<PAGE>
LGT ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
LATIN AMERICA
GROWTH FUND
SEMIANNUAL REPORT
APRIL 30, 1996
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Report from the Fund
Managers and Key
Portfolio Holdings... 1
Report of Independent
Accountants.......... F1
Financial
Statements........... F2
</TABLE>
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO SUMMARY
INVESTMENT OBJECTIVE/ CURRENT STRATEGY
The Fund seeks capital appreciation by investing in stocks and bonds issued
by companies and governments in Latin America. As many of these countries
demonstrate improving economic conditions, we continue to focus our attention
on companies we feel can perform well within this environment.
PERFORMANCE SUMMARY
MSCI Emerging Index Latin America
GT Global Latin America Growth Fund
MSCI Emerging Index GT GLOBAL LATIN AMERICA
Latin America GROWTH FUND
------------------- -----------------------
8.13.91 9525 10000
9952 11079
10085 10995
10965 11789
10771 11110
11421 12582
12892 14614
13658 15986
13665 17163
13893 17149
14014 17417
11864 14150
11891 14403
11025 13266
10131 12858
10474 13849
10648 13888
11156 14724
11200 14416
11164 14302
11810 15350
11628 14620
11773 14845
12100 15814
12499 16273
13494 17674
13668 17902
11.30.93 14357 18553
15047 19840
17063 22423
18958 25938
18730 25087
17454 23303
15588 21544
15972 22771
15131 21242
16326 23090
19076 26834
19828 27916
19253 26543
19150 25793
15930 21597
13279 19130
11784 16244
10997 15695
12484 18027
12547 18378
12862 18684
13373 19340
13554 19578
13176 19389
12099 17785
12052 18101
12531 18674
13672 20606
12990 19420
13347 19674
4.30.96 13862 20753
The chart above shows the performance of the GT Global 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 38.62% and an
average annual total return of 7.17% for the Fund. 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. A $10,000
investment in the Fund's Class B shares at inception on 4/1/93 would have
been valued at $11,286 on 4/30/96. This figure reflects the maximum
applicable contingent deferred sales charge (5% in the first year, decreasing
to 0% after six years). A $10,000 investment in Advisor Class shares at
inception on 6/1/95 would have been worth $11,090. 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.
AVERAGE ANNUAL TOTAL RETURNS+
APRIL 30, 1996
WITHOUT SALES CHARGE++ WITH SALES CHARGE
---------------------- ---------------------
SHARE CLASS 1 YEAR LIFE OF FUND 1 YEAR LIFE OF FUND
------ ------------ ------ ------------
Class A* 11.03 8.28 5.76 7.17
Class B* 10.54 4.89 5.54 4.00
Advisor Class** N/A 10.90 N/A N/A
HISTORICAL PERFORMANCE++
ANNUAL RETURNS
1991 1992 1993 1994 1995
---- ---- ---- ---- ----
Class A 19.91* -2.32 52.94 -6.64 -21.34
Class B N/A N/A 44.28* -7.12 -21.70
* The Fund began operations on August 13, 1991; Class B shares commenced
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 GT
Global. Please see the ""Alternative Purchase Plan'' section in the
Fund's prospectus.
+ Figures assume reinvestment of all dividends and capital gain
distributions at net asset value.
++ The above performance data do not reflect the maximum 4.75% sales
charge and the contingent deferred sales charge (5% in the first year,
decreasing to 0% after six years) for Class A and Class B shares,
respectively, which if included, would have reduced performance quoted.
The above data 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.
1
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER SORAYA BETTERTON
Q HOW DID THE FUND PERFORM?
A Many Latin American markets improved considerably over the six months to
April 30, 1996, contributing to the Fund's total return of 14.57% for Class A
shares (9.13% including the maximum 4.75% sales charge) and 14.32% for Class
B shares (9.32% including the maximum 5% contingent deferred sales charge).
Total return over the same investment period for the Morgan Stanley Capital
International (MSCI) Emerging Latin America Index(1) was 16.69%.
Q WHICH MARKETS CONTRIBUTED FAVORABLY TO THE FUND'S PERFORMANCE?
A The Mexican market, where the Fund was overweighted, was the best
contributor, rising 30.07% over the period. The Argentine market contributed
to performance by rising 37.66%, although the Fund was underweighted relative
to the index. Peru also turned in a good advance, rising 21.12%.
Q HAVE THE ECONOMIC FUNDAMENTALS OF THESE COUNTRIES
IMPROVED SINCE THE DEVALUATION OF THE MEXICAN PESO?
A Of all the Latin American economies, Mexico has been transformed most
radically. Since 1994, the trade deficit of 4.9% of GDP has reversed, with a
surplus of 1.9% expected in 1996. Moderate growth of 3.5% in 1994 gave way
to a very deep recession in 1995 when GDP contracted by 6.9%; interest rates
rose sharply and the government replaced its fixed exchange rate policy with
a free-floating exchange rate policy. The central bank has maintained a tight
monetary policy and we believe it is likely that inflation, which rose to 50%
a year post-devaluation, will fall to 28% or so this year.
Other economies in Latin America suffered from an exodus of foreign capital
after the devaluation, which caused interest rates to rise, particularly in
Argentina, and economic growth to turn negative. The general deceleration in
economic growth in the region, while damaging corporate profits growth, has
helped reduce trade and current account deficits that were becoming
problematic in countries other than Mexico.
Q HOW DID SOME OF THE SMALLER MARKETS IN THE REGION FARE?
A Chile was one of the worst performing of the smaller markets based on
fears that an overheating economy would lead to higher interest rates; the
index fell 0.89% in U.S. dollar terms over the six months to April 30.
Venezuela also performed poorly, its index declining 12.88% over the same
period, although this return masks the significant reversal the market has
achieved since the beginning of the year, over which time the index has
appreciated by about 50%. The catalyst for this rise was the agreement
reached with the IMF involving the removal of exchange controls and raising
taxes and gasoline prices. Together, these two markets represented 12% of the
Fund's geographical holdings at the end of the period. The Peruvian market
performed well, rising 21.12% even though economic activity was slowing down.
Q HOW HAVE YOU POSITIONED THE FUND TO TRY TO TAKE
ADVANTAGE OF THOSE COUNTRIES DEMONSTRATING IMPROVEMENT?
A Over the period, the Fund became more fully invested, raising its
weightings in Mexico, Brazil, Argentina and Venezuela. In Mexico we expect
economic recovery to follow a reduction in interest rates and inflation,
which will be good for stock prices. In Brazil we hope for further
privatizations and productivity improvements in state-owned companies prior
to their sale to the private sector. In Argentina, the economy is recovering
slowly, and with very low inflation, we expect interest rates to fall further.
Chile was the only market where exposure was reduced significantly in
anticipation of the tightening of monetary policy which came on the heels of
very strong economic growth.
In Venezuela, even after the recent rise in the market, we believe equities
remain very cheap and the implementation of IMF- approved policies could help
reduce the fiscal deficit and eventually reduce inflation.
ABOUT THE PORTFOLIO MANAGER
SORAYA M. BETTERTON - Portfolio Manager for LGT Asset Management since 1986;
Investment Analyst since 1984. Previous to working for LGT Asset Management,
Ms. Betterton received her B.A. from Oxford University.
(1) The MSCI Emerging Latin America Index is an arithmetic average,
weighted by market value, of companies listed in Argentina, Brazil,
Chile, Columbia, Mexico, Peru and Venezuela. The index, measured in U.S.
dollars, has an aggregate market capitalization of $216 billion and
includes the effect of reinvested dividends.
The index is not available for investment and does not incur sales charges
and professional management fees.
2
<PAGE>
KEY MARKETS
MEXICO
The MSCI Mexico Index rose 30.07% in U.S. dollar terms over the six months
ending April 30, 1996. After the dramatic fall in stock prices recorded
during the first several months of 1995, virtually all markets in the Latin
American region rebounded sharply beginning in March 1995, including
Mexico's. The rise in the Mexican market was driven by the announcement of a
package of government austerity measures, a deal with the U.S. and IMF to
shore up the country's balance of payments, and expectations of economic
recovery in the medium term. Economic activity bottomed in the second and
third quarters of 1995, and there has been plenty of evidence since then that
a recovery is underway, driven primarily by exports of industrial goods.
The external trade imbalance which led to the crisis in the first place has
disappeared, with substantial trade surpluses the norm since early 1995. By
September 1995, the country's onerous short-term dollar debt had virtually
been repaid. After a renewed bout of peso weakness and a spike in interest
rates in November of last year, authorities began to do a better job of
intervening in the currency markets to control inflation expectations and
prevent instability in the domestic financial markets. A weak banking system
continues to be the main impediment to a strong recovery in domestic
consumption and investment.
BRAZIL
The MSCI Brazil Index rose 11.54% in U.S. dollar terms during the six months
ending April 30, 1996. Market proxies and potential privatization plays like
Eletrobras and Telebras led the rise; in fact, the broader FGV-100 Index
which includes only private sector companies, was actually down 10% over the
last year, reflecting the sharp slowdown in the economy beginning in May 1995
and the contraction in profit margins experienced by many private sector
companies. The large relative outperformance of PARASTATALS (primarily
government controlled companies) can also be attributed to the favorable
telecommunications tariff rebalancing announced in November 1995.
The slowdown in the real economy has been substantial, with double-digit
drops in industrial production and sales during much of the second half of
1995. Comparisons versus last year continue to be negative for many
industries, and unemployment is mounting. Combined with increased
protectionist measures, weak demand has helped bring back the trade surpluses
Brazil enjoyed until late 1994, though export growth is anemic. The exchange
rate continues to be the anchor for the domestic economy while Congress and
the president wrangle over fiscal and constitutional reforms. Ominously, the
consolidated fiscal deficit reached a whopping 5% of GDP in 1995, after
posting a surplus in 1994. Nonetheless, falling inflation, now below 15% per
year, and weak domestic demand have induced the authorities to begin lowering
interest rates.
CHILE
The MSCI Chile Index fell 0.89% in U.S. dollar terms over the six months
ending April 30, 1996. Initially, like other stock markets in the region,
Chile was helped by the recovery of sentiment following the announcement of
austerity measures in Mexico and Argentina, though Chile's relatively low
dependence on foreign capital meant it had less to recover after the crisis.
Meanwhile, Chile was benefiting from two other factors: lower interest rates
since late 1994 on the back of falling inflation through 1995; and strong
prices for Chile's primary exports, which led to a boost in the country's
terms of trade and thus in net exports. The effect of these two phenomena
was, in the end, a lift to domestic liquidity and an acceleration in economic
growth, which exceeded 8% for 1995 as a whole.
Later in the year, however, concerns about the potential impact of a second
gas pipeline from Argentina on the profitability of Chile's listed
electricity generators, as well as signs of overheating in the domestic
economy and falling prices for Chile's main commodity exports, weighed on the
stock market and led to its relative underperformance versus the rest of the
region.
ARGENTINA
Argentine stocks, as measured by the MSCI Argentina Index, rose 37.66% in
U.S. dollar terms during the six months ending April 30, 1996. As in Brazil,
the broader market underperformed, with the General Index up just 15.3%
during the period. After Mexico's, Argentina's was the economy most severely
hurt by the peso crisis. Overall GDP growth in 1995 was -4.5%, after
averaging 7% for the previous four years. There have been few concrete signs
of recovery yet, with first quarter 1996 GDP expected to have fallen by 7%
year-on-year (YOY). In addition, 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
of the uncertainty that engenders.
On the bright side, gross foreign reserves have surpassed the level of
December 1994, as have deposits in the banking system. Inflation has fallen
to close to 0% YOY, a remarkable achievement given Argentina's history of
hyperinflation. Earnings for many listed companies have been relatively
unaffected by the poor performance of the economy given the market's
concentration in utilities and oil.
3
<PAGE>
EMERGING MARKETS MAKING THE LONG-TERM CASE
ANNUALIZED FIVE-YEAR RETURNS TO APRIL 30, 1996*
EMERGING
Latin America 21.81%
Emerging Markets 13.70%
Far East 10.80%
DEVELOPED
North America 13.90%
The World 11.93%
Europe 11.59%
While many emerging markets may demonstrate significant short-term
volatilities as well as increased political and economic risks, we believe
the case for investing in emerging markets remains compelling over the
longer-term. Despite last year's weakness, over the past five years Latin
American equities markets have produced returns in many cases considerably
better than developed economies.
* Includes the effect of reinvested dividends.
Source: MSCI country indices
Past performance of indices is not indicative of future performance of
indices of the Fund.
GEOGRAPHIC ALLOCATION OF NET ASSETS
APRIL 30, 1996 APRIL 30, 1995
-------------- --------------
ARGENTINA 8.4% 3.2%
BOLIVIA 2.6% N/A
BRAZIL 35.5% 26.2%
CHILE 7.3% 4.9%
COLOMBIA 0.3% 2.2%
ECUADOR 0.8% 1.0%
MEXICO 33.8% 41.1%
PANAMA 1.5% N/A
PERU 3.1% 5.1%
UNITED STATES & OTHER 2.0% 12.9%
VENEZUELA 4.7% 3.4%
4
<PAGE>
ALLOCATION OF NET ASSETS
Metals/Basic Industries 23.8%
Short-Term & Other 2.0%
Capital Goods 4.2%
Consumer Non-Durables 11.4%
Multi Industry/Misc. 11.9%
Services 12.0%
Energy 16.1%
Finance 18.6%
Allocations will change based on current market conditions.
GT GLOBAL LATIN AMERICA GROWTH FUND
KEY PORTFOLIO HOLDINGS*
<TABLE>
<CAPTION>
% of
Country Net Assets
------- ----------
<S> <C> <C>
SAN LUIS An export-oriented conglomerate, San Luis is involved in mining and autoparts manufacture. Low MEXICO 4.6
costs and superior quality are helping the company gain market share in U.S. autoparts, and heavy investment
in mining is driving strong production growth.
GRUPO CARSO A conglomerate with holdings in Telmex (the Mexican telephone company, which accounts for MEXICO 4.4
35% of earnings), Condumex (the 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.
KIMBERLY-CLARK The largest manufacturer of diapers, tissue paper, notebooks and paper in Mexico. MEXICO 4.3
The company's management is conservative and has concentrated on lowering costs every year to retain
its competitive position in the marketplace.
BANCO ITAU S.A. Brazil's second-largest private sector bank, Banco Itau has a net worth of approximately BRAZIL 4.2
US$3 billion and almost 1,000 branches.
COMPANHIA CERVEJARIA BRAHMA The largest brewery in Brazil benefiting from strong consumption growth. BRAZIL 4.0
CEMEX, S.A. The largest producer of cement in Mexico, Cemex sells its ready-mix concrete and aggregates MEXICO 3.8
in 54 countries. In addition, the company constructs and operates hotels in Mexico.
ELETROBRAS Brazil's state-controlled holding company, Eletrobras is responsible for the planning, BRAZIL 3.7
coordination and financing of the country's electric utility sector. Its assets are primarily hydroelectric
electricity generation plants that collectively represent 47% of the country's generating capacity.
TELEBRAS Operator of Brazil's local and long-distance services. BRAZIL 3.7
BANCO BRADESCO S.A. The largest bank in Brazil, Banco Bradesco has about 10% of the market. BRAZIL 3.5
CIA DE MINAS BUENAVENTURA A mining company originally focused on production of silver. The company PERU 3.1
today has a significant shareholding in the Yanacocha gold mine, production from which is growing very rapidly.
</TABLE>
* There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report
5
<PAGE>
GT GLOBAL
LATIN AMERICA
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
REPORT OF
INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders of GT Global 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 GT
Global 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 April 30,
1996, the related statement of operations for the six months then ended, the
statements of changes in net assets for the six months then ended and for the
year ended October 31, 1995, and the financial highlights for the six months
ended April 30, 1996, for each of the four years in the period ended October 31,
1995 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 April
30, 1996 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 GT
Global Latin America Growth Fund as of April 30, 1996, the results of its
operations for the six months then ended, the changes in its net assets for the
six months then ended and for the year ended October 31, 1995, and the financial
highlights for the six months ended April 30, 1996, for each of the four years
in the period ended October 31, 1995 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
JUNE 14, 1996
F1
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (23.8%)
Kimberly-Clark de Mexico, S.A. de C.V. "A" ............. MEX 841,700 $ 15,427,385 4.3
PAPER/PACKAGING
Cemex, S.A. de C.V. "B" ................................ MEX 3,105,000 13,265,296 3.8
CEMENT
Cia de Minas Buenaventura "C" .......................... PERU 1,269,776 10,724,459 3.1
METALS - NON-FERROUS
Dixie Toga S.A. Preferred{::} -/- ...................... BRZL 7,768,460 7,282,931 2.1
PAPER/PACKAGING
Sociedad Quimica y Minera de Chile S.A. - ADR{\/} ...... CHLE 117,000 6,259,500 1.8
CHEMICALS
Aracruz Celulose S.A. - ADR{\/} ........................ BRZL 662,500 5,962,500 1.7
FOREST PRODUCTS
Companhia Vale do Rio Doce Preferred{z} ................ BRZL 299,400 5,493,024 1.6
METALS - NON-FERROUS
Companhia Siderurgica Nacional S.A.: ................... BRZL -- -- 1.4
METALS - STEEL
Common ............................................... -- 112,958,000 3,188,331 --
ADR{\/} .............................................. -- 57,500 1,610,000 --
La Cementos Nacional, C.A. - GDR{\/} ................... ECDR 18,176 2,799,104 0.8
CEMENT
Paranapanema S.A. Min., Ind. E Construacao Preferred ... BRZL 248,600,000 2,756,653 0.8
METALS - NON-FERROUS
Venezolana de Cementos, S.A.C.A.: ...................... VENZ -- -- 0.7
CEMENT
"A" .................................................. -- 1,448,419 2,596,518 --
"B" .................................................. -- 7 10 --
Venezolana de Prerreducidos Caroni C.A. (Venprecar) -
GDR{\/} ............................................... VENZ 270,500 1,555,375 0.4
METALS - STEEL
Empaques Ponderosa, S.A. de C.V. "B"-/- ................ MEX 770,000 1,546,226 0.4
PAPER/PACKAGING
Grupo Simec, S.A. de C.V. - ADR-/- {\/} ................ MEX 237,700 1,366,775 0.4
METALS - STEEL
Siderurgica Venezolana Sivensa (Sivensa) - ADR{\/} ..... VENZ 378,000 1,194,480 0.3
METALS - STEEL
Venezolana de Pulpa Y Papel "A" ........................ VENZ 916,738 653,399 0.2
FOREST PRODUCTS
------------
83,681,966
------------
Finance (18.6%)
Banco Itau S.A. Preferred{z} ........................... BRZL 37,330,000 14,600,847 4.2
BANKS-MONEY CENTER
Banco Bradesco S.A. Preferred .......................... BRZL 1,078,332,287 12,174,719 3.5
BANKS-MONEY CENTER
Grupo Financiero Banamex Accival, S.A. de C.V.
"B"-/- ................................................ MEX 3,265,000 7,533,261 2.2
BANKS-MONEY CENTER
Uniao Bancos Brasileiras "A" Preferred ................. BRZL 170,170,000 7,273,395 2.1
BANKS-MONEY CENTER
Administradora de Fondos de Pensiones Provida S.A. -
ADR{\/} ............................................... CHLE 245,300 5,611,238 1.6
OTHER FINANCIAL
Banco LatinoAmericano de Exportaciones S.A. (Bladex)
"E"-/- {\/} ........................................... PAN 91,700 5,077,888 1.5
OTHER FINANCIAL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Seguros Comercial America S.A. "B"-/- .................. MEX 11,416,000 $ 3,923,288 1.1
INSURANCE - MULTI-LINE
Inversiones y Representaciones S.A. (IRSA): ............ ARG -- -- 1.1
REAL ESTATE
Common ............................................... -- 778,500 2,351,305 --
GDR{\/} .............................................. -- 43,300 1,299,000 --
Grupo Financiero Bancomer, S.A. de C.V.: ............... MEX -- -- 1.0
BANKS-MONEY CENTER
"B"-/- ............................................... -- 7,167,000 3,187,480 --
"L"-/- ............................................... -- 817,296 290,790 --
Grupo Financiero BanCrecer, S.A. de C.V. "B"-/- ........ MEX 3,777,599 890,943 0.3
BANKS-MONEY CENTER
------------
64,214,154
------------
Energy (16.1%)
Centrais Eletricas Brasileiras S.A. (Eletrobras): ...... BRZL -- -- 3.7
ELECTRICAL & GAS UTILITIES
"B" Preferred{z} ..................................... -- 36,600,000 9,039,315 --
Common ............................................... -- 16,500,000 3,975,302 --
C.A. La Electricidad de Caracas ........................ VENZ 13,571,271 10,706,062 3.1
ELECTRICAL & GAS UTILITIES
Companhia Energetica de Minas Gerais (CEMIG): .......... BRZL -- -- 2.8
ELECTRICAL & GAS UTILITIES
ADR{\/} .............................................. -- 233,600 5,810,800 --
Preferred ............................................ -- 146,792,050 3,699,396 --
Compania Boliviana de Energia Electrica{::} {\/} ....... BOL 247,100 9,142,700 2.6
ELECTRICAL & GAS UTILITIES
Empresa Nacional de Electricidad S.A. - ADR-/- {\/} .... CHLE 223,400 4,356,300 1.3
ELECTRICAL & GAS UTILITIES
MetroGas S.A. - ADR{\/} ................................ ARG 400,000 4,200,000 1.2
ELECTRICAL & GAS UTILITIES
Petrobas Distribuidora S.A. Preferred .................. BRZL 157,545,000 3,335,126 1.0
ENERGY SOURCES
Electricidad de Argentina S.A.(.) -/- {\/} ............. ARG 110,857 1,507,655 0.4
ELECTRICAL & GAS UTILITIES
------------
55,772,656
------------
Services (12.0%)
Telecomunicacoes Brasileiras S.A. (Telebras) -
ADR{\/} ............................................... BRZL 235,000 12,719,375 3.7
TELEPHONE NETWORKS
Telecom Argentina S.A. - ADR{\/} ....................... ARG 203,500 9,208,375 2.6
TELEPHONE NETWORKS
Santa Isabel S.A. - ADR-/- {\/} ........................ CHLE 309,800 8,945,475 2.6
RETAILERS-FOOD
Lojas Americanas S.A. Preferred ........................ BRZL 256,735,469 5,952,536 1.7
RETAILERS-OTHER
Telefonos de Mexico, S.A. de C.V. "L" - ADR{\/} ........ MEX 75,000 2,550,000 0.7
TELEPHONE NETWORKS
Disco S.A. - ADR-/- {\/} ............................... ARG 148,000 2,349,500 0.7
RETAILERS-FOOD
------------
41,725,261
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Multi Industry/Miscellaneous (11.9%)
San Luis "CPO"{::} ..................................... MEX 2,701,000 $ 15,871,107 4.6
CONGLOMERATE
Grupo Carso, S.A. de C.V. "A1"-/- ...................... MEX 2,010,000 15,359,434 4.4
MULTI-INDUSTRY
Perez Companc S.A. "B 1 Vote" .......................... ARG 1,360,329 8,462,093 2.4
CONGLOMERATE
Grupo Sidek, S.A. de C.V.: ............................. MEX -- -- 0.5
CONGLOMERATE
ADR-/- {\/} .......................................... -- 805,500 1,308,938 --
"A"-/- ............................................... -- 980,000 273,396 --
------------
41,274,968
------------
Consumer Non-Durables (11.4%)
Companhia Cervejaria Brahma Preferred{z} ............... BRZL 28,900,000 13,896,472 4.0
BEVERAGES - ALCOHOLIC
Grupo Modelo S.A. "C" .................................. MEX 1,955,000 9,208,524 2.6
BEVERAGES - ALCOHOLIC
Grupo Industrial Maseca, S.A. de C.V. "B" .............. MEX 5,555,000 5,435,216 1.6
FOOD
Grupo Industrial Bimbo, S.A. de C.V. "A" ............... MEX 1,182,000 5,256,873 1.5
FOOD
Companhia Tecidos Norte de Mina Preferred .............. BRZL 9,921,300 4,160,545 1.2
TEXTILES & APPAREL
Compania Nacional de Chocolates S.A. ................... COL 130,800 1,096,261 0.3
FOOD
Jugos Del Valle S.A. "B"-/- ............................ MEX 412,000 544,151 0.2
BEVERAGES - NON-ALCOHOLIC
------------
39,598,042
------------
Capital Goods (4.2%)
Bufete Industrial, S.A. de C.V. - ADR-/- {\/} .......... MEX 454,900 7,960,750 2.3
CONSTRUCTION
Empresas ICA Sociedad Controladora, S.A. de C.V. -
ADR-/- {\/} ........................................... MEX 485,000 6,729,375 1.9
CONSTRUCTION
------------
14,690,125
------------ -----
TOTAL EQUITY INVESTMENTS (cost $315,891,135) ............. 340,957,172 98.0
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
RIGHTS (0.0%) COUNTRY RIGHTS VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Venezolana de Pulpa Y Papel "A" Rights, expire
5/20/96 ............................................... VENZ 247,061 128,936 --
FOREST PRODUCTS
Cia de Minas Buenaventura "C" Rights, expire 5/30/96 ... PERU 317,431 -- --
METALS - NON-FERROUS
------------ -----
TOTAL RIGHTS (cost $161,231) ............................. 128,936 --
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
<TABLE>
<CAPTION>
MARKET % OF NET
REPURCHASE AGREEMENT VALUE ASSETS
- ---------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated April 30, 1996, with State Street Bank & Trust
Company, due May 1, 1996, for an effective yield of
5.3%, collateralized by $13,295,000 U.S. Treasury Bill,
effective yield 5.2% due 9/26/96 (market value of
collateral is $13,018,211, including accrued interest).
(cost $12,760,878) ................................... $ 12,760,878 3.7
------------ -----
TOTAL INVESTMENTS (cost $328,813,244) * .................. 353,846,986 101.7
Other Assets and Liabilities ............................. (6,074,801) (1.7)
------------ -----
NET ASSETS ............................................... $347,772,185 100.0
------------ -----
------------ -----
<FN>
- --------------
{\/} U.S. currency denominated.
-/- Non-income producing security.
{z} Security is segregated as collateral for written futures. See Note
1 to Financial Statements.
(.) Restricted securities: At April 30, 1996, the Fund owned the
following restricted security constituting 0.4% of net assets which
may not be publicly sold without registration under the Securities
Act of 1933 (Note 1). Additional information on the restricted
security is as follows:
MARKET
VALUE
ACQUISITION PER
DESCRIPTION ACQUISITION DATE SHARES COST SHARE
----------------------------------------------- ----------------- ------ ----------- ------
Electricidad de Argentina S.A.................. 12/23/93 110,857 $ 1,939,998 $13.60
</TABLE>
{::} See Note 5 of Notes to Financial Statements.
* For Federal income tax purposes, cost is $334,818,693 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 50,706,587
Unrealized depreciation: (31,678,294)
-------------
Net unrealized appreciation: $ 19,028,293
-------------
-------------
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at April 30, 1996, 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) .................. 8.4 8.4
Bolivia (BOL/BOL) .................... 2.6 2.6
Brazil (BRZL/BRL) .................... 35.5 35.5
Chile (CHLE/CLP) ..................... 7.3 7.3
Colombia (COL/COP) ................... 0.3 0.3
Ecuador (ECDR/ECS) ................... 0.8 0.8
Mexico (MEX/MXN) ..................... 33.8 33.8
Panama (PAN/PND) ..................... 1.5 1.5
Peru (PERU/PES) ...................... 3.1 3.1
United States & Other (US/USD) ....... 2.0 2.0
Venezuela (VENZ/VEB) ................. 4.7 4.7
------ ----- -----
Total ............................... 98.0 2.0 100.0
------ ----- -----
------ ----- -----
<FN>
- --------------
{d} Percentages indicated are based on net assets of $347,772,185.
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
WRITTEN FUTURES CONTRACTS OUTSTANDING APRIL 30, 1996
<CAPTION>
<S> <C> <C> <C> <C>
EXPIRATION NO. OF MARKET
DESCRIPTION DATE CONTRACTS CURRENCY VALUE
----------------------------------------------- ----------- ----------- ----------- ---------
Brazilian Real Futures (face $30,041,080)...... 5/31/96 300 USD $30,041,080
</TABLE>
- --------------
See Note 1 to the Financial Statements.
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $328,813,244) (Note 1)........................... $353,846,986
U.S. currency................................................................... $ 693
Foreign currencies (cost $367,991).............................................. 369,802 370,495
---------
Dividends receivable....................................................................... 2,193,600
Receivable for securities sold............................................................. 1,072,499
Receivable for Fund shares sold............................................................ 851,038
Miscellaneous receivable................................................................... 31,551
Receivable for initial and variation margin (Note 1)....................................... 290,370
------------
Total assets............................................................................. 358,656,539
------------
Liabilities:
Payable for Fund shares repurchased........................................................ 9,557,208
Payable for securities purchased (Note 2).................................................. 508,534
Payable for investment management and administration fees.................................. 278,096
Payable for service and distribution expenses (Note 2)..................................... 201,173
Payable for transfer agent fees (Note 2)................................................... 175,533
Payable for printing and postage expenses.................................................. 63,419
Payable for custodian fees................................................................. 37,929
Payable for professional fees.............................................................. 36,335
Payable for registration and filing fees................................................... 10,568
Payable for fund accounting fees (Note 2).................................................. 7,073
Payable for Directors' fees and expenses (Note 2).......................................... 2,592
Other accrued expenses..................................................................... 5,894
------------
Total liabilities........................................................................ 10,884,354
------------
Net assets................................................................................... $347,772,185
------------
------------
Class A:
Net asset value and redemption price per share ($198,878,406 DIVIDED BY 11,366,713 shares
outstanding)................................................................................ $ 17.50
------------
------------
Maximum offering price per share (100/95.25 of $17.50) *..................................... $ 18.37
------------
------------
Class B:+
Net asset value and offering price per share ($148,267,842 DIVIDED BY 8,535,258 shares
outstanding)................................................................................ $ 17.37
------------
------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($625,937 DIVIDED
BY 35,974 shares outstanding)............................................................... $ 17.40
------------
------------
Net assets consist of:
Paid in capital (Note 4)................................................................... $424,281,917
Undistributed net investment income........................................................ 2,744,418
Accumulated net realized loss on investments and foreign currency transactions............. (104,280,487)
Net unrealized depreciation on translation of assets and liabilities in foreign
currencies................................................................................ (7,405)
Net unrealized appreciation of investments................................................. 25,033,742
------------
Total -- representing net assets applicable to capital shares outstanding.................... $347,772,185
------------
------------
<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.
F6
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
STATEMENT OF OPERATIONS
Six months ended April 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $375,941)............................... $6,056,238
Interest income............................................................................ 573,715
----------
Total investment income.................................................................. 6,629,953
----------
Expenses:
Investment management and administration fees (Note 2)..................................... 1,658,606
Transfer agent fees (Note 2)............................................................... 783,874
Service and distribution expenses: (Note 2)
Class A...................................................................... $ 501,940
Class B...................................................................... 691,405 1,193,345
----------
Custodian fees............................................................................. 112,722
Printing and postage expenses.............................................................. 80,990
Audit fees................................................................................. 42,702
Fund accounting fees (Note 2).............................................................. 42,673
Registration and filing fees............................................................... 36,208
Amortization of organization costs (Note 1)................................................ 16,576
Legal fees................................................................................. 14,014
Other expenses............................................................................. 8,304
Directors' fees and expenses (Note 2)...................................................... 7,824
----------
Total expenses before reductions......................................................... 3,997,838
----------
Expense reductions (Note 6)............................................................ (120,743)
----------
Total net expenses....................................................................... 3,877,095
----------
Net investment income........................................................................ 2,752,858
----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized loss on investments............................................... (1,721,494)
Net realized loss on foreign currency transactions............................. (3,240,369)
----------
Net realized loss during the period...................................................... (4,961,863)
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies......................................................... 633,045
Net change in unrealized appreciation of investments........................... 49,969,740
----------
Net unrealized appreciation during the period............................................ 50,602,785
----------
Net realized and unrealized gain on investments and foreign currencies....................... 45,640,922
----------
Net increase in net assets resulting from operations......................................... $48,393,780
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
1996 1995
------------- -------------
Increase (Decrease) in net assets
Operations:
Net investment income..................................................... $ 2,752,858 $ 2,650,890
Net realized loss on investments and foreign currency transactions........ (4,961,863) (98,872,602)
Net change in unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................. 633,045 (795,171)
Net change in unrealized appreciation (depreciation) of investments....... 49,969,740 (97,151,861)
------------- -------------
Net increase (decrease) in net assets resulting from operations......... 48,393,780 (194,168,744)
------------- -------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income................................................ (1,223,635) --
From net realized gain on investments..................................... -- (19,567,238)
Class B:
Distributions to shareholders: (Note 1)
From net investment income................................................ (135,358) --
From net realized gain on investments..................................... -- (14,468,347)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income................................................ (6,223) --
------------- -------------
Total distributions..................................................... (1,365,216) (34,035,585)
------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.......................... 712,609,603 1,098,477,187
Decrease from capital shares repurchased.................................. (729,223,546) (1,101,548,404)
------------- -------------
Net decrease from capital share transactions............................ (16,613,943) (3,071,217)
------------- -------------
Total increase (decrease) in net assets..................................... 30,414,621 (231,275,546)
Net assets:
Beginning of period....................................................... 317,357,564 548,633,110
------------- -------------
End of period............................................................. $347,772,185* $ 317,357,564**
------------- -------------
------------- -------------
<FN>
- --------------
* Includes undistributed net investment income of $2,744,418.
** Includes undistributed net investment income of $1,356,776.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH 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+
---------------------------------------------------------------------------
AUGUST 13,
1991
(COMMENCEMENT
SIX MONTHS OF OPERATIONS)
ENDED YEAR ENDED OCTOBER 31, TO
APRIL 30, ---------------------------------------------- OCTOBER 31,
1996 1995 (A) 1994 (A) 1993 (A) 1992 1991
----------- ---------- ---------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 15.38 $ 26.11 $ 19.78 $ 15.59 $ 16.45 $ 14.29
----------- ---------- ---------- ---------- ---------- --------------
Income from investment operations:
Net investment income (loss).......... 0.16 0.15 (0.08) 0.18 0.25 0.01
Net realized and unrealized gain
(loss) on investments................ 2.07 (9.28) 6.75 5.21 (0.98) 2.15
----------- ---------- ---------- ---------- ---------- --------------
Net increase (decrease) from
investment operations.............. 2.23 (9.13) 6.67 5.39 (0.73) 2.16
----------- ---------- ---------- ---------- ---------- --------------
Distributions to shareholders:
From net investment income............ (0.11) -- (0.19) (0.12) (0.13) --
From net realized gain on
investments.......................... -- (1.60) (0.15) (1.08) -- --
----------- ---------- ---------- ---------- ---------- --------------
Total distributions................. (0.11) (1.60) (0.34) (1.20) (0.13) --
----------- ---------- ---------- ---------- ---------- --------------
Net asset value, end of period.......... $ 17.50 $ 15.38 $ 26.11 $ 19.78 $ 15.59 $ 16.45
----------- ---------- ---------- ---------- ---------- --------------
----------- ---------- ---------- ---------- ---------- --------------
Total investment return (d)............. 14.57%(b) (37.16)% 34.10% 37.10% (4.50)% 15.10 %(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 198,878 $ 182,462 $ 336,960 $ 129,280 $ 94,085 $ 125,038
Ratio of net investment income (loss) to
average net assets..................... 1.81%(c) 0.86% (0.29)% 1.3%* 1.3%* 1.2 %*(c)
Ratio of expenses to average net assets:
With expense reductions (Note 6)...... 2.07%(c) 2.11% 2.04% 2.4%* 2.4%* 2.4 %*(c)
Without expense reductions............ 2.14%(c) 2.12% --%** --%** --%** -- %**
Portfolio turnover rate++++............. 87%(c) 125% 155% 112% 159% none
Average commission rate paid on
portfolio transactions++++............. $ 0.0200 N/A N/A N/A N/A N/A
</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 and average commission rates are calculated on the
basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* Includes reimbursement by LGT Asset 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.
** 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.
F9
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
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 B++
------------------------------------------------- ADVISOR CLASS+++
APRIL 1, --------------------------
SIX MONTHS YEAR ENDED OCTOBER 31, 1993 SIX MONTHS JUNE 1, 1995
ENDED TO ENDED TO
APRIL 30, ---------------------- OCTOBER 31, APRIL 30, OCTOBER 31,
1996 1995 (A) 1994 (A) 1993 (A) 1996 1995
----------- ---------- ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 15.21 $ 25.94 $ 19.75 $ 16.26 $ 15.40 $ 15.95
----------- ---------- ---------- ------------ ----------- -------------
Income from investment operations:
Net investment income (loss).......... 0.11 0.06 (0.22) (0.07) 0.19 0.09
Net realized and unrealized gain
(loss) on investments................ 2.07 (9.19) 6.74 3.56 2.02 (0.64)
----------- ---------- ---------- ------------ ----------- -------------
Net increase (decrease) from
investment operations.............. 2.18 (9.13) 6.52 3.49 2.21 (0.55)
----------- ---------- ---------- ------------ ----------- -------------
Distributions to shareholders:
From net investment income............ (0.02) -- (0.18) -- (0.21) --
From net realized gain on
investments.......................... -- (1.60) (0.15) -- -- --
----------- ---------- ---------- ------------ ----------- -------------
Total distributions................. (0.02) (1.60) (0.33) -- (0.21) --
----------- ---------- ---------- ------------ ----------- -------------
Net asset value, end of period.......... $ 17.37 $ 15.21 $ 25.94 $ 19.75 $ 17.40 $ 15.40
----------- ---------- ---------- ------------ ----------- -------------
----------- ---------- ---------- ------------ ----------- -------------
Total investment return (d)............. 14.32%(b) (37.42)% 33.33% 21.50 %(b) 14.86%(b) (3.45)%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 148,268 $ 134,527 $ 211,673 $ 13,576 $ 626 $ 369
Ratio of net investment income (loss) to
average net assets..................... 1.31%(c) 0.36% (0.79)% (0.7)%(c) 2.31%(c) 1.36%(c)
Ratio of expenses to average net assets:
With expense reductions (Note 6)...... 2.57%(c) 2.61% 2.54% 2.9 %*(c) 1.57%(c) 1.61%(c)
Without expense reductions............ 2.64%(c) 2.62% --%** -- %** 1.64%(c) 1.62%(c)
Portfolio turnover rate++++............. 87%(c) 125% 155% 112 % 87%(c) 125%
Average commission rate paid on
portfolio transactions++++............. $ 0.0200 N/A N/A N/A $ 0.0200 N/A
</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 and average commission rates are calculated on the
basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* Includes reimbursement by LGT Asset 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.
** 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.
F10
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
April 30, 1996
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global 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. 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, and
the financial statements may include certain estimates made by management.
(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 LGT Asset Management, Inc.
("LGT") 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 LGT
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 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 period
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
F11
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
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, unless a quotation from only one
broker is available, in which case only that broker's price will be used. 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 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. At April 30,
1996, the Fund had segregated securities valued at $34,892,540 and cash of
$290,370 to cover margin requirements on open futures contracts.
(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
F12
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GT GLOBAL LATIN AMERICA GROWTH FUND
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 were 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
LGT is the Fund's investment manager and administrator. The Fund pays investment
management and administration fees to LGT 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.
GT Global, Inc. ("GT Global"), an affiliate of LGT, is the Fund's distributor.
The Fund offers Class A, Class B and Advisor Class 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. GT 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 peiod ended April 30, 1996, GT Global retained $70,541
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. GT Global collected CDSCs in the
amount of $11,263 for the period ended April 30, 1996. GT 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, GT 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 period ended April 30, 1996, GT Global collected CDSCs in
the amount of $423,504. In addition, GT 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 GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, the Fund may pay GT 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 GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT 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 GT Global's expenditures incurred in providing services as distributor.
All expenses for which GT 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 GT 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 GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT 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 GT 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.
LGT and GT 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 LGT
of investment management and administration fees, waivers by GT Global of
payments under the Class A Plan and/or Class B Plan and/or
F13
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GT GLOBAL LATIN AMERICA GROWTH FUND
reimbursements by LGT or GT Global of portions of the Fund's other operating
expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of LGT and GT
Global, is the transfer agent of the Fund.
LGT is the pricing and accounting agent for the Fund. The monthly fee for these
services to LGT 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 LGT and
0.02% to the assets in excess of $5 billion and allocating the result according
to the Fund's average daily net assets.
The Company pays each of its Directors who is not an employee, officer or
director of LGT, GT Global or GT 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 period ended April 30, 1996, purchases and sales of investment
securities by the Fund, other than short-term investments, aggregated
$137,571,251 and $137,146,264. There were no purchases or sales of U.S.
government obligations for the period ended April 30, 1996.
4. CAPITAL SHARES
At April 30, 1996, 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 GT Global
Government Income Fund; 200,000,000 were classified as shares of GT Global
Health Care Fund; 200,000,000 were classified as shares of GT Global Strategic
Income Fund; 200,000,000 were classified as shares of GT Global Currency Fund
(inactive); 200,000,000 were classified as shares of GT Global Growth & Income
Fund; 200,000,000 were classified as shares of GT Global Small Companies Fund
(inactive); 200,000,000 were classified as shares of GT Global Natural Resources
Fund; 200,000,000 were classified as shares of GT Global Infrastructure Fund;
400,000,000 were classified as shares of GT Global Telecommunications Fund;
200,000,000 were classified as shares of GT Global Emerging Markets Fund; and
200,000,000 were classified as shares of GT Global Financial Services Fund;
200,000,000 were classified as shares of GT Global High Income Fund; and
200,000,000 were classified as shares of GT 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>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
-------------------------- --------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 37,591,196 $ 610,952,541 52,467,821 $ 904,752,193
Shares issued in connection with
reinvestment of distributions......... 66,849 1,023,792 673,780 16,139,240
----------- ------------- ----------- -------------
37,658,045 611,976,333 53,141,601 920,891,433
Shares repurchased...................... (38,155,611) (624,236,281) (54,183,599) (943,221,637)
----------- ------------- ----------- -------------
Net decrease............................ (497,566) $ (12,259,948) (1,041,998) $ (22,330,204)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
-------------------------- --------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 5,892,339 $ 95,121,707 9,341,199 $ 166,467,703
Shares issued in connection with
reinvestment of distributions......... 6,914 105,012 439,250 10,440,947
----------- ------------- ----------- -------------
5,899,253 95,226,719 9,780,449 176,908,650
Shares repurchased...................... (6,206,960) (99,819,709) (9,097,593) (158,042,884)
----------- ------------- ----------- -------------
Net increase (decrease)................. (307,707) $ (4,592,990) 682,856 $ 18,865,766
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT OF SALE OF
SIX MONTHS ENDED SHARES) TO OCTOBER 31,
APRIL 30, 1996 1995
-------------------------- --------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 332,937 $ 5,400,328 41,561 $ 677,104
Shares issued in connection with
reinvestment of distributions......... 408 6,223 -- --
----------- ------------- ----------- -------------
333,345 5,406,551 41,561 677,104
Shares repurchased...................... (321,311) (5,167,556) (17,621) (283,883)
----------- ------------- ----------- -------------
Net increase............................ 12,034 $ 238,995 23,940 $ 393,221
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
F14
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
5. 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 April 30, 1996 amounted to $32,296,738,
at value.
Transactions with affiliated companies are as follows:
<TABLE>
<CAPTION>
PURCHASES NET REALIZED DIVIDEND
AFFILIATES COST SALES COST GAIN (LOSS) INCOME
- ---------------------------------------- ---------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Compania Boliviana de Energia
Electrica.............................. $ -- $ -- $ -- $ 96,369
Dixie Toga S.A. Preferred............... 729,186 -- -- --
San Luis "CPO".......................... 5,394,408 -- -- 242,517
</TABLE>
6. EXPENSE REDUCTIONS
LGT has directed certain portfolio trades to brokers who paid a portion of the
Fund's expenses. For the period ended April 30, 1996, the Fund's expenses were
reduced by $120,743 under these arrangements.
F15
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
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 CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
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 SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap 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
[LOGO]
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
GT GLOBAL LATIN AMERICA GROWTH FUND
LATSAR606063M
