absolute total rate of return. The portfolio's
concentration in health care and consumer staples, along with our focus on
industry-leading technology companies benefited the portfolio's results for the
first six months of 2000. The health care sector specifically is receiving
renewed attention due to their profitable businesses with consistent and
recurring earnings streams, supportive demographics, strong R&D budgets and rich
drug pipelines. A variety of purchases and sales were made for the portfolio
during this time frame, including new positions in EMC Corp and United Parcel
Service.
30
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
================================================================================
MARKET
VALUE
HOLDINGS DESCRIPTION US$
-------------------------------------------------------------------
EQUITIES - 99.4%
AUTOMOBILES - 2.8%
18,418 Ford Motor 791,974
*2,411 Visteon 29,233
----------
821,207
----------
BANKING - 3.5%
12,525 Chase Manhattan 576,933
9,750 SunTrust Banks 445,453
----------
1,022,386
----------
BEVERAGES & TOBACCO - 9.0%
22,200 Coca-Cola 1,275,113
15,900 PepsiCo 706,556
25,100 Philip Morris New 666,719
----------
2,648,388
----------
BROADCASTING & PUBLISHING - 4.7%
10,000 Fox Entertainment Group A 303,750
8,750 McGraw-Hill 472,500
*8,950 Viacom B 610,278
----------
1,386,528
----------
BUSINESS & PUBLIC SERVICES - 4.6%
*2,355 Agilent Technologies 173,681
*12,050 Microsoft 964,000
3,500 United Parcel Service B 206,500
----------
1,344,181
----------
DATA PROCESSING & REPRODUCTION - 4.6%
6,200 Hewlett-Packard 774,225
5,350 IBM 586,159
----------
1,360,384
----------
ELECTRONIC COMP. & INSTRUMENTS - 13.3%
*20,000 Cisco Systems 1,271,250
*1,500 EMC 115,407
17,750 Intel 2,372,953
4,350 Rockwell International 137,025
----------
3,896,635
----------
ENERGY SOURCES - 5.2%
10,750 BP Amoco ADR 608,047
2,700 Chevron 228,994
8,712 Exxon Mobil 683,892
----------
1,520,933
----------
FINANCIAL SERVICES - 8.3%
9,050 American Express 471,731
14,200 Citigroup 855,550
9,750 Fannie Mae 508,828
6,250 Goldman Sachs Group 592,969
----------
2,429,078
----------
FOOD & HOUSEHOLD PRODUCTS - 1.4%
7,050 Colgate-Palmolive 422,119
----------
422,119
----------
HEALTH & PERSONAL CARE - 22.0%
12,000 Abbott Laboratories 534,750
9,750 Bristol-Myers Squibb 567,938
1,100 Estee Lauder A 54,381
13,450 Gillette 469,909
10,150 Johnson & Johnson 1,034,031
15,000 Merck 1,149,375
46,250 Pfizer 2,220,000
7,650 Procter & Gamble 437,962
----------
6,468,346
----------
INSURANCE - 1.8%
5,150 Marsh & McLennan 537,853
----------
537,853
----------
LEISURE & TOURISM - 1.6%
14,750 McDonald's 485,828
----------
485,828
----------
MERCHANDISING - 5.2%
26,150 Walgreen 841,703
11,950 Wal-Mart Stores 688,619
----------
1,530,322
----------
MULTI-INDUSTRY - 6.3%
29,650 General Electric (USA) 1,571,450
8,850 Honeywell International 298,134
----------
1,869,584
----------
TELECOMMUNICATIONS - 4.6%
4,050 Bell Atlantic 205,791
13,300 BellSouth 566,912
13,264 SBC Communications 573,668
----------
1,346,371
----------
TRANSPORTATION - ROAD & RAIL - 0.5%
9,100 Norfolk Southern 135,363
----------
135,363
----------
TOTAL EQUITIES (COST $25,321,712) 29,225,506
----------
PREFERRED SHARES - 0.3%
BROADCASTING & PUBLISHING - 0.3%
1,700 News Corporation Pfd ADR 80,750
----------
TOTAL PREFERRED SHARES (COST $34,315) 80,750
----------
TIME DEPOSIT - 0.7%
UNITED STATES - 0.7%
$222,460 Citibank
6.00% 2000-07-03 222,460
----------
TOTAL TIME DEPOSIT (COST $222,460) 222,460
----------
TOTAL INVESTMENTS (COST $25,578,487**) - 100.4% 29,528,716
NET CURRENT LIABILITIES - (0.4)% (126,199
----------
TOTAL NET ASSETS - 100.0% 29,402,517
==========
* Non-income producing security.
** Cost for federal income tax purposes is identical.
Glossary of Terms:
ADR - American Depositary Receipt
See notes to financial statements.
================================================================================
31
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
GAMERICA CAPITAL FUND
FUND MANAGEMENT
--------------------------------------------------------------------------------
[Photo omitted]
GORDON GRENDER, DIRECTOR, HAS BEEN ASSOCIATED WITH GAM SINCE 1983. HE HAS BEEN
ACTIVELY INVOLVED IN FUND MANAGEMENT IN NORTH AMERICAN STOCK MARKETS SINCE 1974.
HE COMMENCED MANAGEMENT OF GAMERICA CAPITAL FUND ON 12TH MAY, 1995. MR. GRENDER
ALSO MANAGES GAMERICA INC., AN OFFSHORE FUND WITH SIMILAR INVESTMENT OBJECTIVES.
The Fund's investment objective is to seek long-term capital appreciation,
generally through investment in equity securities issued by companies in the
United States. However, if the Fund determines that the long-term capital
appreciation of debt securities may equal or exceed the return on equity
securities, it may be substantially invested in debt securities of companies and
governments, their agencies and instrumentalities. Any income realized by the
Fund on its investments will be incidental to its goal of long-term capital
appreciation.
REPORT TO SHAREHOLDERS
--------------------------------------------------------------------------------
THE FACTS - CLASS A SHARES
================================================================================
GAMerica
Capital
Class A (after Average
GAMerica maximum S&P 1 Month
Capital sales load Comp Deposit
Class A of 5%) Index Rate
30th June, 2000 US$23.49 US$24.73 1,454.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 5.62 0.34 (2.66) 1.58
--------------------------------------------------------------------------------
Jan-June, 2000 9.51 4.03 (0.42) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 20.08 14.08 7.25 5.92
--------------------------------------------------------------------------------
2 years to June, 2000 21.14 18.07 14.81 5.59
--------------------------------------------------------------------------------
3 years to June, 2000 30.63 28.42 19.71 5.64
--------------------------------------------------------------------------------
Since inception 24.15 22.91 24.08 5.62
--------------------------------------------------------------------------------
================================================================================
Performance is calculated on a total return basis. Class A inception was on
12th May 1995, Class B and Class C on 26th May, 1998. Past performance is not
necessarily indicative of future performance. The investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
32
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
[Figures below represent line chart in printed piece]
GAMerica
Capital
Standard & Average Class A (after
GAMerica Poor's 1 Month maximum
Capital Composite Deposit sales load
Class A Index Rate of 5%)
------------- ------------ ------ -----
"1995" 10000 10000 10000 10000
10006 9883.96 10011.4 9505.7
9943 9973.88 10022.8 9445.85
9946 10147.6 10034.1 9448.7
9952 10065.5 10045.5 9454.4
9958 10297.3 10057 9460.1
9964 10490.9 10068.4 9465.8
9970 10401.3 10079.8 9471.5
9976 10628.3 10091.2 9477.2
9982 10700.7 10102.9 9482.9
9990 10585.9 10114.5 9490.5
9997 10769 10126.1 9497.15
10002 10697.8 10137.7 9501.9
10007 10629.7 10148.8 9506.65
10121 10713.3 10159.8 9614.95
10153 10735.5 10170.9 9645.35
10190 10812.3 10181.9 9680.5
10241 10987 10193.2 9728.95
10282 11197.1 10204.4 9767.9
10246 11171.1 10215.6 9733.7
10244 11227.8 10226.8 9731.8
10209 11196 10238.1 9698.55
10250 11239.9 10249.2 9737.5
10217 11301.9 10260.4 9706.15
10233 11157.8 10271.6 9721.35
10491 11372.3 10282.7 9966.45
10458 11418.9 10293.8 9935.1
10529 11565.8 10304.9 10002.5
10406 11569.2 10316 9885.7
10480 11709.6 10327.1 9956
10383 11917.5 10338.4 9863.85
10075 11900.7 10349.6 9571.25
10050 11821.4 10360.9 9547.5
10137.3 11903.4 10372.2 9630.45
"1996" 9935.18 11923.7 10383.4 9438.42
9783.58 11640.9 10394.4 9294.4
9581.44 11840 10405.3 9102.36
9813.9 12034.9 10416.3 9323.2
9864.43 12315.5 10427.2 9371.21
9874.54 12718.6 10437.7 9380.81
9985.72 12561.3 10448.2 9486.43
10268.7 12782 10458.7 9755.28
10268.7 12502 10469.2 9755.28
10228.3 12296.3 10479.5 9716.87
10662.9 12455.6 10489.8 10129.7
10723.5 12639.5 10500.1 10187.3
10844.8 12545.3 10510.4 10302.6
11208.7 12752.1 10520.7 10648.2
10865 12385.1 10531.2 10321.8
11047 12553.1 10541.6 10494.6
11612.9 12721.9 10552.1 11032.3
11481.5 12496.9 10562.5 10907.5
11623 12706.1 10573.1 11041.9
11845.4 13039.4 10583.6 11253.1
12714.6 13232.1 10594.1 12078.9
12623.6 13054.5 10604.6 11992.5
12744.9 13141.8 10615.1 12107.7
12563 13001.6 10625.7 11934.8
12552.9 13026.5 10636.2 11925.2
12704.5 13106.2 10646.8 12069.3
12583.2 12853.8 10657.3 11954
12249.7 12639.2 10668.1 11637.2
12037.4 12498.8 10678.8 11435.6
11997 12449 10689.5 11397.2
12482.2 12975.4 10700.3 11858
12704.5 12973.4 10711 12069.3
12805.6 13039.9 10721.8 12165.3
12593.3 13081.2 10732.6 11963.7
12704.5 12791.6 10743.3 12069.3
12411.4 12869.6 10754.1 11790.8
12684.3 13363.3 10764.9 12050.1
12775.2 13496.4 10764.9 12136.5
12502.4 13485.5 10791 11877.2
12664.1 13791.2 10797.2 12030.9
12704.5 13781.2 10808 12069.3
12552.9 13986.7 10818.9 11925.2
12209.3 13797.4 10829.8 11598.8
11986.9 13859.1 10840.7 11387.6
12037.4 14397.5 10851.2 11435.6
12037.4 14537.2 10861.7 11435.6
11805 14761.8 10872.2 11214.7
11815.1 14931 10882.8 11224.3
11653.4 14592.9 10893.3 11070.7
11602.8 14382.2 10904.4 11022.7
11663.5 14787.3 10915.5 11080.3
11838.8 14949.6 10926.6 11246.8
"1997" 11982.9 14782.2 10937.7 11383.7
12193.5 15014.7 10948.9 11583.8
11916.4 15350 10960.1 11320.6
11982.9 15243.9 10971.3 11383.7
12437.4 15559.1 10982.5 11815.5
12415.2 15632.2 10993.7 11794.4
12537.1 16012.6 11005 11910.3
12382 15885.4 11016.3 11762.8
11927.5 15674.1 11027.5 11331.1
11883.1 15960.4 11038.8 11289
11705.8 15732.2 11050 11120.5
11606 15558 11061.3 11025.7
11340 15360.9 11072.5 10773
10763.5 15049.4 11083.8 10225.4
10896.6 14653 11095.6 10351.7
11151.5 15228.7 11107.4 10593.9
11007.4 15215.2 11119.3 10457
11517.3 16167.5 11131.1 10941.5
11816.6 16408.3 11143 11225.8
11883.1 16513.1 11154.8 11289
12182.4 16862.9 11166.7 11573.3
12603.7 16893.7 11178.6 11973.5
12503.9 17093.5 11190.5 11878.7
12936.2 17802.2 11202.4 12289.4
13113.6 17916.4 11214.3 12457.9
13545.9 17695.1 11226.3 12868.6
13789.7 18291.8 11238.2 13100.2
14044.7 18293 11250.1 13342.5
13944.9 18271.3 11262 13247.7
14244.2 18746.2 11274 13532
14543.5 18918.8 11285.9 13816.3
14654.4 18652.9 11297.8 13921.7
14643.3 18004.6 11309.7 13911.1
14752.9 18465 11321.6 14015.3
15001.1 17989.3 11333.5 14251
15384.6 18586.9 11345.4 14615.3
15926 18490 11357.5 15129.7
16388.4 19028.4 11369.5 15569
17110.2 18928.4 11381.5 16254.7
17155.4 19331.1 11393.5 16297.6
17031.3 19376.1 11405.7 16179.7
16726.8 18924.6 11417.9 15890.4
17076.4 18879.9 11430 16222.6
16670.4 18343.9 11442.2 15836.8
16591.4 18608.4 11454.3 15761.8
16320.7 18631.2 11466.5 15504.7
16760.6 19334.6 11478.8 15922.6
16670.4 19186.2 11491 15836.8
17121.5 19762.4 11503.2 16265.4
16410.9 19157.6 11516.1 15590.4
16048.3 19030.7 11529 15245.9
16011.6 18829.2 11541.9 15211
"1998" 16477.4 19611.1 11554.8 15653.6
16391.6 18664.5 11568.1 15572
17139.5 19351 11581.4 16282.5
17249.8 19278.1 11594.7 16387.3
17335.6 19741 11608 16468.9
17936.4 20401.6 11621.2 17039.6
18353.2 20561.5 11633.4 17435.6
18610.7 20852.3 11645.6 17680.2
18904.9 21163.6 11657.8 17959.7
18819.1 21297.9 11670 17878.2
19015.3 21564.7 11682.5 18064.5
19542.4 22187.5 11694.9 18565.3
20020.6 22118.6 11707.3 19019.6
20584.5 22675.2 11719.8 19555.3
20474.2 22541.1 11732.3 19450.5
21124 22688.1 11744.8 20067.8
21295.6 22394.7 11757.3 20230.8
21160.8 22665.8 11769.8 20102.7
20768.4 22412.1 11782.4 19730
20645.8 22430.2 11795.1 19613.6
20498.7 22471.6 11807.7 19473.8
20621.3 22080.1 11820.3 19590.2
20265.8 22552.9 11832.9 19252.5
19996.1 22255 11845.5 18996.3
20118.7 22297.8 11858 19112.7
20547.8 22963.5 11870.5 19520.4
20976.9 23237.7 11883.1 19928
21099.5 23607 11895.8 20044.5
21393.7 24067.9 11908.5 20324
20817.5 23142.1 11921.1 19776.6
20106.4 22739.9 11933.8 19101.1
19983.8 22112.6 11946.5 18984.6
19443.8 21576.9 11959.1 18471.7
19294.2 21958.5 11971.8 18329.5
18084.4 20865.7 11984.4 17180.2
17772.6 19790 11997.1 16884
18071.9 20511 12009.8 17168.3
18084.4 20741.5 12022.4 17180.2
18121.8 21249.2 12035 17215.7
17435.9 20398.1 12047.6 16564.1
16375.7 20056.8 12059.8 15557
17236.3 21531.2 12071.9 16374.5
17685.3 21828.2 12084 16801
18708 22405.7 12096.1 17772.6
19132.1 23275.8 12108.2 18175.4
19369 22970.3 12120.2 18400.6
19556.1 23748.8 12132.3 18578.3
21701.3 24342.7 12144.3 20616.2
20267 24030.8 12156.7 19253.7
20267 23827.2 12169.5 19253.7
19903.2 24274.3 12182.3 18908.1
21565 25062.2 12195.1 20486.7
"1999" 21502 25129.2 12208 20426.9
21967.8 26073.2 12219.5 20869.4
21993 25428.6 12231.1 20893.3
21841.9 25065.3 12242.7 20749.8
21967.8 26185.8 12254.2 20869.4
21753.8 25368.7 12265.7 20666.1
21275.4 25185.3 12277 20211.6
21111.8 25378 12288.4 20056.2
21174.7 25366.3 12299.8 20116
20973.3 26133.7 12311.2 19924.6
21489.4 26532.1 12322.6 20414.9
21627.9 26635 12334.1 20546.5
21565 26303.5 12345.5 20486.7
21955.2 26534 12356.9 20857.5
22559.5 27661.5 12368.4 21431.5
22962.3 27066 12379.8 21814.2
23025.3 27849.3 12391.3 21874
23163.8 27411 12402.8 22005.6
23528.8 27619.2 12414.2 22352.4
23818.4 27477.8 12425.5 22627.5
24145.7 27330.1 12436.9 22938.4
23893.9 26752.1 12448.3 22699.2
24082.8 27291.2 12459.7 22878.6
23856.2 26596.6 12471.2 22663.3
24309.4 27614.8 12482.7 23093.9
24359.7 27055.1 12494.2 23141.7
25505.3 28623.3 12505.8 24230.1
26034.1 28878 12518.2 24732.3
26323.6 29203.7 12530.7 25007.4
25656.4 27937.2 12543.1 24373.6
25883 27362.6 12555.6 24588.8
25561.9 26783.6 12568 24283.8
25664.4 27354.5 12580.4 24381.2
25433.8 27545.2 12592.9 24162.1
25177.6 27792 12605.3 23918.7
25087.8 27983.5 12617.8 23833.5
25100.7 27875 12630.7 23845.6
24908.5 27546.8 12643.5 23663.1
24690.7 26355.6 12656.4 23456.1
24985.3 26474.7 12669.2 23736.1
25433.8 27579.6 12682.2 24162.1
24921.3 25756.6 12695.2 23675.2
24767.5 26883.5 12708.2 23529.2
24998.2 28155.8 12721.1 23748.2
25113.5 28313.6 12734.1 23857.8
25536.3 28854.1 12747 24259.5
25715.7 29397.1 12760 24429.9
25485.1 29292.5 12773 24210.8
25446.6 29643.9 12786.7 24174.3
25638.8 29314.1 12802.5 24356.9
25728.7 29403.5 12818.3 24442.3
26556.2 30182.3 12834.1 25228.4
"2000" 27732.7 30414.8 12849.9 26346.1
26646.7 29846.5 12864.2 25314.3
26957 30343.8 12878.2 25609.1
27189.7 29857.7 12892.2 25830.2
26375.2 28182 12906.2 25056.4
26737.2 29519.2 12920.5 25400.3
26556.2 28753.9 12934.9 25228.4
26181.2 27909.7 12949.4 24872.2
25741.6 27652.3 12963.8 24454.6
26801.8 29231.4 12978.4 25461.7
27189.7 28945.7 12993 25830.2
27913.7 30392.8 13007.6 26518
28702.4 31707 13022.2 27267.3
28754.1 31114.2 13036.9 27316.4
28702.4 31489.8 13052.1 27267.3
25664.1 28177.7 13067.4 24380.9
26969.9 29803.8 13082.8 25621.4
27073.3 30182.2 13098.1 25719.7
27319 29777.5 13113.6 25953
27448.3 29541.5 13129.3 26075.8
27474.1 29257 13145 26100.4
26776 28661.7 13160.8 25437.2
28935.1 30733 13176.6 27488.3
29038.5 30316.9 13193.1 27586.6
29478.1 30479.8 13209.6 28004.2
30021.1 30007.9 13226.1 28520.1
30370.2 30287.6 13242.6 28851.7
NOTE: The graph compares the performance results of a hypothetical $10,000
investment in Class A and a comparable index. The performance of Class A is
shown after adjustment to reflect the maximum sales load, which is waived for
certain investors. The performance of the index does not reflect brokerage
commissions and other expenses that would be incurred to acquire a comparable
portfolio of securities.
--------------
Sources used are the net asset value of the Fund which is computed daily, The
Financial Times and Datastream.
The Standard and Poor's Composite Index is an unmanaged weighted index of the
stock performance of 500 industrial, transportation, utility and financial
companies. The percentage change in the value of the index includes dividends
reinvested.
AVERAGE ANNUAL TOTAL RETURN - CLASS A
[Figures below represent bar chart in printed piece]
GAMERICA
CAPITAL STANDARD &
GAMERICA CLASS A POOR'S
CAPITAL (AFTER MAXIMUM COMPOSITE
YEAR CLASS A SALES LOAD OF 5%) INDEX
---- ------- ----------------- -----
1 Year 20.08 14.08 7.25
2 Years 21.14 18.07 14.81
3 Years 30.63 28.42 19.71
Since Inception 24.15 22.91 24.08
ANNUAL PERFORMANCE - CLASS A
[Figures below represent bar chart in printed piece]
GAMERICA
CAPITAL STANDARD &
GAMERICA CLASS A POOR'S
CAPITAL (AFTER MAXIMUM COMPOSITE
CLASS A SALES LOAD OF 5%) INDEX
------- ----------------- ----------
1996 18.3 12.4 22.9
1997 37.3 30.4 33.4
1998 30.6 24.1 28.8
1999 29 22.6 21
2000 9.51 4.03 (0.42)
GAMERICA
CAPITAL STANDARD &
GAMERICA CLASS A POOR'S
CAPITAL (AFTER MAXIMUM COMPOSITE
CLASS A SALES LOAD OF 5%) INDEX
YEAR % % %
--------------------------------------------------------------------------------
1996 18.31 12.40 22.95
1997 37.28 30.41 33.35
1998 30.59 24.06 28.76
1999 28.97 22.52 21.04
2000* 9.51 4.03 (0.42)
* 6 months
33
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
THE FACTS - CLASS B SHARES
GAMerica
Capital Average
GAMerica Class B S&P 1 Month
Capital (with deferred Comp Deposit
Class B sales charge) Index Rate
30th June, 2000 US$23.54 1,454.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 5.42 0.42 (2.66) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 9.29 4.29 (0.42) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 19.28 14.28 7.25 5.92
--------------------------------------------------------------------------------
Since inception* 20.05 18.87 16.11 5.59
--------------------------------------------------------------------------------
THE FACTS - CLASS C SHARES
GAMerica
Capital Average
GAMerica Class C S&P 1 Month
Capital (with deferred Comp Deposit
Class C sales charge) Index Rate
30th June, 2000 US$23.37 1,454.60
--------------------------------------------------------------------------------
% % % %
--------------------------------------------------------------------------------
Quarter to June, 2000 5.46 4.46 (2.66) 1.58
--------------------------------------------------------------------------------
Jan - June, 2000 9.10 8.10 (0.42) 3.06
--------------------------------------------------------------------------------
Average annual total return:
--------------------------------------------------------------------------------
1 year to June, 2000 19.14 18.14 7.25 5.92
--------------------------------------------------------------------------------
Since inception* 19.64 19.64 16.11 5.59
--------------------------------------------------------------------------------
* Inception was on 26th May, 1998 for Class B and Class C shares.
THE COMMENT
Measured by the Standard & Poor's Composite Index the US stockmarket fell by
0.4% in the first six months of the year and measured by the more technology
weighted NASDAQ Index the fall was 2.5%. These relatively small net changes
however, mask, what was a very volatile market in the technology sector in the
period.
With signs of a slowing economy the Federal Reserve left interest rates
unchanged in June and Chairman Greenspan recently said that if trends towards
economic moderation continue, they would be unlikely to raise short-term rates
in August. On balance, we would be surprised to see further tightening before
the Presidential election. It should be remembered that the Federal Reserve has
incorrectly forecast a slowdown for the past four years. Oil prices have
however, fallen significantly from their recent highs and retail sales are
looking less buoyant.
With the background of a slowing economy and many unexpected announcements
of corporate earnings missing both the company's own and analysts estimates,
some caution is warranted.
The managers adopted a cautious policy during this period and maintained a
high degree of liquidity averaging over 20%. In spite of this, a number of the
Fund's holdings performed well and as a consequence the Fund outperformed both
the Standard &Poor's Composite and the NASDAQ indices. We reduced liquidity
during the period and increased exposure to the insurance, oil and gas and
technology sectors while reducing the size of the position in Power One,
following its more than tripling in price.
We will continue to try to find reasonably priced investments for the Fund.
34
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
STATEMENT OF INVESTMENTS AS AT 30TH JUNE, 2000 (UNAUDITED)
Market
Value
Holdings Description US$
--------------------------------------------------------------------------------
BONDS - 0.3%
TELECOMMUNICATIONS - 0.3%
Globalstar LP/Capital 11.375%
$663,000 2004-02-15 195,585
----------
TOTAL BONDS (COST $455,010) 195,585
----------
EQUITIES - 79.0%
AUTOMOBILE PARTS & EQUIPMENT - 4.1%
*200,000 Keystone Automotive Industries 1,387,500
*200,000 United Auto Group 1,825,000
----------
3,212,500
----------
BANKING - 1.5%
28,000 Bank of America 1,204,000
----------
1,204,000
----------
BROADCASTING & PUBLISHING - 3.5%
*15,000 Liberty Digital A 450,000
*30,800 Pegasus Communications A 1,511,125
*84,000 TCI Satellite Entertainment A 729,750
----------
2,690,875
----------
BUILDING MATERIALS & COMPONENTS - 4.0%
*63,000 Trex 3,150,000
----------
3,150,000
----------
BUSINESS & PUBLIC SERVICES - 3.5%
28,170 Computer Associates International 1,441,952
*50,000 Point of Sale 1,174,220
*27,000 Professional Staff ADR 121,500
----------
2,737,672
----------
CONSTRUCTION & HOUSING - 0.2%
*9,765 Palm Harbor Homes 141,592
----------
141,592
----------
DATA PROCESSING & REPRODUCTION - 1.6%
*40,000 Edgar Online 132,500
*35,000 Optibase 614,687
*164,250 TrueTime 482,484
----------
1,229,671
----------
ELECTRICAL & ELECTRONICS - 0.3%
*44,000 Technology Solutions 272,250
----------
272,250
----------
ELECTRONIC COMP. & INSTRUMENTS - 12.4%
*153,846 Chyron 442,307
*76,000 Power-One 8,659,250
*100,000 Sheldahl 543,750
----------
9,645,307
----------
ENERGY SOURCES - 5.1%
*30,000 Barrett Resources 913,125
20,000 Burlington Resources 765,000
*100,000 Tom Brown 2,306,250
----------
3,984,375
----------
FINANCIAL SERVICES - 4.5%
32,000 Bear Stearns Companies 1,332,000
122,500 Scottish Annuity & Life Holdings 1,025,938
*26,400 Titan 1,181,400
----------
3,539,338
----------
FOOD & HOUSEHOLD PRODUCTS - 5.6%
105,000 Delta & Pine Land 2,631,563
33,000 Pharmacia 1,705,688
----------
4,337,251
----------
HEALTH & PERSONAL CARE - 4.2%
27,200 American Home Products 1,598,000
*4,500 Clintrials Research 15,750
16,800 Intimate Brands A 331,800
*66,400 Neopharm 1,302,064
----------
3,247,614
----------
INSURANCE - 11.1%
31,000 American General 1,891,000
35,000 Chubb 2,152,500
85,000 ESG Re 334,687
*100,000 Policy Management Systems 1,537,500
*7,800 Sierra Health Services 24,863
50,000 XL Capital A 2,706,250
----------
8,646,800
----------
LEISURE & TOURISM - 0.0%
*7,500 Party City 20,250
----------
20,250
----------
MACHINERY & ENGINEERING - 0.6%
40,000 Gerber Scientific 460,000
----------
460,000
----------
MERCHANDISING - 2.2%
94,250 Fred's A 1,696,500
*12,500 Jumbosports 25
----------
1,696,525
----------
MISC. MATERIALS & COMMODITIES - 4.1%
*300,000 Abraxas Petroleum 450,000
*24,000 Best Buy 1,518,000
*200,000 Foamex International 1,212,500
----------
3,180,500
----------
REAL ESTATE - 1.3%
20,000 Bradley Real Estate 426,250
*80,000 Fairfield Communities 630,000
----------
1,056,250
----------
RECREATION, OTHER CONSUMER GOODS - 2.9%
100,000 Fortune Brands 2,306,250
----------
2,306,250
----------
TELECOMMUNICATIONS - 5.5%
*89,000 I-Link 478,375
50,000 Sprint 2,550,000
*27,000 Worldcom 1,238,625
----------
4,267,000
----------
35
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS GAM
<PAGE>
Market
Value
Holdings Description US$
--------------------------------------------------------------------------------
TRANSPORTATION - ROAD & RAIL - 0.8%
*100,000 USA Truck 587,500
----------
587,500
----------
TOTAL EQUITIES (COST $50,025,894) 61,613,520
----------
TIME DEPOSIT - 20.9%
UNITED STATES - 20.9%
$16,336,725 Morgan Guaranty
6.00% 2000-07-03 16,336,725
----------
TOTAL TIME DEPOSIT (COST $16,336,725) 16,336,725
----------
TOTAL INVESTMENTS (COST $66,817,629**) - 100.2% 78,145,830
NET CURRENT LIABILITIES - (0.2)% (149,961)
----------
TOTAL NET ASSETS - 100.0% 77,995,869
==========
* Non-income producing security.
** Cost for federal income tax purposes is identical.
Glossary of Terms:
ADR - American Depositary Receipt
See notes to financial statements.
36
====
GAM INTERNATIONAL FUND / STATEMENT OF INVESTMENTS
<PAGE>
This page is intentionally left blank.
<PAGE>
Statements of Assets and Liabilities
================================================================================
AS AT 30TH JUNE, 2000 (UNAUDITED)
GAM GAM
GLOBAL INTERNATIONAL
-----------------------------
ASSETS (IN US$)
Investments in securities at value $62,022,605 $914,788,711
Cash - Foreign currencies -- --
Receivables:
Securities sold 3,674,963 95,341,582
Capital shares sold 53,781 1,534,361
Dividends, interest and other 71,757 2,678,975
Net equity in foreign currency exchange
contracts (Note 6) -- 5,380,477
Deferred organizational expenses and
other assets 30,713 112,351
----------- --------------
TOTAL ASSETS 65,853,819 1,019,836,457
----------- --------------
LIABILITIES
Due to Custodian 1,148,489 70,397
Payables:
Loans -- 10,800,000
Securities purchased 2,642,119 84,442,301
Capital shares redeemed 191,553 7,791,029
Accrued management fee 170,854 2,588,674
Accrued distribution fee 64,661 955,355
Accrued expenses and other 157,859 2,289,584
----------- --------------
TOTAL LIABILITIES 4,375,535 108,937,340
----------- --------------
NET ASSETS $61,478,284 $910,899,117
=========== ==============
SOURCE OF NET ASSETS
Net capital paid in on shares of capital
stock (Note 4) $59,624,029 $821,435,341
Accumulated net investment income/(loss) (1,955,823) 38,122,231
Accumulated net realized gains/(losses) 174,903 (15,936,514)
Net unrealized appreciation/(depreciation) 3,635,175 67,278,059
----------- --------------
NET ASSETS $61,478,284 $910,899,117
=========== ==============
CLASS A SHARES OUTSTANDING 2,468,905 28,325,841
CLASS A NET ASSETS $45,929,334 $743,482,068
Net asset value and redemption value per
share (Note 4) $18.60 $26.25
Offering price per share (100/95 x net asset
value per share
reduced on sales of $100,000 or more) $19.58 $27.63
CLASS B SHARES OUTSTANDING 375,893 1,965,271
CLASS B NET ASSETS $6,941,692 $51,684,541
Net asset value and offering price
per share (Note 4) $18.47 $26.30
CLASS C SHARES OUTSTANDING 281,193 1,929,902
CLASS C NET ASSETS $5,185,884 $50,694,764
Net asset value and offering price
per share (Note 4) $18.44 $26.27
CLASS D SHARES OUTSTANDING 186,976 2,494,258
CLASS D NET ASSETS $3,421,374 $65,037,744
Net asset value and redemption value
per share (Note 4) $18.30 $26.07
Offering price per share (100/96.5 x net asset
value per share reduced on sales of
$100,000 or more) $18.96 $27.02
Identified cost of investments $58,386,262 $852,411,511
See notes to financial statements.
38
====
GAM FUNDS INC / STATEMENTS OF ASSETS AND LIABILITIES
<PAGE>
GAM GAM GAM
PACIFIC JAPAN GAM NORTH GAMERICA
BASIN CAPITAL EUROPE AMERICA CAPITAL
--------------------------------------------------------------------------------
$37,634,887 $44,839,471 $29,121,572 $29,528,716 $78,145,830
174,279 3,871,675 869,339 -- --
1,193,410 122,653 2,601,522 -- --
1,479 253,602 161,257 24,517 161,289
35,806 186,450 76,161 24,981 61,728
------------ ----------- ----------- ----------- -----------
-- -- -- -- --
42,674 27,825 25,311 25,286 46,752
------------ ----------- ----------- ----------- -----------
39,082,535 49,301,676 32,855,162 29,603,500 78,415,599
------------ ----------- ----------- ----------- -----------
-- -- -- 23,280 50,782
-- -- -- -- --
------------ ----------- ----------- ----------- -----------
414,477 139,061 3,373,769 -- --
52,015 259,040 -- 21,294 97,980
101,159 128,200 69,772 78,704 178,640
26,789 38,592 23,439 32,933 66,345
54,974 56,529 62,466 44,772 25,983
------------ ----------- ----------- ----------- -----------
649,414 621,422 3,529,446 200,983 419,730
------------ ----------- ----------- ----------- -----------
$38,433,121 $48,680,254 $29,325,716 $29,402,517 $77,995,869
============ =========== =========== =========== ===========
$53,084,587 $39,649,686 $22,291,075 $21,581,964 $59,642,012
(872,930) (2,090,061) (139,433) (128,474) (17,778)
(14,960,903) 5,882,020 5,541,963 3,998,798 7,043,434
1,182,367 5,238,609 1,632,111 3,950,229 11,328,201
------------ ----------- ----------- ----------- -----------
$38,433,121 $48,680,254 $29,325,716 $29,402,517 $77,995,869
============ =========== =========== =========== ===========
2,685,685 3,532,472 1,798,570 1,222,528 2,411,958
$31,789,927 $44,459,462 $25,798,117 $23,095,717 $56,666,513
$11.84 $12.59 $14.34 $18.89 $23.49
$12.46 $13.25 $15.09 $19.88 $24.73
359,247 190,132 199,201 170,699 464,535
$4,452,913 $2,486,620 $2,845,490 $3,193,431 $10,935,979
$12.40 $13.08 $14.28 $18.71 $23.54
91,168 130,847 49,037 169,178 444,744
$999,715 $1,734,172 $682,109 $3,113,369 $10,393,377
$10.97 $13.25 $13.91 $18.40 $23.37
102,539
$1,190,566
$11.61
$12.03
$36,451,726 $39,628,668 $27,488,761 $25,578,487 $66,817,629
39
====
GAM FUNDS INC / STATEMENTS OF ASSETS AND LIABILITIES
<PAGE>
STATEMENTS OF OPERATIONS
===============================================================================
FOR THE SIX MONTHS ENDED 30TH JUNE, 2000 (UNAUDITED)
GAM GAM
GLOBAL INTERNATIONAL
-----------------------------
INVESTMENT INCOME (IN US$)
Dividends (Note 5) $240,129 $6,227,138
Interest (Note 5) 40,265 1,015,655
------------ -------------
280,394 7,242,793
------------ -------------
Expenses
Investment advisory fee (Note 2) 383,406 6,149,076
Custodian fees and expenses 47,320 970,132
Transfer agent fees and expenses 72,192 743,550
Shareholder servicing fees 38,216 907,094
Distribution Fee - Class A (Note 2) 85,790 1,520,028
Distribution Fee - Class B (Note 2) 40,883 313,470
Distribution Fee - Class C (Note 2) 32,283 329,713
Distribution Fee - Class D (Note 2) 11,088 202,765
Professional fees 21,294 39,858
Administrative expenses 57,252 724,334
Printing 21,840 281,820
Amortization of organization costs -- --
Filing fees 19,894 39,010
Other 13,038 61,382
------------ -------------
Total operating expenses 844,496 12,282,232
Interest expense 57,115 423,872
------------ -------------
Total expenses 901,611 12,706,104
------------ -------------
Net investment loss (621,217) (5,463,311)
------------ -------------
REALIZED AND UNREALIZED GAIN/(LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY
Net realized gain/(loss) from:
Securities and futures 4,954,681 40,397,197
Foreign currency transactions (235,603) 22,822,933
------------ -------------
4,719,078 63,220,130
------------ -------------
Unrealized appreciation/(depreciation)
for the period:
Securities and futures (16,380,951) (280,438,105)
Foreign currency translation of assets and
liabilities other than investments (526) (18,139,869)
------------ -------------
(16,381,477) (298,577,974)
------------ -------------
Net gain/(loss) on investments and
foreign currencies (11,662,399) (235,357,844)
------------ -------------
Net increase/(decrease) on net assets
from operations $(12,283,616) $(240,821,155)
============ =============
See notes to financial statements.
40
====
GAM FUNDS INC / STATEMENTS OF OPERATIONS
<PAGE>
GAM GAM GAM GAM
PACIFIC JAPAN GAM NORTH GAMERICA
BASIN CAPITAL EUROPE AMERICA CAPITAL
--------------------------------------------------------------------------------
$ 370,202 $ 193,272 $ 203,267 $ 228,162 $ 274,966
39,520 10,361 46,247 4,690 353,084
------------- ------------- ------------- ------------ -----------
409,722 203,633 249,514 232,852 628,050
------------- ------------- ------------- ------------ -----------
225,040 286,119 134,433 167,588 351,736
47,320 65,172 51,688 11,592 11,306
24,108 18,680 15,470 17,324 25,678
11,284 14,366 9,804 12,740 14,624
55,735 78,567 35,932 38,850 76,775
25,350 13,512 10,294 17,145 47,490
5,813 9,156 3,631 20,026 46,408
3,432 -- -- -- --
16,744 15,470 20,384 14,196 11,101
29,848 32,092 25,116 26,672 30,630
3,822 3,822 3,094 3,094 4,004
-- -- -- -- 2,628
15,393 13,048 12,336 14,802 13,812
10,293 9,652 10,025 10,416 9,636
------------- ------------- ------------- ------------ -----------
474,182 559,656 332,207 354,445 645,828
2,387 10,861 246 6,881 --
------------- ------------- ------------- ------------ -----------
476,569 570,517 332,453 361,326 645,828
------------- ------------- ------------- ------------ -----------
(66,847) (366,884) (82,939) (128,474) (17,778)
------------- ------------- ------------- ------------ -----------
1,882,558 8,757,967 5,698,190 3,216,010 6,036,128
(26,335) (344,766) (254,262) -- --
------------- ------------- ------------- ------------ -----------
1,856,223 8,413,201 5,443,928 3,216,010 6,036,128
------------- ------------- ------------- ------------ -----------
(11,023,297) (14,461,467) (3,185,893) (2,291,612) 676,098
3,679 (4,504) (4,453) -- --
------------- ------------- ------------- ------------ -----------
(11,019,618) (14,465,971) (3,190,346) (2,291,612) 676,098
------------- ------------- ------------- ------------ -----------
(9,163,395) (6,052,770) 2,253,582 924,398 6,712,226
------------- ------------- ------------- ------------ -----------
$ (9,230,242) $ (6,419,654) $ 2,170,643 $ 795,924 $ 6,694,448
============= ============= ============= ============ ===========
41
====
GAM FUNDS INC / STATEMENTS OF OPERATIONS
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
GAM GLOBAL GAM INTERNATIONAL GAM PACIFIC BASIN
-------------------------- ------------------------------- -----------------------------
PERIOD ENDED 30TH JUNE, 2000 (UNAUDITED)
AND YEAR ENDED 31ST, DECEMBER 1999 2000 1999 2000 1999 2000 1999
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM:
Operations
Net investment income/(loss) $ (621,217) $ (1,031,701) $ (5,463,311) $ 11,844,943 $ (66,847) $ (192,780)
Net realized gain/(loss) 4,719,078 9,836,694 63,220,130 17,788,379 1,856,223 3,147,505
Unrealized appreciation/
(depreciation) for the period (16,381,477) (1,502,360) (298,577,974) (145,345,103) (11,019,618) 16,930,852
------------ ------------- --------------- --------------- ------------ ------------
Net increase/(decrease) in net
assets from operations (12,283,616) 7,302,633 (240,821,155) (115,711,781) (9,230,242) 19,885,577
Dividends paid to shareholders from:
Net investment income
Class A -- -- -- -- -- (14,232)
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class D -- -- -- -- -- --
Distributions in excess of net
investment income
Class A -- -- -- -- -- (619,527)
Class B -- -- -- -- -- (56,488)
Class C -- -- -- -- -- (3,773)
Class D -- -- -- -- -- (15,130)
Net realized gain on investments
Class A -- -- -- -- -- --
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class D -- -- -- -- -- --
Capital share transactions
(Note 4) (16,050,282) (87,262,657) (372,170,788) (1,348,598,398) (8,245,873) 18,275,097
------------ ------------- --------------- --------------- ------------ ------------
Total increase/(decrease) in net
assets (28,333,898) (79,960,024) (612,991,943) (1,464,310,179) (17,476,115) 37,451,524
Net assets
Beginning of period 89,812,182 169,772,206 1,523,891,060 2,988,201,239 55,909,236 18,457,712
------------ ------------- --------------- --------------- ------------ ------------
End of period $ 61,478,284 $ 89,812,182 $ 910,899,117 $ 1,523,891,060 $ 38,433,121 $ 55,909,236
============ ============= =============== =============== ============ ============
Accumulated net investment
income/(loss), end of period $ (1,955,823) $ (1,334,606) $ 38,122,231 $ 43,585,542 $ (872,930) $ (806,083)
============ ============= =============== =============== ============ ============
</TABLE>
See notes to financial statements.
42
====
GAM FUNDS INC / STATEMENTS OF CHANGES IN NET ASSETS
<PAGE>
================================================================================
<TABLE>
<CAPTION>
GAM JAPAN CAPITAL GAM EUROPE GAM NORTH AMERICA GAMERICA CAPITAL
----------------------------- ----------------------------------- ---------------------------------- ----------------------------
2000 1999 2000 1999 2000 1999 2000 1999
----------------------------- ----------------------------------- ---------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (366,884) $ (632,123) $ (82,939) $ (298,477) $ (128,474) $ (238,170) $ (17,778) $ 162,578
8,413,201 9,163,778 5,443,928 2,760,457 3,216,010 803,028 6,036,128 1,361,297
(14,465,971) 20,359,363 (3,190,346) (1,069,151) (2,291,612) 2,238,138 676,098 9,222,519
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
(6,419,654) 28,891,018 2,170,643 1,392,829 795,924 2,802,996 6,694,448 10,746,394
-- -- -- -- -- -- -- (159,861)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- (2,100,948) -- -- -- -- -- --
-- (60,901) -- -- -- -- -- --
-- (27,426) -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- (2,310,599) -- -- -- (806,106)
-- -- -- (164,781) -- -- -- (134,605)
-- -- -- (78,526) -- -- -- (168,130)
-- -- -- -- -- -- -- --
(16,912,662) 21,037,976 4,393,812 (28,309,553) (10,227,096) 16,552,415 1,258,919 46,919,966
----------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
(23,332,316) 47,739,719 6,564,455 (29,470,630) (9,431,172) 19,355,411 7,953,367 56,397,658
72,012,570 24,272,851 22,761,261 52,231,891 38,833,689 19,478,278 70,042,502 13,644,844
------------ ----------- ----------- ----------- ----------- ------------ ---------- ----------
$48,680,254 $72,012,570 $29,325,716 $22,761,261 $29,402,517 $38,833,689 $77,995,869 $70,042,502
============ =========== =========== =========== =========== ============ =========== ===========
$ (2,090,061) $(1,723,177) $ (139,433) $ (56,494) $ (128,474) $ -- $ (17,778) $ --
============ ============ =========== =========== =========== ============ =========== ===========
</TABLE>
43
====
GAM FUNDS INC / STATEMENTS OF CHANGES IN NET ASSETS
<PAGE>
This page is intentionally left blank.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
AS AT 30TH JUNE, 2000 (UNAUDITED)
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
GAM Funds, Inc. (the "Company"), is an open-end diversified investment company
registered under the Investment Company Act of 1940 comprised of seven
portfolios: GAM Global Fund, GAM International Fund, GAM Pacific Basin Fund, GAM
Japan Capital Fund, GAM Europe Fund, GAM North America Fund and GAMerica Capital
Fund (the "Funds").
Each Fund seeks long-term capital appreciation by investing primarily in equity
securities. GAM Global Fund invests primarily in securities of companies in the
United States, Europe, the Pacific Basin and Canada. GAM International Fund
invests primarily in securities of companies in Europe, the Pacific Basin and
Canada. GAM Pacific Basin Fund invests primarily in securities of companies in
the Pacific Basin. GAM Japan Capital Fund invests primarily in securities of
companies in Japan. GAM Europe Fund invests primarily in securities of companies
in Europe. GAM North America Fund invests primarily in securities of companies
in the United States and Canada. GAMerica Capital Fund invests primarily in
securities of companies in the United States.
The Funds offer Class A, Class B, Class C and Class D shares. Class A, Class B
and Class C shares currently are available for all funds and Class D shares
currently are available only for GAM International Fund, GAM Global Fund and GAM
Pacific Basin Fund. Class A shares are sold with a front-end sales charge of up
to 5.0% and Class D shares are sold with a front-end sales charge of up to 3.5%.
There is no front-end sales charge on Class B or Class C shares. Class B shares
are currently sold with a contingent deferred sales charge which declines from
5.0% to zero depending on the period of time the shares are held. Class B shares
will automatically convert to Class A shares eight years after the end of the
calendar month of purchase. Class C shares redeemed within one year of purchase
will be subject to a contingent deferred sales charge of 1.0%. The four classes
of shares have identical voting, dividend, liquidation and other rights, except
that each class bears its separate distribution and certain class expenses, and
has exclusive voting rights with respect to any matter on which a separate vote
of any class is required by federal or state law. The following is a summary of
significant accounting policies followed in the preparation of the Company's
financial statements.
VALUATION OF SECURITIES
Investment securities are stated at value based on the last sale price on the
principal exchange on which the securities are traded, or, lacking any sales, at
the last available bid price. Securities traded in the over-the-counter market
are valued at the last available bid price. Short-term securities maturing in 60
days or less are valued on an amortized cost basis which approximates market
value. Forward foreign currency contracts are valued at the forward rate and are
marked to market daily. Other securities for which market quotations are not
readily available are valued at fair value as determined by or under the
direction of the Board of Directors.
ADJUSTABLE RATE INDEX NOTES
Each Fund may invest in adjustable rate index notes (ARINs) or similar
instruments. An ARIN is a form of promissory note issued by a brokerage firm or
other counterparty which provides that the amount of principal or interest paid
will vary inversely in proportion to changes in the value of a specified
security. The Funds could suffer losses in the event of a default or insolvency
of the brokerage firm or other counterparty issuing the ARIN.
FOREIGN CURRENCY
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into US dollar amounts at date of valuation. Purchases
and sales of portfolio securities and income items denominated in foreign
currencies are translated into US dollar amounts on the respective dates of such
transactions. The Funds do not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss from
investments. Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Funds' books, and the US dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at period
end, resulting from changes in the exchange rate.
45
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
FOREIGN CURRENCY CONTRACTS
Each Fund may enter into forward foreign currency exchange contracts primarily
in order to hedge against foreign currency exchange rate risks on the non-US
dollar denominated investment securities. These contracts are valued daily and
the Funds' equity therein, representing unrealized gain or loss on the
contracts, is included in the Statement of Assets and Liabilities. Realized and
unrealized gains and losses on these contracts are included in the Statement of
Operations.
FUTURES CONTRACTS
Initial margin deposits made with respect to futures contracts traded on
domestic exchanges are maintained by the Funds' custodian in segregated asset
accounts. Initial margin deposits made upon entering into futures contracts
traded on foreign exchanges are recognized as assets due from the broker (the
Funds' agent in acquiring the futures positions). These deposits are made by the
Funds as a partial guarantee of their performance under the contract. Subsequent
changes in the daily valuation of open contracts are recognized as unrealized
gains or losses. Variation margin payments are made or received on domestically
traded futures as appreciation or depreciation in the value of these contracts.
Realized gains or losses are recorded when a contract is closed.
FEDERAL INCOME TAXES
It is each Fund's policy to satisfy the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no provision for Federal income taxes
is required.
OPTION CONTRACTS
The Funds may invest, for hedging and other purposes, in call and put options on
securities, currencies and futures contracts. Call and put options give the
Funds the right but not the obligation to buy (calls) or sell (puts) the
instrument underlying the option at a specified price. The premium paid on the
option, should it be excercised, will, on a call, increase the cost of the
instrument acquired and, on a put, reduce the proceeds received from the sale of
the instrument underlying the option. If the options are not exercised, the
premium paid will be recorded as a capital loss upon expiration. The Funds may
incur additional risk to the extent that the value of the underlying instrument
does not correlate with the movement of the option value.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions are recorded on the ex-dividend date. Income and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences, which
may result in distribution reclassifications, are primarily due to differing
treatments for futures transactions, foreign currency transactions, passive
foreign investment companies (PFIC), capital loss carryforwards and losses
deferred due to wash sales and excise tax regulations. Permanent book and tax
basis differences relating to shareholder distributions will result in
reclassifications to paid-in capital and may affect the per share distribution
between net investment income and realized and unrealized gain/(loss). The
calculation of Net Investment Income per share in the Financial Highlights
excludes these adjustments. Undistributed net investment income/(loss) and
accumulated undistributed net realized gain/(loss) on investments and foreign
currency transactions may include temporary book and tax basis differences which
will reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
DEFERRED ORGANIZATION EXPENSES
Organization costs for GAM Japan Capital Fund and GAMerica Capital Fund have
been deferred and are being amortized on a straight-line basis over a five-year
period from each Fund's commencement of operations.
USE OF ESTIMATES
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 expense during the reporting period. Actual
results could differ from those estimates.
46
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
OTHER
Securities transactions are recorded on trade date. Interest is accrued on a
daily basis and market discount is accreted on a straight-line basis. Dividend
income is recorded on the ex-dividend date, except that certain dividends on
foreign securities are recorded as soon as information is available to the Fund.
Interest expense primarily relates to custodian bank overdraft charges incurred
during the year.
NOTE 2. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Investment Adviser, GAM International Management Limited, receives a fee
under its agreement with the Company equivalent to 1.00% per annum of each
Fund's average daily net assets, except for GAM North America Fund. With respect
to GAM North America Fund, GAM International Management Limited and Fayez
Sarofim & Co. serve as co-investment advisers to the Fund. Each co-adviser
receives a fee under its agreement equivalent to 0.50% per annum of the Fund's
average daily net assets.
Effective 17th December, 1999, UBS AG, a banking corporation organized under the
laws of Switzerland, acquired all the outstanding shares of Global Asset
Management Limited (the "Acquisition"). Global Asset Management Limited
indirectly wholly owns GAM International Management Limited, the Investment
Adviser to the Funds. The Acquisition resulted in a change of control of GAM
International Management Limited. Thus, pursuant to the Investment Company Act
of 1940, prior to the completion of the Acquisition, the Board of Directors
considered the continuance of the then current Amended and Restated Investment
Advisory Contract dated 14th April, 1994 (the "GAM Contract") with GAM
International Management Limited as the Investment Adviser to the Funds. The
Board of Directors on 29th September, 1999 (including a majority of the
Directors who were not parties to the GAM Contract or interested person of any
such party) approved the continuance of the GAM Contract on behalf of each Fund,
which approval was further ratified by the Board (including a majority of the
Directors who were not parties to the GAM Contract or interested person of any
such party) on behalf of each Fund on 27th October, 1999. The shareholders of
each Fund approved the continuance of the GAM Contract on 26th October, 1999. As
such, a new Amended and Restated Investment Advisory Contract was executed upon
completion of the Acquisition with identical terms and conditions as the
original GAM Contract.
GAM Services, Inc. acts as principal underwriter of the Fund. For the six months
ended 30th June, 2000, GAM Services, Inc. retained front-end sales load charges
of $90,773 and contingent deferred sales charges of $61,642 from the sale of
Fund shares. Front end sales charges are waived for Class A and Class D
purchases of $1 million or more, but are subject to contingent deferred sales
charges of 1.00% for shares sold within 18 months of purchase.
Effective 5th September, 1995, the Funds adopted a Class D Distribution Plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940 which provides
for payments by the Funds to GAM Services at the annual rate of up to 0.50% of
each applicable Fund's average net assets attributable to Class D Shares.
Effective 9th October, 1996, the Funds adopted a Class A Distribution Plan
pursuant to this rule which provides for payments by the Funds to GAM Services
at the annual rate of up to 0.30% of each applicable Fund's average net assets
attributable to Class A shares. Effective 29th April, 1998, the Funds adopted a
Class B and Class C Distribution Plan pursuant to this rule which provides for
payments by the Funds to GAM Services at the annual rate of up to 1.00% of each
applicable Fund's average net assets attributable to Class B and Class C shares.
NOTE 3. DIRECTORS FEES
The Funds do not pay any compensation to their officers or to any directors,
officers or employees of GAM International Management Limited, GAM Services Inc.
or their affiliates. Each disinterested director is compensated by each Fund as
follows:
<TABLE>
<CAPTION>
GAM GAM GAM
GAM GAM PACIFIC JAPAN GAM NORTH GAMERICA
GLOBAL INTERNATIONAL BASIN CAPITAL EUROPE AMERICA CAPITAL
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Annual Retainer $3,751 $3,751 $3,751 $3,751 $3,751 $3,751 $3,751
Annual Meeting Fee 571 571 571 571 571 571 571
</TABLE>
47
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
NOTE 4. CAPITAL STOCK
The Company declared a 10-for-1 stock split to shareholders of record as of 19th
December, 1995. All per share data have been restated to reflect the stock
split.
At 30th June, 2000, GAM Funds, Inc. had 1,550,000,000 shares of common stock,
$0.001 par value authorized. For each of the seven active funds shares were
allocated as follows: 260,000,000, 160,000,000, 147,500,000 and 50,000,000
shares, respectively, were allocated to each of Class A, Class B, Class C and
Class D of GAM International; 85,000,000, 75,000,000, 20,000,000 and 25,000,000
shares, respectively, were allocated to Class A, Class B, Class C and Class D of
GAM Global; 60,000,000, 50,000,000, 20,000,000 and 25,000,000 shares,
respectively, were allocated to Class A, Class B, Class C and Class D of GAM
Europe and GAM Pacific Basin; 55,000,000, 50,000,000, 20,000,000 and 12,500,000
shares, respectively, were allocated to Class A, Class B, Class C and Class D of
GAM Japan Capital; 55,000,000, 50,000,000, 15,000,000 and 25,000,000 shares,
respectively, were allocated to Class A, Class B, Class C and Class D of GAM
North America; while 30,000,000, 25,000,000, 15,000,000 and 25,000,000 shares,
respectively, were allocated to Class A, Class B, Class C and Class D of
GAMerica Capital.
48
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
NOTE 4. (CONTINUED)
Changes in each Fund's capital stock are summarized as follows:
<TABLE>
<CAPTION>
Class A Class B* Class C** Class D
---------------------------- ------------------------ ------------------------ -------------------------
Shares US$ Shares US$ Shares US$ Shares US$
----------- -------------- ---------- ----------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GAM GLOBAL
SIX MONTHS ENDING
30TH JUNE, 2000
(UNAUDITED) 731,849 15,091,625 17,061 348,022 11,517 237,586 2,725 55,584
Shares sold
Shares reinvested -- -- -- -- -- -- -- --
Shares redeemed (1,336,073) (26,695,259) (77,649) (1,557,074) (95,530) (1,938,865) (78,785) (1,591,901)
----------- -------------- ---------- ----------- ---------- ----------- ----------- -----------
Net decrease (604,224) (11,603,634) (60,588) (1,209,052) (84,013) (1,701,279) (76,060) (1,536,317)
=========== ============== ========== =========== ========== =========== =========== ===========
YEAR ENDING
31ST DECEMBER, 1999
Shares sold 1,185,264 22,156,475 157,726 2,942,397 160,723 2,999,694 81,692 1,497,217
Shares reinvested -- -- -- -- -- -- -- --
Shares redeemed (5,478,746) (100,597,123) (265,625) (4,854,733) (267,441) (4,924,422) (355,330) (6,482,162)
----------- -------------- ---------- ----------- ---------- ----------- ----------- -----------
Net decrease (4,293,482) (78,440,648) (107,899) (1,912,336) (106,718) (1,924,728) (273,638) (4,984,945)
=========== ============== ========== =========== ========== =========== =========== ===========
GAM INTERNATIONAL
SIX MONTHS ENDING
30TH JUNE, 2000
(UNAUDITED) 6,871,474 206,588,375 77,421 2,365,780 134,228 4,142,332 261,825 7,715,186
Shares sold
Shares reinvested -- -- -- -- -- -- -- --
Shares redeemed (18,065,982) (535,668,329) (338,119) (9,811,810) (668,447) (19,564,315) (939,159) (27,938,007)
----------- -------------- ---------- ----------- ---------- ----------- ----------- -----------
Net decrease (11,194,508) (329,079,954) (260,698) (7,446,030) (534,219) (15,421,983) (677,334) (20,222,821)
=========== ============== ========== =========== ========== =========== =========== ===========
YEAR ENDING
31ST DECEMBER, 1999
Shares sold 21,179,421 582,466,302 1,085,856 30,116,509 1,687,268 47,052,208 526,369 14,264,420
Shares reinvested -- -- -- -- -- -- -- --
Shares redeemed (70,998,170) (1,877,956,339) (1,005,115) (26,581,356) (1,806,221) (47,790,552) (2,662,778) (70,169,590)
----------- -------------- ---------- ----------- ---------- ----------- ----------- -----------
Net increase/
(decrease) (49,818,749) (1,295,490,037) 80,741 3,535,153 (118,953) (738,344) (2,136,409) (55,905,170)
=========== ============== ========== =========== ========== =========== =========== ===========
GAM PACIFIC BASIN
SIX MONTHS ENDING
30TH JUNE, 2000
(UNAUDITED) 407,756 5,121,436 23,768 309,941 5,849 71,221 480 5,253
Shares sold
Shares reinvested -- -- -- -- -- -- -- --
Shares redeemed (1,004,566) (12,167,304) (78,789) (993,290) (28,919) (328,763) (21,720) (264,367)
----------- -------------- ---------- ----------- ---------- ----------- ----------- -----------
Net decrease (596,810) (7,045,868) (55,021) (683,349) (23,070) (257,542) (21,240) (259,114)
=========== ============== ========== =========== ========== =========== =========== ===========
YEAR ENDING
31ST DECEMBER, 1999
Shares sold 2,682,903 28,097,260 416,934 4,665,444 102,059 1,033,864 76,465 807,293
Shares reinvested 39,278 505,186 1,565 21,159 223 2,669 952 12,128
Shares redeemed (1,500,538) (15,544,838) (34,708) (404,415) (8,134) (81,809) (83,134) (838,844)
----------- -------------- ---------- ----------- ---------- ----------- ----------- -----------
Net increase/
(decrease) 1,221,643 13,057,608 383,791 4,282,188 94,148 954,724 (5,717) (19,423)
=========== ============== ========== =========== ========== =========== =========== ===========
</TABLE>
* Class B inception dates: GAM International: 26th May, 1998; GAM Global: 26th
May, 1998; GAM Pacific Basin: 26th May, 1998.
** Class C inception dates: GAM International: 19th May, 1998; GAM Global: 19th
May, 1998; GAM Pacific Basin: 1st June, 1998.
49
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
Class A Class B* Class C**
-------------------------- ------------------------ -------------------------
Shares US$ Shares US$ Shares US$
---------- ----------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
GAM JAPAN CAPITAL
SIX MONTHS ENDING 30TH JUNE, 2000
(UNAUDITED) 692,968 8,813,551 28,182 376,690 14,677 197,775
Shares sold
Shares reinvested -- -- -- -- -- --
Shares redeemed (1,980,395) (25,196,250) (52,534) (688,888) (30,944) (415,540)
---------- ----------- -------- ---------- -------- ----------
Net decrease (1,287,427) (16,382,699) (24,352) (312,198) (16,267) (217,765)
========== =========== ======== ========== ======== ==========
YEAR ENDING 31ST DECEMBER, 1999
Shares sold 4,463,325 46,623,078 176,443 1,993,131 101,463 1,168,359
Shares reinvested 121,877 1,562,464 4,508 60,319 1,572 21,331
Shares redeemed (2,728,426) (28,992,990) (48,496) (569,746) (73,467) (827,970)
---------- ----------- -------- ---------- -------- ----------
Net increase 1,856,776 19,192,552 132,455 1,483,704 29,568 361,720
========== =========== ======== ========== ======== ==========
GAM EUROPE
SIX MONTHS ENDING 30TH JUNE, 2000
(UNAUDITED) 654,929 9,347,634 101,623 1,502,522 5,054 71,900
Shares sold
Shares reinvested -- -- -- -- -- --
Shares redeemed (419,329) (5,998,723) (22,342) (326,745) (14,218) (202,776)
---------- ----------- -------- ---------- -------- ----------
Net increase/(decrease) 235,600 3,348,911 79,281 1,175,777 (9,164) (130,876)
========== =========== ======== ========== ======== ==========
YEAR ENDING 31ST DECEMBER, 1999
Shares sold 511,182 6,127,477 29,326 360,921 30,103 368,116
Shares reinvested 83,591 1,027,732 7,370 90,433 3,373 40,414
Shares redeemed (2,960,522) (35,197,464) (56,212) (667,826) (39,353) (459,356)
---------- ----------- -------- ---------- -------- ----------
Net decrease (2,365,749) (28,042,255) (19,516) (216,472) (5,877) (50,826)
========== =========== ======== ========== ======== ==========
GAM NORTH AMERICA
SIX MONTHS ENDING 30TH JUNE, 2000
(UNAUDITED) 230,471 4,213,663 15,761 284,382 4,737 82,944
Shares sold
Shares reinvested -- -- -- -- -- --
Shares redeemed (585,824) (10,698,047) (67,558) (1,202,792) (165,806) (2,907,246)
---------- ----------- -------- ---------- -------- ----------
Net decrease (355,353) (6,484,384) (51,797) (918,410) (161,069) (2,824,302)
========== =========== ======== ========== ======== ==========
YEAR ENDING 31ST DECEMBER, 1999
Shares sold 1,088,958 18,837,080 243,005 4,207,665 511,273 8,786,075
Shares reinvested -- -- -- -- -- --
Shares redeemed (548,867) (9,631,008) (77,966) (1,340,795) (249,886) (4,306,602)
---------- ----------- -------- ---------- -------- ----------
Net increase 540,091 9,206,072 165,039 2,866,870 261,387 4,479,473
========== =========== ======== ========== ======== ==========
GAMERICA CAPITAL
SIX MONTHS ENDING 30TH JUNE, 2000
(UNAUDITED) 904,352 19,050,663 93,498 1,981,203 66,610 1,406,803
Shares sold
Shares reinvested -- -- -- -- -- --
Shares redeemed (875,023) (18,394,410) (58,028) (1,222,334) (74,454) (1,563,006)
---------- ----------- -------- ---------- -------- ----------
Net increase/(decrease) 29,329 656,253 35,470 758,869 (7,844) (156,203)
========== =========== ======== ========== ======== ==========
YEAR ENDING 31ST DECEMBER, 1999
Shares sold 2,122,743 40,904,988 411,219 7,948,767 502,228 9,515,032
Shares reinvested 16,923 339,129 1,635 32,937 2,001 40,051
Shares redeemed (428,494) (8,694,517) (41,440) (782,799) (120,549) (2,383,622)
---------- ----------- -------- ---------- -------- ----------
Net increase 1,711,172 32,549,600 371,414 7,198,905 383,680 7,171,461
========== =========== ======== ========== ======== ==========
</TABLE>
* Class B inception dates: GAM Japan Capital: 26th May, 1998; GAM Europe: 26th
May, 1998; GAM North America: 26th May, 1998; GAMerica Capital: 26th May,
1998.
** Class C inception dates: GAM Japan Capital: 19th May, 1998; GAM Europe: 20th
May, 1998; GAM North America: 7th July, 1998; GAMerica Capital: 26th May,
1998.
50
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
NOTE 5. INVESTMENT TRANSACTIONS
The cost of purchases and proceeds of sales of investment securities for the six
months ended 30th June, 2000 excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
GAM GAM GAM
GAM GAM PACIFIC JAPAN GAM NORTH GAMERICA
GLOBAL INTERNATIONAL BASIN CAPITAL EUROPE AMERICA CAPITAL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
In US$
Purchases 109,985,285 1,521,427,316 13,489,643 14,932,449 33,578,006 327,831 5,725,323
Sales 126,462,886 1,884,412,158 17,681,570 28,925,525 31,328,844 10,836,720 6,363,862
</TABLE>
Realized gains and losses are reported on an identified cost basis. At 30th
June, 2000, the aggregate gross unrealized appreciation and depreciation of
securities, based on cost for federal income tax purposes, were as follows:
<TABLE>
<CAPTION>
GAM GAM GAM
GAM GAM PACIFIC JAPAN GAM NORTH GAMERICA
GLOBAL INTERNATIONAL BASIN CAPITAL EUROPE AMERICA CAPITAL
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
In US$
Appreciation 5,439,152 82,425,989 5,543,387 8,076,272 2,801,217 6,043,541 19,512,015
Depreciation (1,802,740) (20,048,788) (4,360,226) (2,865,469) (1,168,405) (2,093,312) (8,183,814)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net 3,636,412 62,377,201 1,183,161 5,210,803 1,632,812 3,950,229 11,328,201
========== ========== ========== ========== ========== ========== ==========
</TABLE>
At 31st December, 1999, the Funds had tax basis net capital losses as follows.
These losses may be carried over to offset future capital gains through the
expiration dates shown:
<TABLE>
<CAPTION>
GAM GAM GAM
GAM GAM PACIFIC JAPAN GAM NORTH GAMERICA
GLOBAL INTERNATIONAL BASIN CAPITAL EUROPE AMERICA CAPITAL
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
In US$ (2,958,401) (25,493,925) (483,511) (2,340,961) -- -- --
(14,482,801)
(760,353)
Carryforward 31st Dec. 31st Dec. 31st Dec. 31st Dec. -- -- --
Expiration dates 2006 2006 2007, 2006 -- -- --
2006 &
2005
Post October loss
carryforward (1,413,392) (44,461,180) -- -- (47,780) -- --
</TABLE>
Foreign taxes withheld from dividends and interest for the six months ended 30th
June, 2000, were as follows:
<TABLE>
<CAPTION>
GAM GAM GAM
GAM GAM PACIFIC JAPAN GAM NORTH GAMERICA
GLOBAL INTERNATIONAL BASIN CAPITAL EUROPE AMERICA CAPITAL
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
In US$
Dividends 21,113 653,966 29,371 34,104 22,442 860 --
Interest -- -- -- 76 -- 76,022 --
</TABLE>
NOTE 6. FINANCIAL INSTRUMENTS
During the period, several of the Funds have been party to financial instruments
with off-balance sheet risks, including forward foreign currency contracts and
futures contracts, primarily in an attempt to minimize the risk to the Fund, in
respect of its portfolio transactions. These instruments involve market and/or
credit risk in excess of the amount recognized in the Statement of Assets and
Liabilities. Risks arise from the possible inability of counterparties to meet
the terms of their contracts and from unexpected movement in currencies,
securities values and interest rates. The contract amounts indicate the extent
of the Funds' involvement in such contracts.
Forwards: When entering a forward currency contract, the Fund agrees to receive
or deliver a fixed quantity of foreign currency for an agreed upon price on an
agreed upon future date.
At 30th June, 2000, the Fund had outstanding forward contracts for the purchase
and sale of currencies as set out below. The contracts are reported in the
financial statements at the Fund's net equity, as measured by the difference
between the forward foreign exchange rates at the dates of entry into the
contracts and the forward rates at the reporting date, or the date an offsetting
position, if any, has been entered into.
51
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
Net
Unrealized
Local Settlement Market Appreciation/
Currency Date Value (Depreciation)
------------------------------------------------------------------------------------------------------------------------------
US$ US$
<S> <C> <C> <C> <C>
GAM INTERNATIONAL FUND
To sell:
Euro 101,299,537 9th August, 2000 96,735,148 4,032,566
Euro* 58,099,588 9th August, 2000 59,157,000 (1,362,435)
Euro* 29,266,024 9th August, 2000 28,395,360 717,017
Euro* 108,680,919 9th August, 2000 104,116,320 3,994,024
Japanese Yen 359,800,000 22nd August, 2000 3,421,316 (76,829)
Japanese Yen* 7,170,800,000 22nd August, 2000 70,000,000 (3,344,488)
Pound Sterling* 938,428 8th September, 2000 1,420,621 8,382
Pound Sterling* 132,187 8th September, 2000 198,928 9,603
Pound Sterling* 22,066,793 8th September, 2000 35,020,000 (208,531)
Pound Sterling* 22,200,035 8th September, 2000 33,408,832 1,611,168
---------
Net equity in foreign currency exchange contracts. 5,380,477
=========
</TABLE>
* The fund has entered into offsetting forward foreign currency contracts.
At 30th June, 2000 the Funds had sufficient cash and/or securities to cover any
commitments under these contracts.
Futures: A futures contract obligates one party to sell and the other party to
purchase a specific instrument for an agreed price on an agreed future date. At
30th June, 2000 the Funds did not have any outstanding futures contracts.
52
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
NOTE 7. RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
Investing in securities issued by companies whose principal business activities
are outside the United States may involve significant risks not present in
domestic investments. For example, there is generally less publicly available
information about foreign companies, particularly those not subject to the
disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing, and financial
reporting requirements and standards of practice comparable to those applicable
to domestic issuers. Investments in foreign securities also involve the risk of
possible adverse changes in investment or exchange control regulations,
expropriation or confiscatory taxation, limitation on the removal of funds or
other assets of the Portfolio, political or financial instability or diplomatic
and other developments which could affect such investments. Foreign stock
markets, while growing in volume and sophistication, are generally not as
developed as those in the United States, and securities of some foreign issuers
(particularly those located in developing countries) may be less liquid and more
volatile than securities of comparable U.S. companies. In general, there is less
overall governmental supervision and regulation of foreign securities markets,
broker-dealers, and issuers than in the United States.
NOTE 8. REVOLVING DEMAND NOTE
During the six months ended 30th June, 2000 GAM International Fund entered into
revolving demand notes with Brown Brothers Harriman & Co. subject to the
borrowing limit as set forth in the Fund's registration statement. These notes
are collateralized by any or all of the securities held by Brown Brothers
Harriman & Co. as the Fund's custodian up to the amount of borrowing. Borrowing
under these notes are charged interest at the current overnight LIBOR plus 300
basis points. The weighted average annualized interest rate on such notes was
9.63%. As of 30th June, 2000 the amount of the borrowing under the revolving
demand note was $10,800,000. The average daily loan balance outstanding was
$10,800,000.
53
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
NOTE 9. FINANCIAL HIGHLIGHTS
GAM GLOBAL FUND
<TABLE>
<CAPTION>
----------------------------------------------------------------
CLASS A
----------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
beginning of period $21.75 $19.04 $18.71 $14.35 $13.51 $10.60
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.15)(b) (0.13)(b) (0.05)(b) (0.04)(b) 0.16(b) 0.35
Net realized and unrealized gain/(loss)
on investments (3.00) 2.84 0.55 5.04 1.55 3.48
------ ------ ------ ------ ------ ------
Total from investment operations (3.15) 2.71 0.50 5.00 1.71 3.83
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- (0.02) (0.08) (0.30)
Distributions from net realized gains -- -- (0.17) (0.62) (0.79) (0.62)
------ ------ ------ ------ ------ ------
Total distributions -- -- (0.17) (0.64) (0.87) (0.92)
------ ------ ------ ------ ------ ------
Net asset value, end of period $18.60 $21.75 $19.04 $18.71 $14.35 $13.51
====== ====== ====== ====== ====== ======
TOTAL RETURN
Total return for the period
without deduction of sales load (*) (14.48)% 14.23% 2.57% 34.95% 12.74% 36.25%
RATIOS/SUPPLEMENTAL DATA
Total net assets (millions) $ 46 $ 67 $ 140 $ 66 $ 20 $ 26
Ratio of expenses to average net assets 2.20%(c) 1.89% 1.71% 1.83% 2.26%(d) 2.16%
Ratio of net investment income/(loss)
to average net assets (1.47)%(c) (0.69)% (0.25)% (0.25)% 1.17% 2.96%
Portfolio turnover rate 291% 107% 123% 48% 107% 60%
</TABLE>
54
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
<TABLE>
<CAPTION>
----------------------------- ----------------------------- ------------------------------------------------------------
CLASS B CLASS C CLASS D
----------------------------- ----------------------------- ------------------------------------------------------------
2000(a) 1999 1998(e) 2000(a) 1999 1998(f) 2000(a) 1999 1998 1997 1996 1995(g)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$21.66 $19.11 $20.99 $21.63 $19.10 $21.06 $21.41 $18.79 $18.50 $14.22 $13.48 $13.46
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(0.22)(b) (0.30)(b) (0.13)(b) (0.22)(b) (0.30)(b) (0.14)(b) (0.18)(b) (0.18)(b) (0.08)(b) (0.09)(b) 0.07(b) --
(2.97) 2.85 (1.75) (2.97) 2.83 (1.82) (2.93) 2.80 0.54 5.02 1.47 0.92
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(3.19) 2.55 (1.88) (3.19) 2.53 (1.96) (3.11) 2.62 0.46 4.93 1.54 0.92
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
-- -- -- -- -- -- -- -- -- (0.03) (0.01) (0.28)
-- -- -- -- -- -- -- -- (0.17) (0.62) (0.79) (0.62)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
-- -- -- -- -- -- -- -- (0.17) (0.65) (0.80) (0.90)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
$18.47 $21.66 $19.11 $18.44 $21.63 $19.10 $18.30 $21.41 $18.79 $18.50 $14.22 $13.48
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
(14.73)% 13.34% (8.96)% (14.75)% 13.25% (9.31)% (14.53)% 13.94% 2.38% 34.80% 11.54% 6.97%
$ 7 $ 9 $ 10 $ 5 $ 8 $ 9 $ 3 $ 6 $ 10 $ 4 $ 0.8 $ 0.3
2.94%(c) 2.76% 2.70%(c) 2.96%(c) 2.77% 2.83%(c) 2.48%(c) 2.16% 1.87% 2.01% 2.88%(d) 2.81%(c)
(2.20)%(c) (1.61)% (1.14)%(c) (2.24)%(c) (1.62)% (1.27)%(c) (1.78)%(c) (0.98)% (0.41)% (0.53)% 0.52% (0.09)%(c)
291% 107% 123% 291% 107% 123% 291% 107% 123% 48% 107% 60%
</TABLE>
(a) For the six months ended 30th June, 2000 (unaudited).
(b) Net investment income per share has been determined based on the weighted
average shares outstanding method.
(c) Annualized.
(d) Ratios of expenses to average net assets for the year ended 31st December,
1996 include amounts paid through expense offset arrangements. Prior and
subsequent ratios exclude these amounts.
(e) For the period from 26th May, 1998 (commencement of operations) to 31st
December, 1998.
(f) For the period 19th May, 1998 (commencement of operations) to 31st December,
1998.
(g) For the period from 6th October, 1995 (commencement of operations) to 31st
December, 1995.
(*) Total return calculated for a period of less than one year is not
annualized.
55
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
GAM INTERNATIONAL FUND
<TABLE>
<CAPTION>
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
beginning of period $32.16 $30.06 $28.46 $23.15 $21.37 $17.21
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.12)(b) 0.17(b) 0.08(b) 0.08(b) 0.57(b) 0.52
Net realized and unrealized gain/(loss)
on investments (5.79) 1.93 2.03 6.58 1.34 4.64
------ ------ ------ ------ ------ ------
Total from investment operations (5.91) 2.10 2.11 6.66 1.91 5.16
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- (0.05) (0.18) (0.09) (0.47)
Distributions from net realized gains -- -- (0.46) (1.17) (0.04) (0.53)
------ ------ ------ ------ ------ ------
Total distributions -- -- (0.51) (1.35) (0.13)
------ ------ ------ ------ ------ ------
Net asset value, end of period $26.25 $32.16 $30.06 $28.46 $23.15 $21.37
====== ====== ====== ====== ====== ======
TOTAL RETURN
Total return for the period
without deduction of sales load (*) (18.38)% 6.99% 7.22% 28.93% 8.98% 30.09%
RATIOS/SUPPLEMENTAL DATA
Total net assets (millions) $ 743 $1,271 $2,868 $1,794 $1,010 $ 560
Ratio of expenses to average net assets 2.00%(c) 1.76% 1.66% 1.68% 1.56%(d) 1.57%
Ratio of net investment income/(loss)
to average net assets (0.83)%(c) 0.62% 0.27% 0.28% 2.70% 3.89%
Portfolio turnover rate 255% 117% 73% 48% 82% 35%
</TABLE>
56
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
<TABLE>
<CAPTION>
---------------------------- ---------------------------- ------------------------------------------------------------
CLASS B CLASS C CLASS D
---------------------------- ---------------------------- ------------------------------------------------------------
2000(a) 1999 1998(e) 2000(a) 1999 1998(f) 2000(a) 1999 1998 1997 1996 1995(g)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$32.31 $30.41 $33.39 $32.29 $30.37 $32.61 $31.96 $29.92 $28.34 $23.07 $21.35 $20.46
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(0.20)(b) (0.07)(b) (0.20)(b) (0.21)(b) (0.05)(b) (0.20)(b) (0.13)(b) 0.09(b) 0.04(b) 0.01(b) 0.45(b) 0.10
(5.81) 1.97 (2.78) (5.81) 1.97 (2.04) 5.76 1.95 2.03 6.59 1.32 1.78
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(6.01) 1.90 (2.98) (6.02) 1.92 (2.24) (5.89 2.04 2.07 6.60 1.77 1.88
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
-- -- -- -- -- -- -- -- (0.03) (0.16) (0.01) (0.46)
-- -- -- -- -- -- -- -- (0.46) (1.17) (0.04) (0.53)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(1.00) -- -- -- -- -- -- -- (0.49) (1.33) (0.05) (0.99)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
$26.30 $32.31 $30.41 $26.27 $32.29 $30.37 $26.07 $31.96 $29.92 $28.34 $23.07 $21.35
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
(18.60)% 6.25% (8.92)% (18.64)% 6.32% (6.87) %(18.43) %6.82% 7.13% 28.78% 8.33% 9.26%
$ 52 $ 72 $ 65 $ 51 $ 80 $ 78 $ 65 $ 101 $ 159 $ 99 $ 39 $ 9
2.59%(c) 2.48% 2.54%(c) 2.63%(c) 2.48% 2.52%(c) 2.09%(c) 1.94% 1.80% 1.82% 2.06%(d) 2.22%(c)
(1.36)%(c) (0.24)% (1.10)%(c) (1.43)%(c) (0.19)% (1.14)%(c) (0.89)%(c) 0.34% 0.14% 0.05% 2.13% 1.90%(c)
255% 117% 73% 255% 117% 73% 255% 117% 73% 48% 82% 35%
</TABLE>
(a) For the six months ended 30th June, 2000 (unaudited).
(b) Net investment income per share has been determined based on the weighted
average shares outstanding method.
(c) Annualized.
(d) Ratios of expenses to average net assets for the year ended 31st December,
1996 include amounts paid through expense offset arrangements. Prior and
subsequent ratios exclude these amounts.
(e) For the period from 26th May, 1998 (commencement of operations) to 31st
December, 1998.
(f) For the period from 19th May, 1998 (commencement of operations) to 31st
December, 1998.
(g) For the period from 18th September, 1995 (commencement of operations) to
31st December, 1995.
(*) Total return calculated for a period of less than one year is not
annualized.
57
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
GAM PACIFIC BASIN FUND
<TABLE>
<CAPTION>
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
beginning of period $14.17 $ 8.23 $ 9.69 $15.26 $16.97 $17.62
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.01)(b) (0.04)(b) (0.01)(b) --(b) 0.04(b) --
Net realized and unrealized gain/(loss)
on investments (2.32) 6.19 (0.51) (4.45) (0.11) 0.61
------ ------ ------ ------ ------ ------
Total from investment operations (2.33) 6.15 (0.52) (4.45) (0.07) 0.61
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- (0.01) (0.22) -- (0.74) --
Distributions in excess of net
investment income -- (0.20) -- -- -- --
Distributions from net realized gains -- (0.72) (1.12) (0.90) (1.26)
------ ------ ------ ------ ------ ------
Total distributions -- (0.21) (0.94) (1.12) (1.64) (1.26)
------ ------ ------ ------ ------ ------
Net asset value, end of period $11.84 $14.17 $ 8.23 $ 9.69 $15.26 $16.97
====== ====== ====== ====== ====== ======
TOTAL RETURN
Total return for the period
without deduction of sales load (*) (16.44)% 74.91% (3.99)% (30.00)% (0.39)% 4.50%
RATIOS/SUPPLEMENTAL DATA
Total net assets (millions) $ 32 $ 47 $ 17 $ 23 $ 50 $54
Ratio of expenses to average net assets 1.98%(c) 2.26% 2.42% 1.98% 1.76%(d) 1.98%
Ratio of net investment income/(loss)
to average net assets (0.16)%(c) (0.42)% (0.11)% 0.02% 0.22% (0.07)%
Portfolio turnover rate 11% 63% 55% 42% 46% 64%
</TABLE>
58
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
<TABLE>
<CAPTION>
---------------------------- ---------------------------- -----------------------------------------------------------
CLASS B CLASS C CLASS D
---------------------------- ---------------------------- -----------------------------------------------------------
2000(a) 1999 1998(e) 2000(a) 1999 1998(f) 2000(a) 1999 1998 1997 1996 1995(g)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$14.89 $ 8.96 $ 9.15 $13.21 $ 8.12 $ 8.54 $13.95 $ 8.11 $ 9.62 $15.20 $16.96 $17.36
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(0.06)(b) (0.19)(b) (0.35)(b) (0.08)(b) (0.39)(b) (0.70)(b) (0.05)(b) (0.16)(b) (0.01)(b) 0.01(b) (0.10)(b) (0.02)
(2.43) 6.26 0.32 (2.16) 5.51 0.37 (2.29) 6.13 (0.53) (4.47) (0.11) 0.26
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
(2.49) 6.07 (0.03) (2.24) (5.12) (0.33) (2.34) 5.97 (0.54) (4.46) (0.21) 0.24
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
-- -- (0.04) -- -- -- -- -- (0.25) -- (0.65) --
-- (0.14) -- -- (0.03) -- -- (0.13) -- -- -- --
-- -- (0.12) -- -- (0.09) -- -- (0.72) (1.12) (0.90) (0.64)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
-- (0.14) (0.16) -- (0.03) (0.09) -- (0.13) (0.97) (1.12) (1.55) (0.64)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
$12.40 $14.89 $ 8.96 $10.97 $13.21 $ 8.12 $11.61 $13.95 $ 8.11 $ 9.62 $15.20 $16.96
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
(16.72)% 67.89% (0.35)% (16.96)% 63.15% (3.87)% (16.77)% 73.71% (4.64)% (30.18)% (1.19)% 2.35%
$4 $6 $0.30 $1 $2 $0.20 $1 $2 $1 $2 $2 $2
2.76%(c) 3.48% 9.39%(c) 3.20%(c) 5.57% 20.34%(c) 2.67%(c) 2.89% 2.53% 2.08% 2.28% (d)2.63%(c)
(0.91)%(c) (1.59)% (7.52)%(c) (1.42)%(c) (3.82)% (19.15)%(c) (0.85)%(c) (1.55)% (0.17)% (0.09)% 0.57% (1.49)%(c)
11% 63% 55% 11% 63% 55% 11% 63% 55% 42% 46% 64%
</TABLE>
(a) For the six months ended 30th June, 2000 (unaudited).
(b) Net investment income per share has been determined based on the weighted
average shares outstanding method.
(c) Annualized.
(d) Ratios of expenses to average net assets for the year ended 31st December,
1996 include amounts paid through expense offset arrangements. Prior and
subsequent ratios exclude these amounts.
(e) For the period from 26th May, 1998 (commencement of operations) to 31st
December, 1998.
(f) For the period from 1st June, 1998 (commencement of operations) to 31st
December, 1998.
(g) For the period from 18th October, 1995 (commencement of operations) to 31st
December, 1995.
(*) Total return calculated for a period of less than one year is not
annualized.
59
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
GAM JAPAN CAPITAL FUND
<TABLE>
<CAPTION>
------------------------------------------------------------------
CLASS A
------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
beginning of period $13.85 $7.65 $8.44 $9.39 $10.16 $9.62
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.08)(b) (0.14)(b) (0.06)(b) (0.10)(b) (0.05)(b) (0.07)
Net realized and unrealized gain/(loss)
on investments (1.18) 6.77 (0.16) (0.11) 0.07 0.69
------ ------ ------ ------ ------ ------
Total from investment operations (1.26) 6.63 (0.22) (0.21) 0.02 0.62
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- (0.70) (0.05)
Distributions in excess of net
investment income -- (0.43) -- -- -- --
Distributions from net realized gains -- -- (0.57) (0.74) (0.09) (0.03)
------ ------ ------ ------ ------ ------
Total distributions -- (0.43) (0.57) (0.74) (0.79) (0.08)
------ ------ ------ ------ ------ ------
Net asset value, end of period $12.59 $13.85 $7.65 $8.44 $9.39 $10.16
====== ====== ====== ====== ====== ======
TOTAL RETURN
Total return for the period
without deduction of sales load (*) (9.10)% 87.05% (2.75)% (2.58)% 0.15% 6.45%
RATIOS/SUPPLEMENTAL DATA
Total net assets (millions) $44 $67 $22 $31 $37 $4
Ratio of expenses to average net assets 1.93%(c) 2.06% 2.16% 2.15% 1.84%(d) 3.61%(e)
Ratio of net investment income/(loss)
to average net assets (1.21)%(c) (1.38)% (0.78)% (1.06)% (0.50)% (2.35)%
Portfolio turnover rate 54% 77% 59% 76% 23% 122%
</TABLE>
60
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
------------------------------ ------------------------------
CLASS B CLASS C
------------------------------ ------------------------------
2000(a) 1999 1998(f) 2000(a) 1999 1998(g)
------ ------ ------ ------ ------ ------
$14.45 $ 8.11 $ 8.49 $14.65 $ 8.12 $ 8.56
------ ------ ------ ------ ------ ------
(0.14)(b) (0.34)(b) (0.19)(b) (0.15)(b) (0.34)(b) (0.15)(b)
(1.23) 6.98 (0.19) (1.25) 7.09 (0.29)
------ ------ ------ ------ ------ ------
(1.37) 6.64 (0.38) (1.40) 6.75 (0.44)
------ ------ ------ ------ ------ ------
-- -- -- -- -- --
-- (0.30) -- -- (0.22) --
-- -- -- -- -- --
------ ------ ------ ------ ------ ------
-- (0.30) -- -- (0.22) --
------ ------ ------ ------ ------ ------
$13.08 $14.45 $ 8.11 $13.25 $14.65 $ 8.12
====== ====== ====== ====== ====== ======
(9.48)% 82.18% (4.48)% (9.56)% 83.30% (5.14)%
$2 $3 $1 $2 $2 $1
2.80%(c) 3.80% 5.31%(c) 2.92%(c) 3.94% 3.99% (c)
(2.10)%(c) (3.16)% (4.22)%(c) (2.22)%(c) (3.21)% (3.00)%(c)
54% 77% 59% 54% 77% 59%
(a) For the six months ended 30th June, 2000 (unaudited).
(b) Net investment income per share has been determined based on the weighted
average shares outstanding method.
(c) Annualized.
(d) Ratios of expenses to average net assets for the year ended 31st December,
1996 include amounts paid through expense offset arrangements. Prior and
subsequent ratios exclude these amounts.
(e) In the absence of expense reimbursement, expenses on an annualized basis
would have represented 4.61% of average net assets for the period ended 31st
December, 1995.
(f) For the period 26th May, 1998 (commencement of operations) to 31st December,
1998.
(g) For the period from 19th May, 1998 (commencement of operations) to 31st
December, 1998.
(*) Total return calculated for a period of less than one year is not
annualized.
61
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
GAM EUROPE FUND
<TABLE>
<CAPTION>
------------------------------------------------------------------
CLASS A
------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
beginning of period $13.08 $12.63 $12.57 $11.85 $10.04 $8.66
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.04)(b) (0.09)(b) 0.03(b) 0.02(b) 0.07(b) 0.07
Net realized and unrealized gain/(loss)
on investments 1.30 1.96 1.28 3.15 2.06 1.38
------ ------ ------ ------ ------ ------
Total from investment operations 1.26 1.87 1.31 3.17 2.13 1.45
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- (0.02) (0.06) (0.01) (0.06)
Distributions from net realized gains -- (1.42) (1.23) (2.39) (0.31) (0.01)
------ ------ ------ ------ ------ ------
Total distributions -- (1.42) (1.25) (2.45) (0.32) (0.07)
------ ------ ------ ------ ------ ------
Net asset value, end of period $14.34 $13.08 $12.63 $12.57 $11.85 $10.04
====== ====== ====== ====== ====== ======
TOTAL RETURN
Total return for the period
without deduction of sales load (*) 9.63% 16.21% 10.70% 27.55% 21.32% 16.77%
RATIOS/SUPPLEMENTAL DATA
Total net assets (millions) $26 $20 $49 $39 $25 $23
Ratio of expenses to average net assets 2.38%(c) 2.48% 2.06% 1.81% 1.89%(d) 2.12%
Ratio of net investment income/(loss)
to average net assets (0.52)%(c) (0.79)% 0.24% 0.15% 0.59% 0.75%
Portfolio turnover rate 253% 109% 168% 80% 76% 145%
</TABLE>
62
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
------------------------------ ------------------------------
CLASS B CLASS C
------------------------------ ------------------------------
2000(a) 1999 1998(e) 2000(a) 1999 1998(f)
------ ------ ------ ------ ------ ------
$13.08 $12.82 $15.38 $12.77 $12.70 $15.16
------ ------ ------ ------ ------ ------
(0.09)(b) (0.29)(b) (0.20)(b) (0.14)(b) (0.43)(b) (0.28)(b)
1.29 1.97 (1.37) 1.28 1.92 (1.19)
------ ------ ------ ------ ------ ------
1.20 1.68 (1.57) 1.14 1.49 (1.47)
------ ------ ------ ------ ------ ------
-- -- -- -- -- --
-- (1.42) (0.99) -- (1.42) (0.99)
------ ------ ------ ------ ------ ------
-- (1.42) (0.99) -- (1.42) (0.99)
------ ------ ------ ------ ------ ------
$14.28 $13.08 $12.82 $13.91 $12.77 $12.70
====== ====== ====== ====== ====== ======
9.17% 14.48% (9.82)% 8.93% 13.11% (9.32)%
$3 $2 $2 $1 $1 $1
3.25%(c) 4.17% 3.93%(c) 3.79%(c) 5.35% 4.93%(c)
(1.27)%(c) (2.41)% (2.58)%(c) (2.03)%(c) (3.62)% (3.46)%(c)
253% 109% 168% 253% 109% 168%
(a) For the six months ended 30th June, 2000 (unaudited).
(b) Net investment income per share has been determined based on the weighted
average shares outstanding method.
(c) Annualized.
(d) Ratios of expenses to average net assets for the year ended 31st December,
1996 include amounts paid through expense offset arrangements. Prior and
subsequent ratios exclude these amounts.
(e) For the period from 26th May, 1998 (commencement of operations) to 31st
December, 1998.
(f) For the period from 20th May, 1998 (commencement of operations) to 31st
December, 1998.
(*) Total return calculated for a period of less than one year is not
annualized.
63
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
GAM NORTH AMERICA FUND
<TABLE>
<CAPTION>
------------------------------------------------------------------
CLASS A
------------------------------------------------------------------
------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
beginning of period $18.30 $16.74 $17.32 $13.56 $11.93 $9.14
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.05)(b) (0.07)(b) (0.07)(b) --(b) (0.05)(b) --
Net realized and unrealized gain/(loss)
on investments 0.64 1.63 4.76 3.99 2.93 2.83
------ ------ ------ ------ ------ ------
Total from investment operations 0.59 1.56 4.69 3.99 2.88 2.83
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- -- -- -- --
Distributions from net realized gains -- -- (5.27) (0.23) (1.25) (0.04)
------ ------ ------ ------ ------ ------
Total distributions -- -- (5.27) (0.23) (1.25) (0.04)
------ ------ ------ ------ ------ ------
Net asset value, end of period $18.89 $18.30 $16.74 $17.32 $13.56 $11.93
====== ====== ====== ====== ====== ======
TOTAL RETURN
Total return for the period
without deduction of sales load (*) 3.22% 9.32% 29.44% 29.41% 24.10% 30.90%
RATIOS/SUPPLEMENTAL DATA
Total net assets (millions) $23 $29 $17 $11 $6
Ratio of expenses to average net assets 1.97%(c) 1.90% 2.10% 1.94% 2.61%(d) 2.98%(e)
Ratio of net investment income/(loss)
to average net assets (0.58)%(c) (0.42)% (0.34)% 0.00% (0.39)% 0.01%
Portfolio turnover rate 2% 13% 70% 15% 9% 9%
</TABLE>
64
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
--------------------------------------------------------------------------------
------------------------------ ------------------------------
CLASS B CLASS C
------------------------------ ------------------------------
2000(a) 1999 1998(f) 2000(a) 1999 1998(g)
------ ------ ------ ------ ------ ------
$18.19 $16.87 $20.08 $17.91 $16.58 $21.58
------ ------ ------ ------ ------ ------
(0.12)(b) (0.29)(b) (0.57)(b) (0.13)(b) (0.25)(b) (0.44)(b)
0.64 1.61 2.17 0.62 1.58 0.25
------ ------ ------ ------ ------ ------
0.52 1.32 1.60 0.49 1.33 (0.19)
------ ------ ------ ------ ------ ------
-- -- -- -- -- --
-- -- (4.81) -- -- (4.81)
------ ------ ------ ------ ------ ------
-- -- (4.81) -- -- (4.81)
------ ------ ------ ------ ------ ------
$18.71 $18.19 $16.87 $18.40 $17.91 $16.58
====== ====== ====== ====== ====== ======
2.86% 7.82% 9.68% 2.74% 8.02% 0.69%
$3 $4 $1 $3 $6 $1
2.78%(c) 3.11% 7.56%(c) 2.86%(c) 2.90% 8.16%(c)
(1.39)%(c) (1.66)% (5.81)%(c) (1.46)%(c) (1.45)% (6.50)%(c)
2% 13% 70% 2% 13% 70%
(a) For the six months ended 30th June, 2000 (unaudited).
(b) Net investment income per share has been determined based on the weighted
average shares outstanding method.
(c) Annualized.
(d) Ratios of expenses to average net assets for the year ended 31st December,
1996 include amounts paid through expense offset arrangements. Prior and
subsequent ratios exclude these amounts.
(e) In the absence of expense reimbursement, expense on an annualized basis
would have been 3.27% of average net assets for the period ended 31st
December, 1995.
(f) For the period from 26th May, 1998 (commencement of operations) to 31st
December, 1998.
(g) For the period from 7th July, 1998 (commencement of operations) to 31st
December, 1998.
(*) Total return calculated for a period of less than one year is not
annualized.
65
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
GAMERICA CAPITAL FUND
<TABLE>
<CAPTION>
------------------------------------------------------------------
CLASS A
------------------------------------------------------------------
------------------------------------------------------------------
2000(a) 1999 1998 1997 1996 1995(f)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
beginning of period $21.45 $17.08 $13.43 $10.82 $10.03 $10.00
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.02(b) 0.13(b) (0.01)(b) (0.24)(b) (0.42)(b) 0.07
Net realized and unrealized gain/(loss)
on investments 2.02 4.78 4.08 4.23 2.22 0.07
------ ------ ------ ------ ------ ------
Total from investment operations 2.04 4.91 4.07 3.99 1.80 0.14
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income -- (0.07) -- -- -- (0.07)
Distributions from net realized gains -- (0.47) (0.42) (1.38) (1.01) (0.04)
------ ------ ------ ------ ------ ------
Total distributions -- (0.54) (0.42) (1.38) (1.01) (0.11)
------ ------ ------ ------ ------ ------
Net asset value, end of period $23.49 $21.45 $17.08 $13.43 $10.82 $10.03
====== ====== ====== ====== ====== ======
TOTAL RETURN
Total return for the period
without deduction of sales load (*) 9.51% 28.97% 30.59% 37.28% 18.31% 1.38%
RATIOS/SUPPLEMENTAL DATA
Total net assets (millions) $57 $51 $11 $4 $2 $3
Ratio of expenses to average net assets 1.65%(c) 1.84% 2.46% 3.45% 5.16%(d)(e) 3.73%(c)(e)
Ratio of net investment income/(loss)
to average net assets 0.15%(c) 0.66% (0.03)% (2.04)% (3.79)% 1.36%(c)
Portfolio turnover rate 20% 20% 29% 22% 27% 11%
</TABLE>
66
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
================================================================================
------------------------------ ------------------------------
CLASS B CLASS C
------------------------------ ------------------------------
2000(a) 1999 1998(e) 2000(a) 1999 1998(f)
------ ------ ------ ------ ------ ------
$21.54 $17.26 $16.57 $21.42 $17.13 $16.57
------ ------ ------ ------ ------ ------
(0.06)(b) (0.07)(b) (0.26)(b) (0.06)(b) (0.04)(b) (0.37)(b)
2.06 4.82 1.10 2.01 4.80 1.08
------ ------ ------ ------ ------ ------
2.00 4.75 0.84 1.95 4.76 0.71
------ ------ ------ ------ ------ ------
-- -- -- -- -- --
-- (0.47) (0.15) -- (0.47) (0.15)
------ ------ ------ ------ ------ ------
-- (0.47) (0.15) -- (0.47) (0.15)
------ ------ ------ ------ ------ ------
$23.54 $21.54 $17.26 $23.37 $21.42 $17.13
====== ====== ====== ====== ====== ======
9.29% 27.68% 5.13% 9.10% 27.95% 4.34%
$11 $9 $1 $10 $10 $1
2.39%(c) 2.88 %5.19%(c) 2.38%(c) 2.74% 7.15%(c)
(0.59)%(c) (0.34)% (2.74)%(c) (0.60)%(c) (0.23)% (4.77)%(c)
20% 20% 29% 20% 20% 29%
(a) For the six months ended 30th June, 2000 (unaudited).
(b) Net investment income per share has been determined based on the weighted
average shares outstanding method.
(c) Annualized.
(d) Ratios of expenses to average net assets for the year ended 31st December,
1996 include amounts paid through expense offset arrangements. Prior and
subsequent ratios exclude these amounts.
(e) In the absence of expense reimbursement, expenses on an annualized basis
would have been 6.16% and 4.73% of average net assets for the period ended
31st December, 1996 and 31st December, 1995, respectively.
(f) For the period 12th May, 1995 (commencement of operations) to 31st December,
1995.
(g) For the period 26th May, 1998 (commencement of operations) to 31st December,
1998.
(*) Total return calculated for a period of less than one year is not
annualized.
67
====
GAM FUNDS INC / NOTES TO FINANCIAL STATEMENTS
<PAGE>
Board of Directors
Dr Burkhard Poschadel - President CHIEF EXECUTIVE OFFICER,
Global Asset Management Limited
George W. Landau SENIOR ADVISER, Latin America Group,
The Coca-Cola Company, New York
Roland Weiser PRESIDENT, Intervista, Summit, New Jersey
Robert J. McGuire, Esq. ATTORNEY/CONSULTANT, Morvillo, Abramowitz,
Grand, Iason & Silberberg, P.C.,
New York, New York
Address of the Company 135 East 57th Street
New York, New York 10022
Tel: (212) 407-4600
1-800-426-4685 (toll free)
Fax: (212) 407-4684
Registrar and Transfer Agent Boston Financial Data Services
P.O. Box 8264
Boston, Massachusetts 02266-8264
Tel: 1-800-426-4685 (toll free)
Fax: (617) 483-2405
--------------------------------------------------------------------------------
Copies of this report may be obtained from the Fund, from the
Transfer Agent or from:
In the United Kingdom (for authorized persons only);
Global Asset Management Limited, a member of IMRO,
12 St. James's Place, London SW1A 1NX, UK
Tel: 44-207-493-9990 Fax: 44-207-493-0715 Tlx: 296099 GAMUK G
On Internet;
Information on GAM's SEC-registered funds -www.gam.com
Email enquiries on GAM - [email protected]
