<PAGE>
CHANCELLOR LGT
ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
LATIN AMERICA
GROWTH FUND
ANNUAL REPORT
OCTOBER 31, 1996
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Message from the
Chairman............. 1
Report from the Fund
Managers and Key
Portfolio Holdings... 2
Report of Independent
Accountants.......... F1
Financial
Statements........... F2
The views of the Fund's manage-
ment and portfolio holdings
described in this report are as
of October 31, 1996; these views
and portfolio holdings may have
changed.
</TABLE>
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
MESSAGE FROM THE CHAIRMAN
Dear Investor,
Fiscal 1996 has been a year of economic strengthening, and the Funds have
benefited from low inflation and low interest rates worldwide. We're proud of
their performance over the past year and remain enthusiastic about their
long-term potential.
Consistent, above-average performance of GT Global Funds is our priority. To
that end, we enhanced the breadth and depth of our investment capabilities
this fall when Liechtenstein Global Trust (LGT), the parent company of GT
Global, acquired a premier institutional money manager, Chancellor Capital
Management. On October 31, Chancellor merged with LGT Asset Management, the
Funds' advisor, and the combined entities are now known as Chancellor LGT
Asset Management. This acquisition increased assets entrusted to LGT to over
$80 billion.
We are confident about the partnership's success because both firms share a
commitment to providing investors around the world with solutions to their
investment needs through combined, top--notch expertise. Individual investors
will now have access to the same high--quality management services enjoyed by
over 320 institutional investors, including some of the country's largest
organizations.
Chancellor's strengths--disciplined U.S. equity and fixed income processes
and professionals, coupled with proven fundamental and quantitative
investment capabilities--represent an ideal complement to LGT's advantages as
an experienced global investment manager with an extensive global
infrastructure. Chancellor LGT Asset Management's global investment team
includes 12 economists, 98 portfolio managers, 72 analysts and 19 traders
located in nine regional offices.
Warren Shaw, LGT's new Chief Investment Officer, has been the principal
architect of Chancellor's investment policies, with excellent results. The
disciplined, repeatable process he created leverages the effectiveness of a
strong investment team approach.
As always, we appreciate your continued confidence. Should you and your
adviser have any questions regarding GT Global Funds, please call us at
800-824-1580. One of our registered representatives will be happy to assist
you.
Sincerely,
David A. Minella
CHAIRMAN
GT GLOBAL MUTUAL FUNDS
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
Performance Summary
INVESTMENT OBJECTIVE
Seeks capital appreciation by investing primarily in securities of a broad
range of Latin American issuers.
GT Global Latin America Growth Fund
MSCI Emerging Latin America Index
8/13/1991 9525 10000
9952 11079
10085 10995
10965 11789
10771 11110
11421 12582
12892 14614
13658 15986
13665 17163
13893 17149
14014 17417
11864 14150
11891 14403
11025 13266
10131 12858
10474 13849
10648 13888
11156 14724
11200 14416
11164 14302
11810 15350
11628 14620
11773 14845
12100 15814
12499 16273
13494 17674
13668 17902
14357 18553
4/30/1994 15047 19840
17063 22423
18958 25938
18730 25087
17454 23303
15588 21544
15972 22771
15131 21242
16326 23090
19076 26834
19828 27916
19253 26543
19150 25793
15930 21597
13279 19130
11784 16244
10997 15695
12484 18027
12547 18378
12862 18684
13373 19340
13554 19578
13176 19389
12099 17785
12052 18101
12531 18674
13672 20606
12990 19420
13347 19674
10/31/1996 13862 20753
The chart above shows the performance of the GT Global Latin America Growth
Fund, Class A shares, since the Fund's inception, versus the MSCI Emerging
Latin America Index. This represents a cumulative return of 42.18% and an
average annual total return of 6.98% 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 April 1, 1993 would
have been valued at $11,560 on October 31,1996. This figure reflects all Fund
expenses and the maximum applicable contingent deferred sales charge (5% in
the first year, decreasing to 0% after six years) assuming complete
redemption at the end of the period. A $10,000 investment in Advisor Class
shares at inception on June 1,1995, would have been worth $11,408 on
October 31,1996.
AVERAGE ANNUAL TOTAL RETURNS%(1)
October 31, 1996
<TABLE>
<CAPTION>
Without Sales Charge(2) With Sales Charge
Share Class 1-Year 5-Year Life of Fund 1-Year 5-Year Life of Fund
<S> <C> <C> <C> <C> <C> <C>
Class A(3) 17.52 5.33 7.98 11.94 4.31 6.98
Class B(3) 17.02 N/A 4.87 12.02 N/A 4.13
Advisor Class(4) 18.16 N/A 9.73 N/A N/A N/A
</TABLE>
HISTORICAL PERFORMANCE%(2)
Annual Returns (per calendar year)
1991 1992 1993 1994 1995
Class A 19.91(3) -2.32 52.94 -6.64 -21.34
Class B N/A N/A 44.28(3) -7.12 -21.70
(1)Figures assume reinvestment of all dividends and capital gain distributions
at net asset value.
(2)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.
(3)The Fund began operations on August 13, 1991; Class B shares commenced on
April 1, 1993.
(4)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.
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.
2
<PAGE>
INTERVIEW WITH PORTFOLIO MANAGER SORAYA BETTERTON
Q HOW HAS THE FUND PERFORMED?
A The Fund has performed in line with its index this year. For the 12 months
ended October 31, 1996, the Fund's total return was 17.52% for Class A shares
(11.94% including the maximum 4.75% sales charge) and 17.02% for Class B
shares (12.02% including the maximum 5% contingent deferred sales charge).
Total return over the same investment period for the Morgan Stanley Capital
International (MSCI) Emerging Latin America Index(5) was 17.45%. While the Fund
was buoyed by overall strength throughout the region, relative to the index,
the Fund also benefited from its overweighted position in Venezuela, the best
performing market of the year.
Q ARE YOU CONCERNED OVER THE RECENT DROP IN THE VALUE OF THE MEXICAN PESO?
A On a purchasing power parity basis, the peso should end the year at roughly
8 against the dollar. So while October's 7% fall puts it roughly where it should
be, people became nervous over the speed at which the peso fell. We see the
current situation as being vastly different from the conditions that caused the
devaluation at the end of 1994. The peso is floating and the central bank is not
interfering in the markets to keep it artificially high, which would run down
its foreign exchange reserves in the process. Moreover, today Mexico runs a
trade surplus of approximately $500m per month instead of a trade deficit of 8%
of GDP.
Q WHAT IS YOUR OUTLOOK FOR THE COMING YEAR?
IS THE MEXICAN PESO CRISIS FAR BEHIND US?
A The Mexican peso crisis has by now become a dim memory, and life is
starting to return to normal throughout Latin America. Hopefully, lessons
have been learned and similar mistakes can be avoided in the future. Private
sector capital flows have resumed, with a number of prospectuses for new
equity issues having come across Latin American portfolio managers' desks of
late. Even Mexico, vilified and ignored for much of 1995, has come back into
favor with foreign investors. We believe the prospects for moderate,
sustainable growth across the region are probably better than at any time in
the past five years and, therefore, we currently expect that the Fund will
maintain a substantial weighting in Mexican equities.
Q WHERE ARE YOUR EXPECTATIONS SOMEWHAT LESS POSITIVE?
A Despite Brazil's substantial progress in reducing inflation, we think there
is a great risk that given its current mix of fiscal, monetary and exchange
rate policies, it will be unable to meet both domestic and foreign
expectations for economic growth over the medium term. With little prospect
for substantive reform of the country's onerous budget deficits this year,
and resulting continued high interest rates, it is difficult to see what will
drive growth in Brazil in the absence of continued massive inflows of foreign
capital. We remain unconvinced that Brazil will be able to overcome its
current difficulties. Authorities there may be sooner or later forced to
choose between Argentine-style austerity, and all of its political
consequences, or traditional Latin American growth, accompanied by budget
deficits and rising inflation. While the outlook for GDP growth is so
uncertain, the Fund is likely to maintain most of its investments in
state-owned companies whose fortunes are more dependent on the privatization
program than on the strength of economic growth. Given the strong rise in
telephones at the beginning of the year, these investments are being
concentrated in electricals and others.
Q WHAT ARE YOUR FEELINGS ABOUT SOME OF THE SMALLER MARKETS?
A We think Chile is approaching the trough in its business cycle, driven by
falling terms of trade and rising interest rates. In the face of falling
inflation, authorities are likely to find room to begin easing monetary
policy by some time early next year.
Economic growth in Peru remains a captive of a high trade deficit. A return
to the strong growth of 1993-95 awaits a resumption of strong capital inflow
or a boost to exports resulting from recent investments in the mining sector.
Colombia appears to have resigned itself to living in a political crisis
until President Samper's term expires in 1998. An end to the crisis could
lead to falling interest rates, increased growth prospects and a bull market
for Colombian stocks. A continuation will eventually lead to devaluation,
higher inflation and lower growth. For the time being, the relative
illiquidity of the market, the lack of transparency at the corporate level
and the small weighting of the country in the index lead us to avoid
investments in Colombia.
Venezuela is finally trying to get its act together, though it's still too
early to know if it's for real this time. If the government is serious about
improving its management of the economy, room remains for a further rerating
of the stock market. On balance, we feel it is worthwhile to keep our
overweighted position in the country.
(5)The MSCI Emerging Latin America Index is an arithmetic average, weighted by
market value, of companies listed in Argentina, Brazil, Chile, Colombia,
Mexico, Peru and Venezuela. The index, measured in U.S. dollars, has an
aggregate market capitalization of $258 billion and includes the effect of
reinvested dividends.
The index is unmanaged, not available for direct investment and does not
incur sales charges and professional management fees.
3
<PAGE>
KEY MARKETS
BRAZIL
Relative to the index, the Fund is slightly underweighted in Brazil,
where we expect continued high interest rates, weaker than consensus growth
over the medium term and deteriorating profit margins. The government's
decision to deemphasize legislative efforts to change the constitution and
balance the budget has succeeded in focusing attention on the investment
potential of privatization candidates. Nevertheless, little progress has been
made on the underlying cause of Brazil's historically high rates of
inflation--the budget deficit.
The consolidated public sector borrowing requirement is still around 6% of
GDP, which seems to be financeable over the short term without resorting to
inflation. Still, lack of progress on restraining spending and disappointment
in the event of an unsuccessful bid by Cardoso to be able to run for
reelection in 1998 could cause a spike in interest rates that would force the
government to choose between continued low inflation or renewed economic
growth.
ARGENTINA
The Fund is underweighted in Argentina, where the Convertibility Law requires
that growth must depend on net capital inflow, which we don't see returning
to the country any time in the near future. The lack of an enthusiastic
spokesperson for convertibility, fiscal austerity and continued deflation,
with no clear competitive advantage in the world, will continue to weigh on
foreign investment. We believe the stabilization/privatization/recovery story
is largely over, and now low inflation and low growth are all we have to look
forward to.
MEXICO
The Fund holds roughly the same allocation in Mexico as the index. The tide
has turned, and it appears to us that investor consensus has definitively
come around to our view that there is nothing fundamentally wrong with
Mexico. Although the banking system is still a concern, a variety of
government programs have staved off its collapse and will, in fact, enable it
to provide credit again one of these days. We await evidence of a recovery in
domestic demand, and have substantially reduced exposure to the export
sector, in anticipation of further real appreciation of the peso and falling
commodity prices.
VENEZUELA
Relative to the index, we continue to overweight Venezuela, where our views
have so far been largely vindicated. Following over two years of
macroeconomic mismanagement, which has brought recession, rising inflation
and capital flight, recent events suggest that President Caldera now realizes
his political future requires him to implement more sensible economic
policies. The lifting of foreign exchange controls, liberalization of
domestic interest rates, raising of gasoline prices and an agreement in
principle with the IMF to slash the budget deficit all suggest the Venezuelan
economy is on the verge of a turnaround.
Although the stock market has already reacted strongly to the change in
direction of economic policy, we believe further good news is possible if the
government sticks to its convictions. After all, there has not even been a
recovery in the domestic economy yet, and capacity utilization remains low.
We believe GDP growth could prove surprisingly strong next year, as long as
confidence remains high.
ABOUT THE PORTFOLIO MANAGER
SORAYA M. BETTERTON -- Portfolio Manager for Chancellor LGT Asset Management
since 1986; Investment Analyst since 1984. Prior to working for Chancellor
LGT Asset Management, Ms. Betterton received her B.A. from Oxford University.
4
<PAGE>
THE GROWTH OF LATIN AMERICAN STOCK MARKETS
MARKET CAPITALIZATION (US$ BILLION)
1990 1995 % +/-
------ ------- --------
BRAZIL $16.3 $147.6 +805%
MEXICO 32.7 90.7 +177
CHILE 13.6 73.8 +442
ARGENTINA 3.3 37.9 +1,045
COLOMBIA 1.4 17.9 +1,178
PERU 0.8 11.7 +1,362
VENEZUELA 8.3 3.6 -571
TOTAL $76.4 $383.1 +401%
Avg. Increase
Source: International Finance Corporation, FactBook 1996.
While many emerging markets may demonstrate significant short-term
volatilities as well as increased political and economic risks relative to
developed markets, we believe the case for investing in emerging markets
remains compelling over the longer term. Despite last year's weakness, over
the past five years Latin American equity markets have produced returns in
many cases considerably better than developed economies.
GEOGRAPHIC ALLOCATION OF NET ASSETS%
1996 1995
October 31 October 31
Argentina 6.9 3.6
Bolivia 3.0 2.3
Brazil 36.2 32.0
Chile 7.4 16.7
Colombia 0.3 1.9
Ecuador -- 1.1
Mexico 26.2 29.7
Panama 1.5 --
Peru 3.3 4.2
United States & Other 6.8 6.2
Venezuela 8.4 2.3
Allocations may change as market conditions change.
5
<PAGE>
ALLOCATION OF NET ASSETS
Short-Term & Other 1.3%
Multi-Industry/Misc. 4.9%
Consumer Non-Durables 14.4%
Materials/Basic Industry 17.0%
Energy 17.9%
Services 21.5%
Finance 23.0%
Allocations may change as market conditions change.
<TABLE>
<CAPTION>
GT GLOBAL LATIN AMERICA GROWTH FUND
% of
KEY PORTFOLIO HOLDINGS(6) Country Net Assets
<S> <C> <C>
ELETROBRAS Brazil's state-controlled holding company, Eletrobras is Brazil 5.4
responsible for the planning, coordination and financing of the country's
electric utility sector. Its assets are primarily hydroelectric electricity
generation plants that collectively represent 47% of the country's
generating capacity.
TELEBRAS Operator of Brazil's local and long-distance services. Brazil 4.4
KIMBERLY-CLARK DE MEXICO The largest manufacturer of diapers, tissue paper, Mexico 3.6
notebooks and paper in Mexico. The company's management is conservative and
has concentrated on lowering costs every year to retain its competitive
position in the marketplace.
COMPANHIA ENERGETICA DE MINAS GERAIS (CEMIG) Provides electrical utility Brazil 3.6
services for industrial, residential and rural customers.
COMPANHIA CERVEJARIA BRAHMA The largest brewery in Brazil. The company also Brazil 3.4
produces and distributes soft drinks.
UNIAO BANCOS BRASILEIRAS A major Brazilian bank whose services include asset Brazil 3.3
management and foreign exchange services. The bank also acts as lead manager
for initial and secondary offerings.
BANCO BRADESCO S.A. The largest bank in Brazil, Banco Bradesco has about 10% of Brazil 3.3
the market.
DISCO S.A. Owner and operator of supermarkets throughout Argentina. Argentina 3.3
CIA DE MINAS BUENAVENTURA A mining company originally focused on production of Peru 3.3
silver. The company today has a significant shareholding in the Yanacocha gold
mine, production from which is growing very rapidly.
</TABLE>
(6)There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
6
<PAGE>
GT GLOBAL
LATIN AMERICA
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
ANNUAL REPORT
To the Shareholders of GT Global Latin America Growth Fund and Board of
Directors of G.T. Investment Funds, Inc.:
We have audited the accompanying statement of assets and liabilities of GT
Global Latin America Growth Fund, one of the funds organized as a series of G.T.
Investment Funds, Inc., including the portfolio of investments, as of October
31, 1996, the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of GT
Global Latin America Growth Fund as of October 31, 1996, the results of
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
DECEMBER 13, 1996
F1
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS
October 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (23.0%)
Uniao Bancos Brasileiras "A" Preferred-/- ............... BRZL 378,050,000 $ 10,488,100 3.3
BANKS-MONEY CENTER
Banco Bradesco S.A. Preferred ........................... BRZL 1,227,498,430 10,467,134 3.3
BANKS-MONEY CENTER
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ... MEX 4,727,000 10,019,825 3.2
BANKS-MONEY CENTER
Inversiones y Representaciones S.A. (IRSA): ............. ARG -- -- 2.9
REAL ESTATE
Common-/- ............................................. -- 2,378,500 7,279,666 --
GDR-/- {\/} ........................................... -- 58,300 1,778,150 --
Banco Provincial S.A. ................................... VENZ 3,183,913 6,421,963 2.0
OTHER FINANCIAL
Banco BHIF - ADR-/- {\/} ................................ CHLE 344,500 6,201,000 2.0
BANKS-REGIONAL
Banco LatinoAmericano de Exportaciones S.A. (Bladex)
"E"{\/} ................................................ PAN 91,700 4,791,325 1.5
OTHER FINANCIAL
Grupo Financiero Banorte "B"-/- ......................... MEX 4,439,000 4,427,930 1.4
BANKS-REGIONAL
Administradora de Fondos de Pensiones Provida S.A. -
ADR{\/} ................................................ CHLE 170,800 3,971,100 1.3
OTHER FINANCIAL
Grupo Financiero Bancomer, S.A. de C.V.: ................ MEX -- -- 1.1
BANKS-MONEY CENTER
"B"-/- ................................................ -- 7,167,000 3,047,315 --
"L"-/- ................................................ -- 817,296 280,245 --
Seguros Comercial America S.A. "B"-/- ................... MEX 6,965,000 2,084,289 0.7
INSURANCE - MULTI-LINE
Banco de Galicia y Buenos Aires S.A. de C.V. -
ADR{\/} ................................................ ARG 40,500 734,063 0.2
BANKS-MONEY CENTER
Grupo Financiero Probusa S.A. de C.V. "B"-/- ............ MEX 7,621,563 465,657 0.1
OTHER FINANCIAL
------------
72,457,762
------------
Services (21.5%)
Telecomunicacoes Brasileiras S.A. (Telebras) -
ADR{\/} ................................................ BRZL 185,000 13,782,498 4.4
TELEPHONE NETWORKS
Disco S.A. - ADR-/- {\/} ................................ ARG 464,350 10,447,875 3.3
RETAILERS-FOOD
Univision Communications, Inc.-/- ....................... US 274,400 9,261,000 2.9
BROADCASTING & PUBLISHING
Cifra S.A. de C.V.: ..................................... MEX -- -- 2.8
RETAILERS-OTHER
"B" - ADR-/- {\/} ..................................... -- 3,125,000 3,781,250 --
"C"-/- ................................................ -- 2,878,000 3,696,185 --
"B" ................................................... -- 1,100,000 1,409,975 --
Lojas Americanas S.A. Preferred-/- ...................... BRZL 467,535,469 7,350,042 2.3
RETAILERS-OTHER
Santa Isabel S.A. - ADR{\/} ............................. CHLE 254,800 7,166,250 2.3
RETAILERS-FOOD
TV Filme, Inc.-/- {\/} .................................. BRZL 428,200 6,423,000 2.0
CABLE TELEVISION
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Telecomunicacoes do Rio de Janeiro S.A. (Telerj)
Preferred-/- ........................................... BRZL 47,791,322 $ 4,605,608 1.5
TELEPHONE NETWORKS
------------
67,923,683
------------
Energy (17.9%)
Centrais Eletricas Brasileiras S.A. (Eletrobras): ....... BRZL -- -- 5.4
ELECTRICAL & GAS UTILITIES
"B" Preferred{z} ...................................... -- 36,600,000 11,863,915 --
Common-/- ............................................. -- 16,500,000 5,123,625 --
Companhia Energetica de Minas Gerais (CEMIG): ........... BRZL -- -- 3.6
ELECTRICAL & GAS UTILITIES
ADR-/- {\/} ........................................... -- 208,600 6,518,750 --
Preferred-/- {z} ...................................... -- 146,792,050 4,672,540 --
Compania Boliviana de Energia Electrica{::} {\/} ........ BOL 224,800 9,497,800 3.0
ELECTRICAL & GAS UTILITIES
C.A. La Electricidad de Caracas-/- ...................... VENZ 8,070,933 8,860,015 2.8
ELECTRICAL & GAS UTILITIES
Enron Global Power & Pipelines L.L.C. ................... US 296,250 8,332,031 2.6
ENERGY SOURCES
Electricidad de Argentina S.A.(.) -/- {\/} .............. ARG 110,857 1,507,655 0.5
ELECTRICAL & GAS UTILITIES
------------
56,376,331
------------
Materials/Basic Industry (17.0%)
Kimberly-Clark de Mexico, S.A. de C.V. "A" .............. MEX 581,700 11,242,332 3.6
PAPER/PACKAGING
Companhia Vale do Rio Doce Preferred{z} ................. BRZL 509,400 10,561,881 3.3
METALS - NON-FERROUS
Cia de Minas Buenaventura: .............................. PERU -- -- 3.3
METALS - NON-FERROUS
"C" ................................................... -- 1,268,276 9,846,344 --
"B"-/- ................................................ -- 61,942 525,787 --
Venezolana de Cementos, S.A.C.A. "A" .................... VENZ 2,476,397 6,784,433 2.2
CEMENT
Sociedad Quimica y Minera de Chile S.A. - ADR{\/} ....... CHLE 98,200 5,646,500 1.8
CHEMICALS
Cemex, S.A. de C.V. "B" ................................. MEX 1,202,000 4,323,903 1.4
CEMENT
Companhia Siderurgica Nacional S.A. ..................... BRZL 117,700,000 2,921,591 0.9
METALS - STEEL
Apasco S.A. ............................................. MEX 261,000 1,594,638 0.5
CEMENT
------------
53,447,409
------------
Consumer Non-Durables (14.4%)
Companhia Cervejaria Brahma Preferred{z} ................ BRZL 17,520,000 10,829,553 3.4
BEVERAGES - ALCOHOLIC
Grupo Industrial Maseca, S.A. de C.V. "B" ............... MEX 7,852,000 9,575,132 3.0
FOOD
Grupo Modelo S.A. "C" ................................... MEX 1,805,000 9,373,847 3.0
BEVERAGES - ALCOHOLIC
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% OF NET
EQUITY INVESTMENTS COUNTRY SHARES VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (Continued)
Grupo Industrial Bimbo, S.A. de C.V. "A" ................ MEX 1,523,000 $ 7,558,030 2.4
FOOD
Mavesa S.A. - ADR{\/} ................................... VENZ 715,000 4,468,750 1.4
FOOD
Multicanal Participacoes S.A. - ADR-/- {\/} ............. BRZL 149,500 2,093,000 0.7
OTHER CONSUMER GOODS
Compania Nacional de Chocolates S.A. .................... COL 130,800 1,098,720 0.3
FOOD
Companhia Tecidos Norte de Mina Preferred ............... BRZL 1,311,300 440,376 0.1
TEXTILES & APPAREL
Jugos Del Valle S.A. "B"-/- ............................. MEX 227,000 312,479 0.1
BEVERAGES - NON-ALCOHOLIC
------------
45,749,887
------------
Multi-Industry/Miscellaneous (4.9%)
San Luis "CPO"{::} ...................................... MEX 1,710,000 8,592,643 2.7
CONGLOMERATE
Brazil Realty S.A. -144A ADR{.} -/- {\/} ................ BRZL 312,000 6,357,000 2.0
MISCELLANEOUS
Grupo Sidek, S.A. de C.V. - ADR-/- {\/} ................. MEX 608,800 608,800 0.2
CONGLOMERATE
------------
15,558,443
------------ -----
TOTAL EQUITY INVESTMENTS (cost $272,965,225) .............. 311,513,515 98.7
------------ -----
<CAPTION>
NO. OF % OF NET
RIGHTS COUNTRY RIGHTS VALUE ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Banco de Galicia y Buenos Aires S.A. de C.V. ADR Rights,
expire 11/1/96{\/} ..................................... ARG 12,385 -- --
------------ -----
BANKS-REGIONAL (Cost $0)
TOTAL INVESTMENTS (cost $272,965,225) * .................. 311,513,515 98.7
Other Assets and Liabilities .............................. 4,078,457 1.3
------------ -----
NET ASSETS ................................................ $315,591,972 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{z} All or part of the Fund's holdings in this security is segregated
as collateral for written futures. See Note 1 of Notes to Financial
Statements.
-/- Non-income producing security.
{\/} U.S. currency denominated.
(.) Restricted securities: At October 31, 1996, the Fund owned the
following restricted security constituting 0.5% 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:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION MARKET VALUE
DESCRIPTION DATE SHARES COST PER SHARE
- ------------------------------ ----------- ------- ----------- ------------
<S> <C> <C> <C> <C>
Electricidad de Argentina
S.A.......................... 12/23/93 110,857 $ 1,939,998 $13.60
</TABLE>
{::} See Note 5 of Notes to Financial Statements.
+/+ Issued with detachable warrants or value recovery rights. The
current market value of each warrant or right is zero.
{.} 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.
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<C> <S>
* For Federal income tax purposes, cost is $273,597,742 and
appreciation (depreciation) is as follows:
</TABLE>
<TABLE>
<S> <C>
Unrealized appreciation: $ 53,931,731
Unrealized depreciation: (16,015,958)
-------------
Net unrealized appreciation: $ 37,915,773
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at October 31, 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) .................. 6.9 6.9
Bolivia (BOL/BOL) .................... 3.0 3.0
Brazil (BRZL/BRL) .................... 36.2 36.2
Chile (CHLE/CLP) ..................... 7.4 7.4
Colombia (COL/COP) ................... 0.3 0.3
Mexico (MEX/MXN) ..................... 26.2 26.2
Panama (PAN/PND) ..................... 1.5 1.5
Peru (PERU/PES) ...................... 3.3 3.3
United States & Other (US/USD) ....... 5.5 1.3 6.8
Venezuela (VENZ/VEB) ................. 8.4 8.4
------ --- -----
Total ............................... 98.7 1.3 100.0
------ --- -----
------ --- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $315,591,972.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WRITTEN FUTURES CONTRACTS OUTSTANDING
OCTOBER 31, 1996
<TABLE>
<CAPTION>
EXPIRATION NO. OF
DESCRIPTION DATE CONTRACTS CURRENCY MARKET VALUE
- ---------------------------------------- ------------ ------------ ----------- ---------------
<S> <C> <C> <C> <C>
Brazilian Real Futures (face
$28,818,000)........................... 12/31/96 300 USD $ 28,818,000
</TABLE>
- --------------
See Note 1 to the Financial Statements.
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
October 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $272,965,225) (Note 1)........................... $311,513,515
Receivable for Fund shares sold............................................................ 12,300,099
Receivable for securities sold............................................................. 9,449,458
Dividends receivable....................................................................... 806,579
Receivable for initial & variation margin (Note 1)......................................... 311,370
Miscellaneous receivable................................................................... 2,623
Cash held as collateral for securities loaned (Note 1)..................................... 17,198,999
------------
Total assets............................................................................. 351,582,643
------------
Liabilities:
Due to custodian........................................................................... 13,449,049
Payable for Fund shares repurchased........................................................ 2,400,422
Payable for securities purchased........................................................... 2,093,000
Payable for investment management and administration fees (Note 2)......................... 285,657
Payable for service and distribution expenses (Note 2)..................................... 207,738
Payable for transfer agent fees (Note 2)................................................... 142,254
Payable for printing and postage expenses.................................................. 105,957
Payable for professional fees.............................................................. 51,201
Payable for registration and filing fees................................................... 25,324
Payable for custodian fees (Note 1)........................................................ 11,871
Payable for fund accounting fees (Note 2).................................................. 6,971
Payable for Directors' fees and expenses (Note 2).......................................... 4,003
Other accrued expenses..................................................................... 8,225
Collateral for securities loaned (Note 1).................................................. 17,198,999
------------
Total liabilities........................................................................ 35,990,671
------------
Net assets................................................................................... $315,591,972
------------
------------
Class A:
Net asset value and redemption price per share ($177,373,411 DIVIDED BY 9,881,172 shares
outstanding)................................................................................ $ 17.95
------------
------------
Maximum offering price per share (100/95.25 of $17.95) *..................................... $ 18.85
------------
------------
Class B:+
Net asset value and offering price per share ($137,400,074 DIVIDED BY 7,725,949 shares
outstanding)................................................................................ $ 17.78
------------
------------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($818,487 DIVIDED
BY 45,630 shares outstanding)............................................................... $ 17.94
------------
------------
Net assets consist of:
Paid in capital (Note 4)................................................................... $377,749,062
Accumulated net realized loss on investments and foreign currency transactions............. (100,673,019)
Net unrealized depreciation on translation of assets and liabilities in foreign
currencies................................................................................ (32,361)
Net unrealized appreciation of investments................................................. 38,548,290
------------
Total -- representing net assets applicable to capital shares outstanding.................... $315,591,972
------------
------------
<FN>
- --------------
* On sales of $50,000 or more, the offering price is reduced.
+ Redemption price per share is equal to the net asset value per share less
any applicable contingent deferred sales charge.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
STATEMENT OF OPERATIONS
Year ended October 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $499,299)............................... $7,792,298
Interest income............................................................................ 813,731
----------
Total investment income.................................................................. 8,606,029
----------
Expenses:
Investment management and administration fees (Note 2)..................................... 3,365,375
Service and distribution expenses: (Note 2)
Class A...................................................................... $1,007,846
Class B...................................................................... 1,425,667 2,433,513
----------
Transfer agent fees (Note 2)............................................................... 1,446,362
Printing and postage expenses.............................................................. 202,870
Custodian fees (Note 1).................................................................... 200,934
Fund accounting fees (Note 2).............................................................. 86,436
Audit fees................................................................................. 80,126
Registration and filing fees............................................................... 62,704
Legal fees................................................................................. 28,182
Amortization of organization costs (Note 1)................................................ 16,576
Directors' fees and expenses (Note 2)...................................................... 13,712
Other expenses............................................................................. 13,870
----------
Total expenses before reductions......................................................... 7,950,660
----------
Expense reductions (Notes 1 & 6)....................................................... (223,037)
----------
Total net expenses....................................................................... 7,727,623
----------
Net investment income........................................................................ 878,406
----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized loss on investments............................................... (1,655,860)
Net realized loss on foreign currency transactions............................. (3,308,864)
----------
Net realized loss during the year........................................................ (4,964,724)
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies......................................................... 608,089
Net change in unrealized appreciation of investments........................... 63,484,288
----------
Net unrealized appreciation during the year.............................................. 64,092,377
----------
Net realized and unrealized gain on investments and foreign currencies....................... 59,127,653
----------
Net increase in net assets resulting from operations......................................... $60,006,059
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1996 1995
------------- -------------
Decrease in net assets
Operations:
Net investment income.................................................... $ 878,406 $ 2,650,890
Net realized loss on investments and foreign currency transactions....... (4,964,724) (98,872,602)
Net change in unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................ 608,089 (795,171)
Net change in unrealized appreciation (depreciation) of investments...... 63,484,288 (97,151,861)
------------- -------------
Net increase (decrease) in net assets resulting from operations........ 60,006,059 (194,168,744)
------------- -------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income............................................... (842,524) --
From net realized gain on investments.................................... -- (19,567,238)
In excess of net investment income....................................... (381,092) --
Class B:
Distributions to shareholders: (Note 1)
From net investment income............................................... (93,201) --
From net realized gain on investments.................................... -- (14,468,347)
In excess of net investment income....................................... (42,157) --
Advisor Class:
Distributions to shareholders:
From net investment income............................................... (4,285) --
In excess of net investment income....................................... (1,938) --
------------- -------------
Total distributions.................................................... (1,365,197) (34,035,585)
------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested......................... 1,551,794,195 1,098,477,187
Decrease from capital shares repurchased................................. (1,612,200,649) (1,101,548,404)
------------- -------------
Net decrease from capital share transactions........................... (60,406,454) (3,071,217)
------------- -------------
Total decrease in net assets............................................... (1,765,592) (231,275,546)
Net assets:
Beginning of year........................................................ 317,357,564 548,633,110
------------- -------------
End of year.............................................................. $ 315,591,972* $ 317,357,564**
------------- -------------
------------- -------------
<FN>
- --------------
* Includes undistributed net investment income of $0.
** Includes undistributed net investment income of $1,356,776.
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
----------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------
1996 (A) 1995 (A) 1994 (A) 1993 (A) 1992
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 15.38 $ 26.11 $ 19.78 $ 15.59 $ 16.45
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss).......... 0.09 0.15 (0.08) 0.18 0.25*
Net realized and unrealized gain
(loss) on investments................ 2.59 (9.28) 6.75 5.21 (0.98)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) from
investment operations.............. 2.68 (9.13) 6.67 5.39 (0.73)
---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income............ (0.08) -- (0.19) (0.12) (0.13)
From net realized gain on
investments.......................... -- (1.60) (0.15) (1.08) --
In excess of net investment income.... (0.03) -- -- -- --
---------- ---------- ---------- ---------- ----------
Total distributions................. (0.11) (1.60) (0.34) (1.20) (0.13)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period.......... $ 17.95 $ 15.38 $ 26.11 $ 19.78 $ 15.59
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total investment return (d)............. 17.52% (37.16)% 34.10% 37.1% (4.5)%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 177,373 $ 182,462 $ 336,960 $ 129,280 $ 94,085
Ratio of net investment income (loss) to
average net assets..................... 0.46% 0.86% (0.29)% 1.3%* 1.3%*
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
6)................................... 2.03% 2.11% 2.04% 2.4%* 2.4%*
Without expense reductions............ 2.10% 2.12% --%** --%** --%**
Portfolio turnover rate++++............. 101% 125% 155% 112% 159%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0005 N/A N/A N/A N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
* Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.02 and $0.04 for the years ended October
31, 1993 and 1992, respectively. Without such reimbursements, the
expense ratios would have been 2.49% and 2.62% and the ratios of net
investment income to average net assets would have been 1.25% and
1.07% for the years ended October 31, 1993 and 1992, respectively.
** Calculation of "Ratio of expenses to net assets" was made without
considering the effect of expense reductions, if any.
(a) These selected per share data were calculated based upon average
shares outstanding during the period.
(b) Not annualized.
(c) Annualized.
(d) Total investment return does not include sales charges.
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++ ADVISOR CLASS+++
---------------------------------------------- ----------------------
APRIL 1, JUNE 1,
1993 1995
TO YEAR ENDED TO
YEAR ENDED OCTOBER 31, OCTOBER OCTOBER OCTOBER
---------------------------------- 31, 31, 31,
1996 (A) 1995 (A) 1994 (A) 1993 (A) 1996 (A) 1995
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating
Performance:
Net asset value, beginning of
period....................... $ 15.21 $ 25.94 $ 19.75 $ 16.26 $ 15.40 $ 15.95
---------- ---------- ---------- ---------- ---------- ----------
Income from investment
operations:
Net investment income
(loss)..................... (0.00) 0.06 (0.22) (0.07) 0.17 0.09
Net realized and unrealized
gain (loss) on
investments................ 2.59 (9.19) 6.74 3.56 2.58 (0.64)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease)
from investment
operations............... 2.59 (9.13) 6.52 3.49 2.75 (0.55)
---------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment
income..................... (0.01) -- (0.18) -- (0.14) --
From net realized gain on
investments................ -- (1.60) (0.15) -- -- --
In excess of net investment
income..................... (0.01) -- -- -- (0.07) --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions....... (0.02) (1.60) (0.33) -- (0.21) --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of
period....................... $ 17.78 $ 15.21 $ 25.94 $ 19.75 $ 17.94 $ 15.40
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
Total investment return (d)... 17.02% (37.42)% 33.33% 21.5%(b) 18.16% (3.45)%(b)
Ratios and supplemental data:
Net assets, end of period (in
000's)....................... $ 137,400 $ 134,527 $ 211,673 $ 13,576 $ 818 $ 369
Ratio of net investment income
(loss) to average net
assets....................... (0.04)% 0.36% (0.79)% (0.7)%(c) 0.96% 1.36%(c)
Ratio of expenses to average
net assets:
With expense reductions
(Notes 1 & 6).............. 2.53% 2.61% 2.54% 2.9%(c) 1.53% 1.61%(c)
Without expense
reductions................. 2.60% 2.62% --%** --%** 1.60% 1.62%(c)
Portfolio turnover rate++++... 101% 125% 155% 112% 101% 125%
Average commission rate per
share paid on portfolio
transactions++++............. $ 0.0005 N/A N/A N/A $ 0.0005 N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
* Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.02 and $0.04 for the years ended October
31, 1993 and 1992, respectively. Without such reimbursements, the
expense ratios would have been 2.49% and 2.62% and the ratios of net
investment income to average net assets would have been 1.25% and
1.07% for the years ended October 31, 1993 and 1992, respectively.
** Calculation of "Ratio of expenses to net assets" was made without
considering the effect of expense reductions, if any.
(a) These selected per share data were calculated based upon average
shares outstanding during the period.
(b) Not annualized.
(c) Annualized.
(d) Total investment return does not include sales charges.
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
October 31, 1996
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Latin America Growth Fund ("Fund") is a separate series of GT
Investment Funds, Inc. ("Company"). The Company is organized as a Maryland
corporation and is registered under the Investment Company Act of 1940, as
amended ("1940 Act"), as a non-diversified, open-end management investment
company. The Company has twelve series of shares in operation, each series
corresponding to a distinct portfolio of investments.
The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges. Class A and Class B each has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the Fund are allocated on a pro rata basis to each class based on
the relative net assets of each class to the total net assets of the Fund. Each
class of shares differs in its respective service and distribution expenses, and
may differ in its transfer agent, registration, and certain other class-specific
fees and expenses.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles, and
the financial statements may include certain estimates made by management.
(A) PORTFOLIO VALUATION
The Fund calculates the net asset value of and completes orders to purchase,
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded, or on the principal over-the-counter market on which
such securities are traded, as of the close of business on the day the
securities are being valued, or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by Chancellor LGT Asset
Management, Inc. (the "Manager") 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 the
Manager deems it appropriate, prices obtained for the day of valuation from a
bond pricing service will be used. Short-term investments with maturity of 60
days or less are valued at amortized cost adjusted for foreign exchange
translation and market fluctuation, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Company's Board of Directors.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Directors.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. The market values of
foreign securities, currency holdings, and other assets and liabilities are
recorded in the books and records of the Fund after translation to U.S. dollars
based on the exchange rates on that day. The cost of each security is determined
using historical exchange rates. Income and withholding taxes are translated at
prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, United States government securities or
other high quality debt securities of which the value, including accrued
interest, is at least equal to the amount to be repaid to the Fund under each
agreement at its maturity.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
Forward Contract is closed, the Fund records a realized gain or loss
F11
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
equal to the difference between the value at the time it was opened and the
value at the time it was closed. Forward Contracts involve market risk in excess
of the amount shown in the Fund's "Statement of Assets and Liabilities." The
Fund could be exposed to risk if a counterparty is unable to meet the terms of
the contract or if the value of the currency changes unfavorably. The Fund may
enter into Forward Contracts in connection with planned purchases or sales of
securities, or to hedge against adverse fluctuations in exchange rates between
currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When the Fund writes a call or put option, an amount equal to the premium
received is included in the Fund's "Statement of Assets and Liabilities" as an
asset and an equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers. If an option expires on its
stipulated expiration date or if the Fund enters into a closing purchase
transaction, a gain or loss is realized without regard to any unrealized gain or
loss on the underlying security, and the liability related to such option is
extinguished. If a written call option is exercised, a gain or loss is realized
from the sale of the underlying security and the proceeds of the sale are
increased by the premium originally received. If a written put option is
exercised, the cost of the underlying security purchased would be decreased by
the premium originally received. The Fund can write options only on a covered
basis, which, for a call, requires that the fund hold the underlying securities
and, for a put, requires the Fund to maintain in a segregated account cash, U.S.
government securities, or other liquid, high-grade debt securities in an amount
not less than the exercise price or otherwise provide adequate cover at all
times while the put option is outstanding. The Fund may use options to manage
its exposure to the stock or bond market and to fluctuations in currency values
or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock or bond
market and to fluctuations in currency values or interest rates. At October 31,
1996, the fund had segregated securities valued at $34,032,814 and cash of
$311,370 to cover margin requirements on open futures contracts.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Interest income is recorded on the
accrual basis. Where a high level of uncertainty exists as to its collection,
income is recorded net of all withholding tax with any rebate recorded when
received. The Fund may trade securities on other than normal settlement terms.
This may increase the risk if the other party to the transaction fails to
deliver and causes the Fund to subsequently invest at less advantageous prices.
(H) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, and excise tax on income
and capital gains. The Fund currently has a capital loss carry forward of
$100,040,502, of which $93,313,175 expires in 2003 and $6,727,327 expires in
2004.
(I) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ
F12
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
from generally accepted accounting principles. These differences are primarily
due to differing treatments of income and gains on various investment securities
held by the Fund and timing differences.
(J) DEFERRED ORGANIZATIONAL EXPENSES
Expenses incurred by the Fund in connection with its organization, its initial
registration with the Securities and Exchange Commission and with various states
and the initial public offering of its shares aggregated $177,793. These
expenses have been amortized on a straight line basis over a five-year period.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments in emerging market
countries may involve greater risks than investments in more developed markets
and the prices of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(L) INDEXED SECURITIES
The Fund may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.
(M) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed restricted securities. These
securities may be resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.
(N) PORTFOLIO SECURITIES LOANED
At October 31, 1996, stocks with an aggregate value of approximately $15,138,626
were on loan to brokers. The loans were secured by cash collateral of
$17,198,999. For international securities, cash collateral is received by the
Fund against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For domestic securities, cash
collateral is received by the Fund against loaned securities in an amount at
least equal to 102% of the market value of the loaned securities at the
inception of each loan. This collateral must be maintained at not less than 100%
of the market value of the loaned securities during the period of the loan. For
the year ended October 31, 1996, the Fund received $48,028 of income from
securities lending which was used to offset the Fund's custody expenses.
2. RELATED PARTIES
Chancellor LGT Asset Management, Inc. is the Fund's investment manager and
administrator. On October 31, 1996, Chancellor Capital Management Inc. merged
with LGT Asset Management, Inc., and the surviving entity was renamed Chancellor
LGT Asset Management, Inc. The Fund pays investment management and
administration fees to the Manager at the annualized rate of 0.975% of the first
$500 million of average daily net assets of the Fund; 0.95% of the next $500
million; 0.925% of the next $500 million and 0.90% on amounts thereafter. These
fees are computed daily and paid monthly, and are subject to reduction in any
year to the extent that the Fund's expenses (exclusive of brokerage commissions,
taxes, interest, distribution-related expenses and extraordinary expenses)
exceed the most stringent limits prescribed by the laws or regulations of any
state in which the Fund's shares are offered for sale, based on the average
total net asset value of the Fund.
GT Global, Inc. ("GT Global"), an affiliate of the Manager, is the Fund's
distributor. The Fund offers Class A, Class B and Advisor Class shares for
purchase.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. GT Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the year ended October 31, 1996, GT Global retained $98,352
of such sales charges. Purchases of Class A shares exceeding $500,000 may be
subject to a contingent deferred sales charge ("CDSC") upon redemption, in
accordance with the Fund's current prospectus. GT Global collected CDSCs in the
amount of $18,250 for the year ended October 31, 1996. GT Global also makes
ongoing shareholder servicing and trail commission payments to dealers whose
clients hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, GT Global from its own resources pays commissions to dealers through which
the sales are made. Certain redemptions of Class B shares made within six years
of purchase are subject to CDSCs, in accordance with the Fund's current
prospectus. For the year ended October 31, 1996, GT Global collected CDSCs in
the amount of $824,774. In addition, GT Global makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class B
shares.
Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Directors has
adopted separate distribution plans with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.50% of the average daily net assets of the Fund's
Class A shares, less any amounts paid by the Fund as the aforementioned service
fee, for GT Global's expenditures incurred in providing services as distributor.
All expenses for which GT Global is reimbursed under the Class A Plan will have
been incurred within one year of such reimbursement.
F13
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.75% of the average daily net assets of the Fund's
Class B Shares for GT Global's expenditures incurred in providing services as
distributor. Expenses incurred under the Class B Plan in excess of 1.00%
annually may be carried forward for reimbursement in subsequent years as long as
that Plan continues in effect.
The Manager and GT Global voluntarily have undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest, and extraordinary
expenses) to the maximum annual rate of 2.40%, 2.90%, and 1.90% of the average
net assets of the Fund's Class A, Class B and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by the
Manager 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
the Manager or GT Global of portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and GT Global, is the transfer agent of the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT Services receives
an annual maintenance fee of $17.50 per account, a new account fee of $4.00 per
account, a per transaction fee of $1.75 for all transactions other than
exchanges and a per exchange fee of $2.25. GT Services also is reimbursed by the
Fund for its out-of-pocket expenses for such items as postage, forms, telephone
charges, stationery and office supplies.
The Manager is the pricing and accounting agent for the Fund. The monthly fee
for these services to the manager 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 the Manager and 0.02% to the assets in excess of $5 billion and
allocating the results according to the Funds average daily net assets.
The Company pays each of its Directors who is not an employee, officer or
director of the Manager, GT Global or GT Services $5,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Director.
3. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 1996, purchases and sales of investment
securities by the Fund, other than short-term investments, aggregated
$323,525,648 and $362,046,941. There were no purchases or sales of U.S.
government obligations for the year ended October 31, 1996.
4. CAPITAL SHARES
At October 31, 1996, there were 6,000,000,000 shares of the Company's common
stock authorized, at $0.0001 par value. Of this amount, 200,000,000 were
classified as shares of the Fund; 400,000,000 were classified as shares of GT
Global Government Income Fund; 200,000,000 were classified as shares of GT
Global Health Care Fund; 200,000,000 were classified as shares of GT Global
Strategic Income Fund; 200,000,000 were classified as shares of GT Global
Currency Fund (inactive); 200,000,000 were classified as shares of GT Global
Growth & Income Fund; 200,000,000 were classified as shares of GT Global Small
Companies Fund (inactive); 200,000,000 were classified as shares of GT Global
Natural Resources Fund; 200,000,000 were classified as shares of GT Global
Infrastructure Fund; 400,000,000 were classified as shares of GT Global
Telecommunications Fund; 200,000,000 were classified as shares of GT Global
Emerging Markets Fund; and 200,000,000 were classified as shares of GT Global
Financial Services Fund; 200,000,000 were classified as shares of GT Global High
Income Fund; and 200,000,000 were classified as shares of GT Global Consumer
Products and Services Fund. The shares of each of the foregoing series of the
Company were divided equally into two classes, designated Class A and Class B
common stock. With respect to the issuance of Advisor Class shares, 100,000,000
shares were classified as shares of each of the fourteen series of the Company
and designated as Advisor Class common stock. 1,400,000,000 shares remain
unclassified. Transactions in capital shares of the Fund were as follows:
F14
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GT GLOBAL LATIN AMERICA GROWTH FUND
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995
-------------------------- --------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 76,364,877 $1,304,172,875 52,467,821 $ 904,752,193
Shares issued in connection with
reinvestment of distributions......... 66,851 1,023,814 673,780 16,139,240
----------- ------------- ----------- -------------
76,431,728 1,305,196,689 53,141,601 920,891,433
Shares repurchased...................... (78,414,835) (1,346,357,898) (54,183,599) (943,221,637)
----------- ------------- ----------- -------------
Net decrease............................ (1,983,107) $ (41,161,209) (1,041,998) $ (22,330,204)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1996 OCTOBER 31, 1995
-------------------------- --------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 13,503,991 $ 230,324,732 9,341,199 $ 166,467,703
Shares issued in connection with
reinvestment of distributions......... 6,914 105,073 439,250 10,440,947
----------- ------------- ----------- -------------
13,510,905 230,429,805 9,780,449 176,908,650
Shares repurchased...................... (14,627,921) (250,064,111) (9,097,593) (158,042,884)
----------- ------------- ----------- -------------
Net increase (decrease)................. (1,117,016) $ (19,634,306) 682,856 $ 18,865,766
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
<CAPTION>
JUNE 1, 1995
(COMMENCEMENT OF SALE OF
YEAR ENDED SHARES) TO OCTOBER 31,
OCTOBER 31, 1996 1995
-------------------------- --------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 932,074 $ 16,161,478 41,561 $ 677,104
Shares issued in connection with
reinvestment of distributions......... 408 6,223 -- --
----------- ------------- ----------- -------------
932,482 16,167,701 41,561 677,104
Shares repurchased...................... (910,792) (15,778,640) (17,621) (283,883)
----------- ------------- ----------- -------------
Net increase............................ 21,690 $ 389,061 23,940 $ 393,221
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
5. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES
Investments of 5% or more of an issuer's outstanding voting securities by the
Fund are defined in the Investment Company Act of 1940 as an affiliated company.
Investments in affiliated companies at October 31, 1996, amounted to
$18,090,443, at value.
Transactions with affiliated companies are as follows:
<TABLE>
<CAPTION>
PURCHASES NET REALIZED DIVIDEND
AFFILIATES COST SALES COST GAIN INCOME
- ---------------------------------------- ---------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Compania Boliviana de Energia
Electrica.............................. $ -- $ 671,076 $ 264,155 $190,749
Dixie Toga S.A. Preferred............... 729,186 5,847,339 1,577,576 39,312
San Luis "CPO".......................... 5,394,408 3,680,995 2,247,803 242,517
</TABLE>
6. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of the Fund's expenses. For the year ended October 31, 1996, the Fund's expenses
were reduced by $175,009 under these arrangements.
F15
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
GT GLOBAL MUTUAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF MUTUAL FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
MUTUAL FUNDS, PLEASE CONTACT YOUR INVESTMENT COUNSELOR OR CALL GT GLOBAL
DIRECTLY AT 1-800-824-1580. THE PROSPECTUS CONTAINS MORE COMPLETE
INFORMATION, INCLUDING CHARGES, EXPENSES AND RISKS. INVESTORS SHOULD READ
THE PROSPECTUS CAREFULLY BEFORE INVESTING.
GROWTH FUNDS
/ / GLOBALLY DIVERSIFIED FUNDS
GT GLOBAL WORLDWIDE GROWTH FUND
Invests around the world, including the U.S.
GT GLOBAL INTERNATIONAL GROWTH FUND
Provides portfolio diversity by investing outside the U.S.
GT GLOBAL EMERGING MARKETS FUND
Gives access to the growth potential of developing economies
/ / GLOBAL THEME FUNDS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Invests in companies that manufacture, market, retail, or distribute consumer
products or services
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain a country's infrastructure
GT GLOBAL NATURAL RESOURCES FUND
Concentrates on companies that own, explore or develop natural resources
GT GLOBAL TELECOMMUNICATIONS FUND
Invests in companies worldwide that develop, manufacture or sell
telecommunications services or equipment
/ / REGIONALLY DIVERSIFIED FUNDS
GT GLOBAL NEW PACIFIC GROWTH FUND
Offers access to the emerging and established markets of the Pacific Rim,
excluding Japan
GT GLOBAL EUROPE GROWTH FUND
Focuses on investment opportunities in the new, unified Europe
GT GLOBAL LATIN AMERICA GROWTH FUND
Invests in the emerging markets of Latin America
/ / SINGLE COUNTRY FUNDS
GT GLOBAL AMERICA SMALL CAP GROWTH FUND
Invests in equity securities of small U.S. companies
GT GLOBAL AMERICA GROWTH FUND
Concentrates on small and medium-sized companies in the U.S.
GT GLOBAL AMERICA VALUE FUND
Concentrates on equity securities of large cap U.S. companies believed to be
undervalued
GT GLOBAL JAPAN GROWTH FUND
Provides U.S. investors with direct access to the Japanese market
GROWTH AND INCOME FUND
GT GLOBAL GROWTH & INCOME FUND
Invests in blue-chip stocks and government bonds from around the world
INCOME FUNDS
GT GLOBAL GOVERNMENT INCOME FUND
Earns monthly income from global government securities
GT GLOBAL STRATEGIC INCOME FUND
Allocates its assets among debt securities from the U.S., developed foreign
countries and emerging markets
GT GLOBAL HIGH INCOME FUND
Invests in debt securities in emerging markets
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
[LOGO]
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
GT GLOBAL LATIN AMERICA GROWTH FUND
LATAR612063M.584
