<PAGE>
LGT ASSET MANAGEMENT
A PIONEER IN
INTERNATIONAL
MARKETS
GT GLOBAL
LATIN AMERICA
GROWTH FUND
ANNUAL REPORT
OCTOBER 31, 1995
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Report from the Fund
Managers and Key
Portfolio Holdings..... 1
Report of Independent
Accountants............ F-1
Financial Statements... F-2
</TABLE>
REPORT FROM THE FUND MANAGERS
The G.T. Latin America Growth Fund seeks capital appreciation by investing in
stocks and bonds issued by companies and governments in Latin American
countries.
PERFORMANCE REVIEW
The Fund's total return for the 12 months ended October 31, 1995, was -37.16%
for Class A shares (-40.15% including the maximum 4.75% sales charge). Total
return for Class B shares was -37.42% (-40.35% including the maximum effect of
the 5% contingent deferred sales charge). The Morgan Stanley Capital
International (MSCI) Emerging Latin America Index(1) returned -32.99% over the
same period. The index is not available for investment and does not include the
effects of sales charges and professional management fees. For more performance
information, please see page 9.
The Fund's underweighted position in Brazilian state companies in the first
quarter of 1995 accounted for most of the underperformance over the period. And
while the Fund also suffered relative to the index as a result of its holdings
in both Mexico and Brazil, it benefited from its holdings in Chile.
MARKET REVIEW
MEXICO
The Mexican Bolsa fell 56.2% in U.S. dollar terms over the 12 months ending
October 31, 1995. This period encompasses the devaluation of the Mexican peso in
December 1994, the subsequent rise in Mexican inflation to around 50% in 1995,
and a severe domestic recession. Gross domestic product (GDP) is estimated to
have fallen 5% by the end of 1995.
After the dramatic decline in stock prices during the first three months of
1995, virtually all markets in the region rebounded sharply during the summer
months, including Mexico. The rise in the Mexican market was driven by the
announcement in March of a package of government austerity measures and a deal
with the International Monetary Fund (IMF) and the United States to shore up the
country's external finances. By September, the country's onerous short-term
dollar debt had virtually been repaid.
Since the first quarter of 1995 the country has been running a trade surplus of
about US$700 million per month and the central bank has been trying to keep
monetary policy tight to bring down inflation. However, since September, the
peso
- --------------
(1) The MSCI Emerging Latin America Index is an arithmetic average, weighted by
market value, of companies listed in Argentina, Brazil, Chile, Colombia,
Mexico, Peru and Venezuela. The index, measured in U.S. dollars, has an
aggregate market capitalization of $361 billion and includes the effect of
reinvested dividends.
1
<PAGE>
has again fallen sharply against the dollar, causing another bout of weakness in
stock prices and a rise in interest rates to over 50% again.
BRAZIL
The Brazilian Bovespa Index lost 24.4% in U.S. dollar terms during the 12 months
ending October 31, 1995. During the first half of the period, Brazilian equities
fell in sympathy with a general decline in the Mexican market. During the
recovery in the spring and summer, market proxies and potential privatization
plays like Eletrobras(2) and Telebras led the rise; in fact, the broader FGV-100
Index, which includes only private sector companies, was virtually flat during
the period on very low volume. Thus, in our opinion, the rise in the Bovespa can
be attributed almost entirely to the recovery in sentiment following the crisis.
Meanwhile, after tightening credit conditions late in 1994 and early in 1995,
the economy has shown indications of a substantial slowdown since May, with
retail sales and industrial production down by double digits year-on-year by the
third quarter. Combined with increased protectionist measures, weak demand has
helped bring back the trade surpluses Brazil enjoyed until last year. The
exchange rate continues to anchor the domestic economy while Congress and the
president wrangle over fiscal and constitutional reforms.
CHILE
The Chilean stock market lost 9.9% in U.S. dollar terms over the 12 months
ending October 31, 1995. Chile's superior economic condition, a trade surplus, a
fiscal surplus, high savings and investment ratios, independence from foreign
capital, and entrepreneurial managements have protected it from the worst
fallout of the Mexican devaluation. The market did not fall as much during the
first half of the period and, like other stock markets in the region, has
benefited from the recovery of sentiment following the announcement of austerity
measures in Mexico and Argentina.
Meanwhile, Chile was benefiting from the confluence of two cycles: falling
inflation in 1994 allowed the central bank to start reducing interest rates late
last year; and strong prices for Chile's primary exports led to a boost in the
country's terms of trade and thus to net exports, as well as upward pressure on
the exchange rate. The effect of these two cycles was, in the end, a boost to
domestic liquidity and an acceleration in economic growth, which exceeded 7% by
the third quarter. Despite generally buoyant earnings, the stock market has
corrected rather
- --------------
(2) There can be no assurance the Fund held, holds, or will hold these or any
other securities mentioned in this report.
2
<PAGE>
sharply following concerns about the potential impact of a second gas pipeline
from Argentina on the profitability of Chile's listed electricity generators. In
addition, interest rates have started to rise as the markets have worried about
an overheating economy.
ARGENTINA
Argentine stocks fell 26.3% in U.S. dollar terms during the 12 months ending
October 31, 1995. Argentina suffered during the Mexican crisis as investors drew
parallels between the two countries and found Argentina running a large trade
deficit and depending on foreign capital to finance it. The Argentine
government, however, stood firm and the market rose in the summer after it
finally became clear that Argentina was not likely to resort to devaluation, as
had been considered likely at the beginning of March. Nonetheless, the reality
of deflation has begun to set in, with the resultant expectations for a long
period of slow economic growth beginning to work their way into stock prices.
Furthermore, a political dispute between President Menem and Economy Minister
Cavallo, the architect of Argentina's reform program, has led to speculation
about the eventual end of the Age of Cavallo and all the uncertainty that
engenders. Although foreign reserves and bank deposits have recovered a good
deal of their losses since the nadir of the crisis, the economy awaits a
resolution of the Cavallo question before any resumption of investment. By the
end of October, economic activity and tax collection remained below budget and
unemployment had crept up toward 20%.
PORTFOLIO STRATEGY
Subject to changes in circumstances, the Fund's general strategy is to:
(1) Underweight Brazil, where we expect continued high interest rates, weaker
than consensus growth and deteriorating profit margins due to an appreciating
currency and wages that are rising faster than productivity. The overall
macroeconomic situation continues to look precarious, with billions of dollars
of hot money from abroad leading to a substantial boost in foreign reserves that
could easily be reversed at the first sign of nervousness or falling interest
rates. Most companies report significant slowdowns in demand relative to the
boom period immediately following the implementation of the Real Plan. The risk
of our strategy is that progress on privatization and fiscal reform, which we
think will be unsatisfactory in the longer run, could boost the market in the
short run.
(2) Underweight Argentina, where capital inflow and capital formation, two
prerequisites for economic growth, are unlikely to resume until the Cavallo
question is resolved. We believe this means, ironically, that the economy is not
3
<PAGE>
going to revive unless Cavallo leaves, which is the only way the uncertainty
over his future can end. If and when he leaves, there is likely to be a great
deal of nervousness and probably some capital flight. The final outcome could be
either mildly bad or very damaging, depending on what happens next. In the best
case, if Cavallo stays for the next four years and some capital inflow resumes,
economic growth could also resume. The government still has a fiscal problem
this year and some considerable external debt amortizations next year. To
identify Argentina's competitive advantage in the world is a struggle. The
stabilization/privatization/
recovery story is largely over, with low inflation and low growth ahead.
(3) Overweight Mexico slightly. We believe the inevitable economic recovery is
going to be delayed until next year, as the banking system is unable to be a
source of credit given its current state. As a result, the Fund's exposure to
Mexican equities has been scaled back a bit in the last two months. The stock
market is certainly expensive on this year's earnings but when the recession
ends, we believe earnings should recover nicely. The only question is when.
Recent currency weakness and the resultant spike in interest rates have been
based on political worries rather than any fundamental change in Mexico's
economic situation. The trade surplus remains healthy ($900 million in the month
of September, equivalent to 3% of GDP), and fiscal and monetary policy remain
appropriately tight.
(4) Attempt to take advantage of the recent weakness in the Chilean stocks to
increase weightings there. This strategy reflects not only our fundamentally
positive outlook for the market, but also our strategy to increase the Fund's
exposure to investments outside of the region's "big three," Mexico, Argentina,
Brazil.
(5) Continue to reduce the number of holdings in the Fund. We are emphasizing
cash generative businesses able to fund their own growth, and we are looking to
increase our average holding period for stocks in this category. We have also
identified a handful of turnaround/special situations, though these will remain
a minority of the Fund.
OUTLOOK
Prospects for the region are muddied by uncertainty over the eventual success of
Argentina and Brazil to overcome deflationary pressures and resume growth
without resorting to devaluation. Furthermore, Peru seems to be headed down the
same road, with a burgeoning current account deficit and signs of slowing
growth. Another crisis in Latin America akin to the one we saw earlier this year
in the wake of the Mexican devaluation would clearly be very negative for
equities
4
<PAGE>
throughout the region. We remain doubtful that Argentina will meet investors'
expectations for economic performance in the medium term.
In Brazil, the Cardoso administration must continue to depend on a strong real
to anchor inflation expectations as long as the fiscal deficit, the underlying
cause of inflation in Brazil, has not been addressed once and for all. This
policy mix is sustainable only as long as capital inflows are sufficient or
trade barriers prevent an explosion of imports. Congressional elections in a
year's time will make serious progress on the fiscal front increasingly
unlikely.
Mexico is still recovering from the consequences of its decision to devalue last
December, although the external imbalance which led to the crisis no longer
exists. Nonetheless, inflation and interest rates remain high, and confidence is
low. We believe the economy will recover, led by the export sector but, as
always, the question is timing. Recent weakness in the peso, reflecting a lack
of confidence in Mexican leadership, forces interest rates higher and further
delays the recovery.
In Chile, economic performance continues to be more than satisfactory, although
valuations are not compelling given the increasingly competitive environment in
many industries there. Colombia is in the midst of a political crisis involving
its president, about which one cannot make many sensible predictions. Venezuela
has finally begun moving to address its fiscal deficit and has apparently agreed
to be monitored by the IMF in exchange for some external financing. All in all,
the country remains behind its neighbors in terms of the pace of reform, though
recent events bear watching.
CHRISTIAN WIGNALL SORAYA BETTERTON
CHIEF INVESTMENT OFFICER PORTFOLIO MANAGER
GLOBAL EQUITIES SAN FRANCISCO
SAN FRANCISCO
NOVEMBER 20, 1995
G.T. LATIN AMERICA GROWTH FUND
5
<PAGE>
KEY PORTFOLIO HOLDINGS*
KIMBERLY CLARK MEXICO
Kimberly Clark is the largest manufacturer of diapers, tissue paper, notebooks
and paper in Mexico. The company's management is conservative and has
concentrated on lowering costs every year to retain its competitive position in
the marketplace. Under normal economic circumstances, demand for the company's
product has historically grown at an annual rate of over 10%.
BANCO BRADESCO BRAZIL
As the largest bank in Brazil, Banco Bradesco has about 10% of the market. The
lending market in Brazil withered away as a result of high inflation rates
prevalent for so many years prior to last year's introduction of a new currency,
the real. As inflation continues to come down under President Cardoso's economic
plan, we think banks in general, and Banco Bradesco in particular, should be
able to resume lending activities.
CEMEX MEXICO
Cemex, the largest producer of cement in Mexico, sells its ready-mix concrete
and aggregates in 54 countries. Although the Mexican economy is expected to
slow, the company has profitably diversified into Spain. Cemex has also made
gains in cutting costs. In addition, the company constructs and operates hotels
in Mexico.
GRUPO CARSO MEXICO
Grupo Carso is a conglomerate with holdings in Telmex (the Mexican telephone
company, which accounts for 35% of earnings), Condumex (the troubled cable
manufacturer, 10% of earnings), two mining companies (13% of earnings) and the
Philip Morris franchise in Mexico (15% of earnings). The company also derives
revenues by investing in food and beverage, chemicals and the manufacture of
porcelain. Most of Grupo Carso's businesses generate "free" cash (cash flow not
earmarked for either operating expenses or interest), which we expect the
company to continue to use to acquire poorly performing companies in need of
better management.
BANCO ITAU BRAZIL
Banco Itau, Brazil's second-largest private sector bank, has a net worth of
about US$3 billion and almost 1,000 branches. Over the last 10 years, the bank
has substantially increased its labor productivity, cutting its work force by
about 60%. Since the introduction of the Real Plan, the bank's income from float
(the time
- --------------
* The Fund may or may not continue to hold these or any other securities
mentioned in this report.
6
<PAGE>
between the deposit of a check and its payment) has materially declined, while
the income from credit operations and fees has substantially increased. Now that
inflation has fallen, we anticipate the bank's focus on retail banking will
allow it to benefit from a significant expected increase in lending. In
addition, the company's credit earnings are complemented by income from its
capital markets and fund management operations.
COMPANHIA VALE DO RIO DOCE (CVRD) BRAZIL
With sales of $2.5 billion, CVRD is the world's largest iron ore exporter, sales
of which account for about 50% of total sales. CVRD's other main business lines
are mining and transportation. Comparative advantages in extraction and
transportation make the company one of the lowest-cost producers in the world.
The company's stock is a possible hedge against a devaluation of the real given
its high export ratio. Although estimating potential productivity improvements
is difficult, privatization would clearly benefit profitability.
ELETROBRAS BRAZIL
Eletrobras, Brazil's state-controlled holding company, is responsible for the
planning, coordination and financing of the country's electric utility sector.
Eletrobras' assets are primarily hydroelectric electricity generation plants
that collectively represent 47% of the country's generating capacity. The
company also owns controlling interest in two electricity distributors, Light
and Escelsa, the first companies scheduled for privatization in the sector. Over
the next few years, we expect Eletrobras to see improvement in profits and
productivity from real electricity tariff reforms and privatization.
ENDESA CHILE
Endesa is Chile's largest electricity generating company, supplying 87% of the
market with 18 plants, most of which are hydroelectric. The demand for
electricity in Chile is expected to continue to grow around 8% annually and, as
a result, Endesa may be able to grow its market share over the next few years.
Over the last three years, the company has been investing free cash flow
throughout Latin America, mainly in the newly privatized electricity sector in
Argentina. We think that Endesa's growth in Chile may be supplemented by further
investments abroad, particularly in Brazil, over the next few years.
CHILGENER CHILE
Chilgener is the largest thermal electric generating company in Chile. The
company's unique thermal and hydroelectric mix provides significant earnings
7
<PAGE>
potential in rainy and dry years. In addition, its international operations
currently include two successful turnaround privatizations in Argentina, with
potential for more investment in Peru and Brazil.
SANTA ISABEL CHILE
Santa Isabel is one of the largest supermarket chains in Chile and Peru. The
company has stores located primarily outside the more competitive metropolitan
areas and enjoys strong name recognition. Management has been able to expand
gross margins consistently through changes in the mix of products and volume
discounts. Operating margins have also benefited from lower overhead costs as a
result of modernization and computerization. In addition, margins in the
businesses outside Chile, which have been growing the fastest, are higher than
in Chile. While sales have grown at over 20% a year, profits have advanced at a
faster pace. In general, we believe the countries in which the company operates
could support many more supermarkets than are currently in place.
8
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
PORTFOLIO SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Month G.T. Latin America Growth Fund MSCI Emerging Latin America Index
<S> <C> <C>
08/13/91 9525 10000
08/31/91 9952 11079
09/30/91 10085 10995
10/31/91 10965 11789
11/30/91 10771 11110
12/31/91 11421 12582
01/31/92 12892 14614
02/29/92 13658 15986
03/31/92 13665 17163
04/30/92 13893 17149
05/31/92 14014 17417
06/30/92 11864 14150
07/31/92 11891 14403
08/31/92 11025 13266
09/30/92 10131 12858
10/31/92 10474 13849
11/30/92 10648 13888
12/31/92 11156 14724
01/31/93 11200 14416
02/28/93 11164 14302
03/31/93 11810 15350
04/30/93 11628 14620
05/31/93 11773 14845
06/30/93 12100 15814
07/31/93 12499 16273
08/31/93 13494 17674
09/30/93 13668 17902
10/31/93 14357 18553
11/30/93 15047 19840
12/31/93 17063 22423
01/31/94 18958 25938
02/28/94 18730 25087
03/31/94 17454 23303
04/30/94 15588 21544
05/31/94 15972 22771
06/30/94 15131 21242
07/31/94 16326 23090
08/31/94 19076 26834
09/30/94 19828 27916
10/31/94 19253 26543
11/30/94 19150 25793
12/31/94 15930 21597
01/31/95 13279 19130
02/28/95 11784 16244
03/31/95 10997 15695
04/30/95 12484 18027
05/31/95 12547 18378
06/30/95 12862 18684
07/31/95 13373 19340
08/31/95 13554 19578
09/30/95 13176 19389
10/31/95 12099 17785
</TABLE>
THE CHART AT LEFT SHOWS THE PERFORMANCE OF THE G.T. LATIN
AMERICA GROWTH FUND CLASS A SHARES SINCE THE FUND'S INCEPTION VERSUS THE MSCI
EMERGING LATIN AMERICA INDEX. THIS REPRESENTS A CUMULATIVE RETURN OF 20.99% AND
AN AVERAGE ANNUAL TOTAL RETURN OF 4.62%. 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 INDICES ARE UNMANAGED, DO NOT
INCUR EXPENSES AND ARE NOT AVAILABLE FOR INVESTMENT. THE PERFORMANCE OF OTHER
CLASSES WILL BE GREATER OR LESS THAN THE LINE SHOWN BASED ON THE DIFFERENCES IN
CHARGES AND FEES PAID BY SHAREHOLDERS INVESTING IN DIFFERENT CLASSES.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
AVERAGE ANNUAL TOTAL RETURNS+
OCTOBER 31, 1995
<TABLE>
<CAPTION>
WITHOUT SALES CHARGE WITH SALES CHARGE++
---------------------------- ----------------------------
SHARE LIFE OF LIFE OF
CLASS 1 YEAR 5 YEAR FUND 1 YEAR 5 YEAR FUND
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A* -37.16% N/A 5.83% -40.15% N/A 4.62%
CLASS B** -37.42% N/A 0.52% -40.35% N/A -0.57%
ADVISOR
CLASS*** N/A N/A -3.45% N/A N/A N/A
</TABLE>
* The Fund began operations on August 13, 1991.
** The Fund began offering Class B shares on April 1, 1993.
*** The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public and are only available
through certain employee benefit plans, financial institutions and other
entities that have entered into specific agreements with G.T. Global. Please
see the "Alternative Purchase Plan" section in the Fund's prospectus.
+ Figures assume reinvestment of all dividends and capital gains distributions
at net asset value.
++ 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).
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 OCTOBER 31, 1995
<S> <C>
BRAZIL 32.0%
MEXICO 27.9%
CHILE 16.7%
PERU 4.2%
ARGENTINA 3.6%
BOLIVIA 2.3%
VENEZUELA 2.3%
COLOMBIA 1.9%
ECUADOR 1.1%
SHORT-TERM & OTHER 8.0%
SECTOR ALLOCATION OF NET ASSETS AS OF OCTOBER 31, 1995
MATERIALS/BASIC INDUSTRIES 17.4%
ENERGY 17.1%
FINANCE 15.5%
SERVICES 13.0%
MULTI-INDUSTRY/ MISCELLANEOUS 10.1%
METALS - NON FERROUS 8.7%
CONSUMER NON-DURABLES 8.3%
SHORT-TERM & OTHER 9.9%
</TABLE>
ALLOCATIONS WILL CHANGE BASED ON CURRENT MARKET CONDITIONS.
9
<PAGE>
GT GLOBAL
LATIN AMERICA
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
REPORT OF
INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
ANNUAL REPORT
To the Shareholders of G.T. Latin America Growth Fund and Board of Directors of
G.T. Investment Funds, Inc.:
We have audited the accompanying statement of assets and liabilities of G.T.
Latin America Growth Fund, one of the funds organized as a series of G.T.
Investment Funds, Inc., including the portfolio of investments, as of October
31, 1995, the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the four years in the period
then ended and for the period from August 13, 1991 (commencement of operations)
to October 31, 1991. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
G.T. Latin America Growth Fund as of October 31, 1995, the results of operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the four
years in the period then ended and for the period from August 13, 1991
(commencement of operations) to October 31, 1991, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
DECEMBER 15, 1995
F-1
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (17.4%)
Kimberly-Clark de Mexico, S.A. de C.V. "A" ............ MEX 1,038,200 $ 13,560,757 4.3
PAPER/PACKAGING
Cemex, S.A. de C.V.: ................................... MEX -- -- 3.7
CEMENT
"B" - ADR{\/} ........................................ -- 984,875 6,155,469 --
"B" .................................................. -- 1,825,000 5,639,045 --
Sociedad Quimica y Minera de Chile S.A. - ADR{\/} ..... CHLE 176,300 7,647,013 2.4
CHEMICALS
Dixie Toga{::} -/- ..................................... BRZL 6,938,646 6,494,832 2.0
PAPER/PACKAGING
La Cementos Nacional, C.A. - 144A GDR{.} -/- {\/} ..... ECDR 18,176 3,635,200 1.1
CEMENT
Companhia Siderurgica Nacional S.A.: ................... BRZL -- -- 1.2
METALS - STEEL
Common-/- ............................................ -- 112,958,000 2,420,109 --
ADR-/- {\/} .......................................... -- 57,500 1,207,500 --
White Martins S.A. ..................................... BRZL 2,319,570,000 2,243,578 0.7
CHEMICALS
Empaques Ponderosa, S.A. de C.V. "B"-/- ................ MEX 770,000 1,622,191 0.5
PAPER/PACKAGING
Cemento Argos S.A.-/- .................................. COL 260,248 1,565,951 0.5
CEMENT
Venezolana de Prerreducidos Caroni C.A. (Venprecar) -
GDR{\/} ............................................... VENZ 270,500 1,420,125 0.4
METALS - STEEL
Venezolana de Cementos, S.A.C.A.: ...................... VENZ -- -- 0.4
CEMENT
"A" .................................................. -- 1,094,080 1,213,730 --
"B" .................................................. -- 7 7 --
Venezolana de Pulpa Y Papel "A" ........................ VENZ 916,738 455,293 0.1
FOREST PRODUCTS
Melpaper S.A. Preferred-/- ............................. BRZL 1,950,000 294,072 0.1
PAPER/PACKAGING
Papelera Inversora S.A.-/- ............................. ARG 3,616 8,136 --
PAPER/PACKAGING
------------
55,583,008
------------
Energy (17.1%)
Centrais Eletricas Brasileiras S.A. (Eletrobras): ...... BRZL -- -- 3.3
ELECTRICAL & GAS UTILITIES
"B" Preferred-/- ..................................... -- 27,400,000 7,808,216 --
Common-/- ............................................ -- 9,500,000 2,697,348 --
Empresa Nacional de Electricidad S.A. - ADR{\/} ........ CHLE 474,000 10,191,000 3.2
ELECTRICAL & GAS UTILITIES
Chilgener S.A. - ADR{\/} ............................... CHLE 424,200 10,180,800 3.2
ELECTRICAL & GAS UTILITIES
Compania Boliviana de Energia Electrica{::} {\/} ....... BOL 247,100 7,196,788 2.3
ELECTRICAL & GAS UTILITIES
C.A. La Electricidad de Caracas ........................ VENZ 6,589,477 4,377,041 1.4
ELECTRICAL & GAS UTILITIES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (Continued)
MetroGas S.A. - ADR{\/} ................................ ARG 400,000 $ 3,400,000 1.1
OIL
Petrobras Distribuidora S.A. Preferred-/- ............. BRZL 105,030,000 3,309,838 1.0
ENERGY SOURCE
Companhia Energetica de Minas Gerais (Cemig)
Preferred ............................................. BRZL 146,792,050 3,144,999 1.0
ELECTRICAL & GAS UTILITIES
Electricidad de Argentina S.A. - ADR-/- {\/} ........... ARG 110,857 1,884,569 0.6
ELECTRICAL & GAS UTILITIES
------------
54,190,599
------------
Finance (15.5%)
Banco Bradesco S.A. Preferred .......................... BRZL 1,463,332,287 13,392,953 4.2
BANKS-MONEY CENTER
Banco Itau S.A. Preferred .............................. BRZL 37,330,000 11,065,055 3.5
BANKS-MONEY CENTER
Administradora de Fondos de Pensiones Provida S.A. -
ADR-/- {\/} ........................................... CHLE 279,300 6,842,850 2.2
OTHER FINANCIAL
Uniao Bancos Brasileiras "A" Preferred ................. BRZL 170,170,000 5,964,357 1.9
BANKS-MONEY CENTER
Grupo Financiero Banamex Accival, S.A. de C.V. "B" .... MEX 2,565,000 4,395,084 1.4
BANKS-MONEY CENTER
Seguros Comercial America S.A. "B"-/- .................. MEX 11,416,000 2,725,730 0.9
INSURANCE - MULTI-LINE
Grupo Financiero BanCrecer, S.A. de C.V. "B"-/- ........ MEX 6,164,599 2,337,699 0.7
BANKS-MONEY CENTER
Grupo Financiero Bancomer, S.A. de C.V. ................ MEX -- -- 0.7
BANKS-MONEY CENTER
"B"-/- ............................................... -- 7,167,000 1,852,146 --
"L"-/- ............................................... -- 817,296 189,401 --
Banco Ganadero S.A. - ADR-/- {\/} ...................... COL 7,100 69,225 --
BANKS-MONEY CENTER
------------
48,834,500
------------
Services (13.0%)
Santa Isabel S.A. - ADR{\/} ............................ CHLE 449,800 10,176,725 3.2
RETAILERS-FOOD
Telecomunicacoes Brasileiras S.A. (Telebras)
Preferred ............................................. BRZL 210,000,000 8,515,757 2.7
TELEPHONE NETWORKS
CPT Telefonica De Peru "B" ............................ PERU 4,288,446 7,668,082 2.4
TELEPHONE NETWORKS
Lojas Americanas S.A. Preferred-/- .................... BRZL 256,735,469 6,141,358 1.9
RETAILERS-OTHER
Telecom Argentina S.A. - ADR{\/} ....................... ARG 87,000 3,338,625 1.1
TELEPHONE NETWORKS
Telefonica de Argentina S.A. - ADR{\/} ................. ARG 125,000 2,593,750 0.8
TELEPHONE NETWORKS
Gran Cadena de Almacenes Colombianos S.A.: ............. COL -- -- 0.8
RETAILERS-OTHER
144A ADR{.} {\/} .................................... -- 151,600 1,932,900 --
Common ............................................... -- 544,164 611,206 --
Carulla y Compania S.A. - 144A ADR{.} -/- {\/} ......... COL 54,000 405,000 0.1
RETAILERS-FOOD
------------
41,383,403
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Multi Industry/Miscellaneous (10.1%)
Grupo Carso, S.A. de C.V. "A1"-/- ...................... MEX 2,140,000 $ 11,210,955 3.5
CONGLOMERATE
San Luis "CPO"-/- ...................................... MEX 1,698,000 7,989,185 2.5
CONGLOMERATE
Alfa, S.A. de C.V. ..................................... MEX 599,500 6,820,154 2.1
CONGLOMERATE
Grupo Sidek, S.A. de C.V.: ............................. MEX -- -- 2.0
CONGLOMERATE
ADR-/- {\/} .......................................... -- 1,262,900 3,315,113 --
"B"-/- ............................................... -- 6,005,000 2,850,688 --
"A"-/- ............................................... -- 980,000 440,449 --
------------
32,626,544
------------
Metals - Non-Ferrous (8.7%)
Companhia Vale do Rio Doce Preferred .................. BRZL 66,900,000 10,784,711 3.4
Grupo Mexico S.A. "B" .................................. MEX 1,860,924 7,775,630 2.5
Cia de Minas Buenaventura "C" ......................... PERU 1,011,948 5,562,363 1.8
Paranapanema S.A. Min., Ind. E Construacao Preferred-/-
...................................................... BRZL 265,700,000 3,056,310 1.0
------------
27,179,014
------------
Consumer Non-Durables (8.3%)
Companhia Cervejaria Brahma Preferred .................. BRZL 25,640,000 9,786,667 3.1
BEVERAGES - ALCOHOLIC
Embotelladora Andina S.A. - ADR{\/} .................... CHLE 238,100 7,916,825 2.5
BEVERAGES - NON ALCOHOLIC
Companhia Tecidos Norte de Mina Preferred .............. BRZL 9,921,300 3,095,569 1.0
TEXTILES & APPAREL
Grupo Modelo S.A. "C" .................................. MEX 744,000 2,831,798 0.9
BEVERAGES - ALCOHOLIC
Compania Nacional de Chocolates S.A.-/- ................ COL 207,700 1,655,934 0.5
FOOD
Jugos Del Valle S.A. "B"-/- ............................ MEX 550,000 956,320 0.3
BEVERAGES - NON ALCOHOLIC
------------
26,243,113
------------
Capital Goods (1.9%)
Bufete Industrial, S.A. de C.V. - ADR-/- {\/} .......... MEX 454,900 6,084,288 1.9
CONSTRUCTION
------------ -----
TOTAL EQUITY INVESTMENTS (cost $317,060,467) ............ 292,124,469 92.0
------------ -----
<CAPTION>
No. of Market % of Net
Rights (0.0%) Country Rights Value Assets {d}
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Companhia Energetica de Minas Gerais (CEMIG) Rights,
expire 11/24/95 (cost $0)-/- .......................... BRZL 7,009,278 -- --
------------ -----
ELECTRICAL & GAS UTILITIES
<CAPTION>
Principal Market % of Net
Short-Term Investments Currency Amount Value Assets {d}
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Treasury Bills (1.8%)
Mexico (1.8%)
Mexican Tesobonos, effective yield 15.53%, due
11/30/95 (cost $5,630,523) .......................... USD 5,700,000 5,630,523 1.8
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
<TABLE>
<CAPTION>
Market % of Net
Repurchase Agreement Value Assets {d}
- ---------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated October 31, 1995 with State Street Bank & Trust
Company, due November 1, 1995, for an effective yield
of 5.80%, collateralized by $36,945,000 U.S. Treasury
Strips, due 2/15/02 (market value of collateral is
$25,568,464). (cost $24,760,989) ..................... $ 24,760,989 7.8
------------ -----
TOTAL INVESTMENTS (cost $347,451,979) .................... 322,515,981 101.6
Other Assets and Liabilities ............................. (5,158,417) (1.6)
------------ -----
NET ASSETS ............................................... $317,357,564 100.0
------------ -----
------------ -----
</TABLE>
- ----------------
{d} Percentages indicated are based on net assets of $317,357,564.
{\/} U.S. currency denominated.
-/- Non-income producing security.
{::} See Note 7 of Notes to Financial Statements.
{.} 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 $353,457,428 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 25,131,541
Unrealized depreciation: (56,072,988)
-------------
Net unrealized appreciation: $ (30,941,447)
-------------
-------------
<TABLE>
<C> <S>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at October 31, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets
{d}
---------------------------
Short-Term
Country(Country Code/Currency Code) Equity & Other Total
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS) ................. 3.6 3.6
Bolivia (BOL/BOL) .................... 2.3 2.3
Brazil (BRZL/BRL) .................... 32.0 32.0
Chile (CHLE/CLP) ..................... 16.7 16.7
Colombia (COL/COP) ................... 1.9 1.9
Ecuador (ECDR/ECS) .................. 1.1 1.1
Mexico (MEX/MXN) ..................... 27.9 1.8 29.7
Peru (PERU/PES) ...................... 4.2 4.2
United States (US/USD) ............... 0.0 6.2 6.2
Venezuela (VENZ/VEB) ................. 2.3 2.3
------ --- -----
Total ............................... 92.0 8.0 100.0
------ --- -----
------ --- -----
<FN>
- ----------------
{d} Percentages indicated are based on net assets of $317,357,564.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-5
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $347,451,979)
(Note 1).................................................. $322,515,981
U.S. currency.............................. $ 422
Foreign currencies (cost $11,843,274)...... 11,321,619 11,322,041
-----------
Receivable for securities sold............................. 7,089,391
Receivable for Fund shares sold............................ 2,023,413
Dividends receivable....................................... 933,861
Miscellaneous receivable................................... 240,317
Unamortized organizational costs (Note 1).................. 16,576
------------
Total assets............................................. 344,141,580
------------
Liabilities:
Payable for Fund shares repurchased........................ 25,098,291
Payable for securities purchased........................... 879,083
Payable for investment management and administration fees
(Note 2).................................................. 286,790
Payable for service and distribution expenses (Note 2)..... 208,970
Payable for transfer agent fees (Note 2)................... 128,073
Payable for printing and postage expenses.................. 78,359
Payable for professional fees.............................. 33,261
Payable for custodian fees................................. 26,932
Payable for registration and filing fees................... 22,059
Payable for fund accounting fees (Note 2).................. 7,416
Payable for Directors' fees and expenses (Note 2).......... 3,354
Other accrued expenses..................................... 11,428
------------
Total liabilities........................................ 26,784,016
------------
Net assets................................................... $317,357,564
------------
------------
Class A:
Net asset value and redemption price per share
($182,461,796 DIVIDED BY 11,864,279 shares outstanding)..... $ 15.38
------------
------------
Maximum offering price per share
(100/95.25 of $15.38) *..................................... $ 16.15
------------
------------
Class B:+
Net asset value and offering price per share
($134,527,018 DIVIDED BY 8,842,965 shares outstanding)...... $ 15.21
------------
------------
Advisor Class: (Notes 1 & 4)
Net asset value, offering price per share, and redemption
price per share
($368,750 DIVIDED BY 23,940 shares outstanding)............. $ 15.40
------------
------------
Net assets consist of:
Paid in capital (Note 4)................................... $440,895,860
Undistributed net investment income........................ 1,356,776
Accumulated net realized loss on investments and foreign
currency transactions..................................... (99,318,624)
Net unrealized depreciation on translation of assets and
liabilities in foreign currencies......................... (640,450)
Net unrealized depreciation of investments................. (24,935,998)
------------
Total -- representing net assets applicable to capital shares
outstanding................................................. $317,357,564
------------
------------
<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 deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-6
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
STATEMENT OF OPERATIONS
Year ended October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of
$514,492).................................................. $ 7,388,772
Interest income............................................. 4,558,049
-------------
Total investment income................................... 11,946,821
-------------
Expenses:
Investment management and administration fees (Note 2)...... 3,913,429
Service and distribution expenses: (Note 2)
Class A.................................. $ 1,189,722
Class B.................................. 1,632,783 2,822,505
------------
Transfer agent fees (Note 2)................................ 1,713,500
Custodian fees.............................................. 299,977
Printing and postage expenses............................... 183,720
Registration and filing fees................................ 147,250
Fund accounting fees (Note 2)............................... 101,476
Audit fees.................................................. 39,700
Amortization of organization costs (Note 1)................. 35,559
Legal fees.................................................. 30,150
Directors' fees and expenses (Note 2)....................... 18,450
Insurance expenses.......................................... 6,878
Other expenses.............................................. 4,496
-------------
Total expenses before reductions.......................... 9,317,090
-------------
Expense reductions (Note 6)............................. (21,159)
-------------
Total net expenses........................................ 9,295,931
-------------
Net investment income......................................... 2,650,890
-------------
Net realized and unrealized loss on
investments and foreign currencies: (Note 1)
Net realized loss on investments........... (98,358,686)
Net realized loss on foreign currency
transactions.............................. (513,916)
------------
Net realized loss during the year......................... (98,872,602)
Net change in unrealized depreciation on
translation of assets and liabilities in
foreign currencies........................ (795,171)
Net change in unrealized depreciation of
investments............................... (97,151,861)
------------
Net unrealized depreciation during the year............... (97,947,032)
-------------
Net realized and unrealized loss on investments and foreign
currencies................................................... (196,819,634)
-------------
Net decrease in net assets resulting from operations.......... $(194,168,744)
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-7
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
----------------- -----------------
Increase (Decrease) in net assets
<S> <C> <C>
Operations:
Net investment income (loss)............... $ 2,650,890 $ (1,702,002)
Net realized gain (loss) on investments and
foreign currency transactions............. (98,872,602) 36,455,773
Net change in unrealized appreciation
(depreciation) on translation of assets
and liabilities in foreign currencies..... (795,171) 624,742
Net change in unrealized appreciation
(depreciation) of investments............. (97,151,861) 42,935,159
----------------- -----------------
Net increase (decrease) in net assets
resulting from operations............... (194,168,744) 78,313,672
Class A:
Distributions to shareholders: (Note 1)
From net investment income................. 0 (1,602,016)
From net realized gain on investments...... (19,567,238) (1,208,111)
Class B:
Distributions to shareholders: (Note 1)
From net investment income................. 0 (278,582)
From net realized gain on investments...... (14,468,347) (226,277)
----------------- -----------------
Total distributions...................... (34,035,585) (3,314,986)
----------------- -----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested................................ 1,098,477,187 1,159,589,487
Decrease from capital shares repurchased... (1,101,548,404) (828,810,299)
----------------- -----------------
Net increase (decrease) from capital
share transactions...................... (3,071,217) 330,779,188
----------------- -----------------
Total increase (decrease) in net assets...... (231,275,546) 405,777,874
Net assets:
Beginning of year.......................... 548,633,110 142,855,236
----------------- -----------------
End of year................................ $ 317,357,564 $ 548,633,110
----------------- -----------------
----------------- -----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-8
<PAGE>
G.T. GLOBAL LATIN AMERICA FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share
outstanding, total investment return, ratios and supplemental data. This
information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
-----------------------------------------------------------------------
AUGUST 13, 1991
(COMMENCEMENT
YEAR ENDED OCTOBER 31, OF OPERATIONS) TO
--------------------------------------------------- OCTOBER 31,
1995(A) 1994(A) 1993(A) 1992 1991
---------- ----------- ----------- ---------- -----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 26.11 $ 19.78 $ 15.59 $ 16.45 $ 14.29
---------- ----------- ----------- ---------- -----------------
Income from investment operations:
Net investment income (loss).......... 0.15 (0.08) 0.18 0.25 0.01
Net realized and unrealized gain
(loss) on investments................ (9.28) 6.75 5.21 (0.98) 2.15
---------- ----------- ----------- ---------- -----------------
Net increase (decrease) from
investment operations.............. (9.13) 6.67 5.39 (0.73) 2.16
---------- ----------- ----------- ---------- -----------------
Distributions to shareholders:
From net investment income............ 0.00 (0.19) (0.12) (0.13) 0.00
From net realized gain on
investments.......................... (1.60) (0.15) (1.08) 0.00 0.00
---------- ----------- ----------- ---------- -----------------
Total distributions................. (1.60) (0.34) (1.20) (0.13) 0.00
---------- ----------- ----------- ---------- -----------------
Net asset value, end of period.......... $ 15.38 $ 26.11 $ 19.78 $ 15.59 $ 16.45
---------- ----------- ----------- ---------- -----------------
---------- ----------- ----------- ---------- -----------------
Total investment return (d)............. (37.16)% 34.10% 37.10% (4.50)% 15.10%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $182,462 $336,960 $129,280 $94,085 $125,038
Ratio of net investment income (loss) to
average net assets..................... 0.86% (0.29)% 1.30%* 1.30%* 1.20%*(c)
Ratio of expenses to average net assets:
With expense reductions (Note 6)...... 2.11% 2.04% 2.40%* 2.40%* 2.40%*(c)
Without expense reductions............ 2.12% --%** --%** --%** --%**
Portfolio turnover rate++++............. 125% 155% 112% 159% none
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
* Includes reimbursement by G.T. Capital Management, Inc. of Fund
operating expenses of $0.02, $0.04 and $0.01 for the years ended
October 31, 1993 and 1992 and for the period from August 13, 1991 to
October 31, 1991, respectively. Without such reimbursements, the
expense ratios would have been 2.49%, 2.62% and 3.42% and the ratios
of net investment income to average net assets would have been 1.25%,
1.07% and 0.15% for the years ended October 31, 1993 and 1992 and for
the period from August 13, 1991 to October 31, 1991, respectively.
* * Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) These selected per share data were calculated based upon weighted
average shares outstanding during the period.
(b) Not annualized.
(c) Annualized.
(d) Total investment return does not include sales charges.
The accompanying notes are an integral part of the financial statements.
F-9
<PAGE>
G.T. GLOBAL LATIN AMERICA FUND
FINANCIAL HIGHLIGHTS (CONT'D)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share
outstanding, total investment return, ratios and supplemental data. This
information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR
CLASS B++ CLASS+++
----------------------------------------- -------------
APRIL 1, 1993 JUNE 1, 1995
YEAR ENDED OCTOBER 31, TO TO
------------------------ OCTOBER 31, OCTOBER 31,
1995(A) 1994(A) 1993(A) 1995
---------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 25.94 $ 19.75 $ 16.26 $15.95
---------- ----------- -------------- -------------
Income from investment operations:
Net investment income (loss).......... 0.06 (0.22) (0.07) 0.09
Net realized and unrealized gain
(loss) on investments................ (9.19) 6.74 3.56 (0.64)
---------- ----------- -------------- -------------
Net increase (decrease) from
investment operations.............. (9.13) 6.52 3.49 (0.55)
---------- ----------- -------------- -------------
Distributions to shareholders:
From net investment income............ 0.00 (0.18) 0.00 0.00
From net realized gain on
investments.......................... (1.60) (0.15) 0.00 0.00
---------- ----------- -------------- -------------
Total distributions................. (1.60) (0.33) 0.00 0.00
---------- ----------- -------------- -------------
Net asset value, end of period.......... $ 15.21 $ 25.94 $ 19.75 $15.40
---------- ----------- -------------- -------------
---------- ----------- -------------- -------------
Total investment return (d)............. (37.42)% 33.33% 21.50%(b) (3.45)%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $134,527 $211,673 $13,576 $ 369
Ratio of net investment income (loss) to
average net assets..................... 0.36% (0.79)% (0.70)%(c) 1.36%(c)
Ratio of expenses to average net assets:
With expense reductions (Note 6)...... 2.61% 2.54% 2.90%(c) 1.61%(c)
Without expense reductions............ 2.62% --%** --%** 1.62%(c)
Portfolio turnover rate++++............. 125% 155% 112% 125%
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
* Includes reimbursement by G.T. Capital Management, Inc. of Fund
operating expenses of $0.02, $0.04 and $0.01 for the years ended
October 31, 1993 and 1992 and for the period from August 13, 1991 to
October 31, 1991, respectively. Without such reimbursements, the
expense ratios would have been 2.49%, 2.62% and 3.42% and the ratios
of net investment income to average net assets would have been 1.25%,
1.07% and 0.15% for the years ended October 31, 1993 and 1992 and for
the period from August 13, 1991 to October 31, 1991, respectively.
* * Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) These selected per share data were calculated based upon weighted
average shares outstanding during the period.
(b) Not annualized.
(c) Annualized.
(d) Total investment return does not include sales charges.
The accompanying notes are an integral part of the financial statements.
F-10
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
October 31, 1995
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Latin America Growth 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 non-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 offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. The Fund
commenced sale of Advisor Class shares on June 1, 1995. Investment income,
realized and unrealized capital gains and losses, and the common expenses of the
Fund are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the Fund. Each class of shares
differs in its respective service and distribution expenses, and may differ in
its transfer agent, registration, and certain other class-specific fees and
expenses.
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) PORTFOLIO VALUATION
The Fund calculates the net asset value of and completes orders to purchase,
exchange or repurchase Fund shares 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 on the principal over-the-counter market on 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 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
Company's Board of Directors.
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 Company's Board of Directors.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records 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 Fund 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 Fund 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
F-11
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
between the trade and settlement dates on securities transactions, and the
differences between the amounts of dividends, interest, and foreign withholding
taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains and losses
arise from changes in the value of assets and liabilities other than investments
in securities at year end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund'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 Fund 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 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 Fund as an unrealized gain or loss. When the
Forward Contract is closed, the Fund 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
amount shown in the Fund's "Statement of Assets and Liabilities." The Fund 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 Fund 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 Fund writes a call or put option, an amount equal to the premium
received is included in the Fund'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 Fund 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 Fund can write options only on a covered
basis, which, for a call, requires that the fund hold the underlying security
and, for a put, requires the Fund to maintain in a segregated account 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 Fund may use options to manage
its exposure to the stock or bond market and to fluctuations in currency values
or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund'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 Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund 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 Fund 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 Fund 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 Fund 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 Fund 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
Fund 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
Fund 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 Fund
F-12
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
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 Fund as unrealized gains or losses.
When the contract is closed, the Fund 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 Fund is that the
change in value of the underlying securities may not correlate to the change in
value of the contracts. The Fund may use futures contracts to manage its
exposure to the stock or bond 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-out basis, unless otherwise specified. 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 Fund 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 Fund to subsequently invest at less advantageous prices.
(H) 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
$93,313,175 which expires in 2003.
(I) 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 Fund and timing differences.
(J) DEFERRED ORGANIZATIONAL EXPENSES
Expenses incurred by the Fund in connection with its organization, its initial
registration with the Securities and Exchange Commission and with various states
and the initial public offering of its shares aggregated $177,793. These
expenses are being amortized on a straight line 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 Fund's investments in emerging market
countries may involve greater risks than investments in more developed markets
and the prices 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.
(L) INDEXED SECURITIES
The Fund 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 Fund 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 Fund's investment manager and administrator. The Fund pays
investment management and administration fees to G.T. Capital at the annualized
rate of 0.975% of the first $500 million of average daily net assets of the
Fund; 0.95% of the next $500 million; 0.925% of the next $500 million and 0.90%
on amounts thereafter. 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, is the Fund's distributor. The Fund offers Class A, Class B and Advisor
Class shares for purchase.
F-13
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
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 year ended October 31, 1995, G.T. Global retained
$291,788 of such sales charges. Purchases of Class A shares exceeding $500,000
may be subject to a contingent deferred sales charge ("CDSC") upon redemption,
in accordance with the Fund's current prospectus. G.T. Global collected CDSCs in
the amount of $60,973 for the year ended October 31, 1995. G.T. Global also
makes ongoing shareholder servicing and trail commission payments to dealers
whose clients hold Class A shares.
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 CDSCs, in accordance with the Fund's current
prospectus. For the year ended October 31, 1995, G.T. Global collected CDSCs in
the amount of $699,275. 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 distribution plans with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses 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%, 2.90%, and 1.90% of the average
net assets of the Fund's Class A, Class B and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by G.T.
Capital of investment management and 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.
Effective May 1, 1995, G.T. Capital has assumed the role of pricing and
accounting agent for the Fund. The monthly fee for these services to G.T.
Capital is a percentage, not to exceed 0.03% annually, of the Fund's average
daily net assets. The annual fee rate is derived by applying 0.03% to the first
$5 billion of assets of all registered mutual funds advised by G.T. Capital
("G.T. Funds") and 0.02% to the assets in excess of $5 billion and dividing the
result by the aggregate assets of the G.T. Funds. For the period ended October
31, 1995, the Fund paid fund accounting fees of $24,138 to G.T. Capital.
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.
3. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 1995, purchases and sales of investment
securities by the Fund, other than short-term investments, aggregated
$442,862,676 and $469,450,615. There were no purchases or sales of U.S.
government obligations for the year ended October 31, 1995.
F-14
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
4. CAPITAL SHARES
At October 31, 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
Strategic Income 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. Global
Natural Resources Fund; 200,000,000 were classified as shares of G.T. Global
Infrastructure 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
Emerging Markets Fund; and 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
High Income Fund; and 200,000,000 were classified as shares of G.T. Global
Consumer Products and Services Fund. 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. 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. Transactions in capital shares of the Fund were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
-------------------------- ---------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
----------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold.................................................. 52,467,821 $ 904,752,193 33,720,715 $ 806,747,697
Shares issued in connection with reinvestment of
distributions.............................................. 673,780 16,139,240 111,943 2,416,821
----------- ------------- ------------ -------------
53,141,601 920,891,433 33,832,658 809,164,518
Shares repurchased........................................... (54,183,599) (943,221,637) (27,463,633) (659,239,270)
----------- ------------- ------------ -------------
Net increase (decrease)...................................... (1,041,998) $ (22,330,204) 6,369,025 $ 149,925,248
----------- ------------- ------------ -------------
----------- ------------- ------------ -------------
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
-------------------------- ---------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
----------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold.................................................. 9,341,199 $ 166,467,703 14,675,635 $ 350,025,309
Shares issued in connection with reinvestment of
distributions.............................................. 439,250 10,440,947 18,533 399,660
----------- ------------- ------------ -------------
9,780,449 176,908,650 14,694,168 350,424,969
Shares repurchased........................................... (9,097,593) (158,042,884) (7,221,595) (169,571,029)
----------- ------------- ------------ -------------
Net increase................................................. 682,856 $ 18,865,766 7,472,573 $ 180,853,940
----------- ------------- ------------ -------------
----------- ------------- ------------ -------------
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT OF SALE OF
SHARES) TO OCTOBER 31,
1995
--------------------------
ADVISOR CLASS SHARES AMOUNT
----------- -------------
<S> <C> <C> <C> <C>
Shares sold.................................................. 41,561 $ 677,104
Shares repurchased........................................... (17,621) (283,883)
----------- -------------
Net increase................................................. 23,940 $ 393,221
----------- -------------
----------- -------------
</TABLE>
5. WRITTEN OPTIONS:
The Fund's written options contract activity for the year ended October 31,
1995, was as follows:
COVERED CALL OPTIONS WRITTEN
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS PREMIUM
--------- --------
<S> <C> <C>
Options outstanding at October 31, 1994.................................... 300 $66,750
Options written............................................................ 0 0
Options cancelled in closing purchase transactions......................... 0 0
Options expired prior to exercise.......................................... (300) (66,750 )
Options exercised.......................................................... 0 0
--- --------
Options outstanding at October 31, 1995.................................... 0 $ 0
--- --------
--- --------
</TABLE>
F-15
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
6. EXPENSE REDUCTIONS
G.T. Capital has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the year ended October 31, 1995, the Fund's expenses
were reduced by $21,159 under these arrangements.
7. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES
Investments of 5% or more of an issuer's outstanding voting securities by the
Fund are defined in the Investment Company Act of 1940 as an affiliated company.
Investments in affiliated companies at October 31, 1995 amounted to $13,691,620,
at value.
Transactions with affiliated companies are as follows:
<TABLE>
<CAPTION>
PURCHASES NET REALIZED DIVIDEND
AFFILIATES COST SALES COST GAIN INCOME
- -------------------------------------------------------------------------------- ---------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
Compania Boliviana de Energia Electrica......................................... $7,532,161 $ -- $ -- $ 46,949
Dixie Toga...................................................................... 3,646,979 1,209,733 479,746 --
</TABLE>
8. SUBSEQUENT EVENT:
Effective January 1, 1996, as part of a unified corporate identity effort, the
name of the BIL GT Group (of which G.T. Capital is a member) will be changed to
Liechtenstein Global Trust ("LGT"). The Fund's (or Portfolio's) investment
manager and administrator, currently named G.T. Capital Management, Inc., will
be changed to "LGT Asset Management, Inc.", and G.T. Global Financial Services,
Inc., which serves as the Fund's distributor, will be known as "GT Global, Inc."
The Fund's name, G.T. Latin America Growth Fund, will become "GT Global Latin
America Growth Fund."
- --------------
FEDERAL TAX INFORMATION (UNAUDITED):
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$24,119,757 as capital gain dividends for the fiscal year ended October 31,
1995.
For its fiscal year ended October 31, 1995, the total amount of income received
by the Fund from sources within foreign countries and possessions of the United
States was approximately $0.378 per share (representing an approximate total of
$7,571,282). The total amount of dividend & capital gain taxes paid by the Fund
to such countries was approximately $0.028 per share (representing an
approximate total of $554,423).
F-16
<PAGE>
G.T. LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
[LOGO]
GT GLOBAL MUTUAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL GT 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
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside
the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture, or sell
telecommunications services or equipment
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve, or maintain a country's infrastructure
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore, or develop natural resources
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. domiciled companies
GT GLOBAL AMERICA VALUE FUND
Concentrates on large cap equity securities of U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
G.T. LATIN AMERICA GROWTH FUND
