<PAGE>
GT GLOBAL INCOME FUNDS: ADVISOR CLASS
SUPPLEMENT TO PROSPECTUS DATED MARCH 1, 1997
SUPPLANTING SUPPLEMENT DATED APRIL 28, 1997
- --------------------------------------------------------------------------------
THE FOLLOWING SUPPLEMENTS THE DISCUSSION UNDER "HOW TO INVEST -- PURCHASING
CLASS B SHARES" WITH RESPECT TO EACH FUND:
Class B shares of a Fund may not be purchased for a Savings Incentive Match Plan
for Employees of Small Employers Individual Retirement Accounts ("SIMPLE IRAs")
for which a designated financial institution was selected by the employer on
Form 5305-SIMPLE. Class B shares of a Fund may still be purchased for SIMPLE
IRAs using Form 5304-SIMPLE. In addition, Class A shares of a Fund may still be
purchased for all SIMPLE IRAs.
THE FOLLOWING REVISES AND SUPERSEDES, AS APPLICABLE, THE DISCUSSION UNDER
"MANAGEMENT" WITH RESPECT TO GT GLOBAL GOVERNMENT INCOME FUND ("GLOBAL
GOVERNMENT INCOME FUND"), GT GLOBAL STRATEGIC INCOME FUND ("STRATEGIC INCOME
FUND") AND GLOBAL HIGH INCOME PORTFOLIO ("HIGH INCOME PORTFOLIO"):
Michael Mabbutt has been named a Portfolio Manager for Global Government Income
Fund, Strategic Income Fund and High Income Portfolio. Mr. Mabbutt joined
Chancellor LGT Asset Management, Inc. (the "Manager") and LGT Asset Management
PLC (London), an affiliate of the Manager, in December 1996. He was appointed
Head of Global Emerging Market Debt for the Manager in April 1997. Prior to
joining the Manager, he was a Senior Portfolio Manager for global fixed income
at Baring Asset Management in London from 1992 to 1996. At Baring Asset
Management, he was responsible for developing the emerging market debt process
as head of the five member Emerging Market Fixed Income Strategy Group.
Cheng-Hock Lau has been named the other Portfolio Manager for High Income
Portfolio. Mr. Lau has been Chief Investment Officer for Developed Market Debt
for the Manager since November 1996, and was a Senior Portfolio Manager for
global/international fixed income for the Manager from July 1995 to November
1996. Mr. Lau was a Senior Vice President and Senior Portfolio Manager for
Fiduciary Trust Company International from 1993 to 1995, and Vice President at
Bankers Trust Company from 1991 to 1993. Mr. Lau remains the other Portfolio
Manager for Global Government Income Fund and Strategic Income Fund.
On October 31, 1996, Chancellor Capital Management, Inc. ("Chancellor Capital")
merged with LGT Asset Management, Inc., and the resulting entity was renamed
Chancellor LGT Asset Management, Inc. Prior to October 31, 1996, Mr. Lau was an
employee only of Chancellor Capital.
THE FOLLOWING SUPPLEMENTS THE DISCLOSURE UNDER "INVESTMENT OBJECTIVE AND
POLICIES" WITH RESPECT TO GLOBAL GOVERNMENT INCOME FUND AND STRATEGIC INCOME
FUND:
U.S. government securities in which the Global Government Income Fund and the
Strategic Income Fund may invest include mortgage-backed securities issued by
agencies or instrumentalities of the U.S. government. The Funds may also
purchase privately issued mortgage-backed and asset-backed securities.
Mortgage-backed securities represent direct or indirect interests in pools of
underlying mortgage loans that are secured by real property. Investors typically
receive payments out of the interest and principal on the underlying mortgages.
Asset-backed securities are similar to mortgage-backed securities, except that
the underlying assets are other financial assets or financial receivables, such
as motor vehicle installment sales contracts, home equity loans, leases of
various types of real and personal property and receivables from credit cards.
Any privately issued mortgage-backed and asset-backed securities purchased by
Global Government Income Fund will be subject to the limitation of that Fund
which allows no more than 35% of its assets to be invested in securities of
non-governmental issuers. With respect to the Global Government Income Fund, it
will only purchase such securities if rated in the highest rating category by
Standard & Poor's Ratings Group or Moody's Investors Service, Inc., or if not
rated, determined to be of comparable quality by the Manager.
[LOGO]
INCSX705002M
<PAGE>
THE FOLLOWING SUPPLEMENTS THE DISCLOSURE UNDER "RISK FACTORS" WITH RESPECT TO
GLOBAL GOVERNMENT INCOME FUND AND THE STRATEGIC INCOME FUND:
RISKS OF MORTGAGE-BACKED AND ASSET-BACKED SECURITIES. The yield characteristics
of mortgage-backed and asset-backed securities differ from those of traditional
bonds. Among the major differences are that interest and principal payments are
made more frequently (usually monthly) and that principal may be prepaid at any
time because the underlying mortgage loans or other assets generally may be
prepaid at any time. Generally, prepayments on fixed-rate mortgage loans will
increase during a period of falling interest rates and decrease during a period
of rising interest rates. Mortgage-backed and asset-backed securities may also
decrease in value as a result of increasing market interest rates and, because
of prepayments, may benefit less than other bonds from declining interest rates.
Reinvestments of prepayments may occur at lower interest rates than the original
investment, thus adversely affecting the yield of the Global Government Income
Fund or the Strategic Income Fund. Actual prepayment experience may cause the
yield of a mortgage-backed security to differ from what was assumed when the
Fund purchased the security. The market for privately issued mortgage-backed and
asset-backed securities is smaller and less liquid than the market for U.S.
government mortgage-backed securities.
May 1, 1997