<PAGE>
G.T. CAPITAL
[LOGO]
TWENTY-FIVE
YEARS OF
PROVIDING
ACCESS TO
GLOBAL MARKETS
/ /
G.T. GLOBAL
INFRASTRUCTURE
FUND
/ /
SEMIANNUAL REPORT
APRIL 30, 1995
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Report from the Fund
Managers and Key
Portfolio Holdings..... 1
Financial Statements... F-1
</TABLE>
<PAGE>
REPORT FROM THE FUND MANAGERS
The G.T. Global Infrastructure Fund seeks long-term growth of capital by
investing all its assets in the Global Infrastructure Portfolio. The Portfolio,
in turn, invests primarily in equity securities of companies throughout the
world that design, develop or provide products and services significant to a
country's infrastructure.
PERFORMANCE REVIEW
The Fund's total return for the six months ended April 30, 1995, was -7.38% for
Class A shares (-11.78% including the effect of the maximum 4.75% sales charge).
Total return for Class B shares for the same period was -7.63% (-12.25%
including the 5% maximum contingent deferred sales charge). The Morgan Stanley
Capital International (MSCI) World Index(1) posted a return of 4.82% for this
same investment period. For additional performance information, please see page
8.
The Fund underperformed the index for several reasons. Most significantly, the
index has less than a 5% weighting in emerging markets (which posted negative
returns for the period), compared to the 30-50% that was typical for the Fund
during the investment period. Our U.S. infrastructure stocks also underperformed
broader U.S. indices, which did so well during this investment period. As
provided in the Fund's prospectus, the Fund may attempt to hedge against adverse
movements in currency exchange rates by entering into forward currency contracts
for the purchase or sale of a specified currency at a specified future date. Our
strategy has been to hedge against a strengthening U.S. dollar. This means that
when the dollar weakens, as it did over the period, the Fund's performance is
adversely affected. We will continue to hedge when we consider it appropriate.
The portfolio was hedged against a rising dollar for several months of the
period. As the dollar dropped to all-time lows against the Japanese yen and
German deutschemark in April, these hedges resulted in a decline of
approximately -1.4%.
- --------------
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,582 securities listed on major world stock exchanges.
It includes the effect of reinvested dividends and is measured in U.S.
dollars.
1
<PAGE>
MARKET REVIEW
Since last fall, two major factors have weighed heavily on emerging markets and,
by extension, the Fund. First, interest rate increases by the U.S. Federal
Reserve led to weakness in emerging markets. Since higher interest rates made
fixed income markets more attractive to investors, money was drawn away from
alternative investments such as the emerging markets. There were also concerns
that the dollar-linked emerging economies would slow down since many of them saw
their own interest rates rise to match the U.S.
The second major factor, perhaps even more significant, was the Mexican foreign
exchange crisis, which led to sharp selloffs in Latin American stocks as well as
some Asian markets. The ending of the established trading band between the
Mexican peso and the U.S. dollar, which had been a key pillar of the Mexican
government's economic policy, came as a surprise to most market participants.
The demise of this trading band, which investors had counted on to maintain the
real value of their Mexican holdings, caused an increase in the perceived level
of risk in the Mexican market and, by extension, in other emerging markets.
Securities' prices in these markets dropped accordingly, reflecting the higher
returns required to compensate for the greater perceived risk. Consequently, the
Fund's holdings in Latin America and the Far East (non-Japan) provided a -7%
return for the six-month period.
For most of the past six-month period, the Fund has generally maintained a cash
position in excess of 10%, a temporary defensive measure described in the
prospectus. Emerging markets are also underweighted at about a 35% level, versus
a typical allocation of 50%. Our view of a likely soft landing for the U.S.
economy has led us to keep the U.S. weighting around 30%.
PORTFOLIO STRATEGY
Due to our belief that the bulk of rapid infrastructure growth is in emerging
nations, under current market conditions we continue to focus a sizable portion
of our attention on companies in these markets. Under the broad scope of
infrastructure, we are concentrating on electricity generation,
telecommunications, transportation, building materials, construction equipment,
engineering services and capital equipment related to the above industries.
Companies involved in water and gas services, waste management and energy also
remain possible areas of investment. These allocations will vary, of course,
depending on market conditions.
2
<PAGE>
OUTLOOK
We believe government trends around the world will result in an increased need
for infrastructure. While these trends may not continue and may not,
necessarily, positively affect the Fund, we do believe they are worth noting.
We view the creation of proper legal and economic conditions as crucial to
government efforts in developing countries to attract capital and management
expertise. For example, growing demand during the 1980s, accompanied by a
failure to add enough electricity-generating capacity meant that power shortages
were a common occurrence in the Philippines in the early 1990s. In response, the
Philippine government instituted a tendering process inviting anyone to bid on
building power plants. Project selection was determined by quickness of
completion and competitiveness of generating costs. The result has been a strong
development effort by foreign companies that has eliminated the brownouts that
had plagued the country's economic growth. Another example is the privatization
of telephone companies in some Latin American companies that jump-started
development of previously languished telecommunications networks. Combinations
of incentives and penalties served to stimulate increased line growth and
service quality for Latin Americans.
On the other hand, some countries are still in the learning stages of
encouraging infrastructure investment. In addition, their governments face local
pressures not to give away too much to foreigners. The privatization of SPT
Telecom, the Czech telecommunications company, has been delayed by government
reassessment of bidding policies and pricing regimes as well as ongoing
deliberation over the role of domestic and foreign companies. Overseas
participation in large power projects has come to a halt in China. After early
projects produced significant returns for some foreign investors, Chinese
central government approvals of the projects have slowed as the government
attempts to limit the returns of foreign investors in power plants. Development
has stopped because investors find lower returns untenable for the risks they
will bear.
We believe that with the needs of the developing countries so great in so many
different nations, competition for foreign capital could result in changes more
favorable to investors. Power project developers that had initially focused on
the
3
<PAGE>
Chinese market have turned to Indonesia, Pakistan and India, where conditions
appear better. With new projects grinding forward and capital flowing elsewhere,
we have seen encouraging signs lately that suggest the Chinese government is
reassessing its policies on foreign investment.
We believe the outlook for infrastructure development globally, and especially
in the emerging economies, is excellent on a long-term basis. With an eye
towards managing through difficult markets, we will continue to buy growing
companies at attractive price levels.
CHRISTIAN WIGNALL DAVID SHERRY
CHIEF INVESTMENT OFFICER CO-PORTFOLIO MANAGER
GLOBAL EQUITIES SAN FRANCISCO
SAN FRANCISCO
MICHAEL MAHONEY
CO-PORTFOLIO MANAGER
SAN FRANCISCO
MAY 30, 1995
GLOBAL INFRASTRUCTURE PORTFOLIO
4
<PAGE>
TOP PORTFOLIO HOLDINGS*
NOKIA FINLAND
Nokia is in the final stages of transforming itself from a Finnish conglomerate
to a leading telecommunications equipment provider. The company now has the
second largest global market share in cellular hand sets and is also second in
the manufacture of European digital-standard cellular systems. Analysts expect
industry growth in Nokia's core wireless markets to expand at rates exceeding
25%.
LDDS COMMUNICATIONS U.S.
LDDS, soon to be renamed WorldCom, is the fourth-largest facilities-based long-
distance carrier in the U.S. We think recent regulatory and legislative trends
point toward the eventual entrance of the regional Bell companies into the long-
distance market. This possibility, combined with other companies professing
interest in the telecommunications business, gives LDDS, in our view, a unique
collection of assets that trades at an attractive valuation.
THREE FIVE SYSTEMS (TFS) U.S.
With 84% of the company's 1994 revenues coming from Motorola, TFS has benefited
from the strong growth in cellular subscribers worldwide. TFS makes liquid
crystal displays and light-emitting diodes that display numbers, characters and
graphics for telecommunications equipment, medical instruments, industrial
controls and office automation.
BROADBAND TECHNOLOGIES (BBT) U.S.
Broadband Technologies is a leading developer and manufacturer of switched-
digital telecommunications equipment that allows telephone companies to provide
video services. Bell Atlantic, which among the Baby Bells has had a more
aggressive video strategy, has begun deploying BBT's products and recently
purchased warrants convertible into BBT stock. Other Baby Bells have indicated a
shift in interest towards switched-digital video. Equipment makers, such as
General Instrument and ADC Telecom, that have favored an alternative technology,
hybrid fiber-coax, have recently announced plans to develop switched-digital
products.
CATERPILLAR (CAT) U.S.
CAT manufactures construction, mining and agricultural machinery as well as
engines for highway trucks, locomotives and earth-moving equipment. The
- --------------
* There can be no assurance that the fund will continue to hold these
securities.
5
<PAGE>
company sells its equipment around the world; approximately half of CAT's sales
come from outside the U.S.
CHILGENER CHILE
Chilgener is the second-largest electricity-generation company in Chile. Demand
for electrical energy in Chile has grown at an average annual rate that exceeds
the average annual growth rate of Chile's GDP over the last five years.
According to the company, its growth strategy includes constructing more plants
in Chile, investing in electricity companies in neighboring countries and
possibly, as part of a consortium, building a natural gas pipeline from
Argentina to Chile.
KOREA ELECTRIC POWER (KEPCO) SOUTH KOREA
KEPCO is the sole company engaged in the transmission and distribution of
electricity in South Korea, owning more than 90% of the country's total
electricity-generating capacity. While GDP in South Korea grew at a rate ranging
from 5.1% to 9.6% per annum from 1989 to 1993, electricity consumption increased
consistently at more than a 10% annual rate. The government's development plan
calls for a doubling of generation capacity by 2006. Our expectations of KEPCO's
growth rate and its modest price-to-cash flow multiple relative to
slower-growing utilities in other countries, cause us to favor this stock.
MANNESMANN GERMANY
Mannesmann is a diversified industrial conglomerate involved in machinery, plant
construction, automotive technology, tubes, pipes and telecommunications.
Although the recession and recent slow recovery in Europe have resulted in
depressed earnings in its traditional businesses, the company has realized the
growing importance of telecommunications. Mannesmann is the majority owner of
Germany's second-largest cellular company, whose rapid growth has exceeded
expectations and will deliver profits to the parent this year. The company also
has investments in Italian cellular and Spanish and French paging companies and
is exploring a joint venture in Germany that would ultimately compete with
Deutsche Telecom.
TELEFONICA DE ESPANA SPAIN
Telefonica is the dominant provider of telecommunications services in Spain. An
early beneficiary of the global trend toward privatization, Telefonica has
substantial interests in telecommunication companies in Chile, Argentina, Peru
and Venezuela. New management at these companies was able to cut costs and
create value for Telefonica's shareholders. Although there is still a high
degree of
6
<PAGE>
government control of the telecommunications industry in Spain, we believe a
share sell-down in progress at the end of April by the government could possibly
give the company more flexibility to restructure and cut expenses at home.
GIANT CEMENT HOLDING INC. U.S.
Serving the south Atlantic and middle Atlantic regions, Giant Cement
manufactures a complete line of portland and masonry cement used in residential,
commercial and infrastructure construction. We see the U.S. cement industry in
an increasingly favorable position as capacity utilization has risen. No
material capacity additions are expected in the near future and a booming demand
for cement around the world has curbed imports. As a result, U.S. cement
producers, including Giant, have been able to raise prices and increase
profitability. Due to the late-cycle nature of this business, we expect this
trend to continue and believe cement company share prices do not reflect the
favorable situation.
7
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
PORTFOLIO SUMMARY
PERFORMANCE SUMMARY
THE CHART AT RIGHT SHOWS THE PERFORMANCE OF THE G.T. GLOBAL
INFRASTRUCTURE FUND CLASS A SHARES SINCE THE FUND'S INCEPTION VERSUS THE MSCI
WORLD INDEX. THIS REPRESENTS A CUMULATIVE RETURN OF -3.75%. THE CHART ASSUMES A
HYPOTHETICAL $10,000 INITIAL INVESTMENT IN THE FUND'S CLASS A SHARES AND
REFLECTS ALL FUND EXPENSES AND THE MAXIMUM 4.75% SALES CHARGE. INVESTORS SHOULD
NOTE THAT THE FUND IS A PROFESSIONALLY MANAGED MUTUAL FUND WHILE THE INDEX IS
UNMANAGED, DOES NOT INCUR EXPENSES AND IS NOT AVAILABLE FOR INVESTMENT. THE
PERFORMANCE OF OTHER CLASSES WILL BE GREATER OR LESS THAN THE LINE SHOWN BASED
ON DIFFERENCES IN CHARGES AND FEES PAID BY SHAREHOLDERS INVESTING IN DIFFERENT
CLASSES.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
G.T. Global
Infrastruc-
Month ture Fund MSCI World
<S> <C> <C>
05/31/94 9,525 10,000
06/30/94 9,567 9,974
07/31/94 9,992 10,165
08/31/94 10,400 10,473
09/30/94 10,325 10,200
10/31/94 10,392 10,492
11/30/94 10,042 10,039
12/31/94 9,817 10,138
01/31/95 9,567 9,987
02/28/95 9,308 10,135
03/31/95 9,133 10,626
04/30/95 9,625 10,998
</TABLE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
CUMULATIVE RETURNS
APRIL 30, 1995
<TABLE>
<CAPTION>
SHARE WITHOUT SALES CHARGE WITH SALES CHARGE+
CLASS LIFE OF FUND LIFE OF FUND
<S> <C> <C>
CLASS A* 1.05% -3.75%
CLASS B* 0.61% -4.39%
<FN>
* The Fund began operations on May 31, 1994.
+ The performance of the Class A and Class B shares reflects the effects of
the maximum 4.75% sales charge or the maximum applicable contingent deferred
sales charge (5% in first year, decreasing to 0% after six years).
</TABLE>
THE DATA ABOVE REPRESENT PAST PERFORMANCE OF THE FUND'S SHARES, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GEOGRAPHIC ALLOCATION OF NET ASSETS AS OF APRIL 30, 1995 SECTOR ALLOCATION OF NET ASSETS AS OF APRIL 30, 1995
<S> <C> <C> <C>
UNITED STATES 44.6% ENERGY 23.6%
EUROPE 21.8% SERVICES 21.3%
ASIA-PACIFIC 18.3% CAPITAL GOODS 20.0%
LATIN AMERICA 15.3% MATERIALS/BASIC INDUSTRY 14.5%
CONSUMER DURABLES 2.8%
MULTI-INDUSTRY/MISCELLANEOUS 2.0%
TECHNOLOGY 1.0%
SHORT-TERM & OTHER 14.8%
</TABLE>
ALLOCATIONS WILL CHANGE BASED ON CURRENT MARKET CONDITIONS.
8
<PAGE>
/ /
G.T. GLOBAL
INFRASTRUCTURE
FUND
/ /
FINANCIAL
STATEMENTS
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments in Global Infrastructure Portfolio (cost $87,600,987)(Note 1)...... $ 86,150,363
Receivable for Fund shares sold................................................ 391,424
Receivable for expense reimbursement(Note 2)................................... 238,660
Unamortized organizational expenses (Note 1)................................... 45,910
Prepaid expenses............................................................... 2,042
--------------
Total assets................................................................... 86,828,399
--------------
Liabilities:
Payable for Fund shares repurchased............................................ 108,305
Payable for administration fees (Note 2)....................................... 76,190
Payable for service and distribution expenses (Note 2)......................... 52,716
Payable for professional fees.................................................. 19,397
Payable for registration fees.................................................. 17,888
Payable for fund accounting fees............................................... 9,324
Payable for printing and postage expenses...................................... 9,064
Payable for Directors' fees and expenses (Note 2).............................. 4,938
Payable for transfer agent fees (Note 2)....................................... 2,844
Accrued expenses............................................................... 108
--------------
Total liabilities.............................................................. 300,774
--------------
Net assets....................................................................... $ 86,527,625
--------------
--------------
Class A:
Net asset value and redemption price per share
($39,251,876 DIVIDED BY 3,398,351 shares outstanding)......................... $ 11.55
--------------
--------------
Maximum offering price per share
(100/95.25 0f $11.55)*......................................................... $ 12.13
--------------
--------------
Class B:+
Net asset value and offering price per share
($47,275,749 DIVIDED BY 4,111,042 shares outstanding)......................... $ 11.50
--------------
--------------
Net assets consist of:
Paid in capital (Note 3)....................................................... $ 90,711,570
Accumulated net investment loss................................................ (160,196)
Accumulated net realized loss on investments and foreign currency transactions
-- Global Infrastructure Portfolio............................................ (2,573,125)
Net unrealized depreciation on translation of assets and liabilities in foreign
currencies -- Global Infrastructure Portfolio................................. (367,716)
Net unrealized depreciation of investments -- Global Infrastructure
Portfolio..................................................................... (1,082,908)
--------------
Total -- representing net assets applicable to capital shares outstanding...... $ 86,527,625
--------------
--------------
<FN>
- ----------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deffered sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-1
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
STATEMENT OF OPERATIONS
Six months ended April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income:
Interest income -- Global Infrastructure Portfolio.................................................... $ 423,603
Dividend income -- Global Infrastructure Portfolio.................................................... 395,733
-----------
Total investment income............................................................................... 819,336
-----------
Expenses:
Expenses -- Global Infrastructure Portfolio........................................................... 352,947
Service and distribution expenses (Note 2)
Class A................................................................................ $ 79,203
Class B................................................................................ 211,220 290,423
-----------
Transfer agent fees (Note 2).......................................................................... 172,810
Registration fees..................................................................................... 147,100
Administration fees (Note 2).......................................................................... 92,407
Printing and postage expenses......................................................................... 80,036
Legal fees............................................................................................ 60,077
Audit fees............................................................................................ 27,670
Directors' fees and expenses (Note 2)................................................................. 10,430
Fund accounting fees.................................................................................. 7,393
Amortization of organizational expenses (Note 1)...................................................... 1,298
Other................................................................................................. 1,808
-----------
Total expenses before expense reimbursement and expense reduction..................................... 1,244,399
Less expense reduction -- Global Infrastructure Portfolio........................................... (13,029)
Less expense reimbursement (Note 2)................................................................. (238,660)
-----------
Total net expenses.................................................................................... 992,710
-----------
Net investment loss................................................................................... (173,374)
-----------
Net realized and unrealized loss on investments and foreign currencies:
Net realized loss on investments -- Global Infrastructure Portfolio...................... (1,761,215)
Net realized loss on foreign currency transactions -- Global Infrastructure Portfolio.... (762,689)
-----------
Net realized loss during the period................................................................. (2,523,904)
Net change in unrealized appreciation (depreciation) on translation of assets and
liabilities in foreign currencies -- Global Infrastructure Portfolio.................... (368,860)
Net change in unrealized appreciation (depreciation) of investments -- Global
Infrastructure Portfolio................................................................ (2,192,576)
-----------
Net unrealized depreciation during the period....................................................... (2,561,436)
-----------
Net realized and unrealized loss on investments and foreign currencies -- Global Infrastructure
Portfolio............................................................................................ (5,085,340)
-----------
Net decrease in net assets resulting from operations.................................................. $(5,258,714)
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAY 31, 1994
(COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS)
APRIL 30, 1995 TO OCTOBER 31,
(UNAUDITED) 1994
---------------- ----------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income (loss).......................................................... $ (173,374) $ 13,178
Net realized loss on investments and foreign currency transactions -- Global
Infrastructure Portfolio............................................................ (2,523,904) (49,221)
Net change in unrealized apppreciation (depreciation) on translation of assets and
liabilities in foreign currencies -- Global Infrastructure Portfolio................ (368,860) 1,144
Net change in unrealized appreciation (depreciation) of investments -- Global
Infrastructure Portfolio............................................................ (2,192,576) 1,109,668
---------------- ----------------
Net increase (decrease) in net assets resulting from operations..................... (5,258,714) 1,074,769
Capital Share Transactions (Note 3):
Increase from shares sold........................................................... 50,133,939 55,939,368
Decrease from shares repurchased.................................................... (12,917,086) (2,544,651)
---------------- ----------------
Net increase from capital share transactions........................................ 37,216,853 53,394,717
---------------- ----------------
Total increase in net assets.......................................................... 31,958,139 54,469,486
Net assets:
Beginning of period................................................................. 54,569,486 100,000
---------------- ----------------
End of period....................................................................... $ 86,527,625 $ 54,569,486
---------------- ----------------
---------------- ----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A CLASS B
----------------------------------- -----------------------------------
MAY 31, 1994 MAY 31, 1994
SIX MONTHS ENDED (COMMENCEMENT OF SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1995 OPERATIONS) TO APRIL 30, 1995 OPERATIONS) TO
(UNAUDITED) OCTOBER 31, 1994 (UNAUDITED) OCTOBER 31, 1994
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period..... $ 12.47 $ 11.43 $ 12.45 $ 11.43
------- ------- ------- -------
Income from investment operations:
Net investment income (loss)........... (0.01) 0.01* (0.04) (0.01)*
Net realized and unrealized gain on
investments........................... (0.91) 1.03 (0.91) 1.03
------- ------- ------- -------
Net increase in net asset value resulting
from investment operations.............. (0.92) 1.04 (0.95) 1.02
------- ------- ------- -------
Net asset value, end of period........... $ 11.55 $ 12.47 $ 11.50 $ 12.45
------- ------- ------- -------
------- ------- ------- -------
Total investment return (c).............. (7.38)%(b) 9.10%(b) (7.63)%(b) 8.92%(b)
------- ------- ------- -------
------- ------- ------- -------
Ratios and supplemental data:
Net assets, end of period (in 000's)..... $39,252 $23,615 $47,276 $30,954
Ratio of net investment income (loss) to
average net assets
With reimbursement by G.T. Capital
Management, Inc. and expense reduction
(Notes 1 & 2)......................... (0.18)%(a) 0.41%(a) (0.68)%(a) (0.09)%(a)
Without reimbursement by G.T. Capital
Management, Inc. and expense
reduction............................. (0.86)%(a) (0.47)%(a) (1.36)%(a) (0.97)%(a)
Ratio of expenses to average net assets
With reimbursement by G.T. Capital
Management, Inc. and expense reduction
(Notes 1 & 2)......................... 2.40%(a) 2.40%(a) 2.90%(a) 2.90%(a)
Without reimbursement by G.T. Capital
Management, Inc. and expense
reduction............................. 3.08%(a) 3.28%(a) 3.58%(a) 3.78%(a)
<FN>
- ----------------
(a) Annualized.
(b) Not Annualized.
(c) Total investment return does not included sales charges.
* Before reimbursement by G.T. Capital Management, Inc., the net investment
income per share would have been reduced by $0.02 for each class.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
NOTES TO
FINANCIAL STATEMENTS
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global Infrastructure Fund ("Fund") is a separate series of G.T. Investment
Funds, Inc. ("Company"). The Company is organized as a Maryland corporation and
is registered under the Investment Company Act of 1940, as amended ("1940 Act"),
as a diversified, open-end management investment company. The Company has twelve
series of shares in operation, each series corresponding to a distinct portfolio
of investments. The Fund invests substantially all of its investable assets in
Global Infrastructure Portfolio ("Portfolio"), which is registered as an
open-end management investment company under the 1940 Act and has investment
objectives, policies and limitations substantially identical to those of the
Fund. The value of the Fund's investment in the Portfolio reflects the Fund's
proportionate interest in the net assets of the Portfolio. The financial
statements of the Portfolio, including the Portfolio of Investments, are
included elsewhere in this Report and should be read in conjunction with the
Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles.
(A) INVESTMENT VALUATION
Valuation of securities and other investment practices by the Portfolio are
discussed in Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this Report.
(B) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, and excise tax on income
and capital gains. The Fund currently has a capital loss carryforward of $26,214
which expires in 2002.
(C) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Portfolio and timing differences.
(D) DEFERRED ORGANIZATIONAL EXPENSES
Expenses incurred by the Fund in connection with its organization, its
registration with the Securities and Exchange Commission and with various states
and the initial public offering of its shares aggregated $51,500. These expenses
are being amortized on a straightline basis over a five-year period.
2. RELATED PARTIES
G.T. Capital Management, Inc. ("G.T. Capital") is the Fund's administrator. The
Fund pays administration fees to G.T. Capital at the annualized rate of 0.25% of
the Fund's average daily net assets. These fees are computed daily and paid
monthly, and are subject to reduction in any year to the extent that the Fund's
expenses (exclusive of brokerage commissions, taxes, interest,
distribution-related expenses and extraordinary expenses) exceed the most
stringent limits prescribed by the laws or regulations of any state in which the
Fund's shares are offered for sale, based on the average total net asset value
of the Fund.
G.T. Global Financial Services, Inc. ("G.T. Global"), an affiliate of G.T.
Capital, serves as the Fund's distributor. The Fund offers Class A shares and
Class B shares for purchase.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. G.T. Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the period ended April 30, 1995, G.T. Global retained
$54,496 of such sales charges. G.T. Global also makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class A
shares.
F-5
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
Class B shares are not subject to initial sales charges. When Class B shares are
sold, G.T. Global from its own resources pays commissions to dealers through
which the sales are made. Certain redemptions of Class B shares made within six
years of purchase are subject to contingent deferred sales charges ("CDSCs"), in
accordance with the Fund's current prospectus. For the period ended April 30,
1995, G.T. Global collected CDSCs in the amount of $89,247. In addition, G.T.
Global makes ongoing shareholder servicing and trail commission payments to
dealers whose clients hold Class B shares.
Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Directors has
adopted separate plans of distribution with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses G.T. Global for a portion of its shareholder servicing and
distribution expenses. Under the Class A Plan, the 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 A shares for G.T. Global's 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 Fund's Class A shares, less any amounts paid by the Fund as the
aforementioned service fee, for G.T. Global's expenditures incurred in providing
services as distributor. All expenses for which G.T. Global is reimbursed under
the Class A Plan will have been incurred within one year of such reimbursement.
Pursuant to the Fund's Class B Plan, the Fund may pay 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 G.T. Global's 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 G.T. Global's 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. Capital and G.T. Global voluntarily have undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest, and extraordinary
expenses) to the maximum 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. If necessary,
this limitation will be effected by waivers by G.T. Capital of administration
fees, waivers by G.T. Global of payments under the Class A Plan and/or Class B
Plan and/or reimbursements by G.T. Capital or G.T. Global of portions of the
Fund's other operating expenses.
G.T. Global Investor Services, Inc. ("G.T. Services"), an affiliate of G.T.
Capital and G.T. Global, is the transfer agent of the Fund.
The Company pays each of its Directors who is not an employee, officer or
director of G.T. Capital, G.T. Global or G.T. Services $5,000 per year plus $300
for each meeting of the board or any committee thereof attended by the Director.
F-6
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
3. CAPITAL SHARES
At April 30, 1995, there were 6,000,000,000 shares of the Company's common stock
authorized, at $0.0001 par value. Of this amount, 200,000,000 were classified as
shares of the Fund; 400,000,000 were classified as shares of G.T. Global
Government Income Fund; 200,000,000 were classified as shares of G.T. Global
Health Care Fund; 200,000,000 were classified as shares of G.T. Global Emerging
Markets Fund; 200,000,000 were classified as shares of G.T. Global Currency Fund
(inactive); 200,000,000 were classified as shares of G.T. Global Growth & Income
Fund; 200,000,000 were classified as shares of G.T. Global Small Companies Fund
(inactive); 200,000,000 were classified as shares of G.T. Latin America Growth
Fund; 400,000,000 were classified as shares of G.T. Global Telecommunications
Fund; 200,000,000 were classified as shares of G.T. Global Strategic Income
Fund; 200,000,000 were classified as shares of G.T. Global High Income Fund;
200,000,000 were classified as shares of G.T. Global Natural Resources Fund;
200,000,000 were classified as shares of G.T. Global Financial Services Fund;
200,000,000 were classified as shares of G.T. Global Consumer Products and
Services Fund; and 2,800,000,000 shares remain unclassified. The shares of each
of the foregoing series of the Company were divided equally into two classes,
designated Class A and Class B common stock. Transactions in capital shares of
the Fund were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
MAY 31, 1994
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1995 OPERATIONS)
(UNAUDITED) TO OCTOBER 31, 1994
---------------------- ----------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold...................................................................... 2,083,233 $24,359,991 2,020,133 $24,648,202
Shares repurchased............................................................... (578,151) (6,593,665) (131,239) (1,614,053)
--------- ----------- --------- -----------
Net increase..................................................................... 1,505,082 $17,766,326 1,888,894 $23,034,149
--------- ----------- --------- -----------
--------- ----------- --------- -----------
<CAPTION>
MAY 31, 1994
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1995 OPERATIONS)
(UNAUDITED) TO OCTOBER 31, 1994
---------------------- ----------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold...................................................................... 2,182,986 $25,773,948 2,557,551 $31,291,166
Shares repurchased............................................................... (558,130) (6,323,421) (75,739) (930,598)
--------- ----------- --------- -----------
Net increase..................................................................... 1,624,856 $19,450,527 2,481,812 $30,360,568
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</TABLE>
4. SUBSEQUENT EVENT
On June 1, 1995, the Fund, along with the other series of G.T. Investment Funds,
Inc., commenced offering a new class of shares, the "Advisor Class" shares.
These shares are available, subject to certain terms and conditions, to employee
benefit plans; to investor accounts managed or advised by financial planners,
bank trust departments, or under a "wrap fee" program; and to other accounts
advised by companies affiliated with the G.T. Group. With respect to the
issuance of "Advisor Class" shares, 100,000,000 shares were classified as shares
of each of the fourteen series of the Company and designated as "Advisor Class"
common stock. 1,400,000,000 shares remain unclassified.
F-7
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Market Assets
Equity Investments Country Shares Value (DELTA)
- ---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (23.6%)
- ----------------------------
Chilegener S.A. -
ADR(INVERTED TRIANGLE)... CHLE 80,000 $ 2,240,000 2.7
ELECTRICAL & GAS
UTILITIES
Korea Electric Power Corp.
- ADR(INVERTED
TRIANGLE)................ KOR 100,000 2,100,000 2.5
ELECTRICAL & GAS
UTILITIES
Capex S.A.(CHECK MARK).... ARG 260,000 1,937,000 2.2
ELECTRICAL & GAS
UTILITIES
Companhia Energetica de
Minas Gerais (Cemig) -
ADR(INVERTED TRIANGLE)
(CHECK MARK)............. BRZL 81,175 1,897,466 2.2
ELECTRICAL & GAS
UTILITIES
Empresa Nacional de
Electridad S.A. -
ADR(INVERTED TRIANGLE)... SPN 40,000 1,880,000 2.2
ELECTRICAL & GAS
UTILITIES
ASEA AB "B" Free.......... SWDN 22,000 1,846,686 2.1
ELECTRICAL
PLANT/EQUIPMENT
EVN Energie-Versorgung
Niederoesterreich AG..... ASTRI 14,000 1,832,487 2.1
ELECTRICAL & GAS
UTILITIES
Edison S.p.A.............. ITLY 400,000 1,697,619 2.0
ELECTRICAL & GAS
UTILITIES
Enron Global Power &
Pipelines L.L.C.......... US 59,000 1,416,000 1.6
ENERGY EQUIPMENT &
SERVICES
MetroGas S.A. -
ADR(INVERTED TRIANGLE)
(CHECK MARK)............. ARG 100,000 987,500 1.1
ENERGY EQUIPMENT &
SERVICES
Compania Boliviana de
Energia
Electrica(INVERTED
TRIANGLE)................ BOL 25,000 621,875 0.7
ELECTRICAL & GAS
UTILITIES
Consolidated Electric
Power Asia............... HK 240,000 525,547 0.6
ELECTRICAL & GAS
UTILITIES
AES China Generating Co.,
Ltd. "A"(CHECK MARK)..... US 54,100 480,138 0.6
ELECTRICAL & GAS
UTILITIES
Powergen PLC -
ADR(INVERTED TRIANGLE)
(CHECK MARK)............. UK 17,300 220,575 0.3
ELECTRICAL & GAS
UTILITIES
Huaneng Power
International, Inc. -
ADR(INVERTED TRIANGLE)
(CHECK MARK)............. CHNA 15,000 217,500 0.3
ENERGY EQUIPMENT &
SERVICES
National Power PLC -
ADR(INVERTED TRIANGLE)... UK 17,500 199,063 0.2
ELECTRICAL & GAS
UTILITIES
Harbin Power Equipment
Co., Ltd. - 144A(CHECK
MARK) (DIAMOND).......... CHNA 560,000 150,120 0.2
ELECTRICAL
PLANT/EQUIPMENT
------------
20,249,576
------------
Services (21.3%)
- ----------------------------
LDDS Communications,
Inc.(CHECK MARK)......... US 125,832 3,019,968 3.4
TELEPHONE - LONG
DISTANCE
Telefonica de Espana -
ADR(INVERTED TRIANGLE)... SPN 55,000 2,021,250 2.3
TELEPHONE NETWORKS
ABC Rail Products
Corp.(CHECK MARK)........ US 75,000 1,940,623 2.2
TRANSPORTATION - ROAD &
RAIL
Telecom Corporation of New
Zealand Ltd. -
ADR(INVERTED TRIANGLE)... NZ 28,000 1,869,000 2.2
TELEPHONE NETWORKS
Stet Di Risp.............. ITLY 810,000 1,856,250 2.2
TELEPHONE NETWORKS
PT Indonesia Satellite
(Indosat) - ADR(INVERTED
TRIANGLE) (CHECK MARK)... INDO 50,000 1,806,250 2.1
TELEPHONE - LONG
DISTANCE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-8
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
<TABLE>
<CAPTION>
% of Net
Market Assets
Equity Investments Country Shares Value (DELTA)
- ---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
- ----------------------------
Centennial Cellular Corp.
"A"(CHECK MARK).......... US 100,000 $ 1,400,000 1.6
WIRELESS COMMUNICATIONS
Philippine Long Distance
Telephone Co. -
ADR(INVERTED TRIANGLE)... PHIL 20,000 1,275,000 1.5
TELEPHONE NETWORKS
RailTex, Inc.(CHECK
MARK).................... US 40,000 1,110,000 1.3
TRANSPORTATION - ROAD &
RAIL
PST Vans, Inc.(CHECK
MARK).................... US 47,500 736,250 0.9
TRANSPORTATION - ROAD &
RAIL
Pakistan
Telecommunications Co.,
Ltd. - 144A GDR(INVERTED
TRIANGLE) (DIAMOND)...... PAK 4,892 511,214 0.6
TELEPHONE NETWORKS
East Japan Railway Co..... JPN 95 494,462 0.6
TRANSPORTATION - ROAD &
RAIL
Pakistan
Telecommunications Co.... PAK 2,800 306,364 0.4
TELEPHONE NETWORKS
Telecomunicacoes
Brasileiras S.A.
(Telebras) - 144A
ADR(INVERTED TRIANGLE)
(DIAMOND)................ BRZL 113 4,103 --
TELEPHONE NETWORKS
------------
18,350,734
------------
Capital Goods (20.0%)
- ----------------------------
Nokia AB Preferred -
ADR(INVERTED TRIANGLE)... FIN 80,000 3,280,000 3.7
TELECOM EQUIPMENT
BroadBand Technologies,
Inc.(CHECK MARK)......... US 95,100 2,377,500 2.8
TELECOM EQUIPMENT
Caterpillar, Inc.......... US 40,000 2,340,000 2.7
MACHINERY & ENGINEERING
Mannesmann AG(CHECK
MARK).................... GER 7,500 2,034,926 2.4
MACHINERY & ENGINEERING
Allgon AB "B" Free........ SWDN 100,000 1,954,491 2.3
TELECOM EQUIPMENT
Fluor Corp................ US 35,000 1,802,500 2.1
CONSTRUCTION
Acme-Cleveland Corp....... US 63,300 1,305,961 1.5
MACHINE TOOLS
United Engineers Ltd...... MAL 200,000 1,149,332 1.3
CONSTRUCTION
Hopewell Holdings......... HK 640,000 454,751 0.5
CONSTRUCTION
E.R.G. Ltd................ AUSL 400,000 352,154 0.4
MULTI-INDUSTRY
Champion Technology
Holdings................. HK 3,878,622 295,638 0.3
TELECOM EQUIPMENT
------------
17,347,253
------------
Materials/Basic Industry
(14.5%)
- ----------------------------
Giant Cement Holding,
Inc.(CHECK MARK)......... US 154,800 2,012,400 2.3
CEMENT
Lone Star Industries,
Inc...................... US 75,000 1,631,250 1.9
CEMENT
Cementos Paz del Rio S.A.
- 144A ADR(INVERTED
TRIANGLE) (CHECK MARK)
(DIAMOND)................ COL 90,000 1,518,750 1.8
CEMENT
Grupo Simec, S.A. de C.V.
- ADR(INVERTED TRIANGLE)
(CHECK MARK)............. MEX 150,000 1,500,000 1.7
METALS - STEEL
La Cementos Nacional, C.A.
- 144A GDR(INVERTED
TRIANGLE) (DIAMOND)...... ECDR 6,400 1,472,000 1.7
CEMENT
Siam Cement Co., Ltd. -
Foreign.................. THAI 24,000 1,380,354 1.6
CEMENT
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-9
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
<TABLE>
<CAPTION>
% of Net
Market Assets
Equity Investments Country Shares Value (DELTA)
- ---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry
(Continued)
- ----------------------------
PT Bakrie and
Brothers(CHECK MARK)..... INDO 398,000 $ 1,178,987 1.4
BUILDING MATERIALS &
COMPONENTS
Hylsamex, S.A. de C.V. -
144A ADR(INVERTED
TRIANGLE) (CHECK MARK)
(DIAMOND)................ MEX 75,000 1,059,375 1.2
METALS - STEEL
PT Semen Cibinong -
Foreign.................. INDO 286,000 768,817 0.9
CEMENT
------------
12,521,933
------------
Consumer Durables (2.8%)
- ----------------------------
Three-Five Systems,
Inc.(CHECK MARK)......... US 100,000 2,425,000 2.8
------------
TELECOM TECHNOLOGY
Multi Industry/Miscellaneous
(2.0%)
- ----------------------------
General Electric Co....... US 30,000 1,680,000 2.0
------------
CONGLOMERATE
Technology (1.0%)
- ----------------------------
ARCH Communicatons Group,
Inc.(CHECK MARK)......... US 28,000 490,000 0.5
WIRELESS COMMUNICATIONS
PriCellular Corp. "A"..... US 54,000 391,500 0.5
WIRELESS COMMUNICATIONS
------------
881,500
------------ -----
Total Equity Investments
(cost $74,298,904)......... 73,455,996 85.2
------------ -----
------------ -----
<CAPTION>
% of Net
Principal Market Assets
Fixed Income Investments Currency Amount Value (DELTA)
- ---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (0.9%)
- ----------------------------
Philippines (0.9%)
- ----------------------------
International Container
Terminal Services,
Convertible Bond, 5.0%
due 9/15/01 -
144A(DIAMOND) (cost
$1,000,000)............ USD 1,000,000 760,000 0.9
------------ -----
------------ -----
<CAPTION>
% of Net
Principal Market Assets
Short-Term Investments Currency Amount Value (DELTA)
- ---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Repurchase Agreement (18.4%)
- ----------------------------
United States (18.4%)
- ----------------------------
Dated April 28, 1995
with State Street Bank
& Trust Company, due
May 1, 1995, for an
effective yield of
5.89% collateralized by
$16,420,000 Federal
Home Loan Bank 4.4% due
4/16/98 (market value
$16,160,314, including
accrued interest).
(cost $15,850,776)..... 15,850,776 18.4
------------ -----
Total Investments (cost
$91,149,680)............... 90,066,772 104.5
Other Assets and
Liabilities................ (3,916,309) (4.5)
------------ -----
Net Assets.................. $ 86,150,463 100.0
------------ -----
------------ -----
<FN>
-----------------
(DELTA) Percentages indicated are based on net assets of $86,150,463.
(INVERTED U.S. currency denominated.
TRIANGLE)
(CHECK Non-income producing security.
MARK)
(DIAMOND) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
* For Federal income tax purposes, cost is $91,149,680 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 4,547,431
Unrealized depreciation: (5,630,339)
-------------
Net unrealized depreciation: $ (1,082,908)
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-10
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
The Fund's Portfolio of Investments at April 30, 1995 was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets (DELTA)
-------------------------------------------
Fixed Income,
Rights & Short-Term
Country (Country Code/ Currency Code) Equity Warrants & Other Total
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Argentina (ARG/ARS)................... 3.3 3.3
Australia (AUSL/AUD).................. 0.4 0.4
Austria (ASTRI/ATS)................... 2.1 2.1
Bolivia (BOL/BOL)..................... 0.7 0.7
Brazil (BRZL/BRL)..................... 2.2 2.2
Chile (CHLE/CLP)...................... 2.7 2.7
China (CHNA/RMB)...................... 0.5 0.5
Colombia (COL/COP).................... 1.8 1.8
Ecuador (ECDR/ECS).................... 1.7 1.7
Finland (FIN/FIM)..................... 3.7 3.7
Germany (GER/DEM)..................... 2.4 2.4
Hong Kong (HK/HKD).................... 1.4 1.4
Indonesia (INDO/IDR).................. 4.4 4.4
Italy (ITLY/ITL)...................... 4.2 4.2
Japan (JPN/JPY)....................... 0.6 0.6
Korea (KOR/KRW)....................... 2.5 2.5
Malaysia (MAL/MYR).................... 1.3 1.3
Mexico (MEX/MXN)...................... 2.9 2.9
New Zealand (NZ/NZD).................. 2.2 2.2
Pakistan (PAK/PKR).................... 1.0 1.0
Philippines (PHIL/PHP)................ 1.5 0.9 2.4
Spain (SPN/ESP)....................... 4.5 4.5
Sweden (SWDN/SEK)..................... 4.4 4.4
Thailand (THAI/THB)................... 1.6 1.6
United Kingdom (UK/GBP)............... 0.5 0.5
United States (US/USD)................ 30.7 13.9 44.6
------ --- --- -----
Total................................. 85.2 0.9 13.9 100
------ --- --- -----
------ --- --- -----
<FN>
- ----------------
(DELTA) Percentages indicated are based on net assets of $86,150,463.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-11
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
Market Value Unrealized
(U.S. Contract Delivery Appreciation
Contracts to Buy: Dollars) Price Date (Depreciation)
- ----------------------------------------------------------------------------- ------------ ----------- --------- -------------
<S> <C> <C> <C> <C>
Deutsche Marks............................................................... 1,249,729 1.39962 05/23/95 $ 13,680
Deutsche Marks............................................................... 1,300,766 1.38766 05/30/95 3,614
Deutsche Marks............................................................... 1,250,181 1.39844 05/30/95 13,087
Deutsche Marks............................................................... 903,310 1.36888 05/30/95 (9,846)
Japanese Yen................................................................. 59,791 91.75100 05/30/95 5,296
Japanese Yen................................................................. 75,935 88.96501 05/30/95 4,559
Japanese Yen................................................................. 40,060 90.30801 05/30/95 2,965
Japanese Yen................................................................. 41,137 84.72260 05/30/95 533
------------ -------------
Total Contracts to Buy (Payable amount $4,887,021)....................... 4,920,909 33,888
------------ -------------
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 5.71%
<CAPTION>
Contracts to Sell:
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Deutsche Marks............................................................... 2,571,697 1.48144 05/23/95 (168,630)
Deutsche Marks............................................................... 2,312,473 1.46539 05/30/95 (128,754)
Deutsche Marks............................................................... 1,315,219 1.44470 05/30/95 (55,442)
Deutsche Marks............................................................... 1,847,960 1.37248 08/03/95 9,997
Japanese Yen................................................................. 119,263 96.64250 05/10/95 (15,789)
Japanese Yen................................................................. 113,604 96.19600 05/30/95 (14,847)
Japanese Yen................................................................. 111,212 94.67600 05/30/95 (12,982)
Japanese Yen................................................................. 111,212 92.15800 05/30/95 (10,298)
Japanese Yen................................................................. 56,204 83.43400 05/30/95 128
------------ -------------
Total Contracts to Sell (Receivable amount $8,162,227)................... 8,558,844 (396,617)
------------ -------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 9.93%
Total Open Forward Foreign Currency Contracts, Net....................... $ (362,729)
-------------
-------------
<FN>
- ----------------
See Note 1 to the financial statements.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-12
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $75,298,904) (Note 1)...................................... $ 74,215,996
Repurchase agreement, at value and cost (Note 1)..................................................... 15,850,776
U.S. currency............................................................................. $ 940
Foreign currencies (cost $905,366)........................................................ 905,315 906,255
---------
Dividends receivable................................................................................. 128,842
Interest receivable.................................................................................. 31,389
Unamortized organizational expenses (Note 1)......................................................... 22,287
Cash held as collateral for securities loaned (Note 1)............................................... 8,878,300
-------------
Total assets......................................................................................... 100,033,845
-------------
Liabilities:
Payable for securities purchased..................................................................... 3,714,737
Payable for forward foreign currency contracts - closed (Note 1)..................................... 633,852
Payable for open forward foreign currency contracts, net (Note 1).................................... 362,729
Payable for investment management and administration fees (Note 2)................................... 217,122
Due to custodian..................................................................................... 26,811
Payable for professional fees........................................................................ 11,845
Payable for printing and postage expenses............................................................ 9,050
Payable for Trustees' fees and expenses (Note 2)..................................................... 969
Accrued expenses..................................................................................... 27,967
Collateral for securities loaned (Note 1)............................................................ 8,878,300
-------------
Total liabilities.................................................................................... 13,883,382
-------------
Net assets............................................................................................. $ 86,150,463
-------------
-------------
Net assets consist of:
Paid in capital (Note 4)............................................................................. $ 89,570,280
Undistributed net investment income.................................................................. 603,932
Accumulated net realized loss on investments and foreign currency transactions....................... (2,573,125)
Net unrealized depreciation on translation of assets and liabilities in foreign currencies........... (367,716)
Net unrealized depreciation of investments........................................................... (1,082,908)
-------------
Total -- representing net assets applicable to shares of beneficial interest outstanding............. $ 86,150,463
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-13
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
STATEMENT OF OPERATIONS
Six months ended April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income (Note 1):
Dividends (net of withholding tax of $40,170)......................................................... $ 395,733
Interest.............................................................................................. 423,603
-----------
Total investment income............................................................................... 819,336
-----------
Expenses:
Investment management and administration fees (Note 2)................................................ 263,882
Custodian and fund accounting fees (Note 1)........................................................... 52,665
Audit expense......................................................................................... 12,670
Printing and postage expenses......................................................................... 9,050
Legal fees............................................................................................ 8,620
Trustees' fees and expenses (Note 2).................................................................. 3,620
Amortization of organizational expenses (Note 1)...................................................... 630
Other................................................................................................. 1,810
-----------
Total expenses before expense reduction............................................................... 352,947
Less expense reduction (Note 1)..................................................................... (13,029)
-----------
Total net expenses.................................................................................... 339,918
-----------
Net investment income................................................................................... 479,418
-----------
Net realized and unrealized loss on investments and foreign currencies (Note 1):
Net realized loss on investments......................................................... $(1,761,215)
Net realized loss on foreign currency transactions....................................... (762,689)
-----------
Net realized loss during the period................................................................. (2,523,904)
Net change in unrealized appreciation (depreciation) on translation of assets and
liabilities in foreign currencies....................................................... (368,860)
Net change in unrealized depreciation of investments..................................... (2,192,576)
-----------
Net unrealized depreciation during the period....................................................... (2,561,436)
-----------
Net realized and unrealized loss on investments and foreign currencies.................................. (5,085,340)
-----------
Net decrease in net assets resulting from operations.................................................... $(4,605,922)
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-14
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED MAY 31, 1994
APRIL 30, 1995 (COMMENCMENT OF OPERATIONS)
(UNAUDITED) TO OCTOBER 31, 1994
----------------- ----------------------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income........................................................... $ 479,418 $ 124,514
Net realized loss on investments and foreign currency transactions.............. (2,523,904) (49,221)
Net change in unrealized appreciation (depreciation) on translation of assets
and liabilities in foreign currencies.......................................... (368,860) 1,144
Net change in unrealized appreciation (depreciation) of investments............. (2,192,576) 1,109,668
----------------- -------------
Net increase (decrease) in net assets resulting from operations................. (4,605,922) 1,186,105
Beneficial interest transactions:
Contributions................................................................... 53,255,020 52,494,964
Withdrawals..................................................................... (13,605,425) (2,674,379)
----------------- -------------
Net increase from beneficial interest transactions................................ 39,649,595 49,820,585
----------------- -------------
Total increase in net assets...................................................... 35,043,673 51,006,690
Net assets:
Beginning of period............................................................. 51,106,790 100,100
----------------- -------------
End of period................................................................... $ 86,150,463 $ 51,106,790
----------------- -------------
----------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-15
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
MAY 31, 1994
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1995 OPERATIONS) TO
(UNAUDITED) OCTOBER 31, 1994
----------------- ------------------
<S> <C> <C>
Ratios and supplemental data:
Net assets, end of period (in 000's)........................................................ $ 86,150 $ 51,107
Ratio of net investment income to average net assets........................................ 1.32%(a) 1.44%(a)
Ratio of operating expenses to average net assets:
With expense reduction (Note 1)........................................................... 0.93%(a) 1.17%(a)
Without expense reduction................................................................. 0.97%(a) --%(a)
Portfolio turnover rate..................................................................... 47%(a) 18%
<FN>
- ----------------
(a) Annualized.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-16
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
NOTES TO
FINANCIAL STATEMENTS
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Global Infrastructure Portfolio ("Portfolio") is organized as a New York Trust
and is registered under the Investment Company Act of 1940, as amended ("1940
Act"), as a diversified, open-end management investment company. The following
is a summary of significant accounting policies consistently followed by the
Portfolio in the preparation of the financial statements. The policies are in
conformity with generally accepted accounting principles.
(A) PORTFOLIO VALUATION
The Portfolio calculates the net asset value of and completes orders to purchase
or repurchase Portfolio shares of beneficial interest on each business day, with
the exception of those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded, or in the principal over-the-counter 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. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by G.T. Capital Management,
Inc. ("G.T. Capital") to be the primary market.
Fixed income investments are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for investments of comparative maturity, quality and type; however, when G.T.
Capital deems it appropriate, prices obtained for the day of valuation from a
bond pricing service will be used. Short-term investments with a maturity of 60
days or less are valued at amortized cost adjusted for foreign exchange
translation and market fluctuation, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Portfolio's Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Portfolio's Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Portfolio are maintained in U.S. dollars. The
market values of foreign securities, currency holdings, and other assets and
liabilities are recorded in the books and records of the Portfolio after
translation to U.S. dollars based on the exchange rates on that day. The cost of
each security is determined using historical exchange rates. income and
withholding taxes are translated at prevailing exchange rates when earned or
incurred.
The Portfolio does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss from
investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Portfolio's books and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains or losses arise from
changes in the value of assets and liabilities other than investments in
securities at period end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Portfolio, it is the
Portfolio's policy to always receive, as collateral, United States government
securities or other high quality debt securities of which the value, including
accrued interest, is at least equal to the amount to be repaid to the Portfolio
under each agreement at its maturity.
F-17
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Portfolio as an unrealized gain or loss. When
the Forward Contract is closed, the Portfolio records a realized gain or loss
equal to the difference between the value at the time it was opened and the
value at the time it was closed. Forward Contracts involve market risk in excess
of the amounts shown in the Portfolio's "Statement of Assets and Liabilities".
The Portfolio could be exposed to risk if a counterparty is unable to meet the
terms of the contract or if the value of the currency changes unfavorably. The
Portfolio may enter into Forward Contracts in connection with planned purchases
or sales of securities, or to hedge against adverse fluctuations in exchange
rates between currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When the Portfolio writes a call or put option, an amount equal to the premium
received is included in the Portfolio's "Statement of Assets and Liabilities" as
an asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current market value of the option.
The current market value of an option listed on a traded exchange is valued at
its last bid price, or in the case of an over-the-counter option, is valued at
the average of the last bid prices obtained from brokers. If an option expires
on its stipulated expiration date or if the Portfolio enters into a closing
purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. The Portfolio can write options
only on a covered basis, which, for a call, requires that the Portfolio hold the
underlying security and, for a put, requires the Portfolio to set aside cash,
U.S. government securities or other liquid, high-grade debt securities in an
amount not less than the exercise price or otherwise provide adequate cover at
all times while the put option is outstanding. The Portfolio may use options to
manage its exposure to the stock market and fluctuations in currency values or
interest rates.
The premium paid by the Portfolio for the purchase of a call or put option is
included in the Portfolio's "Statement of Assets and Liabilities" as an
investment and subsequently "marked-to-market" to reflect the current market
value of the option. If an option which the Portfolio has purchased expires on
the stipulated expiration date, the Portfolio realizes a loss in the amount of
the cost of the option. If the Portfolio enters into a closing sale transaction,
the Portfolio realizes a gain or loss, depending on whether proceeds from the
closing sale transaction are greater or less than the cost of the option. If the
Portfolio exercises a call option, the cost of the securities acquired by
exercising the call is increased by the premium paid to buy the call. If the
Portfolio exercises a put option, it realizes a gain or loss from the sale of
the underlying security, and the proceeds from such sale are decreased by the
premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Portfolio may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Portfolio may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Portfolio may not be able to enter into a closing transaction because of an
illiquid secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Portfolio is required to pledge to the broker an amount of cash or securities
equal to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Portfolio agrees to receive
from or pay to the broker an amount of cash equal to the daily fluctuation in
value of the contract. Such receipts or payments are known as "variation margin"
and are recorded by the Portfolio as unrealized gains or losses. When the
contract is closed, the Portfolio records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed. The potential risk to the Portfolio is that the
change in value of the underlying securities may not correlate to the change in
value of the contracts. The Portfolio may use futures contracts to manage its
exposure to the stock market and to fluctuations in currency values or interest
rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The
F-18
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
cost of securities sold is determined on a first-in, first-out basis, unless
otherwise specified. Dividends are recorded on the ex-dividend date. Interest
income is recorded on the accrual basis. Where a high level of uncertainty
exists as to its collection, income is recorded net of all withholding tax with
any rebate recorded when received. The Portfolio may trade securities on other
than normal settlement terms. This may increase the risk if the other party to
the transaction fails to deliver and causes the Portfolio to subsequently invest
at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At April 30, 1995, stocks with an aggregate value of approximately $8,477,586
were on loan to brokers. The loans were secured by cash collateral of
$8,878,300. For international securities, cash collateral is received by the
Portfolio against loaned securities in an amount at least equal to 105% of the
market value of the loaned securities at the inception of each loan. This
collateral must be maintained at not less than 103% of the market value of the
loaned securities during the period of the loan. For domestic securities, cash
collateral is received by the Portfolio against loaned securities in an amount
at least equal to 102% of the market value of the loaned securities at the
inception of each loan. This collateral must be maintained at not less than 100%
of the market value of the loaned securities during the period of the loan. For
the period ended April 30, 1995, the Portfolio received $13,029 of income from
securities lending which were used to reduce the Portfolio's custodian fees.
(I) TAXES
It is the policy of the Portfolio to meet the requirements of the Internal
Revenue Code of 1986, as amended ("Code"). Therefore, no provision has been made
for Federal taxes on income, capital gains, or unrealized appreciation of
securities held.
(J) DEFERRED ORGANIZATIONAL EXPENSES
Expenses incurred by the Portfolio in connection with its organization, its
registration with the Securities and Exchange Commission and with various states
and the initial public offering of its shares aggregated $25,000. These expenses
are being amortized on a straightline basis over a five-year period.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Portfolio's investments in emerging market
countries may involve greater risks than investments in more developed markets
and the price of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
In addition, the Portfolio may focus its investments in certain related
infrastructure industries, subjecting the Portfolio to greater risk than a fund
that is more diversified.
(L) INDEXED SECURITIES
The Portfolio may invest in indexed securities whose value is linked either
directly or indirectly to changes in foreign currencies, interest rates,
equities, indices, or other reference instruments. Indexed securities may be
more volatile than the reference instrument itself, but any loss is limited to
the amount of the original investment.
(M) RESTRICTED SECURITIES
The Portfolio is permitted to invest in privately placed restricted securities.
These securities may be resold in transactions exempt from registration or to
the public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.
2. RELATED PARTIES
G.T. Capital is the Portfolio's investment manager and administrator. The
Portfolio pays investment management and administration fees to G.T. Capital at
the annualized rate of 0.725% on the first $500 million of average daily net
assets of the Portfolio; 0.70% on the next $500 million; 0.675% on the next $500
million; and 0.65% on amounts thereafter. These fees are computed daily and paid
monthly.
The Portfolio pays each of its Trustees who is not an employee, officer or
director of G.T. Capital, G.T. Global Financial Services, Inc. or G.T. Global
Investor Services, Inc. $500 per year plus $150 for each meeting of the board or
any committee thereof attended by the Trustees.
At April 30, 1995, all of the shares of beneficial interest of the Portfolio
were owned either by G.T. Global Infrastructure Fund or G.T. Capital.
3. PURCHASES AND SALES OF SECURITIES
For the period ended April 30, 1995, purchases and sales of investment
securities by the Portfolio, other than short-term investments, aggregated
$44,572,722 and $14,433,257, respectively. There were no purchases or sales of
U.S. government obligations by the Portfolio for the period ended April 30,
1995.
F-19
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
NOTES
- --------------------------------------------------------------------------------
<PAGE>
G.T. GLOBAL INFRASTRUCTURE 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 MUTUAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL
G.T. GLOBAL DIRECTLY AT 1-800-824-1580. THE PROSPECTUS CONTAINS MORE
COMPLETE INFORMATION, INCLUDING CHARGES, EXPENSES AND RISKS. INVESTORS
SHOULD READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
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
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 INFRASTRUCTURE 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
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
[LOGO]
G.T. GLOBAL FINANCIAL SERVICES
FIFTY CALIFORNIA STREET, 27TH FLOOR
SAN FRANCISCO, CALIFORNIA 94111
DATED MATERIAL
PLEASE EXPEDITE
