<PAGE>
LGT ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
GROWTH &
INCOME FUND
SEMIANNUAL REPORT
APRIL 30, 1996
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Report from the Fund
Managers and Key
Portfolio Holdings... 1
Financial
Statements........... F1
</TABLE>
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
PORTFOLIO SUMMARY
INVESTMENT OBJECTIVE/
CURRENT STRATEGY
The Fund seeks long-term capital appreciation and current income. In an
effort to meet both objectives, the types of securities that the Fund invests
in include common and convertible preferred stock of blue-chip companies as
well as high-quality government bonds from around the world. We continue to
focus our attention on the attractive opportunities we feel exist in Europe
in both the equity and debt markets.
PERFORMANCE SUMMARY
GT Global Growth & Income Fund
JP Morgan Global Govt Bond Index
MSCI World Index
Salomon World Govt Bond Index
GT GLOBAL GROWTH JP Morgan Global MSCI World Salomon World
& INCOME FUND Govt Bond Index Index Govt Bond Index
---------------- ---------------- --------- ---------------
9.25.90 9525 10000 10000 10000
9525 10045 9678 9997
9545 10443 10583 10444
9625 10625 10412 10617
9712 10744 10632 10722
10015 10987 11023 10990
10338 10997 12045 10993
10314 10653 11692 10594
10560 10781 11785 10758
10826 10791 12054 10743
10417 10647 11312 10632
10895 10872 11848 10859
11040 11098 11813 11070
11188 11503 12124 11503
11041 11616 12323 11624
10852 11806 11788 11805
11571 12402 12648 12419
11401 12159 12416 12199
11529 12124 12204 12131
11314 12012 11631 12002
11637 12112 11795 12087
12048 12456 12267 12458
11981 12796 11858 12807
11938 13078 11891 13105
11916 13426 12182 13472
11758 13412 12072 13607
11691 13077 11748 13237
11647 12846 11960 13027
11869 12967 12059 13105
12004 13187 12101 13332
12475 13399 12390 13594
12812 13605 13111 13803
6.30.93 12903 13853 13721 14095
13084 13941 14039 14236
13197 13952 13924 14206
13519 13958 14213 14246
14070 14371 14867 14674
14046 14523 14595 14848
14627 14516 14999 14823
14418 14410 14153 14717
15117 14557 14848 14842
15610 14694 15830 14962
14905 14533 15627 14864
14382 14466 14956 14843
14573 14455 15421 14860
14430 14336 15464 14729
14309 14506 15423 14942
14718 14642 15719 15061
14982 14604 16195 15009
14721 14677 15773 15117
15086 14897 16224 15360
14600 14709 15524 15149
14577 14743 15677 15190
14430 15042 15444 15509
14676 15429 15672 15906
14722 16214 16431 16851
15093 16473 17007 17162
15465 16933 17156 17646
15384 17038 17154 17750
15834 17119 18015 17791
15459 16643 17617 17180
15855 17018 18134 17564
16032 17184 17852 17695
16310 17376 18475 17895
16810 17591 19018 18082
16939 17410 19366 17859
17016 17309 19487 17768
17087 17282 19815 17743
4.30.96 17217 17218 20285 17672
The chart above shows the performance of the GT Global Growth & Income Fund,
Class A shares, since the Fund's inception versus the various indices shown
above. This represents a cumulative return of 72.17% and an average annual
total return of 10.19% 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 10/22/92 would have been valued at
$14,074 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 $11,185. 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.
AVERAGE ANNUAL TOTAL RETURNS+
APRIL 30, 1996
SHARE CLASS WITHOUT SALES CHARGE++ WITH SALES CHARGE
---------------------------- ----------------------------
1 YEAR 5 YEAR LIFE OF FUND 1 YEAR 5 YEAR LIFE OF FUND
------ ------ ------------ ------ ------ ------------
CLASS A* 14.07 10.27 11.15 8.65 9.20 10.19
CLASS B* 13.35 N/A 10.85 8.35 N/A 10.19
ADVISOR CLASS** N/A N/A 11.85 N/A N/A N/A
HISTORICAL PERFORMANCE++
ANNUAL RETURNS
1990 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ----
CLASS A 1.97* 19.14 2.58 27.36 -3.57 15.32
CLASS B N/A N/A 1.17* 26.80 -4.19 14.56
* The Fund began operations on September 25, 1990; Class B shares commenced
on October 22, 1992.
** 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 NICK TRAIN
Q HOW DID THE FUND PERFORM?
A For the six months ended April 30, 1996, the Fund's total return was 7.39%
for Class A shares (2.29% including the maximum 4.75% sales charge) and 7.06%
for Class B shares (2.06% including the maximum 5% contingent deferred sales
charge). Total return over the same investment period was 13.63% for the
Morgan Stanley Capital International (MSCI) World Index(1) and 0.2% for the
J.P. Morgan Global Government Bond Index.(2)
Q WHY DO YOU THINK THE FUND UNDERPERFORMED
THE MSCI WORLD INDEX?
A Our underexposure to the world's two largest stock markets, the U.S. and
Japan, cost us in terms of performance relative to the index. At the
beginning of the period, we found few stocks in the U.S., and none in Japan,
that met our purchase criteria; nevertheless, both markets performed well
over the period.
Q WHAT FACTORS AFFECTED THE FUND'S EQUITY
HOLDINGS? WHICH COMPANIES PERFORMED WELL?
A The main factors affecting the equity portion of the Fund have been
broadly favorable. Relatively robust growth in the U.S. and UK economies
unaccompanied, as yet, by any inflationary pressures, has meant company
profits have generally surprised positively. In addition, an active mergers
and acquisitions environment in the UK has benefited several of the Fund's
holdings, for example, Trafalgar House and MAI (now United News and Media),
which were involved in takeovers or mergers. Meanwhile, GKN and Granada, two
more substantial UK holdings, have made acquisitions that have boosted their
market value.
Central bank-set interest rates have continued to decline across continental
Europe throughout the period, although this decline has not yet produced a
sustained economic recovery in the region.
BUNDESBANK CONTINUES TO CUT RATES;
GERMAN ECONOMY CONTINUES TO WEAKEN
German GDP % German discount rate
year-on-year
- ------------- --------------------
2.4 5.25
3.0 4.50
2.9 4.50
3.7 4.50
2.7 4.00
2.6 4.00
2.1 3.50
1.0 3.00
0.3 3.00
At the end of the first quarter, Germany remained technically in recession,
with other core economies (France, Netherlands, Switzerland and Spain) not
faring much better. However, the trend toward cheaper money has benefited
European stock markets, especially in the Netherlands and France. The Fund's
Dutch financial holdings, such as ABN-AMRO and ING, performed well in this
environment, as have Swiss banks and the Swiss utility, Electro-watt.
Recently, Royal Dutch Shell surprised investors with much better quarterly
earnings than expected, and the stock has risen.
Elsewhere, a gradual shift by companies to more U.S.-style measures, focusing
on shareholder value - share buybacks, special dividends, mergers and hostile
takeovers - has benefited the Fund. Across the Fund's other holdings, Credit
Suisse has proposed a merger with Union Bank of Switzerland, BASF has
discussed the possibility of a divestiture with its shareholders, and we
believe CSF Thomson is likely to be a participant in the rationalization of
the European defense industry.
Continued strong economic growth in the Far East has benefited the Fund's
holdings in Hong Kong, Australia and New Zealand. The major positions in
these markets - Sun Hung Kai Properties, BHP and Telecom Corporation of New
Zealand - have all made steady gains.
Q WERE THERE ANY DISAPPOINTMENTS OR SURPRISES OVER
THE PERIOD? HOW SIGNIFICANT WAS THE CORRECTION IN
THE U.S. BOND MARKET IN FEBRUARY AND MARCH OF
THIS YEAR?
A The sluggish price performance of the Fund during the first four months of
1996 can largely be attributed to its average 30% bond exposure during the
period. The setback in the U.S. Treasury market in early 1996 was unexpected
and disappointing. Its effects on U.S. bond holdings were offset to an extent
by the bulk of the Fund's bond holdings which are in Europe, where we
continue to perceive greater value. However, even these markets were knocked
back by weakness in the U.S.
Our view on inflation is optimistic. We believe it will remain low in the
U.S., the UK and Australia, based on historical levels and virtually
non-existent inflation in continental Europe. Consequently, we continue to
find the income returns offered by government bonds attractive and expect
their capital value to rebound at some stage.
Q WHY WAS THE UK THE FUND'S SECOND LARGEST
COUNTRY HOLDING DURING THE PERIOD?
A The UK stock market is the third largest, behind the U.S. and Japan, and
one of the most attractive, in our opinion. The UK has been successful in
developing products and services that the rest of the world wants to buy. We
believe it has
CONTINUED P.3
2
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER CONTINUED
particular strengths in value-added services, such as banking, investment
management, insurance and media - all industries to which the Fund has
exposure.
In addition, UK companies have traditionally been managed in an
owner-friendly fashion. Like those in the U.S., UK companies are, by and
large, committed to annual real dividend increases, and underperforming
companies tend to be forced to rationalize or risk takeover.
We believe world-class UK companies with management open to the disciplines
of market forces are currently valued at quite moderate levels relative to
historical values. The price-to-earnings ratio of 15x is just above the
long-run average, while the price-to-cash value of 9.9x is below the world
average. Meanwhile, the historic dividend yield of 3.8% is one of the five
highest in the world, making UK equities look cheap compared to the local
bond market, at least relative to the last 20 years.
Finally, we expect improvement in the UK's economic performance, particularly
in terms of inflation. Currently below 3%, UK inflation is at its 30-year
low. Investors are skeptical that it will remain so restrained, and we can
foresee an uptick in the rate, perhaps to 4% in 1997; in our opinion, this
would still be an excellent showing by UK standards and leave the bond and
stock markets cheap.
Q WHAT HAS BEEN YOUR INVESTMENT FOCUS OVER THE
PAST SIX MONTHS?
A Within the bond content, we increased exposure to higher-yielding,
peripheral European markets, especially Italy. In equities, we gradually
reduced our exposure to Hong Kong as 1997 and the handover to the Chinese
approaches. We have focused the European equity content further on the
Netherlands, Germany and Switzerland where we expect the greatest rate cuts,
foresee the most activity in the corporate sector and look forward to
currency-enhanced returns relative to the U.S. dollar.
Q HOW WOULD YOU CHARACTERIZE THE OPPORTUNITIES
ACROSS EUROPE? WHICH SECTORS DO YOU LIKE?
A We believe Europe offers a classic "value" investment opportunity.
Price-to-earnings, price-to-book and price-to-cash ratios are the lowest in
the developed world, while dividend yields are among the highest, making
Europe "cheap" in our opinion.
Sluggish or near recession growth has persisted through most of the 1990s,
partly as a result of inappropriate central bank monetary policies, dictated
by politicians keen to implement economic union. In addition, European
corporations have historically failed to put shareholder interests first.
Often social considerations prevail, meaning that companies tolerate
inadequate rates of return on equity. Dividend growth rates, with one or two
exceptions, have therefore lagged those of the Anglo-Saxon economies.
However, we expect these twin negatives to dissipate somewhat over the next
few years, which, in our opinion, is likely to lead to good stock price
appreciation.
While central banks have been consistently cutting interest rates for over
two years, in our view, they have not yet done enough, given the swelling
unemployment in France and Germany. However, cheaper money and positively
sloped yield curves in Germany, France and elsewhere mean that liquidity
conditions are easier now than at any time over the past 10 years (according
to LGT's European economics team). This has already resulted in higher bond
and stock prices which we believe should eventually be reflected in the
performance of the real economy.
Meanwhile, the persistence of sluggish growth has forced companies to become
more "commercial." Unemployment has risen as companies have recognized the
need to retrench in order to stay in business. As a result, productivity has
begun to improve. In addition, quite unexpected steps have been taken by some
companies to merge or initiate takeovers in order to remove capacity from
industries with poor returns. We hope this is the start of a trend.
In terms of sectors, we continue to like interest rate-sensitive stocks,
believing that rising bond markets should benefit banks, insurers, utilities
and integrated oils. We also see scope for mergers in some of these sectors,
particularly banks. In addition, we feel some of the more cyclical sectors
like chemicals, electronics and other capital goods should do well, and we
expect improved growth prospects to benefit these stocks. Chemicals, in our
opinion, are particularly interesting; companies like BASF and Bayer in
Germany and Akzo in the Netherlands have substantial pharmaceutical
subsidiaries we do not believe are fairly appreciated by investors.
3
<PAGE>
ABOUT THE PORTFOLIO MANAGERS
NICK J. TRAIN - Portfolio Manager for LGT Asset Management since 1984;
Investment Analyst since 1981. Previous to working for LGT Asset Management,
Mr. Train received his B.A. from Oxford University.
PAUL GRIFFITHS - Portfolio Manager for LGT Asset Management since 1994.
Previous to working for LGT Asset Management, Mr. Griffiths was a Fund
Manager at Lazard Investors from 1993-1994 and Sanwa International from
1991-1993. He received his B.Sc from the University of York.
(1) The MSCI World Index is an arithmetic average, weighted by market
value, of the performance of 1,566 securities listed on major world stock
exchanges - the U.S., Europe, Canada, Australia, New Zealand and the Far
East. It includes the effect of reinvested dividends and is measured in
U.S. dollars.
(2) The J.P. Morgan Global Government Bond Index is an arithmetic average,
weighted by market value, of government bonds from 13 major bond markets.
It includes the effect of reinvested coupons and is measured in U.S.
dollars. The Fund has changed benchmarks from indices provided by Salomon
Brothers to indices provided by J.P. Morgan. Because the J.P. Morgan
indices use weightings based on liquidity, we consider them a better
reflection of the investment opportunities. The indices are not available
for investment and do not incur sales charges and professional management
fees.
GEOGRAPHIC ALLOCATION OF NET ASSETS
APRIL 30, 1996 APRIL 30, 1995
-------------- --------------
AUSTRALIA 7.1% 5.3%
BELGIUM 4.9% 4.4%
CANADA 0.7% 3.5%
CHILE - 0.6%
DENMARK 1.1% 1.7%
FRANCE 1.7% 2.7%
GERMANY 16.3% 13.3%
HONG KONG 2.7% 2.2%
ITALY 3.0% -
JAPAN - 1.5%
NETHERLANDS 7.4% 12.7%
NEW ZEALAND 1.9% 1.4%
NORWAY - 0.4%
SPAIN 2.4% 1.1%
SUPRANATIONAL - 1.5%
SWEDEN 2.3% 0.8%
SWITZERLAND 7.8% 6.4%
UK 17.1% 19.9%
UNITED STATES & OTHER 23.6% 20.6%
4
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
SECTOR ALLOCATION OF NET ASSETS AS OF APRIL 30, 1996
EQUITY
- ------
Finance 22.5%
Energy 13.0%
Materials/Basic Industry 7.2%
Services 7.2%
Capital Goods 4.4%
Consumer Non-Durables 4.2%
Health Care 3.1%
Multi Industry/Misc. 2.2%
Consumer Durables 1.6%
Technology 0.3%
FIXED INCOME INVESTMENTS
- ------------------------
Gov't Agency Obligations 26.8%
Corporate Bonds 4.9%
Short-Term & Other 2.6%
GT GLOBAL GROWTH & INCOME FUND
KEY PORTFOLIO HOLDINGS*
<TABLE>
<CAPTION>
% of
Country Net Assets
------- ----------
<S> <C> <C>
ELEKTROWATT AG A holding company that operates subsidiaries which generate and sell electricity, SWITZERLAND 2.8
the company also has interests in hydro and nuclear power plants.
SWISS BANK CORP. Offering a broad range of banking operations, including foreign exchange and SWITZERLAND 2.0
bank note dealings, precious metal trading, mortgages and building loans, Swiss Bank has operations
throughout Switzerland and an extensive network of international subsidiaries.
BROKEN HILL PROPRIETARY COMPANY This Australian-based international natural resources AUSTRALIA 1.9
company has extensive interests in oil, gas, steel and mining. We believe its shares will respond
to investor expectations of higher growth in the developed world.
ROYAL DUTCH PETROLEUM CO. One of the largest oil companies worldwide, Royal Dutch is a key NETHERLANDS 1.8
player in the energy industry, both within Europe and on a global basis. Its success is based on a
proven track record of exploration together with well-run marketing and chemical activities.
BRISTOL MEYERS SQUIBB This well-established company offers a wide range of prescription and U.S. 1.8
non-prescription drugs, medical devices, health and skin care products, toiletries and beauty aids.
TELECOM CORPORATION OF NEW ZEALAND LTD. This full-service telecommunications company NEW ZEALAND 1.9
provides local, national and international telephone activities that offer cellular, directories, leased
circuits, mobile radio, paging and data communications.
UNION BANK OF SWITZERLAND Union Bank provides a wide range of banking and financial services, SWITZERLAND 1.6
including retail banking and basic banking services, corporate finance, merchant banking, investment
counseling and portfolio management, trading, and risk management. The company also invests in
real estate.
GKN The premier UK engineering company, GKN holds high market shares in niche areas such as UK 1.6
constant velocity joints for autos and industrial pallets.
NATIONAL AUSTRALIA BANK (NAB) One of Australia's largest banks, NAB enjoys a successful record AUSTRALIA 1.4
of asset growth and diversification that has driven dividends to 9.4% annually over the past five years.
AEGON NV Aegon writes insurance, offers mortgage financing, equipment leasing, property NETHERLANDS 1.4
management services and operates resorts through its subsidiaries.
</TABLE>
* There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report
5
<PAGE>
GT GLOBAL
GROWTH &
INCOME FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (22.5%)
Swiss Bank Corp. - Bearer .............................. SWTZ 34,795 $ 13,035,510 2.0
BANKS-MONEY CENTER
Union Bank of Switzerland - Bearer ..................... SWTZ 10,652 10,590,209 1.6
BANKS-MONEY CENTER
National Australia Bank Ltd. ........................... AUSL 1,031,872 9,256,129 1.4
BANKS-MONEY CENTER
AEGON N.V. ............................................. NETH 187,875 8,949,562 1.4
INSURANCE-LIFE
CS Holding AG - Registered ............................. SWTZ 98,500 8,947,692 1.4
BANKS-MONEY CENTER
ING Groep N.V. ......................................... NETH 105,705 8,163,906 1.3
OTHER FINANCIAL
First Tennessee National Corp. ......................... US 245,400 8,098,200 1.2
BANKS-REGIONAL
ABN AMRO Holding N.V. .................................. NETH 115,974 6,005,192 0.9
BANKS-REGIONAL
American General Corp. ................................. US 170,000 5,971,250 0.9
INSURANCE-LIFE
Deutsche Bank AG ....................................... GER 112,500 5,394,500 0.8
BANKS-MONEY CENTER
Lloyds Abbey Life PLC .................................. UK 599,000 4,809,292 0.7
INSURANCE-LIFE
Sun Hung Kai Properties Ltd.-/- ........................ HK 494,500 4,714,851 0.7
REAL ESTATE
Generale de Banque S.A. ................................ BEL 13,420 4,702,972 0.7
BANKS-MONEY CENTER
IKB Deutsche Industriebank AG .......................... GER 23,600 4,411,215 0.7
BANKS-REGIONAL
National Westminster Bank PLC .......................... UK 471,800 4,344,873 0.7
BANKS-MONEY CENTER
Mercury Asset Management Group PLC ..................... UK 296,698 3,994,784 0.6
INVESTMENT MANAGEMENT
Fortis Amev N.V. ....................................... NETH 54,017 3,859,709 0.6
OTHER FINANCIAL
General Accident PLC ................................... UK 400,000 3,800,932 0.6
INSURANCE - PROPERTY-CASUALTY
Kredietbank N.V. ....................................... BEL 12,980 3,692,657 0.6
BANKS-REGIONAL
Dresdner Bank AG ....................................... GER 132,350 3,331,888 0.5
BANKS-MONEY CENTER
Commercial Union PLC ................................... UK 361,550 3,133,868 0.5
INSURANCE - MULTI-LINE
M & G Group PLC ........................................ UK 155,000 2,843,181 0.4
INVESTMENT MANAGEMENT
Henderson Investment Ltd. .............................. HK 2,691,000 2,348,319 0.4
REAL ESTATE
Banco de Santander S.A. ................................ SPN 48,750 2,265,926 0.3
BANKS-MONEY CENTER
Gerrard & National Holdings PLC ........................ UK 375,880 2,237,986 0.3
SECURITIES BROKER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Amoy Properties Ltd. ................................... HK 1,581,500 $ 1,778,804 0.3
REAL ESTATE
Societe Generale Paris ................................. FR 12,280 1,426,111 0.2
BANKS-MONEY CENTER
Banco Popular Espanol S.A. ............................. SPN 7,880 1,306,413 0.2
BANKS-MONEY CENTER
Compagnie Financiere de Paribas S.A. ................... FR 18,332 1,179,436 0.2
OTHER FINANCIAL
Realty Development Corp., Ltd. "A" ..................... HK 280,000 975,566 0.2
REAL ESTATE
UAP Compagnie .......................................... FR 42,367 917,617 0.1
INSURANCE - MULTI-LINE
Commerzbank AG ......................................... GER 2,250 487,468 0.1
BANKS-MONEY CENTER
------------
146,976,018
------------
Energy (13.0%)
Elektrowatt AG ......................................... SWTZ 45,508 17,855,620 2.8
ELECTRICAL & GAS UTILITIES
Royal Dutch Petroleum Co. .............................. NETH 80,550 11,478,257 1.8
OIL
Electrabel S.A. ........................................ BEL 34,760 7,800,559 1.2
ELECTRICAL & GAS UTILITIES
Exxon Corp. ............................................ US 91,300 7,760,500 1.2
OIL
Mobil Corp. ............................................ US 63,800 7,337,000 1.1
OIL
RWE AG ................................................. GER 134,620 5,243,678 0.8
ELECTRICAL & GAS UTILITIES
Pacific Gas and Electric Co. ........................... US 220,000 5,005,000 0.8
ELECTRICAL & GAS UTILITIES
Reunies Electrobel & Tractebel S.A. .................... BEL 11,587 4,723,562 0.7
ELECTRICAL & GAS UTILITIES
Shell Transport & Trading Co., PLC ..................... UK 324,700 4,279,049 0.7
OIL
Groupe Bruxelles Lambert S.A. .......................... BEL 31,025 4,082,756 0.6
OIL
Elf Aquitaine .......................................... FR 52,475 3,903,250 0.6
OIL
British Gas PLC ........................................ UK 459,500 1,630,462 0.3
GAS PRODUCTION & DISTRIBUTION
Iberdrola S.A. ......................................... SPN 134,000 1,312,072 0.2
ELECTRICAL & GAS UTILITIES
Union Electrica Fenosa S.A. ............................ SPN 206,000 1,232,922 0.2
ELECTRICAL & GAS UTILITIES
------------
83,644,687
------------
Materials/Basic Industry (7.2%)
Broken Hill Proprietary Co., Ltd. ...................... AUSL 818,096 12,588,564 1.9
MISC. MATERIALS & COMMODITIES
Amcor Ltd. ............................................. AUSL 1,214,546 8,719,622 1.3
PAPER/PACKAGING
Monsanto Co. ........................................... US 52,600 7,968,900 1.2
CHEMICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Solvay S.A. "A" ........................................ BEL 11,754 $ 6,911,920 1.1
CHEMICALS
Akzo Nobel N.V. ........................................ NETH 51,450 5,976,970 0.9
CHEMICALS
BASF AG ................................................ GER 18,080 4,939,180 0.8
CHEMICALS
------------
47,105,156
------------
Services (7.2%)
Telecom Corporation of New Zealand Ltd.: ............... NZ -- -- 1.9
TELEPHONE NETWORKS
Common ............................................... -- 2,614,200 11,092,177 --
ADR{\/} .............................................. -- 19,000 1,282,500 --
McGraw-Hill, Inc. ...................................... US 162,000 7,148,250 1.1
BROADCASTING & PUBLISHING
Dun & Bradstreet Corp. ................................. US 109,800 6,684,075 1.0
BROADCASTING & PUBLISHING
United News & Media PLC ................................ UK 591,991 6,172,692 1.0
BROADCASTING & PUBLISHING
Granada Group PLC, Convertible Preferred, 7.5% till
4/30/03 ............................................... UK 1,040,000 4,370,471 0.7
LEISURE & TOURISM
THORN EMI PLC .......................................... UK 140,000 3,878,364 0.6
LEISURE & TOURISM
Royal PTT Nederland N.V. ............................... NETH 86,335 3,240,712 0.5
TELEPHONE NETWORKS
Cathay Pacific Airways ................................. HK 1,393,000 2,431,222 0.4
TRANSPORTATION - AIRLINES
------------
46,300,463
------------
Capital Goods (4.4%)
General Electric PLC ................................... UK 1,473,000 7,939,716 1.2
AEROSPACE/DEFENSE
BICC PLC ............................................... UK 1,221,500 6,372,884 1.0
INDUSTRIAL COMPONENTS
Lockheed Martin Corp. .................................. US 69,545 5,607,066 0.9
AEROSPACE/DEFENSE
Siemens AG ............................................. GER 6,953 3,809,359 0.6
TELECOM EQUIPMENT
Thomson CSF S.A. ....................................... FR 62,560 1,666,168 0.3
AEROSPACE/DEFENSE
Hopewell Holdings Ltd. ................................. HK 2,631,000 1,607,172 0.2
CONSTRUCTION
Trafalgar House PLC: ................................... UK -- -- 0.2
MACHINERY & ENGINEERING
Convertible Preferred, 6% till 1/31/49-/- ............ -- 1,236,000 1,468,135 --
Common-/- ............................................ -- 131,000 97,497 --
------------
28,567,997
------------
Consumer Non-Durables (4.2%)
Avon Products, Inc. .................................... US 91,000 8,087,625 1.2
PERSONAL CARE/COSMETICS
Philip Morris Cos., Inc. ............................... US 85,000 7,660,625 1.2
FOOD
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (Continued)
Universal Corp. ........................................ US 280,500 $ 6,732,000 1.0
TOBACCO
Brown-Forman Corp. "B" ................................. US 93,600 3,697,200 0.6
BEVERAGES - ALCOHOLIC
Dairy Farm International Holdings Ltd.{\/} ............. HK 1,390,000 1,292,700 0.2
FOOD
------------
27,470,150
------------
Health Care (3.1%)
Bristol Myers Squibb Co. ............................... US 138,700 11,408,075 1.8
PHARMACEUTICALS
Bayer AG ............................................... GER 25,860 8,332,122 1.3
PHARMACEUTICALS
------------
19,740,197
------------
Multi Industry/Miscellaneous (2.2%)
VEBA AG ................................................ GER 170,200 8,464,950 1.3
CONGLOMERATE
Pacific Dunlop Ltd.-/- ................................. AUSL 1,630,000 3,969,076 0.6
MULTI-INDUSTRY
Hutchison Whampoa ...................................... HK 283,000 1,756,173 0.3
MULTI-INDUSTRY
------------
14,190,199
------------
Consumer Durables (1.6%)
GKN PLC ................................................ UK 685,800 10,130,785 1.6
------------
AUTO PARTS
Technology (0.3%)
Alcatel Alsthom Compagnie Generale d'Electricite ....... FR 21,860 2,056,317 0.3
TELECOM TECHNOLOGY
------------ -----
TOTAL EQUITY INVESTMENTS (cost $332,129,262) ............. 426,181,969 65.7
------------ -----
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (26.8%)
Australia (1.9%)
Australian Government, 8.75% due 1/15/01 ............. AUD 15,200,000 12,093,975 1.9
Canada (0.6%)
Canadian Government, 8.75% due 12/1/05 ............... CAD 5,000,000 3,905,825 0.6
Denmark (1.1%)
Kingdom of Denmark, 8% due 3/15/06 ................... DKK 40,000,000 7,140,120 1.1
Germany (7.1%)
Deutschland Republic:
6.75% due 4/22/03 .................................. DEM 26,000,000 17,772,302 2.7
6.25% due 1/4/24 ................................... DEM 23,000,000 13,473,662 2.1
Bundesschatzanweisungen, 6.875% due 12/2/98 .......... DEM 14,635,000 10,204,615 1.6
Treuhandanstalt, 6.375% due 7/1/99 ................... DEM 7,000,000 4,823,737 0.7
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ---------------------------------------------------------- -------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (Continued)
Italy (3.0%)
Italian Buoni Poliennali del Tesoro (BTPS):
10.5% due 9/01/05 .................................. ITL 20,490,000,000 $ 13,825,171 2.1
10.5% due 4/15/98 .................................. ITL 9,000,000,000 5,935,618 0.9
Spain (1.5%)
Kingdom of Spain, 10.3% due 6/15/02 .................. ESP 1,162,430,000 9,777,120 1.5
Sweden (2.3%)
Swedish Government, 6% due 2/9/05 .................... SEK 117,600,000 15,019,861 2.3
United Kingdom (3.5%)
United Kingdom Treasury:
6.75% due 11/26/04 ................................. GBP 11,902,000 16,552,924 2.6
9.5% due 1/15/99 ................................... GBP 3,600,000 5,737,483 0.9
United States (5.8%)
United States Treasury Note:
7.25% due 5/15/04 .................................. USD 8,600,000 8,876,813 1.4
7.5% due 2/15/05 ................................... USD 8,050,000 8,444,953 1.3
6.5% due 8/15/05 ................................... USD 4,000,000 3,932,500 0.6
United States Treasury Bond:
6.25% due 8/15/23 .................................. USD 10,000,000 9,012,500 1.4
6.875% due 8/15/25 ................................. USD 7,400,000 7,295,938 1.1
------------
Total Government & Government Agency Obligations (cost
$170,953,436) ........................................... 173,825,117
------------
Corporate Bonds (4.9%)
Canada (0.1%)
Horsham Corp., Convertible Bond, 3% due 1/29/21 ...... USD 796,000 837,790 0.1
Germany (2.3%)
Siemens Capital Corp., 8% due 6/24/02+/+ ............. USD 4,710,000 6,405,600 1.0
Deutsche Bank AG, 9% due 12/31/02+/+ ................. DEM 5,625,000 4,428,019 0.7
Commerzbank AG, Convertible Bond, 9.45% due
12/31/00+ ........................................... DEM 4,173,000 3,878,182 0.6
United Kingdom (2.5%)
Daily Mail & General Trust, Convertible Bond, 5.75%
due 9/26/03 ......................................... GBP 3,405,000 8,063,261 1.2
Land Securities PLC, Convertible Bond, 9.375% due
7/31/04 ............................................. GBP 3,485,000 5,821,433 0.9
Elf Enterprises Finance PLC, 8.75% due 6/27/06 ....... GBP 1,465,000 2,230,210 0.4
------------
Total Corporate Bonds (cost $29,178,002) ................. 31,664,495
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $200,131,438) ....... 205,489,612 31.7
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL GROWTH & INCOME 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 $6,365,000 U.S. Treasury Bills,
effective yield 5.2% due 9/26/96 (market value of
collateral is $6,232,487, including accrued interest).
(cost $6,109,899) ..................................... 6,109,899 0.9
------------ -----
TOTAL INVESTMENTS (cost $538,370,599) * .................. 637,781,480 98.3
Other Assets and Liabilities ............................. 11,346,489 1.7
------------ -----
NET ASSETS ............................................... $649,127,969 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
+ The coupon rate shown on floating rate note represents the rate at
period end.
+/+ Issued with detachable warrants or value recovery rights. The
current market value of each warrant or right is zero.
* For Federal income tax purposes, cost is $538,609,565 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 110,825,345
Unrealized depreciation: (11,653,430)
-------------
Net unrealized appreciation: $ 99,171,915
-------------
-------------
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
The Fund's Portfolio of Investments at April 30, 1996, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 5.2 1.9 7.1
Belgium (BEL/BEF) .................... 4.9 4.9
Canada (CAN/CAD) ..................... 0.7 0.7
Denmark (DEN/DKK) .................... 1.1 1.1
France (FR/FRF) ...................... 1.7 1.7
Germany (GER/DEM) .................... 6.9 9.4 16.3
Hong Kong (HK/HKD) ................... 2.7 2.7
Italy (ITLY/ITL) ..................... 3.0 3.0
Netherlands (NETH/NLG) ............... 7.4 7.4
New Zealand (NZ/NZD) ................. 1.9 1.9
Spain (SPN/ESP) ...................... 0.9 1.5 2.4
Sweden (SWDN/SEK) .................... 2.3 2.3
Switzerland (SWTZ/CHF) ............... 7.8 7.8
United Kingdom (UK/GBP) .............. 11.1 6.0 17.1
United States & Other (US/USD) ....... 15.2 5.8 2.6 23.6
------ ----- ----- -----
Total ............................... 65.7 31.7 2.6 100.0
------ ----- ----- -----
------ ----- ----- -----
<FN>
- --------------
{d} Percentages indicated are based on net assets of $649,127,969.
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
(U.S. CONTRACT DELIVERY UNREALIZED
CONTRACTS TO SELL: DOLLARS) PRICE DATE APPRECIATION
- ---------------------------------------- ------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Deutsche Marks.......................... 30,249,123 1.51500 05/31/96 $ 245,927
French Francs........................... 1,374,238 5.09840 05/06/96 18,356
French Francs........................... 3,735,735 5.05405 05/17/96 82,727
Netherland Guilders..................... 12,317,564 1.64460 05/15/96 512,303
Swiss Francs............................ 14,189,726 1.18835 05/20/96 620,725
------------ ------------
Total Contracts to Sell (Receivable
amount $63,346,424)................ 61,866,386 1,480,038
------------ ------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 9.53%
Total Open Forward Foreign Currency
Contracts, Net..................... $1,480,038
------------
------------
</TABLE>
- --------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $538,370,599) (Note 1)......................... $637,781,480
U.S. currency................................................................. $ 890 --
Foreign currencies (cost $2,833,646).......................................... 2,831,189 2,832,079
---------
Interest and interest withholding tax reclaims receivable................................ 4,871,080
Receivable for securities sold........................................................... 2,030,699
Dividends and dividend withholding tax reclaims receivable............................... 1,860,246
Receivable for open forward foreign currency contracts, net (Note 1)..................... 1,480,038
Receivable for Fund shares sold.......................................................... 1,093,209
Cash held as collateral for securities loaned (Note 1)................................... 123,138,469
------------
Total assets........................................................................... 775,087,300
------------
Liabilities:
Payable for Fund shares repurchased...................................................... 1,600,197
Payable for investment management and administration fees (Note 2)....................... 519,569
Payable for service and distribution expenses (Note 2)................................... 386,194
Payable for printing and postage expenses................................................ 145,933
Payable for transfer agent fees (Note 2)................................................. 97,296
Payable for professional fees............................................................ 25,701
Payable for custodian fees (Note 1)...................................................... 22,634
Payable for fund accounting fees (Note 2)................................................ 12,973
Payable for Directors' fees and expenses (Note 2)........................................ 3,053
Payable for registration and filing fees................................................. 2,990
Distribution payable (Note 1)............................................................ 2,426
Other accrued expenses................................................................... 1,896
Collateral for securities loaned (Note 1)................................................ 123,138,469
------------
Total liabilities...................................................................... 125,959,331
------------
Net assets................................................................................. $649,127,969
------------
------------
Class A:
Net asset value and redemption price per share
($274,661,160 DIVIDED BY 41,300,151 shares outstanding)................................... $ 6.65
------------
------------
Maximum offering price per share (100/95.25 of $6.65) *.................................... $ 6.98
------------
------------
Class B:+
Net asset value and offering price per share
($371,871,608 DIVIDED BY 55,905,328 shares outstanding)................................... $ 6.65
------------
------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share
($2,595,201 DIVIDED BY 389,962 shares outstanding)........................................ $ 6.66
------------
------------
Net assets consist of:
Paid in capital (Note 4)................................................................. $563,119,821
Undistributed net investment income...................................................... 705,764
Accumulated net realized loss on investments and foreign currency transactions........... (15,473,531)
Net unrealized appreciation on translation of assets and liabilities in foreign
currencies.............................................................................. 1,365,034
Net unrealized appreciation of investments............................................... 99,410,881
------------
Total -- representing net assets applicable to capital shares outstanding.................. $649,127,969
------------
------------
<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.
F8
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
STATEMENT OF OPERATIONS
Six months ended April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income........................................................................... $ 8,175,295
Dividend income (net of foreign withholding tax of $506,509).............................. 5,890,990
-----------
Total investment income................................................................. 14,066,285
-----------
Expenses:
Investment management and administration fees (Note 2).................................... 3,172,545
Service and distribution expenses: (Note 2)
Class A..................................................................... $ 499,801
Class B..................................................................... 1,839,925 2,339,726
----------
Transfer agent fees (Note 2).............................................................. 638,857
Custodian fees (Note 1)................................................................... 227,944
Printing and postage expenses............................................................. 91,159
Fund accounting fees (Note 2)............................................................. 81,850
Registration and filing fees.............................................................. 21,476
Audit fees................................................................................ 20,749
Legal fees................................................................................ 12,923
Directors' fees and expenses (Note 2)..................................................... 10,824
Other expenses............................................................................ 11,734
-----------
Total expenses before reductions........................................................ 6,629,787
-----------
Expense reductions (Notes 1 & 5)...................................................... (191,376)
-----------
Total net expenses...................................................................... 6,438,411
-----------
Net investment income....................................................................... 7,627,874
-----------
Net realized and unrealized gain on investments and foreign currencies: (Note 1)
Net realized gain on investments.............................................. 5,403,374
Net realized gain on foreign currency transactions............................ 3,960,254
----------
Net realized gain during the period..................................................... 9,363,628
Net change in unrealized appreciation on translation of assets and liabilities
in foreign currencies........................................................ 1,667,522
Net change in unrealized appreciation of investments.......................... 26,817,152
----------
Net unrealized appreciation during the period........................................... 28,484,674
-----------
Net realized and unrealized gain on investments and foreign currencies...................... 37,848,302
-----------
Net increase in net assets resulting from operations........................................ $45,476,176
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995
---------------- ----------------
<S> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income......................................................... $ 7,627,874 $ 22,728,600
Net realized gain (loss) on investments and foreign currency transactions..... 9,363,628 (17,910,394)
Net change in unrealized appreciation (depreciation) on translation of assets
and liabilities in foreign currencies........................................ 1,667,522 (583,752)
Net change in unrealized appreciation of investments.......................... 26,817,152 32,281,086
---------------- ----------------
Net increase in net assets resulting from operations........................ 45,476,176 36,515,540
---------------- ----------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income.................................................... (5,039,897) (10,790,288)
From net realized gain on investments......................................... (2,148,887) (506,546)
Class B:
Distributions to shareholders: (Note 1)
From net investment income.................................................... (5,349,639) (10,618,028)
From net realized gain on investments......................................... (2,707,258) (580,255)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income.................................................... (36,362) (18,236)
From net realized gain on investments......................................... (7,165) --
---------------- ----------------
Total distributions......................................................... (15,289,208) (22,513,353)
---------------- ----------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.............................. 107,409,328 150,425,919
Decrease from capital shares repurchased...................................... (130,277,912) (199,707,569)
---------------- ----------------
Net decrease from capital share transactions................................ (22,868,584) (49,281,650)
---------------- ----------------
Total increase (decrease) in net assets......................................... 7,318,384 (35,279,463)
Net assets:
Beginning of period........................................................... 641,809,585 677,089,048
---------------- ----------------
End of period................................................................. $ 649,127,969* $ 641,809,585**
---------------- ----------------
---------------- ----------------
<FN>
- --------------
* Includes undistributed net investment income of $705,764.
** Includes undistributed net investment income of $3,503,788.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL GROWTH & INCOME 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+
-----------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1996 ----------------------------------------------------------
(UNAUDITED) 1995 1994 1993 (D) 1992 1991
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating
Performance:
Net asset value,
beginning of period..... $ 6.35 $ 6.21 $ 6.29 $ 5.28 $ 5.25 $ 4.77
----------- ---------- ---------- ---------- ---------- ----------
Income from investment
operations:
Net investment
income................ 0.09 0.24 0.22 0.24* 0.21* 0.27*
Net realized and
unrealized gain (loss)
on investments........ 0.38 0.13 (0.03) 1.05 0.10 0.47
----------- ---------- ---------- ---------- ---------- ----------
Net increase
(decrease) from
investment
operations.......... 0.47 0.37 0.19 1.29 0.31 0.74
----------- ---------- ---------- ---------- ---------- ----------
Distributions to
shareholders:
From net investment
income................ (0.12) (0.22) (0.21) (0.24) (0.14) (0.26)
From net realized gain
on investments........ (0.05) (0.01) (0.06) -- (0.14) --
From sources other than
net investment
income................ -- -- -- (0.04) -- --
----------- ---------- ---------- ---------- ---------- ----------
Total
distributions....... (0.17) (0.23) (0.27) (0.28) (0.28) (0.26)
----------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of
period.................. $ 6.65 $ 6.35 $ 6.21 $ 6.29 $ 5.28 $ 5.25
----------- ---------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ---------- ----------
Total investment
return (e).............. 7.39%(a) 6.27% 3.14% 25.1% 5.9% 15.68%
Ratios and supplemental
data:
Net assets, end of period
(in 000's).............. $ 274,661 $ 284,069 $ 317,847 $ 251,428 $ 27,754 $ 71,376
Ratio of net investment
income to average net
assets.................. 2.69%(b) 3.85% 3.30% 3.3%* 4.1%* 5.0%*
Ratio of expenses to
average net assets:
With expense reductions
(Notes 1 & 5)......... 1.60%(b) 1.70% 1.67% 1.8%* 1.9%* 1.9%*
Without expense
reductions............ 1.66%(b) 1.74% --%** --%** --%** --%**
Portfolio turnover
rate++++................ 32%(b) 83% 117% 24% 53% 46%
Average commission rate
paid on portfolio
transactions++++........ $ .0206 N/A N/A N/A N/A N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of October 21, 1992 were
reclassified as Class A shares.
++ Commencing October 22, 1992, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
class of shares issued.
* Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.005, $0.02, and $0.03 for the year ended October 31,
1993, 1992 and 1991, respectively. Without such reimbursements, the
expense ratios would have been 1.93%, 2.20% and 2.46% and the net
investment income to average net assets would have been 3.20%, 3.70%
and 4.40%, for the year ended October 31, 1993, 1992 and 1991,
respectively.
* * Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) Not annualized.
(b) Annualized.
(c) Ratios are not meaningful due to short period of operations of Class B
shares.
(d) These selected per share data were calculated based upon weighted
average shares outstanding during the year.
(e) Total investment return does not include sales charges.
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL GROWTH & INCOME 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+++
------------------------------------------------------------- ---------------------------
SIX MONTHS OCTOBER 22, SIX MONTHS
ENDED 1992 ENDED JUNE 1, 1995
APRIL 30, YEAR ENDED OCTOBER 31, TO APRIL 30, TO
1996 ---------------------------------- OCTOBER 31, 1996 OCTOBER 31,
(UNAUDITED) 1995 1994 1993 (D) 1992 (D) (UNAUDITED) 1995
----------- ---------- ---------- ---------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating
Performance:
Net asset value,
beginning of period..... $ 6.35 $ 6.21 $ 6.29 $ 5.28 $ 5.29 $ 6.35 $ 6.24
----------- ---------- ---------- ---------- ------------ ------------ -------------
Income from investment
operations:
Net investment
income................ 0.07 0.20 0.18 0.20 0.01 0.10 0.11
Net realized and
unrealized gain (loss)
on investments........ 0.38 0.13 (0.03) 1.05 (0.02) 0.38 0.13
----------- ---------- ---------- ---------- ------------ ------------ -------------
Net increase
(decrease) from
investment
operations.......... 0.45 0.33 0.15 1.25 (0.01) 0.48 0.24
----------- ---------- ---------- ---------- ------------ ------------ -------------
Distributions to
shareholders:
From net investment
income................ (0.10) (0.18) (0.17) (0.20) -- (0.12) (0.13)
From net realized gain
on investments........ (0.05) (0.01) (0.06) -- -- (0.05) --
From sources other than
net investment
income................ -- -- -- (0.04) -- -- --
----------- ---------- ---------- ---------- ------------ ------------ -------------
Total
distributions....... (0.15) (0.19) (0.23) (0.24) -- (0.17) (0.13)
----------- ---------- ---------- ---------- ------------ ------------ -------------
Net asset value, end of
period.................. $ 6.65 $ 6.35 $ 6.21 $ 6.29 $ 5.28 $ 6.66 $ 6.35
----------- ---------- ---------- ---------- ------------ ------------ -------------
----------- ---------- ---------- ---------- ------------ ------------ -------------
Total investment
return (e).............. 7.06%(a) 5.57% 2.48% 24.3% (0.2)%(a) 7.72 %(a) 3.83%(a)
Ratios and supplemental
data:
Net assets, end of period
(in 000's).............. $ 371,872 $ 356,796 $ 359,242 $ 150,768 $ 280 $ 2,595 $ 944
Ratio of net investment
income to average net
assets.................. 2.04%(b) 3.20% 2.65% 2.6% N/A(c) 3.04 %(b) 4.20%(b)
Ratio of expenses to
average net assets:
With expense reductions
(Notes 1 & 5)......... 2.25%(b) 2.35% 2.32% 2.5% N/A(c) 1.25 %(b) 1.35%(b)
Without expense
reductions............ 2.31%(b) 2.39% --%** --%** -- %**(c) 1.31 %(b) 1.39%(b)
Portfolio turnover
rate++++................ 32%(b) 83% 117% 24% 53 % 32 %(b) 83%
Average commission rate
paid on portfolio
transactions++++........ $ .0206 N/A N/A N/A N/A $ .0206 N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of October 21, 1992 were
reclassified as Class A shares.
++ Commencing October 22, 1992, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
class of shares issued.
* Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.005, $0.02, and $0.03 for the year ended October 31,
1993, 1992 and 1991, respectively. Without such reimbursements, the
expense ratios would have been 1.93%, 2.20% and 2.46% and the net
investment income to average net assets would have been 3.20%, 3.70%
and 4.40%, for the year ended October 31, 1993, 1992 and 1991,
respectively.
* * Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) Not annualized.
(b) Annualized.
(c) Ratios are not meaningful due to short period of operations of Class B
shares.
(d) These selected per share data were calculated based upon weighted
average shares outstanding during the year.
(e) Total investment return does not include sales charges.
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
NOTES TO
FINANCIAL STATEMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Growth & Income 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 a maturity of 60 days
or less are valued at amortized cost adjusted for foreign exchange translation
and market fluctuations, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
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 of the Fund 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 difference 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
F13
<PAGE>
GT GLOBAL GROWTH & INCOME 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 amounts 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 set aside cash, U.S. government
securities, or other liquid, high grade debt securities in an amount not less
than the exercise price or otherwise provide adequate cover at all times while
the put option is outstanding. The 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.
(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. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to 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) PORTFOLIO SECURITIES LOANED
At April 30, 1996, stocks with an aggregate value of approximately $116,218,824
were on loan to brokers. The loans were secured by cash collateral of
$123,138,469. For international securities, cash collateral is received by the
Fund against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For domestic securities, cash
collateral is received by the Fund against loaned securities in an amount at
least equal to 102% of the market value of the loaned securities at the
inception of each loan. This collateral must be maintained at not less than 100%
of the market value of the loaned securities during the period of the loan. For
the period ended April 30, 1996, the Fund received $180,442 of income from
securities lending which was used to offset the Fund's custody expenses.
F14
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
(I) 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
$24,154,904, which expires in 2003.
(J) 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.
(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 price of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(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% on
the first $500 million of average daily net assets of the Fund; 0.95% on the
next $500 million; 0.925% on 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, serves as 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 period ended April 30, 1996, GT Global retained $34,661
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 $1,744 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 CDSC's in
the amount of $709,464. 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 0.35% 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.
F15
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
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 1.85%, 2.50%, and 1.50% of the average
daily 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 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 and U.S. government
obligations, aggregated $82,004,518 and $103,928,533, respectively. Purchases
and sales of U.S. government obligations were $20,653,125 and $33,517,500,
respectively, 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 Latin America
Growth Fund; 200,000,000 were classified as shares of GT Global Small Companies
Fund (inactive); 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; 200,000,000 were classified as shares of GT Global
Financial Services Fund; 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; 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:
F16
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995
------------------------- --------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 8,121,320 $ 53,239,616 11,447,072 $ 70,539,906
Shares issued in connection with
reinvestment of distributions......... 938,361 6,093,302 1,579,506 9,534,463
----------- ------------ ----------- -------------
9,059,681 59,332,918 13,026,578 80,074,369
Shares repurchased...................... (12,476,181) (82,128,729) (19,470,580) (119,773,578)
----------- ------------ ----------- -------------
Net decrease............................ (3,416,500) $(22,795,811) (6,444,002) $ (39,699,209)
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995
------------------------- --------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 5,448,608 $ 35,870,481 9,868,499 $ 60,082,182
Shares issued in connection with
reinvestment of distributions......... 1,038,468 6,751,601 1,542,069 9,322,768
----------- ------------ ----------- -------------
6,487,076 42,622,082 11,410,568 69,404,950
Shares repurchased...................... (6,731,480) (44,290,285) (13,074,922) (79,926,629)
----------- ------------ ----------- -------------
Net decrease............................ (244,404) $ (1,668,203) (1,664,354) $ (10,521,679)
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
JUNE 1, 1995
SIX MONTHS ENDED (COMMENCEMENT OF SALE OF
APRIL 30, 1996 SHARES) TO OCTOBER 31,
(UNAUDITED) 1995
------------------------- --------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 819,165 $ 5,410,801 146,947 $ 928,364
Shares issued in connection with
reinvestment of distributions......... 6,657 43,527 2,927 18,236
----------- ------------ ----------- -------------
825,822 5,454,328 149,874 946,600
Shares repurchased...................... (584,571) (3,858,898) (1,163) (7,362)
----------- ------------ ----------- -------------
Net increase............................ 241,251 $ 1,595,430 148,711 $ 939,238
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
5. 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 $10,934 under these arrangements.
F17
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL GROWTH & INCOME 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 GROWTH & INCOME FUND
G&ISAR606054M
