<PAGE>
LGT ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
THEME FUNDS
SEMIANNUAL REPORT
APRIL 30, 1996
[LOGO]
<PAGE>
GT GLOBAL
THEME FUNDS
TABLE OF CONTENTS
Message from the Chairman........................2
Introduction to Theme Funds......................3
GT Global
Consumer Products
and Services Fund................................4
GT Global
Principal Services Fund..........................8
GT Global
Health Care Fund................................12
GT Global
Infrastructure Fund.............................16
GT Global
Natural Resources Fund..........................20
GT Global
Telecommunications Fund.........................24
Financials.....................................F-1
Inside Back
List of Funds................................Cover
<PAGE>
MESSAGE FROM THE CHAIRMAN
Dear Investor,
Exciting changes have taken place this year at GT Global Mutual Funds. In
January, the Fund's investment advisor, G.T. Capital Management, changed its
name to LGT Asset Management to reflect the integration of the GT Group and the
Bank of Liechtenstein. LGT Asset Management and GT Global are members of the
Liechtenstein Global Trust, a $46 billion organization with 1,600 employees in
18 countries. The new structure strengthens our capabilities and gives investors
access to a broader range of products, services and expertise.
Now, as part of our ongoing commitment to provide the highest-quality
shareholder communications, we've changed our semiannual report to highlight
important aspects of your investments. We have also enhanced the content and
redesigned the format to make it more readable and informative.
GT Global Theme Funds enable allocation among industry groups we believe will
do well in the global economy. Just as investors might allocate assets to
capitalize on regional trends, Theme Funds allow you to allocate investments
among global industry themes. We have organized these Funds into one report
to give you the opportunity to familiarize yourself with additional
investment options.
We're proud of the past performance of these Funds, and continue to be
enthusiastic about their long-term potential. We also remain focused on
providing above-average investment performance and top-quality service for
investors in our Funds. Thank you for your continued confidence.
If you and your adviser have additional questions regarding the GT Global
Theme Funds, please call us at 1-800-824-1580. One of our registered
representatives will be happy to assist you.
Sincerely,
David A. Minella
CHAIRMAN
GT GLOBAL MUTUAL FUNDS
2
<PAGE>
GT GLOBAL THEME FUNDS
GT Global Theme Funds provide investors access to a new dimension of global
investing. Each fund is structured to include multiple industries which, in
combination, represent important global investment themes. From health care to
natural resources to telecommunications, these themes are central to our modern
lives and make up the gears that work together that make global growth possible.
As the world economy becomes ever more global, we believe it is increasingly
appropriate for investors to expand their investment options by investing in
specific industries as well as in regions. With GT Global Theme Funds, you and
your advisor can evaluate how one or more of these six globally diversified
funds can help you realize your investment goals.
The Funds are based on themes which we believe will continue to gain importance
over the years to come:
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Seeking to benefit from the changing needs of the new global consumer, the
Fund's portfolio invests in companies that manufacture, market, retail or
distribute consumer products and services.
GT GLOBAL FINANCIAL SERVICES FUND
Focusing globally on issuers in the financial services industries, such as
banks, brokerage and investment advisory firms, and insurance companies, this
Fund centers on the worldwide growth potential of capital markets.
GT GLOBAL HEALTH CARE FUND
Searching out promising issuers in the global health care industries, including
pharmaceutical, biotechnology, health care services, and medical technology and
supply companies around the world, this Fund emphasizes the increased health
care needs of the world's aging population and the growing need for health care
in emerging markets.
GT GLOBAL INFRASTRUCTURE FUND
Seeking to capitalize on the growing need for energy, transportation and
communications in emerging markets and the need to upgrade existing
infrastructure in developed markets, the Fund's portfolio invests in companies
that build, upgrade and repair basic infrastructure.
GT GLOBAL NATURAL RESOURCES FUND
Concentrating on companies that own, explore or develop natural resources,
including precious and base metals, fossil fuels, forest and agricultural
products, the GT Global Natural Resources Fund seeks to benefit from a rise in
global industrial production and, secondarily, related business and inflationary
cycles.
GT GLOBAL TELECOMMUNICATIONS FUND
Concentrating on companies engaged in the development, manufacture or sale of
telecommunications services or equipment, the Fund seeks to benefit from the
growth in worldwide demand for information and the means by which it travels.
3
<PAGE>
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Portfolio Summary
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The Fund seeks long-term capital growth by investing primarily in securities of
companies throughout the world that manufacture, market, retail or distribute
consumer products and services. The Fund seeks companies that we believe are
well positioned to benefit from demographic and economic trends, and have strong
earnings growth and fundamentals.
PERFORMANCE SUMMARY
GT GLOBAL CONSUMER PRODUCTS
AND SERVICES FUND MSCI World Index
--------------------------- ----------------
12.30.95 9525 10000
9467 9852
9533 9997
9858 10481
9708 10849
9867 10943
1050 10942
1140 11492
8.31.95 1154 11238
1208 11567
1215 11387
1247 11785
1289 12132
1310 12353
1357 12431
1447 12640
4.30.96 1535 12939
The chart above shows the performance of the GT Global Consumer Products and
Services Fund, Class A shares, versus the MSCI World Index since the Fund's
inception. This represents a cumulative return of 53.52% and an average
annual total return of 37.89% 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 on12/30/94 would have been valued at
$15,612 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 $15,654.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
Share Class Without Sales Charge++ With Sales Charge
---------------------- -----------------
1 Year Life of Fund 1 Year Life of Fund
------ ------------ ------ ------------
Class A* 58.13 43.01 50.62 37.89
Class B* 57.36 42.31 52.36 39.63
Advisor Class** N/A 56.54 N/A N/A
* The Fund began operations on December 30, 1994.
** 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.
++ This performance data does 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.
4
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER DEREK WEBB
Q HOW HAS THE FUND PERFORMED IN THE PAST SIX MONTHS?
A The Fund has done extremely well. Total return from November 1, 1995, to
April 30, 1996, was 26.27% for Class A shares (20.27% including the maximum
4.75% sales charge), and 25.96% for Class B shares (20.96% including the
maximum effect of the 5% contingent deferred sales charge). To put that in
perspective, the Fund's benchmark, the Morgan Stanley Capital International
(MSCI) World Index1 returned 13.63%. It's important to note that the index
doesn't fully reflect the Fund's concentration in consumer products and
services companies, is not professionally managed and does not incur expenses.
Q WHAT WERE THE MAJOR FACTORS AFFECTING THE FUND'S PERFORMANCE? WHICH STOCKS
WERE STRONG CONTRIBUTORS?
A Currently, the Fund's performance tends to be less impacted by
macroeconomic cycles and more affected by individual company selection. We
focus on whether we think a company offers a superior product or service and
its ability to consistently grow sales of that product or service. For
example, in the six-month period November 1, 1995 to April 30, 1996, five
stocks held by the Fund - Ross Stores, Fila Holdings SPA, CompUSA, Adidas,
and Nike - had returns in excess of 50%. These companies represent a range of
industries, and were chosen for their strong fundamentals rather than for the
industry segment they represent.
Q HOW WOULD YOU DESCRIBE YOUR INVESTMENT STRATEGY?
A We select companies whose earnings growth, in our opinion, is likely to
outpace expectations. We look for companies with potential for positive
quarterly earnings surprises and positive earnings revisions by Wall Street
analysts. In addition, we invest in companies we believe display strong
fundamentals, such as high return on equity, low debt and highly predictable
earnings and cash flow.
At the end of April, the Fund was invested in the following industry groups:
services (34.5%), consumer non-durables (45.2%), consumer durables (6.3%),
technology (3.1%), finance (3.1%), and short-term & other (7.8%).
Q WHY IS THE LARGEST PORTION OF THE FUND'S HOLDINGS IN U.S. EQUITIES?
A Although we remain overweighted in the U.S., (73.6%) relative to its
other holdings (Europe 13.2%, Asia 6.8%, and Canada 6.4%), we reduced our
U.S. multinational companies (companies that have a significant portion of
international revenues) weighting because we believe these stocks are
overvalued. However, we increased our holdings in domestic U.S. companies
because we're finding more that fit our investment strategy. The U.S. portion
of the portfolio is currently 24% in U.S. multinational companies; and 76% in
U.S. domestic companies.
We expect to remain heavily weighted in the U.S. because of the many
attractive consumer product companies domiciled there. We plan to increase
the foreign weightings if and when the U.S. goes into a bear market.
Q HOW DOES THE GROWTH RATE OF EMERGING MARKETS COMPARE TO THAT OF DEVELOPED
MARKETS? WHAT DOES THAT MEAN FOR SALES OF CONSUMER PRODUCTS?
A Gross domestic product (GDP) of the emerging markets has been rising at
a faster rate than the GDP of the developed world. While emerging market
nations have enjoyed GDP growth at an average of 5.2% per year since 1989,
G-7 (the U.S., Japan, Germany, Italy, France, the UK and Canada) GDP has
grown at a mere 2.0%. Looking forward, the International Monetary
CONTINUED P.6
RISING INCOME IN DEVELOPING ECONOMIES
Developing Established
Economies Economies
---------- -----------
1985 3.3 5.3
2.8 4.9
3.2 5.6
1988 4.3 5.3
3.2 4
2.1 3.7
1991 0.2 4.2
1.5 6.1
1.2 6.1
1994 2.4 4.2
1.9 3.9
1996 1.8 4.4
In developing economies, we believe that rising incomes are creating not only a
new class of consumers, but more money to spend on products and services.
Source: World Economic Outlook, various editions 1985-1995.
5
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER CONTINUED
Fund estimates that developing world GDP will grow 6.3% in 1996, versus 2.4% for
the developed world.
Historically, higher emerging market growth rates have generally translated
into increased sales of consumer products. As countries increase their
wealth, consumers tend to spend a lower percentage of their total income on
basic necessities such as food, and more of their income on luxury items. For
example, in Asia there is a strong correlation between GDP per capita and the
percentage of income spent on food. In Vietnam, Indonesia, China and the
Philippines, where annual per capita income is low ($200-$800), the
percentage of income spent on food is very high (55%-78%). In Hong Kong and
Singapore, where the annual per capita income is higher ($18,000), the
percentage of income spent on food is lower (15%-18%).
Q WHAT'S YOUR OUTLOOK FOR THE CONSUMER PRODUCTS AND SERVICES INDUSTRIES?
SHOULD INVESTORS EXPECT THIS LEVEL OF PERORMANCE TO CONTINUE?
A While the Fund has performed well over the past six months, we realize that
emerging markets and consumer demand can be volatile. However, overall we're
optimistic about the outlook for global consumerism. Global economic growth is
expected to remain healthy over the medium term with a corresponding rise in
income levels, which has historically resulted in increased purchases of
consumer products and services. We believe these consumer products and services
companies will remain attractive investments in light of their attributes.
Consumer products and services companies often have distinguished franchises or
name-brand products that tend to compete more on perceived value than strictly
on price. Many consumer products are also repetitive purchases, bought over and
over, making them less dependent on business cycles. In addition, there's always
new "must-have" toys, refrigerators that need to be replaced, and children who
need new clothes. Many consumer product companies tend to have low fixed assets
and high, unrestricted cash flows. High cash generation allows many of these
companies to reinvest in core businesses, make acquisitions, repurchase stock or
debt, or increase their dividend.
ABOUT THE PORTFOLIO MANAGER
Derek Webb, CFA - Portfolio Manager for LGT Asset Management since 1994, and a
Research Analyst since 1992. He received an M.B.A. from Wharton Business School.
Mr. Webb began his career on Wall Street in 1983.
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
ALLOCATION OF NET ASSETS
APRIL 30, 1996 APRIL 30, 1995
-------------- --------------
Consumer Non-Durables 45.2% 22.8%
Services 34.5% 14.9%
Consumer Durables 6.3% 13.3%
Technology 3.1% -
Finance 3.1% 3.9%
Retailers - 16.5%
Beverages - Alcoholic - 7.4%
Textiles & Apparel - 4.3%
Short-Term & Other 7.8% 16.9%
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.
The index is not available for investment and does not incur sales charges and
professional management fees.
6
<PAGE>
GEOGRAPHIC ALLOCATION OF NET ASSETS
Asia-Pacific 6.8%
Europe 13.2%
North America & Other 80.0%
Allocations will change based on current market conditions.
A complete listing may be found in the financials.
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
KEY PORTFOLIO HOLDINGS*
<TABLE>
<CAPTION>
% of
Country Net Assets
<S> <C> <C>
AMWAY JAPAN LTD. Involved in door-to-door marketing of detergents, cosmetics, kitchenware and Japan 4.8
related products.
HEINEKEN N.V. An international beverage producer, with 58% of Heineken's sales in Europe, Netherlands 3.8
followed by 18% in the United States, 18% in Asia, and the balance in Africa and Latin America.
It has benefited from increased beer sales in both developed and emerging markets.
IMAX CORP. This company's designs and supplies projection and sound systems and produces and Canada 3.3
distributes films for large screen theaters. Its theater systems combine advanced high resolution
projection systems, sound systems and screens up to 80 feet high to produce realistic
audio-visual experiences. Imax has a network of 108 theaters in 18 countries.PepsiCo, Inc.
Operated on a worldwide basis in the soft drink, snack food and restaurant business U.S. 3.3
segments. PepsiCo provides products that include Pepsi, Slice and Mountain Dew soft drinks and
Frito-Lay snack foods. The company also operates Pizza Hut, Taco Bell and Kentucky Fried Chicken
restaurants worldwide.
MORNINGSTAR GROUP, INC. Morningstar is a national manufacturer and marketer of refrigerated U.S. 3.2
specialty food products such as dairy-based cultured and ultra high temperature pasteurized
products. Brand names include International Delight, a non-dairy, gourmet-flavored coffee
creamer, Second Nature, an egg product and Lactaid, a lactose reduced fluid milk product.
ANTHONY INDUSTRIES, INC. A diversified manufacturer of leisure time products such as fishing U.S. 3.2
tackle, snow skis, flotation vests, life jackets, swimming pools, mountain bicycles and
sportswear apparel, the company also produces industrial goods which include monofilaments,
fiberglass lightpoles and antennas, building and coating products.
GAP, INC. Operated stores that sell tops, shorts, sweaters, jackets and jeans for children and U.S. 3.2
adults, including approximately 1,680 Gap, GapKids, Banana Republic and Old Navy stores
throughout the United States.
AMC ENTERTAINMENT, INC. Through its wholly-owned subsidiary, American Multi-Cinema, Inc., AMC U.S. 3.2
operates multi-screen picture theaters. The company provides service through about 232 theaters
with a total of 1,630 screens in 22 states and the District of Columbia.
BELMONT HOMES, INC. Produces and markets competitively priced single and double section U.S. 3.2
manufactured homes under the Premier and Glenwood names. Belmont Homes has approximately 290
dealers and 400 sales centers located primarily in the southern United States.
BARCO N.V. A holding company for various companies including Barco Automation, which markets Belgium 3.2
investment products for use in the textile, plastics and rubber industries; Barco Display Systems
Group, which produces monitors for use in the aviation, shipping and vehicle industries; and
Barco Chromatics and American Company, which provides air traffic control, energy management and
meteorology subsystems.
</TABLE>
*There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
7
<PAGE>
GT GLOBAL FINANCIAL SERVICES FUND
Portfolio Summary
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The Fund seeks long-term growth of capital by investing primarily in the
equity securities of companies around the world that operate in the financial
services industry, including those engaged in banking, insurance, investment
management, brokerage and diversified financial activities. The Fund invests
in financial services companies that, among other things, we believe will be
experiencing rising profitability.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Financial
Services Fund MSCI World Index MSCI Banking Index
------------------- ---------------- ------------------
<S> <C> <C> <C>
5.31.94 9,525 10,000 10,000
9,525 9,974 10,012
9,508 10,165 10,010
9,950 10,473 10,042
9,683 10,200 9,707
9,683 10,492 9,971
9,283 10,039 9,542
9,075 10,138 9,631
8,825 9,987 9,507
8,650 10,135 9,550
8,408 10,626 9,943
4.30.95 8,583 10,998 10,534
9,242 11,094 10,648
9,400 11,093 10,141
9,850 11,650 10,915
9,942 11,393 10,355
10,117 11,727 10,736
9,933 11,544 10,355
10,458 11,947 11,041
10,805 12,299 11,566
11,007 12,524 11,437
10,990 12,602 11,374
11,158 12,814 11,648
4.30.96 11,411 13,118 11,818
</TABLE>
The chart above shows the performance of the GT Global Financial Services Fund,
Class A shares, since the Fund's inception versus the MSCI World Index and the
MSCI Banking Index. This represents a cumulative return of 14.11% and an average
annual total return of 7.12% 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 5/31/94 would have been valued at $11,463 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
$12,403. 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 Life of Fund 1 Year Life of Fund
------ ------------ ------ ------------
Class A* 32.94 9.88 26.63 7.12
Class B* 32.29 9.32 27.29 7.38
Advisor Class** N/A 24.03 N/A N/A
* The Fund began operations on May 31, 1994.
** 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.
8
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER JAMES ELLMAN
Q HOW DID THE FUND PERFORM?
A The Fund performed well. For the six months ended April 30, 1996, the
Fund's total return was 14.87% for Class A shares (9.42% including the maximum
4.75% sales charge) and 14.62% for Class B shares (9.62% including the maximum
5% contingent deferred sales charge). Total return over the same investment
period was 14.12% for the Morgan Stanley Capital International (MSCI) Banking
Index1 and 13.63% for the MSCI World Index.2
Q OVER 60% OF THE FUND'S ASSETS WERE INVESTED OUTSIDE THE U.S., OF WHICH
EMERGING MARKETS REPRESENTED A SIGNIFICANT PORTION.* WHY INVEST IN
FINANCIAL COMPANIES IN EMERGING MARKETS?
A Emerging economies offer tremendous growth potential. While over the past
10 years GDP per capita for developing economies has grown nearly twice the rate
of developed markets, financial services penetration is still very low. As
living standards in these countries have improved, the demand for financial
services has grown rapidly and become increasingly more sophisticated. Despite
the short-term volatilities of these markets, over the long term we expect this
trend to continue, fueling profitability of emerging markets financial services
companies.
Q WHICH INDUSTRIES HAVE DONE PARTICULARLY WELL OVER THE PAST SIX MONTHS?
A The Fund's largest holdings were in the U.S., where financial services
companies performed well in an environment of declining interest rates. In
general, they experienced strong profitability as aging baby boomers have
increased their demand for financial products. The Fund's holdings in several
smaller U.S. banks enjoyed solid share price appreciation as they were acquired
by larger banks. Additionally, the Fund benefited from its positions in Irish
and Thai banks and from a careful selection among Japanese consumer finance
companies.
Q YOU HAVE A RELATIVELY LARGE POSITION IN JAPANESE ASSETS. HOW HAVE THE
FUND'S HOLDINGS FARED DURING THE ECONOMIC DOWNTURN AND CRISIS IN THAT
NATION'S BANKING INDUSTRY?
A We remain cautious about developments in Japan. The Fund holds very little
in large Japanese commercial bank shares because of asset quality problems left
over from the "bubble economy" of the 1980s. Instead, we have invested in small
business and consumer lenders that are not burdened with bad debt. We have also
purchased shares of the largest four securities companies - Nomura, Nikko, Daiwa
and Yamaichi - which have performed well as stock market levels and volumes
recovered over the last year.
Q WHAT IS DRIVING CONSOLIDATION IN THE U.S. BANKING INDUSTRY?
A Ongoing changes in government regulation and advances in technology have
largely been responsible for the rapid pace of consolidation in the financial
services industry. As a result, banks have become increasingly efficient,
expanding their product offerings and thereby better positioning themselves to
increase profitability over the longer term. These changes have contributed
significantly to the Fund's performance, and we expect them to continue to do
so.
Q WHAT OTHER IMPACT HAS NEW TECHNOLOGY HAD ON THE FINANCIAL SERVICES
INDUSTRY? COULD YOU GIVE AN EXAMPLE OF A COMPANY THAT HAS BENEFITED THE
FUND?
A Technology has allowed banks to streamline their operations and improve
profitability. Furthermore, as technology has become more sophisticated,
banks have been able to expand operations through telephone and ATM services,
thereby eliminating some of the more expensive, traditional means of
distributing financial services.
A long-term holding of the Fund, Transaction Network Services, Inc., a
processor of consumer credit card transactions, is a prime example of the
impact technology can have on a company's bottom line. As the number of
transactions has accelerated over the last several years, the company's
revenues, margins and profits have significantly increased.
CONTINUED P.10
TRANSACTION NETWORK SERVICES, INC.
Accelerating volume in millions of transactions processed
1Q92 1Q93 1Q94 1Q95 1Q96
---- ---- ---- ---- ----
400 401
300 250 240 290 334 353
200 116 151 157 195 224
100 12 22 35 49 57
0 85
Source: Institutional Research (company reports). Company data on Transaction
Network Services, Inc.
9
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER Continued
Q WHAT HAS BEEN YOUR INVESTMENT FOCUS OVER THE PAST SIX MONTHS?
A Overall, the Fund has increased emphasis on opportunities outside the U.S.
Within the U.S., we have concentrated on smaller regional banks, particularly
those in areas where large acquisitions have recently occurred, as we expect
those companies to gain market share. In addition, we have become increasingly
positive on financial services companies operating in emerging markets.
Q WHERE DO YOU SEE OPPORTUNITIES IN THE COMING MONTHS?
A While U.S. financial services companies should continue to do well, we are
also optimistic about opportunities across Europe. Under the current environment
of falling interest rates in Europe, we believe European banks and insurance
companies should realize strong earnings, driving up valuations. Peripheral
European countries should continue to perform well as they remain committed to
increasing emphasis on maximizing shareholder returns. Finally, we hope to be
able to realize some benefits from takeover candidates during the year
EMERGING MARKETS
Financial Services Penetration
GNP per capita (US $ thousands)
<TABLE>
<CAPTION>
Financial Service Penetration
- ----------------------------- South South
Average Consumer Demand Hong Kong Israel Malaysia Peru Philippines Singapore Africa Korea Uruguay Vietnam
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mattress Economy................ 1000 1000
Checking Account Card........... 3000 3000
First Mortgage.................. 40000 40000
Insurance Mutual Funds.......... 14000 14000
Brokerage Foreign Investments
Private Banking................ 20000 20000
</TABLE>
AS EMERGING ECONOMIES' GNP CONTINUES TO GROW, CONSUMER DEMAND FOR FINANCIAL
SERVICES INCREASES AS DOES THE LEVEL OF SOPHISTICATION OF THE PRODUCTS.
Sources: GNP/Capita, World Bank, 1995 Factbook; Financial service examples, LGT
Asset Management, Inc.
and that continued strong operating results for emerging market banks will lead
to positive reratings in their share prices in the coming year.
ABOUT THE PORTFOLIO MANAGER
A. James Ellman - Portfolio Manager for LGT Asset Management since 1995;
Investment Analyst from 1994 to 1995. Previous to working for LGT Asset
Management, Mr. Ellman was an International Bank Examiner for the Federal
Reserve. He received an M.B.A. from Harvard Graduate School of Business.
GT GLOBAL FINANCIAL SERVICES FUND
ALLOCATION OF NET ASSETS
April 30, 1996 April 30, 1995
Banks-Money Center 27.7% 22.5%
Banks-Regional 19.0% 27.1%
Other Financial 10.6% -
Securities Broker 10.5% 4.4%
Consumer Finance 10.3% 7.5%
Investment Management 6.1% 8.5%
Insurance-Property-Casualty 2.8% -
Insurance-Multi-Line 2.4% 3.0%
Real Estate 2.2% 6.5%
Insurance-Life 0.7% -
Banks-Super Regional - 7.4%
Short-Term & Other 7.7% 13.1%
* The Fund's geographic allocations may vary with changing market conditions.
1 The MSCI Banking Index is an arithmetic average, weighted by market value,
of the performance of 113 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 MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,566 securities listed on the 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.
The indices are not available for investment and do not incur the effect of
sales charges and professional management fees.
10
<PAGE>
GEOGRAPHIC ALLOCATION OF NET ASSETS
Latin America 3.7%
Asia-Pacific ex-Japan 17.7%
Europe 17.9%
Japan 20.8%
United States & Other 39.9%
Allocations will change based on current market conditions.
A complete listing may be found in the financials.
GT GLOBAL FINANCIAL SERVICES FUND
KEY PORTFOLIO HOLDINGS*
<TABLE>
<CAPTION>
% of
Net
Country Assets
------- ------
<S> <C> <C>
TRANSACTION NETWORK SERVICES, INC. Primarily provides telecommunication solutions for the processing of credit U.S. 3.0%
and debit card transactions. Strong secular volume growth in these methods of payment for goods and services has
led to high levels of growth in revenues, margins and profitability.
UNIDANMARK The second largest bank in Denmark, Unidanmark is experiencing rising levels of profitability and Denmark 2.9%
increasing efficiency due to higher revenues, improving asset quality and a positive macroeconomic environment
for banking operations.
PEREGRINE INVESTMENT HOLDINGS LTD. A premier investment bank of southeast Asia. We believe the company Hong Kong 2.7%
which has underwriting brokerage and merchant banking operations in several nations in the region, is well
positioned for continued economic growth in those markets
INVESCO PLC Invesco's Plc's subsidiaries are primarily international investment management groups, distributed U.K. 2.7%
throughout North America, Europe and the Pacific. They specialize in equity, fixed income and real property
investments and serve institutional, collective and individual investors.
ALLIANCE CAPITAL One of the nation's largest asset management companies with more than $150 billion under U.S. 2.6%
management in both retail and institutional accounts. Rising levels of assets under management have led to higher
levels of revenues, margins and profits.
DEN DANSKE BANK The largest bank in Denmark, Den Danske is experiencing increasing efficiency and a strong Denmark 2.5%
profitability outlook as it expands throughout the other Nordic nations in an environment of rising GDPs and
falling interest rates.
THAI FARMERS BANK LTD. The second-largest financial institution in Thailand with activities in commercial and Thailand 2.4%
consumer banking, venture capital investing, investment management and trade finance. The company is expanding
throughout rural regions of Thailand as well as into other Southeast Asian
nations.
BANK OF IRELAND A large financial services company with significant operations in Ireland, the UK and the U.S. Ireland 2.4%
Profitability has been increasing due to strong GDP growth in Ireland and a recovery in U.S. operations.
FIRST TENNESSEE NATIONAL CORP. A highly profitable regional bank which derives more than half of all revenues U.S. 2.4%
from fee-based business lines such as transaction processing, bond trading, credit card underwriting and mortgage
underwriting.
U.S. ORDER, INC. A pure play, in our opinion, on the rapidly growing market for at-home banking services. The U.S. 2.4%
company is active in software development, smart phone production and customer service management, with major
partners that include Visa Interactive, Colonial Data and Microsoft.
</TABLE>
*There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
11
<PAGE>
GT GLOBAL HEALTH CARE FUND
PORTFOLIO SUMMARY
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The Fund seeks long-term capital appreciation by investing primarily in equity
securities of health care companies, including those that specialize in
pharmaceuticals, biotechnology, medical devices and supplies, and health care
services. The Fund's strategy is to invest in the securities of a variety of
health care companies throughout the world that we believe will benefit from
economic, political and regulatory developments.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Health MSCI MSCI Health &
Care Fund World Index Personal Care Index
---------------- ----------- -------------------
<S> <C> <C>
8.7.89 9,525 10,000 10,000
9,608 9,856 10,034
9,650 10,136 10,347
9,858 9,800 10,050
10,200 10,193 10,365
10,368 10,522 10,564
9,900 10,032 10,219
9,908 9,604 9,696
10,184 9,025 9,513
10,184 8,897 9,668
11,286 9,835 10,734
11,587 9,767 11,097
11,612 9,858 11,452
10,844 8,937 10,502
10,409 7,996 9,870
10,718 8,744 10,758
11,445 8,602 11,139
11,729 8,784 11,243
12,509 9,107 11,550
13,546 9,951 12,607
14,326 9,660 12,807
14,034 9,737 12,852
14,737 9,959 13,214
14,051 9,346 12,603
15,045 9,789 13,522
15,422 9,759 13,790
15,576 10,017 13,950
16,527 10,181 14,712
15,902 9,739 14,453
18,518 10,450 16,468
18,276 10,258 15,572
17,517 10,083 15,263
16,344 9,610 14,554
15,317 9,745 14,471
15,679 10,135 15,087
15,066 9,797 14,553
15,679 9,824 15,213
15,291 10,065 15,276
14,946 9,974 14,813
15,058 9,706 14,685
16,007 9,881 14,847
11.30.92 16,016 9,963 14,649
15,446 9,998 13,688
13,444 10,237 13,239
13,634 10,832 13,387
13,720 11,336 13,991
14,540 11,599 14,405
14,583 11,504 13,779
14,195 11,743 13,123
14,298 12,283 13,819
14,868 12,058 13,950
15,412 12,392 14,359
15,567 11,693 14,161
16,433 12,267 14,628
17,550 13,078 15,124
16,849 12,911 14,542
15,749 12,357 13,906
15,714 12,741 14,245
15,654 12,776 14,437
14,814 12,743 14,446
15,437 12,987 14,429
17,030 13,381 15,598
17,022 13,031 15,579
16,970 13,404 16,022
16,554 12,825 16,077
16,481 12,952 16,425
17,012 12,760 16,837
17,338 12,949 17,335
17,897 13,575 18,319
17,450 14,051 18,973
17,385 14,174 19,209
17,664 14,172 19,974
18,773 14,884 20,632
19,127 14,555 20,275
20,049 14,982 21,750
20,329 14,749 22,406
21,409 15,264 23,270
22,573 15,713 24,437
23,729 16,000 25,028
24,429 16,100 25,041
24,906 16,371 25,446
4.30.96 25,097 16,759 25,234
</TABLE>
The chart above shows the performance of the GT Global Health Care Fund Class
A shares since the Fund's inception versus the MSCI World Index and the MSCI
Health Care & Personal Care Index. This represents a cumulative return of
150.97% and an average annual total return of 14.64% 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 $18,068 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 $14,499. 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
<TABLE>
<CAPTION>
Share Class Without Sales Charge++ With Sales Charge
--------------------- -----------------
1 Year 5 Year Life of Fund 1 Year 5 Year Life of Fund
------ ------ ------------ ------ ------ ------------
<S> <C> <C> <C> <C> <C> <C>
Class A* 43.83 12.33 15.47 36.99 11.24 14.64
Class B* 43.17 N/A 21.81 38.17 N/A 21.16
Advisor Class** N/A N/A 44.99 N/A N/A N/A
</TABLE>
HISTORICAL PERFORMANCE++
Annual Total Returns
1989 1990 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ---- ----
Class A 8.85* 13.14 57.88 -13.51 2.61 0.29 36.96
Class B N/A N/A N/A N/A 21.60* -0.19 36.24
* The Fund began operations on August 7, 1989; 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 data above represent past performance of the Fund's shares, which does not
guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
12
<PAGE>
Interview with the Portfolio Manager Mike Yellen
Portfolio Summary
We'd like to welcome Mike Yellen as the new Portfolio Manager for the GT
Global Health Care Fund. Mr. Yellen joined LGT Asset Management in 1994 as an
Investment Analyst, and has been Portfolio Manager since 1996. He manages the
GT Global Health Care Fund as well as an off-shore health care fund. Previous
to working for LGT Asset Management, Mr. Yellen was an Assistant Portfolio
Manager for Franklin Resources, Inc. He received a B.A. from Stanford
University. In the following interview, Mr. Yellen discusses how the Fund
seeks to take advantage of the changing health care industry.
Q IT LOOKS LIKE THE FUND HAS DONE QUITE WELL IN THE PAST SIX MONTHS. HOW HAS
IT PERFORMED?
A The Fund had a good six months. Its total return for the six months
ended April 30, 1996, was 23.46% for Class A shares (17.59% including the
maximum 4.75% sales charge). Total return for Class B shares was 23.23%
(18.23% including the maximum effect of the 5% contingent deferred sales
charge).
Q HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK INDICES?
A The Fund outperformed both indices. Total return for the MSCI World
Index1 for the six months ended April 30, 1996, was 13.63%, while the return
for the MSCI Health and Personal Care Index2 was 12.62% over the same
investment period. It's important to remember that the MSCI Health and
Personal Care Index is solely composed of health care product companies,
whereas the Fund invests in a broader category of health care product and
service companies.
Q WHAT WERE THE MAJOR FACTORS AFFECTING THE FUND'S PERFORMANCE?
A Specifically, the Fund has benefitted significantly from investments in
health care service stocks such as HMOs, which performed particularly well
over the last six months after lagging the market for much of 1995.
Additionally, the Fund's performance was favorably impacted by a larger
weighting in smaller companies in the biotechnology and medical device
sectors, areas that are also not well represented in the index.
Health care stocks have traditionally performed well, basically because of
their sound fundamentals. The 30-month bear market in health care stocks,
which began in January 1992, is behind us, in our opinion. The rally we've
seen in health care stocks over the past six months is a continuation of the
rally that began almost two years ago.
So what contributed to the rally? Uncertainty related to the proposed health
care reform has subsided, and the political debate over health care has moved
to the other end of the political spectrum (for example, how fast should we
privatize Medicare?). Health care firms began to focus on operating
efficiencies: bloated administrative expenses were reduced, R&D expenses
streamlined, manufacturing plants consolidated, product lines bundled, and a
host of other measures taken to increase competitiveness in the face of the
new health care environment. Consequently, for many companies, corporate
earnings have been more stable and robust than was anticipated a year ago.
Finally, the U.S. Food and Drug Administration (FDA) has reduced approval
times for both drugs and medical devices, which has helped these industries
improve revenue growth.
The results - low valuations, better than expected earnings, and an
increasingly optimistic outlook - were augmented by a market environment that
increasingly favored growth companies over cyclicals. Growth companies
typically enjoy faster than average earnings growth, tend to have higher P/E
ratios and are generally more volatile. In contrast, earnings of cyclical
companies usually move with the economy. This set the stage for a strong
rally in health care stocks, which is continuing.
GT GLOBAL HEALTH CARE FUND
ALLOCATION OF NET ASSETS
April 30, 1996 April 30, 1995
Pharmaceuticals 33.3% 39.8%
Med. Technology & Supplies 25.4% 13.0%
Health Care Services 20.1% 33.2%
Biotechnology 14.0% 10.3%
Consumer Services 0.3% -
Short-Term & Other 6.9% 3.7%
Q WHY DO PHARMACEUTICAL STOCKS MAKE UP THE LARGEST PART OF YOUR PORTFOLIO?
A The Fund continues to diversify across the health care industry. The
pharmaceutical sector comprises a variety of investment plays, so it has the
biggest weighting of the four sectors. For example, blue-chip, liquid
pharmaceutical companies such as Pfizer, as well as small, niche-oriented
companies like generic drug companies and drug delivery formulation
companies, are included in the pharmaceutical category. The large-cap
companies
CONTINUED P.14
13
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER Continued
have generally been performing very well. In addition, while somewhat higher in
risk, many small-cap companies also tend to offer much higher long-term growth
rates and, in fact, are sometimes very attractively valued simply because they
are still somewhat "undiscovered" by
Wall Street.
Q WILL YOU BE MAKING ANY CHANGES IN THE FUND'S PORTFOLIO STRATEGY?
A If current conditions continue, we're planning to shift some of the
emphasis in the Fund towards the smaller cap, niche companies. Although we think
the long-term outlook for the major large cap health care stocks is positive, we
believe near to intermediate-term they are approaching their fair value.
Therefore, we feel smaller cap companies offer more upside and attractive
valuations.
In addition, we believe the Fund will benefit in the long term from increasing
our selective exposure to the biotechnology industry. Many companies are
finishing their pivotal Phase III clinical trials, the last phase of testing,
and are on the verge of commercializing their products. While recognizing that
biotechnology firms are inherently high-risk investments, the Fund attempts to
minimize risk by targeting biotech companies with strong cash positions, close
relationships with large drug companies, products that are already approved or
in late stages of the approval process, clear technological expertise and low
valuations.
Q WHAT'S YOUR OUTLOOK FOR THE HEALTH CARE INDUSTRY?
A We believe the fundamentals that make health care an attractive growth
industry are straightforward. First, the powerful stimulus of demographics
should not be under-estimated. The elderly are by far the largest consumers of
health care. They are also the fastest-growing segment of the population in most
developed countries, a trend we feel is almost certain to continue over the next
few decades. Second, innovation is driving the industry with a constant flow of
new products to meet the demands of consumers. The result is an industry with a
record of reliable growth, consistent innovation and high returns on capital,
despite attempts by governments everywhere to hold down health care costs. In
fact, we believe these attempts present more opportunities than risks as
governments increasingly use HMOs to "privatize" public health care spending.
Third, some of the greatest growth opportunities are in emerging markets,
especially in the dynamic Asia-Pacific region. As standards of living improve,
the portion of income spent on health care rises (see chart). Emerging nations
and regions such as China, India and countries in Southeast Asia are spending
1%-3% of their gross domestic product (GDP) on health care, while the developed
world spends between 10%-15% of their GDP on health care. We believe the trend
of increased spending on health care will drive growth for the next few decades.
AS COUNTRIES BECOME MORE WEALTHY, HEALTH
EXPENDITURES INCREASE
<TABLE>
<CAPTION>
Health expenditures
Per capita GDP per person (US$)
-------------- -------------------
<S> <C> <C>
Canada 2,197 22,200
Chile 163 8,200
Germany 1,477 23,560
India 241 7,000
Indonesia 28 2,900
Japan 1,426 31,450
Philippines 19 1,300
South Korea 161 9,500
Switzerland 2,012 36,410
U.S. 3,490 24,700
</TABLE>
Source: OECD Health Data, 1995
1 The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,566 securities listed on the 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 MSCI Health and Personal Care Index is an arithmetic average, weighted
by market value, of the performance of 57 securities listed on major
world stock exchanges. Index return without dividends before December,
1993; with dividends after December 1993. The index is measured in U.S.
dollars.
The indices are not available for investment and do not incur sales charges and
professional management fees.
14
<PAGE>
GEOGRAPHIC ALLOCATION OF NET ASSETS
Asia-Pacific .5%
Europe 18.5%
North America & Other 81.0%
Allocations will change based on current market conditions.
A complete listing may be found in the financials.
GT GLOBAL HEALTH CARE FUND
KEY PORTFOLIO HOLDINGS*
<TABLE>
<CAPTION>
% of
Country Net Assets
------- ----------
<S> <C> <C>
Amgen The largest company in the biotechnology industry, Amgen's growth has been driven by its two U.S. 4.1
flagship products: Epogen, which stimulates production of red blood cells (used for kidney dialysis
patients); and Neupogen, a white blood cell stimulant (used for chemotherapy patients).
PacifiCare Health Systems Provides managed care products for employer groups, and Medicare and U.S. 3.7
Medicaid beneficiaries in California, Florida, Oklahoma, Oregon, Texas and Washington. Other operations
include Medicare risk management and health and life insurance.
Pfizer Inc. Produces ethical drugs, hospital products, animal health items, specialty chemicals, consumer U.S. 2.9
products and mineral-based material science products. The company's products include Zoloft anti-depressant,
Zithromax antibiotic, Norvasc and Procardia cardiovascular drugs, and Diflucan anti-fungal infection drug.
Sandoz A premier pharmaceutical company based in Switzerland with leading products in the areas Switz. 2.7
of the central nervous system, oncology, transplantation/immunology and dermatology. Sandoz currently has
a number of drugs in clinical trials.
Roche Hldgs AG Genusscheine Develops and manufactures pharmaceutical and chemical products Switz. 2.6
that it distributes through its five subsidiaries throughout Europe, the United States, Asia and Latin America.
Johnson & Johnson Manufactures and sells broad range of products in the consumer, professional and U.S. 2.3
pharmaceutical segments. Products include contraceptives, therapeutics, veterinary products, surgical
instruments, dressings and apparel and nonprescription drugs.
Astra Develops, manufactures and markets pharmaceuticals including agents for gastrointestinal Sweden 2.2
diseases, such as Losec, ulcer agents, respiratory disease agents, cardiovascular preparations,
anaesthetics, agents for nervous system disorders and anti-infective agents. The company markets its
products in both Sweden and abroad.
United Healthcare United Healthcare Corporation owns and manages healthmaintenance organizations U.S. 2.2
and provides specialty managed care services to individuals through employers, employee groups, insurers
and HMO operators. Services provided include claims processing and marketing, financial and accounting
services, prescription drug benefit programs and mental health/substance abuse programs.
Quorum Health Group Inc. Owns acute care hospitals and health systems nationwide through affiliates. U.S. 2.1
The company's Quorum Health Resources, Inc., subsidiary, is a manager of not-for-profit hospitals and also
provides consulting services to hospitals throughout the country.
R.P. Scherer Corp. Develops and produces drug delivery systems that regulate the dosage, rate of U.S. 2.0
absorption and place of release. The products are marketed worldwide and include soft and hard-shell
gelatin capsules and the proprietary Zydis, Scherersol and Pulsincap drug delivery systems.
</TABLE>
*There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
15
<PAGE>
GT GLOBAL INFRASTRUCTURE FUND
PORTFOLIO SUMMARY
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The Fund seeks long-term capital growth by investing in equity securities of
companies in established and emerging economies throughout the world that
design, develop or provide products and services significant to a country's
infrastructure. We continue to focus a sizable portion of our attention on
companies in emerging markets and suppliers to these markets, based on our
belief that the bulk of rapid new infrastructure growth is in emerging nations.
Examples of infrastructure companies include:
- - electricity production
- - oil
- - gas
- - coal exploration
- - construction
- - telecommunications equipment and services.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global
Infrastructure MCSI
Fund World Index
-------------- -----------
<S> <C> <C>
5.31.94 9,525 10,000
9,567 9,974
9,992 10,165
10,400 10,473
10,325 10,200
10,392 10,492
10,042 10,039
9,817 10,138
9,567 9,987
9,308 10,135
9,133 10,626
4.30.95 9,625 10,998
10,000 11,094
10,292 11,093
10,750 11,650
10,583 11,393
10,600 11,727
10,092 11,544
10,267 11,947
10,417 12,299
10,725 12,524
10,833 12,602
10,942 12,814
4.30.96 11,742 13,118
</TABLE>
The chart above shows the performance of the GT Global Infrastructure Fund Class
A shares since the Fund's inception versus the MSCI World Index. This represents
a cumulative return of 17.42% and an average annual total return of 8.73% 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
5/31/94 would have been valued at $11,813 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 $11,792. 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
Share Class Without Sales Charge++ With Sales Charge
---------------------- ----------------------
1 Year Life of Fund 1 Year Life of Fund
------ ------------ ------ ------------
Class A* 21.99 11.53 16.20 8.73
Class B* 21.39 10.99 16.39 9.08
Advisor Class** N/A 17.92 N/A N/A
* The Fund began operations on May 31, 1994.
** 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 does not reflect the maximum 4.75% sales charge
and the 5.0% contingent deferred sales charge 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.
16
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER DAVID SHERRY
Q HOW DID THE FUND PERFORM?
A We were pleased with the Fund's performance. For the six months ended April
30, 1996, the Fund's total return was 16.35% for Class A shares (10.82%
including the maximum 4.75% sales charge) and 16.04% for Class B shares (11.04%
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
Q WHAT FACTORS WORKED IN FAVOR OF THE FUND OVER THE PAST SIX MONTHS?
A The Fund's returns were buoyed by performance of the U.S., Italian and
Spanish markets, in addition to general strength in Latin America. In the U.S.,
the Fund benefited from a continuation of the bull market, as well as a shift
from technology to more cyclical, traditional infrastructure-type stocks. Post-
electoral gains in Italy and Spain also worked in favor of the Fund, largely due
to expectations of lower interest rates. Specifically, DSP Communications (a
leading provider of chip sets) in the U.S. and Spain's Endesa (a major producer
and provider of electricity) and Telefonica (the dominant provider of
telecommunications services) have done particularly well.
Q WERE THERE ANY AREAS OR SPECIFIC COMPANIES THAT DIDN'T LIVE UP TO YOUR
EXPECTATIONS?
A Last year's darling, Norway's Nokia, has been an unfortunate
problem as handset margins have declined, while La Cementos National's
(Ecuador's largest cement company) share price has suffered from
Ecuador's political problems. However, we continue to find value in La
Cementos, partly because the stock trades at less than its replacement
cost and partly because the company's earnings are solid, and we are
continuing to build a position.
Q IN LAST OCTOBER'S ANNUAL REPORT YOU DISCUSSED SOME OF THE DIFFICULTIES
EMERGING MARKETS WERE EXPERIENCING AND THEIR IMPACT ON THE FUND'S
PERFORMANCE. HAVE THESE MARKETS RECOVERED?
A Increasing confidence in emerging markets has had a positive effect on the
Fund's performance. Mexico seems to be rebounding, and the peso has been
relatively stable over the last several months. Brazil has slowly made
progress in privatizing and restructuring its economy. Growth continues to
boom throughout most of Asia, particularly in Thailand, Malaysia and the
Philippines. Meanwhile, we believe further easing in China should support
the growth of mainland earnings streams. Eastern Europe seems to be going
forward in a nice growth mode.
Q COULD YOU PROVIDE US WITH AN EXAMPLE OF THE ATTRACTION OF EMERGING MARKETS?
A India, one of the largest emerging markets with tremendous potential, is
in very good shape, in our opinion, despite the confusion over recent
elections. Heightened recognition of the country's need for power and
economic restructuring to encourage foreign investment is promoting more
realistic attitudes. Especially encouraging is the progress being made
toward resolving electricity disputes with foreign partners. As a result,
investor confidence is increasing and the Indian stock market has been
rising. Over the longer term, as many emerging markets continue to improve
their infrastructure, we believe many suppliers located in the developed
world may be likely beneficiaries. We continue to find these types of
companies particularly attractive.
ROAD CONSTRUCTION DOUBLES IN 20 YEARS
South Korea 847%
Indonesia 453%
Thailand 313%
Pakistan 250%
Brazil 219%
Turkey 140%
India 134%
Singapore 128%
Percent increase of paved roads (km) from 1970 to 1990
Many emerging market economies have been focusing on improving infrastructure.
All of the above listed countries have doubled the number of kilometers of paved
roads in only 20 years. Of course, there can be no assurance that these trends
will continue or ultimately benefit the Fund's performance.
Sources: The World Bank, World Development Report 1994, June 1994.
Q HOW HAVE PRIVATIZATION PROGRAMS AFFECTED THE FUND'S PERFORMANCE AND THE
INFRASTRUCTURE INDUSTRY IN GENERAL?
A The flood of privatizations last year had a temporary effect on the market.
Initially, for example, the share price
CONTINUED P.18
17
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER Continued
of Indonesia's Indosat (an international telecommunications service provider)
suffered considerably, as did PT Telkom's (Indonesia's telecoms company) when
brought to market. Once the issues were completed, however, investors began to
look longer term and focus on fundamentals, and share prices have risen as a
result. PT Telkom continues to do well, with plenty of room for further gains,
and Canadian National Railroad has been a glorious success from an investor's
point of view.
Q COULD YOU EXPLAIN YOUR INVESTMENT STRATEGY?
A The basic strategy of the Fund is to find infrastructure opportunities
at attractive valuations. We use a number of measures to determine value,
including price-to-earnings relative to earnings growth rate,
price-to-replacement value and price-to-cash flow ratios. Infrastructure
development tends to take place over a long period of time, with the
exception of the telecommunications sector where dramatic changes from a
technological or regulatory perspective can take place quickly. For most
other infrastructure industries we focus on companies we think will grow with
the pace of infrastructure development around the world.
Q LOOKING AHEAD, WHERE DO YOU EXPECT TO FIND OPPORTUNITIES?
A We continue to like the growth of telecom, the stability of electric
utilities, the sales potential of the capital goods side (power plants and
other infrastructure building blocks) and the rationalization opportunities
in transportation. Moreover, we believe privatizations, whereby
entrepreneurial and managerial skills are applied to formerly state-run
companies, can lead to improved returns and are often attractive investments.
PORTFOLIO MANAGER
David L. Sherry, CFA - Portfolio Manager for LGT Asset Management since 1994;
Investment Analyst from 1993. Previous to working for LGT Asset Management, Mr.
Sherry was a Senior Securities Analyst for Franklin Resources. He received an
M.B.A. from UCLA.
GT GLOBAL INFRASTRUCTURE FUND
Allocation of Net Assets
April 30, 1996 April 30, 1995
-------------- --------------
Energy 27.9% 23.6%
Services 25.7% 21.3%
Capital Goods 17.1% 20.0%
Materials/Basic Industry 14.5% 14.5%
Technology 7.7% 1.0%
Multi Industry/Misc. 4.6% 2.0%
Consumer Durables - 2.8%
Short-Term & Other 2.5% 14.8%
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.
The indices are not available for investment and they do not incur the effects
of sales charges and professional management fees.
18
<PAGE>
GEOGRAPHICAL ALLOCATION OF NET ASSETS
Latin America 14.7%
Asia-Pacific 25.5%
Europe 28.8%
North America & Other 31.0%
Allocations will change based on current market conditions.
A complete listing may be found in the financials.
GT GLOBAL INFRASTRUCTURE FUND
KEY PORTFOLIO HOLDINGS*
<TABLE>
<CAPTION>
% of
Country Net Assets
------- ----------
<S> <C> <C>
DSP COMMUNICATIONS, INC. A leading provider of chip sets to manufacturers that produces handsets U.S. 6.3
for the Japanese digital cellular telephone market, the company is also currently developing products for
the U.S. cellular market.
ABC RAIL PRODUCTS CORP. The company supplies wheels, brakes and specialty track work, primarily to U.S. 3.1
Class I railroads in North America. We expect ABC Rail to be a beneficiary of increasing exports of North
American coal and grain, which are typically carried by rail, industry restructuring, and the outsourcing of
railroads' maintenance activities to companies such as ABC Rail.
TELEFONICA DE ESPANA This is the dominant provider of telecommunications services in Spain with Spain 3.0
substantial interests in telecommunication companies in Chile, Argentina, Peru
and Venezuela.
EDISON A holding company that operates in the hydroelectrical industry, Edison's activities Italy 2.9
include running power stations and thermoelectrical and co-generating services.
MANNESMANN AG A diversified industrial conglomerate involved in telecommunications, Germany 2.9
machinery, plant construction, automotive technology, tubes, and pipes, Mannesmann is the
majority owner of Germany's second-largest cellular company. The company also has investments
in the Italian cellular industry and Spanish and French paging companies.
KOREA ELECTRIC POWER CORP. (KEPCO) KEPCO owns more than 90% of South Korea's electricity South Korea 2.9
capacity and is the sole company engaged in the transmission and distribution of electricity in capacity.
DAINI DENDEN, INC. (DDI) Japan's second-largest provider of cellular phone services, DDI Japan 2.8
also has more than 10% of the domestic long-distance market.
EMPRESA NACIONAL DE ELECTRIDAD (ENDESA) The company is a Spanish producer and Spain 2.8
distributor of electricity.
ENERGIE VERSORGUNG NIEDEROESTERREICH AG (EVN) An electric and gas distributor in eastern Austria 2.8
Austria, EVN also generates thermal energy and manages heating stations. In addition, they have invested
in gas distribution in Hungary.
HAFSLUND NYCOMED This conglomerate based in Norway has interests in hydroelectric power Norway 2.7
and pharmaceuticals.
</TABLE>
* There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report
19
<PAGE>
GT GLOBAL NATURAL RESOURCES FUND
PORTFOLIO SUMMARY
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The Fund seeks long-term capital growth by investing in equity securities of
companies throughout the world that own, develop or explore natural resources,
or that supply goods and services to such companies. Natural resources companies
include those that own, explore or develop ferrous and non-ferrous metals,
strategic metals and precious metals, chemicals, forestry products, foodstuffs,
refined products such as steel, and other basic commodities. The Fund seeks to
invest in companies that we believe have potential earnings growth that outpaces
expectations, such as those that are growing their reserves quickly by making
new discoveries, or increasing production.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global
Infrastructure Fund MSCI World Index
-------------------- ----------------
<S> <C> <C>
5.31.94 9,525 10,000
9,567 9,974
9,992 10,165
10,400 10,473
10,325 10,200
10,392 10,492
10,042 10,039
9,817 10,138
9,567 9,987
9,308 10,135
9,133 10,626
4.30.95 9,625 10,998
10,000 11,094
10,292 11,093
10,750 11,650
10,583 11,393
10,600 11,727
10,092 11,544
10,267 11,947
10,417 12,299
10,725 12,524
10,833 12,602
10,942 12,814
4.30.96 11,742 13,118
</TABLE>
The chart above shows the performance of the GT Global Natural Resources Fund,
Class A shares, since the Fund's inception versus the MSCI World Index. This
represents a cumulative return of 32.35% and an average annual total return of
15.74% 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 5/31/94 would have been valued at $13,355 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 $13,896. 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
Share Class Without Sales Charge++ With Sales Charge
---------------------- ----------------------
1 Year Life of Fund 1 Year Life of Fund
------ ------------ ------ ------------
Class A* 40.19 18.71 33.53 15.74
Class B* 39.47 18.09 34.47 16.28
Advisor Class** N/A 38.96 N/A N/A
* The Fund began operations on May 31, 1994.
** 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.
20
<PAGE>
Interview with the Portfolio Manager
Derek Webb
Q HOW WOULD YOU EVALUATE THE FUND'S PERFORMANCE OVER THE PAST SIX MONTHS?
A We're pleased with the Fund's performance. The Fund's total return for
the six months ending April 30, 1996, was 38.48% for Class A shares (31.90%
including the maximum 4.75% sales charge). Total return for Class B shares
was 38.12% (33.12% including the maximum effect of the 5% contingent deferred
sales charge). During the same period, the Morgan Stanley Capital
International (MSCI) World Index1 returned 13.63%. It's important to note
that the index does not fully reflect the Fund's concentration in the natural
resources industry, is not professionally managed and does not incur expenses.
Q HAVE YOU MADE ANY CHANGES IN YOUR STRATEGY IN THE PAST SIX MONTHS?
A No, we're following the same investment strategy. Our stock selection
criteria is primarily based on company specifics and, to a lesser degree, on
whether we are bullish, neutral or bearish on the related commodity. We look for
companies where we believe the stock prices will go up independently of the
commodity price. These include companies that are growing their reserves quickly
by making new discoveries, or increasing production quickly using new
discoveries or current reserves. We also look for companies that are going
through major reorganizations such as cost-cutting, restructuring, or takeovers,
and select companies whose earnings growth, in our opinion, is likely to outpace
expectations. Companies with potential for positive quarterly earnings surprises
and positive earnings revisions by Wall Street analysts are also attractive. In
addition, we invest in companies we believe display strong fundamentals, such as
high return on equity, low debt and predictable earnings and cash flow.
Q WHY DO YOU THINK THE STOCKS IN THE PORTFOLIO DID AS WELL AS THEY DID?
A The Fund's strong performance during the six-month period can be attributed
primarily to company-specific rather than macroeconomic factors. For example,
Chesapeake Energy Corp. is a U.S. company whose stock price rose 199% during the
period. Chesapeake, which produces natural gas in Texas and Oklahoma, is growing
its reserves and production very quickly because of new technology. Instead of
drilling vertically, they're drilling horizontally, which has led to
dramatically increased production. Another fast-growing company using cutting-
edge technology is Input/Output, a leader in 3-D seismic exploration. Its stock
price increased 68.9% during the period.
Companies that are doing well because of growth in their reserves include Bre-X
Minerals Ltd., a Canadian company which has discovered a large gold mine in
Indonesia. Although the price of gold has remained flat, we believe that Bre-X's
stock price rose 162% during the six-month period because of its huge growth in
reserves. Another Canadian company, Diamond Fields Resources, had a marked
increase in reserves due to the discovery of a huge nickel deposit in Canada.
Its stock price increased 61.15%. Also, Abacan Resources, a Canadian company
working in offshore Nigeria, experienced strong growth in reserves and strong
growth in production.
Reading and Bates, which operates off-shore oil platforms, has done well because
the market for these platforms has gotten very tight. As oil companies look for
oil further and further offshore, demand for these platforms is at a premium
because there is only a limited supply. Accordingly, Reading and Bates' leasing
rates have risen dramatically, and the company has shown strong earnings growth.
In addition, 3-D Geophysical Inc., another U.S. seismic company with earnings
surprises, is benefiting from a very strong seismic market all over the world.
Finally, another company that has performed well during the period (+42.66%) is
UCAR International, a spinoff from Union Carbide that produces carbon graphite
rods. These rods are essential to the steelmaking process in
CONTINUED P. 22
TOTAL RETURN FOR THE SIX MONTHS TO 4/30/96
GT Global Natural Resources Fund 38.48%
Gold 35.41
Chemicals 21.86
Metals-Non Ferrous 19.23
Energy Sources 17.70
Forest Products & Paper 3.33
Source: Various commodities represented by their respective MSCI indices
4/30/96.
21
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER Continued
electric arc furnaces, the fastest-growing method of steelmaking.
Q WHAT ARE YOUR CURRENT INDUSTRY WEIGHTINGS IN THE FUND? WHAT IS YOUR OUTLOOK
FOR THE VARIOUS COMMODITIES?
A Our weightings for the Fund as of April 30, 1996 are energy equipment and
services 30.4%, gold 16.2%, non-ferrous metals 13.6%, oil 12.6%, metals - steel
9.4%, specialty chemical 6.5%, gas production and distribution 5.8%, machinery
and engineering 3.2% and other 2.3%. Currently, we are bullish on uranium, grain
prices, tin, lead, zinc, and nickel. We are neutral on gold, silver, platinum,
oil and natural gas, and chemicals. And we are bearish on forest products,
carbon steel, copper, and aluminum. Again, our stock selection criteria is
primarily based on company specifics and, to a lesser degree, on whether we are
bullish, neutral or bearish on the related commodity.
Q WHERE ARE YOU FINDING GLOBAL OPPORTUNITIES?
A While keeping in mind that many emerging markets can be volatile, we're
finding opportunities in North American companies that are taking advantage
of the opening up of mineral resources in Latin American, African, Southeast
Asian and former eastern bloc markets. Many of these countries had
nationalized industries or were previously closed to western exploration.
Since 1990, however, many have been making their mineral resources available
to foreign mining com-panies. At the same time, new technology is enabling
companies to find large amounts of mineral reserves. Canadian companies such
as Bre-X and Triton Mining have been especially adept and aggressive at
staking claims to natural resources around the world. These new explorations
are leading to rapid growth in reserves and production, and we will continue
to seek out high-growth companies that we see taking advantage of these
opportunities.
Q WHAT'S YOUR OUTLOOK FOR THE NATURAL RESOURCES SECTOR? SHOULD INVESTORS
EXPECT THIS LEVEL OF PERFORMANCE TO CONTINUE?
A While the Fund has performed well over the past six months, we realize
that these markets can be volatile. However, we continue to be bullish. We
believe overall global economic growth should provide a positive environment
for commodity prices.
PORTFOLIO MANAGER
Derek Webb, CFA - Portfolio Manager for LGT Asset Management since 1994, and a
Research Analyst since 1992. He received an M.B.A. from Wharton Business School.
Mr. Webb began his career on Wall Street in 1983.
GT GLOBAL NATURAL RESOURCES FUND
Allocation of Net Assets
April 30, 1996 April 30, 1995
-------------- --------------
Energy Equipment & Services 30.4% 1.2%
Gold 16.2% 8.3%
Metals - Non-Ferrous 13.6% 16.2%
Oil 12.6% 22.7%
Metals - Steel 9.4% -
Chemicals 6.5% 6.1%
Gas/Production & Distribution 5.8% 3.0%
Machinery & Engineering 3.2% 1.9%
Misc./Short-Term & Other 2.3% 13.5%
Forest Products - 11.0%
Commodity Chemicals - 4.0%
Consumer Non-Durables - 3.6%
Conglomerate - 3.5%
Coal - 2.8%
Misc. Materials & Components - 2.2%
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.
The indices are not available for investment and do not incur the effect of
sales charges and professional management fees.
22
<PAGE>
GEOGRAPHIC ALLOCATION OF NET ASSETS
Africa 2.0%
Asia-Pacific 3.5%
Europe 16.1%
Canada 35.3%
U.S. & Other 43.1%
Allocations will change based on current market conditions.
A complete listing may be found in the financials.
GT GLOBAL NATURAL RESOURCES FUND% of
KEY PORTFOLIO HOLDINGS*
<TABLE>
<CAPTION>
% of
Country Net Assets
------- ----------
<S> <C> <C>
DIAMOND FIELDS RESOURCES, INC. Acquires, explores and develops natural resources properties. The company Canada 5.0%
mines nickel, copper and cobalt in Labrador, Canada, and diamonds in Namibia and South Africa.
SASKATCHEWAN WHEAT POOL An integrated and diversified agri-business that handles and markets grain, Canada 4.1%
manufactures and markets value-added products derived from farm commodities, markets livestock and
publishes a farm newspaper. There are 57,000 active members who mainly live in Saskatchewan and serve
as the pool's primary customers.
CHESAPEAKE ENERGY CORP. Develops and produces crude oil and natural gas through company-operated fields in U.S. 4.1%
southern Oklahoma and southern Texas. The company focuses on drilling in the Cretaceous Trend (Texas) and
in the Golden Trend Field (Oklahoma) and, through subsidiaries, provides services and equipment for operating
and developing its oil and gas wells.
TRANSOCEAN A drilling and well-servicing contractor serving the petroleum industry and offering all services Norway 3.8%
relating to the planning, preparation, and implementation of oil and gas wells. Transocean operates
internationally in four business areas: mobile units, fluid services, platform drilling and well
intervention, and engineering and construction.
BRE-X MINERALS LTD. Acquires, explores for and develops gold and base metal mining properties in Indonesia. Canada 3.7%
3-D GEOPHYSICAL INC. Provides two-dimensional and three-dimensional seismic data acquisition services to oil U.S. 3.5 %
and gas exploration and production companies in the United States and Mexico.
BENTON OIL & GAS CO. Explores, develops and manages oil and gas properties. The company's properties U.S. 3.3%
are located in the Gulf Coast region of Louisiana, the West Siberian region of Russia, and the eastern region
of Venezuela, as well as in Oklahoma, Texas, Mississippi and California.
PETROLEUM GEO-SERVICES Acquires marine seismic data on a contract basis and acquires and markets company- Norway 3.3%
owned data used by oil and gas companies to explore for new reserves, develop existing fields and manage
producing reservoirs. The company uses seismic technology to perform site surveys in the North Sea which help
determine locations for drilling wells.
CYTEC INDUSTRIES A specialty chemical company (spun off from American Cyanamid) that manufactures many U.S. 3.3%
different chemicals for the paint, apparel, water treatment and construction industries.
MONSANTO Involved in the worldwide manufacture and sale of a diversified line of chemical and agricultural U.S. 3.2%
products, pharmaceuticals, low-calorie sweeteners, plastics and man-made fibers. The company's products are
marketed under the brand names Lasso, Roundup, Nutrasweet and Searle.
</TABLE>
*There can be no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
23
<PAGE>
GT GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO SUMMARY
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The Fund seeks long-term growth of capital by investing primarily in equity
securities of companies throughout the world engaged in the development,
manufacture or sale of telecommunications services or equipment. The Fund's
strategy is to invest in companies that, in our opinion, are fast growing and
innovative, including equipment providers, wireless services and emerging
market telecommunications companies.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global MSCI
Telecommunications Telecommunications MSCI World
Fund Fund Index
------------------ ------------------ ----------
<S> <C> <C> <C>
1.27.92 9,525 10,000 10,000
9,467 10,054 9,906
9,617 9,882 9,771
9,533 9,418 9,529
9,608 9,551 10,159
9,767 9,933 10,240
9,342 9,602 10,174
9,467 9,628 10,519
9,300 9,864 10,506
9,050 9,775 10,316
9,300 9,512 10,082
9,733 9,684 10,440
9,987 9,764 10,865
10,266 9,799 10,936
10,527 10,033 11,412
10,696 10,616 11,775
10,865 11,110 11,559
11,355 11,368 12,037
11,827 11,275 12,305
12,258 11,509 12,425
13,364 12,038 13,153
13,583 11,818 12,945
14,284 12,145 13,511
13,549 11,460 12,800
14,746 12,023 13,032
15,399 12,818 13,624
14,944 12,654 12,736
1.31.94 14,025 12,111 12,353
14,257 12,487 12,774
14,179 12,521 12,865
13,819 12,489 12,823
14,480 12,728 13,225
15,253 13,114 13,661
14,892 12,772 13,288
15,287 13,137 13,601
14,617 12,570 12,693
14,097 12,694 12,682
13,400 12,506 12,991
13,129 12,690 13,007
13,074 13,305 13,287
13,572 13,771 13,484
13,789 13,891 13,716
14,594 13,890 13,970
15,653 14,588 14,330
15,997 14,265 14,685
16,024 14,684 15,591
14,848 14,455 15,439
15,291 14,960 15,571
15,307 15,400 16,091
16,011 15,681 16,405
16,173 15,780 16,304
16,202 16,045 16,098
4.30.96 17,601 16,425 16,651
</TABLE>
The chart above shows the performance of the GT Global Telecommunications Fund,
Class A shares, since the Fund's inception versus the MSCI World Index and the
MSCI Telecommunications Index. This represents a cumulative return of 76.01% and
an average annual total return of 14.19% 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 4/1/93 would have been
valued at $15,887 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 $12,818. 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 Life of Fund 1 Year Life of Fund
------ ------------ ------ ------------
Class A* 29.69 15.50 23.53 14.19
Class B* 28.98 16.91 23.98 16.21
Advisor Class** N/A 28.18 N/A N/A
HISTORICAL PERFORMANCE++
ANNUAL TOTAL RETURNS
1992 1993 1994 1995
---- ---- ---- ----
Class A 4.85* 47.65 -4.40 8.58
Class B N/A 37.20* -4.89 8.08
* The Fund began operations on January 27, 1992; 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.
24
<PAGE>
GT GLOBAL TELECOMMUNICATIONS FUND
INTERVIEW WITH LEAD PORTFOLIO MANAGER MICHAEL MAHONEY
Q HOW DID THE FUND PERFORM?
A We have been very pleased with the Fund's performance. For the six months
ended April 30, 1996, the Fund's total return was 18.54% for Class A shares
(12.91% including the maximum 4.75% sales charge) and 18.23% for Class B shares
(13.23% including the maximum 5% contingent deferred sales charge). Total return
over the same investment period was 17.85% for the Morgan Stanley Capital
International (MSCI) Telecommunications Index1 and 13.63% for the MSCI World
Index.2 The more comprehensive Salomon Brothers Global Telecommunications
Index,3 which has a component of emerging market stocks, returned 9.21% over the
period. Most impressive, however, is the Fund's long-term track record. While
there has been some short-term volatility, since inception, the Fund has
outperformed its indices.
Q WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE OVER THE PAST SIX
MONTHS?
A The Fund's performance has been notably strong over the past several months
as a number of developments began to work to the Fund's advantage. Data
networking and telecommunications equipment gained momentum, our significant
Italian holdings enjoyed an impressive upturn following the elections, and
emerging markets continued to win back investor confidence. Additionally, the
Fund has benefited from the passage of the U.S. telecommunications legislation.
Q WHAT WERE SOME OF YOUR FAVORITE STOCKS?
A Competitive access providers (CAPs) have been tremendously attractive and,
in our opinion, are well positioned to take advantage of the new legislation.
CAPs provide various voice and data transmission services, primarily to business
customers. They already have a local network, and long-distance companies will
be looking to connect with new service providers in their competitive war with
the Baby Bells. Specifically, we have been pleased with MFS Communications, the
Fund's second largest holding, which is up approximately 50% since the start of
the year, as well as Intelcom and Intermedia Communications. In the area of
equipment, we are excited about new switching technologies and networking, and
are adding to our holdings in related stocks.
Q ARE THERE ANY AREAS OR COMPANIES THAT DIDN'T LIVE UP TO YOUR EXPECTATIONS?
A Wireless equipment companies have been a disappointment, in particular,
Nokia and Ericsson. Nokia has been burdened with management problems and has
had a difficult time handling rapid growth. Both companies are big builders
of basic cellular infrastructure, which is an attractive business with high
margins and 40% to 50% annual long-term growth. Although we continue to favor
that part of the industry, unfortunately, the handset segment, in which both
companies engage, is faced with increasing competition from Korea and Japan.
While it's a source of some concern, we've maintained our holdings. We feel
Nokia is undervalued relative to a blended growth rate for the company.
Ericsson is simply the dominant company in infrastructure, even though its
share price is not cheap and other areas of the company have not been doing
particularly well. We remain guardedly optimistic on both.
Q HAS YOUR STRATEGY CHANGED OVER THE PAST SIX MONTHS IN GENERAL?
A Our strategy remains consistent even in light of the U.S.
telecommunications legislation's passage. We have anticipated passage for
some time and positioned the Fund to take advantage of the event. While the
Fund's strategy has paid off in the longer term, the prolonged debate
adversely affected shorter-term performance in early 1995. Also as part of
the Fund's strategy, we are always looking for particularly interesting
service opportunities, companies that demonstrate conservative, steady growth
with the potential to benefit from increases in line penetration or in line
use.
CONTINUED P.26
U.S. TELECOMMUNICATIONS LEGISLATION
Opportunities and Challenges
Under the new bill, the distinction between local and long-distance service
providers will gradually disappear, and telephone and cable operators will be
free to enter one another's markets. As a result, the industry will become even
more competitive.
- Beneficiaries of legislation may include:
CAPs Will be free to compete with Baby Bells in all states. Well positioned
because they already have local network in place. Long distance may have no
other choice than to team up with or acquire them.
EQUIPMENT PROVIDERS Stand to benefit from overdue spending by Baby Bells,
cable and telecommunications companies.
CABLE COMPANIES Interesting play on deregulation. May take the lead over time
in providing broad-band services to the home, though they face significant
capital expenditures to upgrade infrastructure.
SMALL LONG-DISTANCE Typically possess strong sales force so Baby Bells may be
looking to them for joint ventures or alliances.
- Sectors we believe are not likely to fare as well:
LONG-DISTANCE Faced with intense competition.
BABY BELLS Existing network won't carry broad-band services, a tremendous
obstacle over the long term. Will encounter enormous expense to upgrade quality
of switching. On the other hand, have a reasonable opportunity in long distance.
25
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGER Continued
Q HOW ARE YOU POSITIONING THE FUND IN ORDER TO TAKE ADVANTAGE OF THE RAPID
ADVANCEMENTS IN TECHNOLOGY?
A While the Fund is not a technology fund, we do invest in
telecommunications-related technology. Within this segment, we believe the
key growth area is networking as it is still underpenetrated globally. We are
enticed by products that help Baby Bells connect their local networks
together to provide long-distance services, aid in quick problem resolution
or cut costs. We also like products that help build the wireless
infrastructure, preferably without exposure to handsets. Our technology
holdings are almost entirely positioned in the U.S., which dominates telecom
technology.
Q RECENTLY, TELECOMMUNICATIONS PRIVATIZATION HAS GAINED MOMENTUM WORLDWIDE.
WHAT DOES THIS MEAN FOR INVESTORS?
A Privatizations didn't contribute much to the Fund's performance over 1995.
The tide began to turn in late November 1995, however, with privatization of
Indonesia's telecoms company,4 one of the largest emerging markets
privatizations in some time. Despite weak initial interest, its share price was
up over 70% in the first several months. We believe this event was significant,
demonstrating the return of an appetite for emerging market telecoms
privatizations. In addition, the privatization of Hellenic Telecom, the formerly
state-owned Greek telephone company, was completed successfully, and we look
forward to further emerging markets privatizations that could benefit the Fund.
Nevertheless, we perceive some areas of privatization as risky. In light of the
upcoming massive privatization of Germany's telecom company, we are generally
avoiding wireline telecommunications companies in northern Europe.
Q HOW WOULD YOU CHARACTERIZE THE OPPORTUNITIES OVERSEAS?
A Although many of these markets can be volatile, we believe there is
considerable opportunity to provide services in other parts of the world. Italy
has been a wonderful example of the type of story we look for from service
companies. As cellular has become increasingly fashionable in Italy, more people
are calling each other, increasing local phone usage significantly. In Brazil,
we own Telebras, arguably the cheapest service company in the world; despite
recent difficulties, Brazil continues to move forward in terms of reform. Even
with its recent weakness, we also believe Mexico's Telmex has potential for
significant line growth. Service in Asia continues to represent an area of
tremendous opportunity. In particular, wireless in Thailand, a country slow to
build up a wireline network, has demonstrated astounding growth, and Thailand
has become one of the countries with the highest cellular penetration relative
to per capita GDP.
ABOUT THE PORTFOLIO MANAGERS
MICHAEL MAHONEY - Portfolio Manager for LGT Asset Management since 1993;
Investment Analyst from 1991 to 1993. Previous to working for LGT Asset
Management, Mr. Mahoney received an M.B.A. from Stanford Graduate School of
Business.
DAVID L. SHERRY, CFA - Portfolio Manager for LGT Asset Management since 1994;
Investment Analyst from 1993. Previous to working for LGT Asset Management, Mr.
Sherry was a Senior Securities Analyst for Franklin Resources. He received an
M.B.A. from UCLA.
A. JAMES ELLMAN - Portfolio Manager for LGT Asset Management since 1995;
Investment Analyst from 1994. Previous to working for LGT Asset Management, Mr.
Ellman was a bank examiner for the Federal Reserve. He received an M.B.A. from
Harvard Graduate School of Business.
GT GLOBAL TELECOMMUNICATIONS FUND
Allocation of Net Assets
April 30, 1996 April 30, 1995
-------------- --------------
Telecom Equipment 23.1% 17.7%
Wireless Communications 20.2% 14.6%
Telephone Networks 16.0% 17.2%
Cable Television 6.9% 4.5%
Broadcasting & Publishing 6.5% 6.5%
Telephone - Regional/Local 5.3% 2.9%
Telecom Technology 4.4% 5.7%
Multi-Industry/Misc. 4.1% 3.3%
Consumer Electronics 2.3% 1.5%
Telephone - Long-Distance 1.8% 5.2%
Networking 1.6% 0.9%
Semiconductors 1.3% 2.8%
Industrial Components 1.3% 2.1%
Aerospace/Defense 1.1% 1.1%
Value Added Tele. Service - 0.5%
Office Equipment - 1.6%
Telecom - Other - 1.4%
Computers & Peripherals - 0.5%
Short-Term & Other 4.1% 10.0%
1 The MSCI Telecommunications Index is an arithmetic average, weighted by
market value, of the performance of 28 securities listed on 10 major stock
exchanges. It includes the effect of reinvested dividends and is measured in
U.S. dollars.
2 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.
3 Salomon Brothers Global Telecommunications Index is an arithmetic average,
weighted by market value, of the performance of 80 securities. It consists of
telecommunications companies with total adjusted market capitalization Index of
US$100 million or more, including those in emerging markets. It includes the
effect of reinvested dividends and is measured in U.S. dollars
4 The above example is used for illustrative purposes only. There is no
assurance the Fund holds the securities or companies mentioned above.
The indices are not available for investment and they do not incur the effects
of sales charges and professional management fees.
26
<PAGE>
GEOGRAPHIC ALLOCATION OF NET ASSETS
Japan 9.6%
Latin America 9.7%
Asia-Pacific 16.0%
Ex-Japan
Europe 24.7%
North America &Other 40.0%
Allocations will change based on current market conditions.
A complete listing may be found in the financials.
GT GLOBAL TELECOMMUNICATIONS FUND
KEY PORTFOLIO HOLDINGS*
<TABLE>
<CAPTION>
% of
Country Net Assets
------- ----------
<S> <C> <C>
DAINI DENDEN INC. (DDI) Japan's second-largest provider of cellular phone services, DDI also Japan 5.0
has more than 10% of the domestic long-distance market.
MFS COMMUNICATIONS INC. The largest provider of local competitive access telecommunications services U.S. 3.7
in the U.S., its subsidiary, MFS Datanet, is a leading provider of transmission facilities for Internet
traffic.
NOKIA In the final stages of transforming itself from a Finnish conglomerate to a leading telecommunications Finland 3.3
equipment provider, Nokia has a leading global market share in cellular handsets and is also second in the
manufacture of European digital-standard cellular systems.
ERICSSON As one of the world's premier telecommunications equipment companies, its revenues are derived Sweden 3.1
primarily from its fast-growing radio communications division, with the remainder coming from its public
telecommunications division and other telecommunications and defense-related businesses.
ECI TELECOMMUNICATIONS LTD. ECI produces advanced telecommunications equipment for commercial uses. Israel 2.7
It has the dominant market share in digital circuit multiplication equipment (DCME) products and is also a
leader in the development of products for the SDH fiberoptic environment that multiplex, monitor and manage
high-speed digital transmission of voice and data.
GRUPO CARSO This conglomerate has holdings in Telmex (35% of earnings), Condumex (10% of earnings), Mexico 2.6
two mining companies (13% of earnings), and the Philip Morris franchise in Mexico.
MANNESMANN AG A diversified industrial conglomerate involved in telecommunications, machinery, plant Germany 2.0
construction, automotive technology, tubes and pipes. Mannesmann is the majority owner of Germany's second-
largest cellular company and also has investments in Italian cellular and Spanish and French paging
companies.
KYUSHU-MATSUSHITA ELECTRIC CO., LTD. A leading Japanese manufacturer of communication equipment such Japan 2.0
as cordless telephones and facsimile machines. The company has significant development efforts underway in
optical and magnetic technologies.
TELEFONICA DE ARGENTINA Offers telephone and fixed-link public telecommunications services. The company Argentina 1.9
provides local and long distance telephone service to Southern Argentina.
COMCAST CORP. The third-largest cable television system operator in the U.S. In addition, it operates U.S. 1.9
a large cellular network in the Northeast and is the majority owner of the QVC home shopping network.
Through its participation in the Sprint-cable joint venture, it will offer wireline service sover the
cable companies' networks and wireless services over spectrum purchased in the recent PCS auctions (FCC
auctions for licensing frequencies).
</TABLE>
*There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
27
<PAGE>
LGT ASSET MANAGEMENT'S WORLDWIDE INVESTMENT OFFICES
[GRAPHIC]
LGT Asset Management is a member of the $46 billion Liechtenstein Global
Trust. LGT Asset Management maintains fully staffed investment offices in
London, Frankfurt, Hong Kong, Tokyo, Singapore, Sydney, San Francisco and
Toronto.
<PAGE>
GT GLOBAL
THEME FUNDS
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (45.2%)
Amway Japan Ltd. - ADR{\/} ................................ JPN 75,700 $ 1,939,813 4.8
HOUSEHOLD PRODUCTS
Heineken N.V. ............................................. NETH 7,300 1,528,184 3.8
BEVERAGES - ALCOHOLIC
PepsiCo, Inc. ............................................. US 21,000 1,333,500 3.3
BEVERAGES - NON-ALCOHOLIC
Morningstar Group, Inc.-/- ................................ US 132,000 1,320,000 3.2
FOOD
Anthony Industries, Inc. .................................. US 45,900 1,308,150 3.2
RECREATION
Barco N.V. (Barco Industries) ............................. BEL 8,140 1,296,294 3.2
OTHER CONSUMER GOODS
Harley-Davidson, Inc. ..................................... US 29,300 1,292,863 3.2
OTHER CONSUMER GOODS
Adidas AG - 144A ADR{.} -/- {\/} .......................... GER 33,800 1,280,175 3.2
TEXTILES & APPAREL
Nature's Sunshine Products, Inc. .......................... US 50,950 1,273,750 3.1
PERSONAL CARE/COSMETICS
Sola International, Inc.-/- ............................... US 38,000 1,244,500 3.1
PERSONAL CARE/COSMETICS
Nike, Inc. "B" ............................................ US 14,200 1,242,500 3.1
TEXTILES & APPAREL
Fila Holding S.p.A. - ADR{\/} ............................. ITLY 18,000 1,228,500 3.0
TEXTILES & APPAREL
Universal Corp. ........................................... US 50,600 1,214,400 3.0
TOBACCO
Noble China-/- ............................................ CHNA 183,000 826,746 2.0
BEVERAGES - ALCOHOLIC
------------
18,329,375
------------
Services (34.5%)
Imax Corp.-/- {\/} ........................................ CAN 40,400 1,343,299 3.3
CONSUMER SERVICES
Gap, Inc. ................................................. US 43,300 1,304,413 3.2
RETAILERS-APPAREL
AMC Entertainment, Inc. ................................... US 50,200 1,298,925 3.2
LEISURE & TOURISM
Continental Airlines, Inc. "B"-/- ......................... US 22,800 1,293,900 3.2
TRANSPORTATION - AIRLINES
CFCF, Inc. ................................................ CAN 78,400 1,272,783 3.1
BROADCASTING & PUBLISHING
Safeway, Inc. ............................................. US 37,400 1,262,250 3.1
RETAILERS-FOOD
Sun International Hotels Ltd. ............................. US 29,300 1,252,575 3.1
LEISURE & TOURISM
Vons Cos., Inc.-/- ........................................ US 39,000 1,248,000 3.1
RETAILERS-FOOD
Orchard Supply Hardware-/- ................................ US 46,800 1,246,050 3.1
RETAILERS-OTHER
Ross Stores, Inc. ......................................... US 36,100 $ 1,245,450 3.1
RETAILERS-APPAREL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND -- CONSOLIDATED
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
TJX Companies, Inc. ....................................... US 41,500 1,224,250 3.0
RETAILERS-APPAREL
------------
13,991,895
------------
Consumer Durables (6.3%)
Belmont Homes, Inc.-/- .................................... US 57,400 1,298,675 3.2
HOUSING
Redman Industries, Inc. ................................... US 61,900 1,245,738 3.1
HOUSING
------------
2,544,413
------------
Technology (3.1%)
Sun Microsystems, Inc. .................................... US 23,300 1,264,025 3.1
------------
COMPUTERS & PERIPHERALS
Finance (3.1%)
Alliance Capital Management L.P. .......................... US 51,400 1,246,450 3.1
INVESTMENT MANAGEMENT
------------ -----
TOTAL EQUITY INVESTMENTS (cost $32,611,531) ................. 37,376,158 92.2
------------ -----
<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 $4,130,000 U.S. Treasury Note, 6.625%
due 3/31/97 (market value of collateral is $4,188,668,
including accrued interest). (cost $4,103,604) ........... 4,103,604 10.1
------------ -----
TOTAL INVESTMENTS (cost $36,715,135) * ...................... 41,479,762 102.3
Other Assets and Liabilities ................................ (919,863) (2.3)
------------ -----
NET ASSETS .................................................. $ 40,559,899 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
* For Federal income tax purposes, cost is $36,715,135 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 4,859,882
Unrealized depreciation: (95,255)
-------------
Net unrealized appreciation: $ 4,764,627
-------------
-------------
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND -- CONSOLIDATED
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>
Belgium (BEL/BEF) .................... 3.2 3.2
Canada (CAN/CAD) ..................... 6.4 6.4
China (CHNA/RMB) ..................... 2.0 2.0
Germany (GER/DEM) .................... 3.2 3.2
Italy (ITLY/ITL) ..................... 3.0 3.0
Japan (JPN/JPY) ...................... 4.8 4.8
Netherlands (NETH/NLG) ............... 3.8 3.8
United States & Other (US/USD) ....... 65.8 7.8 73.6
------ ----- -----
Total ............................... 92.2 7.8 100.0
------ ----- -----
------ ----- -----
<FN>
- --------------
{d} Percentages indicated are based on net assets of $40,559,899.
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
CONTRACTS TO SELL: (U.S. DOLLARS)
- ----------------------------------------------------------------------------------------------------------- ---------------
<S> <C>
Japanese Yen............................................................................................... 115,313
Japanese Yen............................................................................................... 477,974
Japanese Yen............................................................................................... 392,416
Japanese Yen............................................................................................... 192,834
---------------
Total Contracts to Sell (Receivable amount $1,162,031)................................................... 1,178,537
---------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 2.91%.
Total Open Forward Foreign Currency Contracts, Net.......................................................
<CAPTION>
CONTRACT
CONTRACTS TO SELL: PRICE
- ----------------------------------------------------------------------------------------------------------- -------------
<S> <C>
Japanese Yen............................................................................................... 106.88000
Japanese Yen............................................................................................... 104.50000
Japanese Yen............................................................................................... 105.86000
Japanese Yen............................................................................................... 105.65000
Total Contracts to Sell (Receivable amount $1,162,031)...................................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 2.91%.
Total Open Forward Foreign Currency Contracts, Net.......................................................
<CAPTION>
DELIVERY
CONTRACTS TO SELL: DATE
- ----------------------------------------------------------------------------------------------------------- -----------
Japanese Yen............................................................................................... 06/12/96
Japanese Yen............................................................................................... 06/12/96
Japanese Yen............................................................................................... 07/08/96
Japanese Yen............................................................................................... 07/08/96
Total Contracts to Sell (Receivable amount $1,162,031)...................................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 2.91%.
Total Open Forward Foreign Currency Contracts, Net.......................................................
<CAPTION>
UNREALIZED
CONTRACTS TO SELL: DEPRECIATION
- ----------------------------------------------------------------------------------------------------------- ----------------
Japanese Yen............................................................................................... $ (3,038)
Japanese Yen............................................................................................... (1,993)
Japanese Yen............................................................................................... (7,946)
Japanese Yen............................................................................................... (3,529)
----------------
Total Contracts to Sell (Receivable amount $1,162,031)................................................... (16,506)
----------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 2.91%.
Total Open Forward Foreign Currency Contracts, Net....................................................... $ (16,506)
----------------
----------------
</TABLE>
- --------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL FINANCIAL SERVICES FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Banks-Money Center (27.7%)
Unidanmark AS "A" ......................................... DEN 9,000 $ 401,280 2.9
Den Danske Bank ........................................... DEN 5,280 344,630 2.5
Thai Farmers Bank Ltd. - Foreign .......................... THAI 29,100 334,311 2.4
Bank of Ireland: .......................................... IRE -- -- 2.4
Common .................................................. -- 36,000 259,701 --
Common GBP{V} ........................................... -- 10,000 72,170 --
Bank Hapoalim Ltd.-/- ..................................... ISRL 208,000 310,827 2.3
HSBC Holdings PLC ......................................... HK 18,000 268,778 2.0
Citicorp .................................................. US 3,000 236,250 1.7
Sumitomo Bank ............................................. JPN 11,000 235,339 1.7
Dai-Ichi Kangyo Bank Ltd. ................................. JPN 11,000 223,782 1.6
Mitsubishi Bank ........................................... JPN 9,100 210,334 1.5
Bangkok Bank Co., Ltd. - Foreign .......................... THAI 14,300 207,337 1.5
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ..... MEX 80,000 184,582 1.3
Sakura Bank Ltd. .......................................... JPN 12,000 140,974 1.0
National Westminster Bank PLC ............................. UK 14,800 136,295 1.0
Commercial Bank of Korea-/- ............................... KOR 9,900 115,767 0.8
Bank Leumi Le - Israel-/- ................................. ISRL 67,500 78,242 0.6
Asahi Bank Ltd. ........................................... JPN 5,000 64,470 0.5
------------
3,825,069
------------
Banks-Regional (19.0%)
First Tennessee National Corp. ............................ US 10,000 330,000 2.4
Sparbanken Sverige AB "A" ................................. SWDN 17,000 191,876 1.4
Commerce Bancorp, Inc. .................................... US 9,150 191,006 1.4
Sovereign Bancorp, Inc. ................................... US 15,000 166,875 1.2
BayBanks, Inc. ............................................ US 1,500 157,125 1.1
Banco Commercial S.A. - 144A ADR{.} -/- {\/} .............. URGY 11,300 153,963 1.1
Anglo-Irish Bank Corp., PLC ............................... IRE 159,000 153,000 1.1
BankAmerica Corp. ......................................... US 2,000 151,500 1.1
Leader Financial Corp. .................................... US 3,000 132,000 1.0
Cullen/Frost Bankers, Inc. ................................ US 2,500 123,125 0.9
NationsBank Corp. ......................................... US 1,500 119,625 0.9
PT Bank Internasional Indonesia - Foreign ................. INDO 23,000 113,127 0.8
Bank of Melbourne Ltd. .................................... AUSL 19,800 111,979 0.8
Advance Bank of Australia Ltd. ............................ AUSL 26,833 110,443 0.8
Mellon Bank Corp. ......................................... US 2,000 107,500 0.8
Long Island Bancorp, Inc. ................................. US 3,800 105,450 0.8
Westpac Banking Corp., Ltd. ............................... AUSL 20,000 97,086 0.7
Allied Irish Bank PLC ..................................... IRE 17,500 91,302 0.7
------------
2,606,982
------------
Other Financial (10.6%)
Transaction Network Services, Inc.-/- ..................... US 10,700 411,950 3.0
Shohkoh Fund .............................................. JPN 1,200 312,894 2.4
Aboitiz Equity Ventures, Inc.-/- .......................... PHIL 1,230,000 240,161 1.7
Banco LatinoAmericano de Exportaciones S.A. (Bladex) "E"-/-
{\/} ..................................................... PAN 3,200 177,200 1.3
Diamond Lease Co., Ltd. ................................... JPN 10,000 $ 156,638 1.1
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL FINANCIAL SERVICES FUND -- CONSOLIDATED
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Other Financial (Continued)
JACCS Co., Ltd. ........................................... JPN 16,000 155,874 1.1
------------
1,454,717
------------
Securities Broker (10.5%)
Peregrine Investment Holdings Ltd. ........................ HK 245,000 378,507 2.7
Nomura Securities Co., Ltd. ............................... JPN 10,000 217,765 1.6
Daiwa Securities Co., Ltd. ................................ JPN 14,000 215,282 1.5
Nikko Securities Co., Ltd. ................................ JPN 15,000 190,544 1.4
Charles Schwab Corp. ...................................... US 7,600 186,200 1.4
Yamaichi Securities Co., Ltd. ............................. JPN 22,000 173,773 1.3
Dongwon Securities Co.-/- ................................. KOR 3,500 88,152 0.6
------------
1,450,223
------------
Consumer Finance (10.3%)
U.S. Order, Inc. .......................................... US 16,100 324,013 2.4
First Financial Caribbean Corp. ........................... US 10,100 217,150 1.6
Promise Co., Ltd. ......................................... JPN 5,000 212,512 1.5
Nichiei Co., Ltd. ......................................... JPN 3,000 200,573 1.5
Dean Witter, Discover & Co. ............................... US 3,600 196,200 1.4
Acom Co., Ltd. ............................................ JPN 4,000 150,907 1.1
Green Tree Financial Corp. ................................ US 3,400 114,750 0.8
------------
1,416,105
------------
Investment Management (6.1%)
Invesco PLC: .............................................. UK -- -- 2.7
ADR{\/} ................................................. -- 7,600 281,200 --
Common-/- ............................................... -- 23,300 88,632 --
Alliance Capital Management L.P. .......................... US 15,200 368,600 2.6
Franklin Resources, Inc. .................................. US 2,000 114,500 0.8
------------
852,932
------------
Insurance - Property-Casualty (2.8%)
MBIA, Inc. ................................................ US 2,200 157,025 1.1
AMBAC, Inc. ............................................... US 2,300 111,838 0.9
RenaissanceRe Holdings Ltd. ............................... US 4,000 109,000 0.8
------------
377,863
------------
Construction (2.7%)
Belmont Homes, Inc.-/- .................................... US 9,500 214,938 1.6
American Buildings Co. .................................... US 6,400 162,600 1.1
------------
377,538
------------
Insurance - Multi-Line (2.4%)
Corporacion Mapfre ........................................ SPN 4,000 201,337 1.5
Axa Group ................................................. FR 2,040 121,575 0.9
------------
322,912
------------
Real Estate (2.2%)
Alexander Haagen Properties, Inc. ......................... US 15,400 $ 177,100 1.3
Beacon Properties Corp. ................................... US 4,300 110,188 0.8
</TABLE>
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL FINANCIAL SERVICES FUND -- CONSOLIDATED
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Real Estate (Continued)
Tornet Fastighets AB-/- ................................... SWDN 17,000 11,287 0.1
------------
298,575
------------
Telecom - Other (1.5%)
Gilat Satellite Networks Ltd.-/- .......................... US 9,000 209,250 1.5
------------
Insurance-Life (0.7%)
Mapfre Vida Seguros ....................................... SPN 1,700 94,525 0.7
------------ -----
TOTAL EQUITY INVESTMENTS (cost $11,382,812) ................. 13,286,691 96.5
------------ -----
<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 $425,000 U.S. Treasury Notes, 5.125% due
6/30/98 (market value of collateral is $424,265, including
accrued interest). (cost $415,061) ....................... 415,061 3.0
------------ -----
TOTAL INVESTMENTS (cost $11,797,873) * ...................... 13,701,752 99.5
Other Assets and Liabilities ................................ 62,029 0.5
------------ -----
NET ASSETS .................................................. $ 13,763,781 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{V} Security is denominated in GBP.
-/- Non-income producing security.
{\/} U.S. currency denominated.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
* For Federal income tax purposes, cost is $11,809,352 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 1,976,743
Unrealized depreciation: (84,343)
-------------
Net unrealized appreciation: $ 1,892,400
-------------
-------------
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL FINANCIAL SERVICES FUND -- CONSOLIDATED
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>
Australia (AUSL/AUD) ................. 2.3 2.3
Denmark (DEN/DKK) .................... 5.4 5.4
France (FR/FRF) ...................... 0.9 0.9
Hong Kong (HK/HKD) ................... 4.7 4.7
Indonesia (INDO/IDR) ................. 0.8 0.8
Ireland (IRE/IEP) .................... 4.2 4.2
Israel (ISRL/ILS) .................... 2.9 2.9
Japan (JPN/JPY) ...................... 20.8 20.8
Korea (KOR/KRW) ...................... 1.4 1.4
Mexico (MEX/MXN) ..................... 1.3 1.3
Panama (PAN/PND) ..................... 1.3 1.3
Philippines (PHIL/PHP) ............... 1.7 1.7
Spain (SPN/ESP) ...................... 2.2 2.2
Sweden (SWDN/SEK) .................... 1.5 1.5
Thailand (THAI/THB) .................. 3.9 3.9
United Kingdom (UK/GBP) .............. 3.7 3.7
United States & Other (US/USD) ....... 36.4 3.5 39.9
Uruguay (URGY/UYP) ................... 1.1 1.1
------ ----- -----
Total ............................... 96.5 3.5 100.0
------ ----- -----
------ ----- -----
<FN>
- --------------
{d} Percentages indicated are based on net assets of $13,763,781.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL HEALTH CARE FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Pharmaceuticals (33.3%)
Pfizer, Inc. .............................................. US 250,000 $ 17,218,750 2.9
Sandoz AG - Registered .................................... SWTZ 15,000 16,387,367 2.7
Roche Holdings AG Genusscheine-/- ......................... SWTZ 2,000 15,734,773 2.6
Astra AB "B" Free ......................................... SWDN 300,000 13,256,514 2.2
R.P. Scherer Corp.-/- ..................................... US 300,000 11,850,000 2.0
Warner-Lambert Co. ........................................ US 100,000 11,175,000 1.9
Ciba-Geigy AG - Registered-/- ............................. SWTZ 8,500 9,868,273 1.6
Sanofi S.A. ............................................... FR 110,000 8,878,351 1.5
American Home Products Corp.-/- ........................... US 80,000 8,440,000 1.4
Ares-Serono Group "B"-/- .................................. SWTZ 10,220 7,287,061 1.2
Ethical Holdings PLC - ADR{::} -/- {\/} ................... UK 700,000 7,000,000 1.2
Schering-Plough Corp. ..................................... US 115,000 6,598,125 1.1
Pharmacia & Upjohn, Inc. .................................. US 170,000 6,502,500 1.1
QLT Phototherapeutics, Inc.-/- ............................ CAN 285,000 5,842,500 1.0
PDT, Inc. ................................................. US 110,000 5,197,500 0.9
Forest Laboratories, Inc. "A"-/- .......................... US 110,000 5,073,750 0.8
Rhone-Poulenc Rorer, Inc. ................................. FR 80,000 4,960,000 0.8
Hoechst AG ................................................ GER 14,000 4,717,600 0.8
Roussel-Uclaf ............................................. FR 20,000 4,714,991 0.8
Spiros Development Corp.(.) -/- ........................... US 100,000 4,688,000 0.8
Alpharma, Inc. "A"-/- ..................................... US 130,000 3,185,000 0.5
Teva Pharmaceutical Industries Ltd. - ADR{\/} ............. ISRL 70,000 3,141,250 0.5
Hafslund Nycomed AS "A"-/- ................................ NOR 100,900 2,965,930 0.5
Sonus Pharmaceuticals, Inc.-/- ............................ US 150,000 2,587,500 0.4
Fuisz Technologies Ltd. ................................... US 100,000 2,550,000 0.4
Advanced Therapeutic Systems-/- ........................... US 77,400 2,486,475 0.4
Sepracor, Inc.-/- ......................................... US 110,000 1,540,000 0.3
Catalytica, Inc.-/- ....................................... US 365,400 1,507,275 0.2
Anesta Corp.-/- ........................................... US 90,000 1,147,500 0.2
Watson Pharmaceuticals, Inc.-/- ........................... US 20,000 950,000 0.2
Therapeutic Discovery Corp. Units-/- ...................... US 100,000 912,500 0.1
Orphan Medical, Inc.-/- ................................... US 65,000 528,125 0.1
TheraTech, Inc.-/- ........................................ US 22,500 517,500 0.1
DUSA Pharmaceuticals, Inc.-/- ............................. CAN 40,000 470,000 0.1
------------
199,880,110
------------
Medical Technology & Supplies (25.4%)
Johnson & Johnson ......................................... US 150,000 13,875,000 2.3
Sunrise Medical, Inc.-/- .................................. US 608,300 11,101,475 1.8
Fresenius AG Preferred-/- ................................. GER 69,750 10,803,706 1.8
Becton, Dickinson & Co. ................................... US 110,000 8,868,750 1.5
Boston Scientific Corp.-/- ................................ US 200,000 8,625,000 1.4
Vital Signs, Inc.-/- ...................................... US 362,400 7,633,050 1.3
St. Jude Medical, Inc.-/- ................................. US 200,000 7,300,000 1.2
AVECOR Cardiovascular, Inc.{::} ........................... US 550,800 7,022,700 1.2
C.R. Bard, Inc. ........................................... US 180,000 6,570,000 1.1
Target Therapeutics, Inc.-/- .............................. US 119,500 $ 6,482,875 1.1
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL HEALTH CARE FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Medical Technology & Supplies (Continued)
MediSense, Inc.-/- ........................................ US 125,000 5,625,000 0.9
Advanced Technology Laboratories, Inc.-/- ................. US 165,800 5,388,500 0.9
Amersham International PLC ................................ UK 300,000 4,835,359 0.8
Summit Technology, Inc. ................................... US 250,000 4,468,750 0.7
Baxter International, Inc. ................................ US 100,000 4,425,000 0.7
Guidant Corp. ............................................. US 70,000 3,928,750 0.7
Metra Biosystems, Inc.-/- ................................. US 250,000 3,375,000 0.6
CNS, Inc. ................................................. US 150,000 2,962,500 0.5
Conceptus, Inc. ........................................... US 126,000 2,488,500 0.4
Cardiometrics, Inc.{::} -/- ............................... US 387,500 2,421,875 0.4
ATS Medical, Inc.-/- ...................................... US 235,000 2,350,000 0.4
NeoPath, Inc.-/- .......................................... US 102,100 2,348,300 0.4
Circon Corp.-/- ........................................... US 150,000 2,156,250 0.4
Mentor Corp.-/- ........................................... US 70,000 1,653,750 0.3
Physiometrix, Inc.-/- ..................................... US 125,000 1,531,250 0.3
KeraVision, Inc.-/- ....................................... US 95,000 1,508,125 0.2
Angeion Corp.-/- .......................................... US 140,000 1,487,500 0.2
IDEXX Laboratories, Inc. .................................. US 30,000 1,335,000 0.2
Heartstream, Inc.-/- ...................................... US 85,200 1,299,300 0.2
Cytyc Corp.-/- ............................................ US 52,500 1,161,563 0.2
INAMED Corp.-/- ........................................... US 100,000 1,037,500 0.2
Endovascular Technologies, Inc.-/- ........................ US 70,000 971,250 0.2
Heartport, Inc.-/- ........................................ US 20,000 715,000 0.1
Molecular Dynamics, Inc.-/- ............................... US 80,000 530,000 0.1
Optical Sensors, Inc.-/- .................................. US 39,500 518,438 0.1
UROHEALTH Systems, Inc. "A"-/- ............................ US 32,500 515,938 0.1
Quidel Corp.-/- ........................................... US 100,000 512,500 0.1
Ventritex, Inc.-/- ........................................ US 25,000 392,188 0.1
Research Medical, Inc.-/- ................................. US 15,000 376,875 0.1
Maxxim Medical, Inc.-/- ................................... US 20,000 355,000 0.1
Orthologic Corp.-/- ....................................... US 10,000 348,750 0.1
ReSound Corp.-/- .......................................... US 7,500 92,813 --
Versa Technologies, Inc. .................................. US 5,000 66,250 --
------------
151,465,330
------------
Health Care Services (20.1%)
Pacificare Health Systems, Inc.: .......................... US -- -- 3.7
"B"-/- .................................................. -- 161,000 13,503,875 --
"A"-/- .................................................. -- 108,000 8,748,000 --
United Healthcare Corp.-/- ................................ US 225,000 13,162,500 2.2
Quorum Health Group, Inc.-/- .............................. US 500,000 12,687,500 2.1
Tenet Healthcare Corp.-/- ................................. US 510,000 10,455,000 1.7
Health Management Associates, Inc. "A"-/- ................. US 300,000 9,600,000 1.6
U.S. Healthcare, Inc. ..................................... US 150,000 7,818,750 1.3
Beverly Enterprises ....................................... US 500,000 6,062,500 1.0
Health Systems International, Inc. "A"-/- ................. US 168,000 5,187,000 0.9
Wellpoint Health Networks, Inc. "A"-/- .................... US 110,000 3,767,500 0.6
FHP International Corp.-/- ................................ US 120,000 3,540,000 0.6
Coventry Corp.-/- ......................................... US 160,000 3,100,000 0.5
Lincare Holdings, Inc.-/- ................................. US 71,600 $ 2,778,975 0.5
Humana, Inc.-/- ........................................... US 110,000 2,708,750 0.4
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL HEALTH CARE FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Health Care Services (Continued)
Medaphis Corp. ............................................ US 55,000 2,536,875 0.4
Pyxis Corp.-/- ............................................ US 100,000 2,525,000 0.4
Caremark International, Inc. .............................. US 90,000 2,486,250 0.4
IBAH, Inc.-/- ............................................. US 200,000 1,750,000 0.3
Oxford Health Plans, Inc. ................................. US 30,800 1,555,400 0.3
Bergen Brunswig Corp. "A" ................................. US 50,000 1,362,500 0.2
Vencor, Inc.-/- ........................................... US 40,000 1,350,000 0.2
Unison Healthcare Corp.-/- ................................ US 100,000 1,212,500 0.2
HCIA, Inc.-/- ............................................. US 20,000 1,020,000 0.2
Health Care & Retirement Corp.-/- ......................... US 25,000 921,875 0.2
Cohr, Inc.-/- ............................................. US 35,000 778,750 0.1
Systemed, Inc.-/- ......................................... US 220,000 625,625 0.1
------------
121,245,125
------------
Biotechnology (14.0%)
Amgen, Inc.-/- ............................................ US 430,000 24,725,000 4.1
Biochem Pharma, Inc.-/- ................................... CAN 160,000 7,280,000 1.2
Protein Design Labs, Inc.-/- .............................. US 240,000 6,360,000 1.1
Incyte Pharmaceuticals, Inc.-/- ........................... US 125,200 4,022,050 0.7
Biogen, Inc.-/- ........................................... US 60,000 3,952,500 0.7
Matrix Pharmaceutical, Inc.-/- ............................ US 150,000 3,900,000 0.6
Neurex Corp.-/- ........................................... US 156,400 3,636,300 0.6
Genzyme Corp. - General Division-/- ....................... US 60,000 3,375,000 0.6
Neoprobe Corp.-/- ......................................... US 170,000 2,911,250 0.5
Alpha-Beta Technology, Inc.-/- ............................ US 260,000 2,697,500 0.4
COR Therapeutics, Inc.-/- ................................. US 230,000 2,443,750 0.4
SangStat Medical Corp.-/- ................................. US 130,000 2,177,500 0.4
Somatix Therapy Corp.-/- .................................. US 250,000 2,125,000 0.4
Vertex Pharmaceuticals, Inc.-/- ........................... US 71,000 2,076,750 0.3
Pharmacopeia, Inc.-/- ..................................... US 75,000 2,015,625 0.3
Arris Pharmaceutical Corp.-/- ............................. US 100,000 1,550,000 0.3
Regeneron Pharmaceuticals, Inc.-/- ........................ US 91,000 1,285,375 0.2
GelTex Pharmaceuticals, Inc.-/- ........................... US 44,900 1,055,150 0.2
Genome Therapeutics Corp.-/- .............................. US 106,000 1,046,750 0.2
Magainin Pharmaceuticals, Inc.-/- ......................... US 75,000 881,250 0.1
Agouron Pharmaceuticals, Inc. ............................. US 20,000 810,000 0.1
Guilford Pharmaceuticals, Inc.-/- ......................... US 30,000 765,000 0.1
NABI, Inc.-/- ............................................. US 52,100 641,481 0.1
Ribi ImmunoChem Research, Inc.-/- ......................... US 100,000 562,500 0.1
Sequana Therapeutics, Inc.-/- ............................. US 25,000 528,125 0.1
PathoGenesis Corp. ........................................ US 27,500 495,000 0.1
Lifecore Biomedical, Inc.-/- .............................. US 20,000 365,000 0.1
Depotech Corp.-/- ......................................... US 10,000 245,000 --
Enzon, Inc. Preferred-/- .................................. US 16,000 154,360 --
CytoTherapeutics, Inc.-/- ................................. US 10,000 147,500 --
ID Biomedical Corp. ....................................... CAN 20,000 132,500 --
Autoimmune, Inc.-/- ....................................... US 10,000 117,500 --
ImmuLogic Pharmaceutical Corp.-/- ......................... US 10,000 107,500 --
NeoRx Corp.-/- ............................................ US 10,000 $ 71,250 --
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL HEALTH CARE FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Biotechnology (Continued)
Pharmos Corp.-/- .......................................... US 20,000 50,625 --
------------
84,710,091
------------
Consumer Services (0.3%)
Service Corporation International ......................... US 30,000 1,593,750 0.3
------------ -----
TOTAL EQUITY INVESTMENTS (cost $442,873,100) ................ 558,894,406 93.1
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
ATS Medical Inc. Warrants, expire 3/2/97-/- ............... US 125,000 132,813 --
------------ -----
MEDICAL TECHNOLOGY & SUPPLIES
<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 $55,050,000 U.S. Treasury Bills,
effective yield 5.2% due 9/26/96 (market value of
collateral is $53,903,914, including accrued interest).
(cost $52,850,780) ....................................... 52,850,780 8.8
------------ -----
TOTAL INVESTMENTS (cost $495,723,880) * ..................... 611,877,999 101.9
Other Assets and Liabilities ................................ (11,366,877) (1.9)
------------ -----
NET ASSETS .................................................. $600,511,122 100.0
------------ -----
------------ -----
<FN>
- --------------
-/- Non-income producing security.
{::} See Note 6 of Notes to Financial Statements.
{\/} U.S. currency denominated.
(.) Restricted securities: At April 30, 1996, the Fund owned the
following restricted security constituting 0.8% 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
----------------------------------------------- ----------------- ------ ----------- ------
Spiros Development Corp........................ 1/3/96 100,000 $ 3,000,000 $46.88
</TABLE>
For Federal
income tax
purposes,
cost is
$496,256,497
and
appreciation
(depreciation)
* is as follows:
Unrealized appreciation: $ 122,938,933
Unrealized depreciation: (7,317,431)
-------------
Net unrealized appreciation: $ 115,621,502
-------------
-------------
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL HEALTH CARE FUND
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>
Canada (CAN/CAD) ..................... 2.3 2.3
France (FR/FRF) ...................... 3.1 3.1
Germany (GER/DEM) .................... 2.6 2.6
Israel (ISRL/ILS) .................... 0.5 0.5
Norway (NOR/NOK) ..................... 0.5 0.5
Sweden (SWDN/SEK) .................... 2.2 2.2
Switzerland (SWTZ/CHF) ............... 8.1 8.1
United Kingdom (UK/GBP) .............. 2.0 2.0
United States & Other (US/USD) ....... 71.8 6.9 78.7
------ ----- -----
Total ............................... 93.1 6.9 100.0
------ ----- -----
------ ----- -----
<FN>
- --------------
{d} Percentages indicated are based on net assets of $600,511,122.
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
CONTRACTS TO SELL: (U.S. DOLLARS)
- --------------------------------------------------------------------------------------------------------------- ---------------
<S> <C>
Deutsche Marks................................................................................................. 1,898,754
French Francs.................................................................................................. 1,935,546
Swiss Francs................................................................................................... 12,899,751
Swiss Francs................................................................................................... 4,939,803
---------------
Total Contracts to Sell (Receivable amount $22,631,764)...................................................... 21,673,854
---------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 3.61%.
Total Open Forward Foreign Currency Contracts, Net...........................................................
<CAPTION>
CONTRACT
CONTRACTS TO SELL: PRICE
- --------------------------------------------------------------------------------------------------------------- ----------
<S> <C>
Deutsche Marks................................................................................................. 1.44600
French Francs.................................................................................................. 5.09840
Swiss Francs................................................................................................... 1.18835
Swiss Francs................................................................................................... 1.17290
Total Contracts to Sell (Receivable amount $22,631,764)......................................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 3.61%.
Total Open Forward Foreign Currency Contracts, Net...........................................................
<CAPTION>
DELIVERY
CONTRACTS TO SELL: DATE
- --------------------------------------------------------------------------------------------------------------- -----------
Deutsche Marks................................................................................................. 05/31/96
French Francs.................................................................................................. 05/06/96
Swiss Francs................................................................................................... 05/20/96
Swiss Francs................................................................................................... 06/19/96
Total Contracts to Sell (Receivable amount $22,631,764)......................................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 3.61%.
Total Open Forward Foreign Currency Contracts, Net...........................................................
<CAPTION>
UNREALIZED
CONTRACTS TO SELL: APPRECIATION
- --------------------------------------------------------------------------------------------------------------- ---------------
Deutsche Marks................................................................................................. $ 106,779
French Francs.................................................................................................. 25,854
Swiss Francs................................................................................................... 564,296
Swiss Francs................................................................................................... 260,981
---------------
Total Contracts to Sell (Receivable amount $22,631,764)...................................................... 957,910
---------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 3.61%.
Total Open Forward Foreign Currency Contracts, Net........................................................... $ 957,910
---------------
---------------
</TABLE>
- --------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL INFRASTRUCTURE FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (27.9%)
Edison S.p.A. ............................................. ITLY 450,000 $ 2,573,158 2.9
ELECTRICAL & GAS UTILITIES
Korea Electric Power Corp.: ............................... KOR -- -- 2.9
ELECTRICAL & GAS UTILITIES
Common .................................................. -- 31,000 1,480,965 --
ADR{\/} ................................................. -- 38,000 1,054,500 --
Empresa Nacional de Electridad S.A. - ADR{\/} ............. SPN 40,000 2,505,000 2.8
ELECTRICAL & GAS UTILITIES
EVN Energie-Versorgung Niederoesterreich AG ............... ASTRI 16,800 2,458,537 2.8
ELECTRICAL & GAS UTILITIES
Compania Boliviana de Energia Electrica{\/} ............... BOL 62,300 2,305,100 2.6
ELECTRICAL & GAS UTILITIES
Enron Global Power & Pipelines L.L.C. ..................... US 90,000 2,227,500 2.5
ELECTRICAL & GAS UTILITIES
Companhia Energetica de Minas Gerais (Cemig) - ADR{\/} .... BRZL 81,174 2,019,203 2.3
ELECTRICAL & GAS UTILITIES
Capex S.A. ................................................ ARG 260,000 1,911,191 2.1
ELECTRICAL & GAS UTILITIES
BSES Ltd. - GDR{\/} ....................................... IND 80,600 1,582,178 1.8
ELECTRICAL & GAS UTILITIES
Consolidated Electric Power Asia Ltd. ..................... HK 950,000 1,572,075 1.8
ELECTRICAL & GAS UTILITIES
Chilgener S.A. - ADR{\/} .................................. CHLE 65,000 1,454,375 1.6
ELECTRICAL & GAS UTILITIES
MetroGas S.A. - ADR{\/} ................................... ARG 100,000 1,050,000 1.2
ELECTRICAL & GAS UTILITIES
AES China Generating Co., Ltd. "A"-/- ..................... US 54,100 527,475 0.6
ELECTRICAL & GAS UTILITIES
------------
24,721,257
------------
Services (25.7%)
ABC Rail Products Corp.-/- ................................ US 115,100 2,776,788 3.1
TRANSPORTATION - ROAD & RAIL
Telefonica de Espana - ADR{\/} ............................ SPN 50,000 2,631,250 3.0
TELEPHONE NETWORKS
Mannesmann AG ............................................. GER 7,500 2,563,558 2.9
WIRELESS COMMUNICATIONS
DDI Corp. ................................................. JPN 295 2,532,999 2.8
WIRELESS COMMUNICATIONS
Wisconsin Central Transportation Corp. .................... US 27,600 2,332,200 2.6
TRANSPORTATION - ROAD & RAIL
SPT Telecom-/- ............................................ CZCH 19,000 2,327,089 2.6
TELEPHONE NETWORKS
Hellenic Telecommunications - 144A{.} ..................... GREC 93,800 1,575,855 1.8
TELEPHONE NETWORKS
Philippine Long Distance Telephone Co. - ADR{\/} .......... PHIL 30,000 1,507,500 1.7
TELEPHONE NETWORKS
PT Indonesia Satellite (Indosat) - ADR{\/} ................ INDO 40,000 1,395,000 1.6
TELEPHONE - LONG DISTANCE
Canadian National Railway Co.{\/} ......................... CAN 53,100 $ 1,008,900 1.1
TRANSPORTATION - ROAD & RAIL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F13
<PAGE>
GT GLOBAL INFRASTRUCTURE FUND -- CONSOLIDATED
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Centennial Cellular Corp. "A"-/- .......................... US 50,000 818,750 0.9
WIRELESS COMMUNICATIONS
Pakistan Telecommunications Co., Ltd.: .................... PAK -- -- 0.9
TELEPHONE NETWORKS
GDR-/- {\/} ............................................. -- 4,892 494,092 --
New Voucher-/- {\/} ..................................... -- 2,800 279,070 --
Korea Mobile Telecom-/- ................................... KOR 290 416,151 0.5
WIRELESS COMMUNICATIONS
PST Vans, Inc.-/- ......................................... US 47,500 195,938 0.2
TRANSPORTATION - ROAD & RAIL
Telecomunicacoes Brasileiras S.A. (Telebras) - 144A ADR{.}
{\/} ..................................................... BRZL 113 6,116 --
TELEPHONE NETWORKS
------------
22,861,256
------------
Capital Goods (17.1%)
ASEA AB "B" Free .......................................... SWDN 22,000 2,233,173 2.5
ELECTRICAL PLANT/EQUIPMENT
Caterpillar, Inc. ......................................... US 30,000 1,920,000 2.2
MACHINERY & ENGINEERING
DSC Communications Corp.-/- ............................... US 60,000 1,890,000 2.1
TELECOM EQUIPMENT
United Engineers Ltd. ..................................... MAL 270,000 1,852,134 2.1
CONSTRUCTION
Nokia AB Preferred - ADR{\/} .............................. FIN 48,000 1,746,000 2.0
TELECOM EQUIPMENT
Allgon AB "B" Free ........................................ SWDN 110,000 1,679,749 1.9
TELECOM EQUIPMENT
Tadiran Telecommunications Ltd. ........................... ISRL 111,500 1,623,719 1.8
TELECOM EQUIPMENT
C & P Homes, Inc.-/- ...................................... PHIL 998,200 859,858 1.0
CONSTRUCTION
KCI Konecranes International-/- ........................... FIN 42,660 785,375 0.9
MACHINERY & ENGINEERING
BroadBand Technologies, Inc.-/- ........................... US 22,800 581,400 0.6
TELECOM EQUIPMENT
------------
15,171,408
------------
Materials/Basic Industry (14.5%)
Giant Cement Holding, Inc.-/- ............................. US 179,800 2,359,875 2.6
CEMENT
La Cementos Nacional, C.A. - GDR{\/} ...................... ECDR 15,060 2,319,240 2.6
CEMENT
Northwest Pipe Co.-/- ..................................... US 127,500 2,008,125 2.3
METALS - STEEL
PT Bakrie and Brothers-/- ................................. INDO 1,170,000 1,905,701 2.1
BUILDING MATERIALS & COMPONENTS
Hylsamex, S.A. de C.V. - ADR-/- {\/} ...................... MEX 75,000 1,772,250 2.0
METALS - STEEL
Siam Cement Co., Ltd. - Foreign ........................... THAI 28,000 1,441,984 1.6
CEMENT
PT Semen Cibinong - Foreign-/- ............................ INDO 316,000 934,591 1.0
CEMENT
</TABLE>
The accompanying notes are an integral part of the financial statements.
F14
<PAGE>
GT GLOBAL INFRASTRUCTURE FUND -- CONSOLIDATED
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Grupo Simec, S.A. de C.V. - ADR-/- {\/} ................... MEX 54,200 $ 311,650 0.3
METALS - STEEL
------------
13,053,416
------------
Technology (7.7%)
DSP Communications, Inc.-/- ............................... US 140,000 5,565,000 6.3
TELECOM TECHNOLOGY
Three-Five Systems, Inc.-/- ............................... US 90,000 1,260,000 1.4
TELECOM TECHNOLOGY
------------
6,825,000
------------
Multi Industry/Miscellaneous (4.6%)
Hafslund Nycomed AS "A"-/- ................................ NOR 80,800 2,375,095 2.7
CONGLOMERATE
E.R.G. Ltd. ............................................... AUSL 1,395,290 1,665,887 1.9
MULTI-INDUSTRY
------------
4,040,982
------------ -----
TOTAL EQUITY INVESTMENTS (cost $77,603,215) ................. 86,673,319 97.5
------------ -----
<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 $4,100,000 U.S. Treasury Notes, 6.625%
due 3/31/97 (market value of collateral is $4,158,242,
including accrued interest). (cost $4,072,599) ........... 4,072,599 4.6
------------ -----
TOTAL INVESTMENTS (cost $81,675,814) * ...................... 90,745,918 102.1
Other Assets and Liabilities ................................ (1,827,288) (2.1)
------------ -----
NET ASSETS .................................................. $ 88,918,630 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
* For Federal income tax purposes, cost is $81,825,814 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 14,360,168
Unrealized depreciation: (5,440,064)
-------------
Net unrealized appreciation: $ 8,920,104
-------------
-------------
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F15
<PAGE>
GT GLOBAL INFRASTRUCTURE FUND -- CONSOLIDATED
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) .................. 3.3 3.3
Australia (AUSL/AUD) ................. 1.9 1.9
Austria (ASTRI/ATS) .................. 2.8 2.8
Bolivia (BOL/BOL) .................... 2.6 2.6
Brazil (BRZL/BRL) .................... 2.3 2.3
Canada (CAN/CAD) ..................... 1.1 1.1
Chile (CHLE/CLP) ..................... 1.6 1.6
Czech Republic (CZCH/CSK) ............ 2.6 2.6
Ecuador (ECDR/ECS) ................... 2.6 2.6
Finland (FIN/FIM) .................... 2.9 2.9
Germany (GER/DEM) .................... 2.9 2.9
Greece (GREC/GRD) .................... 1.8 1.8
Hong Kong (HK/HKD) ................... 1.8 1.8
India (IND/INR) ...................... 1.8 1.8
Indonesia (INDO/IDR) ................. 4.7 4.7
Israel (ISRL/ILS) .................... 1.8 1.8
Italy (ITLY/ITL) ..................... 2.9 2.9
Japan (JPN/JPY) ...................... 2.8 2.8
Korea (KOR/KRW) ...................... 3.4 3.4
Malaysia (MAL/MYR) ................... 2.1 2.1
Mexico (MEX/MXN) ..................... 2.3 2.3
Norway (NOR/NOK) ..................... 2.7 2.7
Pakistan (PAK/PKR) ................... 0.9 0.9
Philippines (PHIL/PHP) ............... 2.7 2.7
Spain (SPN/ESP) ...................... 5.8 5.8
Sweden (SWDN/SEK) .................... 4.4 4.4
Thailand (THAI/THB) .................. 1.6 1.6
United States & Other (US/USD) ....... 27.4 2.5 29.9
------ ----- -----
Total ............................... 97.5 2.5 100.0
------ ----- -----
------ ----- -----
<FN>
- --------------
{d} Percentages indicated are based on net assets of $88,918,630.
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
CONTRACTS TO SELL: (U.S. DOLLARS)
- ---------------------------------------------------------------------------------------------------------- ---------------
<S> <C>
Deutsche Marks............................................................................................ 654,743
Deutsche Marks............................................................................................ 1,047,589
Italian Liras............................................................................................. 1,369,165
Japanese Yen.............................................................................................. 722,445
Japanese Yen.............................................................................................. 85,960
Japanese Yen.............................................................................................. 316,825
---------------
Total Contracts to Sell (Receivable amount $4,246,852).................................................. 4,196,727
---------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 4.72%.
Total Open Forward Foreign Currency Contracts, Net......................................................
<CAPTION>
CONTRACT
CONTRACTS TO SELL: PRICE
- ---------------------------------------------------------------------------------------------------------- ---------------
<S> <C>
Deutsche Marks............................................................................................ 1.44600
Deutsche Marks............................................................................................ 1.44600
Italian Liras............................................................................................. 1598.85000
Japanese Yen.............................................................................................. 105.68600
Japanese Yen.............................................................................................. 105.68600
Japanese Yen.............................................................................................. 105.65000
Total Contracts to Sell (Receivable amount $4,246,852)..................................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 4.72%.
Total Open Forward Foreign Currency Contracts, Net......................................................
<CAPTION>
DELIVERY
CONTRACTS TO SELL: DATE
- ---------------------------------------------------------------------------------------------------------- -----------
Deutsche Marks............................................................................................ 05/31/96
Deutsche Marks............................................................................................ 05/31/96
Italian Liras............................................................................................. 05/16/96
Japanese Yen.............................................................................................. 05/14/96
Japanese Yen.............................................................................................. 05/14/96
Japanese Yen.............................................................................................. 07/08/96
Total Contracts to Sell (Receivable amount $4,246,852)..................................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 4.72%.
Total Open Forward Foreign Currency Contracts, Net......................................................
<CAPTION>
UNREALIZED
APPRECIATION
CONTRACTS TO SELL: (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------- ----------------
Deutsche Marks............................................................................................ $ 36,820
Deutsche Marks............................................................................................ 58,912
Italian Liras............................................................................................. (32,267)
Japanese Yen.............................................................................................. (6,740)
Japanese Yen.............................................................................................. (802)
Japanese Yen.............................................................................................. (5,798)
----------------
Total Contracts to Sell (Receivable amount $4,246,852).................................................. 50,125
----------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 4.72%.
Total Open Forward Foreign Currency Contracts, Net...................................................... $ 50,125
----------------
----------------
</TABLE>
- --------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F16
<PAGE>
GT GLOBAL NATURAL RESOURCES FUND -- CONSOLIDATED
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy Equipment & Services (30.4%)
Transocean AS-/- .......................................... NOR 88,100 $ 2,468,915 3.8
3-D Geophysical, Inc.-/- .................................. US 191,900 2,254,825 3.5
Petroleum Geo-Services AS - ADR-/- {\/} ................... NOR 67,000 2,118,875 3.3
Reading & Bates Corp.-/- .................................. US 84,700 2,075,150 3.2
Input/Output, Inc. ........................................ US 57,800 2,008,550 3.1
Global Marine, Inc.-/- .................................... US 174,500 1,984,938 3.1
Landmark Graphics Corp.-/- ................................ US 100,000 1,975,000 3.1
Total Compagnie Francaise des Petroles S.A. - ADR-/-
{\/} ..................................................... FR 48,000 1,644,000 2.5
Tuboscope Vetco International Corp.-/- .................... US 119,100 1,548,300 2.4
Veritas Energy Services, Inc.-/- .......................... CAN 147,500 1,544,018 2.4
------------
19,622,571
------------
Gold (16.2%)
Bre-X Minerals Ltd.-/- .................................... CAN 16,300 2,394,770 3.7
Greenstone Resources Ltd.-/- .............................. CAN 149,000 1,417,432 2.2
Lihir Gold Ltd.-/- ........................................ AUSL 847,600 1,371,499 2.1
Oryx Gold Holdings Ltd.-/- ................................ SAFR 840,000 1,284,820 2.0
Miramar Mining Corp.-/- ................................... CAN 135,000 828,069 1.3
Firstmiss Gold, Inc.-/- ................................... US 25,800 793,350 1.2
Triton Mining Corp. ....................................... CAN 120,400 751,781 1.2
Eldorado Corp. Ltd.-/- .................................... CAN 109,000 652,575 1.0
Dayton Mining Corp.-/- .................................... CAN 90,000 621,465 1.0
Asquith Resources, Inc.-/- ................................ CAN 262,700 347,359 0.5
------------
10,463,120
------------
Metals - Non-Ferrous (13.6%)
Diamond Fields Resources, Inc. ............................ CAN 105,400 3,244,149 5.0
Cameco Corp. - Partially Paid ............................. CAN 74,100 2,076,629 3.2
Viridian, Inc. - Exchange Certificates-/- ................. CAN 238,500 1,533,002 2.4
International Curator Resources Ltd.-/- ................... CAN 100,000 1,006,391 1.6
PT Tambang Timah: ......................................... INDO -- -- 1.4
144A GDR{.} -/- {\/} .................................... -- 33,500 578,043 --
Reg. S GDR-/- {c} {\/} .................................. -- 20,000 345,100 --
------------
8,783,314
------------
Oil (12.6%)
Benton Oil & Gas Co.-/- ................................... US 123,200 2,156,000 3.3
Ente Nazionale Idrocarburi (ENI) S.p.A. - ADR-/- {\/} ..... ITLY 49,000 2,082,500 3.2
Abacan Resource Corp.-/- .................................. CAN 377,900 2,068,137 3.2
Anadarko Petroleum Corp. .................................. US 32,600 1,898,950 2.9
------------
8,205,587
------------
Metals - Steel (9.4%)
UCAR International, Inc.-/- ............................... US 50,200 2,058,200 3.2
The Carbide/Graphite Group, Inc.-/- ....................... US 103,600 1,838,900 2.9
SGL Carbon AG ............................................. GER 13,600 1,284,360 2.0
</TABLE>
The accompanying notes are an integral part of the financial statements.
F17
<PAGE>
GT GLOBAL NATURAL RESOURCES FUND -- CONSOLIDATED
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Metals - Steel (Continued)
Boehler - Uddeholm AG-/- .................................. ASTRI 10,000 $ 816,725 1.3
------------
5,998,185
------------
Chemicals (6.5%)
Cytec Industries, Inc.-/- ................................. US 25,500 2,113,313 3.3
Monsanto Co. .............................................. US 13,800 2,090,700 3.2
------------
4,204,013
------------
Gas Production & Distribution (5.8%)
Chesapeake Energy Corp.-/- ................................ US 37,000 2,617,750 4.1
Sceptre Resources Ltd.-/- ................................. CAN 150,000 1,074,341 1.7
------------
3,692,091
------------
Miscellaneous (4.1%)
Saskatchewan Wheat Pool-/- ................................ CAN 256,000 2,660,986 4.1
------------
Machinery & Engineering (3.2%)
Harnischfeger Industries, Inc. ............................ US 50,900 2,061,450 3.2
------------ -----
TOTAL EQUITY INVESTMENTS (cost $55,026,328) ................. 65,691,317 101.8
------------ -----
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS COUNTRY WARRANTS VALUE ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Arian Resources Corp. Warrants, expire 6/30/96 (cost
$660,000)-/- {\/} ........................................ CAN 200,000 500,000 0.8
------------ -----
GOLD
<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 $1,405,000 U.S. Treasury Bills,
effective yield 5.2% due 9/26/96 (market value of
collateral is $1,375,749, including accrued interest).
(cost $1,345,198) ........................................ 1,345,198 2.1
------------ -----
TOTAL INVESTMENTS (cost $57,031,526) * ...................... 67,536,515 104.7
Other Assets and Liabilities ................................ (3,016,319) (4.7)
------------ -----
NET ASSETS .................................................. $ 64,520,196 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
* For Federal income tax purposes, cost is $57,031,526 and
appreciation (depreciation) is as follows:
Unrealized appreciation: $ 10,837,845
Unrealized depreciation: (332,856)
-------------
Net unrealized appreciation: $ 10,504,989
-------------
-------------
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F18
<PAGE>
GT GLOBAL NATURAL RESOURCES FUND -- CONSOLIDATED
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) ................. 2.1 2.1
Austria (ASTRI/ATS) .................. 1.3 1.3
Canada (CAN/CAD) ..................... 34.5 0.8 35.3
France (FR/FRF) ...................... 2.5 2.5
Germany (GER/DEM) .................... 2.0 2.0
Indonesia (INDO/IDR) ................. 1.4 1.4
Italy (ITLY/ITL) ..................... 3.2 3.2
Norway (NOR/NOK) ..................... 7.1 7.1
South Africa (SAFR/ZAR) .............. 2.0 2.0
United States & Other (US/USD) ....... 45.7 (2.6) 43.1
------ ----- ----- -----
Total ............................... 101.8 0.8 (2.6) 100.0
------ ----- ----- -----
------ ----- ----- -----
<FN>
- --------------
{d} Percentages indicated are based on net assets of $64,520,196.
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
CONTRACTS TO SELL: (U.S. DOLLARS)
- ---------------------------------------------------------------------------------------------------------------- ---------------
<S> <C>
Deutsche Marks.................................................................................................. 523,794
French Francs................................................................................................... 387,109
---------------
Total Contracts to Sell (Receivable amount $945,530).......................................................... 910,903
---------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 1.41%.
Total Open Forward Foreign Currency Contracts, Net............................................................
<CAPTION>
CONTRACT
CONTRACTS TO SELL: PRICE
- ---------------------------------------------------------------------------------------------------------------- ----------
<S> <C>
Deutsche Marks.................................................................................................. 1.44600
French Francs................................................................................................... 5.09840
Total Contracts to Sell (Receivable amount $945,530)..........................................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 1.41%.
Total Open Forward Foreign Currency Contracts, Net............................................................
<CAPTION>
DELIVERY
CONTRACTS TO SELL: DATE
- ---------------------------------------------------------------------------------------------------------------- -----------
Deutsche Marks.................................................................................................. 05/31/96
French Francs................................................................................................... 05/06/96
Total Contracts to Sell (Receivable amount $945,530)..........................................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 1.41%.
Total Open Forward Foreign Currency Contracts, Net............................................................
<CAPTION>
UNREALIZED
CONTRACTS TO SELL: APPRECIATION
- ---------------------------------------------------------------------------------------------------------------- ---------------
Deutsche Marks.................................................................................................. $ 29,456
French Francs................................................................................................... 5,171
---------------
Total Contracts to Sell (Receivable amount $945,530).......................................................... 34,627
---------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 1.41%.
Total Open Forward Foreign Currency Contracts, Net............................................................ $ 34,627
---------------
---------------
</TABLE>
- --------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F19
<PAGE>
GT GLOBAL TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
Telecom Equipment (23.1%)
Nokia AB "A" ............................................ FIN 2,452,160 $ 87,702,142 3.3
L.M. Ericsson Telephone Co.: ............................ SWDN -- -- 3.1
ADR{\/} ............................................... -- 3,224,300 65,695,113 --
"B" Free-/- ........................................... -- 871,200 17,673,876 --
ECI Telecommunications Ltd.{\/} ......................... ISRL 2,808,500 73,372,063 2.7
Newbridge Networks Corp.-/- {\/} ........................ CAN 782,400 50,367,000 1.9
DSC Communications Corp.-/- ............................. US 1,500,100 47,253,150 1.8
Andrew Corp.-/- ......................................... US 817,950 39,261,600 1.5
Gandalf Technologies, Inc.-/- {\/} ...................... CAN 2,000,000 35,500,000 1.3
ANTEC Corp.{::} -/- ..................................... US 2,162,300 32,434,500 1.2
Stratacom, Inc.{::} -/- ................................. US 535,000 27,820,000 1.0
Scientific-Atlanta, Inc. ................................ US 1,075,000 19,887,500 0.7
Spectrian Corp.{::} -/- ................................. US 792,500 19,614,375 0.7
Mitel Corp.-/- {\/} ..................................... CAN 2,798,100 19,236,938 0.7
U.S. Robotics Corp.-/- .................................. US 100,000 15,650,000 0.6
General Instrument Corp.-/- ............................. US 400,000 13,100,000 0.5
BroadBand Technologies, Inc.-/- ......................... US 492,300 12,553,650 0.5
Tekelec{::} -/- ......................................... US 840,500 11,767,000 0.4
Champion Technology Holding Ltd. ........................ HK 73,439,163 8,639,902 0.3
Allen Group, Inc. ....................................... US 300,000 7,425,000 0.3
Glenayre Technologies, Inc.-/- .......................... US 108,000 5,022,000 0.2
Netas Telekomunik-/- .................................... TRKY 17,820,000 4,619,035 0.2
Geotek Communications, Inc.-/- .......................... US 426,100 4,420,788 0.2
--------------
619,015,632
--------------
Wireless Communications (20.2%)
DDI Corp. ............................................... JPN 15,720 134,978,794 5.0
Mannesmann AG ........................................... GER 160,900 54,996,863 2.0
Millicom International Cellular S.A.-/- {\/} ............ LUX 1,057,000 49,943,250 1.9
Telecom Italia Mobile S.p.A.: ........................... ITLY -- -- 1.6
Di Risp ............................................... -- 16,230,000 22,873,799 --
Common ................................................ -- 8,365,001 18,359,060 --
Advanced Info. Service - Foreign ........................ THAI 1,993,150 33,794,248 1.3
Shinawatra Computer Co., Ltd. - Foreign ................. THAI 1,399,100 33,476,861 1.2
United Communication Industry - Foreign ................. THAI 1,967,800 27,439,908 1.0
Olivetti Group-/- ....................................... ITLY 41,032,497 26,916,897 1.0
Korea Mobile Telecom-/- ................................. KOR 16,790 24,093,715 0.9
Telephone and Data Systems, Inc. ........................ US 508,500 23,645,250 0.9
Grupo Iusacell, S.A. de C.V. "L" - ADR-/- {\/} .......... MEX 1,672,100 23,200,388 0.9
Vodafone Group PLC ...................................... UK 5,795,000 23,132,950 0.9
International Engineering PLC - Foreign{::} ............. THAI 3,057,700 13,324,367 0.5
Tele 2000 S.A.{::} -/- .................................. PERU 6,386,222 10,248,160 0.4
WinStar Communications, Inc.-/- ......................... US 405,700 8,671,838 0.3
Intercel, Inc.-/- ....................................... US 365,000 8,212,500 0.3
American Portable Telecom, Inc. ......................... US 255,000 3,825,000 0.1
--------------
$ 541,133,848
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F20
<PAGE>
GT GLOBAL TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
Telephone Networks (16.0%)
Telefonica de Argentina S.A. "B" - ADR{\/} .............. ARG 1,763,000 $ 51,567,750 1.9
Nippon Telegraph & Telephone Corp. ...................... JPN 6,120 47,405,158 1.8
SPT Telecom-/- .......................................... CZCH 368,000 45,072,046 1.7
Stet Societa' Finanziaria Telefonica S.p.A. - Di Risp ... ITLY 16,820,000 44,059,564 1.6
Telecomunicacoes Brasileiras S.A. (Telebras) -
ADR{\/} ................................................ BRZL 677,800 36,685,925 1.4
Telecom Italia S.p.A.: .................................. ITLY -- -- 1.1
Di Risp ............................................... -- 12,172,000 20,312,659 --
Common ................................................ -- 4,274,001 8,695,853 --
Frontier Corp. .......................................... US 900,000 28,462,500 1.1
Hong Kong Telecommunications Ltd.-/- .................... HK 12,748,000 24,309,373 0.9
Pakistan Telecommunications Co., Ltd. - GDR-/- {\/} ..... PAK 225,437 22,769,137 0.8
Telecom Argentina S.A. - ADR{\/} ........................ ARG 487,100 22,041,275 0.8
Telefonos de Mexico, S.A. de C.V. "L" - ADR{\/} ......... MEX 492,950 16,760,300 0.6
Hellenic Telecommunications - 144A{.} ................... GREC 880,000 14,784,145 0.5
Atlantic Tele-Network, Inc.{::} -/- ..................... US 660,100 14,522,200 0.5
PT Indonesia Satellite (Indosat) - ADR{\/} .............. INDO 300,000 10,462,500 0.4
Orient Telecom & Technology Holdings Ltd.-/- ............ HK 24,682,000 9,652,624 0.4
Russian Telecommunications Development Corp.: ........... RUS -- -- 0.3
Non-Voting(.) -/- {\/} ................................ -- 453,000 4,530,000 --
Voting(.) -/- {\/} .................................... -- 331,000 3,310,000 --
TelecomAsia Corp. - Foreign-/- .......................... THAI 1,257,000 3,286,535 0.1
Jasmine International Public Co., Ltd. - Foreign ........ THAI 560,400 1,931,419 0.1
--------------
430,620,963
--------------
Cable Television (6.9%)
Comcast Corp. "A" ....................................... US 2,904,300 50,825,250 1.9
Nynex CableComms Group: ................................. UK -- -- 1.3
Units-/- .............................................. -- 15,134,000 28,613,750 --
ADR-/- {\/} ........................................... -- 273,900 5,101,388 --
International CableTel, Inc.-/- ......................... US 855,833 25,033,115 0.9
TCI Group "A"-/- ........................................ US 1,300,200 24,866,325 0.9
Rogers Communications, Inc. "B"-/- ...................... CAN 2,376,400 23,741,306 0.9
Bell Cablemedia PLC - ADR-/- {\/} ....................... UK 963,300 16,376,100 0.6
Comcast UK Cable Partners Ltd. "A"-/- ................... US 415,000 5,498,750 0.2
United International Holdings, Inc. "A"-/- .............. US 373,000 5,361,875 0.2
--------------
185,417,859
--------------
Broadcasting & Publishing (6.5%)
Time Warner, Inc. ....................................... US 1,150,400 47,022,600 1.7
Grupo Televisa, S.A. de C.V. - GDR-/- {\/} .............. MEX 800,000 24,800,000 0.9
Canal Plus .............................................. FR 84,390 20,678,939 0.8
Granada Group PLC ....................................... UK 1,500,000 18,572,395 0.7
Sistem Televisyen Malaysia Bhd. ......................... MAL 3,718,000 16,555,600 0.6
Tele-Communications Liberty Media Group, Inc. "A"-/- .... US 531,800 14,558,025 0.5
EchoStar Communications Corp. "A"-/- .................... US 425,700 14,260,950 0.5
Evergreen Media Corp. "A"-/- ............................ US 251,100 9,855,675 0.4
Home Shopping Network, Inc.-/- .......................... US 800,600 9,407,050 0.3
International Broadcasting Corp., Ltd. - Foreign ........ THAI 1,741,900 3,622,777 0.1
Medya Holding AS ........................................ TRKY 37,932,160 932,799 --
--------------
180,266,810
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F21
<PAGE>
GT GLOBAL TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
Telephone - Regional/Local (5.3%)
MFS Communications Co., Inc.-/- ......................... US 2,878,000 $ 99,830,625 3.7
Intermedia Communications of Florida, Inc.{::} -/- ...... US 873,900 21,629,025 0.8
IntelCom Group, Inc.-/- ................................. US 1,036,300 20,855,538 0.8
--------------
142,315,188
--------------
Telecom Technology (4.4%)
Kyushu-Matsushita Electric Co., Ltd. .................... JPN 2,557,000 53,728,749 2.0
DSP Communications, Inc.{::} ............................ US 1,058,200 42,063,450 1.6
Murata Manufacturing Co., Ltd. .......................... JPN 542,000 21,017,383 0.8
--------------
116,809,582
--------------
Multi-Industry (4.1%)
Grupo Carso, S.A. de C.V. "A1"-/- ....................... MEX 8,995,000 68,735,377 2.6
Compagnie Generale des Eaux ............................. FR 142,874 15,541,505 0.6
Hutchison Whampoa ....................................... HK 2,094,000 12,994,441 0.5
Tadiran Ltd.{\/} ........................................ ISRL 455,600 10,478,800 0.4
--------------
107,750,123
--------------
Consumer Electronics (2.3%)
Amcol Holdings Ltd. ..................................... SING 10,644,000 30,448,217 1.1
Himachal Futuristic Communications Ltd. - 144A GDR{.} -/-
{\/} ................................................... IND 2,148,000 12,619,500 0.5
Three-Five Systems, Inc.{::} -/- ........................ US 749,000 10,486,000 0.4
Sapura Telecommunications Bhd. .......................... MAL 4,730,000 6,754,974 0.3
--------------
60,308,691
--------------
Telephone - Long Distance (1.8%)
Call-Net Enterprises, Inc.: ............................. CAN -- -- 0.8
"B"-/- ................................................ -- 1,036,700 11,423,272 --
"A"-/- ................................................ -- 519,400 5,856,747 --
144A{.} -/- ........................................... -- 379,400 4,180,563 --
LCI International, Inc.-/- .............................. US 498,700 12,966,200 0.5
GN Store Nord AS ........................................ DEN 134,166 11,395,637 0.4
Petersburg Long Distance, Inc.-/- {\/} .................. RUS 510,000 2,550,000 0.1
--------------
48,372,419
--------------
Networking (1.6%)
3Com Corp. .............................................. US 771,000 35,562,375 1.3
Bay Networks, Inc. ...................................... US 250,000 7,875,000 0.3
--------------
43,437,375
--------------
Semiconductors (1.3%)
LSI Logic Corp.-/- ...................................... US 1,000,000 36,000,000 1.3
--------------
Industrial Components (1.3%)
Oak Industries, Inc.-/- ................................. US 577,800 15,600,600 0.6
Alcatel Cable ........................................... FR 133,813 12,432,060 0.5
PT Kabelmetal Indonesia - Local-/- ...................... INDO 5,100,000 3,770,896 0.1
PT Kabelindo Murni - Foreign{::} ........................ INDO 4,316,000 1,803,729 0.1
PT Voksel Electronics - Foreign ......................... INDO 1,106,700 664,115 --
--------------
34,271,400
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F22
<PAGE>
GT GLOBAL TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
MARKET % OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
Aerospace/Defense (1.1%)
Orbital Sciences Corp.{::} -/- .......................... US 2,163,500 $ 29,207,250 1.1
--------------
Real Estate (0.9%)
Wharf (Holdings) Ltd. ................................... HK 6,487,000 24,027,479 0.9
--------------
Automobiles (0.5%)
Edaran Otomobil Nasional Bhd. ........................... MAL 1,483,000 12,671,654 0.5
--------------
Banks-Regional (0.2%)
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ... MEX 2,576,000 5,943,547 0.2
--------------
Other Financial (0.2%)
Phatra Thanakit Co., Ltd. - Foreign ..................... THAI 619,500 5,399,121 0.2
--------------
Software (0.1%)
Quarterdeck Corp.-/- .................................... US 248,100 3,845,550 0.1
--------------
Retailers-Other (0.0%)
Gran Cadena de Almacenes Colombianos S.A. ............... COL 64,000 73,529 --
Grupo Mexicano de Video - 144A ADR{::} {.} {\/} ......... MEX 122,000 30,500 --
--------------
104,029
-------------- -----
TOTAL EQUITY INVESTMENTS (cost $2,192,355,739) ............ 2,626,918,520 97.8
-------------- -----
<CAPTION>
PRINCIPAL MARKET % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT VALUE ASSETS
- ----------------------------------------------------------- -------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
Structured Notes (0.5%)
Russia (0.5%)
Credit Suisse Synthetic Equity Medium Term Note, 3.25%
due 4/29/97 (This is an equity linked note. The value
of this note is linked to the underlying value of
Rostelecom.) ......................................... USD 7,000,000 14,411,670 0.5
--------------
Corporate Bonds (0.1%)
Malaysia (0.1%)
Sapura Telecommunications Bhd., Convertible Bond, 2%
due 9/14/00 .......................................... MYR 3,547,500 1,053,093 0.1
-------------- -----
TOTAL FIXED INCOME INVESTMENTS (cost $8,399,408) .......... 15,464,763 0.6
-------------- -----
<CAPTION>
NO. OF MARKET % OF NET
WARRANTS (0.0%) COUNTRY WARRANTS VALUE ASSETS
- ----------------------------------------------------------- -------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
American Satellite Network Warrants, expire 1/1/99 (cost
$0)-/- ................................................. US 65,825 -- --
-------------- -----
WIRELESS COMMUNICATIONS
<CAPTION>
MARKET % OF NET
REPURCHASE AGREEMENTS VALUE ASSETS
- ----------------------------------------------------------- -------------- -------------
<S> <C> <C> <C> <C>
Dated April 30, 1996, with Bank of America, due May 1,
1996, for an effective yield of 5.3%, collateralized by
$42,175,000 U.S. Treasury Bills, effective yield 5.4%
due 12/12/96 (market value of collateral is $40,816,543,
including accrued interest). .......................... 40,005,889 1.5
</TABLE>
The accompanying notes are an integral part of the financial statements.
F23
<PAGE>
GT GLOBAL TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
MARKET % OF NET
REPURCHASE AGREEMENTS 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 $14,995,000 U.S. Treasury Bills,
effective yield 5.2% due 9/26/96 (market value of
collateral is $14,682,819, including accrued interest).
....................................................... $ 14,394,119 0.5
-------------- -----
TOTAL REPURCHASE AGREEMENTS (cost $54,400,008) ............ 54,400,008 2.0
-------------- -----
TOTAL INVESTMENTS (cost $2,255,155,155) * ................. 2,696,783,291 100.4
Other Assets and Liabilities .............................. (11,866,091) (0.4)
-------------- -----
NET ASSETS ................................................ $2,684,917,200 100.0
-------------- -----
-------------- -----
<FN>
- --------------
-/- Non-income producing security.
{::} See Note 6 of Notes to Financial Statements.
{\/} U.S. currency denominated.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
(.) Restricted securities -- At April 30, 1996, the Fund owned the
following restricted securities constituting 0.3% of net assets
which may not be publicly sold without registration under the
Securities Act of 1933 (Note 1). Additional information on
restricted securities is as follows:
MARKET
VALUE
ACQUISITION PER
DESCRIPTION ACQUISITION DATE SHARES COST SHARE
----------------------------------------------- ----------------- ------ ----------- ------
Russian Telecommunications Development
Corporation:
Non-voting................................... 12/22/93 453,000 $ 4,530,000 $10.00
Voting....................................... 12/22/93 331,000 3,310,000 10.00
</TABLE>
For Federal
income tax
purposes,
cost is
$2,260,573,912
and
appreciation
(depreciation)
* is as follows:
Unrealized appreciation: $ 617,448,613
Unrealized depreciation: (181,239,234)
-------------
Net unrealized appreciation: $ 436,209,379
-------------
-------------
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F24
<PAGE>
GT GLOBAL TELECOMMUNICATIONS 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>
Argentina (ARG/ARS) .................. 2.7 2.7
Brazil (BRZL/BRL) .................... 1.4 1.4
Canada (CAN/CAD) ..................... 5.6 5.6
Czech Republic (CZCH/CSK) ............ 1.7 1.7
Denmark (DEN/DKK) .................... 0.4 0.4
Finland (FIN/FIM) .................... 3.3 3.3
France (FR/FRF) ...................... 1.9 1.9
Germany (GER/DEM) .................... 2.0 2.0
Greece (GREC/GRD) .................... 0.5 0.5
Hong Kong (HK/HKD) ................... 3.0 3.0
India (IND/INR) ...................... 0.5 0.5
Indonesia (INDO/IDR) ................. 0.6 0.6
Israel (ISRL/ILS) .................... 3.1 3.1
Italy (ITLY/ITL) ..................... 5.3 5.3
Japan (JPN/JPY) ...................... 9.6 9.6
Korea (KOR/KRW) ...................... 0.9 0.9
Luxembourg (LUX/LUF) ................. 1.9 1.9
Malaysia (MAL/MYR) ................... 1.4 0.1 1.5
Mexico (MEX/MXN) ..................... 5.2 5.2
Pakistan (PAK/PKR) ................... 0.8 0.8
Peru (PERU/PES) ...................... 0.4 0.4
Russia (RUS/SUR) ..................... 0.4 0.5 0.9
Singapore (SING/SGD) ................. 1.1 1.1
Sweden (SWDN/SEK) .................... 3.1 3.1
Thailand (THAI/THB) .................. 4.5 4.5
Turkey (TRKY/TRL) .................... 0.2 0.2
United Kingdom (UK/GBP) .............. 3.5 3.5
United States & Other (US/USD) ....... 32.8 1.6 34.4
------ ----- ----- -----
Total ............................... 97.8 0.6 1.6 100.0
------ ----- ----- -----
------ ----- ----- -----
<FN>
- --------------
{d} Percentages indicated are based on net assets of $2,684,917,200.
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
CONTRACTS TO BUY: (U.S. DOLLARS)
- --------------------------------------------------------------------------------------------------------- ---------------
<S> <C>
Italian Liras............................................................................................ 64,233,848
Japanese Yen............................................................................................. 19,847,182
Japanese Yen............................................................................................. 36,466,094
---------------
Total Contracts to Buy (Payable amount $119,947,781)................................................... 120,547,124
---------------
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 4.49%.
<CAPTION>
CONTRACTS TO SELL:
- ---------------------------------------------------------------------------------------------------------
<S> <C>
Deutsche Marks........................................................................................... 36,010,861
French Francs............................................................................................ 23,945,445
Italian Liras............................................................................................ 64,233,848
Japanese Yen............................................................................................. 70,964,661
Japanese Yen............................................................................................. 35,339,064
Japanese Yen............................................................................................. 51,573,326
---------------
Total Contracts to Sell (Receivable amount $281,861,195)............................................... 282,067,205
---------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 10.51%.
Total Open Forward Foreign Currency Contracts, Net.....................................................
<CAPTION>
CONTRACT
CONTRACTS TO BUY: PRICE
- --------------------------------------------------------------------------------------------------------- ---------------
<S> <C>
Italian Liras............................................................................................ 1556.14700
Japanese Yen............................................................................................. 105.83100
Japanese Yen............................................................................................. 106.43550
Total Contracts to Buy (Payable amount $119,947,781)...................................................
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 4.49%.
CONTRACTS TO SELL:
- ---------------------------------------------------------------------------------------------------------
<S> <C>
Deutsche Marks........................................................................................... 1.44600
French Francs............................................................................................ 5.05405
Italian Liras............................................................................................ 1598.85000
Japanese Yen............................................................................................. 105.00000
Japanese Yen............................................................................................. 105.00000
Japanese Yen............................................................................................. 105.65000
Total Contracts to Sell (Receivable amount $281,861,195)...............................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 10.51%.
Total Open Forward Foreign Currency Contracts, Net.....................................................
<CAPTION>
DELIVERY
CONTRACTS TO BUY: DATE
- --------------------------------------------------------------------------------------------------------- -----------
Italian Liras............................................................................................ 05/16/96
Japanese Yen............................................................................................. 05/09/96
Japanese Yen............................................................................................. 05/09/96
Total Contracts to Buy (Payable amount $119,947,781)...................................................
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 4.49%.
CONTRACTS TO SELL:
- ---------------------------------------------------------------------------------------------------------
Deutsche Marks........................................................................................... 05/31/96
French Francs............................................................................................ 05/17/96
Italian Liras............................................................................................ 05/16/96
Japanese Yen............................................................................................. 05/09/96
Japanese Yen............................................................................................. 05/09/96
Japanese Yen............................................................................................. 07/08/96
Total Contracts to Sell (Receivable amount $281,861,195)...............................................
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 10.51%.
Total Open Forward Foreign Currency Contracts, Net.....................................................
<CAPTION>
UNREALIZED
APPRECIATION
CONTRACTS TO BUY: (DEPRECIATION)
- --------------------------------------------------------------------------------------------------------- ----------------
Italian Liras............................................................................................ $ (207,365)
Japanese Yen............................................................................................. 212,103
Japanese Yen............................................................................................. 594,605
----------------
Total Contracts to Buy (Payable amount $119,947,781)................................................... 599,343
----------------
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 4.49%.
CONTRACTS TO SELL:
- ---------------------------------------------------------------------------------------------------------
Deutsche Marks........................................................................................... 2,025,100
French Francs............................................................................................ 530,272
Italian Liras............................................................................................ (1,513,768)
Japanese Yen............................................................................................. (202,756)
Japanese Yen............................................................................................. (100,969)
Japanese Yen............................................................................................. (943,889)
----------------
Total Contracts to Sell (Receivable amount $281,861,195)............................................... (206,010)
----------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 10.51%.
Total Open Forward Foreign Currency Contracts, Net..................................................... $ 393,333
----------------
----------------
</TABLE>
- --------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F25
<PAGE>
GT GLOBAL THEME FUNDS
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------
CONSUMER PRODUCTS FINANCIAL
AND SERVICES SERVICES INFRASTRUCTURE
FUND-CONSOLIDATED FUND-CONSOLIDATED HEALTH CARE FUND-CONSOLIDATED
(NOTE 1) (NOTE 1) FUND (NOTE 1)
----------------- ----------------- ------------ -----------------
<S> <C> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost............................ $36,715,135 $11,797,873 $495,723,880 $ 81,675,814
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
At value...................................... $41,479,762 $13,701,752 $611,877,999 $ 90,745,918
U.S. currency................................... 331 995 65 984
Foreign currencies (cost $230, $1,457, $209,944,
$5,901,$1,243,594, and $370,285,
respectively).................................. 226 1,444 209,188 5,750
Receivable for securities sold.................. -- -- 11,000,924 263,125
Receivable for Fund shares sold................. 1,254,931 59,750 4,833,948 447,311
Receivable from LGT Asset Management, Inc. (Note
2)............................................. 58,764 89,597 -- --
Receivable for open forward foreign currency
contracts, net (Note 1)........................ -- -- 957,910 50,125
Unamortized organizational costs (Note 1)....... 37,757 38,929 -- 31,772
Interest receivable............................. -- -- -- 18,612
Dividends and dividend withholding tax reclaims
receivable..................................... 26,874 41,220 324,287 267,451
Receivable for forward foreign currency
contracts -- closed (Note 1)................... -- 5,039 73,234 --
Miscellaneous receivable........................ 244 3,240 1,619 525
Cash held as collateral for securities loaned
(Note 1)....................................... 1,533,300 243,750 45,939,981 8,450,025
----------------- ----------------- ------------ -----------------
Total assets.................................. 44,392,189 14,185,716 675,219,155 100,281,598
----------------- ----------------- ------------ -----------------
Liabilities:
Payable for securities purchased................ 2,006,797 -- 14,602,704 2,442,828
Payable for investment management and
administration fees (Note 2)................... 86,382 64,338 469,317 134,900
Payable for transfer agent fees (Note 2)........ 4,233 9,832 107,526 41,337
Payable for printing and postage expenses....... 4,772 29,084 63,844 38,582
Payable for professional fees................... 29,713 28,413 24,561 35,302
Payable for Fund shares repurchased (Note 2).... 73,948 26,866 13,154,396 138,717
Payable for organization expenses (Note 1)...... 40,263 -- -- --
Payable for service and distribution expenses
(Note 2)....................................... 19,233 8,637 284,052 54,927
Payable for open forward foreign currency
contracts, net (Note 1)........................ 16,506 -- -- --
Payable for Directors' and Trustees' fees and
expenses (Note 2).............................. 5,611 4,569 3,016 7,679
Payable for custodian fees (Note 1)............. 4,012 3,037 20,668 8,836
Payable for registration and filing fees........ 2,310 2,549 11,548 2,740
Payable for fund accounting fees (Note 2)....... 680 277 11,976 1,705
Other accrued expenses.......................... 4,430 483 14,444 5,290
Collateral for securities loaned (Note 1)....... 1,533,300 243,750 45,939,981 8,450,025
----------------- ----------------- ------------ -----------------
Total liabilities............................. 3,832,190 421,835 74,708,033 11,362,868
Minority interest (Notes 1 & 2)................. 100 100 -- 100
----------------- ----------------- ------------ -----------------
Net assets........................................ $40,559,899 $13,763,781 $600,511,122 $ 88,918,630
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
<CAPTION>
NATURAL RESOURCES
FUND-CONSOLIDATED TELECOMMUNICATIONS
(NOTE 1) FUND
----------------- ------------------
<S> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost............................ $57,031,526 $2,255,155,155
----------------- ------------------
----------------- ------------------
At value...................................... $67,536,515 $2,696,783,291
U.S. currency................................... 468 419
Foreign currencies (cost $230, $1,457, $209,944,
$5,901,$1,243,594, and $370,285,
respectively).................................. 1,243,534 368,297
Receivable for securities sold.................. 1,169,084 13,335,937
Receivable for Fund shares sold................. 1,182,522 13,459,689
Receivable from LGT Asset Management, Inc. (Note
2)............................................. 38,525 --
Receivable for open forward foreign currency
contracts, net (Note 1)........................ 34,627 393,333
Unamortized organizational costs (Note 1)....... 31,718 3,223
Interest receivable............................. -- 11,378
Dividends and dividend withholding tax reclaims
receivable..................................... 27,490 4,454,525
Receivable for forward foreign currency
contracts -- closed (Note 1)................... -- --
Miscellaneous receivable........................ -- --
Cash held as collateral for securities loaned
(Note 1)....................................... 1,902,750 291,438,617
----------------- ------------------
Total assets.................................. 73,167,233 3,020,248,709
----------------- ------------------
Liabilities:
Payable for securities purchased................ 3,702,966 18,837,500
Payable for investment management and
administration fees (Note 2)................... 183,236 1,943,606
Payable for transfer agent fees (Note 2)........ 13,598 451,535
Payable for printing and postage expenses....... 35,540 236,987
Payable for professional fees................... 23,162 26,420
Payable for Fund shares repurchased (Note 2).... 2,727,390 20,762,212
Payable for organization expenses (Note 1)...... -- --
Payable for service and distribution expenses
(Note 2)....................................... 34,066 1,519,715
Payable for open forward foreign currency
contracts, net (Note 1)........................ -- --
Payable for Directors' and Trustees' fees and
expenses (Note 2).............................. 4,591 11,555
Payable for custodian fees (Note 1)............. 9,135 42,956
Payable for registration and filing fees........ 1,522 1,218
Payable for fund accounting fees (Note 2)....... 1,167 51,850
Other accrued expenses.......................... 7,814 7,338
Collateral for securities loaned (Note 1)....... 1,902,750 291,438,617
----------------- ------------------
Total liabilities............................. 8,646,937 335,331,509
Minority interest (Notes 1 & 2)................. 100 --
----------------- ------------------
Net assets........................................ $64,520,196 $2,684,917,200
----------------- ------------------
----------------- ------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F26
<PAGE>
GT GLOBAL THEME FUNDS
STATEMENT OF ASSETS
AND LIABILITIES (cont'd)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------
CONSUMER PRODUCTS FINANCIAL
AND SERVICES SERVICES INFRASTRUCTURE
FUND-CONSOLIDATED FUND-CONSOLIDATED HEALTH CARE FUND-CONSOLIDATED
Class A: (NOTE 1) (NOTE 1) FUND (NOTE 1)
----------------- ----------------- ------------ -----------------
<S> <C> <C> <C> <C>
Net assets...................................... $21,698,120 $ 5,997,041 $496,187,518 $ 35,926,720
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
Shares outstanding.............................. 1,218,759 442,423 20,980,908 2,549,960
Net asset value and redemption price per
share.......................................... $ 17.80 $ 13.55 $ 23.65 $ 14.09
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
Maximum offering price per share (100/95.25 of
Class A net asset value) *..................... $ 18.69 $ 14.23 $ 24.83 $ 14.79
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
Class B:+
Net assets...................................... $18,178,695 $ 7,725,958 $103,581,187 $ 52,715,923
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
Shares outstanding.............................. 1,028,020 574,186 4,454,362 3,777,180
Net asset value and offering price per share.... $ 17.68 $ 13.46 $ 23.25 $ 13.96
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
Advisor Class:
Net assets...................................... $ 683,084 $ 40,782 $ 742,417 $ 275,987
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
Shares outstanding.............................. 38,150 3,003 31,250 19,500
Net asset value, offering price per share, and
redemption price per share..................... $ 17.91 $ 13.58 $ 23.76 $ 14.15
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
Net assets consist of:
Paid in capital (Note 4)........................ $35,157,953 $11,760,246 $367,391,048 $ 76,005,601
Undistributed/Accumulated net investment income
(loss)......................................... (80,895) 43,201 (2,419,894) (194,277)
Accumulated net realized gain on investments and
foreign currency transactions.................. 735,493 51,267 118,421,852 3,984,565
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currencies............................. (17,279) 5,188 963,997 52,637
Net unrealized appreciation of investments...... 4,764,627 1,903,879 116,154,119 9,070,104
----------------- ----------------- ------------ -----------------
Total -- representing net assets applicable to
capital shares outstanding....................... $40,559,899 $13,763,781 $600,511,122 $ 88,918,630
----------------- ----------------- ------------ -----------------
----------------- ----------------- ------------ -----------------
<CAPTION>
NATURAL RESOURCES
FUND-CONSOLIDATED TELECOMMUNICATIONS
Class A: (NOTE 1) FUND
----------------- ------------------
<S> <C> <C>
Net assets...................................... $32,027,947 $1,465,112,206
----------------- ------------------
----------------- ------------------
Shares outstanding.............................. 2,029,850 79,238,748
Net asset value and redemption price per
share.......................................... $ 15.78 $ 18.49
----------------- ------------------
----------------- ------------------
Maximum offering price per share (100/95.25 of
Class A net asset value) *..................... $ 16.57 $ 19.41
----------------- ------------------
----------------- ------------------
Class B:+
Net assets...................................... $31,479,791 $1,216,707,238
----------------- ------------------
----------------- ------------------
Shares outstanding.............................. 2,007,422 66,917,605
Net asset value and offering price per share.... $ 15.68 $ 18.18
----------------- ------------------
----------------- ------------------
Advisor Class:
Net assets...................................... $ 1,012,458 $ 3,097,756
----------------- ------------------
----------------- ------------------
Shares outstanding.............................. 64,232 166,787
Net asset value, offering price per share, and
redemption price per share..................... $ 15.76 $ 18.57
----------------- ------------------
----------------- ------------------
Net assets consist of:
Paid in capital (Note 4)........................ $53,201,312 $2,150,013,864
Undistributed/Accumulated net investment income
(loss)......................................... (274,883) (15,615,331)
Accumulated net realized gain on investments and
foreign currency transactions.................. 1,057,211 108,471,146
Net unrealized appreciation (depreciation) on
translation of assets and liabilities in
foreign currencies............................. 31,567 419,385
Net unrealized appreciation of investments...... 10,504,989 441,628,136
----------------- ------------------
Total -- representing net assets applicable to
capital shares outstanding....................... $64,520,196 $2,684,917,200
----------------- ------------------
----------------- ------------------
<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.
F27
<PAGE>
GT GLOBAL THEME FUNDS
STATEMENT OF OPERATIONS
Six months ended April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------------------------------------
CONSUMER
PRODUCTS FINANCIAL HEALTH NATURAL
AND SERVICES SERVICES CARE INFRASTRUCTURE RESOURCES TELECOMMUNICATIONS
FUND-CONSOLIDATED FUND-CONSOLIDATED FUND FUND-CONSOLIDATED FUND-CONSOLIDATED FUND
--------------- -------------- ---------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income (net of foreign
withholding tax of $0,
$12,024, $58,508, $0, $0, and
$686,050, respectively)....... $ 83,083 $ 164,073 $1,909,914 $ 745,095 $ 133,241 $ 7,974,255
Interest income................ 62,325 66,845 856,893 112,900 60,606 614,352
Other income................... -- -- 130,236 -- -- --
--------------- -------------- ---------- -------------- -------------- ---------------
Total investment income...... 145,408 230,918 2,897,043 857,995 193,847 8,588,607
--------------- -------------- ---------- -------------- -------------- ---------------
Expenses:
Investment management and
administration fees (Note
2)............................ 86,382 64,338 2,761,832 405,082 183,237 11,535,629
Service and distribution
expenses: (Note 2)
Class A...................... 24,489 16,349 1,193,983 83,620 47,843 3,393,923
Class B...................... 39,377 33,954 448,713 246,455 91,863 5,610,861
Transfer agent fees (Note 2)... 38,436 30,758 677,404 173,992 71,342 3,201,076
Registration and filing fees... 33,646 31,916 74,398 36,732 28,736 43,104
Printing and postage
expenses...................... 18,746 21,294 64,294 34,762 28,574 163,919
Audit fees..................... 14,378 24,756 18,382 29,640 23,842 28,928
Legal fees..................... 13,468 15,288 12,922 14,195 14,196 13,104
Custodian fees (Note 1)........ 9,842 7,782 58,890 39,958 19,642 607,090
Amortization of organization
costs (Note 1)................ 5,136 6,293 -- 5,136 5,136 8,851
Directors' and Trustees' fees
and expenses (Note 2)......... 5,096 10,372 10,952 8,372 10,872 26,552
Fund accounting fees (Note
2)............................ 2,261 1,678 71,294 10,409 4,734 311,200
Other expenses................. 2,002 7,929 3,875 10,017 6,901 34,474
--------------- -------------- ---------- -------------- -------------- ---------------
Total expenses before
reductions.................. 293,259 272,707 5,396,939 1,098,370 536,918 24,978,711
--------------- -------------- ---------- -------------- -------------- ---------------
Expenses reimbursed by LGT
Asset Management, Inc.
(Note 2).................. (58,764) (95,434) -- -- (38,525) --
Expense reductions (Notes 1
& 5)...................... (8,192) (9,731) (80,002) (46,098) (29,717) (774,773)
--------------- -------------- ---------- -------------- -------------- ---------------
Total net expenses........... 226,303 167,542 5,316,937 1,052,272 468,676 24,203,938
--------------- -------------- ---------- -------------- -------------- ---------------
Net investment income (loss)..... (80,895) 63,376 (2,419,894) (194,277) (274,829) (15,615,331)
--------------- -------------- ---------- -------------- -------------- ---------------
Net realized and unrealized gain
on investments and foreign
currencies: (Note 1)
Net realized gain on
investments................... 693,550 447,852 117,185,361 4,057,245 3,585,867 101,961,525
Net realized gain on foreign
currency transactions......... 48,256 65,347 1,808,550 246,180 (8,324) 38,972,784
--------------- -------------- ---------- -------------- -------------- ---------------
Net realized gain during the
period...................... 741,806 513,199 118,993,911 4,303,425 3,577,543 140,934,309
--------------- -------------- ---------- -------------- -------------- ---------------
Net change in unrealized
appreciation (depreciation) on
translationof assets and
liabilities in foreign
currencies.................... (24,200) (8,794) 104,513 (105,743) 80,070 (25,817,683)
Net change in unrealized
appreciation of investments... 4,382,315 1,127,450 619,583 8,525,671 9,648,868 327,683,476
--------------- -------------- ---------- -------------- -------------- ---------------
Net unrealized appreciation
during the period........... 4,358,115 1,118,656 724,096 8,419,928 9,728,938 301,865,793
--------------- -------------- ---------- -------------- -------------- ---------------
Net realized and unrealized gain
on investments and foreign
currencies...................... 5,099,921 1,631,855 119,718,007 12,723,353 13,306,481 442,800,102
--------------- -------------- ---------- -------------- -------------- ---------------
Net increase in net assets
resulting from operations....... $5,019,026 $1,695,231 $117,298,113 $12,529,076 $13,031,652 $427,184,771
--------------- -------------- ---------- -------------- -------------- ---------------
--------------- -------------- ---------- -------------- -------------- ---------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F28
<PAGE>
GT GLOBAL THEME FUNDS
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------------------------------------------
CONSUMER PRODUCTS
AND SERVICES
FUND-CONSOLIDATED
-----------------------------
DECEMBER 30,
1994 FINANCIAL SERVICES HEALTH CARE
(COMMENCEMENT FUND-CONSOLIDATED FUND
OF -------------------------- ----------------------------
SIX MONTHS OPERATIONS) SIX MONTHS YEAR ENDED SIX MONTHS
ENDED TO OCTOBER ENDED OCTOBER ENDED YEAR ENDED
APRIL 30, 1996 31, APRIL 30, 1996 31, APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
-------------- ------------- -------------- ---------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ (80,895) $ 1,159 $ 63,376 $ 93,158 $ (2,419,894) $ (3,529,866)
Net realized gain (loss) on
investments and foreign currency
transactions......................... 741,806 395,974 513,199 (438,738) 118,993,911 67,043,506
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (24,200) 6,921 (8,794) 13,973 104,513 961,568
Net change in unrealized appreciation
(depreciation) of investments........ 4,382,315 382,312 1,127,450 743,739 619,583 19,234,934
-------------- ------------- -------------- ---------- -------------- ------------
Net increase (decrease) in net
assets resulting from operations... 5,019,026 786,366 1,695,231 412,132 117,298,113 83,710,142
-------------- ------------- -------------- ---------- -------------- ------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income............ -- -- (63,341) -- -- --
From net realized gain on
investments.......................... (217,050) -- (2,652) -- (54,408,285) (27,521,553)
Class B:
Distributions to shareholders: (Note 1)
From net investment income............ -- -- (42,684) -- -- --
From net realized gain on
investments.......................... (180,427) -- (2,425) -- (9,956,870) (2,846,079)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income............ -- -- (424) -- -- --
From net realized gain on
investments.......................... (5,969) -- (13) -- (69,219) --
-------------- ------------- -------------- ---------- -------------- ------------
Total distributions................. (403,446) -- (111,539) -- (64,434,374) (30,367,632)
-------------- ------------- -------------- ---------- -------------- ------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 35,348,251 7,649,630 10,278,119 10,643,479 1,175,820,530 1,635,173,338
Decrease from capital shares
repurchased.......................... (6,608,907) (1,331,021) (8,363,815) (6,199,828) (1,125,832,174) (1,668,897,114)
-------------- ------------- -------------- ---------- -------------- ------------
Net increase (decrease) from capital
share transactions................. 28,739,344 6,318,609 1,914,304 4,443,651 49,988,356 (33,723,776)
-------------- ------------- -------------- ---------- -------------- ------------
Total increase (decrease) in net
assets................................. 33,354,924 7,104,975 3,497,996 4,855,783 102,852,095 19,618,734
Net assets:
Beginning of period................... 7,204,975 100,000 10,265,785 5,410,002 497,659,027 478,040,293
-------------- ------------- -------------- ---------- -------------- ------------
End of period......................... $40,559,899* $ 7,204,975* $13,763,781* $10,265,785* $600,511,122* $497,659,027*
-------------- ------------- -------------- ---------- -------------- ------------
-------------- ------------- -------------- ---------- -------------- ------------
*
Includes undistributed/accumulated net
investment income (loss) of........... $ (80,895) $ 397,133 $ 43,201 $ 86,274 $ (2,419,894) $ 0
-------------- ------------- -------------- ---------- -------------- ------------
-------------- ------------- -------------- ---------- -------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F29
<PAGE>
GT GLOBAL THEME FUNDS
STATEMENT OF CHANGES IN NET ASSETS (cont'd)
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------------------------------
INFRASTRUCTURE NATURAL RESOURCES TELECOMMUNICATIONS
FUND-CONSOLIDATED FUND-CONSOLIDATED FUND
--------------------------- --------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, APRIL 30, 1996 OCTOBER 31, APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
-------------- ----------- -------------- ----------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ (194,277) $ (507,328) $ (274,829) $ 48,118 $(15,615,331) $(18,253,687)
Net realized gain (loss) on
investments and foreign currency
transactions......................... 4,303,425 (58,363) 3,577,543 (2,391,427) 140,934,309 112,281,604
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (105,743) 157,236 80,070 (43,764) (25,817,683) 20,055,808
Net change in unrealized appreciation
(depreciation) of investments........ 8,525,671 (565,235) 9,648,868 177,530 327,683,476 (203,028,268)
-------------- ----------- -------------- ----------- -------------- ------------
Net increase (decrease) in net
assets resulting from operations... 12,529,076 (973,690) 13,031,652 (2,209,543) 427,184,771 (88,944,543)
-------------- ----------- -------------- ----------- -------------- ------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income............ -- -- (46,639) (36,529) -- --
From net realized gain on
investments.......................... -- -- (9,576) -- (64,912,665) (78,594,102)
Class B:
Distributions to shareholders: (Note 1)
From net investment income............ -- -- -- (30,368) -- --
From net realized gain on
investments.......................... -- -- (10,066) -- (54,646,876) (58,563,435)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income............ -- -- (853) -- -- --
From net realized gain on
investments.......................... -- -- (69) -- (33,321) --
-------------- ----------- -------------- ----------- -------------- ------------
Total distributions................. -- -- (67,203) (66,897) (119,592,862) (137,157,537)
-------------- ----------- -------------- ----------- -------------- ------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 14,078,818 69,579,771 71,745,942 38,611,615 1,257,793,019 1,799,851,047
Decrease from capital shares
repurchased.......................... (24,327,746) (36,537,085) (46,861,413) (37,864,366) (1,346,390,819) (1,936,308,797)
-------------- ----------- -------------- ----------- -------------- ------------
Net increase (decrease) from capital
share transactions................. (10,248,928) 33,042,686 24,884,529 747,249 (88,597,800) (136,457,750)
-------------- ----------- -------------- ----------- -------------- ------------
Total increase (decrease) in net
assets................................. 2,280,148 32,068,996 37,848,978 (1,529,191) 218,994,109 (362,559,830)
Net assets:
Beginning of period................... 86,638,482 54,569,486 26,671,218 28,200,409 2,465,923,091 2,828,482,921
-------------- ----------- -------------- ----------- -------------- ------------
End of period......................... $ 88,918,630* $86,638,482* $ 64,520,196* $26,671,218* 2$,684,917,200* $2,465,923,091*
-------------- ----------- -------------- ----------- -------------- ------------
-------------- ----------- -------------- ----------- -------------- ------------
*
Includes undistributed/accumulated net
investment income (loss) of........... $ (194,277) $ 0 $ (274,883) $ 47,438 $(15,615,331) $ 0
-------------- ----------- -------------- ----------- -------------- ------------
-------------- ----------- -------------- ----------- -------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F30
<PAGE>
GT GLOBAL THEME FUNDS
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>
CONSUMER PRODUCTS AND SERVICES FUND
-------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------- -------------------------------- ADVISOR CLASS+
DECEMBER 30, DECEMBER 30, -----------------------------
SIX MONTHS 1994 SIX MONTHS 1994 SIX MONTHS
ENDED (COMMENCEMENT ENDED (COMMENCEMENT ENDED JUNE 1, 1995
APRIL 30, OF OPERATIONS) APRIL 30, OF OPERATIONS) APRIL 30, TO
1996 TO OCTOBER 31, 1996 TO OCTOBER 31, 1996 OCTOBER 31,
(UNAUDITED)+++ 1995+++ (UNAUDITED)+++ 1995+++ (UNAUDITED)+++ 1995+++
-------------- ---------------- -------------- ---------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating
Performance:
Net asset value,
beginning of period..... $ 14.59 $ 11.43 $ 14.53 $ 11.43 $ 14.64 $ 11.84
-------------- -------- -------------- -------- -------------- -------------
Income from investment
operations:
Net investment income
(loss)................ (0.05) * 0.02* * (0.09) * (0.04) * * (0.01) * 0.04* *
Net realized and
unrealized gain on
investments and
foreign currencies.... 3.78 3.14 3.76 3.14 3.80 2.76
-------------- -------- -------------- -------- -------------- -------------
Net increase from
investment
operations.......... 3.73 3.16 3.67 3.10 3.79 2.80
-------------- -------- -------------- -------- -------------- -------------
Distributions to
shareholders:
From net realized gain
on investments........ (0.52) 0 (0.52) -- (0.52) --
-------------- -------- -------------- -------- -------------- -------------
Total
distributions....... (0.52) -- (0.52) -- (0.52) --
-------------- -------- -------------- -------- -------------- -------------
Net asset value, end of
period.................. $ 17.80 $ 14.59 $ 17.68 $ 14.53 $ 17.91 $ 14.64
-------------- -------- -------------- -------- -------------- -------------
-------------- -------- -------------- -------- -------------- -------------
Total investment
return (c).............. 26.27 %(b) 27.65 % (b) 25.96 %(b) 27.12 % (b) 26.60 %(b) 23.65%(b)
Ratios and supplemental
data:
Net assets, end of period
(in 000's).............. $ 21,698 $ 4,082 $ 18,179 $ 2,959 $ 683 $ 164
Ratio of net investment
income (loss) to average
net assets:
With expense reductions
and reimbursement by
LGT Asset Management,
Inc. (Notes 1, 2 &
5).................... (0.69)%(a) 0.20 % (a) (1.19)%(a) (0.30)% (a) (0.19)%(a) 0.70%(a)
Without expense
reductions and
reimbursement by LGT
Asset Management,
Inc................... (1.44)%(a) (11.11)% (a) (1.94)%(a) (11.61)% (a) (0.94)%(a) (10.61)%(a)
Ratio of expenses to
average net assets:
With expense reductions
and reimbursement by
LGT Asset Management,
Inc. (Notes 1, 2 &
5).................... 2.30 %(a) 2.32 % (a) 2.80 %(a) 2.82 % (a) 1.80 %(a) 1.82%(a)
Without expense
reductions and
reimbursement by LGT
Asset Management,
Inc................... 3.05 %(a) 13.63 % (a) 3.55 %(a) 14.13 % (a) 2.55 %(a) 13.13%(a)
Portfolio turnover
rate++.................. 223 %(a) 240 % (a) 223 %(a) 240 % (a) 223 %(a) 240%(a)
Average commission rate
paid on portfolio
transactions++.......... $ 0.0335 N/A $ 0.0335 N/A $ 0.0335 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
* Before reimbursement by LGT Asset Management, Inc, net investment loss
per share would have been increased by $0.05 for each of the three
classes.
* * Before reimbursement by LGT Asset Management, Inc., net investment
income per share would have been reduced by $1.12, $1.04 and $0.61 for
Class A, Class B and Advisor Class, respectively.
+ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
+++ These selected per share operating data were calculated based upon
weighted average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F31
<PAGE>
GT GLOBAL THEME FUNDS
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>
FINANCIAL SERVICES FUND
--------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------- --------------------------------------------
SIX MONTHS MAY 31, 1994 SIX MONTHS MAY 31, 1994
ENDED (COMMENCEMENT ENDED (COMMENCEMENT
APRIL 30, YEAR ENDED OF OPERATIONS) APRIL 30, YEAR ENDED OF OPERATIONS)
1996 OCTOBER 31, TO OCTOBER 31, 1996 OCTOBER 31, TO OCTOBER 31,
(UNAUDITED)+++ 1995+++ 1994 (UNAUDITED)+++ 1995+++ 1994
-------------- ------------ ---------------- -------------- ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating
Performance:
Net asset value,
beginning of period..... $ 11.92 $ 11.62 $ 11.43 $ 11.83 $ 11.60 $ 11.43
-------------- ------------ -------- -------------- ------------ --------------
Income from investment
operations:
Net investment
income................ 0.07* 0.17* * 0.02 * * 0.04* 0.11* * 0.00* * *
Net realized and
unrealized gain on
investments and
foreign currencies.... 1.69 0.13 0.17 1.69 0.12 0.17
-------------- ------------ -------- -------------- ------------ --------------
Net increase from
investment
operations.......... 1.76 0.30 0.19 1.73 0.23 0.17
-------------- ------------ -------- -------------- ------------ --------------
Distributions to
shareholders:
From net investment
income................ (0.12) -- -- (0.09) -- --
From net realized gain
on investments........ (0.01) -- -- (0.01) -- --
-------------- ------------ -------- -------------- ------------ --------------
Total
distributions....... (0.13) -- -- (0.10) -- --
-------------- ------------ -------- -------------- ------------ --------------
Net asset value, end of
period.................. $ 13.55 $ 11.92 $ 11.62 $ 13.46 $ 11.83 $ 11.60
-------------- ------------ -------- -------------- ------------ --------------
-------------- ------------ -------- -------------- ------------ --------------
Total investment
return (c).............. 14.87 %(b) 2.58 % 1.66 % (b) 14.62 %(b) 1.98 % 1.49 %(b)
Ratios and supplemental
data:
Net assets, end of period
(in 000's).............. $ 5,997 $ 5,687 $ 3,175 $ 7,726 $ 4,548 $ 2,235
Ratio of net investment
income (loss) to average
net assets:
With expense reductions
and reimbursement by
LGT Asset Management,
Inc. (Notes 1, 2, &
5).................... 1.20 %(a) 1.46 % 0.66 % (a) 0.70 %(a) 0.96 % 0.16 %(a)
Without expense
reductions and
reimbursement by LGT
Asset Management,
Inc................... (0.37)%(a) (5.34)% (7.26)% (a) (0.87)%(a) (5.84)% (7.76)%(a)
Ratio of expenses to
average net assets:
With expense reductions
and reimbursement by
LGT Asset Management,
Inc. (Notes 1, 2, &
5).................... 2.25 %(a) 2.34 % 2.40 % (a) 2.75 %(a) 2.84 % 2.90 %(a)
Without expense
reductions and
reimbursement by LGT
Asset Management,
Inc................... 3.82 %(a) 9.14 % 10.32 % (a) 4.32 %(a) 9.64 % 10.82 %(a)
Portfolio turnover
rate++.................. 70 %(a) 170 % 53 % (a) 70 %(a) 170 % 53 %(a)
Average commission rate
paid on portfolio
transactions++.......... $ 0.0085 N/A N/A $ 0.0085 N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
* Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.09 for each of the
three classes.
* * Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.59, $0.59 and $0.30 for
Class A, Class B, and Advisor Class, respectively.
* * * Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.23 for Class A and
Class B.
+ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
+++ These selected per share operating data were calculated based upon
weighted average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F32
<PAGE>
GT GLOBAL THEME FUNDS
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>
FINANCIAL SERVICES FUND
-----------------------------
ADVISOR CLASS+
-----------------------------
SIX MONTHS
ENDED JUNE 1, 1995
APRIL 30, TO
1996 OCTOBER 31,
(UNAUDITED)+++ 1995
-------------- -------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.95 $ 11.09
-------------- -------------
Income from investment operations:
Net investment income................. 0.11* 0.09* *
Net realized and unrealized gain on
investments and foreign currencies... 1.69 0.77
-------------- -------------
Net increase from investment
operations......................... 1.80 0.86
-------------- -------------
Distributions to shareholders:
From net investment income............ (0.16) --
From net realized gain on
investments.......................... (0.01) --
-------------- -------------
Total distributions................. (0.17) --
-------------- -------------
Net asset value, end of period.......... $ 13.58 $ 11.95
-------------- -------------
-------------- -------------
Total investment return (c)............. 15.10 %(b) 7.75%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 41 $ 31
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 1, 2, & 5)... 1.70 %(a) 1.96%(a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc...................... 0.13 %(a) (4.84)%(a)
Ratio of expenses to average net assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 1, 2, & 5)... 1.75 %(a) 1.84%(a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc...................... 3.32 %(a) 8.64%(a)
Portfolio turnover rate++............... 70 %(a) 170%
Average commission rate paid on
portfolio transactions++............... $ 0.0085 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
* Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.09 for each of the
three classes.
* * Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.59, $0.59 and $0.30 for
Class A, Class B, and Advisor Class, respectively.
* * * Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.23 for Class A and
Class B.
+ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++ Portfolio turnover rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
+++ These selected per share operating data were calculated based upon
weighted average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F33
<PAGE>
GT GLOBAL THEME FUNDS
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>
HEALTH CARE FUND
-------------------------------------------------------------------------
CLASS A+
-------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1996 ----------------------------------------------------------
(UNAUDITED) (D) 1995 1994 (D) 1993 (D) 1992 1991
------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 21.84 $ 19.60 $ 17.86 $ 17.44 $ 19.29 $ 12.83
------------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss)..... (0.08) (0.15) (0.22) (0.15) (0.18) 0.03
Net realized and unrealized gain
(loss) on investments and
foreign currencies.............. 4.75 3.73 2.02 0.57 (1.53) 6.78
------------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) from
investment operations......... 4.67 3.58 1.80 0.42 (1.71) 6.81
------------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income....... -- -- -- -- -- (0.07)
From net realized gain on
investments..................... (2.86) (1.34) -- -- (0.14) (0.28)
In excess of net realized gain on
investments..................... -- -- (0.06) -- -- --
------------- ---------- ---------- ---------- ---------- ----------
Total distributions............ (2.86) (1.34) (0.06) -- (0.14) (0.35)
------------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period..... $ 23.65 $ 21.84 $ 19.60 $ 17.86 $ 17.44 $ 19.29
------------- ---------- ---------- ---------- ---------- ----------
------------- ---------- ---------- ---------- ---------- ----------
Total investment return (c)........ 23.46%(b) 19.79% 10.11% 2.40% (8.9)% 54.2%
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 496,188 $ 426,380 $ 438,940 $ 461,113 $ 655,867 $ 552,897
Ratio of net investment income
(loss) to average net assets...... (0.77)%(a) (0.72)% (1.23)% (0.90)% (0.97)% 0.19%
Ratio of expenses to average net
assets:
With expense reductions (Notes 1
& 5)............................ 1.79%(a) 1.85% 1.98% 2.00% 2.05% 2.01%
Without expense reductions....... 1.82%(a) 1.91% --%* --%* --%* --%*
Portfolio turnover rate++++........ 119%(a) 99% 64% 61% 30% 23%
Average commission rate paid on
portfolio transactions++++........ $ 0.0623 N/A N/A N/A N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does include sales charge.
(d) These selected per share operating data were calculated based upon
weighted average shares outstanding during the period.
* Calculation of "Ratios of expenses to average net assets" was made
without considering the effect of expense reduction, if any.
+ 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 rate and average commmission rate paid on portfolio
transactions are calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F34
<PAGE>
GT GLOBAL THEME FUNDS
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>
HEALTH CARE FUND
----------------------------------------------------------------------------------
CLASS B++ ADVISOR CLASS+++
---------------------------------------------------- ----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED APRIL 1, 1993 ENDED JUNE 1, 1995
APRIL 30, OCTOBER 31, TO APRIL 30, TO
1996 ---------------------- OCTOBER 31, 1996 OCTOBER 31,
(UNAUDITED) (D) 1995 (D) 1994 (D) 1993 (D) (UNAUDITED) (D) 1995
------------- ---------- ---------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 21.56 $ 19.46 $ 17.80 $ 15.59 $ 21.88 $ 18.66
------------- ---------- ---------- ------------- ------------- -------------
Income from investment operations:
Net investment income (loss)..... (0.14) (0.25) (0.32) (0.14) (0.03) (0.02)
Net realized and unrealized gain
(loss) on investments and
foreign currencies.............. 4.69 3.69 2.02 2.35 4.77 3.24
------------- ---------- ---------- ------------- ------------- -------------
Net increase (decrease) from
investment operations......... 4.55 3.44 1.70 2.21 4.74 3.22
------------- ---------- ---------- ------------- ------------- -------------
Distributions to shareholders:
From net investment income....... -- -- -- -- -- --
From net realized gain on
investments..................... (2.86) (1.34) -- -- (2.86) --
In excess of net realized gain on
investments..................... -- -- (0.04) -- -- --
------------- ---------- ---------- ------------- ------------- -------------
Total distributions............ (2.86) (1.34) (0.04) -- (2.86) --
------------- ---------- ---------- ------------- ------------- -------------
Net asset value, end of period..... $ 23.25 $ 21.56 $ 19.46 $ 17.80 $ 23.76 $ 21.88
------------- ---------- ---------- ------------- ------------- -------------
------------- ---------- ---------- ------------- ------------- -------------
Total investment return (c)........ 23.23%(b) 19.17% 9.55% 14.20%(b) 23.82%(b) 17.10%(b)
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 103,581 $ 70,740 $ 39,100 $ 8,604 $ 742 $ 539
Ratio of net investment income
(loss) to average net assets...... (1.27)%(a) (1.22)% (1.73)% (1.40)%(a) (0.27)%(a) (0.22)%(a)
Ratio of expenses to average net
assets:
With expense reductions (Notes 1
& 5)............................ 2.29%(a) 2.35% 2.48% 2.50%(a) 1.29%(a) 1.35%(a)
Without expense reductions....... 2.32%(a) 2.41% --%* --%* 1.32%(a) 1.41%(a)
Portfolio turnover rate++++........ 119%(a) 99% 64% 61% 119%(a) 99%
Average commission rate paid on
portfolio transactions++++........ $ 0.0623 N/A N/A N/A $ 0.0623 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does include sales charge.
(d) These selected per share operating data were calculated based upon
weighted average shares outstanding during the period.
* Calculation of "Ratios of expenses to average net assets" was made
without considering the effect of expense reduction, if any.
+ 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 rate and average commmission rate paid on portfolio
transactions are calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F35
<PAGE>
GT GLOBAL THEME FUNDS
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>
INFRASTRUCTURE FUND
----------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------- -----------------------------------------
MAY 31, 1994 MAY 31, 1994
(COMMENCEMENT (COMMENCEMENT
SIX MONTHS OF SIX MONTHS OF
ENDED OPERATIONS) ENDED OPERATIONS)
APRIL 30, YEAR ENDED TO OCTOBER APRIL 30, YEAR ENDED TO OCTOBER
1996 OCTOBER 31, 31, 1996 OCTOBER 31, 31,
(UNAUDITED)+++ 1995 1994 (UNAUDITED) 1995 1994
-------------- ----------- ------------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 12.11 $ 12.47 $ 11.43 $ 12.03 $ 12.45 $ 11.43
-------------- ----------- ------------- ----------- ----------- -------------
Income from investment operations:
Net investment income (loss)..... (0.01) (0.03) * 0.01* * (0.05) (0.09) * (0.01) * *
Net realized and unrealized gain
(loss) on investments and
foreign currencies.............. 1.99 (0.33) 1.03 1.98 (0.33) 1.03
-------------- ----------- ------------- ----------- ----------- -------------
Net increase (decrease) from
investment operations......... 1.98 (0.36) 1.04 1.93 (0.42) 1.02
-------------- ----------- ------------- ----------- ----------- -------------
Net asset value, end of period..... $ 14.09 $ 12.11 $ 12.47 $ 13.96 $ 12.03 $ 12.45
-------------- ----------- ------------- ----------- ----------- -------------
-------------- ----------- ------------- ----------- ----------- -------------
Total investment return (c)........ 16.35% (b) (2.89)% 9.10% (b) 16.04%(b) (3.37)% 8.92% (b)
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $35,927 $36,241 $23,615 $52,716 $50,181 $30,954
Ratio of net investment income
(loss) to average net assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 1 &
5).............................. (0.17)% (a) (0.32)% 0.41% (a) (0.67)%(a) (0.82)% (0.09)% (a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc................. (0.28)% (a) (0.58)% (0.47)% (a) (0.78)%(a) (1.08)% (0.97)% (a)
Ratio of expenses to average net
assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 1 &
5).............................. 2.24% (a) 2.36% 2.40% (a) 2.74%(a) 2.86% 2.90% (a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc................. 2.35% (a) 2.62% 3.28% (a) 2.85%(a) 3.12% 3.78% (a)
Portfolio turnover rate++.......... 39% (a) 45% 18% 39%(a) 45% 18%
Average commission rate paid on
portfolio transactions++.......... $ .0165 N/A N/A $ .0165 N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
* Before reimbursement by LGT Asset Management, Inc., the net investment
loss per share would have been increased by $0.03, $0.03, and $0.02
for Class A, Class B and Advisor Class shares, respectively.
* * Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.02 for Class A and
Class B.
+ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++ Portfolio turnover and average commission rates paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
+++ These selected per share operating data were calculated based upon
average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F36
<PAGE>
GT GLOBAL THEME FUNDS
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>
INFRASTRUCTURE FUND
------------------------------
ADVISOR CLASS+
------------------------------
SIX MONTHS JUNE 1, 1995
ENDED TO
APRIL 30, 1996 OCTOBER 31,
(UNAUDITED)+++ 1995
--------------- -------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 12.14 $ 12.00
--------------- -------------
Income from investment operations:
Net investment income (loss)..... 0.02 0.02*
Net realized and unrealized gain
(loss) on investments and
foreign currencies.............. 1.99 0.12
--------------- -------------
Net increase (decrease) from
investment operations......... 2.01 0.14
--------------- -------------
Net asset value, end of period..... $ 14.15 $ 12.14
--------------- -------------
--------------- -------------
Total investment return (c)........ 16.56% (b) 1.17%(b)
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 276 $ 216
Ratio of net investment income
(loss) to average net assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 1 &
5).............................. 0.33% (a) 0.18%(a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc................. 0.22% (a) (0.08)%(a)
Ratio of expenses to average net
assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 1 &
5).............................. 1.74% (a) 1.86%(a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc................. 1.85% (a) 2.12%(a)
Portfolio turnover rate++.......... 39% (a) 45%
Average commission rate paid on
portfolio transactions++.......... $ .0165 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not Annualized
(c) Total investment return does not include sales charges.
* Before reimbursement by LGT Asset Management, Inc., the net investment
loss per share would have been increased by $0.03, $0.03, and $0.02
for Class A, Class B and Advisor Class shares, respectively.
* * Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.02 for Class A and
Class B.
+ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++ Portfolio turnover and average commission rates paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
+++ These selected per share operating data were calculated based upon
average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F37
<PAGE>
GT GLOBAL THEME FUNDS
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>
NATURAL RESOURCES FUND
-------------------------------------------------------------------------------------------
CLASS A
--------------------------------------------
MAY 31, 1994 CLASS B
(COMMENCEMENT --------------------------------------------
SIX MONTHS OF SIX MONTHS MAY 31, 1994
ENDED OPERATIONS) ENDED (COMMENCEMENT
APRIL 30, YEAR ENDED, TO OCTOBER APRIL 30, YEAR ENDED, OF OPERATIONS)
1996 OCTOBER 31, 31, 1996 OCTOBER 31, TO OCTOBER 31,
(UNAUDITED)+++ 1995 1994 (UNAUDITED)+++ 1995 1994
-------------- ----------- ------------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 11.44 $ 12.41 $ 11.43 $ 11.36 $ 12.38 $ 11.43
------ ----------- ------ ----------- ----------- ------
Income from investment operations:
Net investment income (loss)..... (0.08) * 0.04* * 0.06 * * (0.11) * (0.02) * * 0.03* * *
Net realized and unrealized gain
(loss) on investments and
foreign currencies.............. 4.47 (0.98) 0.92 4.44 (0.98) 0.92
------ ----------- ------ ----------- ----------- ------
Net increase (decrease) from
investment operations......... 4.39 (0.94) 0.98 4.33 (1.00) 0.95
------ ----------- ------ ----------- ----------- ------
Distributions to shareholders:
From net investment income....... (0.04) (0.03) -- -- (0.02) --
From net realized gain on
investments..................... (0.01) -- -- (0.01) -- --
------ ----------- ------ ----------- ----------- ------
Total distributions............ (0.05) (0.03) -- (0.01) (0.02) --
------ ----------- ------ ----------- ----------- ------
Net asset value, end of period..... $ 15.78 $ 11.44 $ 12.41 $ 15.68 $ 11.36 $ 12.38
------ ----------- ------ ----------- ----------- ------
------ ----------- ------ ----------- ----------- ------
Total investment return (c)........ 38.48% (b) (7.58)% 8.57% (b) 38.12% (b) (8.05)% 8.31% (b)
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 32,028 $12,598 $14,797 $31,480 $13,978 $ 13,404
Ratio of net investment income
(loss) to average net assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 2 &
5).............................. (1.22)% (a) 0.41% 2.63% (a) (1.72)% (a) (0.09)% 2.13% (a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc................. (1.58)% (a) (0.69)% 0.65% (a) (2.08)% (a) (1.19)% 0.15% (a)
Ratio of expenses to average net
assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 2 &
5).............................. 2.24% (a) 2.37% 2.40% (a) 2.74% (a) 2.87% 2.90% (a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc................. 2.60% (a) 3.47% 4.38% (a) 3.10% (a) 3.97% 4.88% (a)
Portfolio turnover rate++.......... 203% (a) 87% 137% 203% (a) 87% 137%
Average commission rate paid on
portfolio transactions++.......... $ 0.0273 N/A N/A $0.0273 N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
* Before reimbursement by LGT Asset Management, Inc., the net investment
loss per share would have been increased by $0.02 for each of the
three classes.
* * Before reimbursement by LGT Asset Management, Inc., the net investment
income (loss) per share would have been affected by $0.14, $0.13, and
$0.12 for Class A, Class B, and Advisor Class, respectively.
* * * Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.04 for Class A and
Class B.
+ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++ Portfolio turnover and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued
+++ These selected per share operating data were calculated based upon
average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F38
<PAGE>
GT GLOBAL THEME FUNDS
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>
NATURAL RESOURCES FUND
-----------------------------------
ADVISOR CLASS+
-----------------------------------
SIX MONTHS
ENDED JUNE 1, 1995
APRIL 30, TO
1996 OCTOBER 31,
(UNAUDITED)+++ 1995
------------------ ---------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.47 $ 11.45
------ ------
Income from investment operations:
Net investment income (loss).......... (0.04) * 0.11* *
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 4.44 (0.09)
------ ------
Net increase (decrease) from
investment operations.............. 4.40 0.02
------ ------
Distributions to shareholders:
From net investment income............ (0.10) --
From net realized gain on
investments.......................... (0.01) --
------ ------
Total distributions................. (0.11) --
------ ------
Net asset value, end of period.......... $ 15.76 $ 11.47
------ ------
------ ------
Total investment return (c)............. 38.72 % (b) 0.17 %(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 1,012 $ 95
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 2 & 5)....... (0.72)% (a) 0.91 %(a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc...................... (1.08)% (a) (0.19)%(a)
Ratio of expenses to average net assets:
With expense reductions and
reimbursement by LGT Asset
Management, Inc. (Notes 2 & 5)....... 1.74 % (a) 1.87 %(a)
Without expense reductions and
reimbursement by LGT Asset
Management, Inc...................... 2.10 % (a) 2.97 %(a)
Portfolio turnover rate++............... 203 % (a) 87 %
Average commission rate paid on
portfolio transactions++............... $ 0.0273 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charges.
* Before reimbursement by LGT Asset Management, Inc., the net investment
loss per share would have been increased by $0.02 for each of the
three classes.
* * Before reimbursement by LGT Asset Management, Inc., the net investment
income (loss) per share would have been affected by $0.14, $0.13, and
$0.12 for Class A, Class B, and Advisor Class, respectively.
* * * Before reimbursement by LGT Asset Management, Inc., the net investment
income per share would have been reduced by $0.04 for Class A and
Class B.
+ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++ Portfolio turnover and average commission rate paid on portfolio
transactions are calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued
+++ These selected per share operating data were calculated based upon
average shares outstanding during the period.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F39
<PAGE>
GT GLOBAL THEME FUNDS
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>
TELECOMMUNICATIONS FUND
-----------------------------------------------------------------------------------
CLASS A+
-----------------------------------------------------------------------------------
SIX MONTHS JANUARY 27, 1992
ENDED (COMMENCEMENT
APRIL 30, YEAR ENDED OCTOBER 31, OF OPERATIONS)
1996 ---------------------------------------------- TO OCTOBER 31,
(UNAUDITED) 1995 1994 (D) 1993 1992
-------------- -------------- -------------- -------------- -------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.42 $ 17.80 $ 16.92 $ 11.16 $ 11.43
-------------- -------------- -------------- -------------- -------
Income from investment operations:
Net investment income (loss).......... (0.09) (0.09) (0.01) 0.08 0.14*
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 2.98 (0.43) 1.17 5.83 (0.41)
-------------- -------------- -------------- -------------- -------
Net increase (decrease) from
investment operations.............. 2.89 (0.52) 1.16 5.91 (0.27)
-------------- -------------- -------------- -------------- -------
Distributions to shareholders:
From net investment income............ -- -- (0.01) (0.15) --
From net realized gain on
investments.......................... (0.82) (0.86) (0.27) -- --
-------------- -------------- -------------- -------------- -------
Total distributions................. (0.82) (0.86) (0.28) (0.15) --
-------------- -------------- -------------- -------------- -------
Net asset value, end of period.......... $ 18.49 $ 16.42 $ 17.80 $ 16.92 $ 11.16
-------------- -------------- -------------- -------------- -------
-------------- -------------- -------------- -------------- -------
Total investment return (c)............. 18.54%(b) (2.88)% 7.02% 53.6% (2.4)% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 1,465,112 $ 1,353,722 $ 1,644,402 $ 1,223,340 $ 442,862
Ratio of net investment income (loss) to
average net assets..................... (1.03)%(a) (0.49)% (0.02)% 0.8% 2.1 % (a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.73%(a) 1.77% 1.80% 2.0% 2.3 % (a)
Without expense reductions............ 1.79%(a) 1.83% --%** --%** -- % **
Portfolio turnover rate++++............. 37%(a) 62% 57% 41% 4 % (a)
Average commission rate paid on
portfolio transactions++++............. $ 0.0021 N/A N/A N/A N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charge.
(d) These per share operating performance data were calculated based upon
the weighted average shares outstanding during the year.
* Includes reimbursements by LGT Asset Management, Inc. of Fund
operating expenses of less than $0.01. Without such reimbursement, the
annualized expense ratio would have been 2.30% and the annualized
ratio of net investment income to average net assets would have been
2.04% (See Note 2).
** Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
+ All capital shares issued and outstanding 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 rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Fund as whole without
distinguishing between the classes of shares issued.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F40
<PAGE>
GT GLOBAL THEME FUNDS
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>
TELECOMMUNICATIONS FUND
------------------------------------------------------------------------------------
CLASS B++ ADVISOR CLASS+++
------------------------------------------------------- --------------------------
SIX MONTHS SIX MONTHS
ENDED APRIL 1, 1993 ENDED JUNE 1, 1995
APRIL 30, YEAR ENDED OCTOBER 31, TO APRIL 30, TO
1996 ------------------------- OCTOBER 31, 1996 OCTOBER 31,
(UNAUDITED) 1995 1994 (D) 1993 (UNAUDITED) 1995
----------- ----------- ----------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.20 $ 17.66 $ 16.87 $ 12.68 $ 16.46 $15.24
----------- ----------- ----------- ------------- ----------- ------
Income from investment operations:
Net investment income (loss).......... (0.13) (0.17) (0.10) 0.01 (0.05) --
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 2.93 (0.43) 1.17 4.18 2.98 1.22
----------- ----------- ----------- ------------- ----------- ------
Net increase (decrease) from
investment operations.............. 2.80 (0.60) 1.07 4.19 2.93 1.22
----------- ----------- ----------- ------------- ----------- ------
Distributions to shareholders:
From net investment income............ -- -- (0.01) -- -- --
From net realized gain on
investments.......................... (0.82) (0.86) (0.27) -- (0.82) --
----------- ----------- ----------- ------------- ----------- ------
Total distributions................. (0.82) (0.86) (0.28) -- (0.82) --
----------- ----------- ----------- ------------- ----------- ------
Net asset value, end of period.......... $ 18.18 $ 16.20 $ 17.66 $ 16.87 $ 18.57 $16.46
----------- ----------- ----------- ------------- ----------- ------
----------- ----------- ----------- ------------- ----------- ------
Total investment return (c)............. 18.23%(b) (3.37)% 6.50% 33.0% (b) 18.75% (b) 7.94% (b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $1,216,707 $1,111,520 $1,184,081 $455,335 $ 3,098 $ 681
Ratio of net investment income (loss) to
average net assets..................... (1.53)%(a) (0.99)% (0.52)% 0.3% (a) (0.53)% (a) 0.01% (a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.23%(a) 2.27% 2.30% 2.5% (a) 1.23% (a) 1.27% (a)
Without expense reductions............ 2.29%(a) 2.33% --%** --% ** 1.29% (a) 1.33% (a)
Portfolio turnover rate++++............. 37%(a) 62% 57% 41% 37% (a) 62%
Average commission rate paid on
portfolio transactions++++............. $ 0.0021 N/A N/A N/A $0.0021 N/A
</TABLE>
- ----------------
(a) Annualized
(b) Not annualized
(c) Total investment return does not include sales charge.
(d) These per share operating performance data were calculated based upon
the weighted average shares outstanding during the year.
* Includes reimbursements by LGT Asset Management, Inc. of Fund
operating expenses of less than $0.01. Without such reimbursement, the
annualized expense ratio would have been 2.30% and the annualized
ratio of net investment income to average net assets would have been
2.04% (See Note 2).
** Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
+ All capital shares issued and outstanding 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 rate and average commission rate paid on portfolio
transactions are calculated on the basis of the Fund as whole without
distinguishing between the classes of shares issued.
N/A Not applicable
The accompanying notes are an integral part of the financial statements.
F41
<PAGE>
GT GLOBAL THEME FUNDS
NOTES TO
FINANCIAL STATEMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Consumer Products and Services Fund, GT Global Financial Services
Fund, GT Global Health Care Fund, GT Global Infrastructure Fund, GT Global
Natural Resources Fund, and GT Global Telecommunications Fund ("Funds") are
separate series of G.T. Investment Funds, Inc. ("Company"). Collectively, these
Funds are known as the "GT Global Theme Funds." The Company is organized as a
Maryland corporation and is registered under the Investment Company Act of 1940,
as amended ("1940 Act"), as an open-end management investment company. The
Company has twelve series of shares in operation, each series corresponding to a
distinct portfolio of investments.
The GT Global Consumer Products and Services Fund, GT Global Financial Services
Fund, GT Global Infrastructure Fund, and GT Global Natural Resources Fund each
invests substantially all of its investable assets in Global Consumer Products
and Services Portfolio, Global Financial Services Portfolio, Global
Infrastructure Portfolio, and Global Natural Resources Portfolio ("Portfolios"),
respectively. Each of these Portfolios is organized as a New York Trust and is
registered under the 1940 Act as a diversified, open-end management investment
company.
The Portfolios have investment objectives, policies, and limitations
substantially identical to those of their corresponding Funds. Therefore, the
financial statements of the aforementioned Funds and their respective Portfolios
have been presented on a consolidated basis, and represent all activities of
both the respective Funds and Portfolios. Through April 30, 1996, all of the
shares of beneficial interest of each Portfolio were owned by either its
respective fund or LGT Asset Management, Inc. ("LGT"), which has a nominal
($100) investment in each Portfolio.
The Funds offer 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 each 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 Funds and Portfolios 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 Funds calculate the net asset value of and complete 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 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 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 or the Portfolio's Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Directors or
the Portfolio's Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of each Fund and Portfolio are maintained in U.S.
dollars. The market values of foreign securities, currency holdings, and other
assets and liabilities are recorded in the books and records of the Funds or
Portfolios (the phrase "Fund or Portfolio" hereinafter includes the GT Global
Health Care Fund, the GT Global Telecommunications Fund, and each of the four
Portfolios) 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.
A Fund or Portfolio does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss from
investments.
F42
<PAGE>
GT GLOBAL THEME FUNDS
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 a
Fund's or Portfolio's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains or losses arise
from changes in the value of assets and liabilities other than investments in
securities at period end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by a Fund or Portfolio, it is
the Fund's or Portfolio's policy to always receive, as collateral, United States
government securities or other high quality debt securities of which the value,
including accrued interest, is at least equal to the amount to be repaid to the
Fund or Portfolio under each agreement at its maturity.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy 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 a Fund or Portfolio as an unrealized gain or loss.
When the Forward Contract is closed, the Fund or Portfolio records a realized
gain or loss equal to the difference between the value at the time it was opened
and the value at the time it was closed. Forward Contracts involve market risk
in excess of the amount shown in the Fund's or Portfolio's "Statement of Assets
and Liabilities". A Fund or Portfolio could be exposed to risk if a counterparty
is unable to meet the terms of the contract or if the value of the currency
changes unfavorably. A Fund or Portfolio may enter into Forward Contracts in
connection with planned purchases or sales of securities, or to hedge against
adverse fluctuations in exchange rates between currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When a Fund or Portfolio writes a call or put option, an amount equal to the
premium received is included in the Fund's or Portfolio's "Statement of Assets
and Liabilities" as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market value
of the option. The current market value of an option listed on a traded exchange
is valued at its last bid price, or, in the case of an over-the-counter option,
is valued at the average of the last bid prices obtained from brokers, 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 or Portfolio enters into a closing purchase transaction, a gain or loss
is realized without regard to any unrealized gain or loss on the underlying
security and the liability related to such option is extinguished. If a written
call option is exercised, a gain or loss is realized from the sale of the
underlying security and the proceeds of the sale are increased by the premium
originally received. If a written put option is exercised, the cost of the
underlying security purchased would be decreased by the premium originally
received. The Fund or Portfolio can write options only on a covered basis,
which, for a call, requires that the Fund or Portfolio hold the underlying
security and, for a put, requires the Fund or Portfolio to set aside cash, U.S.
government securities or other liquid, high grade debt securities in an amount
not less than the exercise price or otherwise provide adequate cover at all
times while the put option is outstanding. The Fund or Portfolio may use options
to manage its exposure to the stock market and to fluctuations in currency
values or interest rates.
The premium paid by the Fund or Portfolio for the purchase of a call or put
option is included in the Fund's or Portfolio's "Statement of Assets and
Liabilities" as an investment and subsequently "marked-to-market" to reflect the
current market value of the option. If an option which the Fund or Portfolio has
purchased expires on the stipulated expiration date, the Fund or Portfolio
realizes a loss in the amount of the cost of the option. If the Fund or
Portfolio enters into a closing sale transaction, the Fund or Portfolio realizes
a gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund or Portfolio
exercises a call option, the cost of the securities acquired by exercising the
call is increased by the premium paid to buy the call. If the Fund or Portfolio
exercises a put option, it realizes a gain or loss from the sale of the
underlying security, and the proceeds from such sale are decreased by the
premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund or Portfolio may forego
the opportunity of profit if the market value of the underlying security or
index increases and the option is exercised. The risk in writing a put option is
that the Fund or Portfolio may incur a loss if the market value of the
underlying security or index decreases and the option is exercised. In addition,
there is the risk the Fund or Portfolio may not be able to enter into a closing
transaction because of an illiquid secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract a
Fund or Portfolio is required to pledge to the broker an amount of cash or
securities equal to the minimum "initial margin" requirements of the exchange of
which the contract is traded. Pursuant to the contract, the Fund or Portfolio
agrees to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known as
"variation margin" and are recorded by the Fund or Portfolio as unrealized gains
or losses. When the contract is closed, the Fund or Portfolio records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. The potential risk
to the Fund or Portfolio is that the change in value of the underlying
securities may not correlate to the change in value of the contracts. A Fund or
Portfolio may use futures contracts to manage its exposure to the stock market
and to fluctuations in currency values or interest rates.
F43
<PAGE>
GT GLOBAL THEME FUNDS
(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 its collection, income is recorded net of all
withholding tax with any rebate recorded when received. A Fund or Portfolio may
trade securities on other than normal settlement terms. This may increase the
risk if the other party to the transaction fails to deliver and causes the Fund
or Portfolio to subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At April 30, 1996, stocks with an aggregate value listed below were on loan to
brokers. The loans were secured by cash collateral received by the Funds or
Portfolios:
<TABLE>
<CAPTION>
APRIL 30, 1996
--------------------------------------
AGGREGATE VALUE ON
LOAN CASH COLLATERAL
------------------- -----------------
<S> <C> <C>
Global Consumer Products and Services Portfolio................................. $ 1,496,421 $ 1,533,300
Global Financial Services Portfolio............................................. 242,799 243,750
GT Global Health Care Fund...................................................... 43,545,634 45,939,981
Global Infrastructure Portfolio................................................. 8,002,077 8,450,025
Global Natural Resources Portfolio.............................................. 1,860,013 1,902,750
GT Global Telecommunications Fund............................................... 282,529,832 291,483,617
<CAPTION>
PERIOD ENDED
APRIL 30, 1996
----------------
FEES RECEIVED
----------------
<S> <C>
Global Consumer Products and Services Portfolio................................. $ 3,263
Global Financial Services Portfolio............................................. 1,303
GT Global Health Care Fund...................................................... 52,108
Global Infrastructure Portfolio................................................. 37,656
Global Natural Resources Portfolio.............................................. --
GT Global Telecommunications Fund............................................... 536,247
</TABLE>
For international securities, cash collateral is received by a Fund or Portfolio
against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For domestic securities, cash
collateral is received by a Fund or Portfolio against loaned securities in an
amount at least equal to 102% of the market value of the loaned securities at
the inception of each loan. This collateral must be maintained at not less than
100% of the market value of the loaned securities during the period of the loan.
Fees received from securities loaned were used to reduce the Funds' or
Portfolios' custodian fees.
(I) TAXES
It is the policy of the Funds and Portfolios 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 Funds 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.
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRES IN
GT GLOBAL CARRYFORWARD YEAR
- -------------------------------------------------------------------------------- --------------- -------------
<S> <C> <C>
Financial Services Fund $ 22,442 2002
415,382 2003
Natural Resources Fund 91,443 2002
2,455,921 2003
</TABLE>
(J) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by each 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 Funds or Portfolios and timing
differences.
(K) DEFERRED ORGANIZATIONAL EXPENSES
Expenses incurred by the GT Global Consumer Products and Services Fund, GT
Global Financial Services Fund, GT Global Infrastructure Fund, GT Global Natural
Resources Fund, and GT Global Telecommunications Fund in connection with their
organizations, their initial registration with the Securities and Exchange
Commission and with various states and the initial public offering of its shares
aggregated $51,500, $63,100, $51,500, $51,500 and $88,750, respectively. These
expenses are being amortized on a straightline basis over a five-year period.
(L) 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 or Portfolio's investments in
emerging market countries may involve greater risks than investments in more
developed markets and the price of such investments may be volatile. These risks
of investing in foreign and emerging markets may include foreign currency
exchange rate fluctuations, perceived credit risk, adverse political and
economic developments and possible adverse foreign government intervention.
In addition, each Fund or Portfolio may focus its investments in certain related
consumer products and services, financial services, health care, infrastructure,
natural resources, or telecommunications industries, subjecting the Fund or
Portfolio to greater risk than a fund that is more diversified.
(M) INDEXED SECURITIES
A Fund or Portfolio may invest in indexed securities whose value is linked
either directly or indirectly to changes in foreign currencies, interest rates,
equities, indices, or other reference instruments. Indexed securities may be
more volatile than the reference instrument itself, but any loss is limited to
the amount of the original investment.
F44
<PAGE>
GT GLOBAL THEME FUNDS
(N) RESTRICTED SECURITIES
A Fund or Portfolio is permitted to invest in privately placed restricted
securities. These securities may be resold in transactions exempt from
registration or to the public if the securities are registered. Disposal of
these securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) are shown at the end of the Fund's
or Portfolio's Portfolio of Investments.
2. RELATED PARTIES
LGT is the Funds' and Portfolios' investment manager and administrator. GT
Global Consumer Products and Services Fund, GT Global Financial Services Fund,
GT Global Infrastructure Fund, and GT Global Natural Resources Fund each pays
LGT administration fees at the annualized rate of 0.25% of such Fund's average
daily net assets. Each of the Portfolios pays investment management and
administration fees to LGT at the annualized rate of 0.725% on the first $500
million of the average daily net assets of the Portfolio; 0.70% on the next $500
million; 0.675% on the next $500 million; and 0.65% on amounts thereafter. GT
Global Health Care Fund and GT Global Telecommunications Fund each 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 a 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 Funds'
distributor. The Funds offer 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 Funds' 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 the
following sales charges: $21,469 for the GT Global Consumer Products and
Services Fund, $2,236 for the GT Global Financial Services Fund, $60,110 for the
GT Global Health Care Fund, $9,428 for the GT Global Infrastructure Fund, $8,525
for the GT Global Natural Resources Fund, and $119,085 for the GT Global
Telecommunications Fund. Purchases of Class A shares exceeding $500,000 may be
subject to a contingent deferred sales charge ("CDSC") upon redemption, in
accordance with the Funds' current prospectus. GT Global collected CDSCs for the
period ended April 30, 1996, as follows: $0 for the GT Global Consumer Products
and Services Fund, $1,470 for the GT Global Financial Services Fund, $962 for
the GT Global Health Care Fund, $3,400 for the GT Global Infrastructure Fund,
$3,037 for the GT Global Natural Resources Fund, and $10,757 for the GT Global
Telecommunications Fund. 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 Funds' current
prospectus. For the period ended April 30, 1996, GT Global collected CDSCs in
the amount of: $4,840 for the GT Global Consumer Products and Services Fund,
$11,903 for the GT Global Financial Services Fund, $151,024 for the GT Global
Health Care Fund, $136,915 for the GT Global Infrastructure Fund, $38,589 for
the GT Global Natural Resources Fund, and $3,097,219 for the GT Global
Telecommunications Fund. 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 Funds' Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which a Fund
reimburses GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, a 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, a 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 each Fund's expenses
(exclusive of brokerage commissions, taxes, interest, and extraordinary expense)
to the maximum annual rate of 2.40%, 2.90%, and 1.90% 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.
F45
<PAGE>
GT GLOBAL THEME FUNDS
GT Global Investor Services, Inc. ("GT Services"), an affiliate of LGT and GT
Global, is the transfer agent of the Funds.
LGT is the pricing and accounting agent for the Funds. The monthly fee for these
services to LGT is a percentage, not to exceed 0.03% annually, of a Fund or
Portfolio'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 each 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. Each
Portfolio pays each of its Trustees who is not an employee, officer or director
of LGT, GT Global or GT Services $500 per year plus $150 for each meeting of the
board or any committee thereof attended by the Trustees.
At April 30, 1996, all of the shares of beneficial interest of each Portfolio
were owned either by its Fund or LGT.
3. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities, other
than short-term investments, by each Fund or Portfolio for the period ended
April 30, 1996:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------------------------
U.S. GOVERNMENT OTHER ISSUES
--------------- ------------
<S> <C> <C>
Global Consumer Products and Services Portfolio................................. $ -- $ 45,489,182
Global Financial Services Portfolio............................................. -- 6,802,909
GT Global Health Care Fund...................................................... -- 321,165,520
Global Infrastructure Portfolio................................................. -- 15,842,826
Global Natural Resources Portfolio.............................................. -- 66,628,333
GT Global Telecommunications Fund............................................... -- 457,125,671
</TABLE>
<TABLE>
<CAPTION>
SALES
------------------------------
U.S. GOVERNMENT OTHER ISSUES
--------------- ------------
<S> <C> <C>
Global Consumer Products and Services Portfolio................................. $ -- $ 18,827,528
Global Financial Services Portfolio............................................. -- 4,230,570
GT Global Health Care Fund...................................................... -- 350,709,973
Global Infrastructure Portfolio................................................. -- 24,411,633
Global Natural Resources Portfolio.............................................. -- 38,723,017
GT Global Telecommunications Fund............................................... -- 616,487,214
</TABLE>
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, 400,000,000 were classified as
shares of the GT Global Telecommunications 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 Latin America Growth Fund; 200,000,000 were classified as shares of GT
Global Emerging Markets Fund; 200,000,000 were classified as shares of GT Global
High Income 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; 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 Funds were as
follows:
F46
<PAGE>
GT GLOBAL THEME FUNDS
CAPITAL SHARE TRANSACTIONS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
<TABLE>
<CAPTION>
DECEMBER 30, 1994
SIX MONTHS ENDED (COMMENCEMENT
APRIL 30, 1996 OF OPERATIONS)
(UNAUDITED) TO OCTOBER 31, 1995
------------------------------ -----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------- ------------ --------------- ------------ --------------
<S> <C> <C> <C> <C>
Shares sold....................................... 1,215,007 $ 19,611,962 330,327 $ 4,257,766
Shares issued in connection with reinvestment of
distributions................................... 13,661 202,264 -- --
------------ --------------- ------------ --------------
1,228,668 19,814,226 330,327 4,257,766
Shares repurchased................................ (289,630) (4,708,665) (54,980) (746,671)
------------ --------------- ------------ --------------
Net increase...................................... 939,038 $ 15,105,561 275,347 $ 3,511,095
------------ --------------- ------------ --------------
------------ --------------- ------------ --------------
<CAPTION>
DECEMBER 30, 1994
SIX MONTHS ENDED (COMMENCEMENT
APRIL 30, 1996 OF OPERATIONS)
(UNAUDITED) TO OCTOBER 31, 1995
------------------------------ -----------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------- ------------ --------------- ------------ --------------
<S> <C> <C> <C> <C>
Shares sold....................................... 932,161 $ 14,885,812 246,365 $ 3,239,565
Shares issued in connection with reinvestment of
distributions................................... 10,960 161,118 -- --
------------ --------------- ------------ --------------
943,121 15,046,930 246,365 3,239,565
Shares repurchased................................ (118,735) (1,856,883) (47,105) (579,906)
------------ --------------- ------------ --------------
Net increase...................................... 824,386 $ 13,190,047 199,260 $ 2,659,659
------------ --------------- ------------ --------------
------------ --------------- ------------ --------------
<CAPTION>
JUNE 1, 1995
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1996 SALE OF SHARES)
(UNAUDITED) TO OCTOBER 31, 1995
------------------------------ -----------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------- ------------ --------------- ------------ --------------
<S> <C> <C> <C> <C>
Shares sold....................................... 29,324 $ 481,126 11,525 $ 152,299
Shares issued in connection with reinvestment of
distributions................................... 402 5,969 -- --
------------ --------------- ------------ --------------
29,726 487,095 11,525 152,299
Shares repurchased................................ (2,770) (43,359) (331) (4,444)
------------ --------------- ------------ --------------
Net increase...................................... 26,956 $ 443,736 11,194 $ 147,855
------------ --------------- ------------ --------------
------------ --------------- ------------ --------------
</TABLE>
F47
<PAGE>
GT GLOBAL THEME FUNDS
GT GLOBAL FINANCIAL SERVICES FUND
<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....................................... 436,302 $ 5,633,330 669,827 $ 7,432,400
Shares issued in connection with reinvestment of
distributions................................... 4,005 50,562 -- --
-------- ----------- -------- -----------
440,307 5,683,892 669,827 7,432,400
Shares repurchased................................ (474,913) (6,140,721) (465,993) (5,162,753)
-------- ----------- -------- -----------
Net increase (decrease)........................... (34,606) $ (456,829) 203,834 $ 2,269,647
-------- ----------- -------- -----------
-------- ----------- -------- -----------
<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....................................... 362,406 $ 4,543,053 286,019 $ 3,181,342
Shares issued in connection with reinvestment of
distributions................................... 2,898 36,456 -- --
-------- ----------- -------- -----------
365,304 4,579,509 286,019 3,181,342
Shares repurchased................................ (175,471) (2,213,713) (94,377) (1,037,075)
-------- ----------- -------- -----------
Net increase...................................... 189,833 $ 2,365,796 191,642 $ 2,144,267
-------- ----------- -------- -----------
-------- ----------- -------- -----------
<CAPTION>
JUNE 1, 1995
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1996 SALE OF SHARES)
(UNAUDITED) TO OCTOBER 31, 1995
--------------------- -------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold....................................... 1,087 $ 14,281 2,599 $ 29,737
Shares issued in connection with reinvestment of
distributions................................... 35 437 -- --
-------- ----------- -------- -----------
1,122 14,718 2,599 29,737
Shares repurchased................................ (718) (9,381) -- --
-------- ----------- -------- -----------
Net increase...................................... 404 $ 5,337 2,599 $ 29,737
-------- ----------- -------- -----------
-------- ----------- -------- -----------
</TABLE>
F48
<PAGE>
GT GLOBAL THEME FUNDS
GT GLOBAL HEALTH CARE FUND
<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....................................... 46,475,016 $1,039,764,595 78,194,828 $ 1,518,869,435
Shares issued in connection with reinvestment of
distributions................................... 2,009,484 41,475,735 1,197,686 21,103,166
----------- ------------- ----------- ---------------
48,484,500 1,081,240,330 79,392,514 1,539,972,601
Shares repurchased................................ (47,030,613) (1,056,338,085) (82,265,383) (1,598,688,749)
----------- ------------- ----------- ---------------
Net increase (decrease)........................... 1,453,887 $ 24,902,245 (2,872,869) $ (58,716,148)
----------- ------------- ----------- ---------------
----------- ------------- ----------- ---------------
<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....................................... 3,440,526 $ 75,680,388 4,710,190 $ 92,123,273
Shares issued in connection with reinvestment of
distributions................................... 411,415 8,364,081 140,259 2,451,761
----------- ------------- ----------- ---------------
3,851,941 84,044,469 4,850,449 94,575,034
Shares repurchased................................ (2,678,245) (59,094,767) (3,578,957) (70,045,915)
----------- ------------- ----------- ---------------
Net increase...................................... 1,173,696 $ 24,949,702 1,271,492 $ 24,529,119
----------- ------------- ----------- ---------------
----------- ------------- ----------- ---------------
<CAPTION>
JUNE 1, 1995
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1996 SALE OF SHARES)
(UNAUDITED) TO OCTOBER 31, 1995
--------------------------- -----------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------- ----------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
Shares sold....................................... 452,593 $ 10,468,001 32,235 $ 625,703
Shares issued in connection with reinvestment of
distributions................................... 3,282 67,730 -- --
----------- ------------- ----------- ---------------
455,875 10,535,731 32,235 625,703
Shares repurchased................................ (449,283) (10,399,322) (7,577) (162,450)
----------- ------------- ----------- ---------------
Net increase...................................... 6,592 $ 136,409 24,658 $ 463,253
----------- ------------- ----------- ---------------
----------- ------------- ----------- ---------------
</TABLE>
F49
<PAGE>
GT GLOBAL THEME FUNDS
GT GLOBAL INFRASTRUCTURE FUND
<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....................................... 775,266 $ 10,067,391 2,997,022 $ 35,715,669
Shares repurchased................................ (1,217,040) (15,447,550) (1,898,557) (23,075,894)
------------- ---------------- ------------- ----------------
Net increase (decrease)........................... (441,774) $ (5,380,159) 1,098,465 $ 12,639,775
------------- ---------------- ------------- ----------------
------------- ---------------- ------------- ----------------
<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....................................... 309,048 $ 3,948,204 2,815,712 $ 33,606,616
Shares repurchased................................ (703,303) (8,838,938) (1,130,463) (13,421,180)
------------- ---------------- ------------- ----------------
Net increase (decrease)........................... (394,255) $ (4,890,734) 1,685,249 $ 20,185,436
------------- ---------------- ------------- ----------------
------------- ---------------- ------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
JUNE 1, 1995
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1996 SALE OF SHARES)
(UNAUDITED) TO OCTOBER 31, 1995
------------------------------- -------------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------- ------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C>
Shares sold....................................... 4,899 $ 63,223 21,018 $ 257,486
Shares repurchased................................ (3,218) (41,258) (3,199) (40,011)
------------- ---------------- ------------- ----------------
Net increase...................................... 1,681 $ 21,965 17,819 $ 217,475
------------- ---------------- ------------- ----------------
------------- ---------------- ------------- ----------------
</TABLE>
F50
<PAGE>
GT GLOBAL THEME FUNDS
GT GLOBAL NATURAL RESOURCES FUND
<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....................................... 3,684,917 $ 51,268,229 2,262,790 $ 25,998,648
Shares issued in connection with reinvestment of
distributions................................... 3,978 47,900 2,665 30,350
------------- ---------------- ------------- ---------------
3,688,895 51,316,129 2,265,455 26,028,998
Shares repurchased................................ (2,760,151) (38,535,632) (2,356,872) (27,189,124)
------------- ---------------- ------------- ---------------
Net increase (decrease)........................... 928,744 $ 12,780,497 (91,417) $ (1,160,126)
------------- ---------------- ------------- ---------------
------------- ---------------- ------------- ---------------
<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....................................... 1,392,430 $ 19,520,774 1,073,588 $ 12,447,266
Shares issued in connection with reinvestment of
distributions................................... 709 8,495 2,190 24,898
------------- ---------------- ------------- ---------------
1,393,139 19,529,269 1,075,778 12,472,164
Shares repurchased................................ (615,820) (8,254,328) (928,373) (10,660,475)
------------- ---------------- ------------- ---------------
Net increase...................................... 777,319 $ 11,274,941 147,405 $ 1,811,689
------------- ---------------- ------------- ---------------
------------- ---------------- ------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
JUNE 1, 1995
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1996 SALE OF SHARES)
(UNAUDITED) TO OCTOBER 31, 1995
------------------------------- ------------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------- ------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C>
Shares sold....................................... 61,180 $ 899,623 9,525 $ 110,453
Shares issued in connection with reinvestment of
distributions................................... 75 921 -- --
------------- ---------------- ------------- ---------------
61,255 900,544 9,525 110,453
Shares repurchased................................ (5,290) (71,453) (1,258) (14,767)
------------- ---------------- ------------- ---------------
Net increase...................................... 55,965 $ 829,091 8,267 $ 95,686
------------- ---------------- ------------- ---------------
------------- ---------------- ------------- ---------------
</TABLE>
F51
<PAGE>
GT GLOBAL THEME FUNDS
GT GLOBAL TELECOMMUNICATIONS FUND
<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....................................... 63,353,550 $ 1,070,122,633 83,031,164 $ 1,357,464,500
Shares issued in connection with reinvestment of
distributions................................... 3,376,315 52,885,100 3,938,085 63,284,987
----------- --------------- ----------- ---------------
66,729,865 1,123,007,733 86,969,249 1,420,749,487
Shares repurchased................................ (69,948,725) (1,182,742,920) (96,901,218) (1,584,327,366)
----------- --------------- ----------- ---------------
Net decrease...................................... (3,218,860) $ (59,735,187) (9,931,969) $ (163,577,879)
----------- --------------- ----------- ---------------
----------- --------------- ----------- ---------------
<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....................................... 5,102,559 $ 84,480,297 20,348,248 $ 330,809,778
Shares issued in connection with reinvestment of
distributions................................... 2,882,738 44,452,442 2,988,078 47,599,706
----------- --------------- ----------- ---------------
7,985,297 128,932,739 23,336,326 378,409,484
Shares repurchased................................ (9,689,312) (160,078,066) (21,776,751) (351,935,028)
----------- --------------- ----------- ---------------
Net increase (decrease)........................... (1,704,015) $ (31,145,327) 1,559,575 $ 26,474,456
----------- --------------- ----------- ---------------
----------- --------------- ----------- ---------------
<CAPTION>
JUNE 1, 1995
SIX MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1996 SALE OF SHARES)
(UNAUDITED) TO OCTOBER 31, 1995
---------------------------- ----------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------- ----------- --------------- ----------- ---------------
<S> <C> <C> <C> <C>
Shares sold....................................... 332,052 $ 5,819,226 44,033 $ 692,076
Shares issued in connection with reinvestment of
distributions................................... 2,122 33,321 -- --
----------- --------------- ----------- ---------------
334,174 5,852,547 44,033 692,076
Shares repurchased................................ (208,758) (3,569,833) (2,662) (46,403)
----------- --------------- ----------- ---------------
Net increase...................................... 125,416 $ 2,282,714 41,371 $ 645,673
----------- --------------- ----------- ---------------
----------- --------------- ----------- ---------------
</TABLE>
F52
<PAGE>
GT GLOBAL THEME FUNDS
5. EXPENSE REDUCTIONS
LGT has directed certain portfolio trades to brokers who paid a portion of a
Fund's or Portfolio's expenses. For the period ended April 30, 1996, the Funds'
or Portfolios' expenses were reduced by the following amounts under these
arrangements:
<TABLE>
<CAPTION>
EXPENSE REDUCTION
---------------------
<S> <C>
Global Consumer Products and Services Portfolio................................. $ 4,929
Global Financial Services Portfolio............................................. 8,428
GT Global Health Care Fund...................................................... 27,894
Global Infrastructure Portfolio................................................. 8,442
Global Natural Resources Portfolio.............................................. 29,717
GT Global Telecommunications Fund............................................... 238,526
</TABLE>
6. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES
Investments of 5% or more of an issuer's outstanding voting securities by a Fund
or Portfolio are defined in the Investment Company Act of 1940 as an affiliated
company. Investments in affiliated companies by GT Global Health Care Fund and
GT Global Telecommunications Fund at April 30, 1996 amounted to $16,444,575 and
$234,950,556, respectively, at value.
Transactions with affiliated companies are as follows:
GT GLOBAL HEALTH CARE FUND:
<TABLE>
<CAPTION>
NET REALIZED
PURCHASES COST SALES COST GAIN (LOSS) DIVIDEND INCOME
--------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
AVECOR Cardiovascular, Inc........................ $ 6,330,675 $ -- $ -- $ --
Cardiometrics, Inc................................ 2,706,928 -- -- --
Ethical Holdings PLC -- ADR....................... -- 52,500 15,000 --
</TABLE>
GT GLOBAL TELECOMMUNICATIONS FUND:
<TABLE>
<CAPTION>
NET REALIZED
PURCHASES COST SALES COST GAIN (LOSS) DIVIDEND INCOME
--------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
ANTEC Corp........................................ $ 1,439,140 $ -- $ -- $ --
Atlantic Tele-Network, Inc........................ -- -- -- --
DSP Communications, Inc........................... 8,594,164 -- -- --
Grupo Mexicano de Video - 144A ADR................ -- -- -- --
Intermedia Communications of Florida, Inc......... -- -- -- --
International Engineering PLC -- Foreign.......... -- -- -- 363,579
PT Kabelindo Murni -- Foreign..................... -- -- -- --
Orbital Sciences Corp............................. 988,000 -- -- --
Spectrian Corp.................................... 774,360 65,000 (10,649) --
Stratacom, Inc.................................... 19,659,920 -- -- --
Tekelec........................................... 11,466,485 -- -- --
Tele 2000 S.A..................................... -- -- -- --
Three Five Systems, Inc........................... -- -- -- --
</TABLE>
F53
<PAGE>
GT GLOBAL THEME FUNDS
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL THEME FUNDS
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>
GT GLOBAL
A Member of Liechtenstein Global Trust
Fifty California Street
27th Floor
San Francisco, CA
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
