<PAGE>
[LOGO]
G.T. LATIN AMERICA GROWTH FUND
G.T. GLOBAL EMERGING MARKETS FUND
SUPPLEMENT TO PROSPECTUS DATED
MARCH 1, 1995
- --------------------------------------------------------------------------------
The following information supersedes and replaces the description of the Funds'
portfolio management teams contained in the section of the Funds' Prospectus on
page 39 entitled "Management":
"The investment professionals primarily responsible for the portfolio management
of the Funds are as follows:
EMERGING MARKETS FUND
<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
- ------------------------ ------------------------------ ------------------------------------------------------------
<S> <C> <C>
Jonathan Chew Portfolio Manager since Fund Portfolio Manager for G.T. Capital since 1990; Portfolio
London inception in 1992 Manager for G.T. Management Ltd. (Hong Kong) since 1988.
James M. Bogin Portfolio Manager since 1993 Portfolio Manager for G.T. Capital since 1993; From 1989 to
San Francisco 1993, Mr. Bogin was a Fund Manager at Nomura Investment
Management Co. (Tokyo).
John R. Legat Portfolio Manager since 1995 Portfolio Manager for G.T. Capital and G.T. Management PLC
London (London).
<CAPTION>
LATIN AMERICA GROWTH FUND
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
- ------------------------ ------------------------------ ------------------------------------------------------------
<S> <C> <C>
Soraya M. Betterton Portfolio Manager since Fund Portfolio Manager for G.T. Capital."
San Francisco inception in 1991
</TABLE>
On page 43, under "Other Information -- Confirmations and Reports to
Shareholders," the following information should be inserted immediately prior to
the last sentence of the paragraph: "Under certain circumstances, duplicate
mailings of such reports to the same household may be consolidated."
The following revisions have been made relating to the eligibility requirements
for investing in Advisor Class shares of each of the G.T. Latin America Growth
Fund and the G.T. Global Emerging Markets Fund.
On page 12, under "Alternative Purchase Plan -- Advisor Class Shares," section
(b) is amended to read "any account with assets of at least $25,000 if (i) a
financial planner, trust company... ," and section (c) is amended to read "any
account with assets of at least $25,000 if (i) such account is established under
a 'wrap fee' program... ." The rest of the qualifications in (b) and (c) and the
other eligible groups described under sections (a), (d) and (e) in that
paragraph remain unchanged.
Under "Other Information -- Custodian and Accounting Agent," it should be noted
that effective July 1, 1995, G.T. Capital serves as each Fund's pricing and
accounting agent. The monthly fee for these services to G.T. Capital is a
percentage, not to exceed 0.03% annually, of the Fund's average daily net
assets. The annual fee rate is derived by applying 0.03% to the first $5 billion
of assets of all registered mutual funds advised by G.T. Capital ("G.T. Funds")
and 0.02% to the assets in excess of $5 billion and dividing the result by the
aggregate assets of the G.T. Funds.
LEMSU510100MC October 20, 1995
<PAGE>
[LOGO] G.T. LATIN AMERICA GROWTH FUND
G.T. GLOBAL EMERGING MARKETS FUND
PROSPECTUS -- MARCH 1, 1995
- --------------------------------------------------------------------------------
G.T. Global Emerging Markets Fund ("Emerging Markets Fund") is a mutual fund,
organized as a diversified series of G.T. Investment Funds, Inc., seeking
long-term growth of capital. The Emerging Markets Fund primarily invests in
equity securities of companies in emerging markets. G.T. Latin America Growth
Fund ("Latin America Growth Fund") is a mutual fund, organized as a
non-diversified series of G.T. Investment Funds, Inc., that seeks capital
appreciation by investing at least 65% of its total assets in securities of a
broad range of Latin American issuers, including common stock and other equity
securities, as well as debt securities.
The investment manager of Emerging Markets Fund and Latin America Growth Fund
(collectively, "Funds"), G.T. CAPITAL MANAGEMENT, INC. ("G.T. Capital"), is part
of the G.T. Group, a leading international investment advisory organization with
offices throughout the world that long has emphasized global investment. G.T.
Capital attempts to identify countries and industries where economic and
political factors, including currency movements, are likely to produce above
average growth rates, and to identify companies within such countries and
industries that are best positioned to benefit from these factors. There can be
no assurance that the Funds will achieve their investment objectives.
The Funds may invest significantly in lower quality and unrated foreign
government bonds whose credit quality is generally considered the equivalent of
U.S. corporate debt securities commonly known as "junk bonds." Investments of
this type are subject to a greater risk of loss of principal and interest.
Purchasers should carefully assess the risks associated with an investment in
either Fund.
THE FUNDS ARE INVESTMENT COMPANIES DESIGNED FOR LONG TERM INVESTORS AND NOT AS
TRADING VEHICLES. THE FUNDS DO NOT REPRESENT A COMPLETE INVESTMENT PROGRAM NOR
ARE THE FUNDS SUITABLE FOR ALL INVESTORS. AN INVESTMENT IN EITHER FUND SHOULD BE
CONSIDERED SPECULATIVE AND SUBJECT TO SPECIAL RISK FACTORS, RELATED PRIMARILY TO
THE FUNDS' INVESTMENTS IN EMERGING MARKETS AND LATIN AMERICA, RESPECTIVELY,
WHICH FACTORS SHOULD BE REVIEWED CAREFULLY BY POTENTIAL INVESTORS.
PROSPECTIVE WISCONSIN INVESTORS SHOULD NOTE THAT THE EMERGING MARKETS FUND MAY
(I) INVEST UP TO 10% OF ITS TOTAL ASSETS IN RESTRICTED SECURITIES AND (II) MAKE
SHORT SALES OF SECURITIES. THESE INVESTMENT ACTIVITIES MAY BE CONSIDERED
SPECULATIVE AND MAY INVOLVE GREATER RISK AND MAY INCREASE EMERGING MARKETS FUND
EXPENSES.
This Prospectus sets forth concisely the information an investor should know
before investing and should be read carefully and retained for future reference.
A Statement of Additional Information for each Fund dated March 1, 1995, has
been filed with the Securities and Exchange Commission and is incorporated by
reference. The Statement of Additional Information, which may be amended or
supplemented from time to time, is available without charge by writing to the
Funds at 50 California Street, 27th Floor, San Francisco, California 94111, or
calling (800) 824-1580.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR GUARANTEED BY,
ANY BANK, NOR ARE THEY FEDERALLY INSURED BY THE FEDERAL RESERVE BOARD, THE
FEDERAL DEPOSIT INSURANCE CORPORATION, OR ANY OTHER GOVERNMENT AGENCY.
An investment in one or both of the Funds offers the following advantages:
/ / Access to Securities Markets Around the World
/ / Professional Management by a Leading Manager with Offices in the World's
Major Markets
/ / Low $500 Minimum Investment
/ / Alternative Purchase Plan
/ / Automatic Dividend and Other Distribution Reinvestment at no Additional
Sales Charge
/ / Exchange Privileges with the Corresponding Classes of the Other G.T. Global
Mutual Funds
/ / Reduced Sales Charge Plans
/ / Dollar Cost Averaging Program
/ / Automatic Investment Plan
/ / Systematic Withdrawal Plan
FOR FURTHER INFORMATION CONTACT (800) 824-1580 OR YOUR STOCKBROKER.
- --------------------------------------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Prospectus Page 1
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
TABLE OF CONTENTS
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Page
---------
<S> <C>
Prospectus Summary........................................................................ 3
Financial Highlights...................................................................... 10
Alternative Purchase Plan................................................................. 12
Investment Objectives and Policies........................................................ 13
Risk Factors.............................................................................. 22
How to Invest............................................................................. 27
How to Make Exchanges..................................................................... 33
How to Redeem Shares...................................................................... 34
Shareholder Account Manual................................................................ 36
Calculation of Net Asset Value............................................................ 37
Dividends, Other Distributions and Federal Income Taxation................................ 37
Management................................................................................ 39
Other Information......................................................................... 43
</TABLE>
Prospectus Page 2
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
PROSPECTUS SUMMARY
- --------------------------------------------------------------------------------
The following summary is qualified in its entirety by the more detailed
information appearing in the body of this Prospectus.
<TABLE>
<S> <C> <C>
Investment Objectives: The Emerging Markets Fund seeks long-term growth of capital
The Latin America Growth Fund seeks capital appreciation
Principal Investments: The Emerging Markets Fund normally invests at least 65% of its
total assets in equity securities of companies in emerging markets
The Latin America Growth Fund normally invests at least 65% of its
total assets in equity and debt securities issued by Latin
American companies and governments
Investment Manager: G.T. Capital, part of the G.T. Group, a leading international
investment advisory organization with over $22 billion under
management including more than $6 billion in emerging markets
Alternative Purchase Plan: Investors may select Class A or Class B shares, each subject to
different expenses and a different sales charge structure
Class A Shares: Offered at net asset value plus any applicable sales charge
(maximum is 4.75% of public offering price) and subject to service
and distribution fees at the annualized rate of up to 0.50% of the
average daily net assets of the Class A shares of Emerging Markets
Fund and Latin America Growth Fund
Class B Shares: Offered at net asset value (a maximum contingent deferred sales
charge of 5% of the lesser of the shares' net asset value or the
original purchase price is imposed on certain redemptions made
within six years of date of purchase) and subject to service and
distribution fees at the annualized rate of up to 1.00% of the
average daily net assets of the Class B shares of each Fund
Shares Available Through: Most brokerage firms nationwide, or directly through the Funds'
distributor
Exchange Privileges: Shares of a class of either Fund may be exchanged for shares of
the corresponding class of other G.T. Global Mutual Funds without
a sales charge
Dividends and Other Distribu-
tions: Dividends paid annually from available net investment income and
realized net short-term capital gains; other distributions paid
annually from realized net capital gain and net gains from foreign
currency transactions, if any
Reinvestment: Distributions may be reinvested automatically in Fund shares of
the distributing class or in shares of the corresponding class of
other G.T. Global Mutual Funds without a sales charge
First Purchase: $500 minimum ($100 for IRAs and reduced amounts for certain other
retirement plans)
Subsequent Purchases: $100 minimum (reduced amounts for individual retirement accounts
("IRAs") and certain other retirement plans)
Net Asset Values: Each class of each Fund is quoted daily in the financial section
of most newspapers
Other Features:
Class A Shares Letter of Intent Dollar Cost Averaging Program
Quantity Discounts Systematic Withdrawal Plan
Right of Accumulation Automatic Investment Plan
Reinstatement Privilege
Class B Shares Reinstatement Privilege Automatic Investment Plan
Dollar Cost Averaging Program Systematic Withdrawal Plan
</TABLE>
Prospectus Page 3
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
THE FUNDS. The G.T. Global Emerging Markets Fund is a diversified mutual fund
and the G.T. Latin America Growth Fund is a non-diversified mutual fund, both
organized as series of G.T. Investment Funds, Inc. ("Company"), a registered
open-end investment management company. Shares of common stock of the Funds are
available through broker/dealers that have entered into agreements to sell
shares with the Funds' distributor, G.T. Global Financial Services, Inc. ("G.T.
Global"). Shares also may be acquired directly through the Funds' distributor or
through exchanges of shares of the other G.T. Global Mutual Funds. See "How to
Invest" and "Shareholder Account Manual." Shares may be redeemed either through
broker/dealers or G.T. Global Investor Services, Inc. ("Transfer Agent"). See
"How to Redeem Shares" and "Shareholder Account Manual."
INVESTMENT MANAGER AND ADMINISTRATOR. G.T. Capital is the Funds' investment
manager and administrator. G.T. Capital provides investment management or
administration services to all of the G.T. Global Mutual Funds as well as other
institutional, corporate and individual clients. G.T. Capital is part of the
G.T. Group, a leading international investment advisory organization that long
has emphasized global investing. The G.T. Group maintains fully staffed
investment offices in San Francisco, London, Tokyo, Toronto, Hong Kong,
Singapore and Sydney. As of January 3, 1995, total assets under G.T. Group
management exceeded $22 billion, of which more than $19 billion was invested in
the securities of non-U.S. issuers. Of this amount, more than $6 billion was
invested in emerging markets including the securities of Latin American issuers.
The companies comprising the G.T. Group are indirect subsidiaries of the Prince
of Liechtenstein Foundation. See "Management."
INVESTMENT OBJECTIVES, POLICIES AND RISK FACTORS.
EMERGING MARKETS FUND: The Emerging Markets Fund seeks long-term growth of
capital. It normally invests at least 65% of its total assets in equity
securities of companies in emerging markets. The Emerging Markets Fund considers
emerging markets to include all the world's countries except the United States,
Canada, Japan, Australia, New Zealand and most countries in Western Europe. See
"Investment Objectives and Policies" for a list of the emerging markets in which
the Emerging Markets Fund will consider investing for purposes of this 65%
policy. The Emerging Markets Fund may invest in the following types of equity
securities: common stocks, preferred stocks, securities convertible into such
stocks and rights and warrants to acquire such securities.
Consistent with its investment objective, the Emerging Markets Fund may invest
up to 35% of its total assets in a combination of: (i) debt securities of
government or corporate issuers in emerging markets; (ii) equity and debt
securities of issuers in developed countries, including the United States; (iii)
securities of issuers in emerging markets not specifically listed in this
Prospectus where investing may become feasible and desirable subsequent to the
date of this Prospectus; and (iv) cash and money market instruments.
The Emerging Markets Fund may invest up to 20% of its total assets in debt
securities rated below investment grade, and additionally may invest up to 15%
of its net assets in illiquid securities.
For temporary defensive purposes, the Emerging Markets Fund may hold cash (U.S.
dollars or foreign currencies) and/or invest any portion of its assets in high
quality debt securities or money market instruments of U.S. or foreign issuers.
The Emerging Markets Fund also may hold cash and invest in high quality foreign
or domestic money market instruments pending investment of proceeds from sales
of Emerging Markets Fund shares, or to meet its ordinary daily cash needs.
See "Investment Objectives and Policies" in the body of the Prospectus for a
more complete discussion of the Emerging Markets Fund's investment policies.
RISK FACTORS: EMERGING MARKETS FUND. There is no assurance that the Emerging
Markets Fund will achieve its investment objective. The Emerging Markets Fund's
net asset value will fluctuate, reflecting fluctuations in the market value of
its portfolio positions, expressed in U.S. dollars.
Prospectus Page 4
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
Investments in foreign securities involve risks relating to political and
economic developments abroad and the differences between the regulations to
which U.S. and foreign issuers are subject. Individual foreign economies may
differ favorably or unfavorably from the U.S. economy. Changes in foreign
currency exchange rates affect the Emerging Markets Fund's net asset value,
earnings and gains and losses realized on sales of securities. Securities of
foreign companies may be less liquid and their prices more volatile than those
of securities of comparable U.S. companies. Each of these risks generally is
greater for investments in emerging markets. Because of the special risks
associated with investing in emerging markets, an investment in the Emerging
Markets Fund should be considered speculative. Certain foreign countries may
impose withholding taxes on income earned and/or gains realized by the Emerging
Markets Fund in connection with investments in such countries. See "Risk
Factors."
Investment by the Emerging Markets Fund in debt securities rated below
investment grade involves a high degree of risk. Certain of such investments may
be regarded as speculative. See "Risk Factors."
LATIN AMERICA GROWTH FUND: The Latin America Growth Fund's investment objective
is capital appreciation. The Latin America Growth Fund normally invests at least
65% of its total assets in securities of a broad range of Latin American
issuers. Under current market conditions, the Latin America Growth Fund expects
to invest primarily in equity and debt securities issued by companies and
governments in Mexico, Chile, Brazil and Argentina. However, the Latin America
Growth Fund reserves the right to be primarily invested in U.S. securities for
temporary defensive purposes or pending investment of the proceeds of new sales
of Fund shares.
Although investment opportunities in certain Latin American countries currently
may be limited, G.T. Capital believes that the potential for investment
opportunities and capital appreciation in such countries is likely to be
substantial. Though the Latin America Growth Fund may invest throughout Latin
America, the Latin America Growth Fund intends to focus its investments in
Mexico, Chile, Brazil and Argentina, which have the most developed capital
markets in Latin America. The amount invested in any one of these four countries
will vary depending on economic and other market conditions and the regulatory
environment with respect to that country. From time to time, a significant
portion of the Latin America Growth Fund's assets may be invested in any one of
them.
In selecting securities for the Latin America Growth Fund, G.T. Capital attempts
to identify those countries and industries where economic and political factors
are likely to produce above-average growth, and then selects those investments
within the countries and industries so identified that in G.T. Capital's view
are best positioned and managed to take advantage of such factors. See
"Investment Objectives and Policies" and "Risk Factors." Under normal market
conditions, the Latin America Growth Fund expects that a majority of its
investment portfolio will be comprised of equity securities. Equity securities
in which the Latin America Growth Fund may invest include common stocks,
preferred stocks and warrants to acquire such securities. Under normal
circumstances, the Latin America Growth Fund may invest up to 35% of its total
assets in a combination of equity and debt securities of U.S. issuers.
The portion of the Latin America Growth Fund's assets not invested in equity
securities may be invested in corporate and government debt securities and in
money market securities (as defined herein). The Latin America Growth Fund may
seek capital appreciation through investment in such debt securities, which
would occur through favorable changes in relative foreign exchange rates, in
relative interest rate levels, or in the creditworthiness of issuers. The
receipt of income from such debt securities is incidental to the Fund's
objective of capital appreciation.
In particular, the Latin America Growth Fund normally may invest up to 50% of
its total assets in external debt obligations issued or guaranteed by Latin
American governments or governmental entities. External debt obligations are
those in which a foreign entity or individual extends credit to
Prospectus Page 5
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
a Latin American borrower. In addition, the Latin America Growth Fund may hold
and trade certain debt securities issued by Latin American governments
("Sovereign Debt"), including those that are or may become eligible for
conversion into investments in Latin American enterprises under debt conversion
programs sponsored by various Latin American countries, or may convert such debt
into equity or other investments under debt conversion programs. See "Investment
Objectives and Policies" and "Risk Factors."
The Fund may invest in certain money market securities (as defined herein) for
the purpose of generating income to defray Latin America Growth Fund expenses,
for temporary defensive purposes and pending investment in accordance with the
Latin America Growth Fund's investment objective and policies.
RISK FACTORS: LATIN AMERICA GROWTH FUND. There is no assurance that the Latin
America Growth Fund will achieve its investment objective. The Latin America
Growth Fund's net asset value will fluctuate, reflecting fluctuations in the
market value of its portfolio positions and in the rate of exchange between the
currencies in which its positions are traded and the U.S. dollar. Because of the
Latin America Growth Fund's policy of investing primarily in securities of
foreign issuers, and specifically of Latin American issuers, an investment in
the Latin America Growth Fund requires consideration of certain factors that are
not typically associated with investing in securities of most U.S. issuers. Risk
factors associated with investment in the Latin America Growth Fund include: (1)
political, economic and certain other risks, such as expropriation,
nationalization or confiscation of the Latin America Growth Fund's assets or the
imposition of restrictions on foreign investment or the repatriation of capital
invested; (2) religious, political and ethnic instability; (3) custodial,
pricing and settlement issues; (4) the economic condition of Latin American
countries; (5) non-uniform accounting, auditing and corporate disclosure
standards and governmental regulation which may lead to less publicly available
and less reliable information concerning Latin American issuers than is
typically the case with respect to U.S. issuers; (6) less regulation of Latin
American securities markets generally than is the case in the U.S.; (7) currency
fluctuations; (8) the risk of currency devaluation; (9) high levels of
inflation; (10) smaller, less developed, less liquid and more volatile markets
than the major U.S. securities markets; and (11) the imposition of foreign
withholding taxes on the investment income and trading profits of the Latin
America Growth Fund.
Trading in Sovereign Debt involves a high degree of risk. The issuer of the debt
or the governmental authorities that control the repayment of the debt may be
unable or unwilling to repay principal and/or interest when due in accordance
with the terms of such debt. Sovereign Debt in which the Latin America Growth
Fund will invest is widely considered to have a credit quality below investment
grade as determined by U.S. rating agencies (and as low as securities rated C by
Standard & Poor's Ratings Group ("S&P") or Moody's Investors Service, Inc.
("Moody's")). As a result, Sovereign Debt may be regarded as predominantly
speculative with respect to the issuer's capacity to pay interest and repay
principal in accordance with the terms of the obligations and involves major
risk exposure to adverse conditions.
The Latin America Growth Fund normally invests in a substantial number of
issuers; however, the Fund's classification as a non-diversified investment
company under the Investment Company Act of 1940, as amended ("1940 Act") means
that the Latin America Growth Fund may invest a larger percentage of its assets
in individual issuers than a diversified investment company. As a result, its
exposure to credit and market risks associated with each such issuer is
increased. See "Risk Factors" and "Other Information."
EXPENSES. Each Fund pays G.T. Capital investment management and administration
fees, based on the average daily net assets of the Fund, at the annualized rate
of .975% on the first $500 million, .95% on the next $500 million, .925% on the
next $500 million, and .90% on amounts thereafter. As the Fund's distributor,
G.T. Global collects the sales charges imposed on purchases of Class A shares,
and reallows all or a portion of such
Prospectus Page 6
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
charges to broker/dealers that have made such sales. In addition, G.T. Global
collects any contingent deferred sales charges that may be imposed on certain
redemptions of Class A and on redemptions of Class B shares. G.T. Global also
pays brokers and other financial institutions ongoing payments for servicing
shareholder accounts and for sales efforts.
Pursuant to a distribution plan adopted in accordance with Rule 12b-1 under the
1940 Act, with respect to its Class A shares, the Funds may pay G.T. Global a
service fee at the annualized rate of up to 0.25% of the average daily net
assets of the respective Fund's Class A shares as reimbursement for its
expenditures incurred in servicing and maintaining shareholder accounts, and may
pay G.T. Global a distribution fee at the annualized rate of up to 0.50% of the
average daily net assets of the Funds' Class A shares, less any amounts paid by
these Funds as the aforementioned service fee, for its expenditures incurred in
providing services as distributor. Pursuant to a separate distribution plan
adopted in accordance with Rule 12b-1 under the 1940 Act with respect to its
Class B shares, the Funds may pay G.T. Global a service fee at the annualized
rate of up to 0.25% of the average daily net assets of Class B shares for its
expenditures incurred in servicing and maintaining shareholder accounts, and may
pay G.T. Global a distribution fee at the annualized rate of up to 0.75% of the
average daily net assets of its Class B shares as reimbursement for its
expenditures incurred in providing services as distributor. Each Fund pays all
its expenses not assumed by G.T. Capital, G.T. Global or other agents. G.T.
Capital and G.T. Global have undertaken to limit each Fund's expenses (exclusive
of brokerage commissions, taxes, interest and extraordinary expenses) to the
annual rate of 2.40% and 2.90% of the average daily net assets of the Fund's
Class A and Class B shares, respectively. See "Management."
Prospectus Page 7
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
G.T. GLOBAL EMERGING MARKETS FUND
SUMMARY OF INVESTOR COSTS. The expenses and maximum transaction costs associated
with investing in the Class A and Class B shares of the Emerging Markets Fund
are reflected in the following tables+*:
<TABLE>
<CAPTION>
CLASS A CLASS B
----------- -----------
<S> <C> <C>
SHAREHOLDER TRANSACTION COSTS:
Maximum sales charge on purchases (as a % of offering price)...................................... 4.75% None
Sales charges on reinvested distributions to shareholders......................................... None None
Maximum contingent deferred sales charge.......................................................... None 5.00%
Redemption charges................................................................................ None None
Exchange fees:
-- On first four exchanges each year............................................................ None None
-- On each additional exchange.................................................................. $ 7.50 $ 7.50
ANNUAL FUND OPERATING EXPENSES:
(AS A % OF AVERAGE NET ASSETS)
Investment management and administration fees..................................................... 0.98% 0.98%
12b-1 distribution and service fees............................................................... 0.50% 1.00%
Other expenses.................................................................................... 0.58% 0.58%
----- -----
Total Fund Operating Expenses....................................................................... 2.06% 2.56%
----- -----
----- -----
</TABLE>
Sales charge waivers are available for Class A and Class B shares, and reduced
sales charge purchase plans are available for Class A shares. The maximum 5%
contingent deferred sales charge on Class B shares applies to redemptions during
the first year after purchase; the charge generally declines by 1% annually
thereafter, reaching zero after six years. See "How to Invest."
HYPOTHETICAL EXAMPLE OF EFFECT OF EXPENSES*:
An investor directly or indirectly would have paid the following expenses at the
end of the periods shown on a $1,000 investment, assuming a 5% annual return:
<TABLE>
<CAPTION>
FIVE
ONE YEAR THREE YEARS YEARS
----- ----------- -----
<S> <C> <C> <C>
Class A Shares (1)....................................................................... $ 68 $ 109 $ 153
Class B Shares
Assuming a complete redemption at end of period (2).................................. 76 109 154
Assuming no redemption............................................................... 26 79 134
<CAPTION>
TEN
YEARS
-----
<S> <C>
Class A Shares (1)....................................................................... $ 273
Class B Shares
Assuming a complete redemption at end of period (2).................................. 286
Assuming no redemption............................................................... 286
<FN>
- ------------------
(1) Assumes payment of maximum sales charge by the investor.
(2) Assumes payment of the applicable contingent deferred sales charge.
+ The Fund is authorized to offer Advisor Class shares to certain categories
of investors. See "Alternative Purchase Plan." Advisor Class shares are not
subject to a distribution or service fee. "Total Fund Operating Expenses"
for Advisor Class shares are estimated to approximate 1.56% for the
Emerging Markets Fund.
* THESE TABLES ARE INTENDED TO ASSIST INVESTORS IN UNDERSTANDING THE VARIOUS
COSTS AND EXPENSES ASSOCIATED WITH INVESTING IN THE FUND. Expenses are
based on the Fund's fiscal year ended October 31, 1994. Long-term
shareholders may pay more than the economic equivalent of the maximum
front-end sales charges permitted by the National Association of Securities
Dealers, Inc. ("NASD") rules regarding investment companies. "Other
expenses" include custody, transfer agent, legal, audit and other expenses.
"Other expenses" may be reduced to the extent that (i) certain
broker/dealers executing the Fund's portfolio transactions pay all or a
portion of the Fund's custodian fees or transfer agency expenses, or (ii)
fees received in connection with the lending of portfolio securities are
used to reduce custodian fees. These arrangements are not anticipated to
materially increase brokerage commissions paid by the Fund. For the fiscal
year ended October 31, 1994, without such reductions, "Other expenses" for
the Fund would have been 0.60% for Class A shares and 0.60% for Class B
shares. See "Management" herein and in the Statement of Additional
Information for more information. THE "HYPOTHETICAL EXAMPLE" SET FORTH
ABOVE IS NOT A REPRESENTATION OF FUTURE EXPENSES; THE FUND'S ACTUAL
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN. The above tables and the
assumption in the example of a 5% annual return are required by regulation
of the Securities and Exchange Commission applicable to all mutual funds;
the 5% annual return is not a prediction of and does not represent the
Fund's projected or actual performance.
</TABLE>
Prospectus Page 8
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
PROSPECTUS SUMMARY
(Continued)
- --------------------------------------------------------------------------------
G.T. LATIN AMERICA GROWTH FUND
SUMMARY OF INVESTOR COSTS. The expenses and maximum transaction costs associated
with investing in the Class A and Class B shares of the Latin America Growth
Fund are reflected in the following tables+*:
<TABLE>
<CAPTION>
CLASS A CLASS B
----------- -----------
<S> <C> <C>
SHAREHOLDER TRANSACTION COSTS:
Maximum sales charge on purchases of shares (as a % of offering price)............................. 4.75% None
Sales charges on reinvested distributions to shareholders.......................................... None None
Maximum contingent deferred sales charges.......................................................... None 5.00 %
Redemption charges................................................................................. None None
Exchange fees:
-- On first four exchanges each year........................................................... None None
-- On each additional exchange................................................................. $ 7.50 $ 7.50
ANNUAL FUND OPERATING EXPENSES:
(AS A % OF AVERAGE NET ASSETS)
Investment management and administration fees...................................................... 0.97 % 0.97 %
12b-1 distribution and service fees................................................................ 0.50 % 1.00 %
Other expenses..................................................................................... 0.57 % 0.57 %
----- -----
Total Fund Operating Expenses........................................................................ 2.04 % 2.54 %
----- -----
----- -----
</TABLE>
Sales charge waivers are available for Class A and Class B shares, and reduced
sales charge purchase plans are available for Class A shares. The maximum 5%
contingent deferred sales charge on Class B shares applies to redemptions during
the first year after purchase; the charge generally declines by 1% annually
thereafter, reaching zero after six years. See "How to Invest."
HYPOTHETICAL EXAMPLE OF EFFECT OF EXPENSES*:
An investor would have directly or indirectly paid the following expenses at the
end of the periods shown on a $1,000 investment in the Fund, assuming a 5%
annual return:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS
----- ----------- -----
<S> <C> <C> <C>
Class A Shares (1)....................................................................... $ 68 $ 109 $ 152
Class B Shares
Assuming a complete redemption at end of period (2).................................. 75 108 153
Assuming no redemption............................................................... 25 78 133
<CAPTION>
TEN YEARS
-----
<S> <C>
Class A Shares (1)....................................................................... $ 271
Class B Shares
Assuming a complete redemption at end of period (2).................................. 284
Assuming no redemption............................................................... 284
<FN>
- ------------------
(1) Assumes payment of payment of maximum sales charge by the investor.
(2) Assumes payment of the applicable contingent deferred sales charge.
+ The Fund is authorized to offer Advisor Class shares to certain categories
of investors. See "Alternative Purchase Plan." Advisor Class shares are not
subject to a distribution or service fee. "Total Fund Operating Expenses"
for Advisor Class shares are estimated to approximate 1.54% for the Latin
America Growth Fund.
* THESE TABLES ARE INTENDED TO ASSIST INVESTORS IN UNDERSTANDING THE VARIOUS
COSTS AND EXPENSES ASSOCIATED WITH INVESTING IN THE FUND. Expenses are
based on the Fund's fiscal year ending October 31, 1994. Long-term
shareholders may pay more than the economic equivalent of the maximum
front-end sales charges permitted by the National Association of Securities
Dealers, Inc. ("NASD") rules regarding investment companies. "Other
expenses" include custody, transfer agent, legal, audit and other expenses.
"Other expenses" may be reduced to the extent that (i) certain
broker/dealers executing the Fund's portfolio transactions pay all or a
portion of the Fund's custodian fees or transfer agency expenses, or (ii)
fees received in connection with the lending of portfolio securities are
used to reduced custodian fees. These arrangements are not anticipated to
materially increase the brokerage commissions paid by the Fund. For the
fiscal year ended October 31, 1994, without such reductions, "Other ex-
penses" for the Fund would have been 0.57% for Class A shares and 0.57% for
Class B shares. See "Management" herein and in the Statement of Additional
Information for more information. THE "HYPOTHETICAL EXAMPLE" SET FORTH
ABOVE IS NOT A REPRESENTATION OF FUTURE EXPENSES; THE FUND'S ACTUAL
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN. The above tables and the
assumption in the Example of a 5% annual return are required by regulation
of the Securities and Exchange Commission applicable to all mutual funds;
the 5% annual return is not a prediction of and does not represent the
Fund's projected or actual performance.
</TABLE>
Prospectus Page 9
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The tables below provide condensed information concerning income and capital
changes for one share of each class of shares of each Fund for the periods
shown. This information is supplemented by the financial statements and
accompanying notes appearing in the Statement of Additional Information. The
financial statements and notes, for the fiscal year ended October 31, 1994, have
been audited by Coopers & Lybrand L.L.P., independent accountants, whose report
thereon also is included in the Statement of Additional Information.
G.T. GLOBAL EMERGING MARKETS FUND
<TABLE>
<CAPTION>
CLASS A++
CLASS B+ ---------------------------------------------------------
----------------------------------- MAY 18, 1992
APRIL 1, 1993 (COMMENCEMENT OF
YEAR ENDED TO YEAR ENDED YEAR ENDED OPERATIONS)
OCTOBER 31, 1994 OCTOBER 31, 1993 OCTOBER 31, 1994 OCTOBER 31, 1993 TO OCTOBER 31, 1992
---------------- ---------------- ---------------- ---------------- -------------------
<S> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of
year............................ $ 14.39 $ 11.47 $ 14.42 $ 11.10 $ 11.43
---------------- -------- ---------------- ---------------- --------
Income from investment operations:
Net investment income (loss)...... (0.12) 0.00** (0.02) 0.02* 0.07*
Net realized and unrealized gain
(loss) on investments........... 4.67 2.92 4.68 3.38 (0.40)
---------------- -------- ---------------- ---------------- --------
Net increase (decrease) from
investment operations........... 4.55 2.92 4.66 3.40 (0.33)
---------------- -------- ---------------- ---------------- --------
Distributions:
Net investment income........... (0.00) (0.00) (0.01) (0.08) (0.00)
Net realized gain on
investments.................... (0.26) (0.00) (0.26) (0.00) (0.00)
---------------- -------- ---------------- ---------------- --------
Total distributions........... (0.26) (0.00) (0.27) (0.08) (0.00)
---------------- -------- ---------------- ---------------- --------
Net asset value, end of year...... $ 18.68 $ 14.39 $ 18.81 $ 14.42 $ 11.10
---------------- -------- ---------------- ---------------- --------
---------------- -------- ---------------- ---------------- --------
Total investment return (c)....... 31.77% 25.5%(a) 32.58% 30.9% (2.9)%(a)
---------------- -------- ---------------- ---------------- --------
---------------- -------- ---------------- ---------------- --------
Ratios and supplemental data:
Net assets, end of year (in
000's).......................... $291,289 $32,318 $417,322 $187,808 $84,558
Ratio of net investment income
(loss) to average net assets.... (0.61)% (0.4)%**(b) (0.11)% 0.1%* 1.7%*(b)
Ratio of expenses
to average net assets
before expense reductions....... 2.58% 2.08%
Ratio of expenses to average net
assets.......................... 2.56% 2.9%**(b) 2.06% 2.4%* 2.4%*(b)
Portfolio turnover rate +++....... 100% 99% 100% 99% 32%(b)
<FN>
- ------------------
+ Commencing April 1, 1993, the Fund began offering Class B shares.
++ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
+++ Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
* Includes reimbursement by G.T. Capital Management, Inc. of Fund Class A
shares operating expenses of $0.02 for the year ended October 31, 1993 and
for the period from May 18, 1992 (commencement of operations) to October
31, 1992. Without such reimbursement, the expense ratios would have been
2.61% and 2.91% and the ratio of net investment income to average net
assets would have been 0.36% and 1.21% for the year ended October 31, 1993
and for the period from May 18, 1992 (commencement of operations) to
October 31, 1992, respectively.
** Includes reimbursement by G.T. Capital Management, Inc. of Fund Class B
shares operating expenses of $0.02. Without such reimbursement, the expense
ratio would have been 3.63% and the ratio of net investment income to
average net assets would have been (0.76)%.
(a) Not annualized.
(b) Annualized.
(c) Total investment return does not include sales charges.
</TABLE>
Prospectus Page 10
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
G.T. LATIN AMERICA GROWTH FUND
<TABLE>
<CAPTION>
CLASS A++
CLASS B+ ------------------------------------------------
----------------------------------------- AUGUST 13, 1991
APRIL 1, 1993 YEAR ENDED OCTOBER 31, (COMMENCEMENT
YEAR ENDED TO --------------------------- OF OPERATIONS)
OCTOBER 31, 1994(A) OCTOBER 31, 1993(A) 1994(A) 1993(A) 1992 TO OCTOBER 31, 1991
------------------- ------------------- -------- -------- ------- -------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
year.............................. $19.75 $16.26 $19.78 $15.59 $16.45 $14.29
---------- -------- -------- -------- ------- ----------
Income from investment operations:
Net investment income (loss)........ (0.22) (0.07) (0.08) 0.18* 0.25* 0.01*
Net realized and unrealized gain
(loss) on investments............. 6.74 3.56 6.75 5.21 (0.98) 2.15
---------- -------- -------- -------- ------- ----------
Net increase (decrease) from
investment operations............. 6.52 3.49 6.67 5.39 (0.73) 2.16
---------- -------- -------- -------- ------- ----------
Distributions:
Net investment income............. (0.18) (0.00) (0.19) (0.12) (0.13) (0.00)
Net realized gain on
investments...................... (0.15) (0.00) (0.15) (1.08) (0.00) (0.00)
---------- -------- -------- -------- ------- ----------
Total distributions............. (0.33) (0.00) (0.34) (1.20) (0.13) (0.00)
---------- -------- -------- -------- ------- ----------
Net asset value, end of year........ $25.94 $19.75 $26.11 $19.78 $15.59 $16.45
---------- -------- -------- -------- ------- ----------
---------- -------- -------- -------- ------- ----------
Total investment return (d)......... 33.33% 21.5%(a) 34.10% 37.1% (4.5)% 15.1%(a)
---------- -------- -------- -------- ------- ----------
---------- -------- -------- -------- ------- ----------
Ratios and supplemental data:
Net assets, end of year (in
000's)............................ $211,673 $13,576 $336,960 $129,280 $94,085 $125,038
Ratio of net investment income
(loss) to average net assets...... (0.79)% (0.7)%(c) (0.29)% 1.3%* 1.3%* 1.2%*(b)
Ratio of expenses to average net
assets before expense
reductions........................ 2.54% 2.04%
Ratio of expenses to average
net assets........................ 2.54% 2.9%(c) 2.04% 2.4%* 2.4%* 2.4%*(b)
Portfolio turnover rate +++......... 155% 112% 155% 112% 159% none
<FN>
- ------------------
+ Commencing April 1, 1993, the Fund began offering Class B shares.
++ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
+++ Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
* Includes reimbursement by G.T. Capital Management, Inc. of Fund Class A
operating expenses of $0.02, $0.04 and $0.01 for the years ended October
31, 1993 and 1992 and for the period from August 13, 1991 to October 31,
1991, respectively. Without such reimbursements, the expense ratios for
Class A would have been 2.49%, 2.62% and 3.42% and the ratios of net
investment income to average net assets would have been 1.25%, 1.07% and
0.l5% for the years ended October 31, 1993 and 1992 and for the period from
August 31, 1991 to October 31, 1991, respectively.
(a) These selected per share data were calculated based upon weighted average
shares outstanding during the period.
(b) Not annualized.
(c) Annualized.
(d) Total investment return does not include sales charges.
</TABLE>
Prospectus Page 11
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
ALTERNATIVE PURCHASE PLAN
- --------------------------------------------------------------------------------
DIFFERENCES BETWEEN THE CLASSES. The primary distinction between the two classes
of each Fund's shares offered through this Prospectus lies in their sales charge
structures and ongoing expenses, as summarized below. Class A and Class B shares
of a Fund represent interests in the same portfolio of investments of that Fund
and have the same rights, except that each class bears the separate expenses of
its Rule 12b-1 distribution plan and has exclusive voting rights with respect to
such plan, and each class has a separate exchange privilege. See "Management"
and "How to Exchange Shares." Each class has distinct advantages and
disadvantages for different investors, and investors should choose the class
that better suits their circumstances and objectives.
Dividends and other distributions paid by each Fund with respect to its Class A
and Class B shares are calculated in the same manner and at the same time. The
per share dividends on Class B shares of a Fund will be lower than the per share
dividends on Class A shares of that Fund as a result of the higher service and
distribution fees applicable with respect to Class B shares.
CLASS A SHARES. Class A shares are sold at net asset value plus an initial sales
charge of up to 4.75% of the public offering price imposed at the time of
purchase. This initial sales charge is reduced or waived for certain purchases.
Purchases of $500,000 or more must be for Class A shares. Class A shares of the
Funds also bear annual service and distribution fees of up to 0.50% of the
average daily net assets of that class.
CLASS B SHARES. Class B shares are sold at net asset value with no initial sales
charge at the time of purchase. Therefore, the entire amount of an investor's
purchase payment is invested in a Fund. Class B shares bear annual service and
distribution fees of up to 1.00% of the average daily net assets of that class,
and investors pay a contingent deferred sales charge of up to 5% of the lesser
of the original purchase price or the net asset value of such shares at the time
of redemption. This deferred sales charge is waived for certain redemptions and
is reduced for shares held more than one year. The higher service and
distribution fees paid by the Class B shares of a Fund will cause that class to
have a higher expense ratio and to pay lower dividends than Class A shares of
the same Fund.
FACTORS TO CONSIDER IN CHOOSING A CLASS OF SHARES. In deciding which class to
purchase, investors should consider the foregoing factors as well as the
following:
INTENDED HOLDING PERIOD. Over time, the cumulative expense of the 1.00% annual
service and distribution fees on the Class B shares of a Fund will approximate
or exceed the expense of the applicable 4.75% maximum initial sales charge plus
the 0.50% service and distribution fees for the Funds on that Fund's Class A
shares. For example, if net asset value remains constant, the Class B shares'
service and distribution fees would be equal to the Class A shares' initial
maximum sales charge and service and distribution fees approximately nine years
after purchase. Thereafter, Class B shares will bear higher expenses. Investors
who expect to maintain their investment in a Fund over the long-term but do not
qualify for a reduced initial sales charge might elect the Class A initial sales
charge alternative because over time the indirect expense to the shareholder of
the accumulated service and distribution fees on the Class B shares will exceed
the initial sales charge paid by the shareholder plus the indirect expense to
the shareholder of the accumulated service and distribution fees of Class A
shares. Class B investors, however, enjoy the benefit of permitting all their
dollars to work from the time the investments are made. Any positive investment
return on this additional invested amount would partially or wholly offset the
higher annual expenses borne by Class B shares. Because the Funds' future
returns cannot be predicted, however, there can be no assurance that such a
positive return will be achieved.
Finally, Class B shareholders pay a contingent deferred sales charge if they
redeem during the first six years after purchase, unless a sales charge waiver
applies. Investors expecting to redeem during this period should consider the
cost of the applicable contingent deferred sales charge in addition to the
annual Class B service and distribution fees, as compared with the cost of the
applicable initial sales charge and annual service and distribution fees
applicable to the Class A shares.
Prospectus Page 12
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
The "Hypothetical Example of Effect of Expenses" under "Prospectus Summary"
shows for each Fund the cumulative expenses an investor would pay over time on a
hypothetical investment in each class of each Fund's shares, assuming an annual
return of 5%.
REDUCED SALES CHARGES. Class A share purchases over $50,000 and Class A share
purchases made under a Fund's reduced sales charge plans may be made at a
reduced initial sales charge. Purchases of $500,000 or more must be for Class A
shares. See "How to Invest" for a complete list of reduced sales charges
applicable to Class A purchases.
WAIVER OF SALES CHARGES. The entire initial sales charge on Class A shares of a
Fund may be waived for certain eligible purchasers and these purchasers' entire
purchase price would be immediately invested in a Fund. The contingent deferred
sales charge may be waived upon redemption of certain Class B shares. Investors
eligible for complete initial sales charge waivers should purchase Class A
shares. See "How to Invest" for a complete list of initial sales charge waivers
applicable to Class A purchases and contingent deferred sales charge waivers
applicable to Class B purchases. A 1% contingent deferred sales charge is
imposed on certain redemptions of Class A shares on which no initial sales
charge was assessed.
Investors should understand that the contingent deferred sales charge on the
Class B shares and the initial sales charge on the Class A shares are both
intended to compensate G.T. Global and selling broker/dealers for their
distribution services. Broker/dealers may receive different levels of
compensation for selling a particular class of Fund shares.
ADVISOR CLASS SHARES. Advisor Class shares may be offered through a separate
prospectus to (a) trustees or other fiduciaries purchasing shares for employee
benefit plans which are sponsored by organizations which have at least 250
employees; (b) any account investing at least $25,000 in one or more G.T. Global
Mutual Funds if (i) a financial planner, trust company, bank trust department or
registered investment adviser has investment discretion over such account, and
(ii) the account holder pays such person as compensation for its advice and
other services an annual fee of at least .50% on the assets in the account; (c)
any account investing at least $25,000 in one or more G.T. Global Mutual Funds
if (i) such account is established under a "wrap fee" program, and (ii) the
account holder pays the sponsor of such program an annual fee of at least .50%
on the assets in the account; (d) accounts advised by one of the companies
comprising or affiliated with the G.T. Group; and (e) any of the companies
comprising or affiliated with the G.T. Group.
See "How to Invest," "How to Redeem Shares" and "Management" for a more complete
description of the initial and contingent deferred sales charges, service fees
and distribution fees for Class A and Class B shares of each Fund and
"Dividends, Other Distributions and Federal Income Taxation" and "Valuation of
Shares" for other differences between these two classes.
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVES
AND POLICIES
- --------------------------------------------------------------------------------
EMERGING MARKETS FUND
The Emerging Markets Fund's investment objective is long-term growth of capital.
Under normal circumstances, the Emerging Markets Fund seeks its objective by
investing at least 65% of its total assets in equity securities of companies in
emerging markets. The Emerging Markets Fund may invest in the following types of
equity securities: common stock, preferred stock, securities convertible into
common stock and rights and warrants to acquire such securities and
substantially similar forms of equity with comparable risk characteristics.
These securities may be listed on securities exchanges, traded in various
over-the-counter ("OTC") markets, or have no organized market.
For purposes of the Emerging Markets Fund's operations, "emerging markets" will
consist of all countries determined by G.T. Capital to have developing or
emerging economies and markets. These countries generally include every country
in the world except the United States, Canada, Japan, Australia, New Zealand and
most countries located
Prospectus Page 13
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
in Western Europe. See "Investment Objective and Policies" in the Statement of
Additional Information for a complete list of all the countries which the
Emerging Markets Fund does not consider to be emerging markets.
The Emerging Markets Fund will focus its investments in those emerging markets
which G.T. Capital believes have strongly developing economies and in which the
markets are becoming more sophisticated. For purposes of the Emerging Markets
Fund's policy of normally investing at least 65% of its total assets in equity
securities of issuers in emerging markets, the Emerging Markets Fund will
consider investment in the following emerging markets:
<TABLE>
<S> <C>
Argentina Malaysia
Bolivia Mauritius
Botswana Mexico
Brazil Morocco
Chile Nigeria
China Pakistan
Colombia Peru
Cyprus Philippines
Czech Republic Poland
Ecuador Portugal
Egypt Singapore
Ghana Slovakia
Greece Slovak Republic
Hong Kong South Korea
Hungary Sri Lanka
India Swaziland
Indonesia Taiwan
Israel Thailand
Jamaica Turkey
Jordan Uruguay
Kenya Venezuela
Zimbabwe
</TABLE>
Although the Emerging Markets Fund considers each of the above-listed countries
eligible for investment pursuant to the above described 65% of total assets
investment policy, the Emerging Markets Fund will not be invested in all such
markets at all times. Moreover, investing in some of those markets currently may
not be desirable or feasible, due to the lack of adequate custody arrangements
for the Emerging Markets Fund's assets, overly burdensome repatriation and
similar restrictions, the lack of organized and liquid securities markets,
unacceptable political risks or for other reasons.
As used in this Prospectus, a company in an emerging market is an entity: (i)
for which the principal securities trading market is an emerging market, as
defined above; (ii) that (alone or on a consolidated basis) derives 50% or more
of its total revenue from either goods produced, sales made or services
performed in emerging markets; or (iii) organized under the laws of, and with a
principal office in, an emerging market.
In managing the Emerging Markets Fund, G.T. Capital seeks to identify those
countries and industries where economic and political factors, including
currency movements, are likely to produce above-average growth rates. G.T.
Capital then seeks to invest in those companies in such countries and industries
that are best positioned and managed to take advantage of these economic and
political factors. The assets of the Emerging Markets Fund ordinarily will be
invested in the securities of issuers in at least three different emerging
markets. The Emerging Markets Fund may invest up to 15% of its net assets in
illiquid securities.
Under normal circumstances, the Emerging Markets Fund may invest up to 35% of
its total assets in a combination of (i) debt securities of government or
corporate issuers in emerging markets; (ii) equity and debt securities of
issuers in developed countries, including the United States; (iii) securities of
issuers in emerging markets not included in the list of emerging markets above,
if investing therein becomes feasible and desirable subsequent to the date of
this Prospectus; and (iv) cash and money market instruments. In evaluating
investments in securities of issuers in developed markets, G.T. Capital will
consider, among other things, the business activities of the issuer in emerging
markets and the impact that developments in emerging markets are likely to have
on the issuer.
INVESTMENTS IN DEBT SECURITIES. Capital appreciation in debt securities in which
the Emerging Markets Fund invests may arise as a result of favorable changes in
relative foreign exchange rates, in relative interest rate levels and/or in the
creditworthiness of issuers. The receipt of income from debt securities owned by
the Emerging Markets Fund is incidental to the Emerging Markets Fund's objective
of long-term growth of capital.
The Emerging Markets Fund may invest in debt securities of both governmental and
corporate issuers in emerging markets. Emerging market debt securities often are
rated below investment grade. "Investment grade" debt securities are those rated
within the four highest ratings categories of S&P or Moody's or, if unrated,
determined by G.T. Capital to be of comparable quality. Securities rated BBB by
S&P and Baa by Moody's are investment grade debt securities but are considered
to
Prospectus Page 14
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
have speculative characteristics. Many emerging market debt securities are not
rated by U.S. ratings agencies. The Emerging Markets Fund may also use
instruments (including forward contracts) often referred to as "derivatives."
See "Options, Futures and Forward Currency Transactions."
The Emerging Markets Fund will not invest more than 20% of its total assets in
debt securities rated below investment grade. Investment in non-investment grade
debt securities involves a high degree of risk and can be speculative. These
debt securities are the equivalent of high yield, high risk bonds, commonly
known as "junk bonds." See "Risk Factors" for a more complete discussion.
If the rating of any of the Emerging Markets Fund's investments drops below a
minimum rating considered acceptable by G.T. Capital for investment by the
Emerging Markets Fund, the Fund will dispose of any such security as soon as
practicable and consistent with the best interests of the Emerging Markets Fund
and its shareholders.
INVESTMENT IN OTHER INVESTMENT COMPANIES OR VEHICLES. Certain emerging markets
are closed in whole or in part to equity investments by foreigners. The Emerging
Markets Fund may be able to invest in such markets solely or primarily through
governmentally authorized investment vehicles or companies. Pursuant to the 1940
Act, The Emerging Markets Fund generally may invest up to 10% of its total
assets in the aggregate in shares of other investment companies and up to 5% of
its total assets in any one investment company, as long as each investment does
not represent more than 3% of the outstanding voting stock of the acquired
investment company at the time of investment.
Investment in other investment companies may involve the payment of substantial
premiums above the value of such investment companies' portfolio securities, and
is subject to limitations under the 1940 Act and market availability. The
Emerging Markets Fund does not intend to invest in such investment companies
unless, in the judgment of G.T. Capital, the potential benefits of such
investment justify the payment of any applicable premium or sales charge. As a
shareholder in an investment company, the Emerging Markets Fund would bear its
ratable share of that investment company's expenses, including its advisory and
administration fees. At the same time the Emerging Markets Fund would continue
to pay its own management fees and other expenses.
TEMPORARY DEFENSIVE STRATEGIES. The Emerging Markets Fund has the flexibility to
respond promptly to changes in market and economic conditions. In the interest
of preserving shareholders' capital, G.T. Capital may employ a temporary
defensive investment strategy if it determines such a strategy to be warranted
due to market conditions. Pursuant to such a defensive strategy, the Emerging
Markets Fund temporarily may hold cash (U.S. dollars, foreign currencies,
multinational currency units) and/or invest up to 100% of its assets in high
quality debt securities or money market instruments of U.S. or foreign issuers,
and most or all of the Emerging Markets Fund's investments may be made in the
United States and denominated in U.S. dollars. To the extent the Emerging
Markets Fund adopts a temporary defensive posture, it will not be invested so as
to achieve directly its investment objective.
In addition, pending investment of proceeds from new sales of Emerging Markets
Fund shares or to meet ordinary daily cash needs, the Emerging Markets Fund
temporarily may hold cash (U.S. dollars, foreign currencies or multinational
currency units) and may invest any portion of its assets in money market
instruments.
The Emerging Markets Fund may invest in the following types of money market
instruments (i.e., debt instruments with less than 12 months remaining until
maturity) denominated in U.S. dollars or other currencies: (a) obligations
issued or guaranteed by the U.S. or foreign governments, their agencies,
instrumentalities or municipalities; (b) obligations of international
organizations designed or supported by multiple foreign governmental entities to
promote economic reconstruction or development; (c) finance company obligations,
corporate commercial paper and other short-term commercial obligations; (d) bank
obligations (including certificates of deposit, time deposits, demand deposits
and bankers' acceptances), subject to the restriction that the Fund may not
invest more than 25% of its total assets in bank securities; (e) repurchase
agreements with respect to the foregoing; and (f) other substantially similar
short-term debt securities with comparable characteristics.
The Emerging Markets Fund may invest in commercial paper rated as low as A-3 by
S&P or P-3 by Moody's or, if unrated, determined by G.T. Capital to be of
comparable quality. Obligations rated A-3 and P-3 are considered by S&P and
Moody's, respectively, to have an acceptable capacity for timely
Prospectus Page 15
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
repayment. However, these securities may be more vulnerable to adverse effects
of changes in circumstances than obligations carrying higher designations.
BORROWING. It is a fundamental policy of the Emerging Markets Fund that it may
borrow an amount up to 33 1/3% of its total assets in order to meet redemption
requests. Borrowing may cause greater fluctuation in the value of Emerging
Markets Fund shares than would be the case if the Emerging Markets Fund did not
borrow, but also may enable the Emerging Markets Fund to retain favorable
securities positions rather than liquidating such positions to meet redemptions.
The Emerging Markets Fund will not borrow to leverage its portfolio. It is a
nonfundamental policy of the Emerging Markets Fund that it will not purchase
securities during times when outstanding borrowings represent 5% or more of its
total assets.
SECURITIES LENDING. The Emerging Markets Fund is authorized to make loans of its
portfolio securities to broker/dealers or to other institutional investors. At
all times a loan is outstanding, the Emerging Markets Fund requires the borrower
to maintain with the Emerging Markets Fund's custodian collateral consisting of
cash, U.S. government securities or other liquid, high grade debt securities at
least equal to the value of the borrowed securities, plus any accrued interest.
The Emerging Markets Fund will receive any interest paid on the loaned
securities and a fee and/or a portion of the interest earned on the collateral.
The Emerging Markets Fund will limit its loans of portfolio securities to an
aggregate of 30% of the value of its total assets, measured at the time any such
loan is made. The risks in lending portfolio securities, as with other
extensions of secured credit, consist of possible delay in receiving additional
collateral or in recovery of the loaned securities or possible loss of rights in
the collateral should the borrower fail financially.
LATIN AMERICA GROWTH FUND
The Latin America Growth Fund's investment objective is capital appreciation.
The Latin America Growth Fund normally invests at least 65% of its total assets
in a broad range of securities of Latin American issuers. Though the Latin
America Growth Fund may invest throughout Latin America, under current market
conditions the Latin America Growth Fund expects to invest primarily in equity
and debt securities issued by companies and governments in Mexico, Chile, Brazil
and Argentina.
Consistent with its investment objective and policies, the Latin America Growth
Fund may invest in common stock, preferred stock, rights, warrants and
securities convertible into common stock, and other substantially similar forms
of equity with comparable risk characteristics, as well as bonds, notes,
debentures or other forms of indebtedness that may be developed in the future.
These securities may be listed on securities exchanges, traded in various OTC
markets or have no organized market.
The Latin America Growth Fund will purchase equity and debt securities in
seeking its objective of capital appreciation. Capital appreciation in debt
securities may arise as a result of a favorable change in relative foreign
exchange rates, in relative interest rate levels, or in the credit-worthiness of
issuers. The receipt of income from such debt securities is incidental to the
Latin America Growth Fund's objective of capital appreciation.
The Latin America Growth Fund defines securities of Latin American issuers as
the following: (a) securities of companies organized under the laws of, or with
a principal office located in a Latin American country or for which the
principal trading market is in Latin America; (b) securities issued or
guaranteed by the government of a country in Latin America, its agencies or
instrumentalities, or municipalities, or the central bank of such country; (c)
dollar-denominated securities or securities denominated in a Latin American
currency issued by companies to finance operations in Latin America; (d)
securities of companies that derive at least 50% of their revenues from either
goods or services produced in Latin America or sales made in Latin America; and
(e) securities of Latin American issuers, as defined herein, in the form of
depositary shares. For purposes of the foregoing definition, the Latin America
Growth Fund's purchases of securities issued by companies outside of Latin
America to finance their Latin American operations will be limited to securities
the performance of which is materially related to such company's Latin American
activities. For purposes of this Prospectus, unless otherwise indicated, the
Latin America Growth Fund defines Latin America to consist of the following
countries: Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Chile,
Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, French Guiana,
Guatemala, Guyana, Haiti, Honduras, Jamaica,
Prospectus Page 16
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G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
Mexico, the Netherlands Antilles, Nicaragua, Panama, Paraguay, Peru, Suriname,
Trinidad and Tobago, Uruguay and Venezuela.
ALLOCATION OF THE LATIN AMERICA GROWTH FUND'S INVESTMENTS. The extent of the
Latin America Growth Fund's holdings in any Latin American country will vary
from time to time, based upon G.T. Capital's judgment as to where the greatest
investment opportunities then lie. In allocating investments among the various
Latin American markets, G.T. Capital looks principally at the stage of
industrialization, potential for productivity gains through economic
deregulation, the impact of financial liberalization and monetary conditions and
the political outlook in each country. The Latin America Growth Fund intends to
focus its investments in securities in Mexico, Chile, Brazil and Argentina,
which currently have the most developed capital markets in Latin America. The
Latin America Growth Fund may invest more than 25% of its total assets in any of
these four countries but does not expect to invest more than 50% of its total
assets in any one country.
The portion of the Latin America Growth Fund's total assets invested directly in
Chile may be less than the portions invested in other Latin American countries,
particularly Mexico, because, at present, with limited exceptions, capital
invested directly in Chile normally cannot be repatriated for at least one year.
In addition, repatriation restrictions apply to investments made under the debt
conversion programs in some countries.
Normally, the Latin America Growth Fund will invest a majority of its assets in
equity securities. The percentage distribution between equity and debt will vary
from country to country. The following factors, among others, will influence the
proportion of the Latin America Growth Fund's assets to be invested in equity
versus debt: level and anticipated direction of interest rates; expected rates
of economic growth and corporate profits growth; changes in Latin American
government policy including regulation governing industry, trade, financial
markets, foreign and domestic investment; substance and likely development of
government finances; and the condition of the balance of payments and changes in
the terms of trade.
Under normal circumstances, the Latin America Growth Fund may invest up to 35%
of its total assets in a combination of equity and debt securities of U.S.
issuers. In evaluating investments in securities of U.S. issuers, G.T. Capital
will consider, among other things, the issuer's Latin American business
activities and the impact that development in Latin America may have on the
issuer's operations and financial condition.
Certain sectors of the economies of certain Latin American countries are closed
to equity investments by foreigners. Further, due to the absence of securities
markets and publicly owned corporations and due to restrictions on direct
investment by foreign entities in certain Latin American countries, the Latin
America Growth Fund may be able to invest in such countries solely or primarily
through governmentally approved investment vehicles or companies. For example,
due to Chile's current investment restrictions, the Latin America Growth Fund
intends initially to limit most of its Chilean investments to indirect
investments through American Depositary Receipts ("ADRs") and established
Chilean investment companies, the shares of which are not subject to
repatriation restrictions. Accordingly, as a result of the current limitations
on investment by the Latin America Growth Fund in securities of other investment
companies described below, the Fund's investment in Chile would not likely
exceed 15% of its total assets.
INVESTMENTS IN DEBT SECURITIES. Under normal circumstances, the Latin America
Growth Fund may invest up to 50% of its total assets in debt securities. There
is no limitation on the percentage of the Latin America Growth Fund's assets
which may be invested in debt securities which are rated BB or lower by S&P or
Ba or lower by Moody's or, if unrated, are deemed by G.T. Capital to be of
comparable quality. These debt securities are the equivalent of high yield, high
risk bonds, commonly known as "junk bonds." Most debt securities in which the
Latin America Growth Fund will invest are not rated; if rated, it is expected
that such ratings would be below investment grade. However, the Latin America
Growth Fund will not invest in debt securities that are in default in payment as
to principal or interest. See "Risk Factors -- Risks Associated with Debt
Securities." The Latin America Growth Fund may also use instruments (including
forward contracts) often referred to as "derivatives." See "Options, Futures and
Forward Currency Transactions."
Prospectus Page 17
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
During 1990, the Mexican external debt markets experienced significant changes
with the completion of the "Brady Plan" restructurings in those markets. The
restructurings provided for the exchange of loans and cash for newly issued
bonds ("Brady Bonds"). Brady Bonds fall into two categories: collateralized
Brady Bonds and bearer Brady Bonds. Both types of Brady Bonds are issued in
various currencies, primarily the U.S. dollar. Brady Bonds are actively traded
in the OTC secondary market for Latin American debt. U.S. dollar-denominated
collateralized bonds, which may be fixed par bonds or floating rate discount
bonds, are collateralized in full as to principal by U.S. Treasury Zero Coupon
bonds having the same maturity. At least one year of rolling interest payments
are collateralized by cash or other investments. Brady Bonds have been issued by
Argentina, Brazil, Bulgaria, Costa Rica, Dominican Republic, Jordan, Mexico,
Nigeria, Philippines, Poland, Uruguay, Venezuela and are expected to be issued
by Ecuador and other emerging market countries. Approximately $136 billion in
principal amount of Brady Bonds are outstanding, the largest proportion having
been issued by Brazil and Argentina. Brady Bonds issued by Brazil and Argentina
currently are rated below investment grade.
INVESTMENT IN OTHER INVESTMENT COMPANIES
OR VEHICLES. Under the 1940 Act, the Latin America Growth Fund generally may
invest up to 10% of its total assets in shares of other investment companies and
up to 5% of its total assets in any one investment company, or acquire up to 3%
of the voting stock of any one investment company. Investment in other
investment companies or vehicles may be the most practical or only manner in
which the Latin America Growth Fund can participate in certain Latin American
securities markets. Such investment may involve the payment of substantial
premiums above the value of such issuers' portfolio securities, and is subject
to limitations under the 1940 Act and market availability. There can be no
assurance that vehicles for investing in certain Latin American countries will
be available for investment, particularly in the early stages of the Latin
America Growth Fund's operations. The Latin America Growth Fund does not intend
to invest in such vehicles or funds unless, in the judgment of G.T. Capital, the
potential benefits of such investment justify the payment of any applicable
premium or sales charge. As a shareholder in an investment company, the Latin
America Growth Fund would bear its ratable share of that investment company's
expenses, including its advisory and administration fees. At the same time the
Latin America Growth Fund would continue to pay its own management fees and
other expenses.
TEMPORARY DEFENSIVE STRATEGIES. The Latin America Growth Fund may hold cash
(U.S. dollars, foreign currencies, multinational units) and/or invest up to 100%
of its total assets in money market securities (as defined herein) to generate
income to defray Latin America Growth Fund expenses, for temporary defensive
purposes and pending investment in accordance with the Latin America Growth
Fund's investment objective and policies. In addition, the Latin America Growth
Fund reserves the right to be primarily invested in U.S. securities for
temporary defensive purposes or pending investment of the proceeds of sales of
new shares of the Fund. The Latin America Growth Fund may assume a temporary
defensive position when, due to political, market or other factors broadly
affecting Latin American markets, G.T. Capital determines that opportunities for
capital appreciation in those markets would be significantly limited over an
extended period, or that investing in those markets presents undue risk of loss.
Money market securities are defined as short-term debt securities (less than 12
months to maturity) denominated in U.S. dollars or in the currency of any Latin
American country, which consist of: (a) obligations issued or guaranteed by (i)
the U.S. government or the government of a Latin American country, their
agencies or instrumentalities, or municipalities or (ii) international
organizations designed or supported by multiple foreign governmental entities to
promote economic reconstruction or development ("supranational entities"); (b)
finance company obligations, corporate commercial paper and other short-term
commercial obligations; (c) bank obligations (including certificates of deposit,
time deposits, demand deposits and bankers' acceptances), subject to the
restriction that the Latin America Growth Fund may not invest more than 25% of
its total assets in bank securities; (d) repurchase agreements with respect to
the foregoing; and (e) other substantially similar short-term debt securities
with comparable risk characteristics.
The Latin America Growth Fund may invest in commercial paper rated as low as A-3
by S&P or P-3 by Moody's. Such obligations are considered to have an acceptable
capacity for timely repayment. However, these securities may be more vulnerable
Prospectus Page 18
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
to adverse effects or changes in circumstances than obligations carrying higher
designations.
The banks whose obligations may be purchased by the Latin America Growth Fund
and the banks and broker/dealers with whom the Latin America Growth Fund may
enter into repurchase agreements (as defined below) include any member bank of
the Federal Reserve System, and any broker/ dealer or any foreign bank whose
creditworthiness has been determined by G.T. Capital, in accordance with
guidelines approved by the Company's Board of Directors, to be at least equal to
that of issuers of commercial paper that the Latin America Growth Fund may
purchase, as described above. G.T. Capital will review and monitor the
creditworthiness of such institutions under the Board's general supervision. In
this regard, G.T. Capital will consider, among other factors, the capitalization
of the institution, G.T. Capital's prior dealings with the institution, any
rating of the institution's senior long term debt by independent rating agencies
and other factors G.T. Capital deems appropriate.
ADDITIONAL INVESTMENT POLICIES OF EMERGING MARKETS FUND AND LATIN AMERICA GROWTH
FUND
REPURCHASE AGREEMENTS. Repurchase agreements are transactions in which the
Emerging Markets Fund or the Latin America Growth Fund purchases a security from
a bank or recognized securities dealer and simultaneously commits to resell that
security to the bank or dealer at an agreed-upon price, date and market rate of
interest separate from the coupon rate and maturity of the purchased security.
The Latin America Growth Fund and the Emerging Markets Fund will invest only in
repurchase agreements collateralized at all times in an amount at least equal to
the repurchase price plus accrued interest. To the extent that the proceeds from
any sale of such collateral upon a default in the obligation to repurchase were
less than the repurchase price, the Latin America Growth Fund or the Emerging
Markets Fund would suffer a loss. The Latin America Growth Fund and the Emerging
Markets Fund will enter into repurchase agreements only with banks and broker/
dealers believed by G.T. Capital to present minimal credit risks in accordance
with guidelines approved by the Company's Board of Directors. G.T. Capital will
review and monitor the creditworthiness of such institutions under the Board's
general supervision. See "Investment Objectives and Policies -- Repurchase
Agreements" in the Funds' Statements of Additional Information.
PRIVATIZATIONS. The governments in some emerging markets and Latin American
countries have been engaged in programs of selling part or all of their stakes
in government owned or controlled enterprises ("privatizations"). G.T. Capital
believes that privatizations may offer opportunities for significant capital
appreciation, and intends to invest assets of the Emerging Markets Fund and
Latin America Growth Fund in privatizations in appropriate circumstances. In
certain emerging markets and Latin American countries, the ability of foreign
entities such as the Emerging Markets Fund and Latin America Growth Fund to
participate in privatizations may be limited by local law and/or the terms on
which the Emerging Markets Fund and Latin America Growth Fund may be permitted
to participate may be less advantageous than those afforded local investors.
There can be no assurance that Latin American governments and governments in
emerging markets will continue to sell companies currently owned or controlled
by them or that privatization programs will be successful.
WHEN-ISSUED AND FORWARD COMMITMENT SECURITIES. The Emerging Markets Fund and the
Latin America Growth Fund may purchase debt securities on a "when-issued" basis
and may purchase or sell such securities on a "forward commitment" basis in
order to hedge against anticipated changes in interest rates and prices. The
price, which is generally expressed in yield terms, is fixed at the time the
commitment is made, but delivery and payment for the securities take place at a
later date. When-issued securities and forward commitments may be sold prior to
the settlement date, but the Funds will enter into when-issued and forward
commitments only with the intention of actually receiving or delivering the
securities, as the case may be. No income accrues on securities which have been
purchased pursuant to a forward commitment or on a when-issued basis prior to
delivery to the Emerging Markets Fund or the Latin America Growth Fund. If the
Emerging Markets Fund or the Latin America Growth Fund disposes of the right to
acquire a when-issued security prior to its acquisition or disposes of its right
to deliver or receive against a forward commitment, it may incur a gain or loss.
At the time the Emerging Markets Fund or the Latin America Growth Fund enters
into a transaction on a when-issued or forward commitment basis, a segregated
account consisting of cash or high grade liquid debt securities equal to the
value of the when-issued or forward commitment securities will be established
and maintained
Prospectus Page 19
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
with that Fund's custodian bank and will be marked to market daily. There is a
risk that the securities may not be delivered and that the Funds may incur a
loss. The Emerging Markets and the Latin America Growth Fund also may enter into
reverse repurchase agreements, although (i) the Emerging Markets Fund currently
does not intend to do so and (ii) the Latin America Growth Fund may not enter
into such agreements, with respect to more than 5% of its total assets.
OPTIONS, FUTURES AND FORWARD CURRENCY TRANSACTIONS. In seeking to protect
against the effect of adverse changes in the financial markets in which the
Emerging Markets Fund and the Latin America Growth Fund invests, or against
currency exchange rate or interest rate changes that are adverse to the present
or prospective positions of the Emerging Markets Fund and the Latin America
Growth Fund, both Funds may use forward currency contracts, options on
securities, options on indices, options on currencies, and futures contracts and
options on futures contracts on U.S. and foreign government securities and
currencies. These instruments are often referred to as "derivatives," which may
be defined as financial instruments whose performance is derived, at least in
part, from the performance of another asset (such as a security, currency or an
index of securities). Each Fund may enter into such instruments up to the full
value of its portfolio assets. There can be no assurance that a Fund's risk
management policies will succeed. These techniques are described below and are
further detailed in the Statement of Additional Information.
Only a limited market, if any, currently exists for options and futures
transactions relating to currencies of most emerging markets and most Latin
American markets, to securities denominated in such currencies or to securities
of issuers domiciled or principally engaged in business in such emerging
markets. To the extent that such a market does not exist, G.T. Capital may not
be able to effectively hedge its investment in such Latin American and emerging
markets.
In addition, each Fund may purchase and sell put and call options on securities
to hedge against the risk of fluctuations in the prices of securities held by
the Fund or that G.T. Capital intends to include in the Fund's portfolio. The
Funds also may buy and sell put and call options on indices. Such index options
serve to hedge against overall fluctuations in the securities markets or market
sectors generally, rather than anticipated increases or decreases in the value
of a particular security.
Further, the Funds may sell index futures contracts and may purchase put options
or write call options on such futures contracts to protect against a general
market or market sector decline that could adversely affect the Fund's
portfolio. The Funds may also buy index futures contracts and purchase call
options or write put options on such contracts to hedge against a general market
or market sector advance and thereby attempt to lessen the cost of future
securities acquisitions. A Fund may use interest rate futures contracts and
options thereon to hedge against changes in the general level of interest rates.
The Emerging Markets Fund and the Latin America Growth Fund may write and
purchase put and call options on securities, indices and currencies that are
traded on recognized securities exchanges and on over-the-counter ("OTC")
markets.
These practices may result in the loss of principal under certain conditions. In
addition, certain provisions of the Internal Revenue Code of 1986, as amended
("Code"), have the effect of limiting the extent to which the Emerging Markets
Fund and the Latin America Growth Fund may enter into forward contracts or
futures contracts, or engage in options transactions. See "Taxes" in the
Statement of Additional Information.
To attempt to hedge against adverse movements in exchange rates between
currencies, the Emerging Markets Fund and the Latin America Growth Fund may
enter into forward currency contracts for the purchase or sale of a specified
currency at a specified future date. Such contracts may involve the purchase or
sale of a foreign currency against the U.S. dollar or may involve two foreign
currencies. The Emerging Markets Fund and the Latin America Growth Fund may each
enter into forward currency contracts either with respect to specific
transactions or with respect to its portfolio positions. For example, when the
Emerging Markets Fund or the Latin America Growth Fund anticipates making a
purchase or sale of a security, it may enter into a forward currency contract in
order to set the rate (either relative to the U.S. dollar or another currency)
at which a currency exchange transaction related to the purchase or sale will be
made. Further, when G.T. Capital believes that a particular currency may decline
compared to the U.S. dollar or another currency, the Emerging Markets Fund or
the Latin America Growth Fund
Prospectus Page 20
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
may enter into a forward contract to sell the currency G.T. Capital expects to
decline in an amount up to the value of that Fund's portfolio securities
denominated in a foreign currency. The Emerging Markets Fund and the Latin
America Growth Fund may also purchase put or call options on currencies, futures
contracts on currencies and options on futures contracts on currencies to hedge
against movements in exchange rates.
Although either Fund might not employ any of the foregoing strategies, its use
of forward currency contracts, futures contracts, and options would involve
certain investment risks and transaction costs to which it might not otherwise
be subject. These risks include: (1) dependence on G.T. Capital's ability to
predict movements in the prices of individual securities, fluctuations in the
general securities markets and movements in interest rates and currency markets;
(2) imperfect correlation, or even no correlation, between movements in the
price of forward contracts, options, futures contracts or options thereon and
movements in the price of the currency or security hedged or used for cover; (3)
the fact that skills and techniques needed to trade options, futures contracts
and options thereon or to use forward currency contracts are different from
those needed to select the securities in which the Emerging Markets Fund and the
Latin America Growth Fund invest; (4) lack of assurance that a liquid secondary
market will exist for any particular option, futures contract or option thereon
at any particular time; (5) the possible inability of a Fund to purchase or sell
a portfolio security at a time when it would otherwise be favorable for it to do
so, or the possible need for a Fund to sell a security at a disadvantageous
time, due to the need for the Fund to maintain "cover" or to segregate
securities in connection with hedging transactions; and (6) the possible need of
a Fund to defer closing out of certain options, futures contracts and options
thereon and forward currency contracts in order to qualify or continue to
qualify for the beneficial tax treatment afforded regulated investment companies
under the Code. See "Dividends, Other Distributions and Federal Income Taxation"
herein and "Taxes" in the Statement of Additional Information. If G.T. Capital
incorrectly forecasts securities market movements, currency exchange rates or
interest rates in utilizing a strategy for a Fund, it would be in a better
position if it had not hedged at all. The Emerging Markets Fund and the Latin
America Growth Fund may each also conduct its foreign currency exchange
transactions on a spot (I.E., cash) basis at the spot rate prevailing in the
foreign currency exchange market.
Prospectus Page 21
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
RISK FACTORS
- --------------------------------------------------------------------------------
EMERGING MARKETS FUND. The Emerging Markets Fund's net asset value will
fluctuate, reflecting fluctuations in the market value of its portfolio
positions and its net currency exposure. There is no assurance that the Emerging
Markets Fund will achieve its investment objective.
G.T. Capital believes that the issuers of securities in emerging markets often
have sales and earnings growth rates which exceed those in developed countries
and that such growth rates may in turn be reflected in more rapid share price
appreciation. Accordingly, G.T. Capital believes that the Emerging Markets
Fund's policy of investing in equity securities in emerging markets may enable
the Emerging Markets Fund to achieve results superior to those produced by
mutual funds with similar objectives to those of the Emerging Markets Fund that
invest solely in equity securities of issuers domiciled in the U.S. and/or in
other developed markets.
Nonetheless, investing in the Emerging Markets Fund entails a substantial degree
of risk. Because of the special risks associated with investing in emerging
markets, an investment in the Emerging Markets Fund should be considered
speculative. Investors are strongly advised to consider carefully the special
risks involved in emerging markets, which are in addition to the usual risks of
investing in developed markets around the world.
Investing in emerging markets involves risks relating to potential political and
economic instability within such markets and the risks of expropriation,
nationalization, confiscation of assets and property or the imposition of
restrictions on foreign investment and on repatriation of capital invested. In
the event of such expropriation, nationalization or other confiscation in any
emerging market, the Emerging Markets Fund could lose its entire investment in
that market.
Economies in individual emerging markets may differ favorably or unfavorably
from the U.S. economy in such respects as growth of gross domestic product,
rates of inflation, currency depreciation, capital reinvestment, resource self-
sufficiency and balance of payments positions. Many emerging market countries
have experienced substantial, and in some periods extremely high, rates of
inflation for many years. Inflation and rapid fluctuations in inflation rates
have had and may continue to have very negative effects on the economies and
securities markets of certain countries with emerging markets.
Economies in emerging markets generally are dependent heavily upon international
trade and, accordingly, have been and may continue to be affected adversely by
trade barriers, exchange controls, managed adjustments in relative currency
values and other protectionist measures imposed or negotiated by the countries
with which they trade. These economies also have been and may continue to be
affected adversely by economic conditions in the countries in which they trade.
The securities markets of emerging countries are substantially smaller, less
developed, less liquid and more volatile than the securities markets of the
United States and other more developed countries. Disclosure and regulatory
standards in many respects are less stringent than in the U.S. and other major
markets. There also may be a lower level of monitoring and regulation of
emerging markets and the activities of investors in such markets, and
enforcement of existing regulations has been extremely limited.
The securities of non-U.S. issuers generally are not registered with the SEC,
nor are the issuers thereof usually subject to the SEC's reporting requirements.
Accordingly, there may be less publicly available information about foreign
securities and issuers than is available with respect to U.S. securities and
issuers. Foreign companies generally are not subject to uniform accounting,
auditing and financial reporting standards, practices and requirements
comparable to those applicable to U.S. companies. The Emerging Markets Fund's
net investment income and/or capital gains from its foreign investment
activities may be subject to non-U.S. withholding taxes.
In addition, brokerage commissions, custodial services and other costs relating
to investment in foreign markets generally are more expensive than in the United
States, particularly with respect to emerging markets. Such markets have
different
Prospectus Page 22
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
settlement and clearance procedures. In certain markets there have been times
when settlements have been unable to keep pace with the volume of securities
transactions, making it difficult to conduct such transactions. The inability of
the Emerging Markets Fund to make intended securities purchases due to
settlement problems could cause the Emerging Markets Fund to miss attractive
investment opportunities. Inability to dispose of a portfolio security caused by
settlement problems could result either in losses to the Emerging Markets Fund
due to subsequent declines in value of the portfolio security or, if the
Emerging Markets Fund has entered into a contract to sell the security, could
result in possible liability to the purchaser.
The risk also exists that an emergency situation may arise in one or more
emerging markets as a result of which trading of securities may cease or may be
substantially curtailed and prices for the Emerging Markets Fund's portfolio
securities in such markets may not be readily available. Section 22(e) of the
1940 Act permits a registered investment company, such as the Emerging Markets
Fund, to suspend redemption of its shares for any period during which an
emergency exists, as determined by the SEC. Accordingly, when the Emerging
Markets Fund believes that circumstances dictate, it will promptly apply to the
SEC for a determination that such an emergency exists within the naming of
Section 22(e) of the 1940 Act. During the period commencing from the Emerging
Markets Fund's identification of such conditions until the date of any SEC
action, the Emerging Markets Fund's portfolio securities in the affected markets
will be valued at fair value determined in good faith by or under the direction
of the Company's Board of Directors.
LATIN AMERICA GROWTH FUND. Pursuant to the 1940 Act, the Latin America Growth
Fund's classification as a non-diversified investment company allows it, with
respect to 50% of its assets, to invest more than 5% of its total assets in the
securities of any issuer. Consequently, as the Latin America Growth Fund will be
invested in the securities of a limited number of Latin American issuers, the
performance of any single issuer may have a more significant effect upon the
overall performance of the Latin America Growth Fund than if the Latin America
Growth Fund was a diversified investment company.
The Latin America Growth Fund normally invests at least 65% of its total assets
in the securities of Latin American issuers. Accordingly, an investment in the
Latin America Growth Fund requires consideration of certain factors not
typically associated with investing in most U.S. issuers.
Investing in securities of Latin American issuers may entail risks relating to
the potential political and economic instability of certain Latin American
countries and the risks of expropriation, nationalization, confiscation or the
imposition of restrictions on foreign investment and on repatriation of capital
invested. In the event of such expropriation, nationalization or other
confiscation by any country, the Latin America Growth Fund could lose its entire
investment in any such country.
The securities markets of Latin American countries are substantially smaller,
less developed, less liquid and more volatile than the major securities markets
in the United States. Disclosure and regulatory standards are in many respects
less stringent than U.S. standards. Furthermore, there is a lower level of
monitoring and regulation of the markets and the activities of investors in such
markets, and enforcement of existing regulations has been extremely limited.
The limited size of many Latin American securities markets and limited trading
volume in issuers compared to volume of trading in U.S. securities could cause
prices to be erratic for reasons apart from factors that affect the quality of
the securities. For example, limited market size may cause prices to be unduly
influenced by traders who control large positions. Adverse publicity and
investors' perceptions, whether or not based on fundamental analysis, may
decrease the value and liquidity of portfolio securities, especially in these
markets.
Further, there is a risk that an emergency situation may arise in one or more
Latin American markets as a result of which prices for portfolio securities in
such markets may not be readily available. Accordingly, when the Latin America
Growth Fund believes that circumstances dictate, it will follow the procedures
as described above concerning the Emerging Markets Fund.
The Latin America Growth Fund may not invest more than 10% of its net assets in
illiquid securities. The Latin America Growth Fund will treat any Latin American
securities that are subject to restrictions on repatriation for more than seven
days, as well as any securities issued in connection with Latin American debt
conversion programs that are restricted as to remittance of invested capital or
Prospectus Page 23
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
profits, as illiquid securities for purposes of this limitation. The Latin
America Growth Fund will also treat repurchase agreements with maturities in
excess of seven days as illiquid securities.
The Latin America Growth Fund invests in securities denominated in currencies of
Latin American countries. Accordingly, changes in the value of these currencies
against the U.S. dollar will result in corresponding changes in the U.S. dollar
value of the Latin America Growth Fund's assets denominated in those currencies.
Such changes will also affect the Latin America Growth Fund's income.
In addition, many of the currencies of Latin American countries have experienced
steady devaluations relative to the U.S. dollar, and major devaluations have
historically occurred in certain countries.
Some Latin American countries also may have managed currencies which are not
free floating against the U.S. dollar. In addition, there is a risk that certain
Latin American countries may restrict the free conversion of their currencies
into other currencies. Further, certain Latin American currencies may not be
internationally traded. Certain of these currencies have experienced a steady
devaluation relative to the U.S. dollar. Any devaluations in the currencies in
which the Latin America Growth Fund's portfolio securities are denominated may
have a detrimental impact on the Latin America Growth Fund.
Most Latin American countries have experienced substantial, and in some periods
extremely high, rates of inflation for many years. Inflation and rapid
fluctuations in inflation rates have had and may continue to have very negative
effects on the economies and securities markets of certain Latin American
countries.
The economies of individual Latin American countries may differ favorably or
unfavorably from the U.S. economy in such respects as the rate of growth of
gross domestic product, the rate of inflation, capital reinvestment, resource
self-sufficiency and balance of payments position. Expropriation, confiscatory
taxation, nationalization, political, economic or social instability or other
developments could adversely affect the assets of the Latin America Growth Fund
held in particular Latin American countries. Furthermore, certain Latin American
countries may impose withholding taxes on dividends payable to the Latin America
Growth Fund at a higher rate than those imposed by other foreign countries. This
may reduce the Latin America Growth Fund's investment income available for
distribution to shareholders.
Companies in Latin America are subject to accounting, auditing and financial
standards and requirements that differ, in some cases significantly, from those
applicable to U.S. companies. There is substantially less publicly available
information about Latin American companies and the governments of Latin American
countries than there is about U.S. companies and the U.S. Government.
Certain Latin American countries are among the largest debtors to commercial
banks and foreign governments. Currently, Brazil is the largest debtor among
developing countries, Mexico is the second largest and Argentina the third. At
times certain Latin American countries have declared moratoria on the payment of
principal and/or interest on external debt.
Investment in Sovereign Debt involves a high degree of risk. The issuers or
governmental authorities that control the repayment of Sovereign Debt may not be
able or willing to make principal and/or interest payments when due in
accordance with the terms of such debt. Investors should be aware that the
Sovereign Debt instruments in which the Latin America Growth Fund may invest
involve great risk and are deemed to be the equivalent in terms of quality to
securities rated below investment grade by Moody's and S&P. A substantial
portion of the Sovereign Debt in which the Fund will invest, including Brady
Bonds, is issued as part of debt restructurings and such debt is to be
considered speculative. There is a history of defaults with respect to
commercial bank loans by public and private entities issuing Brady Bonds.
The Latin America Growth Fund and G.T. Capital believe that carefully selected
investments in joint ventures, cooperatives, partnerships and state enterprises
and other similar vehicles which are illiquid (collectively, "Special
Situations") could enable the Latin America Growth Fund to achieve capital
appreciation substantially exceeding the appreciation the Latin America Growth
Fund would realize if it did not make such investments. However, in order to
limit investment risk, the Latin America Growth Fund will invest no more than 5%
of its total assets in Special Situations.
RISKS ASSOCIATED WITH DEBT SECURITIES. The value of the debt securities held by
the Emerging Markets Fund or by the Latin America Growth Fund generally will
vary inversely with market interest rates. If interest rates in a market fall,
the
Prospectus Page 24
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
Funds' debt securities issued by governments or companies in that market
ordinarily will rise. If market interest rates increase, however, the debt
securities owned by the Funds in that market will be likely to decrease in
value.
As discussed above, the Emerging Markets Fund may invest up to 20% of its total
assets in debt securities rated below investment grade and the Latin America
Growth Fund may invest up to 50% of its total assets in debt securities. Such
investments involve a high degree of risk.
Debt rated BB, B, CCC, CC and C and debt rated Ba, B, Caa, Ca, C is regarded by
S&P and Moody's, respectively, on balance, as predominantly speculative with
respect to the issuer's capacity to pay interest and repay principal in
accordance with the terms of the obligation. For S&P, BB indicates the lowest
degree of speculation and C the highest degree of speculation. For Moody's, Ba
indicates the lowest degree of speculation and C the highest degree of
speculation. While such debt will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or major risk
exposures to adverse conditions. Similarly, debt rated Ba or BB and below is
regarded by the relevant rating agency as speculative. Debt rated C by Moody's
or S&P is the lowest rated debt that is not in default as to principal or
interest and such issues so rated can be regarded as having extremely poor
prospects of ever attaining any real investment standing. Such securities are
also generally considered to be subject to greater risk than securities with
higher ratings with regard to a deterioration of general economic conditions.
These foreign debt securities are the equivalent of high yield, high risk bonds,
commonly known as "junk bonds."
Ratings of debt securities represent the rating agency's opinion regarding their
quality and are not a guarantee of quality. Rating agencies attempt to evaluate
the safety of principal and interest payments and do not evaluate the risks of
fluctuations in market value. Also, rating agencies may fail to make timely
changes in credit ratings in response to subsequent events, so that an issuer's
current financial condition may be better or worse than a rating indicates.
The market values of lower quality debt securities tend to reflect individual
developments of the issuer to a greater extent than do higher quality
securities, which react primarily to fluctuations in the general level of
interest rates. In addition, lower quality debt securities tend to be more
sensitive to economic conditions and generally have more volatile prices than
higher quality securities. Issuers of lower quality securities are often highly
leveraged and may not have available to them more traditional methods of
financing. For example, during an economic downturn or a sustained period of
rising interest rates, highly leveraged issuers of lower quality securities may
experience financial stress. During such periods, such issuers may not have
sufficient revenues to meet their interest payment obligations. The issuer's
ability to service its debt obligations may also be adversely affected by
specific developments affecting the issuer, such as the issuer's inability to
meet specific projected business forecasts or the unavailability of additional
financing. Similarly, certain emerging market and Latin American governments
that issue lower quality debt securities are among the largest debtors to
commercial banks, foreign governments and supranational organizations such as
the World Bank and may not be able or willing to make principal and/or interest
repayments as they come due. The risk of loss due to default by the issuer is
significantly greater for the holders of lower quality securities because such
securities are generally unsecured and are often subordinated to other creditors
of the issuer.
Lower quality debt securities frequently have call or buy-back features which
would permit an issuer to call or repurchase the security from the Funds. In
addition, the Funds may have difficulty disposing of lower quality securities
because they may have a thin trading market. There may be no established retail
secondary market for many of these securities, and either Fund anticipates that
such securities could be sold only to a limited number of dealers or
institutional investors. The lack of a liquid secondary market also may have an
adverse impact on market prices of such instruments and may make it more
difficult for the Funds to obtain accurate market quotations for purposes of
valuing the Funds' portfolios. The Funds may also acquire lower quality debt
securities during an initial underwriting or which are sold without registration
under applicable securities laws. Such securities involve special considerations
and risks.
In addition to the foregoing, factors that could have an adverse effect on the
market value of lower quality debt securities in which the Funds may invest
include: (i) potential adverse publicity; (ii) heightened sensitivity to general
economic or political conditions; and (iii) the likely adverse impact of a major
economic recession.
Prospectus Page 25
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
The Funds may also incur additional expenses to the extent either is required to
seek recovery upon a default in the payment of principal or interest on its
portfolio holdings, and the Funds may have limited legal recourse in the event
of a default. Debt securities issued by governments in emerging or Latin
American markets can differ from debt obligations issued by private entities in
that remedies from defaults generally must be pursued in the courts of the
defaulting government, and legal recourse is therefore somewhat diminished.
Political conditions, in terms of a government's willingness to meet the terms
of its debt obligations, also are of considerable significance. There can be no
assurance that the holders of commercial bank debt may not contest payments to
the holders of debt securities issued by governments in emerging or Latin
American markets in the event of default by the governments under commercial
bank loan agreements.
G.T. Capital attempts to minimize the speculative risks associated with
investments in lower quality securities through credit analysis and by carefully
monitoring current trends in interest rates, political developments and other
factors. Nonetheless, investors should carefully review the investment objective
and policies of the Fund and consider their ability to assume the investment
risks involved before making an investment.
CURRENCY RISK. Since the Emerging Markets Fund and the Latin America Growth Fund
may invest substantially in securities denominated in currencies other than the
U.S. dollar, and since the Funds may hold foreign currencies, each Fund will be
affected favorably or unfavorably by exchange control regulations or changes in
the exchange rates between such currencies and the U.S. dollar. Changes in
currency exchange rates will influence the value of each Fund's shares, and also
may affect the value of dividends and interest earned by the Funds and gains and
losses realized by the Funds. Currencies generally are evaluated on the basis of
fundamental economic criteria (e.g., relative inflation and interest rate levels
and trends, growth rate forecasts, balance of payments status and economic
policies) as well as technical and political data. Exchange rates are determined
by the forces of supply and demand in the foreign exchange markets. These forces
are affected by the international balance of payments and other economic and
financial conditions, government intervention, speculation and other factors. If
the currency in which a security is denominated appreciates against the U.S.
dollar, the dollar value of the security will increase. Conversely, a decline in
the exchange rate of the currency would adversely affect the value of the
security expressed in dollars.
OTHER INFORMATION. The Latin America Growth Fund's and Emerging Markets Fund's
annual operating expenses, which are higher than those of many other investment
companies of comparable size, are believed by each Fund's management to be
comparable to expenses of other open-end management investment companies that
invest primarily in the securities of countries in a single geographic region or
regions.
The investment objective of the Latin America Growth Fund and of the Emerging
Markets Fund may not be changed without the approval of a majority of the
respective Fund's outstanding voting securities. As defined in the 1940 Act and
as used in this Prospectus, a "majority of the Fund's outstanding voting
securities" means the lesser of (i) 67% of the shares represented at a meeting
at which more than 50% of the outstanding shares are represented, or (ii) more
than 50% of the outstanding shares. In addition, the Latin America Growth Fund
and the Emerging Markets Fund each have adopted certain investment limitations
as fundamental policies which also may not be changed without shareholder
approval. A complete description of these limitations is included in the
Statement of Additional Information. Unless specifically noted, the Latin
America Growth Fund's and the Emerging Markets Fund's investment policies
described in this Prospectus and in the Statement of Additional Information are
not fundamental policies which may be changed by a vote of a majority of the
Company's Board of Directors without shareholder approval. See "Investment
Limitations" in the Statement of Additional Information.
Prospectus Page 26
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
HOW TO INVEST
- --------------------------------------------------------------------------------
GENERAL. Each Fund is authorized to issue three classes of shares. Class A
shares of the Funds are sold to investors subject to an initial sales charge,
while Class B shares are sold without an initial sales charge but are subject to
higher ongoing expenses and a contingent deferred sales charge payable upon
certain redemptions. The third class of shares of the Funds, the Advisor Class,
may be offered through a separate prospectus only to certain investors.
Investors known to be eligible to purchase Advisor Class shares will be sold
only Advisor Class shares rather than any other class of shares offered by a
Fund. See "Alternative Purchase Plan."
Orders received before the close of regular trading on the New York Stock
Exchange ("NYSE") (currently, 4:00 P.M. Eastern time, unless weather, equipment
failure or other factors contribute to an earlier closing time), on any Business
Day will be executed at the public offering price for the applicable class of
shares determined that day. A "Business Day" is any day Monday through Friday on
which the NYSE is open for business. The minimum initial investment is $500
($100 for IRAs and $25 for custodial accounts under Section 403(b)(7) of the
Code and other tax-qualified employer-sponsored retirement accounts, if made
under a systematic investment plan providing for monthly payments of at least
that amount), and the minimum for additional purchases is $100 (with a $25
minimum for IRAs, Code Section 403(b)(7) custodial accounts and other
tax-qualified employer-sponsored retirement accounts, as mentioned above). All
purchase orders will be executed at the public offering price next determined
after the purchase order is received, which includes any applicable sales charge
for Class A shares. See "How to Invest -- Purchasing Class A Shares." The Funds
and G.T. Global reserve the right to reject any purchase order and to suspend
the offering of shares for a period of time.
WHEN PLACING PURCHASE ORDERS, INVESTORS SHOULD SPECIFY WHETHER THE ORDER IS FOR
CLASS A OR CLASS B SHARES OF A FUND. ALL SHARE PURCHASE ORDERS THAT FAIL TO
SPECIFY A CLASS WILL AUTOMATICALLY BE INVESTED IN CLASS A SHARES. PURCHASES OF
$500,000 OR MORE MUST BE FOR CLASS A SHARES.
PURCHASES THROUGH BROKER/DEALERS. Shares of the Funds may be purchased through
broker/dealers with which G.T. Global has entered into dealer agreements. Orders
received by such broker/dealers before the close of regular trading on the NYSE
on a Business Day will be effected that day, provided that such order is
transmitted to the Transfer Agent prior to its close of business on such day.
The broker/dealer will be responsible for forwarding the investor's order to the
Transfer Agent so that it will be received prior to such time. After an initial
investment is made and a shareholder account is established through a
broker/dealer, at the investor's option, subsequent purchases may be made
directly through G.T. Global. See "Shareholder Account Manual."
Broker/dealers that do not have dealer agreements with G.T. Global also may
offer to place orders for the purchase of shares. Purchases made through such
broker/dealers will be effected at the public offering price next determined
after the order is received by the Transfer Agent. Such a broker/ dealer may
charge the investor a transaction fee as determined by the broker/dealer. That
fee will be in addition to the sales charge payable by the investor with respect
to Class A shares, and may be avoided if shares are purchased through a broker/
dealer that has a dealer agreement with G.T. Global or directly through G.T.
Global.
PURCHASES THROUGH THE DISTRIBUTOR. Investors may purchase shares and open an
account directly through G.T. Global, each Fund's distributor, by completing and
signing the Account Application located at the end of this Prospectus. Investors
should mail to the Transfer Agent the completed Account Application indicating
the class of shares together with a check to cover the purchase in accordance
with the instructions provided in the Shareholder Account Manual. Purchases will
be executed at the public offering price next determined after the Transfer
Agent has received the Account Application and check. Subsequent investments do
not need to be accompanied by such an application.
Investors also may purchase shares of the Funds through G.T. Global by bank
wire. Bank wire purchases will be effected at the next determined public
offering price after the bank wire is received. Accordingly, a bank wire
received by the close of regular trading on the NYSE, on a Business Day, will be
effected that day. A wire investment is considered received when the Transfer
Agent is notified
Prospectus Page 27
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
that the bank wire has been credited to a Fund. The investor is responsible for
providing prior telephonic or facsimile notice to the Transfer Agent that a bank
wire is being sent. An investor's bank may charge a service fee for wiring money
to the Funds. The Transfer Agent currently does not charge a service fee for
facilitating wire purchases, but reserves the right to do so in the future.
Investors desiring to open an account by bank wire should call the Transfer
Agent at the appropriate toll free number provided in the Shareholder Account
Manual to obtain an account number and detailed instructions.
PURCHASING CLASS A SHARES
Each Fund's public offering price per Class A share is equal to the net asset
value per share (see "Calculation of Net Asset Value") including any sales
charge determined in accordance with the following schedule:
<TABLE>
<CAPTION>
SALES CHARGE AS PERCENTAGE OF DEALER
REALLOWANCE AS
AMOUNT OF PURCHASE ------------------------------ PERCENTAGE OF
AT THE PUBLIC OFFERING NET THE OFFERING
OFFERING PRICE PRICE INVESTMENT PRICE
- --------------------- ------------- --------------- -------------------
<S> <C> <C> <C>
Less than $50,000.... 4.75% 4.99% 4.25%
$50,000 but less than
$100,000........... 4.00% 4.17% 3.50%
$100,000 but less
than $250,000...... 3.00% 3.09% 2.75%
$250,000 but less
than $500,000...... 2.00% 2.04% 1.75%
$500,000 or
more............... 0.00% 0.00% *
<FN>
- ------------------
* G.T. Global will pay the following commissions to broker/ dealers that
initiate and are responsible for purchases of any single purchaser of Class
A shares of $500,000 or more in the aggregate: 1.00% of the purchase amount
up to $3 million, plus 0.50% on the excess over $3 million. For purposes of
determining the appropriate brokerage commission to be paid in connection
with the transaction, G.T. Global will combine purchases made by a broker/
dealer on behalf of a single client so that the broker/dealer's commission,
as outlined above, will be based on the aggregate amount of such client's
share purchases over a rolling twelve month period from the date of the
transaction.
</TABLE>
All shares purchased pursuant to a sales charge waiver based on the aggregate
purchase amount's equalling at least $500,000 will be subject to a contingent
deferred sales charge for the first two years after their purchase, as described
under "Contingent Deferred Sales Charge -- Class A Shares," equal to 1% of the
lower of the original purchase price or the net asset value of such shares at
the time of redemption.
From time to time, G.T. Global may reallow to broker/dealers the full amount of
the sales charge on Class A shares. In some instances, G.T. Global may offer
these reallowances only to broker/dealers that have sold or may sell significant
amounts of Class A shares. To the extent that G.T. Global reallows the full
amount of the sales charge to broker/ dealers, such broker/dealers may be deemed
to be underwriters under the Securities Act of 1933. These commissions may be
paid to broker/dealers and other financial institutions that initiate purchases
made pursuant to sales charge waivers (i) and (vii), described below under
"Sales Charge Waivers -- Class A Shares."
The following purchases may be aggregated for purposes of determining the
"Amount of Purchase":
(a) Individual purchases on behalf of a single purchaser, the purchaser's spouse
and their children under the age of 21 years. This includes shares purchased in
connection with an employee benefit plan(s) exclusively for the benefit of such
individual(s), such as an IRA, individual Code Section 403(b) plan or
single-participant Keogh-type plan (that is, a self-employed individual
retirement plan ("Keogh Plan")). This also includes purchases made by a company
controlled by such individual(s).
(b) Individual purchases by a trustee or other fiduciary purchasing shares for a
single trust estate or a single fiduciary account, including an employee benefit
plan (such as employer-sponsored pension, profit-sharing and stock bonus plans,
including plans under Code Section 401(k), and medical, life and disability
insurance trusts) other than a plan described in "(a)" above.
Or
(c) Individual purchases by a trustee or other fiduciary purchasing shares
concurrently for two or more employee benefit plans of a single employer or of
employers affiliated with each other (again excluding an employee benefit plan
described in "(a)" above).
SALES CHARGE WAIVERS -- CLASS A SHARES. Class A shares are sold at net asset
value without imposition of sales charges when investments are made by the
following classes of investors:
(i) Trustees or other fiduciaries purchasing shares for employee benefit plans
which are sponsored by organizations which have at least 100 but less than 250
employees.
(ii) Current or retired Trustees, Directors and officers of the investment
companies for which G.T. Capital serves as investment manager or administrator;
employees or retired employees of the companies comprising the G.T. Group or
affiliated companies of the G.T. Group; the children, siblings and parents of
the persons in the foregoing
Prospectus Page 28
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
categories; and trusts primarily for the benefit of such persons.
(iii) Registered representatives or full-time employees of broker/dealers that
have entered into dealer agreements with G.T. Global, and the children, siblings
and parents of such persons and employees of financial institutions that
directly, or through their affiliates, have entered into dealer agreements with
G.T. Global (or that otherwise have an arrangement with respect to sales of Fund
shares with a broker/dealer that has entered into a dealer agreement with G.T.
Global) and the children, siblings and parents of such employees.
(iv) Companies exchanging shares with or selling assets to one or more of the
G.T. Global Mutual Funds pursuant to a merger, acquisition or exchange offer.
(v) Shareholders of any of the G.T. Global Mutual Funds as of April 30, 1987 who
since that date continually have owned shares of one or more of the G.T. Global
Mutual Funds.
(vi) Purchases made through the automatic investment of dividends and other
distributions paid by any of the other G.T. Global Mutual Funds.
(vii) Registered investment advisers, trust companies and bank trust departments
exercising DISCRETIONARY investment authority with respect to the money to be
invested in the G.T. Global Mutual Funds provided that the aggregate amount
invested pursuant to this sales charge waiver equals at least $500,000, and
further provided that such money is not eligible to be invested in the Advisor
Class.
(viii) Clients of administrators of tax-qualified employee benefit plans which
have entered into agreements with G.T. Global.
(ix) Retirement plan participants who borrow from their retirement accounts by
redeeming G.T. Global Mutual Fund shares and subsequently repay such loans via a
purchase of Fund shares.
(x) Retirement plan participants who receive distributions from a tax-qualified
employer-sponsored retirement plan which is invested in G.T. Global Mutual
Funds, the proceeds of which are reinvested in Fund shares.
(xi) Accounts not eligible for the Advisor Class as to which a financial
institution or broker/dealer charges on account management fee, provided the
financial institution or broker/dealer has entered into an agreement with G.T.
Global regarding such accounts.
REINSTATEMENT PRIVILEGE. Shareholders who redeem their Class A shares in a Fund
have a one-time privilege of reinstating their investment by investing the
proceeds of the redemption at net asset value without a sales charge in Class A
shares of the Fund and/or one or more of the other G.T. Global Mutual Funds. The
Transfer Agent must receive from the investor or the investor's broker/dealer
within 180 days after the date of the redemption both a written request for
reinvestment and a check not exceeding the amount of the redemption proceeds.
The reinstatement purchase will be effected at the net asset value per share
next determined after such receipt. For a discussion of the federal income tax
consequences of a reinstatement, see "Dividends, Other Distributions and Federal
Income Taxation -- Taxes."
REDUCED SALES CHARGE PLANS -- CLASS A SHARES. Class A shares of the Funds may be
purchased at reduced sales charges either through the Right of Accumulation or
under a Letter of Intent. For more details on these plans, investors should
contact their brokers or the Transfer Agent.
RIGHT OF ACCUMULATION. Pursuant to the Right of Accumulation, investors are
permitted to purchase shares of the Funds at the sales charge applicable to the
total of (a) the dollar amount then being purchased plus (b) the amount equal to
the total purchase price of the investor's concurrent purchases of the other
G.T. Global Mutual Funds (other than G.T. Global Dollar Fund) plus (c) the
current public offering price of all shares of G.T. Global Mutual Funds (other
than shares of G.T. Global Dollar Fund not acquired by exchange) already held by
the investor. To receive the Right of Accumulation, at the time of purchase
investors must give their brokers, the Transfer Agent or G.T. Global sufficient
information to permit confirmation of qualification. THE FOREGOING RIGHT OF
ACCUMULATION APPLIES ONLY TO CLASS A SHARES OF THE FUNDS AND OTHER G.T. GLOBAL
MUTUAL FUNDS (OTHER THAN G.T. GLOBAL DOLLAR FUND).
LETTER OF INTENT. In executing a Letter of Intent ("LOI") an investor indicates
an aggregate investment amount he or she intends to invest in Class A shares of
the Funds and the Class A shares of other G.T. Global Mutual Funds (other than
G.T. Global Dollar Fund) in the following thirteen months. The LOI is included
as part of the Account Application located at the end of this Prospectus. The
sales charge applicable to that aggregate amount then becomes the applicable
sales charge on all purchases made concurrently with the execution of the LOI
and in the thirteen months following that execution. If an investor executes an
LOI within 90 days of a prior purchase of G.T. Global Mutual Fund Class A shares
(other than G.T. Global Dollar Fund), the prior purchase may be
Prospectus Page 29
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
included under the LOI and an appropriate adjustment, if any, with respect to
the sales charges paid by the investor in connection with the prior purchase
will be made, based on the then-current net asset value(s) of the pertinent
Fund(s).
If at the end of the thirteen month period covered by the LOI, the total amount
of purchases does not equal the amount indicated, the investor will be required
to pay the difference between the sales charges paid at the reduced rate and the
sales charges applicable to the purchases actually made. Shares having a value
equal to 5% of the amount specified in the LOI will be held in escrow during the
thirteen month period (while remaining registered in the investor's name) and
are subject to redemption to assure any necessary payment to G.T. Global of a
higher applicable sales charge.
Investors should be aware that either Fund may, in the future, suspend the
offering of its shares although not for previously established LOIs. The Latin
America Growth Fund has previously suspended the offering of its shares. If all
ongoing sales of either Fund shares are suspended, however, an LOI executed in
connection with the offering of that Fund's shares may continue to be completed
by the purchase of shares of one or more other G.T. Global Mutual Funds (other
than G.T. Global Dollar Fund).
For purposes of an LOI, any registered investment adviser, trust company or bank
trust department which exercises investment discretion and which intends within
thirteen months to invest $500,000 or more can be treated as a single purchaser,
provided further that such entity places all purchase and redemption orders.
Such entities should be prepared to establish their qualification for such
treatment. THE FOREGOING LETTER OF INTENT WILL APPLY ONLY TO CLASS A SHARES OF
THE FUNDS, AND CLASS A SHARES OF OTHER G.T. GLOBAL MUTUAL FUNDS (OTHER THAN G.T.
GLOBAL DOLLAR FUND). THE VALUE OF CLASS B SHARES OF ANY G.T. GLOBAL MUTUAL FUND
WILL NOT BE COUNTED TOWARD THE FULFILLMENT OF AN LOI.
CONTINGENT DEFERRED SALES CHARGE -- CLASS A SHARES. Purchases of Class A shares
of $500,000 or more may be made without an initial sales charge. Purchases of
Class A shares of two or more G.T. Global Mutual Funds (other than G.T. Global
Dollar Fund) may be combined for this purpose, and the right of accumulation
also applies to such purchases. If a shareholder redeems any Class A shares that
were purchased without a sales charge by reason of a purchase of $500,000 or
more within two years after the date of purchase, a contingent deferred sales
charge of 1% of the lower of the original purchase price or the net asset value
of such shares at the time of redemption will be charged. Class A shares that
are redeemed will not be subject to the contingent deferred sales charge to the
extent that the value of such shares represents (1) reinvestment of dividends or
other distributions or (2) Class A shares redeemed more than two years after
their purchase. Such shares purchased for at least $500,000 without a sales
charge may be exchanged for Class A shares of another G.T. Global Mutual Fund
(other than G.T. Global Dollar Fund) without the imposition of a contingent
deferred sales charge, although the contingent deferred sales charge described
above will apply to the redemption of the shares acquired through an exchange.
The waivers set forth under "Contingent Deferred Sales Charge Waivers" below are
applied to redemptions of Class A shares upon which a contingent deferred sales
charge is imposed. For federal income tax purposes, the amount of the contingent
deferred sales charge will reduce the gain or increase the loss, as the case may
be, on the amount realized on redemption. The amount of any contingent deferred
sales charge will be paid to G.T. Global.
PURCHASING CLASS B SHARES
The public offering price of the Class B shares of each Fund is the next
determined net asset value per share. No initial sales charge is imposed. A
contingent deferred sales charge, however, is imposed on certain redemptions of
Class B shares. Since the Class B shares are sold without an initial sales
charge, the Fund receives the full amount of the investor's purchase payment.
Class B shares of a Fund that are redeemed will not be subject to a contingent
deferred sales charge to the extent that the value of such shares represents:
(1) reinvestment of dividends or capital gain distributions or (2) shares
redeemed more than six years after their purchase. Redemptions of most other
Class B shares will be subject to a contingent deferred sales charge. See
"Contingent Deferred Sales Charge Waivers." The amount of any applicable
contingent deferred sales charge will be calculated by multiplying the lesser of
the original purchase price or the net asset value of such shares at the time of
redemption by the applicable percentage shown in the table below. Accordingly,
no
Prospectus Page 30
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
charge is imposed on increases in net asset value above the original purchase
price:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED SALES
CHARGE AS A PERCENTAGE OF THE
LESSER OF NET ASSET VALUE AT
REDEMPTION
OR THE ORIGINAL
REDEMPTION DURING PURCHASE PRICE
- ------------------------------ -----------------------------
<S> <C>
1st Year Since Purchase....... 5%
2nd Year Since Purchase....... 4%
3rd Year Since Purchase....... 3%
4th Year Since Purchase....... 3%
5th Year Since Purchase....... 2%
6th year Since Purchase....... 1%
Thereafter.................... 0%
</TABLE>
In determining whether a contingent deferred sales charge is applicable to a
redemption, the calculation will be made in a manner that results in the lowest
possible rate. It will be assumed that the redemption is made first of amounts
representing shares acquired pursuant to the reinvestment of dividends and
distributions; then of amounts representing the cost of shares purchased seven
years or more prior to the redemption; and finally, of amounts representing the
cost of shares held for the longest period of time within the applicable
six-year period.
For example, assume an investor purchased 100 shares at $10 per share for a cost
of $1,000. Subsequently, the shareholder acquired 15 additional shares through
dividend reinvestment. During the second year after the purchase, the investor
decided to redeem $500 of his or her investment. Assuming at the time of the
redemption a net asset value of $11 per share, the value of the investor's
shares would be $1,265 (115 shares at $11 per share). The contingent deferred
sales charge would not be applied to the value of the reinvested dividend
shares. Therefore, the 15 shares currently valued at $165.00 would be sold
without a contingent deferred sales charge. The number of shares needed to fund
the remaining $335.00 of the redemption would equal 30.455. Using the lower of
cost or market price to determine the contingent deferred sales charge the
original purchase price of $10.00 per share would be used. The contingent
deferred sales charge calculation would therefore be 30.455 shares times $10.00
per share at a contingent deferred sales charge rate of 4% (the applicable rate
in the second year after purchase) for a total contingent deferred sales charge
of $12.18.
For federal income tax purposes, the amount of the contingent deferred sales
charge will reduce the gain or increase the loss, as the case may be, on the
amount recognized on the redemption of shares. The amount of any contingent
deferred sales charge will be paid to G.T. Global.
CONTINGENT DEFERRED SALES
CHARGE WAIVERS
The contingent deferred sales charge will be waived for exchanges, as described
below, and for redemptions in connection with each Fund's systematic withdrawal
plan not in excess of 12% of the value of the account annually. In addition, the
contingent deferred sales charge will be waived in the following circumstances:
(1) total or partial redemptions made within one year following the death or
disability of a shareholder; (2) minimum required distributions made in
connection with a G.T. Global, IRA, Keogh Plan or custodial account under
Section 403(b) of the Code or other retirement plan following attainment of age
70 1/2; (3) total or partial redemptions resulting from a distribution following
retirement in the case of a tax-qualified employer-sponsored retirement plan;
(4) when a redemption results from a tax-free return of an excess contribution
pursuant to Section 408(d)(4) or (5) of the Code or from the death or disability
of the employee; (5) a one-time reinvestment in Class B shares of the Fund
within 180 days of a prior redemption; (6) redemptions pursuant to the Fund's
right to liquidate a shareholder's account involuntarily; (7) redemptions
pursuant to distributions from a tax-qualified employer-sponsored retirement
plan, which is invested in G.T. Global Mutual Funds, which are permitted to be
made without penalty pursuant to the Code (other than tax-free rollovers or
transfers of asset) and the proceeds of which are reinvested in Fund shares; (8)
redemptions made in connection with participant-directed exchanges between
options in an employer-sponsored benefit plan; (9) redemptions made for the
purpose of providing cash to fund a loan to a participant in a tax-qualified
retirement plan; (10) redemptions made in connection with a distribution from
any retirement plan or account that is permitted in accordance with the
provisions of Section 72(t)(2) of the Code and the regulations promulgated
thereunder; (11) redemptions made in connection with a distribution from any
retirement plan or account that involves the return of an excess deferral amount
pursuant to Section 401(k)(8) or Section 402(g)(2) of the Code of the return of
excess aggregate contributions pursuant to Section 401(m)(6) of the Code; (12)
redemptions made in connection with a distribution (from a qualified
profit-sharing or stock bonus plan described in Section 401(k) of the Code) to a
participant or beneficiary under Section 401(k)(2)(B)(IV) of the Code upon
hardship of the covered employee (determined pursuant to Treasury Regulation
section 1.401(k)-1(d)(2); and (13) redemptions made by or for the benefit of
Prospectus Page 31
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
certain states, counties or cities, or any instrumentalities, departments or
authorities thereof where such entities are prohibited or limited by applicable
law from paying a sales charge or commission.
PROGRAMS APPLICABLE TO CLASS A
AND CLASS B SHARES
AUTOMATIC INVESTMENT PLAN. Investors may purchase either Class A or Class B
shares of the Emerging Markets Fund or Latin America Growth Fund through the
G.T. Global Automatic Investment Plan. Under this Plan, an amount specified by
the shareholder of $100 or more (or $25 for IRAs, Code Section 403(b)(7)
custodial accounts and other tax-qualified employer-sponsored retirement
accounts) on a monthly or quarterly basis will be sent to the Transfer Agent
from the investor's bank for investment in either the Emerging Markets Fund or
Latin America Growth Fund. Investors should be aware that the Emerging Markets
Fund or Latin America Growth Fund may suspend the offering of its shares in the
future, although not the previously established Automatic Investment Plans. If a
suspension of all sales is made, automatic investments will not be accepted
until the offering is recommenced. Participants in the Automatic Investment Plan
should not elect to receive dividends or other distributions from the Funds in
cash. To participate in the Automatic Investment Plan, investors should complete
the appropriate portion of the Supplemental Application provided at the end of
this Prospectus. Investors should contact their broker/dealers or G.T. Global
for more information.
DOLLAR COST AVERAGING PROGRAM. Dollar cost averaging is a systematic,
disciplined investment method through which a shareholder invests the same
dollar amount each month. Accordingly, the investor purchases more shares when a
Fund's net asset value is relatively low and fewer shares when a Fund's net
asset value is relatively high. This can result in a lower average
cost-per-share than if the shareholder followed a less systematic approach. The
G.T. Dollar Cost Averaging Program provides a convenient means for investors to
use this method to purchase either Class A or Class B shares of the G.T. Global
Mutual Funds. Dollar cost averaging does not assure a profit and does not
protect against loss in declining markets. Because such a program involves
continuous investment in securities regardless of fluctuating price levels of
such securities, investors should consider their financial ability to continue
purchases through periods of low price levels.
A participant in the G.T. Dollar Cost Averaging Program first designates the
size of his or her monthly investment in a Fund ("Monthly Investment") after
participation in the Program begins. The Monthly Investment must be at least
$1,000. The investor then will make an initial investment of at least $10,000 in
the G.T. Global Dollar Fund. Thereafter, each month an amount equal to the
specified Monthly Investment automatically will be redeemed from the G.T. Global
Dollar Fund and invested in Fund shares. A sales charge will be applied to each
automatic monthly purchase of Class A Fund shares in an amount determined in
accordance with the Right of Accumulation privilege described above. Investors
should be aware that the Emerging Markets Fund or Latin America Growth Fund may
suspend the offering of its shares in the future, although not for shareholders
who are participants in the Dollar Cost Averaging Program at that time. If a
suspension of all sales is made, the Funds will not accept Monthly Investments.
For more information about the G.T. Dollar Cost Averaging Program, investors
should consult their brokers or G.T. Global.
CERTIFICATES. In the interest of economy and convenience, physical certificates
representing a Fund's shares will not be issued unless an investor submits a
written request to the Transfer Agent, or unless the investor's broker/dealer
requests that the Transfer Agent provide certificates. Shares of a Fund are
recorded on a register by the Transfer Agent, and shareholders who do not elect
to receive certificates have the same rights of ownership as if certificates had
been issued to them. Redemptions and exchanges by shareholders who hold
certificates may take longer to effect than similar transactions involving
non-certificated shares because the physical delivery and processing of properly
executed certificates is required. ACCORDINGLY, THE FUNDS AND G.T. GLOBAL
RECOMMEND THAT SHAREHOLDERS DO NOT REQUEST ISSUANCE OF CERTIFICATES.
Prospectus Page 32
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
HOW TO MAKE EXCHANGES
- --------------------------------------------------------------------------------
Shares of the Funds may be exchanged for shares of any other G.T. Global Mutual
Funds, based on their respective net asset values, without imposition of any
sales charges, provided that the registration remains identical. This exchange
privilege is available only in those jurisdictions where the sale of G.T. Global
Mutual Fund shares to be acquired may be legally made. CLASS A SHARES MAY BE
EXCHANGED ONLY FOR CLASS A SHARES OF OTHER G.T. GLOBAL MUTUAL FUNDS. CLASS B
SHARES MAY BE EXCHANGED ONLY FOR CLASS B SHARES OF OTHER G.T. GLOBAL MUTUAL
FUNDS. The exchange of Class B shares will not be subject to a contingent
deferred sales charge. For purposes of computing the contingent deferred sales
charge, the length of time of ownership of Class B shares will be measured from
the date of original purchase and will not be affected by the exchange.
EXCHANGES ARE NOT TAX-FREE AND MAY RESULT IN A SHAREHOLDER'S REALIZING A GAIN OR
LOSS, AS THE CASE MAY BE, FOR TAX PURPOSES. See "Dividends, Other Distributions
and Federal Income Taxation."
Other than the Funds, the G.T. Global Mutual Funds currently include:
-- G.T. GLOBAL: WORLDWIDE GROWTH FUND
-- G.T. GLOBAL: INTERNATIONAL GROWTH FUND
-- G.T. GLOBAL HEALTH CARE FUND
-- G.T. GLOBAL TELECOMMUNICATIONS FUND
-- G.T. GLOBAL FINANCIAL SERVICES FUND
-- G.T. GLOBAL INFRASTRUCTURE FUND
-- G.T. GLOBAL NATURAL RESOURCES FUND
-- G.T. GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
-- G.T. GLOBAL: NEW PACIFIC GROWTH FUND*
-- G.T. GLOBAL: EUROPE GROWTH FUND
-- G.T. GLOBAL: AMERICA GROWTH FUND
-- G.T. GLOBAL: JAPAN GROWTH FUND
-- G.T. GLOBAL GROWTH & INCOME FUND
-- G.T. GLOBAL GOVERNMENT INCOME FUND
-- G.T. GLOBAL STRATEGIC INCOME FUND
-- G.T. GLOBAL HIGH INCOME FUND
-- G.T. GLOBAL DOLLAR FUND
- --------------
* Formerly, G.T. Pacific Growth Fund
Up to four exchanges each year may be made without charge. A $7.50 service
charge will be imposed on each subsequent exchange. If an investor does not
surrender all of his or her shares in an exchange, the remaining balance in the
investor's account after the exchange must be at least $500. Exchange requests
received in good order by the Transfer Agent before the close of regular trading
on the NYSE on any Business Day will be processed at the net asset value
calculated on that day.
A shareholder interested in making an exchange should write or call his or her
broker or the Transfer Agent to request the prospectus of the other G.T. Global
Mutual Fund(s) being considered. Certain brokers may charge a fee for handling
exchanges.
EXCHANGES BY TELEPHONE. A shareholder may give exchange instructions to the
shareholder's broker/ dealer or to the Transfer Agent by telephone at the
appropriate toll free number provided in the Shareholder Account Manual.
Exchange orders will be accepted by telephone provided that the exchange
involves only uncertificated shares on deposit in the shareholder's account or
for which certificates previously have been deposited.
Shareholders automatically have telephone privileges to authorize exchanges. The
Funds, G.T. Global and the Transfer Agent shall not be liable for any loss or
damage for acting in good faith upon instructions received by telephone and
reasonably believed to be genuine. The Funds employ reasonable procedures to
confirm that instructions communicated by telephone are genuine, including
requiring some form of personal identification prior to acting upon instructions
received by telephone, providing written confirmation of such transactions,
and/or tape recording of telephone instructions. The Funds may be liable for any
losses due to unauthorized or fraudulent instructions if they do not follow
reasonable procedures.
EXCHANGES BY MAIL. Exchange orders should be sent by mail to the investor's
broker or to the Transfer Agent at the address set forth in the Shareholder
Account Manual.
OTHER INFORMATION ABOUT EXCHANGES. Purchases, redemptions and exchanges should
be made for investment purposes only. A pattern of frequent exchanges,
purchases and sales is not acceptable and can be limited by a Fund's or G.T.
Global's refusal to accept further purchase and exchange orders from the
investor or broker. The terms of the exchange offer described above may be
modified at any time, on 60 days' prior written notice to shareholders.
Prospectus Page 33
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
HOW TO REDEEM SHARES
- --------------------------------------------------------------------------------
As described below, shares of the Funds may be redeemed at their net asset value
(subject to any applicable contingent deferred sales charge for Class B shares
or, in limited circumstances, Class A shares) and redemption proceeds will be
sent within seven days of the execution of a redemption request. Shareholders
with broker/dealers that sell shares may redeem shares through such broker/
dealers. If the shares are held in the broker/dealer's "street name," the
redemption must be made through the broker/dealer. Other shareholders may redeem
shares through the Transfer Agent. If a redeeming shareholder owns both Class A
and Class B shares of a Fund, the Class A shares will be redeemed first unless
the shareholder specifically requests otherwise.
REDEMPTIONS THROUGH BROKER/DEALERS. Shareholders with accounts at broker/dealers
that sell shares of the Funds may submit redemption requests to such brokers.
Broker/Dealers may honor a redemption request either by repurchasing shares from
a redeeming shareholder at the shares' net asset value next computed after the
broker/ dealer receives the request or by forwarding such requests to the
Transfer Agent (see "How to Redeem Shares -- Redemptions Through the Transfer
Agent"). Redemption proceeds (less any applicable contingent deferred sales
charge for Class B shares) normally will be paid by check or, if offered by the
broker/dealer, credited to the shareholder's brokerage account at the election
of the shareholder. Broker/Dealers may impose a service charge for handling
redemption transactions placed through them and may have other requirements
concerning redemptions. Accordingly, shareholders should contact their
broker/dealers for more details.
REDEMPTIONS THROUGH THE TRANSFER AGENT. Redemption requests may be transmitted
to the Transfer Agent by telephone or by mail, in accordance with the
instructions provided in the Shareholder Account Manual. All redemptions will be
effected at the net asset value next determined after the Transfer Agent has
received the request and any required supporting documentation (less any
applicable contingent deferred sales charge for Class B shares). Redemption
requests received before the close of regular trading on the NYSE on any
Business Day will be effected at the net asset value calculated on that day.
Redemption requests will not require a signature guarantee if the redemption
proceeds are to be sent either: (i) to the redeeming shareholder at the
shareholder's address of record as maintained by the Transfer Agent, provided
the shareholder's address of record has not been changed within the preceding
thirty days; or (ii) directly to a pre-designated bank, savings and loan or
credit union account ("Pre-Designated Account"). ALL OTHER REDEMPTION REQUESTS
MUST BE ACCOMPANIED BY A SIGNATURE GUARANTEE OF THE REDEEMING SHAREHOLDER'S
SIGNATURE. A signature guarantee can be obtained from any bank, U.S. trust
company, a member firm of a U.S. stock exchange or a foreign branch of any of
the foregoing or other eligible guarantor institution. A notary public is not an
acceptable guarantor. A shareholder uncertain about the Funds' signature
guarantee requirement should contact the Transfer Agent.
Shareholders may qualify to have redemption proceeds sent to a Pre-Designated
Account by completing the appropriate section of the Account Application at the
end of this Prospectus. Shareholders with Pre-Designated Accounts should request
that redemption proceeds be sent either by bank wire or by check. The minimum
redemption amount for a bank wire is $1,000. Shareholders requesting a bank wire
should allow two business days from the time the redemption request is effected
for the proceeds to be deposited in the shareholder's Pre-Designated Account.
See "How to Redeem Shares -- Other Important Redemption Information."
Shareholders may change their Pre-Designated Accounts only by a letter of
instruction to the Transfer Agent containing all account signatures, each of
which must be guaranteed. The Transfer Agent currently does not charge a bank
wire service fee on each wire redemption sent, but reserves the right to do so
in the future.
REDEMPTIONS BY TELEPHONE. Redemption requests may be made by telephone by
calling the Transfer Agent at the appropriate toll free number provided in the
Shareholder Account Manual. Shareholders who hold certificates for shares may
not redeem by telephone. REDEMPTION REQUESTS MAY NOT BE MADE BY TELEPHONE FOR
THIRTY DAYS FOLLOWING ANY CHANGE OF THE SHAREHOLDER'S ADDRESS
Prospectus Page 34
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
OF RECORD. THE TRANSFER AGENT AND THE FUND ARE NOT RESPONSIBLE FOR THE
AUTHENTICITY OF TELEPHONE REDEMPTION REQUESTS.
Shareholders automatically have telephone privileges to authorize redemptions.
The Funds, G.T. Global and the Transfer Agent shall not be liable for any loss
or damage for acting in good faith upon instructions received by telephone and
believed to be genuine. The Funds employ reasonable procedures to confirm that
instructions communicated by telephone are genuine, including requiring some
form of personal identification prior to acting upon instructions received by
telephone, providing written confirmation of such transactions, and/or tape
recording of telephone instructions. The Funds may be liable for any losses due
to unauthorized or fraudulent instructions if they do not follow reasonable
procedures.
REDEMPTIONS BY MAIL. Redemption requests should be mailed directly to the
Transfer Agent at the appropriate address provided in the Shareholder Account
Manual. As discussed above, requests for payment of redemption proceeds to a
party other than the registered account owner(s) and/or requests that redemption
proceeds be mailed to an address other than the shareholder's address of record
require a signature guarantee. In addition, if the shareholder's address of
record has been changed within the preceeding thirty days, a signature guarantee
is required. Redemptions of shares for which certificates have been issued must
be accompanied by properly endorsed share certificates.
SYSTEMATIC WITHDRAWAL PLAN. Shareholders owning shares in the Funds with a value
of $10,000 or more may participate in the G.T. Global Systematic Withdrawal
Plan. A participating shareholder will receive proceeds from monthly, quarterly
or annual redemptions of Fund shares with respect to either Class A or Class B
shares. No contingent deferred sales charge will be imposed on certain
redemptions of Class A shares purchased for at least $500,000 without an initial
sales charge and Class B shares made under the Systematic Withdrawal Plan. The
minimum withdrawal amount is $100. The amount or percentage a participating
shareholder specifies may not, on an annualized basis, exceed 12% of the value
of the account, as of the time the shareholder elects to participate in the
Systematic Withdrawal Plan. To participate in the Systematic Withdrawal Plan,
investors should complete the appropriate portion of the Supplemental
Application provided at the end of this Prospectus. Investors should contact
their brokers or the Transfer Agent for more information. With respect to Class
A shares, participation in the Systematic Withdrawal Plan concurrent with
purchases of Class A shares of the Fund may be disadvantageous to investors
because of the sales charges involved and possible tax implications, and
therefore is discouraged. In addition, shareholders who participate in the
Systematic Withdrawal Plan should not elect to reinvest dividends or other
distributions in additional Fund shares.
OTHER IMPORTANT REDEMPTION INFORMATION. A request for redemption will not be
processed until all of the necessary documentation has been received in good
order. A shareholder with questions concerning what documents are required
should contact his or her broker/dealer or the Transfer Agent.
Except in extraordinary circumstances and as permitted under the 1940 Act,
payment for shares redeemed by telephone or by mail will be made promptly after
receipt of a redemption request, if in good order, but not later than seven days
after the date the request is executed. Requests for redemption which are
subject to any special conditions or which specify a future or past effective
date cannot be accepted.
If the Transfer Agent is requested to redeem shares for which a Fund has not yet
received good payment, the Fund may delay payment of redemption proceeds until
it has assured itself that good payment has been collected for the purchase of
the shares. In the case of purchases by check, it can take up to 10 business
days to confirm that the check has cleared and good payment has been received.
Redemption proceeds will not be delayed when shares have been paid for by wire
or when the investor's account holds a sufficient number of shares for which
funds already have been collected.
Each Fund may redeem the shares of any shareholder whose account is reduced to
less than $500 in net asset value through redemptions or other action by the
shareholder. Notice will be given to the shareholder at least 60 days prior to
the date fixed for such redemption, during which time the shareholder may
increase his or her holdings to an aggregate amount of $500 or more (with a
minimum purchase of $100 or more).
Prospectus Page 35
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
SHAREHOLDER ACCOUNT MANUAL
- --------------------------------------------------------------------------------
Shareholders are encouraged to place purchase, exchange and redemption orders
through their broker/dealers. Shareholders also may place such orders directly
through G.T. Global in accordance with this Manual. See "How to Invest;" "How to
Make Exchanges;" "How to Redeem Shares;" and "Dividends, Other Distributions and
Federal Income Taxation -- Taxes" for more information.
Each Funds' Transfer Agent is G.T. GLOBAL INVESTOR SERVICES, INC.
INVESTMENTS BY MAIL
Send completed Account Application (if initial purchase) or letter stating Fund
name, class of shares, shareholder's registered name and account number (if
subsequent purchase) with a check to:
G.T. Global
P.O. Box 7345
San Francisco, California 94120-7345
INVESTMENTS BY BANK WIRE
An investor opening a new account should call 1-800-223-2138 to obtain an
account number. WITHIN SEVEN DAYS OF PURCHASE SUCH AN INVESTOR MUST SEND A
COMPLETED ACCOUNT APPLICATION CONTAINING THE INVESTOR'S CERTIFIED TAXPAYER
IDENTIFICATION NUMBER TO G.T. GLOBAL AT THE ADDRESS PROVIDED ABOVE UNDER
"INVESTMENTS BY MAIL." Wire instructions must state Fund name, class of shares,
shareholder's registered name and account number. Bank wires should be sent
through the Federal Reserve Bank Wire System to:
WELLS FARGO BANK, N.A.
ABA 121000248
Attn: G.T. GLOBAL
ACCOUNT NO. 4023-050701
(Stating Fund name, class of shares, shareholder's registered name and account
number)
EXCHANGES BY TELEPHONE
Call G.T. Global at 1-800-223-2138
EXCHANGES BY MAIL
Send complete instructions, including name of Fund exchanging from, amount of
exchange, name of the G.T. Global Mutual Fund exchanging into, shareholder's
registered name and account number, to:
G.T. Global
P.O. Box 7893
San Francisco, California 94120-7893
REDEMPTIONS BY TELEPHONE
Call G.T. Global at 1-800-223-2138
REDEMPTIONS BY MAIL
Send complete instructions, including name of Fund, class of shares, amount of
redemption, shareholder's registered name and account number, to:
G.T. Global
P.O. Box 7893
San Francisco, California 94120-7893
OVERNIGHT MAIL
Overnight mail services do not deliver to post office boxes. To send purchase,
exchange or redemption orders by overnight mail, comply with the above
instructions but send to the following:
G.T. Global Investor Services
California Plaza
2121 N. California Boulevard
Suite 450
Walnut Creek, California 94596
ADDITIONAL QUESTIONS
Shareholders with additional questions regarding purchase, exchange and
redemption procedures may call G.T. Global at 1-800-223-2138.
Prospectus Page 36
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
CALCULATION OF NET ASSET VALUE
- --------------------------------------------------------------------------------
Each Fund calculates its net asset value as of the close of regular trading on
the NYSE (currently, 4:00 p.m. Eastern time, unless weather, equipment failure
or other factors contribute to an earlier closing), each Business Day. Each
Fund's asset value per share is computed by determining the value of its total
assets (the securities it holds plus any cash or other assets, including
interest and dividends accrued but not yet received), subtracting all the Fund's
liabilities (including accrued expenses), and dividing the result by the total
number of shares outstanding at such time. Net asset value is determined
separately for each class of shares of each Fund.
Equity securities held by a Fund are valued at the last sale price on the
exchange or in the principal OTC market in which such securities are traded, as
of the close of business on the day the securities are being valued or, lacking
any sales, at the last available bid price. Long-term debt obligations are
valued at the mean of representative quoted bid or asked prices for such
securities, or, if such prices are not available, at prices for securities of
comparable maturity, quality and type; however, when G.T. Capital deems it
appropriate, prices obtained from a bond pricing service will be used. Short-
term debt investments are amortized to maturity based on their cost, adjusted
for foreign exchange translation and market fluctuations, provided that such
valuations represent fair value. When market quotations for futures and options
positions held by a Fund are readily available, those positions will be valued
based upon such quotations.
Securities and other assets for which market quotations are not readily
available are valued at fair value determined in good faith by or under
direction of the Company's Board of Directors. Securities quoted in foreign
currencies will be valued in U.S. dollars based on the prevailing exchange rates
on that day.
Each Fund's portfolio securities, from time to time, may be listed primarily on
foreign exchanges or OTC markets which trade on days when the NYSE is closed
(such as Saturday). As a result, the net asset values of the Funds may be
affected significantly by such trading on days when shareholders cannot purchase
or redeem shares of the Fund.
The different expenses borne by each class of shares will result in different
net asset values and dividends. The per share net asset value of the Class B
shares of a Fund generally will be lower than that of the Class A shares of that
Fund because of the higher expenses borne by the Class B shares. It is expected,
however, that the net asset value per share of Class A and Class B shares of a
Fund will tend to converge immediately after the payment of dividends, which
will differ by approximately the amount of the service and distribution expense
accrual differential between the classes. The per share net asset value and
dividends of the Advisor Class shares of a Fund generally will be higher than
that of the Class A and Class B shares of that Fund because of the absence of
12b-1 service and distribution fees with respect to Advisor Class shares.
- --------------------------------------------------------------------------------
DIVIDENDS, OTHER DISTRIBUTIONS
AND FEDERAL INCOME TAXATION
- --------------------------------------------------------------------------------
DIVIDENDS AND OTHER DISTRIBUTIONS. Each Fund annually declares as a dividend all
its net investment income, if any, which includes dividends, accrued interest
and earned discount (including both original issue and market discounts) less
any applicable expenses. Each Fund also normally distributes for each fiscal
year substantially all of its realized net short-term capital gain (the excess
of short-term capital gains over short-term capital losses), net capital gain
(the excess of net long-term capital gain over net short-term capital loss) and
net gains from foreign currency transactions, if any. Each Fund may make an
additional dividend or other distribution if necessary to avoid a 4% excise tax
on certain undistributed income and gain.
Prospectus Page 37
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
Dividends and other distributions paid by each Fund with respect to all classes
of its shares are calculated in the same manner and at the same time. The per
share income dividends on Class B shares of a Fund will be lower than the per
share income dividends on Class A shares of that Fund as a result of the higher
service and distribution fees applicable to Class B shares; the per share income
dividends on both such classes of shares of a Fund will be lower than the per
share income dividends on the Advisor Class shares of that Fund as a result of
the absence of any service and distribution fees applicable to Advisor Class
shares. SHAREHOLDERS MAY ELECT:
/ / to have all dividends and other distributions automatically reinvested in
additional Fund shares of the distributing class (or in shares of the
corresponding class of other G.T. Global Mutual Funds); or
/ / to receive dividends in cash and have other distributions automatically
reinvested in additional Fund shares of the distributing class (or in shares
of the corresponding class of other G.T. Global Mutual Funds); or
/ / to receive other distributions in cash and have dividends automatically
reinvested in additional Fund shares of the distributing class (or in shares
of the corresponding class of other G.T. Global Mutual Funds); or
/ / to receive dividends and other distributions in cash.
Automatic reinvestments in additional shares are made at net asset value without
imposition of a sales charge. IF NO ELECTION IS MADE BY A SHAREHOLDER, ALL
DIVIDENDS AND OTHER DISTRIBUTIONS WILL BE REINVESTED AUTOMATICALLY IN ADDITIONAL
FUND SHARES OF THE DISTRIBUTING CLASS. Reinvestments in another G.T. Global
Mutual Fund may only be directed to an account with the identical shareholder
registration and account number. These elections may be changed by a shareholder
at any time; to be effective with respect to a distribution, the shareholder or
the shareholder's broker must contact the Transfer Agent by mail or telephone at
least 15 Business Days prior to the payment date. THE FEDERAL INCOME TAX STATUS
OF DIVIDENDS AND OTHER DISTRIBUTIONS IS THE SAME WHETHER THEY ARE RECEIVED IN
CASH OR REINVESTED IN ADDITIONAL SHARES.
Any dividend or other distribution paid by a Fund has the effect of reducing the
net asset value per share on the ex-dividend date by the amount thereof.
Therefore, a dividend or other distribution paid shortly after a purchase of
shares would represent, in substance, a return of capital to the shareholder (to
the extent it is paid on the shares so purchased), even though subject to income
tax, as discussed below.
TAXES. Each Fund intends to continue to qualify for treatment as a regulated
investment company under the Code. In each taxable year that a Fund so
qualifies, the Fund (but not its shareholders) will be relieved of federal
income tax on that part of its investment company taxable income (consisting
generally of net investment income, net gains from certain foreign currency
transactions and net short-term capital gain) and net capital gain that is
distributed to its shareholders.
Dividends from a Fund's investment company taxable income (whether paid in cash
or reinvested in additional shares) are taxable to shareholders as ordinary
income to the extent of the Fund's earnings and profits. Distributions of a
Fund's net capital gain, when designated as such, are taxable to its
shareholders as long-term capital gains, regardless of how long they have held
their Fund shares, and whether paid in cash or reinvested in additional Fund
shares.
Each Fund provides federal tax information to its shareholders annually,
including information about dividends and other distributions paid during the
preceding year and, under certain circumstances, the shareholders' respective
shares of any foreign taxes paid by the Fund, in which event each shareholder
would be required to include in his or her gross income his or her pro rata
share of those taxes but might be entitled to claim a credit or deduction for
them.
Each Fund must withhold 31% from dividends, capital gain distributions and
redemption proceeds payable to any individuals and certain other noncorporate
shareholders who have not furnished to the Fund a correct taxpayer
identification number or a properly completed claim for exemption on Form W-8 or
W-9. Withholding at that rate also is required from dividends and capital gain
distributions payable to such shareholders who otherwise are subject to backup
withholding. Fund accounts opened via a bank wire purchase (see "How to Invest
- -- Purchases Through the Distributor") are considered to have uncertified
taxpayer identification numbers unless a completed Form W-8 or W-9 or Account
Application is received by the Transfer Agent within seven days after the
purchase. A shareholder should contact the Transfer Agent if the shareholder is
uncertain whether a proper taxpayer identification number is on file with a
Fund.
Prospectus Page 38
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
A redemption of Fund shares may result in taxable gain or loss to the redeeming
shareholder, depending upon whether the redemption proceeds are more or less
than the shareholder's adjusted basis for the redeemed shares (which normally
includes any initial sales charge paid on Class A shares). An exchange of Fund
shares for shares of another G.T. Global Mutual Fund generally will have similar
tax consequences. However, special tax rules apply when a shareholder (1)
disposes of Class A shares of a Fund through a redemption or exchange within 90
days after purchase and (2) subsequently acquires Class A shares of such Fund or
any other G.T. Global Mutual Fund on which an initial sales charge normally is
imposed without paying a sales charge due to the reinstatement privilege or
exchange privilege. In these cases, any gain on the disposition of the original
Class A shares will be increased, or loss decreased, by the amount of the sales
charge paid when the shares were acquired, and that amount will increase the
adjusted basis of the shares subsequently acquired. In addition, if Fund shares
are purchased within 30 days before or after redeeming shares of the same Fund
(regardless of class) at a loss, all or a part of the loss will not be
deductible and instead will increase the basis of the newly purchased shares.
The foregoing is only a summary of some of the important federal tax
considerations generally affecting each Fund and its shareholders. See "Taxes"
in the Statement of Additional Information for a further discussion. There may
be other federal, state, local or foreign tax considerations applicable to a
particular investor. Prospective investors therefore are urged to consult their
tax advisers.
- --------------------------------------------------------------------------------
MANAGEMENT
- --------------------------------------------------------------------------------
The Company's Board of Directors has overall responsibility for the operation of
the Funds. Pursuant to such responsibility, the Board has approved contracts
with various financial organizations to provide, among other things, day to day
management services required by the Funds.
INVESTMENT MANAGEMENT AND ADMINISTRATION. Services provided by G.T. Capital as
each Fund's investment manager and administrator include, but are not limited
to, determining the composition of the Fund's portfolio and placing orders to
buy, sell or hold particular securities; furnishing corporate officers and
clerical staff; providing office space, services and equipment; and supervising
all matters relating to the Fund's operation. For these services, each of the
Funds pays G.T. Capital investment management and administration fees, computed
daily and paid monthly, based on its average daily net assets, at the annualized
rate of .975% on the first $500 million, .95% on the next $500 million, .925% on
the next $500 million, and .90% on amounts thereafter. These rates are higher
than those paid by most mutual funds.
G.T. Capital, organized in 1973, provides investment management and/or
administration services to all the G.T. Global Mutual Funds as well as to other
institutional, corporate and individual clients. The offices of G.T. Capital are
located at 50 California Street, 27th Floor, San Francisco, California 94111.
G.T. Capital is the U.S. member of the G.T. Group, an international investment
advisory organization established in 1969 for the purpose of rendering
international portfolio management services to both institutional and individual
clients. Since the G.T. Group was established, it has gained a reputation as a
leader in identifying and investing in emerging and established markets around
the world. As of February 1, 1995, aggregate assets under G.T. Group management
exceeded $22 billion, of which more than $19 billion was invested in the
securities of non-U.S. issuers. Of this amount, more than $6 billion was
invested in emerging markets including the securities of Latin American issuers.
In addition to the San Francisco office, the G.T. Group maintains fully staffed
investment offices in London, Hong Kong, Tokyo, Toronto, Singapore and Sydney.
Many of G.T. Capital's investment managers are natives of the countries in which
they invest, and have the advantage of being close to the financial markets they
follow and speaking the languages of local corporate and government leaders.
G.T. Capital's experienced management
Prospectus Page 39
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
team is situated to react quickly to changes in foreign markets which are in
time zones different from those in the United States.
G.T. Capital and the other companies in the G.T. Group are subsidiaries of BIL
GT Group Limited ("BIL GT Group"), a financial services holding company. BIL GT
Group in turn is controlled by the Prince of Liechtenstein Foundation, which
serves as the parent organization for the various business enterprises of the
Princely Family of Liechtenstein. Its principal business address is Harrengasse
12, FL-9490, Vaduz, Liechtenstein.
In managing the Funds, G.T. Capital employs a team approach, taking advantage of
the resources of its various investment offices around the world in seeking to
achieve the Funds' objectives. In addition, in managing the Funds these
individuals utilize the research and related work of other members of G.T.
Capital's investment staff. The investment professionals primarily responsible
for the portfolio management of the Funds are as follows:
EMERGING MARKETS FUND
<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
- -------------------------------------- -------------------------------------- --------------------------------------
<S> <C> <C>
Jonathan Chew Portfolio Manager since Fund inception Portfolio Manager for G.T. Management
Hong Kong in 1992 Ltd. (Hong Kong); Portfolio Manager
for G.T. Capital since 1992
Simon Nocera Portfolio Manager since Fund inception Portfolio Manager and Economist for
San Francisco in 1992 G.T. Capital since 1992; From 1991 to
1992, Mr. Nocera was Senior Vice
President and Director for Global
Fixed Income at the Putnam Companies.
Prior thereto, he was a Financial
Economist at the International
Monetary Fund
James M. Bogin Security selection for Latin America Portfolio Manager for G.T. Capital
San Francisco since 1993 since 1993; From 1989 to 1993, Mr.
Bogin was a Fund Manager at Nomura
Investment Management Co. (Tokyo)
John R. Legat Security selection for Europe and Portfolio Manager for G.T. Capital and
London Africa since 1995 G.T. Management PLC (London)
</TABLE>
Prospectus Page 40
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
LATIN AMERICA GROWTH FUND
<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
- -------------------------------------- -------------------------------------- --------------------------------------
<S> <C> <C>
Soraya M. Betterton Portfolio Manager since Fund inception Portfolio Manager for G.T. Capital
San Francisco in 1991
Andrew Boczek Assistant Portfolio Manager since 1993 Investment Analyst for G.T. Capital
San Francisco since 1993; From 1991 to 1993, Mr.
Boczek was an Analyst at Continental
Bank Corporation. Prior thereto, he
was a Research Assistant at the
International Monetary Fund
</TABLE>
In placing securities orders for the Funds' portfolio transactions, G.T. Capital
seeks to obtain the best net results. G.T. Capital has no agreement or
commitment to place orders with any broker-dealer. Commissions or discounts in
foreign securities exchanges or OTC markets often are fixed and generally are
higher than those in U.S. securities exchanges or markets. Consistent with its
obligation to obtain the best net results, G.T. Capital may consider a
broker/dealer's sale of shares of the G.T. Global Mutual Funds as a factor in
considering through whom portfolio transactions will be effected. Brokerage
transactions may be executed through any of the BIL GT Group affiliates.
The Emerging Markets Fund and the Latin America Growth Fund's portfolio turnover
rates during the fiscal year ended October 31, 1994 were 100% and 155%,
respectively. However, G.T. Capital does not regard portfolio turnover as a
limiting factor and will buy or sell securities for either Fund as necessary in
response to market conditions to meet the Fund's objective. The portfolio
turnover rate is calculated by dividing the lesser of sales or purchases of
portfolio securities by the Fund's average month-end portfolio value, excluding
short-term investments. For purposes of this calculation, portfolio securities
exclude purchases and sales of debt securities having a maturity at the date of
purchase of one year or less. High portfolio turnover involves correspondingly
greater transaction costs in the form of brokerage commissions or dealer spreads
and other costs that a Fund will bear directly, and may result in the
realization of net capital gains, which are taxable when distributed to
shareholders.
DISTRIBUTION OF FUND SHARES. G.T. Global is the distributor, or principal
underwriter, of each Fund's Class A and Class B shares. Like G.T. Capital, G.T.
Global is a subsidiary of BIL GT Group with offices at 50 California Street,
27th Floor, San Francisco, California 94111. As distributor, G.T. Global
collects the sales charges imposed on purchases of Class A shares and reallows a
portion of such charges to broker/dealers that have sold such shares in
accordance with the schedule set forth above under "How to Invest." In addition,
G.T. Global collects any contingent deferred sales charges that may be imposed
on certain redemptions of Class A and Class B shares.
The Latin America Growth Fund has previously suspended the offering of its
shares upon the advice of G.T. Capital that doing so was in the best interests
of the portfolio management process. As of the date of this Prospectus, the
Latin America Growth Fund has resumed sales of its shares based upon G.T.
Capital's advice that it is consistent with prudent portfolio management to do
so. However, the Latin America Growth Fund reserves the right to suspend sales
again and Emerging Markets Fund reserves the right to suspend sales in the
future based upon the foregoing portfolio considerations.
G.T. Global, at its own expense, may provide additional promotional incentives
to broker/dealers that sell shares of the Funds and/or shares of the other G.T.
Global Mutual Funds. In some instances additional compensation or promotional
incentives may be offered to brokers/dealers that have sold or may sell
significant amounts of shares during specified periods of time. Such
compensation and incentives may include, but are not limited to, cash,
merchandise, trips and financial assistance to broker/dealers in connection with
preapproved conferences or seminars, sales or training programs for invited
sales personnel, payment for travel expenses (including meals and lodging)
incurred by sales personnel and members of their families or other invited
guests to various locations for such
Prospectus Page 41
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
seminars or training programs, seminars for the public, advertising and sales
campaigns regarding one or more of the G.T. Global Mutual Funds, and/ or other
events sponsored by the broker/dealers. In addition, G.T. Global makes ongoing
payments to brokerage firms, financial institutions (including banks) and others
that facilitate the administration and servicing of shareholder accounts.
Under a plan of distribution adopted by the Company's Board of Directors
pursuant to Rule 12b-1 under the 1940 Act, with respect to the Fund's Class A
shares ("Class A Plan"), the Funds may each pay G.T. Global a service fee at the
annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A Shares for its expenditures incurred in servicing and maintaining
shareholder accounts, and may each pay G.T. Global a distribution fee at the
annualized rate of up to 0.50% of the average daily net assets of the Fund's
Class A Shares, less any amounts paid by the Fund as the aforementioned service
fee for its expenditures incurred in providing services as distributor. All
expenses for which G.T. Global is reimbursed under each Class A Plan will have
been incurred within one year of such reimbursement.
Pursuant to a separate plan of distribution adopted by the Company's Board of
Directors with respect to the Fund's Class B shares ("Class B Plan"), each Fund
may pay G.T. Global a service fee at the annualized rate of up to 0.25% of the
average daily net assets of the Fund's Class B Shares for its expenditures
incurred in servicing and maintaining shareholder accounts, and may pay G.T.
Global a distribution fee at the annualized rate of up to 0.75% of the average
daily net assets of the Fund's Class B Shares for its expenditures incurred in
providing services as distributor. Expenses incurred under the Class B Plan in
excess of 1.00% annually may be carried forward for reimbursement in subsequent
years as long as that Plan continues in effect.
G.T. Global's service and distribution expenses under the Plans include the
payment of ongoing commissions; the cost of any additional compensation paid by
G.T. Global to brokers and dealers; the costs of printing and mailing to
prospective investors prospectuses and other materials relating to the Funds;
the costs of developing, printing, distributing and publishing advertisements
and other sales literature; and allocated costs relating to G.T. Global's
service and distribution activities, including, among other things, employee
salaries, bonuses and other overhead expenses. In addition, its expenses under
each Class B Plan include payment of initial sales commissions to broker/dealers
and interest on any unreimbursed amounts carried forward thereunder. G.T. Global
expects that it will continue to incur certain of such service and distribution
expenses, including trail commission payments and other account servicing costs,
during any suspension of the offering of the Funds shares.
The Glass-Steagall Act and other applicable laws, among other things, generally
prohibit federally chartered or supervised banks from engaging in the business
of underwriting or distributing securities. Accordingly, G.T. Global intends to
engage banks (if at all) only to perform administrative and shareholder
servicing functions. Banks and broker/ dealer affiliates of banks also may
execute dealer agreements with G.T. Global for the purpose of selling shares of
the Funds. While the matter is not free from doubt, the Board of Directors
believes that such laws should not preclude a bank from providing administration
or shareholder servicing support or preclude a bank's affiliates from acting as
a broker/dealer. However, judicial or administrative decisions or
interpretations of such laws, as well as changes in either federal or state
statutes or regulations relating to the permissible activities of banks or their
subsidiaries or affiliates, could prevent a bank and its affiliates from
continuing to perform all or part of its servicing or broker/dealer activities.
If a bank were prohibited from so acting, its shareholder clients would be
permitted to remain shareholders, and alternative means for continuing the
servicing of such shareholders would be sought. It is not expected that
shareholders would suffer any adverse financial consequences as a result of any
of these occurrences.
Prospectus Page 42
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
OTHER INFORMATION
- --------------------------------------------------------------------------------
CONFIRMATIONS AND REPORTS TO SHAREHOLDERS. Each time a transaction is made that
affects a shareholder's account in a Fund, such as an additional investment,
redemption or the payment of a dividend or other distribution, the shareholder
will receive from the Transfer Agent a confirmation statement reflecting the
transaction. Confirmations for transactions effected pursuant to a Fund's
Automatic Investment Plan, Systematic Withdrawal Plan and automatic dividend
reinvestment program may be provided quarterly. Shortly after the end of the
Funds' fiscal year on October 31 and fiscal half-year on April 30 of each year,
shareholders will receive an annual and semiannual report, respectively. These
reports list the securities held by the relevant Fund(s) and include the Funds'
financial statements. In addition, the federal income tax status of
distributions made by the relevant Fund(s) to shareholders will be reported
after the end of the fiscal year on Form 1099-DIV.
ORGANIZATION. The Company was organized as a Maryland corporation on October 29,
1987. Until April 28, 1989, the name of the Company was G.T. Global Income
Series, Inc. From time to time, the Company may establish other funds, each
corresponding to a distinct investment portfolio and a distinct series of the
Company's common stock. Shares of the Emerging Markets Fund and the Latin
America Growth Fund are entitled to one vote per share (with proportional voting
for fractional shares) and are freely transferable. Shareholders have no
preemptive or conversion rights.
On any matter submitted to a vote of shareholders, shares of each Fund will be
voted by that Fund's shareholders individually when the matter affects the
specific interest of that Fund only, such as approval of that Fund's investment
management arrangements. In addition, each class of shares of a Fund has
exclusive voting rights with respect to its distribution plan. The shares of all
the Company's Funds will be voted in the aggregate on other matters, such as the
election of Directors and ratification of the Board of Directors' selection of
the Company's independent accountants.
The Company normally will not hold annual meetings of shareholders, except as
required under the 1940 Act. The Company would be required to hold a
shareholders meeting in the event that at any time less than a majority of the
Directors holding office had been elected by shareholders. Directors shall
continue to hold office until their successors are elected and have qualified.
Shares of the Company's Funds do not have cumulative voting rights, which means
that the holders of a majority of the shares voting for the election of
Directors can elect all the Directors. A Director may be removed upon a majority
vote of the shareholders qualified to vote in the election. Shareholders holding
10% of the Company's outstanding voting securities may call a meeting of
shareholders for the purpose of voting upon the question of removal of any
Director or for any other purpose. The 1940 Act requires the Company to assist
shareholders in calling such a meeting.
Pursuant to the Company's Articles of Incorporation, it may issue six billion
shares. Of this number, three hundred million shares have been classified as
shares of each Fund. One hundred million shares have been classified as Class A
shares of each Fund, one hundred million shares as Class B shares of each Fund,
and one hundred million shares have been classified as Advisor Class shares of
each Fund. This amount may be increased from time to time in the discretion of
the Board of Directors. Each share of the Fund represents an interest in that
Fund only, has a par value of $0.0001 per share, represents an equal
proportionate interest in the Fund with other shares of the Fund and is entitled
to such dividends and other distributions out of the income earned and gain
realized on the assets belonging to the Fund as may be declared at the
discretion of the Board of Directors. Each Class A, Class B and Advisor Class
share of the Fund is equal as to earnings, assets and voting privileges, except
as noted above, and each class bears the expenses, if any, related to the
distribution of its shares. Shares of the Fund when issued are fully paid and
nonassessable.
Emerging Markets Fund is classified as a "diversified" fund under the 1940 Act
which means that, with respect to 75% of the Fund's total assets, no more than
5% will be invested in the securities of any one issuer, and the Fund will
purchase no more
Prospectus Page 43
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
than 10% of the outstanding voting securities of any one issuer.
The Latin America Growth Fund is classified as a "non-diversified" fund under
the 1940 Act which means that with respect to 50% of its total assets, no more
than 50% will be invested in the securities of any one issuer, and the Fund will
purchase no more than 10% of the outstanding voting securities of any one
issuer.
Because the Funds employ a Combined Prospectus, it is possible that a Fund might
become liable for a misstatement with respect to the other Fund in this Combined
Prospectus. The Board of Directors of the Company have considered this in
approving the use of a Combined Prospectus.
SHAREHOLDER INQUIRIES. Shareholder inquiries may be made by calling the Funds
toll free at (800) 223-2138 or by writing to the Funds at 50 California Street,
27th Floor, San Francisco, California 94111.
PERFORMANCE INFORMATION. Each Fund, from time to time, may include information
on its investment results and/or comparisons of its investment results to
various unmanaged indices or results of other mutual funds or groups of mutual
funds in advertisements, sales literature or reports furnished to present or
prospective shareholders.
In such materials, a Fund may quote its average annual total return
("Standardized Return"). Standardized Return is calculated separately for each
class of shares of each Fund. Standardized Return shows percentage rates
reflecting the average annual change in the value of an assumed investment in
the Fund at the end of a one-year period and at the end of five- and ten-year
periods, reduced by the maximum applicable sales charge imposed on sales of Fund
shares. If a one-, five- and/or ten-year period has not yet elapsed, data will
be provided as of the end of a shorter period corresponding to the life of the
Fund. Standardized Return assumes the reinvestment of all dividends and other
distributions at net asset value on the reinvestment date established by the
Board of Directors.
In addition, in order to more completely represent a Fund's performance or more
accurately compare such performance to other measures of investment return, a
Fund also may include in advertisements, sales literature and shareholder
reports other total return performance data ("Non-Standardized Return").
Non-Standardized Return reflects percentage rates of return encompassing all
elements of return (i.e., income and capital appreciation or depreciation); it
assumes reinvestment of all dividends and other distributions. Non-Standardized
Return may be quoted for the same or different periods as those for which
Standardized Return is quoted; it may consist of an aggregate or average annual
percentage rate of return, actual year-by-year rates or any combination thereof.
Non-Standardized Return may or may not take sales charges into account;
performance data calculated without taking the effect of sales charges into
account will be higher than data including the effect of such charges.
Each Fund's performance data reflects past performance and is not necessarily
indicative of future results. A Fund's investment results will vary from time to
time depending upon market conditions, the composition of its portfolio and its
operating expenses. These factors and possible differences in calculation
methods should be considered when comparing a Fund's investment results with
those published for other investment companies, other investment vehicles and
unmanaged indices. A Fund's results also should be considered relative to the
risks associated with its investment objective and policies. Each Fund will
include performance data for all classes shares of the Fund in any advertisement
or information including performance data for such Fund. See "Investment
Results" in the Statement of Additional Information.
Each Fund's annual report contains additional information with respect to its
performance. The annual report is available to investors upon request and free
of charge.
TRANSFER AGENT. Shareholder servicing, reporting and general transfer agent
functions for the Funds are performed by G.T. Global Investor Services, Inc. The
Transfer Agent is an affiliate of G.T. Capital and G.T. Global and a subsidiary
of BIL GT Group, and maintains its offices at 50 California Street, 27th Floor,
San Francisco, California 94111.
CUSTODIAN AND ACCOUNTING AGENT. State Street Bank and Trust Company, 225
Franklin Street, Boston, Massachusetts 02110 is custodian of each Fund's assets
and serves as each Fund's accounting agent.
COUNSEL. The law firm of Kirkpatrick & Lockhart, 1800 M Street, N.W.,
Washington, D.C. 20036-5891, acts as counsel to the Company and the Funds.
Kirkpatrick & Lockhart also acts as
Prospectus Page 44
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
counsel to G.T. Capital, G.T. Global and G.T. Global Investor Services, Inc. in
connection with other matters.
INDEPENDENT ACCOUNTANTS. The Company's and each Fund's independent accountants
are Coopers & Lybrand L.L.P., One Post Office Square, Boston, Massachusetts
02109. Coopers & Lybrand L.L.P. will conduct an annual audit of each Fund,
assist in the preparation of each Fund's federal and state income tax returns
and consult with the Company, or Trust, as applicable, and each Fund as to
matters of accounting, regulatory filings, and federal and state income
taxation.
MULTIPLE TRANSLATIONS OF THE PROSPECTUS. This Prospectus may be translated into
other languages. In the event of any inconsistency or ambiguity as to the
meaning of any word or phrase contained in a translation, the English text shall
prevail.
Prospectus Page 45
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 46
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 47
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
Prospectus Page 48
<PAGE>
<TABLE>
<S> <C> <C>
[LOGO]
G.T. GLOBAL
MUTUAL FUNDS
P.O. Box 7345 ACCOUNT APPLICATION
SAN FRANCISCO, CA 94120-7345
800/223-2138
</TABLE>
/ / INDIVIDUAL / / JOINT TENANT / / GIFT/TRANSFER FOR
MINOR / / TRUST / / CORP.
ACCOUNT REGISTRATION
/ / NEW ACCOUNT
/ / ACCOUNT REVISION (Account No.:
---------------------------------------)
NOTE: Trust registrations should specify name of trustee(s), beneficiary(ies)
and date of trust instrument. Registration for Uniform Gifts/Transfers to
Minors accounts should be in the name of one custodian and one minor and
include the state under which the custodianship is created.
<TABLE>
<S> <C> <C> <C>
-----------------------------------------------------------------
Social Security Number / / or Tax I.D. Number / / (Check
applicable box)
-------------------------- If more than one owner, social security number or taxpayer
Owner identification number should be provided for first owner listed.
-------------------------- If a purchase is made under Uniform Gift/ Transfer to Minors Act,
Co-owner 1
-------------------------- social security number of the minor must be provided.
Co-owner 2 Resident of / / U.S. / / Other (specify)
-----------------------------------------
( )
------------------------------------------------------------ ---------------------------
Street Address Home Telephone
( )
------------------------------------------------------------ ---------------------------
City, State, Zip Code Business Telephone
</TABLE>
FUND SELECTION $500 minimum initial investment required for each Fund selected.
Checks should be made payable to "G.T. GLOBAL."
TO PURCHASE THE FUNDS LISTED BELOW PLEASE SELECT EITHER / / Class A Shares or
/ / Class B Shares (Not available for purchases of $500,000 or more or for the
G.T. Global Dollar Fund).
If a class share box is not checked, your investment will be made in Class A
shares.
<TABLE>
<S> <C> <C> <C> <C>
INITIAL INITIAL
INVESTMENT INVESTMENT
07 / / G.T. GLOBAL WORLDWIDE GROWTH FUND $ 03 / / G.T. GLOBAL EUROPE GROWTH FUND $
---------- ----------
05 / / G.T. GLOBAL INTERNATIONAL GROWTH FUND $ 13 / / G.T. LATIN AMERICA GROWTH FUND $
---------- ----------
16 / / G.T. GLOBAL EMERGING MARKETS FUND $ 06 / / G.T. GLOBAL AMERICA GROWTH FUND $
---------- ----------
11 / / G.T. GLOBAL HEALTH CARE FUND $ 04 / / G.T. GLOBAL JAPAN GROWTH FUND $
---------- ----------
15 / / G.T. GLOBAL TELECOMMUNICATIONS FUND $ 10 / / G.T. GLOBAL GROWTH & INCOME FUND $
---------- ----------
19 / / G.T. GLOBAL INFRASTRUCTURE FUND $ 09 / / G.T. GLOBAL GOVERNMENT INCOME FUND $
---------- ----------
17 / / G.T. GLOBAL FINANCIAL SERVICES FUND $ 08 / / G.T. GLOBAL STRATEGIC INCOME FUND $
---------- ----------
21 / / G.T. GLOBAL NATURAL RESOURCES FUND $ 18 / / G.T. GLOBAL HIGH INCOME FUND $
---------- ----------
22 / / G.T. GLOBAL CONSUMER PRODUCTS AND SERVICES FUND $ 01 / / G.T. GLOBAL DOLLAR FUND $
---------- ----------
02 / / G.T. GLOBAL NEW PACIFIC GROWTH FUND $
----------
CHECKWRITING PRIVILEGE
Checkwriting privilege available on Class A shares of G.T. Global Dollar Fund and G.T. Global Government Income Fund.
/ / Check here if desired. You will be sent a book of checks.
CAPITAL GAINS AND DIVIDEND DISTRIBUTIONS TOTAL INITIAL INVESTMENT: $
----------
All capital gains and dividend distributions will be reinvested in additional shares of the same class unless appropriate
boxes below are checked:
/ / Pay capital gain distributions only in cash / / Pay dividends only in cash / / Pay capital gain distributions AND
dividends in cash.
SPECIAL CAPITAL GAINS AND DIVIDEND DISTRIBUTIONS OPTION
Pay distributions noted above to another G.T. Global Fund: Fund Name ------------------
</TABLE>
AGREEMENTS & SIGNATURES
By the execution of this Account Application, I/we represent and warrant that
I/we have full right, power and authority and am/are of legal age in my/our
state of residence to make the investment applied for pursuant to this
Application. The person(s), if any, signing on behalf of the investor
represent and warrant that they are duly authorized to sign this Application
and to purchase, redeem or exchange shares of the Fund(s) on behalf of the
investor. I/WE HEREBY AFFIRM THAT I/WE HAVE RECEIVED A CURRENT PROSPECTUS OF
THE G.T. FUND(S) IN WHICH I/WE AM/ARE INVESTING AND I/WE AGREE TO ITS TERMS
AND CONDITIONS.
I/WE AND MY/OUR ASSIGNS AND SUCCESSORS UNDERSTAND AND AGREE THAT THE ACCOUNT
WILL BE SUBJECT TO THE TELEPHONE EXCHANGE AND TELEPHONE REDEMPTION PRIVILEGES
DESCRIBED IN THE CURRENT PROSPECTUS TO WHICH THIS APPLICATION IS ATTACHED AND
AGREE THAT G.T. GLOBAL FINANCIAL SERVICES, INC., G.T. GLOBAL GROWTH SERIES,
G.T. INVESTMENT FUNDS, INC., G.T. INVESTMENT PORTFOLIOS, INC. AND THE FUNDS'
TRANSFER AGENT, THEIR OFFICERS AND EMPLOYEES, WILL NOT BE LIABLE FOR ANY LOSS
OR DAMAGES ARISING OUT OF ANY SUCH TELEPHONE, TELEX OR TELEGRAPHIC
INSTRUCTIONS REASONABLY BELIEVED TO BE GENUINE, INCLUDING ANY SUCH LOSS OR
DAMAGES DUE TO NEGLIGENCE ON THE PART OF SUCH ENTITIES. THE INVESTOR(S)
CERTIFIES(Y) AND AGREE(S) THAT THE CERTIFICATIONS, AUTHORIZATIONS, DIRECTIONS
AND RESTRICTIONS CONTAINED HEREIN WILL CONTINUE UNTIL G.T. GLOBAL FINANCIAL
SERVICES, INC., G.T. GLOBAL GROWTH SERIES, G.T. INVESTMENT FUNDS, INC., G.T.
INVESTMENT PORTFOLIOS, INC. OR THE FUNDS' TRANSFER AGENT RECEIVES WRITTEN
NOTICE OF ANY CHANGE OR REVOCATION. ANY CHANGE IN THESE INSTRUCTIONS MUST BE
IN WRITING AND IN SOME CASES, AS DESCRIBED IN THE PROSPECTUS, REQUIRES THAT
ALL SIGNATURES BE GUARANTEED.
PLEASE INDICATE THE NUMBER OF SIGNATURES REQUIRED TO PROCESS CHECKS OR
WRITTEN REDEMPTION REQUESTS: / / ONE / / TWO / / THREE / / FOUR.
(If you do not indicate the number of required signatures, ALL account
owners must sign checks and/or written redemption requests.)
Under penalties of perjury, I certify that the Taxpayer Identification
Number provided on this form is my (or my employer's, trust's, minor's or
other payee's) true, correct and complete Number and may be assigned to any
new account opened under the exchange privilege. I further certify that I am
(or the payee whose Number is given is) not subject to backup withholding
because: (a) I am (or the payee is) exempt from backup withholding; (b) the
Internal Revenue Service has not notified me that I am (or the payee is)
subject to backup withholding as a result of a failure to report all interest
or dividends; OR (c) the I.R.S. has notified me that I am (the payee is) no
longer subject to backup withholding;
OR, / / I am (the payee is) subject to backup withholding.
ALL ACCOUNT OWNERS MUST SIGN BELOW (Minors are not authorized signers)
Account revisions may require that signatures be guaranteed. Please see the
Prospectus.
<TABLE>
<S> <C>
-----------------------------------------------------------
Date
X X
---------------------------------------------------------- ----------------------------------------------------------
X X
---------------------------------------------------------- ----------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C>
ACCOUNT PRIVILEGES
TELEPHONE EXCHANGE AND REDEMPTION AUTHORITY TO TRANSMIT REDEMPTION PROCEEDS TO
PRE-DESIGNATED ACCOUNT
I/We, either directly or through the Authorized By completing the following section, redemptions
Agent, if any, named below, hereby authorize the which exceed $1,000
Transfer Agent of the G.T. Global Mutual Funds, may be wired or mailed to a Pre-Designated Account
to honor any telephone, telex or telegraphic at your bank. (Wiring instructions may be obtained
instructions reasonably believed to be authentic from your bank.) A bank wire service fee may be
for redemption and/or exchange between a similar charged.
class of shares of any of the Funds distributed
by G.T. Global Financial Services, Inc. --------------------------------------------------
Name of Bank
SPECIAL PURCHASE AND REDEMPTION PLANS
/ / I have completed and attached the --------------------------------------------------
Supplemental Application for: Bank Address
/ / AUTOMATIC INVESTMENT PLAN
/ / SYSTEMATIC WITHDRAWAL PLAN --------------------------------------------------
OTHER Bank A.B.A Number Account
/ / I/We owned shares of one or more Funds Number
distributed by G.T. Global Financial
Services, Inc. as of April 30, 1987 and --------------------------------------------------
since that date continuously have owned Names(s) in which Bank Account is Established
shares of such Funds. Attached is a schedule A corporation (or partnership) must also submit a
showing the numbers of each of my/our "Corporate Resolution"
Shareholder Accounts. (or "Certificate of Partnership") indicating the
names and titles of Officers authorized to act on
its behalf.
</TABLE>
RIGHT OF ACCUMULATION -- CLASS A SHARES
/ / I/We qualify for the Right of Accumulation sales charge discount
described in the Prospectus and Statement of Additional Information of
the Fund purchased.
/ / I/We own shares of more than one Fund distributed by G.T. Global. Listed
below are the numbers of each of my/our Shareholder Accounts.
/ / The registration of some of my/our shares differs from that shown on this
Application. Below are the account number(s) and registration(s) in each
case.
LIST OF OTHER G.T. FUND ACCOUNTS:
_____________ __________________________________
_____________ __________________________________
_____________ __________________________________
Account Numbers Account Registrations
LETTER OF INTENT -- CLASS A SHARES
/ / I agree to the terms of the Letter of Intent set forth below. Although I
am not obligated to do so, it is my intention to invest over a
thirteen-month period in Class A shares of one or more of the G.T. Global
Mutual Funds in an aggregate amount at least equal to:
/ / $50,000 / / $100,000 / / $250,000 / / $500,000
When a shareholder signs a Letter of Intent in order to qualify for a reduced
sales charge, Class A shares equal to 5% (in no case in excess of 1/2 of 1%
after an aggregate of $500,000 has been purchased under the Letter) of the
dollar amount specified in this Letter will be held in escrow in the
Shareholder's Account out of the initial purchase (or subsequent purchases, if
necessary) by G.T. Global Financial Services, Inc. ("G.T. Global"). All
dividends and other distributions will be credited to the Shareholder's
Account in shares (or paid in cash, if requested). If the intended investment
is not completed within the specified thirteen-month period, the purchaser
will remit to G.T. Global the difference between the sales charge actually
paid and the sales charge which would have been paid if the total of such
purchases had been made at a single time. If this difference is not paid
within twenty days after written request by G.T. Global or the shareholder's
Authorized Agent, the appropriate number of escrowed shares will be redeemed
to pay such difference. If the proceeds from this redemption are inadequate,
the purchaser will be liable to G.T. Global for the balance still outstanding.
The Letter of Intent may be revised upward at any time during the
thirteen-month period, and such a revision will be treated as a new Letter,
except that the thirteen-month period during which the purchase must be made
will remain unchanged. Exchange requests involving escrowed shares must
specifically reference those shares. Exchanges of escrowed shares may be
delayed to allow for the extra processing required.
Any questions relating to this Letter of Intent should be directed to G.T.
Global, 50 California Street, 27th Floor, San Francisco, CA 94111.
FOR USE BY AUTHORIZED AGENT (BROKER/DEALER) ONLY
We hereby submit this Account Application for the purchase of Class A shares
including such shares purchased under a Right of Accumulation or Letter of
Intent or for the purchase of Class B shares in accordance with the terms of
our Dealer Agreement with G.T. Global Financial Services, Inc. and with the
Prospectus and Statement of Additional Information of each Fund purchased. We
agree to notify G.T. Global Financial Services, Inc. of any purchases properly
made under a Letter of Intent or Right of Accumulation.
------------------------------------------------------------------------------
Investment Dealer Name
------------------------------------------------------------------------------
Main Office Address Branch Number Representative's Number Representative's
Name
( )
------------------------------------------------------------------------------
Branch Address Telephone
X
------------------------------------------------------------------------------
Investment Dealer's Authorized Signature Title
<PAGE>
<TABLE>
<S> <C> <C>
[LOGO]
G.T. GLOBAL
MUTUAL FUNDS
P.O. Box 7345 SUPPLEMENTAL APPLICATION
San Francisco, CA SPECIAL INVESTMENT AND
94120-7345 WITHDRAWAL OPTIONS
800/223-2138
</TABLE>
<TABLE>
<S> <C> <C>
ACCOUNT REGISTRATION
Please supply the following information exactly as it appears on the Fund's records.
- --------------------------------------------------------- ---------------------------------------------------------
Fund Name Account Number
- ---------------------------------------------------------- ----------------------------------------------------------
Owner's Name Co-Owner 1
- ---------------------------------------------------------- ----------------------------------------------------------
Co-Owner 2 Telephone Number
- ---------------------------------------------------------- ----------------------------------------------------------
Street Address Social Security or Tax I.D. Number
- ----------------------------------------------------------
City, State, Zip Code
Resident of / / U.S. / / Other
- ---------------------------
AUTOMATIC INVESTMENT PLAN / / YES / / NO
I/We hereby authorize the Transfer Agent of the G.T. Global Mutual Funds to debit my/our personal checking account on
the designated dates in order to purchase / / Class A shares or / / Class B shares of the Fund indicated at the top of
this Supplemental Application at the applicable public offering price determined on that day.
/ / Monthly on the 25th day / / Quarterly beginning on the 25th day of the month you first select
(The request for participation in the Plan must be received by the 1st day of the month in which you wish investments
to begin.)
Amount of each debit (minimum $100) $
-------------------------------------------------
NOTE: A Bank Authorization Form (below) and a voided personal check must accompany the Automatic Investment Plan
Application.
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
G.T. GLOBAL
MUTUAL FUNDS AUTOMATIC INVESTMENT PLAN
</TABLE>
[LOGO]
<TABLE>
<S> <C> <C>
BANK AUTHORIZATION
</TABLE>
<TABLE>
<S> <C> <C> <C>
- ------------------------- ------------------------------ ------------
Bank Name Bank Address Bank Account Number
I/We authorize you, the above named bank, to debit my/our account for amounts drawn by the Transfer Agent of the G.T.
Global Mutual Funds, acting as my agent. I/We agree that your rights in respect to each withdrawal shall be the same
as if it were a check drawn upon you and signed by me/us. This authority shall remain in effect until I/we revoke it
in writing and you receive it. I/We agree that you shall incur no liability when honoring any such debit.
I/We further agree that you will incur no liability to me if you dishonor any such withdrawal. This will be so even
though such dishonor results in the forfeiture of investment.
- --------------------------------------------------------- ---------------------------------------------------------
Account Holder's Name Joint Account Holder's Name
X X
- ------------------------------------ -------------- ------------------------------------ --------------
Account Holder's Signature Date Joint Account Holder's Signature Date
</TABLE>
(OVER)
<PAGE>
<TABLE>
<S> <C> <C> <C>
SYSTEMATIC WITHDRAWAL PLAN / / YES / / NO
MINIMUM REQUIREMENTS: $10,000 INITIAL ACCOUNT BALANCE AND $100 MINIMUM PERIODIC PAYMENT.
I/We hereby authorize the Transfer Agent of the G.T. Global Mutual Funds to redeem the necessary number of / / Class
A or / / Class B shares from my/our G.T. Global Account on the designated dates in order to make the following
periodic payments:
/ / Monthly on the 25th day / / Quarterly beginning on the 25th day of the month you first select
(The request for participation in the Plan must be received by the 18th day of the month in which you wish
withdrawals to begin.)
Maximum annual withdrawal of 12% of initial account balance for shares subject to a contingent deferred sales charge.
Withdrawals in excess of 12% of the initial account balance annually may result in assessment of a contingent
deferred sales charge, as described in the applicable Fund's prospectus.
Amount of each check ($100 minimum): $
- -----------------
Please make checks payable to: -------------------------------------------------------------------------------------
(TO BE COMPLETED ONLY IF Recipient
REDEMPTION PROCEEDS TO BE PAID -------------------------------------------------------------------------------------
TO OTHER THAN ACCOUNT HOLDER Street Address
OF RECORD OR MAILED TO ADDRESS -------------------------------------------------------------------------------------
OTHER THAN ADDRESS OF RECORD) City, State, Zip Code
NOTE: If recipient of checks is not the registered shareholder, signature(s) below must be guaranteed. A corporation
(or partnership) must also submit a "Corporate Resolution" (or "Certification of Partnership") indicating the names
and titles of Officers authorized to act on its behalf.
AGREEMENT AND SIGNATURES
The investor(s) certifies(y) and agree(s) that the certifications, authorizations, directions and restrictions
contained herein will continue until the Transfer Agent of the G.T. Global Mutual Funds receives written notice of
any change or revocation. Any change in these instructions must be in writing with all signatures guaranteed (if
applicable).
- ----------------------------------------------------------
Date
X X
- ----------------------------------------------------- --------------------------------------------------
Signature Signature
- ----------------------------------------------------------- --------------------------------------------------------
Signature Guarantee* (if applicable) Signature Guarantee* (if applicable)
X X
- ----------------------------------------------------- --------------------------------------------------
Signature Signature
- ----------------------------------------------------------- --------------------------------------------------------
Signature Guarantee* (if applicable) Signature Guarantee* (if applicable)
*Acceptable signature guarantors: (1) a commercial bank; (2) a U.S. trust company; (3) a member firm of a U.S. stock
exchange;
(4) a foreign branch of any of the foregoing; or (5) any other eligible guarantor institution. A notary public is NOT
an acceptable guarantor. An investor with questions concerning the G.T. Global Mutual Funds signature guarantee
requirement should contact the Transfer Agent.
</TABLE>
- --------------------------------------------------------------------------------
INDEMNIFICATION AGREEMENT
To: Bank Named on the Reverse
In consideration of your compliance with the request and authorization of the
depositor(s) named on the reverse, the Transfer Agent of the G.T. Global Mutual
Funds hereby agrees:
1. To indemnify and hold you harmless from any loss you may incur because of the
payment by you and of any debit by the Transfer Agent to its own order on the
account of such depositor(s) and received by you in the regular course of
business for payment, or arising out of the dishonor by you of any debit,
provided there are sufficient funds in such account to pay the same upon
presentation.
2. To defend at its own expense any action which might be brought by any
depositor or any other persons because of your actions taken pursuant to the
above mentioned request or in any manner arising by reason of your participation
in connection with such request.
<PAGE>
G.T. GLOBAL EMERGING MARKETS FUND
G.T. LATIN AMERICA GROWTH FUND
[LOGO]
G.T. GLOBAL GROUP OF FUNDS
G.T. GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY
INVESTORS' PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE
G.T. GLOBAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL G.T.
GLOBAL DIRECTLY AT 1-800-824-1580.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
G.T. GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
G.T. GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside
the U.S.
G.T. GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
G.T. GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
G.T. GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
G.T. GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
G.T. GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
G.T. GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
G.T. GLOBAL CONSUMER PRODUCTS AND
SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services.
/ / REGIONALLY DIVERSIFIED FUNDS
G.T. GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
G.T. GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
G.T. LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
G.T. GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
G.T. GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
G.T. GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
G.T. GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
G.T. GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
G.T. GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
G.T. GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN THIS PROSPECTUS
AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED
UPON AS HAVING BEEN AUTHORIZED BY G.T. GLOBAL GROWTH SERIES, G.T. INVESTMENT
FUNDS, INC., G.T. GLOBAL EMERGING MARKETS FUND, G.T. LATIN AMERICA GROWTH
FUND, G.T. CAPITAL MANAGEMENT, INC. OR G.T. GLOBAL FINANCIAL SERVICES, INC.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF ANY
OFFER TO BUY ANY OF THE SECURITIES OFFERED HEREBY IN ANY JURISDICTION TO ANY
PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.
LEMPR503169MC
