<PAGE>
G.T. CAPITAL
[LOGO]
TWENTY-FIVE
YEARS OF
PROVIDING
ACCESS TO
GLOBAL MARKETS
/ /
G.T. GLOBAL
NATURAL
RESOURCES
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 Natural Resources Fund seeks long-term capital growth by
investing all of its investable assets in the Global Natural Resources
Portfolio. The Portfolio, in turn, primarily invests in equity securities of
companies throughout the world that own, explore or develop natural resources
including but not limited to ferrous and non-ferrous metals, strategic metals
and precious metals, chemicals, forest products, foodstuffs, refined products
including steel, and other basic commodities, or that supply goods and services
to such companies.
PERFORMANCE REVIEW
The Fund's total return for the six months ending April 30, 1995 was -8.71% for
class A shares (-13.05% including the effect of the maximum 4.75% sales charge).
Class B shares had a total return of -8.94% (-13.49% including the effect of the
maximum 5% contingent deferred sales charge) for the same period. Total return
for the broad-based Morgan Stanley Capital International (MSCI) World Index(1)
was 4.82% over the same period. For additional performance information, please
see page 9.
The six months ending April 30, 1995 have been a particularly difficult time for
the Fund, with much of the investment period marked by a global selloff in
cyclical stocks. The Fund underperformed the index in part because the sectors
it invests in were particularly hard hit by short-term concerns for their growth
potential. The hardest hit areas included gold stocks, down 15%; mining, down
21%; and steel, down 32%. In addition, both chemical and forestry stocks fell
4%, while international integrated oil stocks remained flat. Energy stocks were
less affected but the Fund was underweighted in that area.
We believe the selloff reflected short-term concerns about continued global
economic growth, particularly in the United States. These investor concerns
appeared to outweigh rising profits for mining, chemical and forestry companies.
Despite the Fund's maintaining a defensive, high cash position for about half
the period, performance suffered.
- ------------------
(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>
In addition, while the Fund does not maintain a large exposure in the emerging
markets, holdings in South America and India (which ranged between 3% and 9%
over the period) suffered in the general sell-off of emerging markets following
the collapse of the Mexican market in January, 1995.
MARKET REVIEW
Because there is a strong positive correlation between global economic growth
and commodity prices, world industrial production is of utmost interest to
natural resource investors. Although world growth is unlikely to accelerate as
quickly as it did last year, we believe industrial production will remain steady
over the next 12 months. Interest rate increases appear to have slowed the U.S.
economy, but both Germany and Japan have cut their interest rates this year.
Growth from the Asia region continues to accelerate, representing a significant
proportion of global demand for natural resources.
We expect sustained economic growth to continue to fuel the demand for most
commodities into the current year. Demand looks robust even when compared with
last year's levels which were bolstered by restocking. Given the limited ability
of companies to add significantly to supply in the near term, we believe there
is a greater possibility of price increases of natural resources in response to
growing world demand. While we view the medium-term outlook for natural resource
prices as positive, it is important to look at each commodity group separately.
PRECIOUS METALS
The price of gold has been surprisingly steady since early 1994, trading in a
range between US$370 and US$400. While the supply and demand fundamentals point
to another production deficit this year, producer selling continues to cap any
strong rise in the gold price, subduing gold's outlook. Speculation regarding a
new technology that uses platinum to clean air pollutants has recently added
fuel to platinum's premium over the price of gold. We also consider the outlook
for platinum as generally positive due to the expected economic recovery in
Japan and increasing European demand from the regulatory requirement for
catalytic converters in 1996.
2
<PAGE>
OTHER METALS AND BULK COMMODITIES
After strong rises throughout 1994, base metal prices have retreated from their
highs, primarily as a result of speculative selling. Prices are still above
where they were one year earlier, while stockpiles on the London Metal Exchange
have continued to decline, with copper stockpiles particularly low. As yet,
there has not been a significant uptick in supply, and we expect prices to
resume their upward trend later in the year as fundamentals reassert themselves.
The outlook for the major bulk commodities, coal and iron ore, is positive as
the major producers continue to ship record tonnage in response to growing
demand.
ENERGY
The price of oil has been in an uptrend from the $14 lows reached 18 months ago.
We view near-term fundamentals as strong, with a solid 1.5% growth in demand
forecast for next year, and the Organization of Petroleum Exporting Countries
(OPEC) appears to be maintaining production discipline. We expect oil prices to
trade around the upper end of their $17-$22 trading range over the next 12
months. OPEC, however, is unlikely to allow prices to rise significantly above
this level as it would make non-OPEC reserves cheaper. U.S. gasoline prices,
which have rebounded from their lows following an unusually warm winter, are
expected to continue their seasonal trading pattern, which means an increase
with summer driving.
FOREST PRODUCTS
Since the trough in prices in April 1994, the turnaround in world demand has led
to a dramatic rise in forestry product prices: paper up 70%; pulp up 70%; liner
board up 60%; and newsprint up over 30%. While contract price increases for both
pulp and newsprint are being accepted, in our opinion, some of the high premiums
on the spot market are likely to narrow as some marginal operations,
particularly in Asia, reenter the market. As yet, there have been no major
increases in expansion announced and capacity is expected to remain tight.
Lumber prices have been lackluster after their well-publicized spike in
mid-1994. Although lumber supply remains limited for environmental reasons, we
believe slowing North American housing starts will dampen demand in the near
term.
3
<PAGE>
STEEL
The outlook for steel prices is mixed. In the U.S., spot prices of hot and cold
coil have weakened and some companies have recently announced a cut in prices of
flat-rolled steel. While the near-term outlook is clouded by declining domestic
automobile production, we believe a shift in world exports following the
devaluation of the U.S. dollar could change the picture. The European steel
mills were the largest exporter to the U.S. last year, yet higher domestic
demand and domestic prices will give them little incentive to maintain exports
at those same levels. European steel prices have finally caught up with prices
in other regions and we anticipate further rises, while Asian steel prices
remain firm.
CHEMICALS AND FERTILIZERS
Commodity chemical prices have recorded precipitous increases from lows reached
in the first quarter of 1994: styrene up 80%; propylene up 80%; and ethylene up
60%. Prices are close to their peaks and are not expected to rise much further.
There have been limited announcements of capacity expansions at this stage and
we expect prices to remain firm while capacity stays at the current tight
levels. Fertilizer prices have continued to increase since October 1994 due to
strong demand from China and India. Diammonium phosphate prices have risen over
15% and potash over 5%. Lower Soviet exports, strong U.S. demand and higher
application rates from farmers have underpinned stronger prices for nitrogen
fertilizers such as urea, up nearly 50%, and ammonia, up nearly 20%. In our
opinion, these factors should lead to continued rises in fertilizer prices.
PORTFOLIO STRATEGY AND OUTLOOK
In terms of the Fund's holdings, our emphasis currently is on international oil
companies; newsprint, pulp, paper and liner board companies; and chemical
companies. We are underweighted in gold and steel holdings.
We anticipate a healthy outlook for world growth, with industrial production
expected to remain robust. While there has been some increase in supply in
response to higher prices, commodity markets continue to tighten as demand
grows. Based on fundamentals, our outlook for equities in the resources
industries is positive over the next 12 months.
4
<PAGE>
Because prices are so high, we expect companies involved in forest products
(other than lumber), chemicals, base metals and oil to generate strong cash
flows over the next few years. While some companies need to reduce debt, others
are looking to expand their operations to maintain growth. However, we hope
previous experience has taught these companies that large industry-wide
expansion at this stage of the cycle is the wrong decision. Instead, we expect
to see an increase in share buybacks as well as takeover and merger activity
over the coming year.
Commodity selection remains important. Over the next year, we believe commodity
prices likely to remain firm are those where capacity utilization is the most
constricted, such as the oil and forestry industries. In our view, demand in
basic commodities such as copper should also remain healthy in the face of
sustained growth in world industrial production. In addition, we believe the
share prices of the mining and chemical companies will recover as earnings
continue to surprise on the upside. Across all industries the focus will
continue to be on those companies that are cutting costs and are likely to
deliver underlying growth, either through expansion of existing operations or
acquisitions.
CHRISTIAN WIGNALL CHARLES WALL
CHIEF INVESTMENT OFFICER PORTFOLIO MANAGER
GLOBAL EQUITIES SYDNEY
SAN FRANCISCO DEREK WEBB
PORTFOLIO MANAGER
SAN FRANCISCO
MAY 30, 1995
G.T. GLOBAL NATURAL RESOURCES FUND
5
<PAGE>
KEY PORTFOLIO HOLDINGS*
BRITISH PETROLEUM (BP) UK
British Petroleum is an international integrated oil company based in the UK. We
expect two-thirds of operating profits to be derived from oil exploration and
production, one-quarter from refining and marketing and the balance from
chemicals. Although BP is now three years into its restructuring, We think
profits should be underpinned by further cost-cutting and productivity
improvements. Except for the dividend yield, the company offers better value
than its peers.
REPSOL SPAIN
Repsol is the largest oil company in Spain and has a monopoly in refining and
marketing throughout most of the country. Refining and marketing make up half of
earnings, oil exploration and production make up one-third, and natural gas
distribution and chemicals the balance. We consider Repsol's valuation
attractive because it is one of the cheapest of the European oil companies yet
offers the highest return on equity. We expect earnings to be bolstered by a
turnaround in refining and marketing margins, which should improve with the
recovery in the Spanish economy. Repsol's other divisions are also expected to
deliver solid earnings growth.
MOBIL U.S.
Mobil is an international integrated oil company based in the U.S. Operations in
exploration and production represent half of earnings, refining and marketing
one-quarter and chemicals one-quarter. We expect the company's earnings to be
underpinned by further restructuring and cost-cutting, strong profits from the
chemical division and solid prospects from the oil exploration and production
division. The company's CEO has stated he wants to increase earnings by 40% over
the next three years, exclusive of any improvement in oil or chemical prices.
MO OCH DOMSJOE AB (MODO) SWEDEN
MoDo is a Swedish forest products company. Just under half the company's profits
are derived from paper, with the balance coming from liner board, newsprint,
pulp and lumber. The company has gained a competitive edge as a low-cost
producer with the substantial devaluation of the Swedish krona and we believe
MoDo's profits should benefit from improved prices for forestry products. The
company has managed to reduce debt and is among the cheapest forest product
companies in Europe.
- ------------------
* There can be no assurance that the Fund will continue to hold these or any
other securities mentioned in this report.
6
<PAGE>
OCCIDENTAL PETROLEUM U.S.
More than two-thirds of this international chemical and oil company's revenues
are from chemicals, with the balance from petroleum and natural gas
transmission. We view Occidental Petroleum as positioned to benefit from higher
prices for ethylene and caustic soda, both of which have risen sharply since
early 1994. Petroleum production is growing and the pipeline business appears
solid. Strong cash flows generated from chemical earnings should allow the
company to reduce debt.
REYNOLDS METALS U.S.
Reynolds is an integrated aluminum producer that has become the third largest
can maker in the U.S. The company has also maintained its strong position with
the automobile industry. We expect Reynolds earnings to benefit from a recovery
in aluminium prices, which fell in early 1995 after profit-taking by speculative
investors. We also expect Reynolds to grow its business worldwide, particularly
in the automobile industry as aluminium increases its penetration into motor
vehicle parts.
ANADARKO PETROLEUM U.S.
Anadarko is an international oil exploration and production company based in the
U.S. Anadarko's oil reserves are primarily located in the mid-continental U.S.,
the Gulf of Mexico and Algeria. We expect Anadarko's production to double over
the next five years from existing reserves. At the same time, reserves are
expected to grow strongly from exploration efforts in Algeria and the Gulf of
Mexico.
ST. LAURENT PAPERBOARD CANADA
St. Laurent is a Canadian forest products company. More than 80% of earnings
come from liner board, with food board making up the balance. Besides benefiting
from any further improvements in liner board prices, we think St. Laurent's
profits will be supported by cost-cutting including lower fiber costs through
the use of sawdust, reduction in labor and lower energy costs with new
hydroelectric power.
ZAPOPAN AUSTRALIA
Zapopan is a medium-sized gold producer with what we consider an attractive
valuation compared to similar-sized companies. We expect the company's gold
output is expected to grow significantly over the next three years and
exploration results from the central desert area are promising. Pegasus Gold, a
North
7
<PAGE>
American-based gold producer, owns 55% of Zapopan and has made a takeover offer
for the balance.
LONRHO UK
Lonrho is a diversified resource house whose key assets include mining, hotels
and assorted agricultural and industrial businesses. Though Lonrho is based in
the UK, many of its assets are in Africa. Lonrho has traded at a significant
discount to the value of its underlying assets for some time, but we expect
changes at the top management level to produce a consolidation in the company's
diverse holdings and a turnaround in the profit performance of its wholly owned
interests.
8
<PAGE>
G.T. GLOBAL NATURAL RESOURCES FUND
PORTFOLIO SUMMARY
PERFORMANCE SUMMARY
THE CHART AT LEFT SHOWS THE PERFORMANCE OF THE G.T. GLOBAL
NATURAL RESOURCES FUND CLASS A SHARES SINCE THE FUND'S INCEPTION VERSUS THE MSCI
WORLD INDEX. THIS REPRESENTS A CUMULATIVE RETURN OF -5.59%. 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
Natural
Resources
Month Fund MSCI World
<S> <C> <C>
05/31/94 9,525 10,000
06/30/94 9,358 9,974
07/31/94 9,658 10,165
08/31/94 10,142 10,473
09/30/94 10,475 10,200
10/31/94 10,342 10,492
11/30/94 9,783 10,039
12/31/94 9,691 10,138
01/31/95 9,098 9,987
02/28/95 8,989 10,135
03/31/95 9,023 10,626
04/30/95 9,441 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* -0.89% -5.59%
CLASS B* -1.38% -6.31%
<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>
SECTOR ALLOCATION OF NET
ASSETS AS OF APRIL 30, 1995 GEOGRAPHIC ALLOCATION OF NET ASSETS AS OF APRIL 30, 1995
<S> <C> <C> <C>
Oil 22.7% North America 54.1%
Metals-Non Ferrous 16.2% Europe 27.4%
Forest Products 11.0% Asia/Pacific 7.5%
Gold 8.3% Latin America 7.4%
Materials/Basic Industry 8.3% Africa 3.6%
Commodity Chemicals 4.0%
Consumer Non-Durables 3.6%
Multi Industry Miscellaneous 3.5%
Gas 3.0%
Coal 2.8%
Capital Goods 1.9%
Energy 1.2%
Short-Term & Other 13.5%
</TABLE>
ALLOCATIONS WILL CHANGE BASED ON CURRENT MARKET CONDITIONS.
9
<PAGE>
/ /
G.T. GLOBAL
NATURAL
RESOURCES
FUND
/ /
FINANCIAL
STATEMENTS
<PAGE>
G.T. GLOBAL NATURAL RESOURCES FUND
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets:
Investments in Global Natural Resources Portfolio (cost $29,800,893) (Note 1)......................... $30,699,161
Receivable for expense reimbursement (Note 2)......................................................... 272,771
Receivable for Fund shares sold....................................................................... 140,927
Unamortized organizational expenses (Note 1).......................................................... 45,856
-----------
Total assets.......................................................................................... 31,158,715
-----------
Liabilities:
Payable for Fund shares repurchased................................................................... 147,005
Payable for administration fees (Note 2).............................................................. 35,621
Payable for professional fees......................................................................... 31,201
Payable for service and distribution expenses (Note 2)................................................ 18,387
Payable for printing and postage expenses............................................................. 16,576
Payable for registration fees......................................................................... 6,862
Payable for fund accounting fees...................................................................... 5,377
Payable for Directors' fees and expenses (Note 2)..................................................... 930
Payable for transfer agent fees (Note 2).............................................................. 671
Accrued expenses...................................................................................... 874
-----------
Total liabilities..................................................................................... 263,504
-----------
Net assets.............................................................................................. $30,895,211
-----------
-----------
Class A:
Net asset value and redemption price per share
($15,846,493 DIVIDED BY 1,402,915 shares outstanding).................................................. $ 11.30
-----------
-----------
Maximum offering price per share
(100/95.25 of $11.30)*................................................................................. $ 11.86
-----------
-----------
Class B:+
Net asset value and offering price per share
($15,048,718 DIVIDED BY 1,338,012 shares outstanding).................................................. $ 11.25
-----------
-----------
Net assets consist of:
Paid in capital (Note 3).............................................................................. $32,944,125
Undistributed net investment income................................................................... 49,553
Accumulated net realized loss on investments and foreign currency transactions -- Global Natural
Resources Portfolio.................................................................................. (2,996,735)
Net unrealized depreciation on translation of assets and liabilities in foreign currencies -- Global
Natural Resources Portfolio.......................................................................... (37,355)
Net unrealized appreciation of investments -- Global Natural Resources Portfolio...................... 935,623
-----------
Total -- representing net assets applicable to capital shares outstanding............................. $30,895,211
-----------
-----------
<FN>
- ----------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net cost value per share less any
applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-1
<PAGE>
G.T. GLOBAL NATURAL RESOURCES FUND
STATEMENT OF OPERATIONS
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income:
Interest income -- Global Natural Resources Portfolio................................................ $ 246,094
Dividend income -- Global Natural Resources Portfolio................................................ 142,263
------------
Total investment income.............................................................................. 388,357
------------
Expenses:
Expenses -- Global Natural Resources Portfolio....................................................... 155,329
Registration fees.................................................................................... 122,100
Service and distribution expenses (Note 2)
Class A.............................................................................. $ 35,024
Class B.............................................................................. 72,435 107,459
------------
Printing and postage expenses........................................................................ 75,650
Transfer agent fees (Note 2)......................................................................... 63,787
Legal fees........................................................................................... 50,143
Administration fees (Note 2)......................................................................... 35,621
Audit fees........................................................................................... 26,150
Directors' fees and expenses (Note 2)................................................................ 6,930
Fund accounting fees................................................................................. 3,165
Amortization of organizational expenses (Note 1)..................................................... 1,298
Other................................................................................................ 3,310
------------
Total expenses before expense reimbursement.......................................................... 650,942
Less expense reimbursement (Note 2)................................................................ (272,771)
------------
Total net expenses................................................................................... 378,171
------------
Net investment income.................................................................................. 10,186
------------
Net realized and unrealized gain (loss) on investments and foreign currencies:
Net realized loss on investments -- Global Natural Resources Portfolio................. (2,938,604)
Net realized gain on foreign currency transactions -- Global Natural Resources
Portfolio............................................................................. 72,128
------------
Net realized loss during the period................................................................ (2,866,476)
Net change in unrealized depreciation on translation of assets and liabilities in
foreign currencies -- Global Natural Resources Portfolio.............................. (32,616)
Net change in unrealized appreciation of investments -- Global Natural Resources
Portfolio............................................................................. 257,032
------------
Net unrealized appreciation during the period...................................................... 224,416
------------
Net realized and unrealized loss on investments and foreign currencies -- Global Natural Resources
Portfolio............................................................................................. (2,642,060)
------------
Net decrease in net assets resulting from operations................................................... $ (2,631,874)
------------
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
G.T. GLOBAL NATURAL RESOURCES FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MAY 31, 1994
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1995 OPERATIONS) TO
(UNAUDITED) OCTOBER 31, 1994
----------------- ----------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income........................................................................ $ 10,186 $ 106,264
Net realized loss on investments and foreign currency transactions -- Global Natural
Resources Portfolio......................................................................... (2,866,476) (130,259)
Net change in unrealized depreciation on translation of assets and liabilities in foreign
currencies -- Global Natural Resources Portfolio............................................ (32,616) (4,739)
Net change in unrealized appreciation (depreciation) of investments -- Global Natural
Resources Portfolio......................................................................... 257,032 678,591
----------------- ----------------
Net increase (decrease) in net assets resulting from operations.............................. (2,631,874) 649,857
Class A:
Distributions to shareholders from (Note 1):
Net investment income........................................................................ (36,529) --
Class B:
Distributions to shareholders from (Note 1):
Net investment income........................................................................ (30,368) --
Capital share transactions (Note 3):
Increase from shares sold and reinvested..................................................... 18,962,600 34,666,146
Decrease from shares repurchased............................................................. (13,569,027) (7,215,594)
----------------- ----------------
Net increase from capital share transactions................................................. 5,393,573 27,450,552
----------------- ----------------
Total increase in net assets................................................................... 2,694,802 28,100,409
Net assets:
Beginning of period.......................................................................... 28,200,409 100,000
----------------- ----------------
End of period................................................................................ $ 30,895,211 $ 28,200,409
----------------- ----------------
----------------- ----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
G.T. GLOBAL NATURAL RESOURCES 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 (COMMENCEMENT SIX MONTHS (COMMENCEMENT
ENDED APRIL 30, OF OPERATIONS) ENDED APRIL 30, OF OPERATIONS)
1995 TO OCTOBER 31, 1995 TO OCTOBER 31,
(UNAUDITED) 1994 (UNAUDITED) 1994
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period......................... $ 12.41 $ 11.43 $ 12.38 $ 11.43
--------------- --------------- --------------- ---------------
Income from investment operations:
Net investment income (loss)............................... 0.01 0.06* (0.02) 0.03*
Net realized and unrealized gain (loss) on investments..... (1.09) 0.92 (1.09) 0.92
--------------- --------------- --------------- ---------------
Net increase (decrease) in net asset value resulting from
investment operations....................................... (1.08) 0.98 (1.11) 0.95
--------------- --------------- --------------- ---------------
Distributions:
Net investment income...................................... (0.03) -- (0.02) --
--------------- --------------- --------------- ---------------
Total distributions...................................... (0.03) -- (0.02) --
--------------- --------------- --------------- ---------------
Net asset value, end of period............................... $ 11.30 $ 12.41 $ 11.25 $ 12.38
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
Total investment return (c).................................. (8.71)%(b) 8.57%(b) (8.94)%(b) 8.31%(b)
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
Ratios and supplemental data:
Net assets, end of period (in 000's)......................... $15,846 $14,797 $15,049 $13,404
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital
Management, Inc. (Note 2)................................. 0.33%(a) 2.63%(a) (0.17)%(a) 2.13%(a)
Without reimbursement by G.T. Capital
Management, Inc........................................... (1.59)%(a) 0.65%(a) (2.09)%(a) 0.15%(a)
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital
Management, Inc. (Note 2)................................. 2.40%(a) 2.40%(a) 2.90%(a) 2.90%(a)
Without reimbursement by G.T. Capital
Management, Inc........................................... 4.32%(a) 4.38%(a) 4.82%(a) 4.88%(a)
<FN>
- ----------------
(a) Annualized.
(b) Not annualized.
(c) Total investment return does not include sales charges.
* Before reimbursement by G.T. Capital Management, Inc., the net investment
income per share would have been reduced by $0.04 for each class.
</TABLE>
F-4
<PAGE>
G.T. GLOBAL NATURAL RESOURCES FUND
NOTES TO
FINANCIAL STATEMENTS
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global Natural Resources 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 Natural Resources 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
$103,533 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 items) 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
$13,450 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 NATURAL RESOURCES 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 $125,843. 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 NATURAL RESOURCES 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 Financial Services Fund;
200,000,000 were classified as shares of G.T. Global Infrastructure 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................................................................. 962,740 $10,808,926 1,647,315 $20,040,497
Shares issued in connection with reinvestment of distributions.............. 2,663 30,340 -- --
--------- ----------- --------- -----------
965,403 10,839,266 1,647,315 20,040,497
Shares repurchased.......................................................... (755,011) (8,522,898) (459,166) (5,648,929)
--------- ----------- --------- -----------
Net increase................................................................ 210,392 $ 2,316,368 1,188,149 $14,391,568
--------- ----------- --------- -----------
--------- ----------- --------- -----------
<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................................................................. 704,081 $ 8,098,436 1,205,189 $14,625,649
Shares issued in connection with reinvestment of distributions.............. 2,190 24,898 -- --
--------- ----------- --------- -----------
706,271 8,123,334 1,205,189 14,625,649
Shares repurchased.......................................................... (450,957) (5,046,129) (126,865) (1,566,665)
--------- ----------- --------- -----------
Net increase................................................................ 255,314 $ 3,077,205 1,078,324 $13,058,984
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</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 NATURAL RESOURCES 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>
Oil (22.7%)
- ----------------------------
British Petroleum Co.,
PLC...................... UK 190,100 $ 1,369,442 4.4
Repsol S.A. - ADR(INVERTED
TRIANGLE)................ SPN 42,300 1,353,600 4.3
Mobil Corp................ US 13,600 1,290,300 4.2
Norsk Hydro AS:........... NOR -- -- 4.0
Common.................. -- 15,175 617,474 --
ADR(INVERTED
TRIANGLE).............. -- 15,000 601,875 --
Anadarko Petroleum
Corp..................... US 28,000 1,151,500 3.8
Shell Transport & Trading
Co., PLC................. UK 43,000 509,466 1.7
Cultus Petroleum
N.L.(CHECK MARK)......... AUSL 249,500 98,028 0.3
------------
6,991,685
------------
Metals - Non-Ferrous (16.2%)
- ----------------------------
Reynolds Metals Co........ US 23,250 1,171,219 3.8
Easco, Inc................ US 62,900 974,950 3.2
Asarco, Inc............... US 35,000 953,750 3.1
Trelleborg AB "B" Free.... SWDN 52,400 689,956 2.2
Grupo Mexico S.A. "B"..... MEX 130,000 414,430 1.3
Hindalco Industries Ltd. -
GDR(INVERTED TRIANGLE)
(CHECK MARK)............. IND 11,000 291,500 0.9
Industrias Penoles S.A.
"CP"(CHECK MARK)......... MEX 80,000 204,027 0.7
Bindura Nickel............ ZBBW 172,500 201,921 0.7
Compass Resources
N.L.(CHECK MARK)......... AUSL 200,000 78,580 0.3
------------
4,980,333
------------
Forest Products (11.0%)
- ----------------------------
Mo Och Domsjoe AB "B"
Free..................... SWDN 22,300 1,238,736 4.0
St Laurent Paperboard,
Inc.(CHECK MARK)......... CAN 80,700 1,150,524 3.7
Kimmene Oy................ FIN 33,000 991,200 3.3
------------
3,380,460
------------
Gold (8.3%)
- ----------------------------
Zapopan NL(CHECK MARK).... AUSL 790,000 1,109,357 3.6
Acacia Resources
Ltd.(CHECK MARK)......... AUSL 300,000 591,531 1.9
Cambior, Inc.............. CAN 43,400 494,996 1.6
Randgold and Exploration
Co., Ltd................. SAFR 120,000 356,551 1.2
------------
2,552,435
------------
Materials/Basic Industry
(8.3%)
- ----------------------------
Dow Chemical Co........... US 14,000 998,340 3.2
CHEMICALS
Cytec Industries(CHECK
MARK).................... US 24,100 876,638 2.9
CHEMICALS
De Beers Centenary AG -
Linked Unit.............. SAFR 18,400 512,380 1.7
MISC. MATERIALS &
COMPONENTS
Broken Hill Proprietary
Co., Ltd................. AUSL 10,000 145,518 0.5
MISC. MATERIALS &
COMPONENTS
------------
2,532,876
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-8
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
<TABLE>
<CAPTION>
% of Net
Market Assets
Equity Investments Country Shares Value (DELTA)
- ---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Commodity Chemicals (4.0%)
- ----------------------------
Occidental Petroleum
Corp..................... US 53,000 $ 1,219,000 4.0
------------
Consumer Non-Durables (3.6%)
- ----------------------------
RJR Nabisco Holdings
Corp..................... US 27,080 741,315 2.4
TOBACCO
Pioneer Hi-Bred
International, Inc....... US 10,000 375,000 1.2
FOOD
------------
1,116,315
------------
Multi Industry/Miscellaneous
(3.5%)
- ----------------------------
Lonrho PLC................ UK 400,000 1,062,460 3.5
------------
CONGLOMERATE
Gas (3.0%)
- ----------------------------
Northstar Energy
Corp.(CHECK MARK)........ CAN 70,000 630,979 2.1
Penn West Petroleum
Ltd.(CHECK MARK)......... CAN 60,000 286,976 0.9
------------
917,955
------------
Coal (2.8%)
- ----------------------------
Zeigler Coal Holding
Co....................... US 75,000 853,125 2.8
------------
Capital Goods (1.9%)
- ----------------------------
Harnischfeger Industries,
Inc...................... US 20,000 590,000 1.9
------------
MACHINERY & ENGINEERING
Energy (1.2%)
- ----------------------------
Mullen Trucking Ltd.(CHECK
MARK).................... CAN 60,400 361,111 1.2
ENERGY EQUIPMENT &
SERVICES
------------ -----
Total Equity Investments
(cost $25,622,132)......... $ 26,557,755 86.5
------------ -----
------------ -----
<CAPTION>
% of Net
Principal Market Assets
Short-Term Investments Currency Amount Value (DELTA)
- ---------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Treasury Bills (5.4%)
- ----------------------------
Mexico (5.4%)
- ----------------------------
Mexican Tesobonos,
15.63% due 11/16/95.... USD 1,025,000 $ 936,010 3.0
Mexican Tesobonos,
13.46% due 2/15/96..... USD 483,000 430,450 1.4
Mexican Tesobonos,15.05%
due 2/8/96............. USD 350,000 308,441 1.0
------------
Total Treasury Bills (cost
$1,674,901)................ 1,674,901
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-9
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
<TABLE>
<CAPTION>
% of Net
Market Assets
Short-Term Investments Value (DELTA)
- ---------------------------- ------------ -------------
Repurchase Agreement (2.4%)
- ----------------------------
<S> <C> <C> <C> <C>
United States (2.4%)
- ----------------------------
Dated April 28, 1995
with State Street Bank
& Trust Company, due
May 1, 1995, for an
effective yield of
5.89% collateralized by
$755,000 Federal Home
Loan Bank, 4.4% due
4/16/98 (market value
$743,060, including
interest).
(cost $724,355)........ $ 724,355 2.4
------------ -----
Total Short-Term Investments
(cost $2,399,256).......... 2,399,256 7.8
------------ -----
Total Investments (cost
$28,021,388)*.............. 28,957,011 94.3
Other Assets and
Liabilities................ 1,742,250 5.7
------------ -----
Net Assets.................. $ 30,699,261 100.0
------------ -----
------------ -----
<FN>
-----------------
(DELTA) Percentages indicated are based on net assets of $30,699,261.
(CHECK MARK) Non-income producing security.
(INVERTED U.S. currency denominated.
TRIANGLE)
* For Federal income tax purposes, cost is $28,039,067 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 1,471,054
Unrealized depreciation: (553,110)
-------------
Net unrealized appreciation: $ 917,944
-------------
-------------
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at April 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets (DELTA)
----------------------------------
Country (Country Code/ Currency Code) Equity Short-Term Other Total
- -------------------------------------- ------ ---------- ----- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD).................. 6.6 6.6
Canada (CAN/CAD)...................... 9.5 9.5
Finland (FIN/FIM)..................... 3.3 3.3
India (IND/INR)....................... 0.9 0.9
Mexico (MEX/MXN)...................... 2.0 5.4 7.4
Norway (NOR/NOK)...................... 4.0 4.0
South Africa (S AFR/ZAR).............. 2.9 2.9
Spain (SPN/ESP)....................... 4.3 4.3
Sweden (SWDN/SEK)..................... 6.2 6.2
United Kingdom (UK/GBP)............... 9.6 9.6
United States (US/USD)................ 36.5 2.4 5.7 44.6
Zimbabwe (ZBBW/ZWD)................... 0.7 0.7
------ --- ----- -----
Total................................. 86.5 7.8 5.7 100
------ --- ----- -----
------ --- ----- -----
<FN>
- ----------------
(DELTA) Percentages indicated are based on net assets of $30,699,261.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-10
<PAGE>
GLOBAL NATURAL RESOURCES 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................................................................. 281,731 1.39962 05/23/95 $ 3,084
Deutsche Marks................................................................. 289,059 1.38766 05/30/95 803
------------- -------------
Total Contracts to Buy (Payable amount $566,903)............................... 570,790 3,887
------------- -------------
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 1.86%
Contracts to Sell:
- -------------------------------------------------------------------------------
Deutsche Marks................................................................. 614,029 1.48144 05/23/95 (40,262)
Deutsche Marks................................................................. 397,456 1.46539 05/30/95 (22,130)
Deutsche Marks................................................................. 289,876 1.37248 08/03/95 1,568
------------- -------------
Total Contracts to Sell (Receivable amount $1,240,537)......................... 1,301,361 (60,824)
------------- -------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 4.24%
Total Open Forward Foreign Currency Contracts, Net............................. $ (56,937)
-------------
-------------
- ----------------
See Note 1 to the financial statements.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-11
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $28,021,388) (Note 1)....................................... $28,957,011
U.S. currency.............................................................................
$ 395
Foreign currencies (cost $1,260,842)......................................................
1,262,113 1,262,508
----------
Receivable for securities sold (Note 1)............................................................... 3,279,034
Dividends receivable.................................................................................. 56,987
Unamortized organizational expenses (Note 1).......................................................... 22,260
Cash held as collateral for securities loaned (Note 1)................................................ 2,759,244
-----------
Total assets.......................................................................................... 36,337,044
-----------
Liabilities:
Payable for securities purchased...................................................................... 2,496,604
Payable for forward foreign currency contracts -- closed (Note 1)..................................... 146,892
Payable for investment management and administration fees (Note 2).................................... 102,093
Payable for open forward foreign currency contracts, net (Note 1)..................................... 56,937
Payable for printing and postage expenses............................................................. 15,555
Payable for professional fees......................................................................... 14,333
Payable for income distribution....................................................................... 8,489
Payable for custodian and fund accounting fees (Note 1)............................................... 7,845
Payable for Trustees' fees and expenses (Note 2)...................................................... 1,861
Accrued expenses...................................................................................... 27,930
Collateral for securities loaned (Note 1)............................................................. 2,759,244
-----------
Total liabilities..................................................................................... 5,637,783
-----------
Net assets.............................................................................................. $30,699,261
-----------
-----------
Net assets consist of:
Paid in capital....................................................................................... $32,427,388
Undistributed net investment income................................................................... 370,340
Accumulated net realized loss on investments and foreign currency transactions........................ (2,996,735)
Net unrealized depreciation on translation of assets and liabilities in foreign currencies............ (37,355)
Net unrealized appreciation of investments............................................................ 935,623
-----------
Total -- representing net assets applicable to shares of beneficial interest outstanding.............. $30,699,261
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-12
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
STATEMENT OF OPERATIONS
Six months ended April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income (Note 1):
Interest.............................................................................................. $ 246,094
Dividends............................................................................................. 142,263
-----------
Total investment income............................................................................... 388,357
-----------
Expenses:
Investment management and administration fees (Note 2)................................................ 102,092
Custodian and fund accounting fees (Note 1)........................................................... 17,018
Audit fees............................................................................................ 12,670
Printing and postage expenses......................................................................... 9,050
Legal fees............................................................................................ 8,620
Trustees' fees and expenses (Note 2).................................................................. 3,439
Amortization of organizational expenses (Note 1)...................................................... 630
Other................................................................................................. 1,810
-----------
Total expenses........................................................................................ 155,329
-----------
Net investment income................................................................................... 233,028
-----------
Net realized and unrealized gain (loss) on investments and foreign currencies (Note 1):
Net realized loss on investments......................................................... $(2,938,604)
Net realized gain on foreign currency transactions....................................... 72,128
-----------
Net realized loss during the period................................................................. (2,866,476)
Net change in unrealized depreciation on translation of assets and liabilities in foreign
currencies.............................................................................. (32,616)
Net change in unrealized appreciation of investments..................................... 257,032
-----------
Net unrealized appreciation during the period....................................................... 224,416
-----------
Net realized and unrealized loss on investments and foreign currencies.................................. (2,642,060)
-----------
Net decrease in net assets resulting from operations.................................................... $(2,409,032)
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-13
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED MAY 31, 1994
APRIL 30, 1995 (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) TO OCTOBER 31, 1994
----------------- -----------------------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income.......................................................... $ 233,028 $ 137,311
Net realized loss on investments and foreign currency transactions............. (2,866,476) (130,259)
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies......................................................... (32,616) (4,739)
Net change in unrealized appreciation of investments........................... 257,032 678,591
----------------- ------------
Net increase (decrease) in net assets resulting from operations................ (2,409,032) 680,904
Beneficial interest transactions:
Contributions.................................................................. 20,219,723 33,302,836
Withdrawals.................................................................... (14,061,169) (7,134,101)
----------------- ------------
Net increase from beneficial interest transactions............................. 6,158,554 26,168,735
----------------- ------------
Total increase in net assets..................................................... 3,749,522 26,849,639
Net assets:
Beginning of period............................................................ 26,949,739 100,100
----------------- ------------
End of period.................................................................. $ 30,699,261 $ 26,949,739
----------------- ------------
----------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-14
<PAGE>
GLOBAL NATURAL RESOURCES 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)
(UNAUDITED) TO OCTOBER 31, 1994
----------------- ---------------------------
<S> <C> <C>
Ratios and supplemental data:
Net assets, end of period (in 000's)............................................. $ 30,699 $ 26,950
Ratio of net investment income to average net assets............................. 1.65%(a) 3.47%(a)
Ratio of operating expenses to average net assets................................ 1.10%(a) 2.15%(a)
Portfolio turnover rate.......................................................... 281%(a) 137%
<FN>
- ----------------
(a) Annualized.
</TABLE>
F-15
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
NOTES TO
FINANCIAL STATEMENTS
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Global Natural Resources 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 fluctuations, 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 accrued 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.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy
F-16
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
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 holds
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 to 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 cost of securities sold is determined on a first-in,
first-
F-17
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
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 $2,686,432
were on loan to brokers. The loans were secured by cash collateral of
$2,759,244. 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 $438 of income from
securities lending which was used to offset the Portfolio's custody expenses.
(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 natural
resources 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 Natural Resources 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
$36,294,033 and $30,809,923, respectively. There were no purchases or sales of
U.S. government obligations by the Portfolio for the period ended April 30,
1995.
F-18
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
NOTES
- --------------------------------------------------------------------------------
<PAGE>
G.T. GLOBAL NATURAL RESOURCES 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 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
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
G.T. GLOBAL NATURAL RESOURCES FUND
[LOGO]
G.T. GLOBAL FINANCIAL SERVICES
FIFTY CALIFORNIA STREET, 27TH FLOOR
SAN FRANCISCO, CALIFORNIA 94111
DATED MATERIAL
PLEASE EXPEDITE
