G T INVESTMENT FUNDS INC, N-30D, 1996-01-08

G T INVESTMENT FUNDS INC
N-30D, 1996-01-08

Previous: G T INVESTMENT FUNDS INC, N-30D, 1996-01-08

Next: G T INVESTMENT FUNDS INC, N-30D, 1996-01-08

<PAGE>
INVESTING IN
A BROAD
RANGE OF
INDUSTRIES
WORLDWIDE
GT GLOBAL
INFRASTRUCTURE
FUND

ANNUAL REPORT
OCTOBER 31, 1995

[LOGO]
<PAGE>
TABLE
OF CONTENTS

<TABLE>
<S> <C>
Report from the Fund
Managers and Key
Portfolio Holdings..... 1

Report of Independent
Accountants............ F-1

Financial Statements... F-2
</TABLE>

REPORT FROM THE FUND MANAGERS

The G.T. Global Infrastructure Fund seeks long-term growth of capital by
investing in equity securities of companies in established and emerging
economies throughout the world that design, develop or provide products and
services necessary for creating and maintaining a country's infrastructure.
PERFORMANCE REVIEW
The Fund's total return for the 12 months ended October 31, 1995, for Class A
shares was -2.89% (-7.5% including the effect of the maximum 4.75% sales
charge). Total return for Class B shares during this same period was -3.37%
(-8.2% including the effect of the maximum 5% contingent deferred sales charge).
In comparison, the Morgan Stanley Capital International (MSCI) World Index(1),
which is composed almost entirely of developed countries' markets, posted a
return of 10.03% for this same investment period. The index is not available for
investment and does not include the effects of sales charges and professional
management fees. In addition, the index is designed to represent the perfor-
mance of all world markets and does not reflect the Fund's concentration in the
infrastructure industries. For more performance information, please see page 8.
The Fund underperformed the index for several reasons. Over the period, the Fund
maintained a weighting of 30% to 45% in emerging market stocks (compared to less
than a 5% weighting for the index), which fell substantially in value after the
December 1994 Mexican peso devaluation. In addition, because we expected the
dollar to recover in early 1995, we employed foreign currency hedges, as
provided for in the prospectus. However, the dollar did not recover as
anticipated and the Fund suffered accordingly when the dollar weakened.
MARKET REVIEW
The past 12 months were marked by an extremely buoyant U.S. market (27.79%),
very respectable European results (13.68% in U.S. dollars), a weak Japanese
market (-6.82%), and poor returns from emerging markets equities (-18.99%, as
represented by the MSCI Emerging Markets Global Index(2)).

- --------------
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,577 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 Emerging Markets Index is an arithmetic average, weighted by market
value, of the performance of securities listed on 23 major stock exchanges
(Argentina, Brazil, Chile, Colombia, Hong Kong, India, Indonesia, Ireland,
Jordan, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland,
Portugal, South Africa, Sri Lanka, Taiwan, Thailand, Turkey, Venezuela). It
includes the effect of reinvested dividends and is measured in U.S. dollars.

1
<PAGE>
Several factors worked in favor of U.S. stock investors over the past year: a
weak U.S. dollar, moderate economic growth, relatively stable-to-declining
interest rates, and good profit growth, especially in the technology sector.
European equity returns were generally modest in local terms; the decline of the
U.S. dollar relative to most European currencies gave American investors better
results. Japan's economy continued to struggle under the weight of a strong yen,
weakened banking system, and poor consumer demand. Its stock market reflected
these difficulties accordingly. Most notably, emerging markets declined
significantly during the past year, as the Mexican peso crisis shook investor
confidence.

The Fund focuses on companies that stand to benefit from growth in
infrastructure development. Although much of this growth is taking place in
emerging economies, over the past year, negative investor sentiment and the poor
performance of several holdings in emerging markets companies adversely affected
the Fund.

PORTFOLIO STRATEGY
The Fund's strategy remains to invest in the securities of companies involved in
the operation, maintenance and upgrade of infrastructure in developed countries.
At the same time, we will also continue to focus a sizable portion of the Fund's
investments in companies participating in the development of infrastructure in
emerging nations.

OUTLOOK
We view infrastructure as critical to economic development. In past decades,
construction of railroads, roads, canals, telecommunications systems, power
generation and transmission facilities provided the underpinnings for growth in
the U.S. and other leading industrial nations. As emerging economies become more
tightly integrated into world trade, they too are making a significant
investment in infrastructure.

2
<PAGE>
Traditionally, given the importance of infrastructure, the prevailing view was
that the state had to play a dominant role in building and managing these
systems. More recently we have seen recognition that private companies can often
provide these projects with good access to capital and better management skills.
Following are a few examples of the trend towards privatization:(3)
/ / The ongoing privatization of the Canadian National Railroad reflects the
efforts of the Canadian authorities to increase the efficiency of their
transportation systems.
/ / Having auctioned off several seaports to the private sector this year,
Mexico has announced plans to privatize its railways during 1996.
/ / A controlling stake in SPT, the Czech telecommunications company, has been
sold to Dutch and Swiss national telephone companies. Their management is
already in place and working on network improvements.
/ / Under an innovative scheme, major global telecommunications companies in
Indonesia have agreed to make investments in the nation's telephone
network in return for a share of the revenues.

In some countries, however, the progress of infrastructure development has been
mixed. In India, for example, construction of a power plant by foreign interests
in an electricity-short region has been delayed by a change in political
leadership in the project's state government. On the other hand, cellular and
fixed telephone line ventures involving global telecommunications firms have
been licensed by the national government and are going forward.

- --------------
(3) The Fund may or may not participate in or benefit from the
projects/privatizations mentioned in this report.

3
<PAGE>
We expect the ebb and flow of political sensitivities in various countries to
continue to be a factor that could slow infrastructure development in some
regions. However, since many of these countries do not have enough internal
resources to make the investments they desire, we believe there will be a strong
impetus for resolution through attracting foreign capital. We will be watching
these situations closely, and looking for opportunities to achieve favorable
investment results for our shareholders.

CHRISTIAN WIGNALL DAVID SHERRY
CHIEF INVESTMENT OFFICER PORTFOLIO MANAGER
GLOBAL EQUITIES SAN FRANCISCO
SAN FRANCISCO MICHAEL MAHONEY
PORTFOLIO MANAGER
SAN FRANCISCO

NOVEMBER 20, 1995

G.T. GLOBAL INFRASTRUCTURE FUND

4
<PAGE>
TOP PORTFOLIO HOLDINGS*

DSP COMMUNICATIONS UNITED STATES
DSP Communications is a leading provider of chip sets to manufacturers that
produce handsets for the Japanese digital cellular telephone market. The company
is also currently developing products for the U.S. cellular market.

NOKIA FINLAND
Nokia is in the final stages of transforming itself from a Finnish conglomerate
to a leading telecommunications equipment provider. The company now has the
second largest global market share in cellular hand sets and is also second in
the manufacture of European digital-standard cellular systems. Analysts expect
indus-
try growth in Nokia's core wireless markets to expand at rates exceeding 25%.

CONSOLIDATED ELECTRIC POWER OF ASIA (CEPA) HONG KONG
CEPA is developing power plant projects throughout Asia. Currently, the company
has operating plants in China and the Philippines; under negotiation are
projects in Indonesia, Pakistan, India and China. Given the expected large
demand for new power plants in Asia over the next couple of decades, we believe
CEPA's experience in negotiating with power authorities and funding sources puts
it in a favorable position to develop additional projects.

ABC RAIL PRODUCTS UNITED STATES
ABC Rail Products supplies wheels, brakes and specialty track work, primarily to
Class I railroads in North America. Because company sales correlate with levels
of rail traffic, we expect ABC Rail to be a beneficiary of several trends
impacting the railroads. They include: increasing exports of North American coal
and grain, which are typically carried by rail; industry restructuring, with
improved service and lower costs leading to market share gains against other
modes of transportation; and outsourcing of railroads' maintenance activities to
companies such as ABC Rail.

- --------------
* The Fund may or may not continue to hold these or any other securities
mentioned in this report.

5
<PAGE>
MANNESMANN GERMANY
Mannesmann is a diversified industrial conglomerate involved in
telecommunications, machinery, plant construction, automotive technology, tubes
and pipes. Although the recession and recent slow recovery in Europe have
resulted in depressed earnings in its traditional businesses, the company has
realized the growing importance of telecommunications. Mannesmann is the
majority owner of Germany's second-largest cellular company, whose rapid growth
has exceeded expectations and will deliver profits to the parent this year. The
company also has investments in the Italian cellular industry, Spanish and
French paging companies, and is exploring a joint venture in Germany that could
potentially compete with Deutsche Telecom.

LA CEMENTO NACIONAL (LCN) ECUADOR
LCN owns the largest cement company in Ecuador and has a minority position in a
Peruvian cement company. Ecuador has improved its relations with international
lending institutions and has announced plans to increase public sector
investment in roads, power plants, and other related areas. On valuation
measures, such as firm value to production capacity and price-to-earnings, LCN's
stock is among the cheapest in the Latin American infrastructure sector.

LG INFORMATION AND COMMUNICATION SOUTH KOREA
LG is a large-scale supplier of telecommunications equipment to Korea and
selected international markets. We believe the Korean government's emphasis on
multimedia development and its licensing of new competitors in the telecom
service markets are creating a positive environment for equipment providers.

DAINI DENDEN INC. (DDI) JAPAN
As Japan's second-largest provider of cellular phone services, DDI has benefited
from the liberalization of domestic cellular services and cellular hand set
sales. The company also has more than 10% of the domestic long-distance market,
which we expect to show respectable growth when the Japanese economy eventually
recovers and Japanese consumers gradually increase their spending. We expect the
market for cellular phone services to continue to grow at a healthy pace for the
rest of the decade.

6
<PAGE>
KOREAN ELECTRIC POWER (KEPCO) SOUTH KOREA
KEPCO owns more than 90% of South Korea's electricity capacity and is the only
company engaged in the transmission and distribution of electricity. While gross
domestic product (GDP) in South Korea grew at an average rate of 7.6% from 1989
to 1994, electricity consumption consistently increased by more than 10%
annually. KEPCO has stated it intends to increase its capacity by 65% from mid-
1996 to 2001. Our expectation of KEPCO's growth rate and its modest price-to-
cash flow multiple relative to slower-growing utilities in other countries, lead
us to view this stock favorably.

CATERPILLAR (CAT) UNITED STATES
CAT manufactures construction, mining and agricultural machinery as well as
engines for highway trucks, locomotives and earth-moving equipment. The company
sells its equipment around the world with approximately half of sales coming
from outside the U.S.

7
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND
PORTFOLIO SUMMARY

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
PERFORMANCE SUMMARY
<S> <C> <C>
Month G.T. Global Infrastructure Fund MSCI World Index
05/31/94 9,525 10,000
06/30/94 9,567 9,974
07/31/94 9,992 10,165
08/31/94 10,400 10,473
09/30/94 10,325 10,200
10/31/94 10,392 10,492
11/30/94 10,042 10,039
12/31/94 9,817 10,138
01/31/95 9,567 9,987
02/28/95 9,308 10,135
03/31/95 9,133 10,626
04/30/95 9,625 10,998
05/31/95 10,000 11,094
06/30/95 10,292 11,093
07/31/95 10,750 11,650
08/31/95 10,583 11,393
09/30/95 10,600 11,727
10/31/95 10,092 11,544
</TABLE>

THE CHART AT RIGHT SHOWS THE PERFORMANCE OF THE G.T. GLOBAL
INFRASTRUCTURE FUND CLASS A SHARES SINCE THE FUND'S INCEPTION VERSUS THE MSCI
WORLD INDEX. THIS REPRESENTS A CUMULATIVE RETURN OF 0.92% AND AN AVERAGE ANNUAL
TOTAL RETURN OF 0.65%. THE CHART ASSUMES A HYPOTHETICAL $10,000 INITIAL
INVESTMENT IN THE FUND'S CLASS A SHARES AND REFLECTS ALL FUND EXPENSES AND THE
MAXIMUM 4.75% SALES CHARGE. INVESTORS SHOULD NOTE THAT THE FUND IS A
PROFESSIONALLY MANAGED MUTUAL FUND WHILE THE INDEX IS UNMANAGED, DOES NOT INCUR
EXPENSES AND IS NOT AVAILABLE FOR INVESTMENT. THE PERFORMANCE OF OTHER CLASSES
WILL BE GREATER OR LESS THAN THE LINE SHOWN BASED ON DIFFERENCES IN CHARGES AND
FEES PAID BY SHAREHOLDERS INVESTING IN DIFFERENT CLASSES.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

AVERAGE ANNUAL TOTAL RETURNS+
OCTOBER 31, 1995

<TABLE>
<CAPTION>
SHARE WITHOUT SALES CHARGE WITH SALES CHARGE+

CLASS 1 YEAR LIFE OF FUND 1 YEAR LIFE OF FUND
<S> <C> <C> <C> <C>
CLASS A* -2.89% 4.16% -7.50% 0.65%
CLASS B* -3.37% 3.67% -8.20% 0.88%
ADVISOR CLASS** N/A 1.17% N/A N/A
</TABLE>

* 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 G.T. Global. Please
see the "Alternative Purchase Plan" section in the Fund's prospectus.

+ The performance of the Class A and Class B shares reflects the effects of
the maximum 4.75% sales charge or the maximum applicable contingent deferred
sales charge (5% in first year, decreasing to 0% after six years).

THE DATA ABOVE REPRESENT PAST PERFORMANCE OF THE FUND'S SHARES, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
GEOGRAPHIC ALLOCATION OF NET ASSETS
<S> <C>
AS OF OCTOBER 31, 1995
UNITED STATES 34.8%
ASIA-PACIFIC 26.6%
EUROPE 23.6%
LATIN AMERICA 15.0%
SECTOR ALLOCATION OF NET ASSETS
AS OF OCTOBER 31, 1995
ENERGY 27.3%
SERVICES 20.7%
CAPITAL GOODS 20.7%
MATERIALS/BASIC INDUSTRY 15.0%
TECHNOLOGY 9.3%
MISCELLANEOUS 2.2%
SHORT TERM & OTHER 4.8%
</TABLE>

ALLOCATIONS WILL CHANGE BASED ON CURRENT MARKET CONDITIONS.

8
<PAGE>
GT GLOBAL
INFRASTRUCTURE
FUND

FINANCIAL
STATEMENTS
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND

REPORT OF
INDEPENDENT ACCOUNTANTS

- --------------------------------------------------------------------------------

ANNUAL REPORT

To the Shareholders of G.T. Global Infrastructure Fund and Board of Directors of
G.T. Investment Funds, Inc.:

We have audited the accompanying statement of assets and liabilities of G.T.
Global Infrastructure Fund, one of the funds organized as a series of G.T.
Investment Funds, Inc., as of October 31, 1995, the related statement of
operations for the year then ended, the statements of changes in net assets and
the financial highlights for the year then ended and for the period ended May
31, 1994 (commencement of operations) to October 31, 1994. These financial
statements and the financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
G.T. Global Infrastructure Fund as of October 31, 1995, the results of its
operations for the year then ended, the changes in its net assets and the
financial highlights for the year then ended and for the period from May 31,
1994 (commencement of operations) to October 31, 1994, in conformity with
generally accepted accounting principles.

COOPERS & LYBRAND L.L.P.

BOSTON, MASSACHUSETTS
DECEMBER 15, 1995

F-1
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND

STATEMENT OF ASSETS
AND LIABILITIES

October 31, 1995

- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Assets:
Investments in Global Infrastructure Portfolio
(cost $85,307,015) (Note 1)...................... $86,009,828
Receivable for Fund shares sold................... 1,226,018
Receivable from G.T. Capital Management, Inc.
(Note 2)......................................... 177,376
Unamortized organizational costs (Note 1)......... 36,908
Prepaid expenses.................................. 5,852
-----------
Total assets.................................... 87,455,982
-----------
Liabilities:
Payable for Fund shares repurchased............... 447,839
Payable for administration fees (Note 2).......... 192,675
Payable for service and distribution expenses
(Note 2)......................................... 59,114
Payable for printing and postage expenses......... 38,172
Payable for transfer agent fees (Note 2).......... 37,090
Payable for professional fees..................... 24,211
Payable for registration and filing fees.......... 10,118
Payable for Directors' fees and expenses (Note
2)............................................... 4,772
Payable for fund accounting fees (Note 2)......... 1,881
Other accrued expenses............................ 1,628
-----------
Total liabilities............................... 817,500
-----------
Net assets.......................................... $86,638,482
-----------
-----------
Class A:
Net asset value and redemption price per share
($36,240,755 DIVIDED BY 2,991,734 shares
outstanding)....................................... $ 12.11
-----------
-----------
Maximum offering price per share
(100/95.25 of $12.11) *............................ $ 12.71
-----------
-----------
Class B:+
Net asset value and offering price per share
($50,181,400 DIVIDED BY 4,171,435 shares
outstanding)....................................... $ 12.03
-----------
-----------
Advisor Class: (Notes 1 & 3)
Net asset value, offering price per share, and
redemption price per share
($216,327 DIVIDED BY 17,819 shares outstanding).... $ 12.14
-----------
-----------
Net assets consist of:
Paid in capital (Note 3).......................... $86,254,529
Accumulated net realized loss on investments and
foreign currency transactions.................... (318,860)
Net unrealized appreciation on translation of
assets and liabilities in foreign currencies --
Global Infrastructure Portfolio.................. 158,380
Net unrealized appreciation of investments --
Global Infrastructure Portfolio.................. 544,433
-----------
Total -- representing net assets applicable to
capital shares outstanding......................... $86,638,482
-----------
-----------
<FN>
- ----------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-2
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND

STATEMENT OF OPERATIONS

Year ended October 31, 1995

- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Investment income:
Dividend income -- Global Infrastructure Portfolio......... $1,008,999
Interest income -- Global Infrastructure Portfolio......... 692,904
----------
Total investment income.................................. 1,701,903
----------
Expenses:
Expenses -- Global Infrastructure Portfolio................ 727,172
Service and distribution expenses: (Note 2)
Class A.................................. $ 180,627
Class B.................................. 473,441 654,068
-----------
Transfer agent fees (Note 2)............................... 383,369
Administration fees (Note 2)............................... 208,892
Registration and filing fees............................... 144,100
Printing and postage expenses.............................. 144,036
Legal fees................................................. 73,120
Audit fees................................................. 47,550
Directors' fees and expenses (Note 2)...................... 15,950
Fund accounting fees (Note 2).............................. 15,599
Amortization of organization costs (Note 1)................ 10,300
----------
Total expenses before reductions......................... 2,424,156
----------
Expenses reimbursed by G.T. Capital Management, Inc.
(Note 2)............................................... (177,376)
Expense reductions -- Global Infrastructure
Portfolio.............................................. (37,549)
----------
Total net expenses....................................... 2,209,231
----------
Net investment loss.......................................... (507,328)
----------
Net realized and unrealized loss on
investments and foreign currencies:
Net realized gain on investments -- Global
Infrastructure Portfolio.................. 1,032,988
Net realized loss on foreign currency
transactions -- Global Infrastructure
Portfolio................................. (1,091,351)
-----------
Net realized loss during the year........................ (58,363)
Net change in unrealized appreciation on
translation of assets and liabilities in
foreign currencies -- Global
Infrastructure Portfolio.................. 157,236
Net change in unrealized appreciation of
investments -- Global Infrastructure
Portfolio................................. (565,235)
-----------
Net unrealized depreciation during the year.............. (407,999)
----------
Net realized and unrealized loss on investments and foreign
currencies.................................................. (466,362)
----------
Net decrease in net assets resulting from operations......... $ (973,690)
----------
----------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-3
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND

STATEMENT OF CHANGES IN NET ASSETS

- --------------------------------------------------------------------------------

Capital share transactions: (Note 3)
Increase from capital shares sold and
reinvested................................ 69,579,771 55,939,368
Decrease from capital shares repurchased... (36,537,085) (2,544,651)
----------------- -----------------
Net increase from capital share
transactions............................ 33,042,686 53,394,717
----------------- -----------------
Total increase in net assets................. 32,068,996 54,469,486
Net assets:
Beginning of period........................ 54,569,486 100,000
----------------- -----------------
End of period.............................. $ 86,638,482 $54,569,486
----------------- -----------------
----------------- -----------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-4
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND

FINANCIAL HIGHLIGHTS

- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share
outstanding, total investment return, ratios and supplemental data. This
information has been derived from information provided in the financial
statements.

<TABLE>
<CAPTION>
ADVISOR
CLASS A CLASS B CLASS+
------------------------------- ------------------------------- -------------
MAY 31, 1994 MAY 31, 1994 JUNE 1, 1995
YEAR ENDED (COMMENCEMENT OF YEAR ENDED (COMMENCEMENT OF TO
OCTOBER 31, OPERATIONS) TO OCTOBER 31, OPERATIONS) TO OCTOBER 31,
1995 OCTOBER 31, 1994 1995 OCTOBER 31, 1994 1995
----------- ------------------ ----------- ------------------ -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.47 $ 11.43 $ 12.45 $ 11.43 $ 12.00
----------- -------- ----------- -------- -------------
Income from investment operations:
Net investment income (loss).......... (0.03)* 0.01* (0.09)* (0.01)* 0.02*
Net realized and unrealized gain
(loss) on investments................ (0.33) 1.03 (0.33) 1.03 0.12
----------- -------- ----------- -------- -------------
Net increase (decrease) from
investment operations.............. (0.36) 1.04 (0.42) 1.02 0.14
----------- -------- ----------- -------- -------------
Net asset value, end of period.......... $ 12.11 $ 12.47 $ 12.03 $ 12.45 $ 12.14
----------- -------- ----------- -------- -------------
----------- -------- ----------- -------- -------------
Total investment return (c)............. (2.89)% 9.10 %(b) (3.37)% 8.92 %(b) 1.17%(b)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 36,241 $ 23,615 $ 50,181 $ 30,954 $ 216
Ratio of net investment income (loss) to
average net assets:
With expense reductions and
reimbursement by G.T. Capital (Notes
1 & 2)............................... (0.32)% 0.41 %(a) (0.82)% (0.09)%(a) 0.18%(a)
Without expense reductions and
reimbursement by G.T. Capital........ (0.58)% (0.47)%(a) (1.08)% (0.97)%(a) (0.08)%(a)
Ratio of expenses to average net assets:
With expense reductions and
reimbursement by G.T. Capital (Notes
1 & 2)............................... 2.36% 2.40 %(a) 2.86% 2.90 %(a) 1.86%(a)
Without expense reductions and
reimbursement by G.T. Capital........ 2.62% 3.28 %(a) 3.12% 3.78 %(a) 2.12%(a)
</TABLE>

- ----------------

(a) Annualized.
(b) Not Annualized.
(c) Total investment return does not include sales charges.
* Before reimbursement by G.T. Capital Management, Inc., the net
investment income per share would have been reduced by $0.03 for Class
A shares, $0.03 for Class B shares, and $0.02 for Advisor Class shares
for the period ended October 31, 1995. Net investment income per share
would have been reduced by $0.02 for Class A and Class B from May 31,
1994 to October 31, 1994.
+ Commencing June 1, 1995, the Fund began offering Advisor Class shares.

The accompanying notes are an integral part of the financial statements.

F-5
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND

NOTES TO
FINANCIAL STATEMENTS

October 31, 1995

- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global Infrastructure Fund ("Fund") is a separate series of G.T. Investment
Funds, Inc. ("Company"). The Company is organized as a Maryland corporation and
is registered under the Investment Company Act of 1940, as amended ("1940 Act"),
as a diversified, open-end management investment company. The Company has twelve
series of shares in operation, each series corresponding to a distinct portfolio
of investments. The Fund invests substantially all of its investable assets in
Global Infrastructure Portfolio ("Portfolio"), which is registered as an
open-end management investment company under the 1940 Act and has investment
objectives, policies and limitations substantially identical to those of the
Fund. The value of the Fund's investment in the Portfolio reflects the Fund's
proportionate interest in the net assets of the Portfolio. The financial
statements of the Portfolio, including the Portfolio of Investments, are
included elsewhere in this Report and should be read in conjunction with the
Fund's financial statements.

The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. The Fund
commenced sale of Advisor Class shares on June 1, 1995. Investment income,
realized and unrealized capital gains and losses, and the common expenses of the
Fund are allocated on a pro rata basis to each class based on the relative net
assets of each class to the total net assets of the Fund. Each class of shares
differs in its respective service and distribution expenses, and may differ in
its transfer agent, registration, and certain other class-specific fees and
expenses.

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles.

(A) INVESTMENT VALUATION
Valuation of securities and other investment practices by the Portfolio are
discussed in Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this Report.

(B) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, and excise tax on income
and capital gains.

(C) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Portfolio and timing differences.

(D) DEFERRED ORGANIZATIONAL EXPENSES
Expenses incurred by the Fund in connection with its organization, its initial
registration with the Securities and Exchange Commission and with various states
and the initial public offering of its shares aggregated $51,500. These expenses
are being amortized on a straightline basis over a five-year period.

2. RELATED PARTIES
G.T. Capital Management, Inc. ("G.T. Capital") is the Fund's administrator. The
Fund pays administration fees to G.T. Capital at the annualized rate of 0.25% of
the Fund's average daily net assets. These fees are computed daily and paid
monthly, and are subject to reduction in any year to the extent that the Fund's
expenses (exclusive of brokerage commissions, taxes, interest,
distribution-related expenses and extraordinary expenses) exceed the most
stringent limits prescribed by the laws or regulations of any state in which the
Fund's shares are offered for sale, based on the average total net asset value
of the Fund.

G.T. Global Financial Services, Inc. ("G.T. Global"), an affiliate of G.T.
Capital, serves as the Fund's distributor. The Fund offers Class A, Class B, and
Advisor Class shares for purchase.

F-6
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND

Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. G.T. Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the year ended October 31, 1995, G.T. Global retained
$67,021 of such sales charges. G.T. Global also makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class A
shares.

Class B shares are not subject to initial sales charges. When Class B shares are
sold, G.T. Global from its own resources pays commissions to dealers through
which the sales are made. Certain redemptions of Class B shares made within six
years of purchase are subject to contingent deferred sales charges ("CDSCs"), in
accordance with the Fund's current prospectus. For the year ended October 31,
1995, G.T. Global collected CDSCs in the amount of $193,268. In addition, G.T.
Global makes ongoing shareholder servicing and trail commission payments to
dealers whose clients hold Class B shares.

Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Directors has
adopted separate plans of distribution with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses G.T. Global for a portion of its shareholder servicing and
distribution expenses. Under the Class A Plan, the Fund may pay G.T. Global a
service fee at the annualized rate of up to 0.25% of the average daily net
assets of the Fund's Class A shares for G.T. Global's expenditures incurred in
servicing and maintaining shareholder accounts, and may pay G.T. Global a
distribution fee at the annualized rate of up to 0.50% of the average daily net
assets of the Fund's Class A shares, less any amounts paid by the Fund as the
aforementioned service fee, for G.T. Global's expenditures incurred in providing
services as distributor. All expenses for which G.T. Global is reimbursed under
the Class A Plan will have been incurred within one year of such reimbursement.

Pursuant to the Fund's Class B Plan, the Fund may pay G.T. Global a service fee
at the annualized rate of up to 0.25% of the average daily net assets of the
Fund's Class B shares for G.T. Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay G.T. Global a distribution fee at
the annualized rate of up to 0.75% of the average daily net assets of the Fund's
Class B Shares for G.T. Global's expenditures incurred in providing services as
distributor. Expenses incurred under the Class B Plan in excess of 1.00%
annually may be carried forward for reimbursement in subsequent years as long as
that Plan continues in effect.

G.T. Capital and G.T. Global voluntarily have undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest, and extraordinary
expenses) to the maximum annual rate of 2.40%, 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 G.T.
Capital of administration fees, waivers by G.T. Global of payments under the
Class A Plan and/or Class B Plan and/or reimbursements by G.T. Capital or G.T.
Global of portions of the Fund's other operating expenses.

G.T. Global Investor Services, Inc. ("G.T. Services"), an affiliate of G.T.
Capital and G.T. Global, is the transfer agent of the Fund.

Effective May 1, 1995, G.T. Capital has assumed the role of pricing and
accounting agent for the Fund. The monthly fee for these services to G.T.
Capital is a percentage, not to exceed 0.03% annually, of the Fund's average
daily net assets. The annual fee rate is derived by applying 0.03% to the first
$5 billion of assets of all registered mutual funds advised by G.T. Capital
("G.T. Funds") and 0.02% to the assets in excess of $5 billion and dividing the
result by the aggregate assets of the G.T. Funds. For the period ended October
31, 1995, the Fund paid fund accounting fees of $5,836 to G.T. Capital.

The Company pays each of its Directors who is not an employee, officer or
director of G.T. Capital, G.T. Global or G.T. Services $5,000 per year plus $300
for each meeting of the board or any committee thereof attended by the Director.

F-7
<PAGE>
G.T. GLOBAL INFRASTRUCTURE FUND

3. CAPITAL SHARES
At October 31, 1995, there were 6,000,000,000 shares of the Company's common
stock authorized, at $0.0001 par value. Of this amount, 200,000,000 were
classified as shares of the Fund; 400,000,000 were classified as shares of G.T.
Global Government Income Fund; 200,000,000 were classified as shares of G.T.
Global Health Care Fund; 200,000,000 were classified as shares of G.T. Global
Emerging Markets Fund; 200,000,000 were classified as shares of G.T. Global
Currency Fund (inactive); 200,000,000 were classified as shares of G.T. Global
Growth & Income Fund; 200,000,000 were classified as shares of G.T. Global Small
Companies Fund (inactive); 200,000,000 were classified as shares of G.T. Latin
America Growth Fund; 400,000,000 were classified as shares of G.T. Global
Telecommunications Fund; 200,000,000 were classified as shares of G.T. Global
Strategic Income Fund; 200,000,000 were classified as shares of G.T. Global High
Income Fund; 200,000,000 were classified as shares of G.T. Global Natural
Resources Fund; 200,000,000 were classified as shares of G.T. Global Financial
Services Fund; and 200,000,000 were classified as shares of G.T. Global Consumer
Products and Services Fund. The shares of each of the foregoing series of the
Company were divided equally into two classes, designated Class A and Class B
common stock. With respect to the issuance of Advisor Class shares, 100,000,000
shares were classified as shares of each of the fourteen series of the Company
and designated as Advisor Class common stock. 1,400,000,000 shares remain
unclassified. Transactions in capital shares of the Fund were as follows:

CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
MAY 31, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS)
OCTOBER 31, 1995 TO OCTOBER 31, 1994
------------------------ ----------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------- ---------- ------------ --------- -----------
<S> <C> <C> <C> <C>
Shares sold................................................................ 2,997,022 $ 35,715,669 2,020,133 $24,648,202
Shares repurchased......................................................... (1,898,557) (23,075,894) (131,239) (1,614,053)
---------- ------------ --------- -----------
Net increase............................................................... 1,098,465 $ 12,639,775 1,888,894 $23,034,149
---------- ------------ --------- -----------
---------- ------------ --------- -----------

MAY 31, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS)
OCTOBER 31, 1995 TO OCTOBER 31, 1994
------------------------ ----------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------- ---------- ------------ --------- -----------
<S> <C> <C> <C> <C>
Shares sold................................................................ 2,815,712 $ 33,606,616 2,557,551 $31,291,166
Shares repurchased......................................................... (1,130,463) (13,421,180) (75,739) (930,598)
---------- ------------ --------- -----------
Net increase............................................................... 1,685,249 $ 20,185,436 2,481,812 $30,360,568
---------- ------------ --------- -----------
---------- ------------ --------- -----------
</TABLE>

<TABLE>
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT OF
SALE OF SHARES)
TO OCTOBER 31, 1995
------------------------
ADVISOR CLASS SHARES AMOUNT
- --------------------------------------------------------------------------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold................................................................ 21,018 $ 257,486
Shares repurchased......................................................... (3,199) (40,011)
---------- ------------
Net increase............................................................... 17,819 $ 217,475
---------- ------------
---------- ------------
</TABLE>

4. SUBSEQUENT EVENT:
Effective January 1, 1996, as part of a unified corporate identity effort, the
name of the BIL GT Group (of which G.T. Capital is a member) will be changed to
Liechtenstein Global Trust ("LGT"). The Fund's (or Portfolio's) investment
manager and administrator, currently named G.T. Capital Management, Inc., will
be changed to "LGT Asset Management, Inc.", and G.T. Global Financial Services,
Inc., which serves as the Fund's distributor, will be known as "GT
Global, Inc."

F-8
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

REPORT OF
INDEPENDENT ACCOUNTANTS

- --------------------------------------------------------------------------------

ANNUAL REPORT

To the Shareholders and Board of Trustees of
Global Infrastructure Portfolio:

We have audited the accompanying statement of assets and liabilities of Global
Infrastructure Portfolio, including the portfolio of investments, as of October
31, 1995, the related statement of operations for the year then ended, the
statements of changes in net assets and the supplementary data for the year then
ended and for the period from May 31, 1994 (commencement of operations) to
October 31, 1994. These financial statements and the supplementary data are the
responsibility of the Portfolio's management. Our responsibility is to express
an opinion on these financial statements and the supplementary data based on our
audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the
supplementary data are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 1995 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements and the supplementary data referred to
above present fairly, in all material respects, the financial position of Global
Infrastructure Portfolio as of October 31, 1995, the results of its operations
for the year then ended, the changes in its net assets and the supplementary
data for the year then ended and for the period from May 31, 1994 (commencement
of operations) to October 31, 1994, in conformity with generally accepted
accounting principles.

COOPERS & LYBRAND L.L.P.

BOSTON, MASSACHUSETTS
DECEMBER 15, 1995

F-9
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

PORTFOLIO OF INVESTMENTS

October 31, 1995

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (27.3%)
Consolidated Electric Power Asia .......................... HK 1,400,000 $ 2,833,971 3.3
ELECTRICAL & GAS UTILITIES
Korea Electric Power Corp.: ............................... KOR -- -- 2.8
ELECTRICAL & GAS UTILITIES
ADR-/- {\/} ............................................. -- 58,000 1,435,500 --
Common-/- ............................................... -- 21,000 938,083 --
ASEA AB "B" Free ......................................... SWDN 22,000 2,172,307 2.5
ELECTRICAL PLANT/EQUIPMENT
Enron Global Power & Pipelines L.L.C. ..................... US 90,000 2,171,250 2.5
ENERGY EQUIPMENT & SERVICES
Empresa Nacional de Electridad S.A. - ADR{\/} ............. SPN 40,000 2,010,000 2.3
ELECTRICAL & GAS UTILITIES
Compania Boliviana de Energia Electrica{\/} ............... BOL 62,300 1,814,488 2.1
ELECTRICAL & GAS UTILITIES
Edison S.p.A. ............................................. ITLY 450,000 1,811,527 2.1
ELECTRICAL & GAS UTILITIES
Chilgener S.A. - ADR{\/} .................................. CHLE 75,000 1,800,000 2.1
ELECTRICAL & GAS UTILITIES
Companhia Energetica de Minas Gerais (Cemig) - ADR-/-
{\/} .................................................... BRZL 81,175 1,735,116 2.0
ELECTRICAL & GAS UTILITIES
EVN Energie-Versorgung Niederoesterreich AG ............... ASTRI 14,000 1,711,284 2.0
ELECTRICAL & GAS UTILITIES
Capex S.A. ................................................ ARG 260,000 1,677,000 2.0
ELECTRICAL & GAS UTILITIES
MetroGas S.A. - ADR{\/} ................................... ARG 100,000 850,000 1.0
ENERGY EQUIPMENT & SERVICES
AES China Generating Co., Ltd. "A"-/- ..................... US 54,100 541,000 0.6
ELECTRICAL & GAS UTILITIES
------------
23,501,526
------------
Services (20.7%)
ABC Rail Products Corp.-/- ................................ US 115,100 2,560,975 3.0
TRANSPORTATION - ROAD & RAIL
DDI Corp. ................................................. JPN 295 2,392,672 2.8
WIRELESS COMMUNICATIONS
Telefonica de Espana - ADR{\/} ............................ SPN 55,000 2,069,375 2.4
TELEPHONE NETWORKS
SPT Telecom-/- ........................................... CZCH 19,000 1,871,295 2.2
TELEPHONE NETWORKS
WorldCom, Inc.-/- ......................................... US 55,832 1,821,519 2.1
TELEPHONE - LONG DISTANCE
Stet Di Risp .............................................. ITLY 810,000 1,768,188 2.1
TELEPHONE NETWORKS
PT Indonesia Satellite (Indosat) - ADR{\/} ................ INDO 50,000 1,656,250 1.9
TELEPHONE - LONG DISTANCE
Philippine Long Distance Telephone Co. - ADR{\/} .......... PHIL 20,000 1,122,500 1.3
TELEPHONE NETWORKS
Centennial Cellular Corp. "A"-/- .......................... US 60,000 1,095,000 1.3
WIRELESS COMMUNICATIONS
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-10
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Pakistan Telecommunications Co., Ltd.: .................... PAK -- -- 0.8
TELEPHONE NETWORKS
144A GDR{.} -/- {\/} ................................... -- 4,892 $ 457,402 --
New Voucher-/- {\/} ..................................... -- 2,800 273,324 --
RailTex, Inc.-/- .......................................... US 22,200 460,650 0.5
TRANSPORTATION - ROAD & RAIL
PST Vans, Inc.-/- ......................................... US 47,500 267,188 0.3
TRANSPORTATION - ROAD & RAIL
Telecomunicacoes Brasileiras S.A. (Telebras) - 144A ADR{.}
{\/} ..................................................... BRZL 113 4,506 --
TELEPHONE NETWORKS
------------
17,820,844
------------
Capital Goods (20.7%)
Nokia AB Preferred - ADR{\/} .............................. FIN 51,000 2,843,250 3.3
TELECOM EQUIPMENT
Mannesmann AG ............................................. GER 7,500 2,469,090 2.9
MACHINERY & ENGINEERING
Caterpillar, Inc. ......................................... US 40,000 2,245,000 2.6
MACHINERY & ENGINEERING
Fluor Corp. ............................................... US 35,000 1,977,500 2.3
CONSTRUCTION
United Engineers Ltd. .................................... MAL 270,000 1,679,197 2.0
CONSTRUCTION
Allgon AB "B" Free ........................................ SWDN 100,000 1,515,037 1.8
TELECOM EQUIPMENT
Acme-Cleveland Corp. ..................................... US 63,300 1,384,688 1.6
MACHINE TOOLS
E.R.G. Ltd. .............................................. AUSL 1,100,000 1,331,861 1.5
MULTI-INDUSTRY
BroadBand Technologies, Inc.-/- ........................... US 70,100 1,226,750 1.4
TELECOM EQUIPMENT
C & P Homes, Inc.-/- ...................................... PHIL 998,200 643,566 0.7
CONSTRUCTION
Champion Technology Holdings .............................. HK 3,878,622 496,668 0.6
TELECOM EQUIPMENT
------------
17,812,607
------------
Materials/Basic Industry (15.0%)
La Cementos Nacional, C.A. - 144A GDR{.} -/- {\/} ......... ECDR 12,060 2,412,000 2.8
CEMENT
PT Bakrie and Brothers .................................... INDO 1,170,000 2,061,674 2.4
BUILDING MATERIALS & COMPONENTS
Lone Star Industries, Inc. ................................ US 75,000 1,715,625 2.0
CEMENT
Giant Cement Holding, Inc.-/- ............................. US 179,800 1,685,625 2.0
CEMENT
Siam Cement Co., Ltd. - Foreign ........................... THAI 28,000 1,526,868 1.8
CEMENT
Hylsamex, S.A. de C.V. - 144A ADR{.} -/- {\/} ............. MEX 75,000 1,265,625 1.5
METALS - STEEL
Cementos Paz del Rio S.A. - 144A ADR{.} -/- {\/} .......... COL 65,000 926,250 1.1
CEMENT
PT Semen Cibinong - Foreign ............................... INDO 316,000 828,282 1.0
CEMENT
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-11
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
<TABLE>
<CAPTION>
Market % of Net
Equity Investments Country Shares Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Grupo Simec, S.A. de C.V. - ADR-/- {\/} ................... MEX 54,200 $ 352,300 0.4
METALS - STEEL
------------
12,774,249
------------
Technology (9.3%)
DSP Communications, Inc. .................................. US 110,000 3,987,500 4.6
TELECOM TECHNOLOGY
LG Information & Communication-/- ......................... KOR 30,400 2,423,735 2.8
TELECOM TECHNOLOGY
Three-Five Systems, Inc.-/- .............................. US 90,000 1,631,249 1.9
TELECOM TECHNOLOGY
------------
8,042,484
------------
Miscellaneous (2.2%)
General Electric Co. ...................................... US 30,000 1,897,500 2.2
CONGLOMERATE
------------ -----

TOTAL EQUITY INVESTMENTS (cost $81,114,777) ................. 81,849,210 95.2
------------ -----
<CAPTION>

Principal Market % of Net
Fixed Income Investments Currency Amount Value Assets {d}
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (0.9%)
Philippines (0.9%)
International Container Terminal Services, Convertible
Bond,5% due 9/15/01 - 144A (cost $1,000,000){.} ....... USD 1,000,000 810,000 0.9
------------ -----
<CAPTION>

Market % of Net
Repurchase Agreement Value Assets {d}
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated October 31, 1995, with State Street Bank & Trust
Company, due November 1, 1995, for an effective yield of
5.80% collateralized by $3,235,000 U.S. Treasury Bill, due
2/8/96 (market value of collateral is $3,187,283,
including accrued interest) (cost $3,116,502). .......... 3,116,502 3.6
------------ -----

TOTAL INVESTMENTS (cost $85,231,279) ........................ 85,775,712 99.7
Other Assets and Liabilities ................................ 234,216 0.3
------------ -----

NET ASSETS .................................................. $ 86,009,928 100.0
------------ -----
------------ -----
<FN>
- ----------------
{d} Percentages indicated are based on net assets of $86,009,928.
-/- 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 $85,381,279 and
appreciation (depreciation) is as follows:

Unrealized appreciation: $ 8,629,590
Unrealized depreciation: (8,235,157)
-------------
Net unrealized appreciation: $ 394,433
-------------
-------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-12
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

The Fund's Portfolio of Investments at October 31, 1995, was concentrated in the
following countries:

<TABLE>
<CAPTION>
Percentage of Net Assets {d}
-------------------------------------------
Short-Term
Country(Country Code/Currency Code) Equity Fixed Income & Other Total
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Argentina (ARG/ARS) ................. 3.0 3.0
Australia (AUSL/AUD) ................. 1.5 1.5
Austria (ASTRI/ATS) .................. 2.0 2.0
Bolivia (BOL/BOL) .................... 2.1 2.1
Brazil (BRZL/BRL) .................... 2.0 2.0
Chile (CHLE/CLP) ..................... 2.1 2.1
Colombia (COL/COP) ................... 1.1 1.1
Czech Republic (CZCH/CSK) ........... 2.2 2.2
Ecuador (ECDR/ECS) .................. 2.8 2.8
Finland (FIN/FIM) .................... 3.3 3.3
Germany (GER/DEM) .................... 2.9 2.9
Hong Kong (HK/HKD) ................... 3.9 3.9
Indonesia (INDO/IDR) ................. 5.3 5.3
Italy (ITLY/ITL) ..................... 4.2 4.2
Japan (JPN/JPY) ...................... 2.8 2.8
Korea (KOR/KRW) ...................... 5.6 5.6
Malaysia (MAL/MYR) ................... 2.0 2.0
Mexico (MEX/MXN) ..................... 1.9 1.9
Pakistan (PAK/PKR) .................. 0.8 0.8
Philippines (PHIL/PHP) ............... 2.0 0.9 2.9
Spain (SPN/ESP) ...................... 4.7 4.7
Sweden (SWDN/SEK) .................... 4.3 4.3
Thailand (THAI/THB) .................. 1.8 1.8
United States (US/USD) ............... 30.9 3.9 34.8
------ --- --- -----
Total ............................... 95.2 0.9 3.9 100.0
------ --- --- -----
------ --- --- -----
<FN>
- ----------------
{d} Percentages indicated are based on net assets of $86,009,928.
</TABLE>

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
OCTOBER 31, 1995

<TABLE>
<CAPTION>
Market Value Unrealized
(U.S. Delivery Appreciation
Contracts to Buy Dollars) Contract Price Date (Depreciation)
- ------------------------------------------------------------------------- ------------- -------------- --------- -------------
<S> <C> <C> <C> <C>
Deutsche Marks........................................................... 852,697 1.42567 11/03/95 $ 10,987
Japanese Yen............................................................. 215,243 100.01800 11/14/95 (4,717)
Japanese Yen............................................................. 25,438 97.97301 11/14/95 (1,100)
------------- -------------
Total Contracts to Buy (Payable amount $1,088,208)....................... 1,093,378 5,170
------------- -------------
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF NET ASSETS IS 1.27%

Contracts to Sell
- -------------------------------------------------------------------------
Deutsche Marks........................................................... 1,811,980 1.37700 11/03/95 39,872
Deutsche Marks........................................................... 177,898 1.45648 11/30/95 (6,251)
Italian Lira............................................................. 1,341,741 1,605.60000 11/16/95 (10,500)
Japanese Yen............................................................. 978,378 91.70000 11/14/95 112,135
Japanese Yen............................................................. 303,297 96.50400 11/14/95 17,933
------------- -------------
Total Contracts to Sell (Receivable amount $4,766,483)................... 4,613,294 153,189
------------- -------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 5.36%

Total Open Forward Foreign currency Contracts, Net....................... $ 158,359
-------------
-------------
</TABLE>

- ----------------
See Note 1 to the financial statements.

The accompanying notes are an integral part of the financial statements.

F-13
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

STATEMENT OF ASSETS
AND LIABILITIES

October 31, 1995

- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $85,231,279)
(Note 1)............................................... $85,775,712
U.S. currency.............................. $ 499
Foreign currencies (cost $472,653)......... 472,692 473,191
--------
Receivable for open forward foreign currency contracts,
net (Note 1)........................................... 158,359
Dividends and dividend withholding tax reclaims
receivable............................................. 119,634
Receivable for forward foreign currency contracts --
closed (Note 1)........................................ 15,177
Interest receivable..................................... 6,389
Prepaid expenses........................................ 234
Cash held as collateral for securities loaned (Note
1)..................................................... 7,441,675
-----------
Total assets.......................................... 93,990,371
-----------
Liabilities:
Payable for investment management and administration
fees (Note 2).......................................... 505,838
Payable for professional fees........................... 14,114
Payable for custodian fees (Note 1)..................... 6,534
Payable for printing and postage expenses............... 4,250
Payable for Trustees' fees and expenses (Note 2)........ 3,992
Other accrued expenses.................................. 4,040
Collateral for securities loaned (Note 1)............... 7,441,675
-----------
Total liabilities..................................... 7,980,443
-----------
Net assets................................................ $86,009,928
-----------
-----------
Net assets consist of:
Paid in capital......................................... $84,277,905
Accumulated net investment income....................... 1,136,794
Accumulated net realized loss on investments and foreign
currency transactions.................................. (107,584)
Net unrealized appreciation on translation of assets and
liabilities in foreign currencies...................... 158,380
Net unrealized appreciation of investments.............. 544,433
-----------
Total -- representing net assets applicable to shares of
beneficial interest outstanding.......................... $86,009,928
-----------
-----------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-14
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

STATEMENT OF OPERATIONS

Year ended October 31, 1995

- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of
$90,378).................................................. $1,008,999
Interest income............................................ 692,904
----------
Total investment income.................................. 1,701,903
----------
Expenses:
Investment management and administration fees (Note 2)..... 601,421
Custodian fees (Note 1).................................... 80,701
Legal fees................................................. 18,300
Audit fees................................................. 11,550
Trustees' fees and expenses (Note 2)....................... 7,300
Printing and postage expenses.............................. 4,250
Other expenses............................................. 3,650
----------
Total expenses before reductions......................... 727,172
----------
Expense reductions (Notes 1 & 4)....................... (37,549)
----------
Total net expenses....................................... 689,623
----------
Net investment income........................................ 1,012,280
----------
Net realized and unrealized loss on
investments and foreign currencies: (Note 1)
Net realized gain on investments........... 1,032,988
Net realized loss on foreign currency
transactions.............................. (1,091,351)
-----------
Net realized loss during the year........................ (58,363)
Net change in unrealized appreciation on
translation of assets and liabilities
in foreign currencies..................... 157,236
Net change in unrealized appreciation of
investments............................... (565,235)
-----------
Net unrealized depreciation during the year.............. (407,999)
----------
Net realized and unrealized loss on investments and foreign
currencies.................................................. (466,362)
----------
Net increase in net assets resulting from operations......... $ 545,918
----------
----------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-15
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

STATEMENT OF CHANGES IN NET ASSETS

- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
MAY 31, 1994
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
OCTOBER 31, 1995 OCTOBER 31, 1994
----------------- -----------------
Increase in net assets
<S> <C> <C>
Operations:
Net investment income...................... $ 1,012,280 $ 124,514
Net realized loss on investments and
foreign currency transactions............. (58,363) (49,221)
Net change in unrealized appreciation on
translation of assets and
liabilities in foreign currencies......... 157,236 1,144
Net change in unrealized appreciation of
investments............................... (565,235) 1,109,668
----------------- -----------------
Net increase in net assets resulting from
operations.............................. 545,918 1,186,105
Beneficial interest transactions:
Contributions.............................. 62,352,320 52,494,964
Withdrawals................................ (27,995,100) (2,674,379)
----------------- -----------------
Net increase from beneficial interest
transactions............................ 34,357,220 49,820,585
----------------- -----------------
Total increase in net assets................. 34,903,138 51,006,690
Net assets:
Beginning of period........................ 51,106,790 100,100
----------------- -----------------
End of period.............................. $ 86,009,928 $51,106,790
----------------- -----------------
----------------- -----------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

F-16
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

SUPPLEMENTARY DATA

- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived
from information provided in the financial statements.

<TABLE>
<CAPTION>
MAY 31, 1994
YEAR ENDED (COMMENCEMENT OF
OCTOBER 31, OPERATIONS) TO
1995 OCTOBER 31, 1994
----------- ------------------
<S> <C> <C>
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 86,010 $ 51,107
Ratio of net investment income to
average net assets..................... 1.22% 1.44 %(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
4)................................... 0.83% 1.17 %(a)
Without expense reductions............ 0.88% -- % *
Portfolio turnover rate................. 45% 18 %
</TABLE>

- ----------------

(a) Annualized.
* Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.

The accompanying notes are an integral part of the financial statements.

F-17
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

NOTES TO
FINANCIAL STATEMENTS

October 31, 1995

- --------------------------------------------------------------------------------

1. SIGNIFICANT ACCOUNTING POLICIES
Global Infrastructure Portfolio ("Portfolio") is organized as a New York Trust
and is registered under the Investment Company Act of 1940, as amended ("1940
Act"), as a diversified, open-end management investment company. The following
is a summary of significant accounting policies consistently followed by the
Portfolio in the preparation of the financial statements. The policies are in
conformity with generally accepted accounting principles.

(A) PORTFOLIO VALUATION
The Portfolio calculates the net asset value of and completes orders to purchase
or repurchase Portfolio shares of beneficial interest on each business day, with
the exception of those days on which the New York Stock Exchange is closed.

Equity securities are valued at the last sale price on the exchange on which
such securities are traded, on the principal over-the-counter market on which
such securities are traded, as of the close of business on the day the
securities are being valued, or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by G.T. Capital Management,
Inc. ("G.T. Capital") to be the primary market.

Fixed income investments are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for investments of comparative maturity, quality and type; however, when G.T.
Capital deems it appropriate, prices obtained for the day of valuation from a
bond pricing service will be used. Short-term investments with 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
Portfolio's Board of Trustees.

Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Portfolio's Board of Trustees.

(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Portfolio are maintained in U.S. dollars. The
market values of foreign securities, currency holdings, and other assets and
liabilities are recorded in the books and records of the Portfolio after
translation to U.S. dollars based on the exchange rates on that day. The cost of
each security is determined using historical exchange rates. income and
withholding taxes are translated at prevailing exchange rates when earned or
incurred.

The Portfolio does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss from
investments.

Reported net realized foreign exchange gains or losses arise from sales of
forward foreign currency contracts, sales of foreign currencies, currency gains
or losses realized between the trade and settlement dates on securities
transactions, and the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Portfolio's books and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains or losses arise from changes in the value of assets and
liabilities other than investments in securities at year end, resulting from
changes in exchange rates.

(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Portfolio, it is the
Portfolio's policy to always receive, as collateral, United States government
securities or other high quality debt securities of which the value, including
accrued interest, is at least equal to the amount to be repaid to the Portfolio
under each agreement at its maturity.

F-18
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Portfolio as an unrealized gain or loss. When
the Forward Contract is closed, the Portfolio records a realized gain or loss
equal to the difference between the value at the time it was opened and the
value at the time it was closed. Forward Contracts involve market risk in excess
of the amounts shown in the Portfolio's "Statement of Assets and Liabilities".
The Portfolio could be exposed to risk if a counterparty is unable to meet the
terms of the contract or if the value of the currency changes unfavorably. The
Portfolio may enter into Forward Contracts in connection with planned purchases
or sales of securities, or to hedge against adverse fluctuations in exchange
rates between currencies.

(E) OPTION ACCOUNTING PRINCIPLES
When the Portfolio writes a call or put option, an amount equal to the premium
received is included in the Portfolio's "Statement of Assets and Liabilities" as
an asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current market value of the option.
The current market value of an option listed on a traded exchange is valued at
its last bid price, or in the case of an over-the-counter option, is valued at
the average of the last bid prices obtained from brokers. If an option expires
on its stipulated expiration date or if the Portfolio enters into a closing
purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. The Portfolio can write options
only on a covered basis, which, for a call, requires that the Portfolio hold the
underlying security and, for a put, requires the Portfolio to set aside cash,
U.S. government securities or other liquid, high-grade debt securities in an
amount not less than the exercise price or otherwise provide adequate cover at
all times while the put option is outstanding. The Portfolio may use options to
manage its exposure to the stock market and fluctuations in currency values or
interest rates.

The premium paid by the Portfolio for the purchase of a call or put option is
included in the Portfolio's "Statement of Assets and Liabilities" as an
investment and subsequently "marked-to-market" to reflect the current market
value of the option. If an option which the Portfolio has purchased expires on
the stipulated expiration date, the Portfolio realizes a loss in the amount of
the cost of the option. If the Portfolio enters into a closing sale transaction,
the Portfolio realizes a gain or loss, depending on whether proceeds from the
closing sale transaction are greater or less than the cost of the option. If the
Portfolio exercises a call option, the cost of the securities acquired by
exercising the call is increased by the premium paid to buy the call. If the
Portfolio exercises a put option, it realizes a gain or loss from the sale of
the underlying security, and the proceeds from such sale are decreased by the
premium originally paid.

The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Portfolio may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Portfolio may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Portfolio may not be able to enter into a closing transaction because of an
illiquid secondary market.

(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Portfolio is required to pledge to the broker an amount of cash or securities
equal to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Portfolio agrees to receive
from or pay to the broker an amount of cash equal to the daily fluctuation in
value of the contract. Such receipts or payments are known as "variation margin"
and are recorded by the Portfolio as unrealized gains or losses. When the
contract is closed, the Portfolio records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed. The potential risk to the Portfolio is that the
change in value of the underlying securities may not correlate to the change in
value of the contracts. The Portfolio may use futures contracts to manage its
exposure to the stock market and to fluctuations in currency values or interest
rates.

(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The

F-19
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
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. The Portfolio may trade securities on other
than normal settlement terms. This may increase the risk if the other party to
the transaction fails to deliver and causes the Portfolio to subsequently invest
at less advantageous prices.

(H) PORTFOLIO SECURITIES LOANED
At October 31, 1995, stocks with an aggregate value of approximately $7,127,333
were on loan to brokers. The loans were secured by cash collateral of
$7,441,675. For international securities, cash collateral is received by the
Portfolio against loaned securities in an amount at least equal to 105% of the
market value of the loaned securities at the inception of each loan. This
collateral must be maintained at not less than 103% of the market value of the
loaned securities during the period of the loan. For domestic securities, cash
collateral is received by the Portfolio against loaned securities in an amount
at least equal to 102% of the market value of the loaned securities at the
inception of each loan. This collateral must be maintained at not less than 100%
of the market value of the loaned securities during the period of the loan. For
the year ended October 31, 1995, the Portfolio received $29,528 of income from
securities lending which were used to reduce the Portfolio's custodian fees.

(I) TAXES
It is the policy of the Portfolio to meet the requirements of the Internal
Revenue Code of 1986, as amended ("Code"). Therefore, no provision has been made
for Federal taxes on income, capital gains, or unrealized appreciation of
securities held.

(J) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Portfolio's investments in emerging market
countries may involve greater risks than investments in more developed markets
and the price of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.

In addition, the Portfolio may focus its investments in certain related
infrastructure industries, subjecting the Portfolio to greater risk than a fund
that is more diversified.

(K) INDEXED SECURITIES
The Portfolio may invest in indexed securities whose value is linked either
directly or indirectly to changes in foreign currencies, interest rates,
equities, indices, or other reference instruments. Indexed securities may be
more volatile than the reference instrument itself, but any loss is limited to
the amount of the original investment.

(L) RESTRICTED SECURITIES
The Portfolio is permitted to invest in privately placed restricted securities.
These securities may be resold in transactions exempt from registration or to
the public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.

2. RELATED PARTIES
G.T. Capital is the Portfolio's investment manager and administrator. The
Portfolio pays investment management and administration fees to G.T. Capital at
the annualized rate of 0.725% on the first $500 million of average daily net
assets of the Portfolio; 0.70% on the next $500 million; 0.675% on the next $500
million; and 0.65% on amounts thereafter. These fees are computed daily and paid
monthly.

The Portfolio pays each of its Trustees who is not an employee, officer or
director of G.T. Capital, G.T. Global Financial Services, Inc. or G.T. Global
Investor Services, Inc. $500 per year plus $150 for each meeting of the board or
any committee thereof attended by the Trustees.

At October 31, 1995, all of the shares of beneficial interest of the Portfolio
were owned either by G.T. Global Infrastructure Fund or G.T. Capital.

3. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 1995, purchases and sales of investment
securities by the Portfolio, other than short-term investments, aggregated
$66,417,748 and $32,256,613, respectively. There were no purchases or sales of
U.S. government obligations by the Portfolio for the year ended October 31,
1995.

4. EXPENSE REDUCTIONS
G.T. Capital has directed certain portfolio trades to brokers who paid a portion
of the Portfolio's expenses. For the year ended October 31, 1995, the
Portfolio's expenses were reduced by $8,021 under these arrangements.

F-20
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO

NOTES

- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL INFRASTRUCTURE FUND

[LOGO]

GT GLOBAL MUTUAL FUNDS

GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL GT GLOBAL
DIRECTLY AT 1-800-824-1580. THE PROSPECTUS CONTAINS MORE COMPLETE
INFORMATION, INCLUDING CHARGES, EXPENSES AND RISKS. INVESTORS SHOULD READ
THE PROSPECTUS CAREFULLY BEFORE INVESTING.

GROWTH FUNDS

/ / GLOBALLY DIVERSIFIED FUNDS

GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.

GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside
the U.S.

GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies

/ / GLOBAL THEME FUNDS

GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide

GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture, or sell
telecommunications services or equipment

GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve, or maintain a country's infrastructure

GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products

GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore, or develop natural resources

GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services

/ / REGIONALLY DIVERSIFIED FUNDS

GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim

GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe

GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America

/ / SINGLE COUNTRY FUNDS

GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.

GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. domiciled
companies

GT GLOBAL AMERICA VALUE FUND
Concentrates on large cap equity securities of
U.S. companies believed to be undervalued

GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market

GROWTH AND INCOME FUND

GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world

INCOME FUNDS

GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities

GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets

GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets

MONEY MARKET FUND

GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital

THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
[LOGO]

GT Global Financial Services, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624

DATED MATERIAL
PLEASE EXPEDITE